Indonesia Country Report 2012

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Discovery Reports

JAW sows for bigger rubber, oil palm harvest

Discovery Reports

PUBLISHED : Friday, 02 November, 2012, 10:28am
UPDATED : Thursday, 23 May, 2013, 4:18pm

Jaya Agra Wattie (JAW) has sown more than 90 years into Indonesia's agriculture sector - and is set to reap bigger harvests as it expands its plantations and pursues new markets.

JAW has grown its land since 1921 to about 68,000 hectares primed for rubber and oil palm plantations. Its rubber factory produces ribbed smoked sheets in RSS 1 and RSS 2 grades, and standard Indonesian rubber graded SIR 3L, SIR 5, SIR 10 and SIR 20. Its palm oil mill produces crude palm oil and palm kernel. All products undergo quality control and comply with international and domestic standards such as those of the Indonesian Sustainable Palm Oil Foundation.

"Our long history, experience and skilled people set us apart in the industry," says president and director Harijadi Soedarjo. "These strengths enable us to grow sustainably."

JAW reinforced this commitment when it went public last year. The move is expected to accelerate its acquisition of more plantations, targeting a total land area of 100,000 hectares to be equally divided between rubber and palm oil.

About 25 per cent of JAW's rubber products are exported through traders, with the mainland being the biggest market followed by the United States and Russia. JAW eyes South Korea, India and Europe as next destinations.

"We have been exporting to China for nearly 10 years. We believe Indonesia is ready to meet the market's rising demand," Soedarjo says. JAW is open to joint venture opportunities, and has already been approached by overseas companies looking to invest in its local expertise and stable supply.

"Our aim is not to become the biggest in plantations, but to be the industry leader, backed by our experience and hard work," Soedarjo says. "We want to keep expanding and planting - and we welcome partners and investors who want to flourish with us."

Jaya Agra Wattie