Sampoerna Family Sells Palm Oil Unit to South Korea's Posco International

Indonesia's Sampoerna Family Sells Palm Oil Unit to Posco International's AGPA In a significant deal, the Sampoerna family has agreed to sell its 65.7% stake in palm oil unit PT Sampoerna Agro to AGPA Pte, a subsidiary of South Korea's Posco International Corp. The sale was announced in a statement by Sampoerna Agro on Thursday, although the financial terms of the deal remain undisclosed. According to the statement, the sale marks a significant shift in the ownership structure of PT Sampoerna Agro, which has been a key player in Indonesia's palm oil industry. The company's operations span across several provinces in Indonesia, with a total land bank of over 100,000 hectares and a production capacity of 200,000 metric tons of palm oil per year. The palm oil industry has been a major contributor to Indonesia's economy, with the country accounting for nearly 40% of global palm oil production. The industry has also been a significant source of revenue for the country, with palm oil exports generating billions of dollars in foreign exchange earnings each year. The sale of PT Sampoerna Agro to AGPA Pte is seen as a strategic move by the Sampoerna family to exit the palm oil business and focus on other investments. The Sampoerna family has a long history of involvement in the Indonesian business scene, with interests in tobacco, food, and other sectors. The palm oil industry has faced increasing scrutiny in recent years due to concerns over deforestation and environmental degradation. The industry has also been impacted by fluctuations in global demand and prices, which have affected the profitability of palm oil producers. The acquisition of PT Sampoerna Agro by AGPA Pte is expected to have a significant impact on the palm oil industry in Indonesia. As a subsidiary of Posco International Corp., AGPA Pte is likely to bring in new investment and technology to the company, which could improve its operational efficiency and competitiveness. The deal is also seen as a vote of confidence in the palm oil industry by foreign investors, who are increasingly looking to invest in the sector. The acquisition is likely to attract more foreign investment into the industry, which could lead to further growth and development. In conclusion, the sale of PT Sampoerna Agro to AGPA Pte is a significant development in the palm oil industry in Indonesia. The deal is expected to have a lasting impact on the industry, and could lead to further growth and investment in the sector.