Distribution Network

Distribution Network

Currently, the Company and its subsidiaries market and distribute its products in domestic market only, amongst others to West Kalimantan, South Kalimantan, Palembang and Medan. FFB, crude palm oil and palm kernel are sold to traders and palm oil processors, and usually the said sales are done with agreed procedure, long term contract or spot basis, and the delivery time negotiated upon sales.

Currently, all production of the Company and its subsidiaries used Franco system, where shipping costs are covered by sender and product distribution is done by external transporter. Every product that does not meet the agreed standard criteria will be charged until certain time limit and if it went over time, then it will be returned.

Until end of 2015, the three main customers of the Company and its subsidiaries are:

  • PT Golden Hope Nusantara (48.6%)
  • PT Maskapai Perkebunan LWI (16.9%)
  • PT Agro Palindo Sakti (13.8%)
  • PT Sinar Mas Agro Resources & Technology Tbk (10,6%)

To date, predominantly BRI sold both crude palm oil and palm kernel, whilst Mitra Jaya Agro Palm, Charindo Palma Oetama, Airlangga Sawit Jaya, and Persada Alam Hijau sold crude palm oil only. Meanwhile, Bailangu Capital lnvestment is not yet in production stage.