InfoSAWIT, JAKARTA – PT Perkebunan Nusantara IV PalmCo, the plantation subholding of state-owned PTPN III (Persero), posted a sharp increase in financial performance during the first half of 2026, with net profit jumping 54% year on year to Rp3.23 trillion.
The unaudited consolidated result was supported by higher crude palm oil (CPO) prices, stronger sales volume and continued operational efficiency.
Revenue reached Rp23.41 trillion, an 11% increase from the same period last year. CPO remained the company’s largest source of revenue, contributing Rp19.36 trillion as demand strengthened in both domestic and export markets.
In an official statement cited by InfoSAWIT on Monday (Aug. 10, 2026), PalmCo President Director Jatmiko K. Santosa said the company’s stronger fundamentals reflected tighter cost controls and improved plantation productivity.
The company’s average CPO selling price reached Rp15,034 per kilogram, approximately 6% higher than in the first half of 2025.
“Cost control and higher production are the backbone of the company. These fundamentals enabled the 6% increase in CPO prices in the first half of 2026 to generate a 54% jump in profit despite various challenges,” Jatmiko said.
PalmCo Improves Plantation Productivity
PalmCo’s operational performance also strengthened during the first six months of 2026.
CPO productivity reached 2.14 tons per hectare, while the CPO extraction rate from the company’s own plantations increased to 23.48%.
Jatmiko attributed the improvement to standardized work processes, ranging from agronomic practices in the plantations to optimization of processing operations at palm oil mills.
The company also reduced its palm oil cash cost to Rp3,707 per kilogram, helping protect margins amid inflationary pressures and volatility in global markets.
“Controlling operating costs is a key pillar of the company’s resilience. Optimizing fertilizer use and improving mill efficiency have helped maintain healthy margins, allowing higher revenue to translate directly into stronger profits,” he said.
The stronger operating performance also supported PalmCo’s financial structure. EBITDA rose 29% year on year to Rp6.05 trillion, while total assets increased 6% to Rp81.57 trillion.
PalmCo Expands CPO Exports to China and India
PalmCo also expanded its export market presence during the period, in line with the government’s push to increase exports of higher-value commodities.
The company shipped 129,500 tons of CPO to China and India between May 25 and July 8, 2026.
The export expansion comes as PalmCo seeks to strengthen its market reach while maintaining its focus on operational efficiency and plantation productivity.
Beyond palm oil, the company’s coffee business also remained profitable. PalmCo reported net profit of Rp2.49 billion from its coffee operations during the first half of 2026.
The company postponed part of its coffee harvesting schedule because of changing weather patterns, a move aimed at maintaining the quality of its premium specialty-grade coffee beans.
PalmCo Prepares for Second-Half Expansion
Entering the second half of 2026, PalmCo plans to accelerate its fertilizer application program, continue the People's Palm Oil Replanting Program, strengthen feedstock supplies for renewable biogasoline development and maintain its operational efficiency drive.
Jatmiko said the first-half performance should be viewed as a foundation rather than the end of the company’s transformation.
“The six-month performance provides a strong foundation, but this is only the beginning. We will continue making improvements to create greater added value for shareholders, the industry and society,” he said.
With higher CPO prices, stronger plantation productivity and tighter cost management, PalmCo enters the second half of 2026 with a stronger financial position while continuing to pursue expansion across its palm oil and other plantation businesses. (T2)
