PALMOILMAGAZINE, JAKARTA – Considering the weather conditions over the past six months, it appears that PT Cisadane Sawit Raya Tbk (CSRA) may not achieve its earlier stated goal of a 10% annual production increase. This is despite earlier predictions of profitable progress in the third quarter of this year.
Seman Sendjaja, Director of Finance and Strategic Development CSRA said that CSRA did proactive thing to prepare El Nino, planned water management, and anticipated the fire in every plantation of the company.
“In this case the company implements worst – case scenario – strategies while hoping to get the best output,” he said, as in the official statement to Palmoilmagazine.com, Tuesday (31/10/2023).
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Seman also mentioned, the company is focusing to develop plantations in South Sumatera. Investment program in association with plantation expansion in the province would sustainably run and can be seen in the past one year. The plantations of the company in District of Banyuasin got wider from 2.989,8 hectares to be 3.422,8 hectares by the late of June 2023 year on year (yoy).
Besides the developed plantations, the production from the province escalated fast from 29.211 tons to be 39.637 tons per June 2023 yoy. The company got many investments to escalate plantation production which is to improve internal paths of the plantations, developing good housings for the workers and staffs.
As the main commodity, CPO has something to do with supply and demand globally. CPO average selling price increased highly since the early of 2020 to March 2022. It hit the highest level (of price) in history. But CPO now gets cheaper to its economic price though there is possibility to get more expensive again in the second semester this year because of supply chain issue and El Nino.
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In the second semester, the company’s strategy focused on increasing yield from each plantation to secure level of production internally, implement price strategies. The target is about to confirm sustainability of business. The company keeps maintaining precautionary principles and reinforce risk management.
Concerning the economic condition that also has something to do with CPO price, the company remains notice the market fluctuation, keeps continuing technology development by having harvest mechanism, continue Indonesian Sustainable Palm Oil certification process to every plantation which has no certificate yet. ISPO certification is on progress in the plantations of PT SSG and PT ABI where they operate in South Sumatera Province. (T2)