Bumitama Agri
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Bumitama Agri Limited is a Singapore-based holding company for Bumitama Gunajaya Agro, an Indonesian
oil palm ''Elaeis'' () is a genus of palms, called oil palms, containing two species, native to Africa and the Americas. They are used in commercial agriculture in the production of palm oil. Description Mature palms are single-stemmed, and can gro ...
plantation company engaged in the cultivation of oil palm trees and the production of crude palm oil (CPO). It was established in 1996 by the Harita Group with its first acquisition of land in
Central Kalimantan Central Kalimantan () is a provinces of Indonesia, province of Indonesia. It is one of five provinces in Kalimantan, the Indonesian part of Borneo. It is the largest province in Indonesia by area since 2022, bordered by West Kalimantan to the west ...
. Bumitama owns roughly 230,000 hectares and has planted 187,000 hectares of oil palm trees, primarily in Central and
West Kalimantan West Kalimantan () is a province of Indonesia. It is one of five Indonesian provinces comprising Kalimantan, the Indonesian part of the island of Borneo. Its capital and largest city is Pontianak. It is bordered by East Kalimantan and Central ...
. Bumitama owns 14 CPO mills (13 in Kalimantan and 1 in
Riau Riau (Jawi script, Jawi: ) is a Provinces of Indonesia, province of Indonesia. It is located on the central eastern coast of the island of Sumatra, and extends from the eastern slopes of the Barisan Mountains to the Malacca Strait, including s ...
), which produce more than 1,000,000 tons of CPO a year. Primary purchasers of their CPO include Wilmar International, the Sinar Mas Group and Musim Mas. In April 2012, Bumitama Agri presented an IPO on the Singapore Stock Exchange


History

Bumitama is part of the Harita Group, which was founded in 1915 by Lim Tju King. His son, Lim Hariyanto Wijaya Sarwono (President and Chair of Harita Group), took over and developed a timber business. He built a small factory and began manufacturing plywood in 1983. With the help of his two sons, Lim Gunawan Hariyanto (CEO of Harita Group) and Gunardi Hariyanto Lim (Deputy CEO of Harita Group), the Group entered the coal mining industry through the 1985 Kelian Equatorial Mining gold project (a joint venture, Rio Tinto owned 90% and the Harita Group 10%) and the 1988 Lanna Harita coal project. In 1996, Bumitama was established by the Harita Group with its acquisition of 17,500 hectares in Central Kalimantan and the company began its through acquisitions, and by 2007 Bumitama had 50,000 hectares of planted area. As of March 2012, just before the IPO, Bumitama had 118,000 hectares of planted area. For comparison, Singapore (where Bumitama is publicly traded) covers roughly 69,300 hectares (693 km2). In 2007, IOI Corporation bought 33% of PT Bumitama Gunajaya Agro as part of its plan for strategic investment in Indonesia. Bumitama would benefit from IOI's technical expertise and management support, since IOI has operations throughout the palm oil supply chain and markets in more than 65 countries.


Business


Land bank and plantations

Bumitama's primary business is cultivating oil palm trees, harvesting fresh fruit bunches (FFB) and processing it into crude palm oil, and the company owns roughly 230,000 hectares of land in Central and West Kalimantan. Of this, 187,000 hectares have been planted on and nearly 40,000 hectares are dedicated to conservation. In 2020 Bumitama's plantations produced 3,314,128 metric tons of FFB, and had a FFB yield of 19 metric tons per hectare. The company generally transports its harvested FFB to the CPO mills within 24 hours to ensure maximum freshness and yield.


CPO Mills

Bumitama owns 14 CPO mills in Kalimantan and Riau, with a combined FFB processing capacity of 5,850,000 tons per year. In 2019 the company's CPO mills had an average oil-extraction rate (extracted CPO per unit of FFB) of 23%, one of the highest in the industry.


Sustainability and corporate social responsibility


Education

As of 2020 the group has developed 38 schools in Central Kalimantan, West Kalimantan and Riau, and provides scholarships for elementary- to tertiary-level students and sponsors training for teachers and principals. There are almost 5,300 students enrolled at Bumitama schools and the company provides free tuition, books, and school-bus transportation to all students at these schools.


Medical care

Since 2004, Bumitama has provided free medical services to employees and community residents by building medical centers and supplying drugs and doctors. The company sponsors periodic basic medical check-ups and medication from local doctors.


Bumitama Biodiversity and Community Project (BBCP)

Bumitama collaborated with IDH – the Sustainable Trade Initiative to develop the BBCP. The programme was established in 2016 to conserve areas in a subsidiary, PT Gemilang Makmur Subur (GMS). Bornean orangutans and other rare species thrive in the landscape and the aim of this project was to create a wildlife biodiversity migration corridor between the Sungai Putri peat swamp forest and the protected Gunung Tarak forest that directly links Gunung Palung National Park. Bumitama acquired PT Damai Agro Sejahtera (PT DAS) and immediately released a stop work order to prevent further destructive land clearing. Assessments were conducted with the help and support of expert organisations and these confirmed the existence of habitats of high-conservation species and carbon stocks. These were set-aside to be managed under the BBCP, enhancing and protecting the landscape’s biodiversity. Bumitama is also working with PONGO Alliance to explore new concepts in orangutan habitat management.


Roundtable on Sustainable Palm Oil

Bumitama has been a member of the
Roundtable on Sustainable Palm Oil The Roundtable on Sustainable Palm Oil (RSPO) was established in 2004 with the objective of promoting the growth and use of sustainable palm oil products through global standards and multistakeholder governance. The seat of the association is ...
(RSPO) since October 2007. The RSPO is a non-profit organization formed in 2004 to promote the growth and use of sustainable oil-palm products with credible global standards and shareholder engagement.


Initial public offering

On 12 April 2012, Bumitama launched its initial public offering on the Singapore Stock Exchange. HSBC and
DBS Bank DBS Bank Limited is a Singaporean multinational banking and financial services corporation headquartered at the Marina Bay Financial Centre in the Marina Bay district of Singapore. The bank was previously known as The Development Bank of Si ...
were bookrunners for the IPO. A total of 327,324,000 shares (297,570,000 shares and an additional 29,754,000 in greenshoe) were issued during the listing. During the
book building Book building is a systematic process of generating, capturing, and recording investor demand for shares. Usually, the issuer appoints a major investment bank to act as a major securities underwriter or bookrunner. Book building is an alternat ...
phase the IPO was reportedly 31 times oversubscribed, the highest by any IPO in
Singapore Singapore, officially the Republic of Singapore, is an island country and city-state in Southeast Asia. The country's territory comprises one main island, 63 satellite islands and islets, and one outlying islet. It is about one degree ...
since 2007. Bumitama's shares were priced at $0.745 for the IPO. On its first day of trading the stock closed at $0.98, 32 percent above its IPO price, valuing Bumitama's
market capitalization Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders. Market capitalization is equal to the market price per common share multiplied by ...
at 1.7 billion Singapore dollars. Cornerstone investors for the IPO were Wilmar International, UOB Asset Management, Value Partners Hong Kong, Hwang Investment Management and Target Asset Management.


Management

# Lim Gunawan Hariyanto - Executive Chairman and Chief Executive Officer # Lim Christina Hariyanto - Executive Director # Sie Eddy Kurniawan - Chief Financial Officer # Roebbianto - Chief Operating Officer #Lim Sian Choo - Chief Sustainability Officer


References

{{Palm oil, state=expanded 1996 establishments in Indonesia Indonesian companies established in 1996 Agriculture companies established in 1996 Companies listed on the Singapore Exchange Palm oil companies of Indonesia Economy of Jakarta