POSCO International strengthens its palm oil business with the launch of PT Prime Agri Resources

South Korea’s POSCO International has completed the integration of Indonesian palm oil producer Sampoerna Agro, acquired last year, and unveiled the company’s new identity under the name PT Prime Agri Resources (PT.PAR). The launch ceremony in Jakarta marked an important milestone in the company’s strategy to expand its agribusiness operations across Southeast Asia.

Through an investment of approximately $855 million made during 2025–2026, POSCO International gained control of 128,000 hectares of plantations in Sumatra and Kalimantan. The acquisition also provided access to one of Indonesia’s leading palm seed businesses, along with its research and development capabilities.

Following the integration, PT.PAR will serve as the core production hub and the main center for seed development within POSCO International’s palm oil operations. The company is moving beyond a plantation-focused model toward a fully integrated value chain that includes seed development, cultivation, crude palm oil production, refining, and biofuel feedstock supply.

For the agricultural sector, the deal further strengthens Indonesia’s position as one of the world’s largest palm oil producers. POSCO International’s total plantation area in the country now reaches 154,000 hectares, while its refining joint venture with GS Caltex in Balikpapan has an annual processing capacity of 500,000 tons.

The company expects the expanded production base and newly acquired seed development capabilities to more than double operating profit from its palm oil business this year. POSCO International views PT.PAR as a key platform for expanding its global food, biomaterials, and renewable energy feedstock business.

Tags: Posco, Indonesia, palm oil