PalmCo, SupportingCo Creation Paves Way to Palm Business Biggest IPO

By Editorial Team 04/12/2023
CPO
Summary

The Indonesian government has officially consolidated 13 companies under PT Perkebunan Nusantara III (Persero) into two subholdings: PalmCo and SupportingCo. PalmCo was formed by merging PTPN V, VI, and XIII into PTPN IV as the surviving entity and a non-pure separation of PTPN III into PTPN IV. Meanwhile, SupportingCo was born from the merger of PTPN II, VII, VIII, IX, X, XI, XII, and XIV into PTPN I. The inauguration of PalmCo and SupportingCo took place on Dec 1.

Deputy Minister of State-Owned Enterprises (SOEs) Kartika Wirjoatmodjo stated that with this merger, PalmCo will become the world's largest palm oil company for its land area, exceeding 600,000 hectares by 2026. SupportingCo, on the other hand, will emerge as a leading plantation asset management company, encompassing asset utilization activities, asset divestiture, plantation crop management, and other business diversifications. "Certainly, following the signing, systems, human resources, operations, finance, and so forth will be integrated. The process is expected to be completed within six months," he said on Dec 3.

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