Indonesian Palm Oil News (IPO News) — IOI Corporation Berhad’s investment footprint in Indonesia continues to form an important part of the Malaysian group’s plantation business. With 21,377 hectares of oil palm planted area in Indonesia—most of which is already mature—IOI maintains a significant presence in the country’s palm oil industry.
The name IOI Group is well established in the global palm oil industry. Headquartered in Malaysia, IOI Corporation Berhad has developed into a major diversified group with businesses spanning oil palm plantations, palm oil processing, resource-based manufacturing and renewable energy.
For Indonesia’s palm oil industry, IOI’s presence is particularly noteworthy. According to the company’s official data as of 30 June 2025, IOI had a total of 167,883 hectares of oil palm planted area, of which 21,377 hectares, or approximately 13%, were located in Indonesia.
Of IOI’s Indonesian planted area, 19,550 hectares were mature, while another 1,827 hectares were immature. This means approximately 91% of IOI’s Indonesian oil palm area had already reached the productive stage.
These figures demonstrate that Indonesia is not merely an additional investment destination for IOI, but an important component of the group’s plantation portfolio outside Malaysia.
Indonesia: A Strategic Part of IOI’s Plantation Business
As of 30 June 2025, IOI reported a total planted area of 172,459 hectares, comprising approximately 167,883 hectares of oil palm, 3,616 hectares of coconut and around 960 hectares of other crops.
Malaysia remains IOI’s largest plantation base, with 146,506 hectares of oil palm planted area. Indonesia, meanwhile, contributes 21,377 hectares.
The maturity profile of IOI’s Indonesian plantations is also significant. With 19,550 hectares already classified as mature, approximately 91% of its Indonesian oil palm area was producing or approaching full productive capacity, while 1,827 hectares remained immature.
In plantation operations, the proportion of mature and immature areas is an important indicator of a company’s production profile. A high proportion of mature plantations generally provides a stronger production base for fresh fruit bunches and palm oil.
Strong Presence in West Kalimantan
IOI’s Indonesian plantation operations are primarily associated with West Kalimantan, particularly Ketapang Regency.
One of the key entities within IOI’s Indonesian plantation structure is PT Kalimantan Prima Agro Mandiri (PT KPAM). IOI’s corporate reporting identifies PT KPAM as an oil palm cultivation company in which the group holds an effective interest of 95%.
IOI’s Indonesian plantation structure also includes PT Bumi Sawit Sejahtera, PT Berkat Nabati Sejahtera, PT Sukses Karya Sawit and PT Ketapang Sawit Lestari.
This demonstrates that IOI’s Indonesian presence is not based on a single operating company, but on a broader plantation structure involving several corporate entities.
Ketapang itself is one of the important palm oil producing regions in West Kalimantan. Various IOI and RSPO documents have linked the group’s plantation activities and development plans to the region.
The Roundtable on Sustainable Palm Oil (RSPO) has also documented a new planting proposal involving PT Kalimantan Prima Agro Mandiri in Sukaramai Village, Kendawangan and Manis Mata Districts, Ketapang Regency, West Kalimantan. The proposal was part of the RSPO’s new planting assessment and public consultation process.
An Investment Built Over Nearly Two Decades
IOI’s presence in Indonesia is not a recent development. The group’s investment history dates back to around 2008, when IOI expanded its Indonesian plantation interests through Oleander Capital Resources Pte Ltd.
IOI’s historical corporate reports linked the transaction to several Indonesian plantation companies, including PT Ketapang Sawit Lestari, PT Bumi Sawit Sejahtera, PT Kalimantan Prima Agro Mandiri, PT Berkat Nabati Sejahtera and PT Sukses Karya Sawit.
At the time, the transaction was associated with an estimated 52,704 hectares of HGU-certified land.
Over the years, the ownership structure and plantation portfolio have evolved, resulting in the Indonesian operations that form part of IOI’s plantation business today.
The long investment history highlights that IOI’s Indonesian operations are part of a long-term plantation strategy, rather than a short-term expansion initiative.
Strong Group Performance
The scale of IOI’s plantation business is also reflected in the group’s overall financial performance.
For financial year 2025, IOI recorded revenue of approximately RM11.33 billion, compared with RM9.60 billion in the previous year. Profit before interest and tax (PBIT) reached approximately RM1.70 billion, while net profit stood at around RM1.54 billion.
During the same financial year, IOI recorded approximately 2.84 million tonnes of fresh fruit bunches (FFB) production. The group’s palm oil mills produced approximately 616,307 tonnes of crude palm oil (CPO), with an oil extraction rate of 21.33%.
It is important to note that these production figures represent IOI Group as a whole and are not specific to its Indonesian operations. The company’s publicly available data does not provide a complete breakdown of FFB and CPO production by country.
Nevertheless, with 21,377 hectares of oil palm planted area in Indonesia—and approximately 19,550 hectares already mature—Indonesia remains an important part of IOI’s upstream plantation portfolio.
Sustainability Remains a Key Priority
As one of the major global players in the palm oil industry, IOI also operates in an environment where sustainability, land governance, environmental protection and community relations are increasingly important.
IOI has stated its commitment to sustainability through a range of policies and initiatives, including conservation, emissions reduction, restoration and nature-based solutions. The group has also established targets supporting its broader ambition toward carbon neutrality.
In Indonesia, sustainability has also been an important part of IOI’s development journey. The group has addressed several historical issues associated with its Ketapang operations, including community-related matters.
IOI’s official grievance updates indicate that an issue involving the community of Sukaramai Village in Ketapang concerning land compensation has been recorded as “Has Been Addressed.”
For IOI, maintaining responsible and sustainable plantation operations in Indonesia is increasingly important—not only from a compliance perspective, but also to preserve access to international markets that demand increasingly transparent and responsible palm oil supply chains.
Indonesia Remains Important to IOI
With 21,377 hectares of oil palm planted area in Indonesia, approximately 91% of which is already mature, and with several plantation companies operating in West Kalimantan, IOI Corporation Berhad has established a meaningful footprint within Indonesia’s palm oil industry.
While the Indonesian plantation area is smaller than IOI’s plantation base in Malaysia, the group’s nearly two decades of investment demonstrate that Indonesia has become an integral part of its long-term plantation strategy.
Going forward, plantation productivity, replanting, potential area development, downstream integration, sustainability certification and relations with local communities will remain important factors in determining the future development of IOI’s Indonesian operations.
According to Indonesian Palm Oil News (IPO NEWS), IOI’s journey in Indonesia deserves continued attention, particularly because the Malaysian group has established a substantial plantation and corporate presence in West Kalimantan.
Combining long-standing plantation experience, a predominantly mature Indonesian planted area and a growing focus on sustainability, IOI Group remains an important name in both Indonesia’s and the global palm oil landscape.
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