Positive Trend, PTPN IV PalmCo Posts Net Profit of IDR 3.23 Trillion in Semester I 2026

President Director of PTPN IV PalmCo, Jatmiko K. Santosa

JAKARTA - The financial performance of PTPN III (Persero) sub-holding, PT Perkebunan Nusantara IV PalmCo, showed an aggressive growth trend in the middle of this year. Throughout Semester I 2026, this state-owned plantation sub-holding entity managed to pocket a consolidated net profit (unaudited) of IDR 3.23 trillion.

This figure grew by 54 percent year-on-year (year-on-year/YoY) compared to the same period last year.

The increase in the bottom line in the middle of this year is in line with the company's revenue achievement which has reached IDR 23.41 trillion, or grew 11 percent YoY. Sales of crude palm oil (CPO) remain the main backbone with a contribution of IDR 19.36 trillion, driven by positive trends in CPO sales volumes in the domestic market and penetration in the global market.

In addition to strengthening the average selling price of CPO in Semester I 2026 which touched Rp15,034/Kg or 6 percent above the same period last year, PalmCo can maximize this momentum through increased CPO sales volume and sustainable cost efficiency.

"Cost control and increased production are the backbone of the company. It is this fundamental that makes the 6 percent increase in CPO prices in mid-2026 able to yield a profit surge of up to 54 percent in the midst of various challenges," said President Director of PTPN IV PalmCo, Jatmiko K. Santosa, in a statement, Friday, July 24.

In terms of plantation operations, the trend of increasing the extraction of the company's plantation results shows a positive curve. In the first half of this year, the company's CPO productivity rate reached 2.14 Tons/Ha. This achievement was also followed by an increase in the CPO yield rate of the company's own plantations which was at the level of 23.48 percent, growing positively YoY.

Regarding the improvement of operational metrics, Jatmiko emphasized that one of the keys was standardization of work.

"The increase in CPO productivity and yield is the result of improvements in business processes at palm oil mills and the acceleration of technical culture in the field. We ensure that every ton of raw material that enters the mill is processed with maximum efficiency and supervision," he explained.

The company's profit surge is also inseparable from the mitigation of spending. PTPN IV PalmCo is recorded as able to reduce the cash cost of palm commodities to the level of IDR 3,707/Kg. This step to reduce operational costs helps maintain the company's profit margin from inflationary pressures and other external dynamics.

"Controlling the burden of operational costs is the main pillar of our current resilience. The absorption of measured fertilization and the optimization of the factory machine make our margins very well maintained and healthy. This gives leverage to profits, so that every increase in the level of direct income has a massive impact on improving the company's bottom line," added Jatmiko.

Along with the improvement in profit performance, the company's financial fundamentals also show a more solid posture. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) performance was recorded at Rp6.05 trillion, or grew 29 percent YoY.

Meanwhile, in the first semester of this year, the value of PTPN IV PalmCo assets grew 6 percent year-on-year to IDR 81.57 trillion. This asset growth goes hand in hand with management's steps in managing the company's wealth portfolio sustainably.

"The growth of assets is in line with our commitment to securing state assets through good corporate governance. The optimization of assets that we do is not only aimed at boosting valuation in terms of listing, but also must be able to provide real economic benefits for shareholders and the state," said Jatmiko.

Apart from efficiency and meeting the domestic market, optimizing sales through CPO exports is also an important catalyst for the company's profit. In line with the government's direction in optimizing export sales, PalmCo has penetrated the CPO export market to China (China) and India.

It is recorded that for the period from May 25 to July 8, 2026, the company managed to export 129,500 tons of CPO palm oil.

Furthermore, outside of the main commodity of palm oil, the management of PTPN IV PalmCo also took a fairly strategic technical policy on their coffee business portfolio. In the first half of this year, the company decided to postpone part of the coffee harvest schedule due to climate shift factors.

This step was taken to maintain the quality standards of specialty grade and ensure that the maturity of coffee beans (red petiks) fully meets the specifications of the premium market. Even though there are adjustments to the harvest schedule which has an impact on volume, the coffee business line still contributes positively by recording a net profit of IDR 2.49 billion in the middle of this year.

"The decision to postpone the harvest of coffee is a tangible proof of our commitment to the philosophy of quality over quantity. We want to maintain the high trust of buyers in the quality of PTPN coffee. And it turns out, the management's steps that prioritize product integrity are still able to contribute to the company's profits," he explained.

Entering the remainder of 2026, PTPN IV PalmCo plans to accelerate the fertilization program by utilizing the availability of stock in warehouses and supplies that will be distributed in Semester II. The company also confirms its commitment to sustainability in supporting national energy security, one of which is by ensuring a consistent supply of raw materials for the development of renewable biogasoline. Not only in the core plantations, the company also continues to urge the rejuvenation program for people's oil palm to increase national CPO production and productivity.

However, with this semester I achievement, management assesses that the results are not the end of the transformation process. The company stated that it will continue to evaluate operational aspects, strengthening risk management, and increasing efficiency to maintain the sustainability of performance.

"This 6-month achievement is a good foundation, but this is just the beginning. The dynamics of the agri-business industry that continues to move require us to continue to be adaptive. Therefore, we carry out continuous improvement in all of them so that exponential growth and the creation of sustainable added value for shareholders, industry ecosystems, and the wider community can be realized," concluded Jatmiko.