KL Kepong to expand landbank

KUALA Lumpur Kepong Bhd (KLK) is expanding its oil palm landbank in Indonesia by another 7,177ha. Currently, the group's oil palm planted area in Malaysia and Indonesia totals 170,000ha.

Its unit KL-Kepong Plantation Holdings Sdn Bhd is buying 95 per cent of PT. Bumi Makmur Sejahtera Jaya (PT BMS) from Tjong Hasan Agus Salim and Tjhang Ardy Fadrinata.

Since KLK has engaged a high conservation value study on the land and is carrying out a legal and financial due diligence, the deal is likely to materialise in the first quarter of 2012.

PT BMS now holds two Certificates of Izin Lokasi for land measuring 2,336.62ha in Desa Mentawak and Desa Air Kelik, Kecamatan Kepala Kampit, Belitung Timur, and another 4,840ha in Desa Lilangan, Desa Limbongan, Desa Jangkar Asam and Desa Gantung, Kecamatan Gantung, Belitung Timur.

These land are adjacent to KLK Group's existing plantations in Belitung.

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