Deal #3771

Land area

Intended size

21 000 ha

Size under contract (leased or purchased area)

[current] 14153.0 ha

Size in operation (production)

[2013] 8000.0 ha
[2020, current] 8755.0 ha

Comment on land area

Another source states 14153 ha. 8951 ha in Kwae and 5074ha at Okumaning. According to the company website, the Kwae estate has a total concession of 8,953 ha, of which approximately 5,205 ha are developed. The Okumaning estate has a total concession of 5200 ha, of which about 3,550 ha have been developed 8,060ha oil palm, 763ha rubber, 675ha conservation. The satellite image analysis done by JRC confirm the growth of the two crops as well as areas that are not used for commercial plantations.

Intention of investment

[current] Non-food agricultural commodities, Agriculture unspecified, Conservation

Comment on intention of investment

Oil palm and rubber. 8% of the concession is conservation area.

Nature of the deal

Lease

Negotiation status

[current] Concluded (Contract signed)

Comment on negotiation status

Okumaning Estate was acquired in 1991. Lease renewed in 2008.

Implementation status

[1995, current] In operation (production)

Comment on implementation status

Plantation started in 1975 as state-owned operation

Contract farming

Yes

On leased / purchased

Yes

On leased area/farmers/households

[2018, current] 348.0 ha

Not on leased / purchased (out-grower)

Yes

Not on leased area/farmers/households (out-grower)

[current] 13700.0 ha

Comment on contract farming

provides financial (soft loan to be repaid after 7 years) and technical support to 7,000 farmers, who cultivate a total of 13,700 hectares of oil palm.