PETALING JAYA: MKH Oil Palm (East Kalimantan) Bhd (MKHOP) is acquiring a 100% stake in Indonesian oil palm plantation company, PT Tunas Tani Tutus for RM9.1mil.
In a statement, the East Kalimantan, Indonesia-based upstream oil palm plantation company said PT Tunas owns land totalling approximately 3,096.95 hectares.
PT Tunas’ land comprises Block A and Block B, which has also been granted a Plantation Business Permit by the authorities of Indonesia on Aug 1, 2025. With this permit, PT Tunas is able to commence planting activities immediately.
“Both parcels of this land are located in Kecamatan Sebulu and Muara Kaman in East Kalimantan, Indonesia, where they are designated for oil palm plantation.”
As these lands are in close proximity to MKHOP’s existing estate, the company said its current team will be able to be deployed immediately to operate the newly acquired area.
“Upon the completion of this deal, PT Tunas will become a subsidiary of MKHOP,” it said.
Chairman Tan Sri Alex Chen Kooi Chiew said the acquisition aligns with the group’s long-term strategy of expanding its plantation business by acquiring companies that own greenfield plantation land.
“We have acquired a piece of prime and quality plantation land to add to our current landbank. With this new acquisition, our landbank now increases to 21,302.25 ha from 18,205.30 ha previously.
“We are continuously seeking to acquire additional oil palm plantation land located near our existing oil palm plantations in Kutai Kartanegara, East Kalimantan as part of our expansion program towards providing sustainable and recurring returns for our shareholders.”
Separately, MKHOP reported a 10.3% increase in net profit to RM17.7mil, or earnings per share of 1.75 sen for the third quarter ended June 30, compared to the same period a year earlier, despite a 15.8% decline in revenue to RM78.6mil.
The improved earnings were mainly attributed to higher average selling prices for crude palm oil (CPO), crude palm kernel oil (CPKO), and palm kernel (PK). The group also began sales of CPKO in February 2025, contributing to the stronger performance.
During the quarter, the average CPO price per metric tonne (MT), net of Indonesia’s export duty and levy, stood at RM3,708, while the PK price averaged RM3,293 per MT. MKHOP also recorded total production of 99,952 MT of fresh fruit bunches for the period.
For the nine months to June 30, MKHOP’s net profit surged 59.5% to RM68.9mil, compared to RM43.2mil in the same period a year earlier. Revenue for the period rose 6.0% to RM277.4mil.
The group’s outlook for the financial year ending Sept 30, 2025, remains well-supported by continued market demand for CPO, which has been trading at approximately RM3,600 to RM3,800 per metric tonne (net of export levy and duty) in Indonesia.
