Technical due diligence for castor bean production in Indonesia

The Indonesian group Djarum operates in banking, tourism, telecommunications and other large-scale markets. Hartono Plantation Indonesia (HPI), its agricultural subsidiary registered in 2008 and international key player in palm oil production, wanted to diversify into castor beans. As such, they required the involvement of an independent consultancy firm to assess their project.

The challenge

Hartono Plantation Indonesia was about to enter into negotiations with a major buyer of castor oil. With a Business Plan based on a theoretical model from its seed provider, the client required impartial external advice to confirm or not its production strategy.

FGM results

With unique experience of the production and the value chain of castor beans, FGM identified over-estimated assumptions and was able to propose specific farming recommendations to reach the economic crushing viability.

Project assessment preparation

FGM optimized the site mission, by preparing the investigation prior to going on-site. This included:

  • Overview of HPI’s business operation,
  • Review of natural conditions and resources,
  • Preliminary review of the site’s infrastructure potential,
  • Review of the site’s location and accessibility.

On-site assessment

  • Interview of the executive team (CEO, COO, Project Manager) and the local staff,
  • Assessment of the possibility to secure the land for castor bean production,
  • Evaluation of the production potential and reliability of the out-grower scheme,
  • Estimation of castor bean’s economic interest for small holders: visit to production sites, interviews of the stakeholders, available staff and economic data collection,
  • Appraisal of the research and development of the company dedicated to the multiplication of local castor bean varieties (ISG),
  • Review of the crushing plant potential and visit to the facility under construction.

Field production of castor beans


FGM findings and recommendations were compiled into a detailed report including the following:

  • Summary of the interviews conducted with the main project actors,
  • Identification of the key success factors and main challenges to overcome,
  • Business Plan update.

The final report was prepared at the FGM HQ and was delivered to the client for further thorough data analysis and investigation.

Provided services in the frame of this project

Interesting reading relevant to this project



Number of experts

2 experts




1 Mission


7000 ha



Assigned competencies

  • Agro-economist
  • Castor oil senior expert

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