JAKARTA. PT Astra Agro Lestari Tbk (AALI) is exploring the cattle breeding and fattening business in Kalimantan as a business diversification effort, following the fact that the price of crude palm oil (CPO) is sluggish since the end of last year.
Rudy Limardjo, Head of Investor Relations at AALI, said that at present, his party has owned cattle breeding facilities in Central Kalimantan, with a cage capacity of 40 thousand cows. His party will also expand the cattle fattening business line to East Kalimantan in the near future. "For fattening, it will expand to Central Kalimantan," said Limardjo on Tuesday (30/4) when met by idnfinancials.com.
Limardjo added that the expansion was only prioritized in the Kalimantan region. But it does not rule out the possibility that this business will also be developed in other regions. "We hope that in the future, not only Kalimantan, but we will also see the potential in Sumatra," said Limardjo.
For information, at the end of 2018, Limardjo said that CPO prices had dropped by 20% and made AALI's net profit fell by 89.5% to Rp 37.4 billion. (KR/AR)