Sales and Marketing

In addition to marketing of CPO, since 2014 the Company also developed a market for palm oil derivative products such as RBDPO, Olein, Stearin and PFAD. If a large number of CPO products are absorbed by the domestic market, palm oil derivative products are aimed for export to several Asian countries such as China, India, Philippines, South Korea, Pakistan, Russia and other countries. For these palm oil downstream products, the Company has operated the PT Tanjung Sarana Lestari refinery plant in the Mamuju Utara Regency, West Sulawesi Province and acquired 50% equity shares in PT Kreasijaya Adhikarya (KJA), a refinery located in Dumai, Riau Province.

Port and Bulking Facilities of PT Borneo Indah Marjaya, East Kalimantan

During 2015, the Company recorded a CPO sales volume of 1,041,895 tons or a decrease of 24.2% compared to the previous year. Kernel in the amount of 334,078 tons or a decrease of 8.8%. This decrease in CPO sales volume is due to partial CPO products reallocation for further processing into palm oil derivative products. Therefore, the Company’s Olein sales in 2015 rose by 61.6% compared to 2014 and reached a sales volume of 412,214 tons.

The CPO and palm oil derivative products market place will still remain large. In addition to food raw materials, the mandatory biodiesel development program by the Government has opened opportunities for CPO demand in the domestic market. While export demands for palm oil derivative products will constantly increase, including those from potential new markets such as Russia, Pakistan and a number of Middle East countries.