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Toba Bara delays plan to build US$10 mln worth of palm oil mill to 2015

JAKARTA (Rambu Energy) – PT Toba Bara Sejahtera Tbk (TOBA.IJ), a coal producer, plans to further expand its palm oil business next year through its business unit PT Perkebunan Kaltim Utama (PKU). The company said it will set aside US$10 million to build a palm oil mill next year, delayed from initial plan of this year.

“The development of the plant (palm oil mill) will still go ahead. The construction is now delayed to next year,” Director and Corporate Secretary of Toba Bara Sejahtera Pandu Sjahrir was quoted by Investor Daily as saying.

Toba Bara operates three coal mining subsidiaries – PT Trisensa Mineral Utama (TMU), PT Indomining and PT Adimitra Baratama Nusantara – and one palm oil plantation firm PT Perkebunan Kaltim Utama. So far, most of its revenues come from the three coal mining firms.

Pandu Sjahrir said that the company has secured financing from Bank Rakyat Indonesia in mid-2014 to construct the palm oil mill.

In the first nine months to September, Toba Bara produces 6.4 million tons of coal, almost the same with coal production of 6.5 million tons in the same period last year.

The company targets to produce coal between 7.2 million to 7.8 million tons this year.

The company has set capital expenditure of US$10.5 million in 2014. As of end September, the company has spent US$10.23 million, most of which were allocated for land clearing. The company is yet to reveal its capital expenditure for next year.

Toba Bara Sejahtera is a privately owned group founded in 2004 by General (Ret.) Luhut B. Pandjaitan, who remains the majority shareholder. The company currently has four major business areas, namely coal, oil and gas, power plant and agriculture. (*)

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