PT Palma Serasih Tbk | APEA - Regional Edition - Asia Pacific Enterprise Awards

PT Palma Serasih Tbk



PT Palma Serasih Tbk

Agriculture Industry

Company Introduction

PT Palma Serasih Tbk was officially founded in 2008 and listed on the Indonesian Stock Exchange (IDX) in 2019. Since 2008, Palma Serasih Group has continuously expanded its palm oil plantation and processing through greenfield development. Located in the prime tropical growing conditions of East Kalimantan, Indonesia, PSG is a rapidly growing CPO producer that is committed to sustainable operational and management practices.

Evolving towards a more integrated business, PSG completed construction of its first palm oil mill in 2014 with Fresh Fruit Bunch (FFB) processing capacity of 60 tons per hour to produce Crude Palm Oil (CPO) and Palm Kernels (PK). In 2019 PSG started to construct its second palm oil mill with FFB processing capacity of 90 ton per hour.

PSG’s vision is to be the best, most effective, efficient and integrated palm oil company and their mission is to build an integrated palm oil industry (upstream and downstream chains) in an effective, efficient and environmentally friendly manner through careful research and development while creating a professional and productive work environment. To build relationships towards an independent and progressive local community and society while also producing the best quality CPO and its derivatives and to maintain harmony and synergy between the Company, employees, the community and the environment. The Company’s values are Integrity, Professionalism, Sustainability and the Glory of God.

Corporate Culture

PSG is committed to implementing Good Corporate Governance principles together with the Board of Commissioners, Board of Directors and all PSG Employees. PSG also strives to continuously improve transparency, accountability, responsibility, independency and fairness in all aspects of operational business activities.

Company Activities
PSG is committed to implementing social responsibility that emphasises on social and environmental aspects. PSG is aware of the importance of preserving the rainforest and educating local communities on environmental conservation. A Large Conservation area is set aside by PSG of around 80 Ha for the rehabilitation of orangutans carried out by non-profit organisation Yayasan Borneo Orangutan Survival (BOSF). PSG also works with local government, local cultural institutions, The Nature Conservancy (TNC) and environmental institution to support the preservation of highbiodiversity wilderness forest area in East Kalimantan.

PSG has helped hundreds of local smallholder farmers to prosper through the PSG Plasma-Nucleus program. PSG also aims to improve the standard of life and stimulate the economy of local villages by creating job opportunities and empowerment.

As a reflection of its commitment to the local community, PSG currently operates educational facilities under the management of the Group and supports the establishment and operational of local schools, as well as the constructions of public facilities and infrastructures. At the health clinics, PSG trained medical staffs engage in health education, preventive efforts, and curative measures in coordination with Government health clinics “Puskesmas” to promote healthy living.

Becoming the best, most effective, efficient and an integrated palm oil company.

Achievements and Impact

Latest Growth of the Company
Palma Serasih Group currently manages ±35,000 hectares of palm oil plantations (nucleus and plasma) and a palm oil mill with a capacity of 60 ton per hour in East Kalimantan. With a relatively young age, the Group Fresh Fruit Bunch (FFB) production has been steadily increasing over the years. In 2019 alone, the Group produced ±310,000 ton FFB, which number was increased by ± 21% from the previous year. In line with the increase in the FFB production, the Group’s CPO production has also increased from ±89,000 ton in 2018 to ±97,000 ton in 2019, or ±9% increase.

Despite unfavorable conditions for palm oil business in 2019, PSG managed to record net sales of Rp 728.6 billion in 2019, increased by 5.6% from 2018 and became a public listed Company in November 2019. Consistent operational practices had made major contribution to steady growth in production, which in turn supported its financial performance, including EBITDA growth of 15.5% in 2019 in comparison to the year 2018.

Company Strategy
Aiming to achieve its vision and missions, Palma Serasih Group commits to consistently implement the following strategies, plantation planted area development and expansion, palm oil production capacity expansion, best operational practices through intensification, mechanisation, and automation, continuous improvement in productivity and control through technology and policy-procedure reviews, successful smallholder plasma programs and intensive CSR programs.

Future Direction

Progressing towards an integrated palm oil company, Palma Serasih Group is striving to develop its planted area, especially through green-field development on its existing land bank, with the aim to achieve sustainable size for expansion into palm oil downstream business. The Group is also concurrently focusing to improve its logistic access and infrastructure to support its operation.

As a labor intensive business, the Group acknowledges the need to nurture its people to secure sustainable growth, and continuously promote innovations and adapt technology advances into business operation, in order to achieve high level efficiency and adjust into new working preferences of the young generation.

The Group also believes that its strong engagement in social and environmental CSR programs, such as smallholder plasma program, environmental conservation program and social CSR program, have created mutual long term benefits for the Group and the community.