24/12/05 (The Star)  -  KUMPULAN Guthrie Bhd (Guthrie) will focus on consolidating and increasing the capability of its Indonesian operations following the improved investment climate there, said chairman Tan Sri Musa Hitam.

Its Indonesian operations, known as Plantation Indonesia or Minamas Plantation, will focus on estate management and yield enhancement as well as improve the quality of its palm oil.

Musa said despite receiving offers to increase its over 210,000ha land bank in Indonesia, the group did not have plans to do so and would focus on enhancing existing resources.

“At the moment, we will consolidate, upgrade plantations and improve mills,” he told reporters at the sidelines of the opening ceremony of the Minamas Plantations’ research centre in Teluk Siak, Sumatra, on Monday.

“Initially, there were many challenges when Guthrie entered Indonesia. The group had to face the fluctuating rupiah, oil and gas price hikes and cultural differences,” he said. 

However, he said, the situation had improved with the present government’s co-operation and collaboration with locals to ensure operations brought results.

Results show progress in its Indonesian operations with yields rising to over 15 tonnes per hectare to date from 8.14 tonnes in 2001, with fresh fruit bunches (FFB) estimated to rise to 2.38 million tonnes this year from 2.08 million tonnes in 2001.

The group’s crude palm oil (CPO) production is expected to increase to 558,000 tonnes per hectare this year from 258,181 tonnes in 2001.

The group projects yieldto hit 20.56 tonnes per hectare in 2008, while FFB is expected to reach four million tonnes and CPO production one million tonnes per hectare by 2010.

The group currently manages 54 estates and 17 mills spread over Aceh, Riau, Jambi, Sumsel, Kal-Teng, Kal-Sel and Sul-Teng.