InfoSAWIT, JAKARTA – Higher plantation productivity became a major driver of Bumitama Agri Ltd.’s performance in the first half of 2026, with internal fresh fruit bunch (FFB) yield rising 16% year-on-year to 10.7 tonnes per hectare.
The improvement in plantation output, supported by higher production volumes and continued processing efficiency, helped lift the company’s financial performance. According to Bumitama’s mid-year report, as reported by InfoSAWIT on August 18, 2026, net profit for the first half reached Rp1.83 trillion, up 44% from the same period a year earlier. EBITDA rose 37% to Rp3.50 trillion.
FFB Production Reaches 1.86 Million Tonnes
Bumitama recorded internal FFB production of 1.86 million tonnes in the first half of 2026, representing a 13% increase from the corresponding period last year.
The higher production volume was accompanied by a significant improvement in plantation yield. Internal FFB yield increased from 9.2 tonnes per hectare in the first half of 2025 to 10.7 tonnes per hectare this year.
Total FFB harvested by the company reached approximately 3 million tonnes, compared with 2.73 million tonnes in the first half of 2025, marking a 10% year-on-year increase.
Processing performance also remained firm. Bumitama’s oil extraction rate (OER) edged up to 22.5%, from 22.4% in the same period last year, supporting crude palm oil (CPO) production of 672,590 tonnes, up 11% year-on-year.
Planted Area Reaches 184,000 Hectares
As of June 30, 2026, Bumitama managed approximately 184,000 hectares of planted area, comprising 122,000 hectares of nucleus estates and 62,000 hectares of plasma plantations.
The average age of the company’s palms stood at 15.1 years, with around 94.6% of the planted area classified as mature, productive estates and the remaining 5.4% still immature. The plantation profile provides Bumitama with a substantial production base as it seeks to maintain harvest volumes and further improve productivity.
Stronger Margins Support Profit Growth
Improved operational performance was also reflected in stronger profitability.
In the second quarter of 2026, Bumitama generated revenue of approximately Rp6.46 trillion, while its net profit margin increased by 3.7 percentage points quarter-on-quarter to 16.8%. EBITDA margin climbed by 7.2 percentage points to 32.3%.
The stronger earnings and cash flow also allowed the company to raise its interim dividend to 4.10 Singapore cents per share, an increase of 13% from the previous year.
Looking ahead, Bumitama sees potential support from stronger domestic palm oil demand following the implementation of Indonesia’s B50 biodiesel programme. Global vegetable oil supply conditions and volatility in energy markets are also expected to remain important factors shaping the industry outlook.
With most of its planted area already in the productive phase, rising FFB yields and stronger profitability, Bumitama enters the second half of 2026 with positive operational and financial momentum. (T2)
