Belgian agro-industrial firm Sipef has agreed to buy 95% of Indonesian oil palm plantation operator PT Dendy Marker Indah Lestari (DMIL), located in Musi Rawas Utara, South Sumatra.
DMIL owns 6,562ha of cleared/planted oil palm, with a potential to expand to 9,000ha. The palm fruit is processed at a 25 tonnes/hour extraction mill and the operations are Roundtable on Sustainable Palm Oil (RSPO)-certified.
Sipef said the acquisition from PT Agro Investama Gemilang (AIG), which is part of the Indonesian real estate development Lippo group, was expected to contribute to the successful expansion of Sipef in the Musi Rawas area.
As at the end of 2016, the company had already secured more than 11,000ha and cleared or planted more than 6,000ha in this area.
“The central location of the DMIL site should enable Sipef to optimise the management and the development of three earlier acquired concessions.”
Sipef also said it had received clearance to buy an additional 47.71% in PT Agro Muko from PT Austindo Nusantara Jaya TBK and MP Evans Group Plc.
“With the acquisition of an additional interest up to 95% in our main operations in the Bengkulu area and the potential acquisition of 95% of an established business in Musi Rawas, Sipef continues to expand in sustainable RSPO certified palm oil operations in Indonesia, both in existing operations and new developments,” it said.