In a recent development in the commodities sector, the Government of Indonesia has postponed the Initial Public Offering (IPO) plans of PalmCo, a prominent producer of Palm oil. The information was released by Reuters, citing an official from the parent company, state-owned agricultural group Perkebunan Nusantara (PTPN or Persero).
Indonesia's Ministry of State-Owned Enterprises, responsible for overseeing the company, had announced in July last year that PalmCo was planning an IPO to expand its refining capacity, as reported on January 10.
Sources told Reuters that the IPO was expected to raise around US$500 million. Bambang Agustian, from PTPN, told Reuters that the postponement was due to market uncertainty, without detailing a new schedule.
In parallel with the IPO plans, PalmCo announced intentions to begin construction of a biodiesel plant later this year. However, PalmCo CEO Jatmiko Krisna Santosa mentioned that the plant is expected to reach a capacity of 443,000 tonnes/year by 2026. “We have already chosen the technology and are close to finalizing the choice of contractor. The project is almost ready,” said Santosa, without going into detail about the costs involved.
In addition, new cooking oil factories will open this year and two more in the next two years, expanding operations.
Source: Oils & Fats International
