Palm Oil Company and Mill in Medan, Indonesia

By going public, the Company is committed to continuously improve and maintain business continuity based on the principles of good corporate governance. Utilizing Management’s expertise and experience to improve the Company’s operations in the future, by clearly preparing the responsibilities of each of the Company’s operating units to improve the overall efficiency of the Company and the Company’s ability to quickly respond to the changing market conditions.

For the Company, running Good Corporate Governance (GCG) is not only limited to complying with the provisions of laws and regulations that apply in the State of the Republic of Indonesia. The implementation of GCG is the Company’s commitment to the vision and mission which acts as a foundation in building and creating a robust and sustainable system and corporate structure.

GCG also regulates relationships between various interested parties (stakeholders), especially between shareholders, the Board of Commissioners, and the Board of Directors to achieve Company goals. GCG also assures to the public that the Company has implemented sound business behaviors, not only profitable for business but also benefits the community and the environment.

After becoming a public Company, PT Mahkota Group Tbk will make GCG an important element for the Company in maintaining sustainable growth and also becoming a National palm oil factory Company. The Company is committed to be involved in driving Indonesia’s growth by contributing significantly to the Indonesian economy.

In regards to the implementation of the GCG Principles in the business activities of the Company, by the Securities Exchange Listing Regulations and OJK regulations, the Company has owned equipment such as Independent Commissioners, Independent Directors, Corporate Secretaries, and Audit Committees. The Company also has an Internal Audit Unit which functions to supervise the implementation of the policies set by the Company’s management and has established a Nomination and Remuneration Committee whose duty is to review and recommend the composition of the Company’s Board of Commissioners and Directors as well as competitive remuneration systems.

The increasingly fierce business competition requires the Company to always be swift in responding to challenges and winning the market competition. Therefore, PT Mahkota Group, Tbk seeks to create quality products that can compete in the market through continuous creativity and innovation. The Company’s business growth strategy is to utilize the competitive advantages it has, with the following main strategies:

• 1. Development of oil processing business palm oil
  

  The Company is carrying out the construction of Refinery and Kernel Crushing Plant that are used to process palm oil into cooking oil and derivative products.

• 2. Collaborative strategy with business partners
  

  The Company is very open to working with other parties. One of the examples is in utilizing the remaining waste from palm oil production and transforming it into renewable energy.

• 3. Opportunities for acquisition
  

  The Company will regularly review opportunities to acquire new land reserves and develop plantation businesses in areas that have soil characteristics that are suitable for planting, especially plantations close to the processing factories of subsidiaries and associated entities. The Company will continue to work to expand the land to achieve greater economic scale.

• 4. Increase efficiency
  

  The company continues to strive to maintain the efficiency of costs and productivity by implementing effective of costs and productivity by implementing effective and efficient operational techniques. Efforts are taken by routinely updating our Standard Operating Procedure (SOP)..

• 5. Improve the quality of Human Resources
  

  Human Resources are the Company&s main assets and play a very important role in determining the success of the Company&’s business activities. To achieve this mission, the Company is aware of the unconditional need for efforts that can support the development and improvement of the quality of human resources by routinely participating in various training and socialization activities. This way, optimal human resource utilization will be achieved.

Indonesia is one of the biggest countries that produce palm oil in the world. Several palm oil companies in Indonesia hold very large palm oil plantations, up to 16.2 million acres. Which spread in some regions such as Sumatra, Kalimantan, and Papua.

Palm oil production in Indonesia is massive and is sufficient to fulfill the public’s demands and needs for cooking oil. Not only to meet the local market but also the global market’s need for crude palm oil (CPO).

Palm Oil Plantation in Indonesia

Palm oil is a type of fruit from palm oil trees that can only grow in tropical areas. Palm oil trees need sufficient sunlight and high precipitation to produce palm oil optimally.

The largest palm oil plantation in Indonesia is located on Sumatera Island, Riau to be precise. One of the Indonesian palm oil companies that owns a palm oil plantation in Riau is PT. Mahkota Group, Tbk. Our plantations are also located in North Sumatera and Palembang.

PT. Mahkota Group, Tbk is an Indonesian palm oil company that operates a number of palm oil processing factories in North Sumatra, Palembang and Riau. Our aspiration is to become a leading global plantation company with a mission to realize the potential of palm oil processing.

Palm oil comes from plants and is not a genetically engineered product so it is suitable for vegans. Processed palm oil products can also be an alternative substitute for milk fat products that are more economical and environmentally friendly. All of our processed palm oil products are sourced from high-quality raw materials which are produced responsibly. We continue to maintain the best and sustainable quality for all products, both for consumers and food producers

• 1. Frying Oil
  

  We are present as the largest palm oil company in Indonesia which produces various palm oil products. The main product of palm oil, namely cooking oil, is the consumer product most needed by the Indonesian people.
  Palm oil companies in Indonesia such as PT. Mahkota Group, Tbk receives fresh fruit bunches (FFB) as raw material for palm oil. From the best and highest quality fruit, crude palm oil is produced.
  Crude palm oil (CPO) is then processed into raw material for cooking oil. Palm oil from Indonesian palm oil companies is a vegetable oil product that has a number of advantages such as low price, low cholesterol, high carotene content, and is versatile.
  Palm oil can be used for daily needs, from food to cosmetics. In various food industries, palm oil is widely used in wet cakes, pastries, biscuits and so on. In the beauty industry, palm oil is one of the basic ingredients for lipstick.

• 2. Margarine
  

  One of the products produced from the palm oil industry is margarine. Margarine products are very suitable for use as an ingredient for making sweet bread, biscuits, rolls, pastries, filled cream and cream for decorating cakes.

  Margarine is a healthier substitute for butter. With margarine products that are trans-free and meet food health standards. Producing palm oil derivative products that have more nutrients, such as antioxidants that support the immune system.

• 3. Shortening
  

  Another product from palm oil processing is shortening which can meet the needs of food businesses, such as making cakes, biscuits, snacks and other food frying applications. A flagship product made in accordance with nutritional standards.

• 4. Special Vegetable Fats
  

  Special vegetable fat is one of the derivative products from palm oil mills in Indonesia which uses palm kernel kernel as the basic ingredient. This product is the right choice for consumers engaged in the candy, chocolate and ice cream manufacturing industry.