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Astra Agro pessimistic about CPO production in 2016
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Astra Agro Lestari president director Widya Wiryawan (right), accompanied by the company's finance director Rudy Chen, talks to journalists at a press conference in Jakarta on Aug. 8. (JP/Ivany Atina Arbi)
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lantation firm Astra Agro Lestari forecasts a 10 percent decrease in crude palm oil (CPO) production in 2016 to 1.57 million tons as the El Nino weather phenomenon continues to negatively affect CPO production.
The company’s president director Widya Wiryawan said the company's CPO production had plunged by 20.7 percent to 670,000 tons during the first half of this year, compared to 845,000 tons in the same period of last year.
"Our production in 2016 will fall because it has decreased by 20 percent during the first six months of this year. It's kind of hard to increase production throughout the year," Widya told journalists in Jakarta on Tuesday.
He added that production in the second half of 2016 would be better compared to the first half.
Along with a decrease in production from January to June 2016, the company booked a 12.2 percent decline in revenues to Rp 6.34 trillion (US$481.8 million) -- from Rp 7.23 trillion in the same period of last year.
The company’s net profits in the first six months of 2016, however, rose by 78 percent to Rp 792 billion due to the appreciation of the rupiah against the US dollar. (vny/ags)
