State Minister of State-Owned Enterprises Dahlan Iskan said on Wednesday that the government’s plan to set up a holding company for the country’s 14 state-owned plantations is expected to be completed in March.
The ministry has appointed state-owned plantation firm PTPN III to oversee 14 state-owned plantations and one state-owned trading firm.
The holding company would have a combined assets of about Rp 50 trillion, and more than 1 million ha of land bank, which will become one of the world’s largest comparable to Malaysia’s Sime Darby and Singapore-listed Wilmar International. Combined revenue of the holding company is about Rp 45 trillion, but net profit is only around Rp 3.5 trillion.
PTPN III was selected to become the parent firm because of its solid performance, Dahlan said. The setting up of the holding company is expected to be able to help revitalize poor-performing state-owned plantation companies. (rei)