Bumitama Agri recorded strong growth in its CPO business during the first half of 2026, with higher production, sales volumes and average selling prices strengthening the commodity’s contribution to company revenue.
PALMOILMAGAZINE, JAKARTA — Crude palm oil (CPO) remained the main growth driver for Bumitama Agri Ltd. in the first half of 2026, generating revenue of IDR 10.27 trillion, up 23% from the same period a year earlier.
According to Bumitama’s mid-year report, CPO accounted for approximately 85% of the company’s total revenue during the January–June 2026 period. The increase was supported by higher production, stronger sales volumes and an improvement in the average selling price of CPO.
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Bumitama produced 672,590 tonnes of CPO in the first half of 2026, representing an 11% increase from approximately 609,000 tonnes in the corresponding period of 2025.
Production growth accelerated in the second quarter, with CPO output reaching approximately 362,000 tonnes, up 17% from around 310,000 tonnes in the first quarter of 2026.
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CPO Sales Reach 696,000 Tonnes
On the marketing side, Bumitama’s CPO sales volume reached approximately 696,000 tonnes in the first half of 2026, up 21% from 574,000 tonnes recorded in the same period of 2025.
The higher sales volume was reflected in the company’s CPO revenue growth. Revenue from CPO stood at approximately IDR 8.32 trillion in the first half of 2025 before rising to IDR 10.27 trillion in the first six months of 2026.
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Higher average selling prices also supported the improvement. Bumitama’s average CPO selling price increased from approximately IDR 14.5 million per tonne in H1 2025 to IDR 14.7 million per tonne in H1 2026.
The combination of stronger sales volumes and higher prices further reinforced CPO’s position as Bumitama’s largest source of revenue.
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Higher FFB Output Supports CPO Production Growth
The increase in CPO production was supported by stronger fresh fruit bunch (FFB) output.
Bumitama’s internal FFB production reached 1.86 million tonnes, up 13% year-on-year. Internal productivity also improved by 16%, rising from 9.2 tonnes per hectare to 10.7 tonnes per hectare.
Overall, Bumitama harvested approximately 3 million tonnes of FFB during the first half of 2026, an increase of 10% from 2.73 million tonnes recorded in the same period a year earlier.
The company also reported an oil extraction rate (OER) of 22.5%, slightly higher than 22.4% in H1 2025, further supporting growth in CPO output.
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B50 Policy and Global Supply Factors Support Market Outlook
Entering the second half of 2026, Bumitama sees several factors that could continue to support the vegetable oil market.
One of the key drivers is expected to come from stronger domestic demand for palm oil following Indonesia’s implementation of the B50 biodiesel policy, which could increase palm oil absorption in the domestic market.
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At the same time, global vegetable oil markets face the potential for tighter supplies. Volatility in energy markets caused by supply disruptions and geopolitical developments could also influence commodity prices.
For Bumitama, the combination of higher productivity and potentially supportive market conditions provides a foundation for maintaining the performance of its CPO business through the end of 2026. (P2)
