Plantation is a core business of IOI, which is engaged in the cultivation of oil palm and processing of palm oil with operations in seed breeding, cultivation and crop oil extraction. Today, we have 98 estates, 15 palm oil mills, four research and development (“R&D”) centres and one biotechnology centre across Malaysia and Indonesia.

Our harvested fresh fruit bunches (“FFB”) are processed by our own 15 milling facilities with a total installed capacity of 980 metric tonne (“MT”) per hour of FFB. Our current total planted area (including subsidiary companies) stands at 176,925 hectares (“ha”) (FY2022: 176,980 ha) and our associate companies stand at about 135,000 ha (as at 30 June 2023).

Our total planted area is 98% oil palm and 84% is classified as mature. The weighted average palm age is 14 years. IOI is diversifying into cash crops and intercropping to optimise the revenue of operating units undergoing replanting programmes.

We have planted a total of 303 ha of bananas, 47 ha of pineapples and 28 ha of durian as of FY2023. We are expanding our cash crops and intercropping business, and targeting to plant 400 ha of bananas, 50 ha of pineapples and 59 ha of durians by next year. In addition, we have planted a total of 1,471 ha of coconuts and target to plant 1,807 ha by next year. We have also established a seed garden to ensure we produce sufficient planting materials by capturing existing crop diversity as well as developing new and improved materials for the future expansion of the Group.

As at FY2023, our Indonesian plantations have been granted Hak Guna Usaha (“HGU”) or Right to Cultivate land rights by the Indonesian government for a total ha of 32,573 for 35 years, including plasma.

IOI emphasises heavily on Environmental, Social and Governance (“ESG”), a crucial element for businesses in sustainability development, and has made marked improvements in several ESG ratings and assessments. IOI won the Gold Award under the Plantation Sector (Equity Awards category) at The Edge Malaysia ESG Awards 2022, and was recognised as the Company of the Year (Best in Green, Education and Social Initiatives) under the Conglomerate – Plantation category at the Sustainability and CSR Malaysia Awards 2023 on 26 July 2023. The award was given in recognition of our aspiration to drive positive socioeconomic development, biodiversity and wildlife protection, as well as our commitment to share prosperity with the community through our corporate social responsibility (“CSR”) and philanthropic programmes.

Oil Palm Hectarage by Region

In addition, IOI also owns a 32.1% stake in Bumitama Agri Ltd (BAL), a listed company on the Singapore Stock Exchange (SGX).

On our continuous and long-term sustainability efforts, please click here for more information.