23 December 2019

The refinery plant will produce CPO derivative products such as olein or cooking oil, stearin as raw material for margarine or oleochemicals.

President Director of Mahkota Group Usli Sarsi said that currently the downstream project has entered the commissioning stage. “In accordance with the plan, production will begin in January 2020,” Usli told Bisnis.

He said that after the refinery is in production, the company's long-term financial performance will be more positive. He projected that the revenue contribution from the refinery's production will be around 67.6% during 2020.

Previously said, MGRO disbursed 60% of the proceeds from its initial public offering to partially fund the construction of an oil palm refinery plant.

On the other hand, he continued, MGRO's CPO production until November 2019 reached 195,379 tons. This realization decreased by 2.01% when compared to last year in the same period.

Even so, the company will always encourage downstreaming and innovation. This is intended to strengthen the company's fundamentals and maintain investor confidence in the company's performance.

Until the end of this year, MGRO is targeting CPO production of 203,308 tons with sales of around 203,121 tons. “As of November 2019, CPO sales have exceeded the target of 206,456. For next year, it will be added again with the production of full capacity refinery results,” he explained. (Adv)