Weather and Fertiliser Prices Become Challenges for Palm-Oil Listed Companies

PT Palma Serasih Tbk (PSGO) is wary of several palm-oil industry challenges in 2026, including climate change, higher fertiliser prices, and labour constraints. Management says weather remains the main risk to palm oil plantation production. In a public briefing in Jakarta on Friday (22 May 2026), the management noted heavy rainfall caused a decline in fresh fruit bunches (FFB) and crude palm oil (CPO) production compared with the previous year. Core and plasma FFB production totalled 480.8 thousand tonnes, while CPO production reached 140.2 thousand tonnes and palm kernel (PK) 21.6 thousand tonnes. Despite lower production, the company booked net profit of Rp442.8 billion in 2025, up 26.3% year-on-year. The rise in profit was supported by improving selling prices of CPO and PK as well as lower financial costs. Director & Corporate Secretary Astrida Niovita Bachtiar said the company continues to strengthen operational efficiency to maintain performance amid pressures in the global industry. “We are also enforcing cost discipline so the company’s performance remains intact,” Astrida said. For 2026, PSGO targets CPO production of 181.7 thousand tonnes, up around 30% from last year’s realised figure. Meanwhile, core and plasma FFB production is aimed to rise to 579.9 thousand tonnes. The company views the outlook for the palm oil industry as open, given rising global vegetable oil consumption and the continuation of domestic biodiesel programmes. However, it also anticipates other challenges such as changes in global regulations and tighter sustainability demands. To sustain growth, PSGO relies on optimising planted areas, improving plantation productivity, mechanising operations, and integrating technology into the production chain. In addition, the company has set a cash dividend of Rp113.1 billion or Rp6 per share from the 2025 financial year profits.