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INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2014
The Plantation Division
manages and cultivates
IndoAgri’s estates and
derives its income mostly
from the sale of CPO, PK
and related products.
PLANTATION REVIEW
PALM & RUBBER
The Division’s oil palm estates in South
Sumatra and Kalimantan achieved
6,350 hectares of nucleus new
plantings in 2014 as compared with
9,791 hectares in 2013.
Mature estates covered 185,181
hectares, while immature estates,
that will boost CPO production and
volume growth when they become
productive within the next few years,
occupied 60,874 hectares or 25% of
total planted palm area. The average
age of the oil palms cultivated is 13
years. The Division’s 22 palm oil mills
across Sumatra and Kalimantan have a
combined FFB processing capacity of
5.7 million tonnes per annum.
The Division’s rubber estates are spread
across North and South Sumatra, East
Kalimantan and Sulawesi. As at end
2014, nucleus rubber estates occupied
21,697 hectares, of which 18% were
immature. The average age of our
rubber trees is 14.6 years. We also
operate four crumb rubber and three
sheet rubber processing facilities.
The Plantation Division has two advanced
research and development centres,
SumBio and PT SAIN, based in Bah
Lias, North Sumatra and Pekanbaru,
Riau respectively. Underpinned by their
sophisticated in
-
house seed breeding
programmes and cultivation techniques,
these centres produced a combined
output of 17.4 million premium seeds
in 2014.
2014 REVIEW
The global economic slowdown in major
markets such as China and Europe,
coupled with weak crude oil prices and
higher soybean supplies from the US
and South America, have put sustained
pressure on commodity prices. CPO
prices (CIF Rotterdam) ended the year at
US$679 per tonne, against an average
of US$816 per tonne in 2014. This
represented a 5% decline over 2013’s
average of US$857. However, domestic
CPO prices in Indonesian Rupiah
remained higher than the previous year
due to the weakening of the currency
against the US dollar.
