- PT Perkebunan Nusantara V

Company Overview
PT Perkebunan Nusantara V (Persero) is a state-owned company (BUMN), was established on 14 February 1996 as the consolidation result of development areas of PTP II, PTP IV and PTP V. The legal foundation of the company has been determined pursuant to Government Regulation No. 10 year of 1996. The Company's Articles of Association lately has been changed by drafting of Notarial Deed No. 01/2002 dated October 1,2002 by Sri Rahayu Hadi Prasetyo, Graduate at Law and then approved by the decree of minister Justice of Republic Indonesia No.C-20923.HT.01.04.TH.2002 dated October 28, 2002. The company's operation was effectively commenced on April 9, 1996 with its Head office in Pekanbaru, Riau.

Estates
Our total area under palm oil cultivation is 64,278 hectares, and rubber is 13,391 hectares. Furthermore, we also have developed Plasma Plantation under PIR-Trans Scheme with total area is 74,526 hectares, consisting of 56,665 hectares palm oil and 17,861 hectares of Rubber.

Factory
In 2002 PTP Nusantara V was able to produce 372,184 tons of Crude Palm Oil and 79,338 tons of Palm Kernel Oil through its 12 Palm Oil Mills with total installed capacity of 550 tons of FFB per hour. Oil Palm products obtained from its 57,343.21 hectares of nucleus estates and 56,665.00 hectares of smallholders estates.

During 2002, this commodity yielded the second largest contribution to the profits of PT Perkebunan Nusantara V, with the earned on sale of Rp 70.319 million come from 9.928 tons of dry rubber processed. From its estates in Bukit Selasih, Binio and Sei Lindai, the company maintained the production capabilities to fulfill the market demand in time supported by 3 units of Crumb Rubber Plants in Bukit Selasih (40 tons per day), Binio (20 tons per day), and Sei Lindai (34 tons per day). In addition, for processing harvested latex into Rubber Smoked Sheet (RSS) and Crumb Rubber (SIR) there were 2 units Rubber Smoked Sheet (RSS) Plants in Air Molek and Sei Lindai estates, each with 12 and 8 tons capacity per day.

Caring for Community
With the support of its existing units and estate operations, we have also established partnerships with Cooperative (KUD) through the Primary Credit Cooperative to its Member (KKPA) scheme.
We have been consistently active in the development and management of hospitals in the local areas in order to improve the health and well-being of the public and employees.

Commitment to Environment
Being an eco-efficient-effective company has been our obsession. We are using ISO 9000 - ISO 14000, and ISO 18000 approaches in managing the company. The certificates will be pursued in 2001. PTP Nusantara V is committed to ensure that every activity conducted as part of its operation is environmentally sound by using cleaner technology process to keep the natural resources capable of regeneration. Our concern regarding environmental issues will facilitate the effort to improve the quality of the environment, which in the long term will sustain the growth of our business.

Human Resources
Our human resources are ready to compete to achieve growth and development in dedication to the goal of improving the company's contribution to state revenues. Nowadays the total employee those we have is about 16,130 employees.

Acknowledging that our employee are our greatest asset, our human resource policy is directed at continuing staff improvement and skill development. Continuously, many programs are conducted regularly to encourage employee attendance at Seminar and Training Schemer local and international.
We aim to develop professionalism to enhance their capabilities to cope with future global challenge.

Future Outlook
We have prepared ourselves for the challenges of both present and future. All areas of our operations have come under close security in order to build improved efficiency into the company's activities. To overcome present difficulties and constrains, we will adjust and bring our operations into line with the corporate philosophy. The 21st century will draw PT Perkebunan Nusantara V and its entire management team into the arena of global competition. In the view of the current performance, our plan, as well as the enforcement and business development, and for the future, is strongly optimistic of holding our own in the global market.

Management Information System
The implementation of information technology in the management system has been carried out since 2000. The company has built both intranet and Internet web site, Local Area Network (LAN) wiring up at the head office, network supporting hardware, customized the payroll application program and also developed integrated software based on information technology system. The infrastructure is also prepared to be able to accommodate the information access that covers all of organization activities reaching up to remote areas.

In 2002 PTPN V had built network system to overcome the constraint of telecommunication network between the Head Office and the estates/ mills by using broadband technology based satellite communication system. There were six estates and one mill installed and connected as the pilot project. The estates/ mill could communicate via e-mail, videoconference and VoIP (Voice over Internet Protocol). This satellite telecommunication infrastructure can also overcome the problem of data delivering process to be up to date when the data is written and sent as the real figure in a huge number. PTPN V applies the SPDK NET program for anticipating the lateness in reporting and facilitating the management in making strategic decision. Another system to accommodate the business activity such as E-commerce will also be applied in the future.