Driving the Market: The Biggest Palm Oil Companies in Southeast Asia

Driving the Market: The Biggest Palm Oil Companies in Southeast Asia
Photo by KabarBUMN

The palm oil industry has become a significant global economic force in recent years, particularly in Southeast Asia. The region is home to some of the largest palm oil companies, which have played a central role in the growth of the industry. 

These leading palm oil companies in Southeast Asia have large plantations in countries such as Indonesia and Malaysia, which are the world's largest palm oil producers, accounting for approximately 84% of total global production. Other countries such as Nigeria, Thailand and Colombia are also major producers. The global palm oil market was valued at $67.3 billion in 2022 and is expected to grow at a CAGR of 5.1% from 2023 to 2030. 

The increasing global demand for palm oil reflects the importance of the industry to the global economy. This article discusses the largest palm oil companies in Southeast Asia. The data used is from Yahoo Finance reports.

8. Golden Agri-Resource Ltd (E5H.SI)

The company has a diversified portfolio of 30 consumer brands and operates in 12 countries. Headquartered in Singapore, the company's global network spans more than 70 countries around the world, including the United States, India, Europe, China and the Middle East. With 538,000 hectares of oil palm plantations and 49 mills, Golden Agri-Resources Ltd. is a major player in the palm oil industry. As of March 2, 2023, the market capitalization of Golden Agri-Resources Ltd (E5H.SI) was $2.59 billion.

7. Posco International Corporation (047050.KS)

The company is a trading company based in South Korea. Its business portfolio includes energy, steel and agriculture. Posco International Corporation operates large oil palm plantations in Indonesia, where it extracts crude palm oil, which is then sold domestically or exported. The company's palm oil plantation in Papua, Indonesia, covers 34,000 hectares and has a maximum annual production capacity of 200,000 metric tons. As of March 2, 2023, Posco International Corporation's (047050.KS) market capitalization was $2.96 billion.

6. PT Indofood Sukses Makmur Tbk (INDF.JK)

This is an Indonesian company engaged in food and agribusiness. The company's plantation division manages 250,615 hectares of oil palm plantations throughout Indonesia, while its edible oils and fats division operates five refineries with an annual processing capacity of 1.7 million tons of crude palm oil. Approximately 81% of the edible oil produced is sold in Indonesia, while the remainder is exported to countries in Asia, Africa, the Middle East and Australia. As of 2 March 2023, the market capitalization of PT Indofood Sukses Makmur Tbk (INDF.JK) reached $3.61 billion. 

5. Kuala Lumpur Kepong Bhd (2445.KL)

This is a Malaysian company focused on oil palm and rubber seedling plantations. It owns about 300,000 hectares of land in Malaysia, Indonesia and Liberia. Palm oil is the main crop grown on 97% of the company's land, while rubber is grown on the remaining 3%. As of March 2, 2023, Kuala Lumpur Kepong Bhd's (2445.KL) market capitalization was $4.99 billion.

4. IOI Corp Bhd (1961.KL)

This Malaysian company operates in three main business segments, namely refining, oleochemicals and specialty oils and fats. IOI Corp Bhd owns two palm oil processing plants in Malaysia and operates four oleochemical plants in Malaysia and Germany. Its products are exported to more than 70 countries worldwide.

3. Sime Darby Plantation Berhad (OTC:SDNF)

The company is a Malaysia-based global integrated plantation company with operations in more than 90 countries. It produces an impressive 2.15 million metric tons of sustainable palm oil each year. With more than 80,000 employees worldwide, Sime Darby Plantation Berhad is a major player in the industry. As of 2 March 2023, the market capitalization of Sime Darby Plantation Berhad (OTC: SDPNF) was $6.57 billion. 

2. Musim Mas Group

With an estimated market value of $10 billion, Musim Mas Group is an Indonesian-based palm oil company with operations in 13 countries around the world. In 2012, the group became the first in the palm oil industry to achieve 100% RSPO certification for all of its plantations in Indonesia. 

In addition, Musim Mas also became the first in the palm oil industry to be verified by the Palm Oil Innovation Group (POIG) in 2019. In Indonesia, the company has facilities for growing and planting oil palm trees, plantations for producing fresh fruit bunches, and mills for processing fresh fruit bunches (FFB) into crude palm oil and palm kernels.

1. Wilmar International Limited (F34.SI)

As of March 2, 2023, the market capitalization of Wilmar International Limited (F34.SI) was $18.28 billion. Wilmar International Limited has more than 500 mills and an established distribution network in China, India, Indonesia and approximately 50 other countries and territories. As one of the largest oil palm plantation owners in the world today, Wilmar International Limited has a total plantation area of approximately 279,000 hectares in Indonesia, Malaysia, Uganda, Ivory Coast, Ghana and Nigeria.

Tags: palm oil

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