06 March 2019

MEDAN — The step of palm oil issuer PT Mahkota Group Tbk (MGRO) in developing the downstream industry is getting closer. The company stated that the development of the cooking oil re-finery plant has reached 50%.

Usli Sarsi, CEO of PT Mahkota Group Tbk, said that the cooking oil refinery plant construction project has entered the phase of installing the main machines.

“The cooking oil refinery plant will contribute positively to sales starting July 2019. Therefore, we are targeting IDR 5 trillion in revenue this year or a 2.5-fold increase compared to 2018,” said Usli Sarsi.

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The new plant will produce crude palm oil derivative products such as olein or cooking oil and stearin, which can be used as raw material for margarine or oleochemicals.

On the other hand, he continued, in January 2019 the company's CPO production performance was recorded to jump up to 11.5% on an annual basis, to 16,131 tons compared to January 2018 which only reached 14,455 tons. The increase in CPO production volume also boosted the company's profit.

“In January 2019, we achieved a very positive interim net profit compared to January 2018 which still posted a loss. We are optimistic that this positive performance will continue in the future,” he said.

According to him, to obtain profits that continue to grow from year to year, the company must always create products with added value. This year, the company targets to achieve a net profit of Rp123 billion, higher than the 2018 target of only IDR 50 billion.

“Every year there will always be product innovations from MGRO. The point is there will always be surprises. We continue to encourage downstreaming. This innovation is carried out in addition to strengthening the company's mental funda also to increase and maintain investor confidence in the company's performance, “he said. (*)