PT Sampoerna Agro Tbk (SGRO) was established under the name of PT Selapan Jaya on 7 June 1993. The Company’s name was subsequently changed to PT Sampoerna Agro Tbk in 2007. PT Sampoerna Agro and its subsidiaries (collectively referred to as Sampoerna Agro or the Company) is a plantation company that strives to become an integrated and diversified plantation with sustainable long-term interests. The Company currently engages in the production of palm oil products, superior oil palm seeds, rubber, and sago. Palm oil and palm kernel constitute 96% of the Company’s total revenue in 2019.
For Sampoerna Agro, sustainability is articulated through green initiatives, including adhering to the highest criteria for sustainable palm oil development and other environmentally-friendly benchmarks. At the moment, Sampoerna Agro has obtained various certifications in palm oil sector such as the Roundtable on Sustainable Palm Oil (RSPO) and International Sustainability & Carbon Certification (ISCC) certificates. We have also complied with the local best practices under the Indonesian Sustainable Palm Oil (ISPO) certification.
Sampoerna Agro’s fast-growing palm seed business segment is supported by an agronomics research and development facilities covering a total of 1,172 ha in South Sumatra. PT Binasawit Makmur, a subsidiary of the Company, is engaged in seed research and seed germination activities. Since 1994, it has evolved into a broad-based agronomics research and development center. By end of 2019, the Company had produced 12 superior oil palm seed varieties, marketed under the brand names of DxP Sriwijaya and DxP Sriwijaya Semi Klon (semi-cloned seeds). These superior seeds are planted on the Company’s own estates and sold to external customers within Indonesia. The Company is committed to continuing its superior seed research and development efforts, in order to bring about greater innovations in the years to come.
The Company has eight POMs, of which five are situated in Sumatra and three in Kalimantan. The POMs in Sumatra have a total capacity to produce 380 tons of fresh fruit bunches (“FFB”) per hour, whereas the POMs in Kalimantan have a capacity to produce 135 tons of FFB per hour.
To pursuit its vision of becoming one of the leading agribusiness companies that is accountable in Indonesia, Sampoerna Agro attempts to strike a balanced mix between growth and sustainability that focuses on four basic fundamentals: people, planet, product, and profit. Along with the vision, The Company maintains its strategy of rapid growth through diversifying plantation portfolio into other crops that are able to produce higher value-added downstream products.
Diversification initiative into sago, was made through an acquisition of a 21,620 hectare land concession in Selat Panjang of Riau Province. The Company has started producing high quality sago starch under the brand name Prima Starch, which is distributed to domestic as well as international markets. Company's diversification is becoming increasingly widespread with an acquisition of rubber plantations by the year of 2012 which covers 100,000 hectares in West Kalimantan.