SSMS Forecasts Surge in FFB and CPO Output Amid Optimism this Year

KONTAN.CO.ID - JAKARTA. PT Sawit Sumbermas Sarana Tbk (SSMS) is optimistic about achieving better palm oil production performance this year. This is due to the targeted growth of Fresh Fruit Bunches (TBS) and Crude Palm Oil (CPO) production compared to last year.

SSMS's Corporate Secretary, Deni Agustinus, stated that the company has a target to increase the core TBS production by 10% compared to the previous year. Meanwhile, CPO production is targeted to grow by up to 15%.

"We are optimistic that the company's CPO production will continue to increase in the long term, in line with the age profile of the plantation which is still in its prime production age," Deni told Kontan on Wednesday (22/2).

Deni stated that the company will boost TBS and CPO production this year with several agronomic activities, such as optimal fertilization and maintenance so that the fruit produced can be maximized and have the best quality.

This activity is also supported by the company's commitment to ESG (Environmental, Social, and Governance) aspects through sustainability programs. Currently, SSMS has completed all of its operations that have been certified by RSPO (Roundtable on Sustainable Palm Oil).

"The company ensures that its plantations comply with best practices as mandated in RSPO and ISPO so that the competitiveness of palm oil products and their derivatives in the domestic and export markets can increase because SSMS has met the aspects requested by consumers, namely sustainability aspects," he said.

Unfortunately, SSMS has not yet been able to detail the revenue and profit targets for this year.

"We continue to strive to provide positive results for all stakeholders, by targeting better revenue than the previous year," he explained.

SSMS Chart by TradingView

Clearly, in 2024 SSMS is preparing a capital expenditure (capex) budget of IDR 1.2 trillion to support the company's production activities.

"Capex is allocated for plantation maintenance and fertilization, as well as the development of mechanization and other infrastructure," he said.

To support the downstream program, the company is currently focusing on meeting about 80% of the utilization of the PT Citra Borneo Utama (CBUT) factory.

"In addition to the high production utilization, the demand for CBUT's downstream products is also increasing, such as CPO derivative products in the form of RBDPO (refined, bleached, and deodorized palm oil) products and others," he concluded.