InfoSAWIT, SINGAPORE – Kencana Agri Limited (“Kencana” or “the Group”) recorded significant operational growth in the financial year ending 31 December 2025 (FY2025), with double-digit increases in fresh fruit bunch (FFB) and crude palm oil (CPO) production compared to the previous year.
According to an official statement received by InfoSAWIT on Friday (6 March 2026), the Group’s total planted area, including plasma plantations, remained stable at 67,885 hectares in FY2025, unchanged from FY2024.
FFB production rose 15.5%, from 680,478 metric tons (MT) in FY2024 to 785,833 MT in FY2025. Meanwhile, CPO production increased 14.6%, from 163,489 MT to 187,295 MT.
“Total FFB production increased by 15.5% and CPO production rose 14.6% in FY2025, driven by improved yields across the Group’s plantations, particularly in Sulawesi where productivity continues to improve year by year,” management said in the report.
The company added that the improved production performance was supported by better agronomic practices, stronger operational efficiency, and relatively favorable weather conditions across Indonesia during the year.
Chairman of Kencana, Henry Maknawi, said the Indonesian palm oil industry continues to operate in a challenging but generally supportive market environment.
“The Group will maintain a disciplined and adaptive approach in managing procurement, inventory management, and overall risk exposure. While the operational outlook for 2026 remains generally constructive, rising external uncertainties could trigger short-term market fluctuations,” Henry said.
Management also highlighted that global geopolitical dynamics—including tensions in the Middle East and developments in major oil-producing regions—could trigger volatility in global energy prices.
Fluctuations in crude oil prices may affect biofuel economics, logistics costs, and commodity market sentiment, which in turn could influence CPO price movements and demand.
With disciplined risk management strategies and a focus on maintaining margins and financial stability, Kencana remains confident it can sustain operational resilience amid global uncertainties in 2026. (T2)
