CPO Issuers Navigate Challenges Amidst Global Price Decline

Current Market Conditions

Crude Palm Oil (CPO) issuers are facing significant challenges in late 2025 due to the decline in global CPO prices. The current price stands at MYR 4,146 per ton, representing a 0.07% month-on-month decrease and a 6.71% year-to-date decline. This price movement has put pressure on CPO producers to maintain their financial performance.

Company Outlook for 2026

Despite the current challenges, some CPO companies remain optimistic about their prospects for 2026. PT Sawit Sumbermas Sarana Tbk (SSMS) is projecting double-digit revenue growth for the next year. According to Deni Agustinus, Corporate Secretary of SSMS, the company is targeting a 10-20% growth in revenue for 2026 compared to 2025. This optimism is based on various factors, including potential improvements in global demand and production efficiencies.

Market Implications

The decline in CPO prices has significant implications for Indonesian CPO issuers, who are major players in the global market. While short-term challenges exist, companies are focusing on long-term strategies to maintain growth. The projected growth by SSMS indicates that despite current headwinds, there is confidence in the sector's ability to recover and expand.