JAKARTA – PT Sinar Mas Agro Resources and Technology Tbk (SMAR) spends IDR 36 billion to extend the lease period of a palm oil refinery facility in Belawan, North Sumatra, to another five years.
In the information disclosure quoted Wednesday (6/7), it is revealed that said palm oil refinery plant belongs to PT Ivo Mas Tunggal (IMT), which is located on Belmera Baru II Street, Belawan, Medan. The signing of this lease agreement took place last week (1/7), effectively extending the lease period from July 1, 2022, to June 30, 2027.
The annual lease of this factory in Belawan costs SMAR IDR 7.2 billion per year. Cumulatively, the leasing cost for the next five years will clock up to IDR 36 billion in total. The lease includes an area of 42,355 m2, the building itself, and oil refinery machineries.
SMAR and IMT are affiliated due to the same shareholder, PT Purimas Sasmita, and are positioned under the same parent company, Golden Agri Resources Ltd, a publicly listed company in Singapore Exchange (SGX).
This lease extension is intended to support the downstream sector of SMAR’s palm plantation in North Sumatra, which consequentially easing up the access to export market from Belawan Port. (LK/ZH)