23/1/2006 (The Star)  -  MALAYSIAN plantation companies are still on an acquisition trail for land in Indonesia this year.

Despite their newly discovered interest in biodiesel, plantation players contacted by StarBiz said they would continue to expand by acquiring “green fields” or existing oil palm plantations in the republic.

Many agreed that 100,000ha or more would be the suitable size in terms of economies of scale for local players to venture into Indonesia.

Local companies with the highest acreage in oil palm plantations there are Kumpulan Guthrie Bhd, Golden Hope Plantations Bhd (GHope), PPB Oil Palms Bhd, Kuala Lumpur Kepong Bhd and Kulim (M) Bhd.  

 
Derom Bangun
So far, GHope, PPB Oil Palm and Asiatic Development Bhd had indicated interest to expand their oil palm plantation in Indonesia this year.

More recently, IOI Corp Bhd, whose oil palm plantations are confined to Malaysia, also announced its plans to venture into Indonesia.

Indonesia Palm Oil Producers Association president Derom Bangun said the country still had plenty of land for Malaysian companies to cultivate oil palm.

He said of Indonesia's total land area of 300 million ha, “about 100 million ha had been allocated for oil palm cultivation, of which only 1.6 million ha had been planted by Malaysian oil palm companies.

“Currently, barely 5%, or five million ha, has been planted with oil palm by Malaysian and Indonesian companies,” Derom added.

Malaysia and Indonesia together produce 80% of the world's palm oil. Last year, Malaysia produced about 14.9 million tonnes and Indonesia about 13.6 million tonnes.

GHope group chief executive Datuk Sabri Ahmad said: “We are going to Indonesia this year to acquire more land for oil palm plantation. We are currently talking to several parties.”