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Supply Chain

Supply Chain

MKTR’s supply chain is designed as an integrated end-to-end value chain from upstream plantations to downstream processing and waste utilization, supported by reliable, safe, and environmentally responsible technology. This integration covers plantation operations, palm oil processing, and the utilization of by-products, reinforced by efficient transportation and distribution management. This approach ensures stable product availability at competitive selling prices while strengthening MKTR’s positioning in both domestic and export markets.

The Company’s operations are aligned with Indonesian Sustainable Palm Oil (ISPO) principles and are certified with ISO 9001:2015 and ISO 14001:2015. MKTR only markets CPO sourced from legal and certified suppliers, with all supply originating from the Company’s own plantations, partner smallholders, and other companies that comply with applicable regulations and sustainability principles.

Structurally, MKTR’s supply chain encompasses nucleus estates, plasma estates, and independent smallholders as suppliers of Fresh Fruit Bunches (FFB), which are then processed at mills owned by the Company and its subsidiaries (MMAL & KSO) into CPO and palm kernel. Solid waste in the form of empty fruit bunches (EFB) is further utilized by subsidiary PT Menthobi Hijau Lestari (MHL) to produce biomass fertilizer and biopellets, in line with the Company’s zero-waste and circular economy model.

To safeguard the availability of raw materials, approximately 62% of the FFB processed by the Company is sourced internally (nucleus and plasma), while around 38% comes from external parties, namely independent smallholders, cooperatives, and surrounding plantation companies. In 2024, MKTR partnered with 113 FFB suppliers in Central Kalimantan, consisting of 77 independent smallholders, 1 cooperative, 1 plantation company (CV), and 34 partnership estates.