Indonesia’s Tiga Pilar Plans $175 Million Palm Oil Expansion

PT Tiga Pilar Sejahtera Food, an Indonesian producer of dried noodles, may spend $175 million to plant oil palm trees and buy a plantation company in Sumatra to tap growing demand for the commodity.

Tiga Pilar will plant 15,000 hectares to 16,000 hectares (37,000 acres to 39,500 acres) of land it owns next year at a cost of as much as $85 million, Chief Financial Officer Sjambiri Lioe said. An agreement to buy a plantation company for about $90 million is expected to be completed in February, he said.