CORPORATE STRATEGIC - JAKARTA. PT Dharma Satya Nusantara Tbk (DSNG) through its subsidiary, PT Agro Pratama, has increased its share ownership in PT REA Kaltim Plantations (REA Kaltim) to 35%.
The share increase was carried out through a Share Subscription Agreement (SSA) that was agreed upon on March 8, 2024.
Previously, DSNG invested in REA Kaltim shares by 15% on May 16, 2016 through its subsidiaries, PT Swakarsa Sinarsentosa and PT Agro Pratama.
REA Kaltim is a company engaged in the palm oil industry, focusing on palm cultivation to the production of crude oil and palm kernels. Operating in East Kalimantan, REA Kaltim has a total area of about 35 thousand hectares with a Palm Oil Mill (PKS) facility reaching 240 tons per hour and two methane gas capture plants.
DSNG's Chief Financial Officer Jenti Widjaja said, with a 35% share ownership in REA Kaltim, it is expected that the palm oil business segment will continue to grow, especially increasing the company's profits in the future.
"In addition, it will also strengthen the partnership and collaboration between the two parties, including but not limited to the fields of agronomy, palm oil processing, rejuvenation of palm oil plantations and sustainability practices," he said in an official statement, Thursday (14/3).
Jenti also added, the increase in the company's share ownership in REA Kaltim will have a positive impact for both parties, especially sustainability practices because both DSNG and REA Holding (the parent company of REA Kaltim) are business actors engaged in the sustainable palm oil industry in Indonesia.
In 2023, REA Holding and DSNG each ranked 12th and 10th out of 100 producer companies, processors, and various trading companies including palm oil independently assessed by SPOTT (Sustainability Policy Transparency Toolkit) based on transparency to organizations, policies, and ESG implementation.
