Triputra Agro (TAPG) Targets Positive CPO Production Growth in 2024

January 28, 2024, 04.00 PM | Source:
Triputra Agro (TAPG) Targets Positive CPO Production Growth in 2024

ILUSTRASI. PT Triputra Agro Persada Tbk (TAPG).

ISSUER NEWS - JAKARTA. As one of the players in the palm oil industry in Indonesia, PT Triputra Agro Persada Tbk (TAPG) believes that the production performance of Crude Palm Oil (CPO) can increase in 2024.

Corporate Secretary of Triputra Agro, Joni Tjeng said that the company estimates there will be a single-digit growth in CPO production in 2024 due to the lingering effects of El Nino in 2023 and a neutral climate in 2024. 

"There will be single-digit growth in (CPO) production in 2024," Joni told Kontan last week.

It is noted that TAPG's CPO production in 2023 was 975 thousand tons. Meanwhile, the company's Fresh Fruit Bunches (TBS) production was about 3.05 million tons, or a decrease of 5% compared to the previous year.



"For 2024, the company still estimates that the price of CPO will be at a relatively high level compared to the average of the last 5 years," he said.

Read Also: Palm Prices Seen Up 4% in 2024 on Biodiesel Demand, Stagnant Output

Regarding costs, especially fertilizer, TAPG estimates that fertilizer prices will decrease to a level below that of 2023. 

"Based on these factors, the company estimates that the 2024 performance will be better than 2023," he emphasized.

In terms of sales, Joni explained that throughout 2023, the volume of domestic CPO sales at the company's subsidiaries is expected to increase by a single digit around 2% compared to 2022. 

One of the reasons for the increase in sales volume is due to better logistics conditions in 2023 where the weather has started to dry up and infrastructure improvements, especially roads, remain a company priority.

"At this time, the company is still conducting all sales in the domestic market," he explained.

On the other hand, TAPG currently has no plans to add new palm oil factories, as the production capacity of the existing factories is already in line with TBS production. 

However, Joni revealed that they are open to expanding into new land in 2024.

"The company currently has no plans for land expansion and is focusing on increasing productivity through the application of Good Agriculture Practices (GAP) and rejuvenation for old plants. However, the company still opens the potential for plantation acquisitions if there are suitable plantations around the company's plantation," he concluded.

Based on Kontan's records, by the end of 2023, TAPG had 23 palm plantations, 1 rubber plantation, 18 Palm Oil Mills (PKS), 1 palm kernel oil factory, and 1 slab and ribbed smoked sheet (RSS) factory spread across the Jambi, Central Kalimantan, and East Kalimantan regions. 

Editor: Syamsul Azhar

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