Thursday, September 21, 2023

Astra Agro's Net Profit Soars 294.6 pct in 2020

Jayanty Nada Shofa
April 14, 2021 | 7:18 pm
SHARE
A worker shows oil palms at a plantation in Topoyo village, Mamuju, Sulawesi, March 25, 2017. (Antara Foto/Akbar Tado)
A worker shows oil palms at a plantation in Topoyo village, Mamuju, Sulawesi, March 25, 2017. (Antara Foto/Akbar Tado)

Jakarta. Palm oil producer Astra Agro Lestari booked a net profit of a whopping Rp 833.1 billion (around $57 million) in the pandemic-struck 2020, the company announced in a recent virtual public expose.

According to Astra Agro director Mario Casimirus Surung Gultom, the company's net profit soared 294.6 percent from Rp 211.1 billion in 2019.

"Our net revenue saw a 7.8 percent jump to Rp 18.8 trillion last year thanks to the 27.8 percent increase in our average CPO price," Mario told the online conference on Wednesday.

Their annual report revealed the average CPO price in the international market rose by 26.3 percent from $556 per ton in 2019 to $715 per ton in 2020. As a result, Astra Agro sold their CPO at Rp 8,545 per kilogram on average, in comparison to Rp 6,689 per kilogram in 2019.

Advertisement

"On the other hand, sales volume for CPO and its derivatives dropped by 13.6 percent to 2.03 million tons due to the decline in CPO production," Mario said.

Astra Agro's production of fresh fruit bunches dropped by 7.7 percent to 4.6 million tons in 2020. Their CPO production also fell 13.6 percent to 1.4 million tons. Their kernel production also suffered a 12.6 percent decline to around 303,000 tons last year.

Also, Mario revealed Astra Agro has budgeted up to Rp 1.2 trillion for this year's capital expenditure. "Capex will mostly focus on our replanting programs and treatment for immature plants."

The company has committed to replanting 2.5 percent of its plantation annually. They will also work on developing seeds of a much higher productivity.

At the conference, Astra Agro president director Santosa called for all parties, including fellow producers, to support the mandatory use of B30 —a diesel fuel made of 30 percent palm oil biofuel.

"Even though the export levy [on CPO] can be relatively high, this is for our common good. This mutual commitment [to B30] also enables us to have a very good price on the market side," Santosa said.

Late last year, the government introduced a progressive export levy on CPO and other palm oil products to support the B30 program. Under the new regulation, CPO levies range from $55 to $255 per metric ton, depending on the reference price.

Tags: Keywords:
SHARE

POPULAR READS


News 54 minutes ago

Jokowi Breaks Ground for First-Ever Hotel in Nusantara

The hotel is being developed by a consortium of prominent Indonesian business magnates, spearheaded by Sugianto Kusuma aka Aguan.
Business 1 hours ago

How to Empower Tanah Abang Traders in Unfair Competition with Online Shops

An analyst called for greater government oversight to prevent social media platforms from running online marketplaces in Indonesia.
News 2 hours ago

Indonesia Pledges to Protect Marine Biodiversity in High Seas

The Biodiversity Beyond National Jurisdiction (BBNJ) Treaty mandates signatories to conserve marine biodiversity in the high seas.
Special Updates 2 hours ago

BP, Pertamina Ink MoU on Potential Carbon Injection in Tangguh

This freshly inked memorandum of understanding (MoU) is also related to the development of blue ammonia in Teluk Bituni.
Business 5 hours ago

IDX Set to Launch Carbon Trading Platform

The IDX claims that the system is fully ready and expects to see transactions taking place during the launch date on Sept. 26.
COPYRIGHT © 2023 JAKARTA GLOBE. ALL RIGHTS RESERVED