CPO Companies Remain Optimistic Despite Price Challenges in Late 2025
Executive Summary
Key insights and market outlook
Crude Palm Oil (CPO) companies in Indonesia face challenges due to declining global CPO prices, with prices dropping 5.96% in the last month to MYR 3,958 per ton. Despite this, companies like PT Sawit Sumbermas Sarana Tbk (SSMS) remain optimistic about double-digit revenue growth in 2026. The sector's performance is closely watched as it navigates through global price fluctuations and internal growth strategies.
Deep Dive Analysis
CPO Companies Maintain Optimism Amidst Price Challenges
Global CPO Price Decline
The crude palm oil (CPO) sector faced significant challenges in late 2025 due to declining global prices. According to Bloomberg data, CPO prices for February 2026 contracts fell by 1.25% to MYR 3,958 per ton on December 16, 2025, marking the lowest level since June 13, 2025. This price movement represents a 5.96% decline over the past month, adding pressure on Indonesian CPO companies.
Company Outlook for 2026
Despite the challenging price environment, Indonesian CPO companies remain optimistic about their growth prospects. PT Sawit Sumbermas Sarana Tbk (SSMS), a major player in the sector, is projecting double-digit revenue growth for 2026. According to Deni Agustinus, Corporate Secretary of SSMS, the company is targeting a 10-20% growth in revenue compared to 2025 projections. This optimism is based on internal growth strategies and market positioning.
Market Dynamics
The CPO sector's performance is closely tied to global commodity prices and demand dynamics. While short-term price fluctuations present challenges, companies are focusing on long-term growth strategies. The ability of CPO companies to maintain growth amidst price volatility will be crucial for their performance in 2026.
Source References
Story Info
Topics Covered
Key Events
CPO Price Decline
Corporate Revenue Growth Projections