PALM is considering becoming an investment company

15 December 2021 14:27

JAKARTA. The plantation company PT Provident Agro Tbk (PALM) is in the process of fulfilling the legal requirement regarding its plan to transform its business into an investment company.

Lim Na Lie, Corporate Secretary of PALM, said that the controlling shareholders, Saratoga Group and PT Provident Capital Indonesia, have yet to announce any plans after selling 100% of its palm plantation subsidiary unit, PT Mutiara Agam.

However, Lim Na Lie admitted that the company is currently undergoing processes to meet the legal terms and conditions regarding PALM’s vision to change its business activity. “Currently, the review is centered around the business transformation into an investment company,” she revealed.

PALM had recently sold 100% of its subsidiary that focuses on palm plantation, PT Mutiara Agam (MAG), for IDR 502.5 billion. This decision is said to be a great step as the cultivation rights of MAG would soon be over in December 2026, whereas the extension would require the company to follow more legal steps. Moreover, 42% of the primary cultivated land of MAG carries old trees that call for replantation in the near future. (AM/ZH)

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