Bumitama Agri

Bumitama is part of the Harita Group, which was founded in 1915 by Lim Tju King. His son, Lim Hariyanto Wijaya Sarwono (President and Chair of Harita Group), took over and developed a timber business. He built a small factory and began manufacturing plywood in 1983.

With the help of his two sons, Lim Gunawan Hariyanto (CEO of Harita Group) and Gunardi Hariyanto Lim (Deputy CEO of Harita Group), the Group entered the coal mining industry through the 1985 Kelian Equatorial Mining gold project (a joint venture, Rio Tinto owned 90% and the Harita Group 10%) and the 1988 Lanna Harita coal project.

In 1996, Bumitama was established by the Harita Group with its acquisition of 17,500 hectares in Central Kalimantan and the company began its through acquisitions, and by 2007 Bumitama had 50,000 hectares of planted area. As of March 2012, just before the IPO, Bumitama had 118,000 hectares of planted area. For comparison, Singapore (where Bumitama is publicly traded) covers roughly 69,300 hectares (693 km2).

In 2007, IOI Corporation bought 33% of PT Bumitama Gunajaya Agro as part of its plan for strategic investment in Indonesia. Bumitama would benefit from IOI's technical expertise and management support, since IOI has operations throughout the palm oil supply chain and markets in more than 65 countries.

Business

Land bank and plantations

Bumitama's primary business is cultivating oil palm trees, harvesting fresh fruit bunches (FFB) and processing it into crude palm oil, and the company owns roughly 230,000 hectares of land in Central and West Kalimantan. Of this, 187,000 hectares have been planted on and nearly 40,000 hectares are dedicated to conservation. In 2020 Bumitama's plantations produced 3,314,128 metric tons of FFB, and had a FFB yield of 19 metric tons per hectare. The company generally transports its harvested FFB to the CPO mills within 24 hours to ensure maximum freshness and yield.

CPO Mills

Bumitama owns 14 CPO mills in Kalimantan and Riau, with a combined FFB processing capacity of 5,850,000 tons per year. In 2019 the company's CPO mills had an average oil-extraction rate (extracted CPO per unit of FFB) of 23%, one of the highest in the industry.

Initial public offering

On 12 April 2012, Bumitama launched its initial public offering on the Singapore Stock Exchange. HSBC and DBS Bank were bookrunners for the IPO.

A total of 327,324,000 shares (297,570,000 shares and an additional 29,754,000 in greenshoe) were issued during the listing. During the book building phase the IPO was reportedly 31 times oversubscribed, the highest by any IPO in Singapore since 2007.