PT Astra Agro Lestari Tbk (the Company) is a company formed by merging several companies that developed the plantation industry in Indonesia more than 30 years ago. Starting from cassava plantations, then developing rubber plantations, until 1984, oil palm cultivation began in Riau Province. In 1988, the Company officially became an industry engaged in oil palm plantations and continued to develop into one of the oil palm plantation companies excellent by having good management. By 2021, the total area managed by the Company reaches 286,727 hectares spread across the islands of Sumatra, Kalimantan, and Sulawesi.
Since its establishment as a company managing oil palm plantations, the Company has built partnerships with the community through nucleus-plasma partnerships and Income Generating Activity (IGA) through the cultivation of oil palm and non-oil palm plantations. This collaboration ensures that the presence of oil palm plantations managed by the Company also provides excellent benefits for the surrounding community.
The Company’s close relationship with the community, of course, seeks to realize its mission in carrying out corporate social responsibility through CSR (Corporate Social Responsibility) activities which refer to 4 pillars, namely health, education, economy, and environment, so that it is expected to be able to contribute to the development and welfare of the nation.
Along with the growth of the Company’s business, in 1997, the Company became a public company, conducting an Initial Public Offering (IPO) on the Indonesia Stock Exchange (at that time, the Jakarta Stock Exchange and Surabaya Stock Exchange). The Company’s public share ownership currently reaches 20.32% of the total 1.925 billion shares outstanding. A substantial share price position reflects high investor confidence in the Company. In the trading ending on December 31, 2021, the Company’s share price with the trading code “AALI” was closed at Rp 9.500.
To expand the scope of business, the Company also develops downstream industry. The Company has operated a palm oil processing plant (refinery) in North Mamuju Regency, West Sulawesi Province, and Dumai, Riau Province. Processed palm oil products in the form of Olein, Stearin, and PFAD are made to meet the demands of the export market, including those from China, Malaysia, the Philippines, and South Korea. The Company has also operated an NPK fertilizer mixing plant in Donggala Regency, Central Sulawesi Province, since 2016 and Bumiharjo, Central Kalimantan Province, since 2017.
The Company’s efforts in developing its business into the downstream industry as palm oil processing through its subsidiaries, namely PT Tanjung Sarana Lestari, in 2014, located in West Sulawesi Province. As part of a subsidiary, PT Tanjung Bina Lestari, in 2017, located in West Sulawesi, to process PKO (Palm Kernel Oil). Not only domestically, the Company also has offices marketing in Singapore under the name Astra-KLK Pte. Ltd is a joint venture between the Company and Kuala Lumpur Kepong Plantation Holdings Sdn, Bhd (KLK Pte Ltd).
Facing challenges in the future, the Company focuses its business strategy on efforts to increase productivity, improve efficiency in all lines, as well as diversify its business in prospective sectors that are connected to its core business in the field of oil palm plantations.