JAKARTA, presidentpost.com – Cirro Capital Limited, a Malaysian-based investment and financial services company has sealed yet another plantation acquisition, this time in the Riau Islands of Indonesia. This is its second acquisition in the last 2 months. Utilizing approximately USD 2.2 million, Cirro acquired 49% equity stake of a plantation that covers almost 1,000 hectares, Sunday (10/15).
The palm oil industry is one of the few industries in Indonesia to show continual robust growth over the past 2 decades. This growth is reflected by the country’s rapidly rising production and export figures, as well as the land estate dedicated to the production of this commodity. By end 2016, Indonesia accounted for 54% of the global supply of palm oil.
Over the course of the past 2 years, the prices of palm oil have fluctuated between USD 558 to USD 789 per metric tonne, with an overall upward trend that has been maintained since 2015. This is largely due to the increase in demand for palm oil from Chinese and Middle Eastern regions, all committed to the infrastructural development of the Belt and Road initiative launched back in 2013.
Palm oil, a core component of biodiesel that can be used to power trains and trucks, form the backbone of renewable energy that is used to power the re-construction of the Ancient Silk Road Economic Belt.
Nicholas Chesson, CEO of Cirro Capital said, “We believe the Belt and Road initiative to be one of the great generators of demand in the next century. Over the past 4 years, billions have been poured into the region, and in the years to come, many times more. Biodiesel derived from palm oil, is the only rapidly renewable source of energy other than fossil fuels that is available now, and will remain as such for the near future. Thus, we expect our investments in the productions facilities of palm oil to continue to yield very positive returns for at least the next 5 years.”
Cirro Capital is an investment and financial services company targeting potential investment related to the Belt and Road Initiative. (PRN/TPP)