Indonesia’s PalmCo delays IPO, plans biodiesel plant investment

JAKARTA :Indonesia has delayed plans for an initial public offering (IPO) of palm oil producer PalmCo, an official from its parent, state agricultural group Perkebunan Nusantara (PTPN) III, said on Wednesday.

Indonesia’s ministry for state-owned enterprises, which oversees the company, said in July last year that PalmCo would launch an IPO, which would be used to expand refining capacity. Sources told Reuters the IPO could raise about $500 million.

Bambang Agustian, PTPN corporate secretary, told Reuters the IPO would be delayed, citing market uncertainty but gave no further details on the timing.

Meanwhile, PalmCo aims to start construction this year of its biodiesel plant, which is expected to have 443,000 metric tons per year capacity by 2026, PalmCo CEO Jatmiko Krisna Santosa said.

“We have chosen the technology and we are near a decision for the contractor. It’s almost ready,” Jatmiko told reporters, without providing details on how much the project will cost.

Jatmiko said PalmCo also expects to commission a new cooking oil plant this year, and seeks to add two more cooking oil production facilities in the next two years.

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