Malaysia’s IOI Corp will finish planting oil palms on 60,000 hectares of its Indonesian land holdings in five years and will then seek“ green certification” for these estates, a top official said today.
IOI, Malaysia’s second largest listed planter, has come under fire from green groups who say it has destroyed rainforests and engaged in open burning to clear its Indonesian estates — an allegation the firm has strongly denied.
“We don’t plan to expand further into Indonesia but we will focus on planting and developing the areas,” IOI Group Executive Director Lee Yeo Chor told Reuters in an interview.
IOI currently has about 80,000 hectares of land in the Indonesian province of Kalimantan in Borneo Island after venturing into Indonesia in 2007.
Lee said the firm has allocated RM200 million this year for plantations to boost plantings and other expenditure as prices of the vegetable oil steadily grow.
“There is a strong upward trend for palm oil prices and this current level of 2,550 ringgit is very supportive,” Lee said.
“Supply has been affected since a year ago and we only expect a moderate increase in Malaysian output this year.
Since taking its property arm private, IOI has managed to get its long-delayed SIngapore development projects off the ground and facilitate funding requirements for land acquisitions.
Lee said preview sales of its Seascape Collection Residences in Singapore’s Sentosa Cove have been encouraging and expects the project to contribute positively to this year’s financial earnings. – Reuters
Source : Business Times
