PALMOILMAGAZINE, JAKARTA – The Indonesian palm oil industry is expected to experience significant growth in 2025, driven by a 7.2% increase in crude palm oil (CPO) prices to MYR 4,500 per ton and a 3.9% rise in production following the end of the El Niño phenomenon in May 2024. Amid this dynamic landscape of challenges and opportunities, PT Cisadane Sawit Raya Tbk (CSRA) is ready to accelerate its expansion with an aggressive and sustainable growth strategy.
CSRA has allocated a capital expenditure (Capex) budget of IDR 100 billion for 2025. Of this amount, 50% will be dedicated to completing the construction of its third palm oil mill (PMKS) in Banyuasin, scheduled to start operations in July 2025. The remaining 50% will be used for compensation payments for plant damages (GRTT) and expanding plantation areas in South Sumatra.
CSRA’s Director of Finance & Strategic Development, Seman Sendjaja, stated that the company is also exploring opportunities for land acquisitions, prioritizing areas around its existing plantations to improve operational efficiency. “We continue to apply inorganic expansion strategies that enable better operational integration,” said Seman in a statement quoted by Palmoilmagazine.com, Wednesday (26/3/2025).
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In its efforts to strengthen sustainability, CSRA is further enhancing its Environmental, Social, and Governance (ESG) initiatives, focusing on Health, Education, Economy, and Local Wisdom (HEEL). The company received Indonesian Sustainable Palm Oil (ISPO) certification for PT SSG and PT ABI plantations in South Sumatra on March 19, 2025. Additionally, CSRA was awarded the Silver category in Corporate Emission Transparency and Emission Reduction for 2024 on May 29, 2024, in recognition of its environmental efforts.
Seman emphasized that the company will continue to enhance its gross margin through investments in mills and mechanization to strengthen competitiveness. “We prioritize generating strong cash flows through strategic development efforts, including operational expansion, increased production capacity, and the adoption of new technologies,” he concluded. (P2)
