PALMOILMAGAZINE, JAKARTA – PTPN III (Persero) Subholding Plantation, through PTPN IV PalmCo, has officially entered into a long-term partnership with Unilever to supply sustainable Palm Kernel Oil (PKO). The agreement was formalized with the signing of a contract between the two companies in London last week.
Jatmiko Santosa, President Director of PTPN IV PalmCo, stated that this collaboration marks a new milestone in the nearly decade-long business relationship between PalmCo and Unilever. “Through this long-term partnership, we are committed to increasing the production of sustainable Palm Kernel Oil for all our customers,” Jatmiko said in an official statement in Jakarta, as reported by Palmoilmagazine.com.
As part of the agreement, Unilever will invest in developing two Kernel Crushing Plants (KCPs) to expand the production capacity of sustainable PKO at PTPN IV PalmCo. The investment also includes a Long-Term Supply Contract (LTSC) spanning five to ten years, ensuring PalmCo supplies Unilever with certified sustainable PKO annually.
Also Read:
Jatmiko added that the establishment of these new plants will enhance production efficiency and support the company’s profitability. “Partnerships are key to building a more efficient and sustainable palm oil supply chain, while also involving all stakeholders, including smallholder farmers,” he explained.
Meanwhile, Unilever’s Chief Supply Chain Officer, Willem Uijen, emphasized that this collaboration underscores Unilever’s commitment to developing a sustainable palm oil supply chain that benefits both the environment and communities. “We are honored to sign this partnership, as it reflects our commitment to creating a transparent and responsible palm oil supply chain,” Uijen stated.
Over the past decade, Unilever has invested more than $360 million to establish world-class oleochemical facilities in Indonesia, supporting the production of sustainable palm oil derivatives. “This agreement enables Unilever to continue utilizing these facilities to produce products aligned with our sustainability policies,” he added.
Denaldy Mulino Mauna, Deputy President Director of PTPN III (Persero), welcomed the partnership, highlighting that it not only brings business benefits but also advances the national palm oil industry’s transition toward sustainability.
PTPN Group and PalmCo have engaged in multiple collaborations with both domestic and international partners. Currently, PalmCo is partnering with Japan in renewable energy through the Biogas Cofiring project utilizing Expanded Granular Sludgebed (EGSB) technology. Additionally, PalmCo is working with Renikola Malaysia on a Compressed Biomethane Gas project involving 30 power plants worth $240 million. (P2)
