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Release by PT SMART Tbk – Strengthening Downstream Business, SMART and Its Affiliated Companies Will Invest Rp 9 Trillion

Posted: Mar 30, 2011 2 minute read GAR

Jakarta, 30 March 2011PT SMART Tbk. conducts the grand opening of its palm-based refinery plant located in Marunda Center International Warehouse & Industrial Estate, Bekasi Regency. The grand opening will be inaugurated by the Minister of Economy Coordination, Hatta Rajasa, accompanied by the Minister of Industry, M.S, Hidayat, the Minister of Trade, Mari E. Pangestu, the Minister of Agriculture, Suswono, the Head of Investment Capital Coordination Body, Gita Wirjawan, the Governor of West Java, Ahmad Heryawan, the Head of Bekasi Regency, Sa’duddin, the Chairman of KADIN (Indonesia Chamber of Commerce), Suryo Bambang Sulisto, the Chairman of APINDO (Indonesia Entrepreneurs Association), Sofjan Wanandi, the President Director of BNI (Bank Nasional Indonesia), Gatot Suwondo, as well as several community leaders. This plant is in the early stage of its investment and is expected to have a total investment plan of Rp 2.3 trillion until year 2013.

With a total annual processing capacity of approximately 300,000 tonnes of CPO, the existing plant is able to produce 168,000 tonnes of cooking oil and 112,000 tonnes of margarine per year. In addition, it is on the plan to expand the land by 5 hectares for construction of a cocoa butter substitute (CBS) plant with an annual capacity of 140,000 tonnes. “This effort is aligned with the government’s initiative to support the national downstream industry. This would increase the regional value creation and is also in line with the Master Plan of Indonesia Economy Development Expansion and Acceleration 2011-2025 and the Feed Indonesia programme – Feed the World,” commented Franky O. Widjaja, President Commissioner of PT SMART Tbk.

“The development of an integrated upstream and downstream business requires institutional synergy that is not easy to accomplish. However, we will achieve this by applying the best agribusiness practices. We expect this to result in great benefits towards social prosperity and environmental sustainability, as well as increasing the economic value of the agribusiness sector and national industry in general,” he added

“To grow this sector in a healthy way and to respond to the global challenges as a main producer of CPO and vegetable oils, a comprehensive government policy is required. Guidelines are needed to support an integrated policy in the area of land availability and allocation, infrastructure, research and development and access to technology and funding.,” said Mr. Widjaja.

Since we began construction on 20 October two years ago, we have commenced the production facility that covers a 10-hectare land area and comprises a refinery plant, fractionation plant, semi continuous deodorizer (SCD) plant, hydrogenation plant, margarine plant and filling plant facilitated by a main laboratory, bulking station, warehouse, weight bridge, and waste processing facility. The facility has approximately 700 employees.

The industrial estate of Marunda Center was chosen because of the availability of land, road infrastructure, energy supply and port facility. The facilities are at the early stage of PT SMART Tbk.’s commitment to expand its downstream business in producing a range of higher value-added end products, and to overcome distribution barriers in the Greater Jakarta area (Jabodetabek). Similar facilities are operated by the Company in Surabaya, East Java, Tarjun, South Kalimantan and Belawan, North Sumatera, and they will be expanded in the future. PT SMART Tbk’s affiliated companies plan to invest in several strategic locations in Sumatra and Kalimantan. Total investment planned until year 2015 amounts to Rp 9 trillion and will provide employment to almost 20,000 people, directly and indirectly.

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