The Palm Scribe

Astra Agro Lestari plans to build its 46th palm oil mill

MALANG – PT Astra Agro Lestari Tbk (AALI) is planning to build a new palm oil mill, in South Kalimantan this year, its President Director, Santosa, has announced.

ILLUSTRATION. A palm oil mill. ILLUSTRATION. A palm oil mill.

Speaking in Malang, East Java, Santosa was quoted by Kontan daily on Thursday as saying that the plant will have a production capacity ofd 45 tons per hour with an option to expand it to 60 tons per hour and is expected to begin operation in 2019.

The new mill will process oil palm from new core estates which would start to become productive in 2019 as well as from nearby independently-owned plantations.

The company has earmarked fund totaling Rp 250 billion for this year.

By end of 2017, AALI operates a total of 31 crude palm oil mills, each with a capacity of 1,500 tons per hour, and 14 palm oil kernel mills which have each a capacity of 1,625 tons per hour.

The mills are located in Aceh, Riau, Jambi, Central Kalimantan, East Kalimantan, South Kalimantan, West Sulawesi and Central Sulawesi.

AALI currently has a total of 291.9 hectares of plantation land, 63.6 hectares of which are operated under plasma scheme and the rest being core estates.

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