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 96 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 176,980 hectares (“ha”) (FY2021: 178,105 ha) and our associate companies stand at about 136,000 ha (as at 30 June 2022).
Our total planted area is 99% oil palm and 82% is classified as mature. The weighted average palm age is 13 years. IOI is diversifying into cash crops and intercropping to optimise the revenue of operating units that are undergoing replanting programmes.
We have planted a total of 480 ha of coconuts, 50 ha of bananas and 40 ha of pineapples as of FY2022. We are expanding our coconut business and targeting to plant 1,329 ha of coconuts 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 FY2022, 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 23,753 for 35 years, including plasma. We also have 8,809 ha of land rights in the form of Izin Usaha Perkebunan (“IUP”) or Plantation Operational Permit, and Panitia B which is currently in the progress of HGU application and is targeted to complete by FY2023.
In addition, IOI also owns a 32.1% stake in Bumitama Agri Ltd (BAL), a listed company on the Singapore Stock Exchange (SGX).
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