PALMOILMAGAZINE, SINGAPORE – Indofood Agri Resources Ltd (IndoAgri) reported higher crude palm oil (CPO) production in the 2025 financial year (FY2025), while outlining strategies to strengthen operational performance and expand processing capacity in 2026.
According to an official statement received by Palmoilmagazine.com on Sunday (3/3/2026), the company’s total fresh fruit bunch (FFB) production reached 3.725 million metric tons (MT) in FY2025, representing a 2% increase compared with 3.645 million MT in FY2024.
Management explained that the growth was primarily supported by higher FFB purchases from external suppliers, although it was partially offset by lower production from nucleus estates.
The increase in processed FFB also lifted the company’s CPO output to 733,000 MT, up 4% year-on-year from 706,000 MT in the previous year. Meanwhile, palm kernel (PK) production remained relatively stable at around 166,000 MT.
In terms of efficiency, the CPO extraction rate (OER) improved slightly to 20.7%, compared with 20.6% in FY2024, while the palm kernel extraction rate edged down to 4.7%.
Planted Area Reaches Nearly 281,000 Hectares
As of December 31, 2025, IndoAgri’s total planted area stood at 280,975 hectares. Oil palm plantations accounted for the largest share, covering 237,437 hectares.
In addition to palm oil, the company also manages several other commodities in Indonesia. These include rubber plantations covering 16,203 hectares, sugarcane plantations spanning 13,719 hectares, and other crops such as timber, cocoa, and tea across 13,616 hectares.
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Outside Indonesia, IndoAgri also operates sugarcane plantations in Brazil covering 133,141 hectares.
As an integrated agribusiness company listed on the Singapore Exchange (SGX-ST), IndoAgri is part of the business group of PT Indofood Sukses Makmur Tbk and First Pacific Company Limited.
2026 Strategy: Efficiency and Downstream Expansion
Looking ahead to 2026, IndoAgri plans to strengthen plantation operations through cost management and agronomic innovation aimed at boosting productivity.
The company stated it will continue implementing targeted action plans, including improving operational yields, strengthening cost control, and prioritizing capital investment in strategic areas.
In the edible oils and fats segment, IndoAgri is also moving forward with the expansion of its Tanjung Priok refinery, which is targeted for completion in the fourth quarter of 2025.
The expansion involves the addition of a third production line, which will increase the refinery’s processing capacity by up to 450,000 MT per year.
Management also emphasized efforts to increase sales volumes through competitive pricing, stronger distribution networks, and consistent product availability, supporting growth in both consumer and industrial markets.
With stronger production performance, stable productivity, and expanded downstream capacity, IndoAgri remains confident it can enhance its competitiveness amid the evolving global palm oil industry in 2026. (P2)
