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 to about 67,927 ha in 2015 including plasma. The Group
currently has five palm oil mills with total processing capacity of 275 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 35% 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 Company has built
an integrated palm oil complex in Balikpapan - comprising a palm oil refinery,
bulking terminal and a deep water port.
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 zerowaste
management and is a member of the Roundtable on Sustainable Palm Oil
(“RSPO”) through its subsidiary PT Sawindo Kencana.
It also sells “green” electricity to the state-owned electricity company PT
Perusahaan Listrik Negara (“PLN”) from its renewable biomass power plants in
Bangka and Belitung islands.
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.