JAKARTA – PT Unilever Indonesia Tbk (UNVR) has entered into a long-term partnership with PTPN IV PalmCo to strengthen its supply chain for Palm Kernel Oil (PKO). The two parties signed a collaboration agreement in London, UK, last week.

Willem Uijen, Chief Supply Chain Officer at UNVR, emphasised that this partnership reflects the company’s ongoing efforts to build a more transparent, efficient palm oil supply system with a positive impact.

“This collaboration allows UNVR to continue to leverage existing facilities to produce products in line with our policies on sustainability and social welfare,” said Willem in a statement on Monday (17/2).

As part of the partnership, UNVR is investing in the construction of two Kernel Crushing Plants (KCP) at PalmCo, under a Long Term Supply Contract (LTSC) with a duration of 5 to 10 years.

This contract also ensures the sustainable supply of PKO from PalmCo to Unilever in accordance with the principles of Forest Stewardship Performance (PHL).

“The addition of these two plants will expand the production capacity for sustainable palm kernel oil and enhance the company’s efficiency in meeting global demand,” said Jatmiko Santosa, President Director of PTPN IV PalmCo.

This collaboration follows UNVR’s announcement of slower financial performance for Full Year (FY) 2024. As previously reported by IDNFinancials.com, UNVR’s revenue in 2024 fell by 8.99% year-on-year (yoy) to IDR 35.14 trillion. Meanwhile, its net profit also dropped by 29.83% yoy to IDR 3.36 trillion. (DK/KR/ZH)