JAKARTA: Kuala Lumpur Kepong Plantation Holdings Sdn Bhd, a unit of Kuala Lumpur Kepong Bhd (KLK), yesterday signed an accord with the Indonesian state planter PT Perkebunan Nusantara II (PTPN II) to produce oil and rubber in North Sumatra.
Quoting a statement by PTPN II, Bloomberg reported that the companies signed a 30-year agreement, creating a venture called PT Langkat Nusantara Kepong, in which PTPN II will have a 40% share and KL Kepong, the remainder.
“The venture will spend about 800 billion rupiah (US$80mil) to develop 20,221ha of oil palm and rubber plantations.
“It aims to raise palm oil yields to 27 tonnes a hectare from 10-11 tonnes currently, and triple rubber yields to 1.5 tonnes a hectare,” it said.
Indonesia, which is the world’s largest palm oil producer, and Malaysia, the second-biggest, account for 90% of the world’s palm oil production.
KLK, Malaysia’s third-largest palm oil producer, reported a 52% drop in net profit to RM112.68mil for the three months ended March 31.
Turnover dipped 24% to RM1.44bil against RM1.9bil previously. F
The company said group profit for the current financial year ending Sept 30 would be much lower than the preceding year.
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