Bumitama Agri

Bumitama Agri Limited is a Singapore-based holding company whose principal operating business is Bumitama Gunajaya Agro, an Indonesian oil-palm plantation group. The company cultivates oil-palm trees, harvests fresh fruit bunches, processes them into crude palm oil and palm kernels, and sells those commodities to downstream buyers. Its plantation footprint is concentrated in Central and West Kalimantan, with additional mill and plantation operations in Riau. The business was established in 1996 by the Harita Group after the acquisition of approximately 17,500 hectares in Central Kalimantan. It expanded primarily through land acquisitions and plantation development. By 2007, its planted area had reached about 50,000 hectares, and immediately before its 2012 public offering it reported approximately 118,000 hectares of planted area. The company later developed a much larger land bank of roughly 230,000 hectares, of which about 187,000 hectares had been planted and nearly 40,000 hectares were designated for conservation in the source material. Bumitama's operating model covers the agricultural and initial processing stages of the palm-oil supply chain. Fresh fruit bunches are normally transported to company mills shortly after harvest, supporting oil quality and extraction yields. The group has been described as owning 14 crude-palm-oil mills, 13 in Kalimantan and one in Riau, with combined annual fresh-fruit-bunch processing capacity of approximately 5.85 million tonnes. Its primary commercial customers have included large palm-oil trading and processing groups such as Wilmar International, the Sinar Mas Group and Musim Mas. The company has links to the wider Harita Group, whose activities historically included timber, plywood, mining and other natural-resource businesses. IOI Corporation acquired a 33% interest in PT Bumitama Gunajaya Agro in 2007, providing a strategic relationship involving technical and management support. Bumitama Agri subsequently listed on the Singapore Exchange in April 2012. The offering was reported as heavily oversubscribed, and the shares began trading above the offer price. The public listing gave the plantation group access to capital markets while retaining its connection to the Harita business group. Beyond production, Bumitama has developed education and healthcare programmes in plantation communities. Source material describes schools in Central Kalimantan, West Kalimantan and Riau, scholarships, teacher training, free educational materials and transport, as well as medical centres, medicines and periodic health services for workers and nearby residents. The company has also participated in sustainability initiatives through membership of the Roundtable on Sustainable Palm Oil since 2007. Its most prominent conservation programme is the Bumitama Biodiversity and Community Project, developed with IDH–the Sustainable Trade Initiative from 2016. The programme focuses on protecting habitat and improving ecological connectivity around the Sungai Putri peat swamp forest, Gunung Tarak forest and the wider landscape linked to Gunung Palung National Park. The project includes efforts to conserve habitat for Bornean orangutans and other species, assess carbon stocks and manage areas set aside from plantation development. Bumitama has also worked with PONGO Alliance on approaches to orangutan habitat management. Bumitama's identity is therefore that of a vertically coordinated plantation commodity producer rather than a consumer-facing packaged-food brand. Its performance is exposed to palm-oil prices, crop yields, weather, labour availability, land-use regulation, sustainability requirements and scrutiny of Indonesian plantation practices.

Bumitama Agri emerged from the Harita Group's expansion into Indonesian oil-palm plantations. The Harita Group traces its business history to Lim Tju King and later expanded under Lim Hariyanto Wijaya Sarwono, whose activities included timber and plywood production. The group also entered mining through projects involving gold and coal before developing a substantial plantation interest. In 1996, the group established Bumitama and acquired approximately 17,500 hectares in Central Kalimantan. The company grew through acquisitions and the development of planted estates. Its planted area reached about 50,000 hectares by 2007 and approximately 118,000 hectares by March 2012. That period also brought a strategic investment by IOI Corporation, which acquired 33% of PT Bumitama Gunajaya Agro. The relationship was intended to provide technical expertise and management support from IOI's broader palm-oil operations. Bumitama's core activities became the cultivation of oil palms, harvesting of fresh fruit bunches and processing into crude palm oil and palm kernels. Its estates are concentrated in Central and West Kalimantan, with additional operations in Riau. The company developed an integrated network of plantations and mills, allowing harvested fruit to be processed quickly. The source material describes a land bank of roughly 230,000 hectares, around 187,000 hectares planted and nearly 40,000 hectares retained for conservation. It also describes 14 crude-palm-oil mills with combined annual fresh-fruit-bunch processing capacity of approximately 5.85 million tonnes. On 12 April 2012, Bumitama Agri completed an initial public offering on the Singapore Exchange. HSBC and DBS Bank acted as bookrunners. The offering comprised 297,570,000 shares plus a 29,754,000-share greenshoe allotment. It was reported to have been 31 times oversubscribed, and the stock rose from an offer price of S$0.745 to a first-day close of S$0.98. The listing established Bumitama as a publicly traded plantation company while leaving it connected to the Harita Group. The company's later profile combined commodity production with community and conservation programmes. It joined the Roundtable on Sustainable Palm Oil in October 2007. Its social programmes included schools, scholarships, teacher training, medical centres and basic healthcare for employees and residents of surrounding communities. In 2016, it worked with IDH on the Bumitama Biodiversity and Community Project. The project focused on land managed by PT Gemilang Makmur Subur and sought to create a wildlife corridor between the Sungai Putri peat swamp forest and Gunung Tarak forest, with links toward Gunung Palung National Park. Bumitama also acquired PT Damai Agro Sejahtera and issued a stop-work order while assessments examined high-conservation-value habitat and carbon stocks. The conservation work included protection of Bornean orangutan habitat and collaboration with PONGO Alliance. Bumitama's history reflects the development of Indonesia's industrial palm-oil sector: expansion through land acquisition and estate development, integration with milling, access to international commodity buyers and increasing attention to certification, community relations and biodiversity protection.

• 2016

  Biodiversity and Community Project begins

  [1]Bumitama Agrien.wikipedia.org

  Bumitama and IDH establish a conservation programme focused on habitat connectivity, biodiversity and community interests in West Kalimantan.

• 2012

  Singapore Exchange listing

  [1]Bumitama Agrien.wikipedia.org

  Bumitama Agri launches its initial public offering and lists on the Singapore Exchange in April.

• 2007

  IOI Corporation takes a strategic stake

  [1]Bumitama Agrien.wikipedia.org

  IOI Corporation acquires a 33% interest in PT Bumitama Gunajaya Agro and provides a strategic connection to palm-oil technical and management expertise.

• 2007

  RSPO membership

  [1]Bumitama Agrien.wikipedia.org

  Bumitama joins the Roundtable on Sustainable Palm Oil.

• 1996

  Bumitama is established

  [1]Bumitama Agrien.wikipedia.org

  The Harita Group establishes Bumitama after acquiring approximately 17,500 hectares in Central Kalimantan.

A large-scale Indonesian palm-oil plantation and primary-processing supplier serving commodity buyers and global palm-oil supply chains.

• Edible oils and agricultural commodities

  Crude palm oil

  Crude palm oil is Bumitama's principal processed output. The company harvests fresh fruit bunches from its oil-palm estates and processes them through its mill network. The resulting bulk commodity is sold to downstream palm-oil traders, refiners and integrated consumer-goods supply chains rather than marketed primarily as a retail product under the Bumitama name.

• Agricultural commodities

  Palm kernels

  Palm kernels are a secondary agricultural output of the company's oil-palm processing operations. They can enter the palm-kernel oil and feed-related supply chain. As with crude palm oil, the product is principally a business-to-business commodity produced from the company's estates and mills.

• Agricultural raw materials

  Fresh fruit bunches

  Fresh fruit bunches are harvested from Bumitama's oil-palm plantations and delivered to nearby crude-palm-oil mills. Rapid transport is an important part of the operating model because processing soon after harvesting helps preserve fruit quality and support oil-extraction performance.

• 2016Bumitama Biodiversity and Community Project

  Indonesia

  Developed with IDH, the project seeks to conserve high-value habitat, protect carbon stocks and establish ecological connectivity between the Sungai Putri peat swamp forest, Gunung Tarak forest and the landscape connected to Gunung Palung National Park. The programme includes attention to Bornean orangutan habitat and community-related conservation management.

  Outcome. The initiative supported conservation set-asides and further habitat-management work, including cooperation with PONGO Alliance.

  Source
• Community education and healthcare programme

  Indonesia

  Bumitama has developed schools, scholarships, teacher training and student support in plantation areas, alongside medical centres, medicines, doctors and periodic health services for employees and nearby residents.

  Outcome. Source material reports 38 schools and almost 5,300 enrolled students as of 2020, together with continuing basic healthcare support.

  Source

• 2016

  Conservation set-asides and habitat protectionStrategy

  Background

  Assessments of land connected with PT Damai Agro Sejahtera identified high-conservation-value habitat and carbon stocks, including areas important to rare species.

  Action taken

  Bumitama issued a stop-work order on the acquired operation and worked with conservation organisations to place important areas under conservation management.

  Aftermath

  The action became part of the Bumitama Biodiversity and Community Project and broader efforts to maintain a wildlife corridor in West Kalimantan.

  Source

• 2012

  Initial public offering and Singapore listingM&A

  Background

  Bumitama sought public-market funding and a wider investor base while operating as part of the Harita Group's Indonesian plantation interests.

  Action taken

  The company issued 297,570,000 shares together with a 29,754,000-share greenshoe allotment and listed on the Singapore Exchange on 12 April 2012.

  Aftermath

  The offering was reported to be 31 times oversubscribed. Shares were priced at S$0.745 and reportedly closed the first trading day at S$0.98.

  IPO offer price and first-day closing price. S$0.745 per share → S$0.98 per share (April 2012)

  Source

• Unconfirmed

  Bumitama Agri reports nine-month earnings[3]Bumitama Agri公布九个月业绩theedgemalaysia.com

  Bumitama Agri reported earnings of IDR632.14 billion (S$59.9 million) for the nine months ended September 30, 2020, up 48.8% year over year.

Read more

1. 1Bumitama Agrien.wikipedia.org
2. 2Bumitama Agri official websitebumitama.com
3. 3Bumitama Agri公布九个月业绩theedgemalaysia.com