Tentang Kami

Our Group has three palm oil mills and two kernel crushing plants. Our palm oil mills have a total production capacity of 165 MT/hour, and our kernel crushing plants have a combined production capacity of 435 MT/day.

Our main products are CPO and CPKO, which are derived from the fresh fruit bunches harvested from our plantations or purchased from third parties (including our plantations under the Plasma Programme). We produce CPO and CPKO at our palm oil mills and kernel crushing plants respectively. Palm kernel cake (“PKC”) is a by-product of the CPKO production process and may be sold to third parties or utilised as biomass.

We operate a bulking terminal in Belinyu, Bangka island comprising three storage tanks with a total capacity of 19,500 MT and we are able to utilise vessels at a nearby jetty to deliver our products. In addition, we own and operate three barges which we use primarily to transport our own products. Having our own bulking facilities and transportation barges enable us to exercise better control over our logistics management and to meet customers' delivery requirements at short notice. In May 2009, Kencana formed a joint venture with Louis Dreyfus Commodities to develop and operate a deep-water port (accessible to vessels up to 70,000 MT) and bulking terminal in Balikpapan, East Kalimantan to source and trade CPO and other products.

In line with our zero waste strategy, our Group embarked on a renewable energy project (renewable biomass power generation) using the waste from empty fruit bunches (“EFB”) and excess kernel shells to produce green electricity. Being the first commercialised renewable biomass project in Indonesia, this project also ties in with our corporate social responsibility programme to contribute to the local community.

Construction of our first renewable biomass project began on Bangka Island. This renewable biomass plant is adjacent to our palm oil mill and has a capacity of 6.0 MW. It is currently operating on a trial basis and supplying electricity to PLN following a one year renewable contract we entered into in May 2007. In addition to using our own EFB and palm kernel shells as biomass fuel, we also purchase from third parties if there is insufficient supply.Following the success of the Bangka project, the local authorities in Belitung island (which is next to Bangka island) together with PLN requested that our Group set up a similar project in Belitung island. The plant in Belitung has a capacity of 7.5 MW and was completed in 2009. We may add a second 7.5 MW power train to the plant should there be insufficient sources of biomass.

Significant Cultivatable Land Bank With New Planting Potential

• As at 30 September 2010, we have a total land bank of 188,784 ha with a planted area of 43,340 ha. This points to approximately 77.2% of land available for planting moving forward.
• We intend to increase our planted area by 8,000 ha - 10,000 ha before 2011 and further double the planted area within the next few years

As at the Latest Practicable Date, over 75% of our planted area is young and immature. As these oil palms mature further, fresh fruit bunch harvests will increase, thus reducing our reliance on third party suppliers, lowering our unit production cost and improving our average CPO extraction ratesAlong with such an increase in FFB harvest is a potential for strong double-digit production growth over the next five years

• We have an experienced and committed management team led by our Chairman and CEO, Mr Henry Maknawi
• Our management's track record is demonstrated by successful cultivation of all our current plantations from greenfield land

• Our plantation operations consist of palm oil mills, kernel crushing plants, logistics services and bulking facilities, as well as renewable power generation capabilities
• We entered into an agreement with the Indonesian Oil Palm Research Institute ("IOPRI") to develop oil palm seed breeding and seed processing facilities
• Having our own bulking facilities and barges enables us to exercise better control over our logistics management and to meet customers' delivery requirements at short notice
• Our complementary businesses, which include sales of carbon credits from the biomass power plant project, are able to generate additional revenue streams for the Group

• As a member of RSPO, our business operates in line with the world's highest standards for sustainable agriculture production
• Being RSPO certified, we are able to attract environmentally and socially responsible customers who are willing to pay a premium for responsibly produced products

Expand Our Oil Palm Plantation Business

• Focus on new plantings and expanding our current planted area
• Further increase our land bank
• Acquire high-yielding mature plantations

• Build a fourth palm oil mill to cater for the expected increase in our future sales volume
• Increase CPO oil extraction rates by utilising the latest proven technology
• Improve our transportation system and existing supporting infrastructure