Business Segments |  Palm Plantation

"An Agro Industrial Integration"

Royal groups palm plantations are located in West Kalimantan, Indonesia with a land bank of more than 100,000 Hectares. We process fresh fruit bunches (FFB) that we source from our own plantations, plasma schemes and third party suppliers. Royal Groupís Palm Plantations have been structured as three independent plantation management companies in West Kalimantan along the serene Kapuas River near the town of Tayan.

The crude palm oil (CPO) and palm kernel produced by our mills are predominantly supplied to our Refineries and Palm Kernel crushing plants. The location of these plantation fields are strategically selected from the factors of logistics, communication, soil fertility and higher yield of Palm Fresh Fruit Bunch (FFB).

Tayan lies 120 km from Pontianak, The Provincial capital of West Kalimantan and is connected with good all weather metalled roads leading to Pontianak city. Additionally, River Kapuas also serves as ravine transportation of Fresh Fruit Bunches (FFB) and Crude Palm Oil from Tayan to main seaport of Pontianak. The river is navigable for barges and vessels from up to 3000 tons.

The three plantations can be accessed by metalled roads and Kapuas River to the main seaport of Pontianak. The annual rainfall in the plantation estates is 395 mm/year, average humidity 86% which is ideal for the higher yield of Palm fruit. The land is 44.80% flat, 38.26% rolling and 16.94% undulating.

The human resource and man power in the plantation are well trained in land preparations, pruning, drainage and harvesting. 90% of the population in the villages is DAYAK, who are well known for their agricultural skills in palm plantation.

The Royal groupís plantations are professionally and technically supported by PT. Agrindo Management Services Ė An experienced agricultural consultancy and management services company. Agronomic survey and treatment is carried out annually through a yearlong plan of pruning, drainage, fertilization and pest control by technical experts.

Royal groupís plantations are maintained through extensive mechanized implements which are broadly of two categories. Heavy plant equipment includes Caterpillar and Komatsu excavators, bull dozers, graders and cranes for drainage and maintenance of tracks inside the plantations. The second category includes agricultural machines like tractors, dumpers, trucks and other agricultural implements. For ravine transportation the company maintains speed boats and logistic barges.

Royal groupís plantations do not neglect their social responsibilities for the people of the area. Nearly 43 villages with a population of roughly 25,000 people, we provide material and financial support for 30 schools, 1 hospital, 3 clinics and 3 dispensaries. Majority of the people are Christians and 30 churches and 3 mosques are provided financial support by Royal group.

At Royal group plantations we stringently follow the intensification programme to achieve higher yields and greater cost efficiency. This involves modern farming techniques and use of organic material (empty fruit bunches as fertilizers), management of water resource and pilot programmes for deployment of improved agricultural implements while, the existing intensification programme indicates good prospects for growth and profitability, Royal groups intends expanding its land bank to 200,000 hectares in next 3 years. In order to ensure continued success in the palm plantations we are assiduously striving to invest significantly in Research and Development (R & D) to improve our seed stocks in our nurseries.

The average age of the palm plants in our plantations is nine years and it shall reach the age of optimal productivity in next two years, this will give us a quantum leap forward in crude palm oil production.