Malaysian plantation form Kulim to expand land bank in Indonesia

News Desk

The Star

Publication Date : 25-06-2014

Kulim (M) Bhd says its re-entry into Indonesia last October is expected to expand its oil palm land-bank by some 40,000ha in central Kalimantan and also accelerate its new planting programme.

Kulim chairman Kamaruzzaman Abu Kassim said that the target planting for 2014 was 500ha. The first 500ha of land clearing for a new planting programme, along with the setting up of an 80ha oil palm nursery, will commence in the third quarter of this year.

Following that, the new planting programme will facilitate between 5,000 and 7,000ha per year.

The groups move to secure additional land-bank via its 74 per cent stake in PT Wisesa Inspirasi Nusantara is key to growth for its plantation segment, he said after Kulims AGM and EGM yesterday.

As we expand our oil palm land-bank, we remain resolutely focused on managing our cost of production to maximise margins and profitability, while at the same time abiding by the principles of sustainability, Kamaruzzaman said.

He explained that owing to limited land in Malaysia, Kulim needed to diversify its geographical presence into other locations. Currently, Papua New Guinea and the Solomon Islands remain the key driver for the group, contributing 90 per cent to revenue in 2013.

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Malaysian plantation form Kulim to expand land bank in Indonesia