JAKARTA: PT Bakrie Sumatera Plantations Tbk, a palm oil producer, plans to disburse US$40 million or 80% of its capital expenditure to penetrate oleochemicals business, Kontan reported, citing President Director Ambono Janurianto.
The strategy is reasoned to reduce its dependency on crude palm oil. The other reason is that oleochemicals business in fact offers big opportunity.
The company has started to sell olechemicals since December 2010. The new segment booked IDR21.6 billion revenue. Bakrie Sumatera targets to produce 150 tons oleochemicals per day this year.
The revenue from oleochemicals is projected to reach IDR1 trillion or contributed 20% of the company's total revenue this year.
In the first three months this year, oleochemicals' sales broke IDR82.1 billion, whilst the total revenue of the company reached IDR1.14 trillion. (NOM)
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Source: http://www.bisnis.com/corporate/25884-bakrie-sumatera-to-allocate-us40-million-capex
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