Corporate Profile
Listed on the Singapore Exchange on 25 July 2008, Kencana Agri Limited (“Kencana” or “the Group”) is a plantation company engaged mainly in the cultivation of oil palms; processing of Fresh Fruit Bunches (“FFB”) into Crude Palm Oil (“CPO”), Crude Palm Kernel Oil (“CPKO”) and Palm Kernel Cake (“PKC”); refining of CPO and provision of bulking, port and logistics services.
Kencana’s oil palm plantations are located mainly in Sumatra, Kalimantan and Sulawesi regions of Indonesia. Since its inception in 1996, the Group’s planted area has grown to about 67,927 ha in 2015 including plasma. The Group currently has five palm oil mills with total processing capacity of 275 tonnes per hour and two kernel crushing plants with capacity of 435 tonnes per day.
Kencana’s oil palm plantations are located mainly in Sumatra, Kalimantan and Sulawesi regions of Indonesia. Since its inception in 1996, the Group’s planted area has grown to about 67,927 ha in 2015 including plasma. The Group currently has five palm oil mills with total processing capacity of 275 tonnes per hour and two kernel crushing plants with capacity of 435 tonnes per day.
Corporate Profile
The Group currently has a relatively young palm profile with significant potential for production growth in the coming years as its palms continue to mature and reach peak production.
Of its current land-bank, only 35% is planted. The Group aims to continue to expand its planted area in a sustainable manner over the next few years to ensure steady FFB production growth.
To fully leverage and maximise the value chain of its plantation assets and logistics services, the Group together with Louis Dreyfus Company has built an integrated palm oil complex in Balikpapan - comprising a palm oil refinery, bulking terminal and a deep water port.
Of its current land-bank, only 35% is planted. The Group aims to continue to expand its planted area in a sustainable manner over the next few years to ensure steady FFB production growth.
To fully leverage and maximise the value chain of its plantation assets and logistics services, the Group together with Louis Dreyfus Company has built an integrated palm oil complex in Balikpapan - comprising a palm oil refinery, bulking terminal and a deep water port.
Corporate Profile
Kencana is committed to growing its plantation business in a sustainable - ecologically and socially acceptable manner. It has adopted environmentally friendly practices in its plantation development such as zero-burning and zerowaste management and is a member of the Roundtable on Sustainable Palm Oil (“RSPO”) through its subsidiary PT Sawindo Kencana.
It also sells “green” electricity to the state-owned electricity company PT Perusahaan Listrik Negara (“PLN”) from its renewable biomass power plants in Bangka and Belitung islands.
It also sells “green” electricity to the state-owned electricity company PT Perusahaan Listrik Negara (“PLN”) from its renewable biomass power plants in Bangka and Belitung islands.
Corporate Profile
Kencana is also committed to working with and improving the social and economic welfare of the local communities through its plasma and corporate social responsibility programmes
Vision and Mission
Our Vision
To be a leading sustainable palm oil producer and supplier of choice for both local and global markets.
Our Mission
To expand our plantation business through sustainable and environmentally-friendly best-in-class management practices whilst reinforcing our responsibility as a good corporate citizen.
To be a leading sustainable palm oil producer and supplier of choice for both local and global markets.
Our Mission
To expand our plantation business through sustainable and environmentally-friendly best-in-class management practices whilst reinforcing our responsibility as a good corporate citizen.
Milestones
2012 - 2015
- Completed construction of fifth palm oil mill in East Kalimantan; commenced operations in October 2015
- New planted area (including plasma) of approximately 13,060 ha from FY2012 to FY2015
- Commenced joint venture operations for bio-energy (JV with Enco) in FY2014
- Refinery commenced operations in FY2013Commenced construction of the Group’s first palm oil refinery in Balikpapan (JV with Louis Dreyfus Company)
- Acquired 23,000 ha of landbank in Sulawesi regionAcquired 2 additional vessels to support logistics operations
Milestones
2009 - 2011
- Commenced joint venture port operations in East Kalimantan with Louis Dreyfus Commodities, lifting total port and bulking capacity to 66,000 MT
- Built fourth palm oil mill in East Kalimantan; commenced operations in March 2012
- Started phase 3 of palm oil cultivation in Sulawesi, after the first two phases in Sumatra and Kalimantan
- Raised S$52.5 million when the Wilmar Group became a 20% strategic shareholder in Kencana Agri in 2010
- Signed an Emission Reductions Purchase Agreement ("ERPA") with the Danish Ministry of Climate and Energy to sell Certified Emission Reduction ("CER") credits from our biomass power plant at Bangka Island in 2010
- Acquired 80,000 hectares of land in Sulawesi, Indonesia in 2009
- Entered into a joint venture with Louis Dreyfus Group to build and operate a deep water port in Balikpapan in 2009
Milestones
2008
- Listed on the Main Board of the Singapore Exchange in July 2008
Milestones
2004 - 2007
- Signed a contract to supply green electricity from our biomass power plant at Bangka Island to the state owned electricity firm, PT Perusahaan Listrik Negara ("PLN") in 2007
- Received a "Good" and a "Very Good" classification award from the local governor for our subsidiaries PT. Sawindo Kencana ("SWK") and PT. Alamraya Kencana Mas ("AKM") respectively in 2006
- Acquired 46,000 hectares of land in East Kalimantan in 2005Built our first biomass power plant on Bangka Island in 2005
- Built and operated our first oil barge in 2004Carried out approximately 4,513 hectares of new planting in 2006
- Acquired 12,000 hectares of land in East Kalimantan in 2004
Milestones
1995 - 2003
- Started CPO and CPKO storage operations at our bulking terminal in Belinyu in 2002
- Began CPKO production at our first kernel crushing plant on Bangka Island with a capacity of 100 MT/day in 2002
- Began CPO production at our palm oil mill at Bangka Island with a capacity of 30 MT/hour in 2001
- Commenced planting oil palms in South Kalimantan in 1998
- Acquired 15,000 hectares of land in South Kalimantan in 1997
- Began planting oil palms in Sumatra in 1996
- Began operations by acquiring 9,000 hectares of land on Bangka Island in 1995
Integrated Value Chain
Kencana's integrated value chain comprises plantations, palm oil mills, kernel crushing plants, bulking facilities and logistics services, as well as a renewable biomass power plant to support and complement our plantation operations.
Oil Palm Plantations
With a total land bank of 188,784 hectares and total planted area of 43,340 hectares (including Plasma plantations) as at 30 September 2010, our Group has a significant cultivatable land bank with considerable planting potential. Our oil palm plantations are strategically located in the Sumatera, Kalimantan and Sulawesi regions of Indonesia where the climate is well-suited for oil palm plantation. All our current plantations were successfully cultivated from greenfield land.As at 30 September 2010, our total planted area is 43,340 hectares (including Plasma), of which approximately 60% are mature and approximately 40% are immature. As these young oil palms mature, our FFB harvests will increase, thereby improving the utlisation rates of our palm oil mills and lowering our productions costs. The average CPO extraction rates, along with our profitability, will also improve.