Astra Agro CPO exports soars 127%

The Jakarta Post, Jakarta

Publicly listed plantation company PT Astra Agro Lestari reported on Thursday its crude palm oil (CPO) export had surged by 127 percent on-year in the first semester, primarily due to higher demand from India.

In its report to the Jakarta Stock Exchange, Astra Agro said CPO export jumped to 172,810 tons in the January-June period, from 76,205 tons in the same period last year.

During the period, CPO export to India rose 282 percent from 18,975 tons to 72,548 tons. India, the world's second most populous country, accounted for 42 percent of Astra Agro's total CPO export in the first semester.

Export to Malaysia also jumped, by 115 percent to 41,998 tons, to Vietnam by 61 percent to 24,498 tons and to the Netherlands by 30 percent to 21,290 tons. Malaysia, Vietnam and the Netherlands accounted respectively for 24.3 percent, 14.2 percent and 12.3 percent of Astra Agro's first semester export.

The company, a subsidiary of automotive giant PT Astra International, controls around 205,000 hectares of plantations in Sumatra, Kalimantan and Sulawesi, and more than 92 percent of its sales revenue is derived from palm- based products.

CPO output from Astra Agro accounts for around 8 percent of the country's total 2004 production, which is predicted to reach 10.4 million tons, higher than last year's 9.9 million tons.

Indonesia is the second largest CPO producer after Malaysia, recording a 2003 output of 9.9 million tons.

The Indonesian Palm Oil Producers Association (GAPKI) said the increase in production this year resulted from the 1999-2000 expansion of CPO plantations.

The 500,000 extra tons produced this year would allow Indonesia to boost exports of the commodity, as annual domestic consumption is predicted to remain steady at 3.5 million tons.

With the additional output, Indonesia can increase exports to countries like China, India, Pakistan, Bangladesh, the Netherlands and new markets such as eastern Europe.

Shares of Astra Agro on the local bourse ended higher on Friday at Rp 2,225, a Rp 25 rise.