Palm oil
About

Our Business

Golden Agri-Resources’ (GAR) is focused on responsible palm oil production. In Indonesia, its primary activities include cultivating and harvesting of oil palm trees; processing of fresh fruit bunch (FFB) into crude palm oil (CPO) and palm kernel; refining CPO into value-added products such as cooking oil, margarine, shortening, biodiesel and oleo-chemicals; as well as merchandising palm products throughout the world. It also has operations in China and India including a deep-sea port, oilseeds crushing plant, production capabilities for refined edible oil products as well as other food products such as noodles.

Value Chain

Our integrated palm oil business activities start from oil palm seeds right to your local supermarket shelves.

Seedlings: Good quality seeds are crucial for the long-term productivity of our plantations. One of our subsidiaries, PT Dami Mas Sejahtera, produces high yielding seeds originating from Papua New Guinea to support our yield intensification plan. To sustain long-term growth, our biotechnology centre is also able to produce exceptionally high-yielding oil palm planting materials – Eka 1 and Eka 2 – developed through an advanced biotechnology programme.

Plantations: We cultivate oil palm plantations in Indonesia with a total area of approximately 500,500 hectares (including plasma) with an annual fresh fruit bunches (FFBs) yield of 20.5 tonnes per hectare in 2017. Our nucleus plantations comprise 80 percent of total hectarage.

Extraction: Our mills extract crude palm oil (CPO) and palm kernel from the fresh fruit bunches (FFBs) with a combined capacity of 13,266,500 tonnes per annum.

Refining: The crude palm oil (CPO) is processed in our own refineries in Indonesia which have a total capacity of 4,680,000 tonnes per annum producing generic refined products. We also operate refineries in other large consuming countries, i.e. China and India with annual capacity of 280,000 tonnes and 405,000 tonnes respectively.

Kernel Crushing: Our kernel crushing plants have a combined capacity of 1,755,000 tonnes per annum processing palm kernel to produce higher value palm kernel oil and palm kernel meal.

Marketing: As a ‘One Stop Supplier’, we distribute and market our products to both local and export markets. We produce two of Indonesia’s leading brands of cooking oil – Filma and Kunci Mas.

Leading edge proprietary IT systems: Our proprietary SAP system, which was 10 years in the making, harnesses technology that puts us at the forefront of precision agriculture. GAR is now fully equipped with a state-of-the-art system that serves as a one-stop multi-function monitoring and management control system for our entire plantation and downstream operations. With this system in place, our operations management has the latest information in hand.

In-house R&D facilities: Our SMART Research Institute (SMARTRI) based in Riau has a significant research and development programme. We have a full range of research in agronomic activities including fertiliser optimisation and soil viability. The institute collaborates with both national and international research houses and academic institutions including the renowned Centre de Cooperation Internationale en Recherche Agronomique pour le Developpement in France to diversify and innovate the palm oil products we produce.

GAR’s other business activities in China comprises of multiple functions that serve the different parts of our integrated business.

Deep sea port and storage facility: We have secured the last deep sea port site strategically located in Eastern China along with the storage facility. The port is equipped with high-speed Buhler mechanical and pneumatic bulk grain unloaders that can operate at design rates of 1,250 tonnes per hour.

Crushing: We own domestic crushing facility that allows us to import soybean and process it domestically. The crushing plant has a capacity of 1,002,000 tonnes per annum, producing soybean oil and soybean meal. The soybean oil is further processed in the refinery together with other edible oils, mainly palm oil.

Food: We operate a food business in China through Florentina International Holdings Limited (“FIH”), which manufactures and distributes a variety of economy and premium grade snack noodle and instant noodle products, and other snack products in the country. The food products are produced through six strategically located plants with a total annual capacity of approximately 4.3 billion packets of noodle. In addition to noodle products, FIH also produces and markets higher value snack products that include health and nutrition products.

Sales and distribution network: Most of our products are sold in China’s domestic market. We have set up sales representative and liaison offices and collaborate with leading distributors.