ISSUER NEWS - JAKARTA. Palm oil issuer, PT Sampoerna Agro Tbk (SGRO) is optimistic that its business line in the palm seed sales sector will grow in 2024.
Head of Investor Relations Sampoerna Agro Stefanus Darmagiri said this optimism is inseparable from the activities of the People's Palm Plantation Rejuvenation Program (PSR) initiated by the government and the replanting activities of the plantation which are expected to be larger in 2024.
"We see that the company's palm seed sales will be better this year," Stefanus told Kontan, Friday (26/1) night.
Stefanus mentioned, the production of DGRO palm seeds until the third quarter of 2023 reached 17.1 million tons. This production volume increased by 3% compared to the same period the previous year.
"Through the trademark “DxP Sriwijaya” and producing 12 varieties of superior palm seeds, SGRO through its subsidiary PT Bina Sawit Makmur occupies the second position in the market share of palm seeds in Indonesia around 15% in the third quarter of 2023," said Stefanus.
He said the palm seed business line contributes about 3% to sales or revenue from SGRO.
As additional information, besides being used for their own plantations, these superior SGRO seeds are also sold to other palm industries.
SGRO is committed to continuing research and development efforts for superior seeds, in order to give birth to greater innovation in the coming years.
The distribution of palm seeds carried out by SGRO covers almost all regions of Indonesia, namely Sumatra, Kalimantan, Sulawesi and Papua, including distribution to small-scale farmers.
In addition, SGRO also has a seed processing unit facility and an integrated laboratory that specifically handles soil, leaves, microbiology, tissue culture, and biotechnology located in Palembang, South Sumatra.