Plantations
Annual crop growth 11% in a decade to 2023
The Group’s plantations are spread across five Indonesian provinces: North Sumatra, South Sumatra, Aceh, Bangka-Belitung and East Kalimantan. Our oldest plantations are in North Sumatra and Aceh with newer projects developed in East Kalimantan, Bangka-Belitung and South Sumatra since 2005.
All the plantations are held on long-term renewable leases. All agricultural land in Indonesia is owned by the government and leased out; this is the same for Indonesian citizens and companies as it is for foreign companies such as M.P. Evans. We have held our oldest estates on this basis since the 1960’s when this legal framework was introduced.
The extent of new development and replanting in our older estates means our palms are on average still relatively young. This is important as the yield from a new planting increases very steeply in the early years of its life before reaching a peak when the palm is about ten years old. The young age of its palms means the Group can anticipate very strongly increasing crops well into the 2020s as its palms mature. The Group’s average annual crop growth in the last decade has been 11%.
Indonesia requires at least 20% of any new plantation development to be given over to smallholders.
We implement this in our development by fostering scheme smallholder co-operatives, which own at least 20% of any land we have developed since this requirement was introduced in 2007. The co-operative contracts the Group to plant, manage and harvest its land, and M.P. Evans purchases the fruit, which is the same quality as its own, at a price regulated by the provincial Indonesian government. This fruit is processed in our mills and is sold as our crude palm oil.
All crop harvested by the Group or its associated smallholder co-operative schemes is traceable to a specific field.
| 31 December 2023 | Mature (Ha) | Immature (Ha) | Total planted (Ha) |
|---|---|---|---|
SubsidiariesKota Bangun Bangka Pangkatan group Bumi Mas Musi Rawas Simpang Kiri Nusantara Total |
13,844 6,151 6,427 7,278 5,537 4,019 2,225 45,481 |
443 – 539 215 1,925 486 505 4,113 |
14,287 6,151 6,966 7,493 7,462 4,505 2,730 49,594 |
AssociatesKerasaan |
1,994 |
328 |
2,322 |
MemorandumGroup share of subsidiaries’ land |
43,275 |
3,969 |
47,244 |
Scheme smallholdersKota Bangun Bangka Pangkatan group Bumi Mas Musi Rawas Simpang Kiri Nusantara Total |
5,652 3,881 383 1,351 2,537 61 588 14,453 |
35 – 708 87 332 193 60 |
5,687 3,881 1,091 1,438 2,869 254 648 15,868 |
Scheme smallholder co-operatives
Smallholder co-operative schemes attached to the Group's projects have been developed, operated and certified by us.