kontan.co.id - JAKARTA. PT Jaya Agra Wattie Tbk (JAWA) will boost crude palm oil (CPO) production this year. The CPO production target of 56,217 tons, 21.4% higher than last year's 46,298 tons, is expected to be achieved so that the company's income will also increase.

Bambang S. Ibrahim, JAWA's Finance Director said that the increase in CPO production will be obtained because the age of the oil palm plants has increased so that their productivity is higher. The company will also increase the purchase of fresh fruit bunches (FFB) from third parties. "This is still a rough target, we are still monitoring the situation and conditions going forward," he said, Wednesday (10/4).

With the increasing productive age of oil palm trees, this year JAWA's FFB production target has also increased.

Of the FFB production target of 267,000 tons this year, 164,750 tons will be obtained from core plantations and the rest from third-party purchases. Last year, the realization of TBS production from both third parties and JAWA core plantations reached 136,457 tons.

Rubber expansion

To support the company's future expansion, this year Jaya Agra Wattie has budgeted capital expenditure (capex) of IDR 570 billion. The funds will be used to develop 4,000 hectares (ha) of oil palm plantations and 5,500 ha of rubber plantations.

According to Bambang, the investment in adding oil palm and rubber plantations for each hectare is quite large. Without going into more detail, Bambang said that at least around IDR 50 million per ha is needed for additional land.

Up until 2012, the area of ​​Jaya Agra Wattie's oil palm plantations that have produced is 8,740 ha. The details are, 5,609 ha are plants with an age of around four to seven years and 3,131 ha are oil palm plants aged around eight to 17 years.

JAWA also has immature plantation land of 12,447 ha, including 4,000 ha of plasma plantation land. All of the company's oil palm plantations are located on the island of Kalimantan.

In addition to adding new planted rubber and oil palm land, the company also plans to add land reserves or landbanks of 50,000 ha in Kalimantan and Sulawesi this year. The new land will add to JAWA's total rubber landbank, which in mid-2012 reached 31,100 ha.

Its official website states that JAWA has planted rubber plantations of 10,723 ha. Of this area, 5,126 ha are still small and not yet producing, while 5,597 ha are mature. JAWA's rubber plantations are located on the islands of Java and Kalimantan.

In addition to being involved in the oil palm business, JAWA is also involved in the rubber business. In 2012, the company was able to produce 6,646 tons of rubber, down slightly from the previous year's 6,681 tons. JAWA also does coffee and tea plantation business.

For coffee, JAWA has a plantation area of ​​536.02 ha, of which 99% are already producing and the other 1% are not yet mature. Meanwhile, JAWA's tea plantation reaches 504.3 ha, all of which are mature.

JAWA also manages a CPO processing plant with an installed capacity of 45 tons per hour and a crumb rubber and ribbed smoked sheet factory with a capacity of 13.5 tons and 3 tons on Java Island. Regarding the fluctuating prices of CPO and rubber, Bambang said it was still reasonable to face it so that it would not interfere too much with the company's expansion target.

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