OUR BUSINESS   |   Plantation Division

Agro Industry & Plantation Division of MustangCorps ( PT. Mustang Inti Agrotama ) engages in oil palm plantation. Our oil palm plantations are strategically located in East Kolaka regency and Kolaka regency, South East Sulawesi where the climatic conditions are suitable for planting oil palms. PT. Mustang Inti Agrotama's oil palm concession in East Kolaka is 30,000 Ha and 6,000 Ha of oil palm concession is located at Kolaka regency, South East Sulawesi.

In addition to holding land rights to plantation land, we manage oil palm plantation under the Plasma Scheme in the area. The Plasma Programme is an initiative designed for the development of oil palm plantations for smallholders by a developer of plantations. We are committed to purchasing all the fruits produced by the small landholders’ plantations. We intends to grow its plantation business through greenfield projects and acquisitions to tap on the growing demand for palm oil. Moreover, we have developed a features key metrics of palm oil industry development in East Kolaka as follow :

SWOT Analysis:

STRENGTHS

  • High availability of land
  • The right to land that is valid for up to 90 years
  • Availability of low cost manpower

WEAKNESSES

  • Lengthy procedure to obtain land permits
  • Lack of infrastructures in certain prospective location in the area

OPPORTUNITIES

  • Increasing demand for CPO
  • Favorable regulations for foreign investors, such as the one that allows foreign investors to hold 95 percent shares
  • Sustainable palm oil-based management
  • Newly established CPO commodity market

THREATS

  • Better performance of substitute products
  • Limited supply of high quality seed
  • Issues with surrounding communities
  • Environmental issues

Our Agro Industry & Plantation Division also have plan to develop biomass (wood pellets) industry both in East Kalimantan and Sulawesi. The production of wood pellets has increased dramatically in recent years due in large part to aggressive emissions policy in the European Union (EU). Wood pellets can be used as heat, electricity, transportation and directly used as fuel wood. However, the primary application of wood pellets on a large scale facility was through co-firing, to substitute partly the coal.