PALMOILMAGAZINE, JAKARTA – PT Sawit Sumbermas Sarana Tbk (SSMS) has officially announced a cash dividend distribution of IDR 450 billion from its 2024 net profit of IDR 820 billion. While the payout is welcome news for investors, the move is part of a broader strategy to reinforce the company’s financial fundamentals and ensure sustainable long-term growth.
SSMS President Director, Jap Hartono, emphasized that this year’s dividend distribution signals not just financial recovery, but also the success of strategic decisions made two years prior. In 2023, SSMS executed a debt-to-equity swap to increase its stake in subsidiary PT Citra Borneo Utama (CBUT).
“That decision did impact our equity at the time, but it has proven to strengthen our financial position. On that solid foundation, we’re now able to reward shareholders again this year,” Jap stated, as quoted by Palmoilmagazine.com from Kontan (April 23, 2025).
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The company is allocating 54.91% of its net profit to shareholders—equivalent to IDR 47.23 per share—lower than the previous year’s 77.4% payout ratio. Jap explained that the reduced ratio is a deliberate move to maintain financial flexibility.
“A portion of our profit is being reserved for operational needs and future obligations. This ensures we’re prepared for global challenges and can accelerate business expansion,” he said.
Alongside maintaining liquidity, SSMS is setting ambitious operational targets, aiming for a 10% increase in production and around 20% growth in sales this year—driven by expectations of more stable global crude palm oil (CPO) prices.
“We anticipate that palm oil prices will stabilize, similar to 2023 conditions. This presents a strong opportunity for us to improve performance,” Jap explained.
In response to climate risks and a potential dry season in 2025, SSMS is implementing mitigation strategies. Optimizing its fertilization program is key to sustaining production during the expected mild drought.
With this combination of financial prudence and operational focus, SSMS aims to reinforce investor confidence and build a stronger foundation for future growth. “We remain committed to being a sustainable palm oil company that acts responsibly toward all stakeholders,” Jap concluded. (P2)
