INVESTING IDR 330 BILLION, MAHKOTA GROUP BUILDS CPO REFINERY
23 June 2018
JAKARTA - PT Mahkota Group plans to build a CPO refinery and kernel crushing plant located in Dumai, Riau. The construction of the plant takes 8 months, starting three months after the company received the proceeds from the initial public offering.
President Director of Mahkota Group Usli Sarsi revealed, the purpose of building a refinery plant and kernel crushing plant to provide added value to the company. The capacity itself prepared is IDR 1,500 tons / day. “IDR 330 billion for refinery investment. The funds are from internal companies, some bank funding and from IPOs to complete the factory,” he said in Jakarta, Friday (6/22/2018).
He continued to explain, with the construction of a refinery plant and kernel crushing plant, the company can carry out a refining system that can produce olein or edible oil derivatives and sterin or margarine and oleochemical raw materials and other derivative products.
With the development of this downstream industry, the company hopes to increase its revenue this year to IDR 2 trillion, from the previous IDR 1.7 trillion. “Last year's revenue was IDR 1.7 trillion, the end of the year is targeted at IDR 2 trillion,” said Usli.
The company's revenue in the last three years has decreased from IDR 2.01 trillion in 2015 to IDR 1.76 trillion in 2017. Usli said, this decline was caused by declining CPO sales.
“From the data of the last three years, our income has decreased due to the 2015-2016 forest fires in the Jambi area, the drought conditions will affect the next two years until 2017. Fertilization was disrupted, rain was lacking, production fell, the effect on our company was because provisions fell, costs rose, our profits fell,” he concluded.