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Papua❗️

September 19th, 2019
​⏰ 1 minute read
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Our young growing TSP #palmoil #plantatiom in #kerom #papua #jayapura view from the mill ? ??#BWPT #EHP

A post shared by Eagle High Plantations IR (@ehplantationsir) on Sep 17, 2019 at 1:04am PDT

5 years ago
This week I went to Jayapura, Papua, to take some visitors to our TSP plantation. They’re interested to possibly buy our oil there. The last time I went to visit TSP was 2014, 5 years ago. That trip was to include Papua in our investor presentation for the rights issue roadshow. What’s happened since ?‬

Then
At that time, TSP was still very young as it was planted in 2011 & 2012. Only 2 years old, but full of promise. The land is beautiful: it’s a 2 hour drive from Jayapura, next to the mountains of the PNG border. The soil is grade one, meaning the yields could be higher than 30 tons. It’s big 11,000 hectares & flat so perfect for mechanization. I could tell investors were impressed.

5 years
What happened over the next 5 years? Of course the story would take time to play out. For example much of TSP would be immature & as it came to maturity, the yields would be small. With no mill yet, we wouldn’t be producing any oil. We did sell the fruit & then we finally finished the mill late last year. Oil selling is just starting. So for 5 years, investors didn’t see any benefits. ‬

Now
How about now? First the new mill is impressive. It’s huge & the current 45 ton capacity can be expanded to 90. The plantation is maturing, the trees look great & together with the new mill the local management team expect oil output to now rise by almost 70%! Transport infrastructure to Papua is starting to improve & our first potential FOB buyer came to visit this week. It’s exciting times for TSP.‬

Match
The story of TSP is perfectly matching with our overall story for EHP & BWPT. After 5 years when things haven’t looked great with lower yields & losses, suddenly everything is coming together very fast. That’s because everything was always there in the background but masked by our young age, accounting & flat prices. Follow our daily progress to profit here (we are almost there!).‬

​Sebastian
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PT Eagle High Plantations Tbk
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Mega Kuningan
Jakarta 12950
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