The Jakarta Post
Publicly listed palm oil company Sawit Sumbermas Sarana plans to allocate 30 percent of its crude palm oil (CPO) production next year to exports in an effort to boost revenue.
President director Vallauthan Subraminam said the company would likely export its CPO to a number of Asian countries, including Bangladesh, India, Pakistan and some in the Middle East.
“The export is expected to increase our revenue in the future. The [production] allocation will be 70 percent for local [markets] and 30 percent for exports,” Subraminam said on the sidelines of the company’s extraordinary general meeting in Jakarta on Wednesday.
(Read also: CPO output to fall to 30m tons: Gapki)
CPO prices on Wednesday increased by 4.5 percent to US$815 per ton from $780 the previous day, Indonesian Palm Oil Producers Association data showed.
In the first half of the year, Sawit Sumbermas Sarana posted Rp 1.2 trillion in revenue, a 11 percent decrease from Rp 1.3 trillion in the corresponding period last year. Its profit also saw a 44 percent drop to Rp 194.8 billion from Rp 351.3 billion. Subraminam said that the company expected to see a profit margin before tax of 48 percent next year.
In addition, the company’s palm production is expected to rise by 24 tons per hectare next year, a 9 percent increase from the projected productivity this year of 22 tons per hectare.
So far, the company’s planted land reached about 70,940 hectares from the total land bank of more than 100,000 ha. (wnd/hwa)
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