InfoSAWIT, KUALA LUMPUR – Malaysian plantation company AEP Plantations has signed a sale and purchase agreement to acquire PT Pinago Utama Tbk, marking a significant expansion move that will strengthen its plantation footprint and production base in Indonesia.

Pinago operates approximately 15,400 hectares of planted oil palm estates in South Sumatra, along with 3,500 hectares of rubber plantations, supported by integrated processing infrastructure including a palm oil mill with a capacity of 120 tons per hour.

According to Marcus Chan, Pinago’s mature plantation assets are expected to contribute immediately to group operations.

The acquisition is projected to expand AEP’s total planted oil palm area by around 23 percent, significantly increasing production capacity while strengthening exposure to established, income-generating plantation assets.

AEP said the transaction forms part of a broader capital deployment strategy aimed at channeling surplus cash into productive plantation assets with solid operational infrastructure and strong earnings potential.

For Southeast Asia’s palm oil sector, the acquisition underscores growing investor interest in Indonesian plantation assets—particularly mature estates with downstream processing capacity—while reinforcing South Sumatra’s strategic importance on the regional palm investment map. (T2)