PALMOILMAGAZINE, JAKARTA – PT Sampoerna Agro Tbk (SGRO) remains committed to its palm oil replanting program in 2024, despite facing challenges. Head of Investor Relations, Stefanus Darmagiri, stated that the company has been actively carrying out the program over the past few years.
In the first half of 2024, SGRO successfully replanted approximately 4,772 hectares across both its core and plasma plantations, supported by the use of superior seeds. The company hopes this initiative will boost productivity in the plasma plantations.
“We aim to replant a minimum of 10,000 hectares in our core and plasma plantations this year,” Stefanus said, as quoted by Palmoilmagazine.com from Kontan on Monday, September 30, 2024.
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Financially, SGRO allocated around IDR 235 billion in capital expenditure, with 55% directed towards fixed assets and the remainder for plantation activities. Looking ahead, the company plans to budget between IDR 400 billion and IDR 700 billion for capital expenditure in 2024.
“By the end of the first semester of 2024, we had allocated about 34% to 59% of the planned capital expenditure for the year,” Stefanus added.
SGRO projected that the 2024 fresh fruit bunch (FFB) would be decreasing about 8% to the previous year production. It may happen for the continuous El Nino phenomenon that would have something to do with the plantation production namely in Sumatera in July and August 2024. The impacts in Sumatera could be worse than those in Kalimantan.
“The impacts of El Niño in Sumatera could be worse than those in Kalimantan,” Stefanus said. That is why SGRO predicted FFB production from the main plantations could be deceasing about 5% to 8% in 2024 compared to the 2023 production.
“We hoped the FFB production in the semester II of 2024 would be better than it in the first semester because the FFB peak production is usually taking place by the late of the third quarter and the early days of the fourth quarter,” Stefanus said. (P2)