Postpone Harvesting for Quality, PTPN IV Coffee Business Still Profitable in Early 2026

DOK PT Perkebunan Nusantara (PTPN) IV PalmCo

JAKARTA - Climate anomalies characterized by high rainfall in early 2026 forced plantation managers to adjust the production rhythm. However, this condition does not hinder the financial performance of the coffee segment of PT Perkebunan Nusantara (PTPN) IV PalmCo to continue to record positive results.

This PTPN III Sub Holding (Persero) recorded a pre-tax profit from coffee commodities of IDR 3.43 billion in the first quarter of 2026. This achievement was achieved amid the management's decision to postpone the harvest to maintain the quality of coffee beans.

PTPN IV PalmCo President Director Jatmiko K. Santosa said the improved performance was mainly supported by a significant sales surge at the beginning of the year.

"Sales have increased quite a lot. At the same time, we are still maintaining operational cash flow to remain healthy," said Jatmiko in a written statement, Thursday, April 9.

Company data shows that net sales of coffee have almost doubled year-on-year. In the first quarter of 2025, sales were recorded at Rp. 10.94 billion, while in the same period this year it increased to Rp. 21.78 billion.

However, the increase in sales was not entirely followed by a surge in operating profit. EBITDA was recorded at IDR 3.70 billion as of March 2026, slightly down from IDR 3.82 billion in the same period last year. However, the company assessed that its ability to generate cash was still relatively well maintained.

Behind these financial achievements, the company faces challenges upstream. High rainfall causes a reduction in the intensity of sunlight needed by coffee plants for the photosynthesis process and fruit ripening. As a result, coffee fruit or cherries develop slower than usual. This condition occurs in a number of major operational areas.

In the Java Coffee Estate (JCE) area on the slopes of the Ijen Plateau, East Java, for example, rainfall reached 120 millimeters with 21 rainy days throughout the first quarter. Meanwhile, in the Jambi region, rainfall was recorded at 57 millimeters with 10 rainy days.

Manager of KSO Java Coffee Estate, Hastudy Yunarko, explained that the condition made the company have to take anticipatory steps.

"If the harvest is forced when the fruit is not fully ripe, the quality of the coffee brew will decrease. That is a risk to the quality standards of the product," said Hastudy.

Therefore, management decided to shift the harvest schedule to May 2026 in accordance with the potential for natural red cherry coffee maturity. This step is considered to give additional time for coffee fruit to reach the optimal maturity level.

According to Hastudy, the decision is part of a strategy to maintain quality amid weather pressure. "We choose to wait so that quality is maintained when the product enters the market," he said.

In the midst of increasingly unpredictable climate dynamics, plantation industry players are required to be more adaptive. For PTPN IV, maintaining the balance between production quantity and quality of the product is the key to maintaining performance, as well as maintaining the competitiveness of coffee in the market.