Monday, 11 February 2008

Malaysia's IJM Plantations to go big in Indonesia

The Jakarta Post
February 11, 2008

Malaysia's IJM Plantations to go big in Indonesia

PETALING JAYA, Malaysia (The Star/ANN): Plantation firm IJM Plantations Bhd (IJMP) has transformed into one of the fastest growing oil palm plantation companies in Malaysia with strategic oil palm-related investments in Indonesia and India, The Star reported Monday.

Within a short span of two years, the group doubled its plantation hectarage to about 60,000 hectares and will be on the lookout for suitable land bank for oil palm cultivation, particularly in Indonesia.

IJMP is also embarking on the oil palm upstream and downstream operations with the Godrej Group in India.

Managing director and chief executive officer Velayuthan Tan said that IJMP's immediate focus would be to develop its newly acquired 30,000 ha of land in East Kalimantan with high-yield oil palm trees.

While the group is busy scouting for more land in the vicinity, he said: "We plan to invest about RM600 million within the next five years to develop the existing areas (in Indonesia) inclusive of processing facilities."

Between November 2006 and June 2007, IJMP acquired three companies in East Kalimantan with a combined area of 32,634 ha.

Tan said: "The acquisition of these companies is part of our long-term strategy to expand the operations in Indonesia.

"The identified sites are strategically located and fit the group's plan of enhancing its existing infrastructure in Sabah."

Currently, of IJMP's total land bank, about 27,000 ha are planted.

Tan said the group's investment in Indonesia was significant as "it represents our move to continue maintaining fresh fruit bunches (FFB) production growth in IJMP through the doubling of hectarage in Indonesia." (****) -->