Profits of Haji Isam Issuer (JARR) Drop 30%, Here's the Culprit

Jakarta, CNBC Indonesia — The performance of PT Jhonlin Agro Raya Tbk (JARR) was under pressure in the first quarter of 2026. The net profit of this biodiesel producer issuer was recorded to have fallen significantly in line with a combination of weakening sales and a surge in operating expenses. JARR’s net profit was recorded at Rp41.33 billion, down 30.8% from the same period last year at Rp59.73 billion. From the topline perspective, sales also experienced a decline to Rp776.51 billion, from Rp849.09 billion in the first quarter of 2025. This decline directly impacted operating profit, which eroded substantially from Rp103.79 billion to Rp77.43 billion. Based on the company’s financial report, the fatty acid methyl ester (FAME) product recorded the deepest sales decline of 12.52% to Rp627.17 billion. Several other business lines actually grew, such as crude glycerine sales which doubled annually and cooking oil which rose 17.16% year-on-year. However, they were unable to offset the revenue drop from the FAME business, which contributes 80.77% to the company’s total business. Purchases by JARR’s main customer, PT Pertamina Patra Niaga, were recorded to have fallen significantly. In March 2026, Pertamina Patra Niaga conducted transactions worth Rp322.27 billion, down 39.84% year-on-year. Meanwhile, the pressure did not only come from the revenue side. Selling expenses surged significantly to Rp46.58 billion, from Rp34.16 billion in the same period last year. This increase further pressured the company’s margins amid declining sales. In addition, general and administrative expenses also rose to Rp18.80 billion. The combination of declining sales, rising operational costs, and high interest expenses became the main factors causing the net profit decline in this period. Nevertheless, from a liquidity perspective, the company still recorded a strong cash position. Cash and cash equivalents increased to Rp463.05 billion from Rp392.44 billion at the end of 2025, in line with improved cash flow from operating activities.