Antara News·Indonesia·Friday, November 6, 2026 at 06:21 AM UTC

Indonesia's PTPN IV boosts direct CPO exports, targets cost cuts

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M.Harianto, Rahmad Nasution

Jakarta (ANTARA) - PT Perkebunan Nusantara IV (PTPN IV PalmCo) is expanding direct crude palm oil (CPO) exports and cutting production costs to meet its financial and operational targets for 2026.

“We are refining our operational and financial strategies for the fourth quarter to ensure the company achieves its year-end targets,” President Director Jatmiko K. Santosa said here Friday.

At its fourth-quarter leadership meeting, attended by commissioners, directors, division heads and regional managers, PalmCo prioritized direct CPO exports, cost efficiency and precision plantation management.

With two months remaining in the year, Jatmiko said the company would closely monitor production across its operations while implementing structured efficiency measures to protect cost competitiveness and profitability.

“This year, we have expanded market access through direct exports. Success, however, depends on production oversight, reliable supply and strict quality control, from processing plants to logistics,” he said.

PalmCo is also reducing cash costs through its Go Lean and Go Secure initiatives to protect profit margins and strengthen its financial position.

Beyond core operations, Jatmiko emphasized disciplined asset management and efforts to maximize the value of the company's green business initiatives.

The company is working to secure physical control and complete legal documentation for all its assets to mitigate operational risks.

It is also increasing value from palm oil waste through methane capture facilities and higher sales of palm kernel shells.

Meanwhile, PalmCo President Commissioner Desrial said plantation companies would increasingly be judged by productivity per hectare and cost allocation, rather than simply the size of their landholdings.

The industry must adopt smart plantation systems that effectively integrate field mechanization with corporate digital platforms, Desrial said.

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