Listed on the Singapore Exchange on 25 July 2008, Kencana
Agri Limited ("Kencana" or "the Group") is a plantation company
engaged mainly in the cultivation of oil palms; processing of Fresh
Fruit Bunches ("FFB") into Crude Palm Oil ("CPO"), Crude Palm
Kernel Oil ("CPKO") and Palm Kernel Cake ("PKC"), refining of CPO
and provision of bulking, port and logistics services.
Kencana's oil palm plantations are located mainly in Sumatra,
Kalimantan and Sulawesi regions of Indonesia. Since its inception in
1996, the Group's planted area has grown rapidly to about 66,000
ha in 2013. The Group currently has four palm oil mills with total
processing capacity of 210 tonnes per hour and two kernel crushing
plants with capacity of 435 tonnes per day.
The Group currently has a relatively young palm profile with
significant potential for production growth in the coming years as its
palms continue to mature and reach peak production.
Of its current land-bank, only 34% is planted. The Group aims to
continue to expand its planted area in a sustainable manner over the
next few years to ensure steady FFB production growth.
To fully leverage and maximise the value chain of its plantation
assets and logistics services, the Group together with Louis Dreyfus
Commodities has built an integrated palm oil complex in Balikpapan
- comprising a palm oil refinery, bulking terminal and a deep sea
Kencana is committed to growing its plantation business
in a sustainable - ecologically and socially acceptable
manner. It has adopted environmentally friendly practices in
its plantation development such as zero-burning and zero-waste
management and is a member of the Roundtable
on Sustainable Palm Oil ("RSPO") through its subsidiary PT
It also sells "green" electricity to the state-owned electricity company
PT Perushaan Listrik Negara ("PLN") and has signed an Emissions
Reduction Purchase Agreement ("ERPA") with the Danish Ministry
of Climate and Energy to sell Certified Emission Reduction ("CER")
credits from its renewal biomass power plant in Bangka island.
Kencana is also committed to working with and improving the social
and economic welfare of the local communities through its plasma
and corporate social responsibility programmes.