InfoSAWIT, JAKARTA – PT Jhonlin Agro Raya Tbk (JARR) – a palm oil plantation company successfully got agreement from its stakeholders to get mergers with the affiliated company – PT Jhonlin Agro Lestari (JAL). It was decided after having extraordinary shareholder meetings on Friday, 26 November 2023.

Director of JARR, Indra Irawan mentioned that many shareholders agreed with the merger plan between JARR and JAL which was proposed in the meeting. It was decided by some strategic reasons, such as, to increase assets and get efficient bureaucracy.

“The merger would be increasing the assets of JARR and simplify bureaucracy process and the operational costs would be efficient and controlled,” Indra said, as quoted from Kontan.co.id.

He also mentioned that the plantation productivity in the company would increase because the plantations in JAL are more productive that would contribute to bigger results.

After the merger, JARR would get more cultivation rights to be 27 thousand hectares, combining the cultivation rights from JAL that laid on about 10 thousand hectares. The planting on cultivation rights would be about 22 thousand hectares. By having these, it is hoped that JARR would get fresh fruit bunch production about 50 thousand tons in 2023.

Indra also mentioned that there would be bigger numbers of FFB production after the merger. JARR targeted FFB production would be reaching 249 thousand tons in 2024 or almost twice more than the previous target that reached 70 thousand tons before planning merger with JAL.

PT Jhonlin Agro Raya Tbk would also reinforce its position in palm oil industries and optimize the business output by having synergy with affiliated company. (T2)