PT Astra Agro Lestari Tbk or Astra Agro (the “Company”) established in 1988 engaged in oil palm plantations sector and other business activities. The Company has become a public company by being listed on the Indonesia Stock Exchange (IDX) in 1997. The Company is a subsidiary of PT Astra International Tbk (“Astra”), one of the largest and leading business groups in Indonesia. To date, Astra owns 79.68% of the company’s shares with 20.32% of the shares owned by the public.
To maintain the business sustainability, the Company consistently conducts plant rejuvenation to maintain the average age of the plants. Currently recorded at 287,044 hectares spread across the islands of Sumatra, Kalimantan, and Sulawesi. In this area, 214,815 hectares are nucleus plantations while 72,229 hectares are plasma plantations. The Company also expanded its business into the downstream palm oil industry by establishing a palm oil processing plant through its subsidiary PT Tanjung Sarana Lestari (TSL) in 2014 located in West Sulawesi Province.
The Company also established Palm Kernel Oil (PKO) processing through its subsidiary PT Tanjung Bina Lestari in 2017 located in West Sulawesi. In addition, the Company has a marketing office in Singapore named Astra-KLK Pte. Ltd which is a joint venture between the Company and Kuala Lumpur Kepong Plantation Holdings Sdn, Bhd.
Astra Agro continues to innovate by building NPK fertilizer mixing plants. The operation of the Company’s NPK fertilizer blending plant is run through its subsidiaries PT Cipta Agro Nusantara in 2016 located in Central Sulawesi and PT Bhadra Cemerlang in 2017 located in Central Kalimantan. In addition, the Company also develops processed palm oil products in the form of olein, stearin, and PFAD to meet export market demand from China and the Philippines. Starting in 2016, the Company has also operated a fertilizer blending plant in Donggala Regency, Central Sulawesi Province.
Realizing the Company’s mission to become a company that contributes to the development and welfare of the nation, the Company sets sustainability aspects as the Company’s strategy contained in Astra Agro Sustainability Aspirations which are summarized in the Triple-P Roadmap Strategy, namely Portfolio, People, and Public Contribution. In line with the Public Contribution Roadmap commitment, the Company carries out Corporate Social Responsibility (CSR) which consists of 4 pillars, namely health, education, economy, and environment.
Being a company that always coexists with the nature, the Company strives to realize a sustainable company by meeting the standards of sustainable oil palm plantation development and other criteria regarding environmentally friendly activities. Astra Agro became one of the first companies to obtain the Indonesian Sustainable Palm Oil (ISPO) certificate in 2012 and continues to grow as an effort to fulfill the best plantation management practices for the surrounding environment.
Facing the future challenges, the Company will continue to implement and develop business strategies in improving productivity and efficiency as well as diversifying prospective business lines related to the main palm oil business.