Since commencing oil palm production in the 1980s, oil palm has evolved to become the Company’s primary commodity. In the past two years, the Company has accelerated the addition of new oil palm plantation area in its estates in East Kalimantan. After opening around 4,522 hectares new planted area last year, in 2013 Lonsum again added its plantation area with some 4,541 hectares new oil palm plantation area in East Kalimantan as well as South Sumatra and replanted around 365 hectares plantation area in North Sumatra. As of year-end, Lonsum had a total of 89,845 hectares oil palm plantation across its nucleus (Company-owned) estates in North Sumatra, South
Sumatra and East Kalimantan, of which 74,944 hectares comprised of mature crops. In addition, Lonsum has also access to about 32,000 hectares of plasma (smallholder) oil palm plantations in South Sumatra and East Kalimantan. Lonsum operates eleven palm oil mills, four in North Sumatra, six in South Sumatra and one in East Kalimantan with total annual processing capacity of 2,295,000 tons of FFB per annum.
Lonsum’s rubber plantation areas are located in North Sumatra, South Sumatra and South Sulawesi estates. During 2013, the Company replanted roughly 1,118 hectares of rubber plantation areas so that as of year-end, total planted area was 17,350 hectares, comprising of 12,587 hectares of mature plantation and 4,763 hectares of immature plantation areas. Lonsum has four rubber factories, with four crumb rubber production lines (processing capacity of 42,720 tons per annum) and three sheet rubber production lines (processing capacity of 11,100 tons per annum).
Cocoa and Tea
On top of oil palm and rubber, Lonsum also operates cocoa plantations in East Java, North Sulawesi and North Sumatra. The Company’s total cocoa plantation area was 2,539 hectares by end of 2013. To help reform Indonesia’s cocoa business and as part of its commitment to sustainable agriculture practices, Lonsum has become an active member of the Cocoa Sustainability Partnership (CSP) since 2012, a forum that is actively engaged in promoting sustainable cocoa development in Indonesia. In addition, Lonsum manages a 577 hectare tea plantation located in West Java.
Palm Oil Seeds
Besides fulfilling its internal needs, Lonsum’s advanced research and development facility in Bah Lias, North Sumatra (SumBio) also sells its high-yielding oil palm seeds to external parties. In 2013, SumBio sold around 15.8 million high quality seeds to external parties and the rest are used for its own plantation, and the balance was planted to nursery for sale as seedling.