The Indonesian government has delayed plans for an initial public offering (IPO) of palm oil producer PalmCo, Reuters quoted an official from the firm’s parent company, state agricultural group Perkebunan Nusantara (PTPN or Persero), as saying.

Last July, Indonesia’s ministry for state-owned enterprises – which oversees the company, said that PalmCo would launch an IPO to be used to expand refining capacity, the 10 January report said.

The IPO was expected to raise about US$500M, sources told Reuters.

PTPN corporate secretary Bambang Agustian told Reuters the IPO would be delayed due to market uncertainty but gave no further details on the timing.

Meanwhile, PalmCo aimed to start construction of its biodiesel plant this year, which is expected to have a capacity of 443,000 tonnes/year by 2026, PalmCo CEO Jatmiko Krisna Santosa said.

“We have chosen the technology and we are near a decision for the contractor. It's almost ready,” Santosa said, without providing details on the cost of the project.

PalmCo also expected to commission a new cooking oil plant this year and was planning to add two more cooking oil production facilities in the next two years, he added.