Sinar Mas firm to invest $1.6 billion in Liberian palm oil

Oil palm fruit (Photo: LifeMosaic)

Sinar Mas Group says it will invest US$1.6 billion in the Liberian palm oil business to expand operations overseas.

Franky Oesman Widjaja, the CEO of Golden-Agri Resources Ltd. (GAR), a key Sinar Mas Group business unit, said that the company would disburse the funds over eight to 10 years.

“So far, we have put in about $100 million,” he said during a meeting with Liberian President Ellen Johnson Sirleaf on Monday in Jakarta.

Franky said that the investment was appealing and would boost the company’s image.

Golden-Agri Resources has been seeking to become a virtual king in the market as it attempts to acquire to 40,000 hectares of new concessions, mostly in Kalimantan.

GAR, the world’s second-largest palm oil plantation operator, aims to operate 503,400 hectares of plantations in 2013, which would be up 8.6 percent from 2012 and would include areas developed in partnership with local farmers.

In 2010, the company invested in the Verdant Fund LP, a private equity fund that has a stake in Golden Veroleum (Liberia) Inc., which the Liberian government granted a concession of 220,000 hectares of palm oil plantations and 40,000 hectares in partnership with local farmers.

As of 2012, GAR has invested $70 million in Verdant Fund to develop palm oil plantations, while Veroleum has planted in 2,000 hectares of the concessions.

Franky added that, depending on conditions such as soil, the company would plant up to 10 hectares this year, an investment which could reach $100 million.

Read full article in The Jakarta Post

Related Project:

Oil Palm

LifeMosaic, in partnership with Friends of the Earth and Sawit Watch, coordinated a project aimed at bringing critical information about the impacts of oil palm to communities in plantation expansion areas, enabling them to make informed decisions about their lands and their futures.

Recent stories

35,000 Ugandans left homeless as private firms share Kiryandongo land

2nd Mar 2020
The government says the contentious territory was empty space and unoccupied public land but residents claim they hold it under customary ownership. (Source: Daily Monitor)

Hiring a Fundraising and Finance Coordinator

18th Dec 2019
This is an exciting and varied role with opportunity for development. This post aims to unlock organisational growth, particularly to sustainably expand the organisation to meet the increasing demand that we are experiencing from indigenous partners and movements.

LifeMosaic is a Not for Profit Company Limited by Guarantee (Registered company number: SC300597) and a Charity Registered in Scotland (Scottish Charity number: SC040573)