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Future Strategy and plans |
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Domestic
consumption of crude palm oil will continue to grow, triggered by the
population growth and improved economic climate. Domestic traditional
markets for crude palm oil will also be growing in relations to the
hike in the demand of non-traditional market such as down-stream
chemical producers, processed food producers and bio-diesel producers.
Indonesia’s demand for crude palm oil and palm kernel is supported by
optimisms that the international price of crude palm oil will follow
the 2007 trend, which was elevated by a hike in the world’s demand for
crude palm oil and other vegetables oil, which among other is used as
biofuel.
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These
factors have driven the Company to move forward to the future with huge
opportunity to benefit from the profile of palm plantation which
support production fresh fruit bunches for years ahead. The Company
intends to develop its operation by expanding the area for palm
plantation and processing capability through the following strategies: |
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Expansion of palm plantation area and significant increase in its planted area by acquiring more land bank |
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Improvement
of crude palm oil processing capacity, to be undertaken by gradually
establishing more processing plants at the plantation where production
is near its peak |
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Development
of infrastructure and logistic facilities, repair and provision of more
roads, introduction of building facility by constructing port at Musi
River Bank, construction of storage facilities. |
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Improvement
of profit margin by running more efficient operation to be undertaken
by means of implementation of industrial best practices, production
cost cut, use of new innovation an increase of own plantation
production proportion. |
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