Ministry to Gather State Plantation Firms Under New Holding Company

Kamis, 26 Januari 2012 | 08:22

The government plans to set up a holding company by the end of this month that will help it streamline the operations of state plantation companies.Fourteen state plantation firms and a commodity trading company with assets of Rp 44 trillion ($4.9 billion) will be under the holding company, Megananda Daryono, a deputy to State Enterprises Minister Dahlan Iskan, said on Tuesday.

He said the ministry expected the holding company to start operating by Feb. 1 at the latest.

The holding company will synchronize the business of 14 Perkebunan Nusantara state plantation companies (PTPNs) and state industrial conglomerate Rajawali Nusantara Indonesia (RNI).

The PTPNs are involved in various plantation sectors, including rubber, crude palm oil and tea, while RNI has a diversified business in industrial agriculture, pharmaceutical products and commodity trading. RNI owns 10 sugar factories in Java as well as CPO and tea plantations.

On Jan. 11, Dahlan said the government was still weighing which of two PTPNs — PTPN III or PTPN IV — would be integrated into the holding company.

Dahlan said the government was processing a draft regulation on the matter, which needed to be endorsed by the finance minister and the law and human rights minister.

It would then be passed to the president for his signature and immediate implementation.

Investor Daily

By Agustiyanti