CPO Issuers' 2026 Outlook Remains Positive

Sustained Demand Supports Growth Prospects

The crude palm oil (CPO) sector is expected to maintain its positive momentum through 2026, driven by continued demand and favorable market conditions. PT Sampoerna Agro Tbk (SGRO), a major player in the industry, remains optimistic about its performance in the coming year. The company is targeting sales growth of around 3% in 2026, supported by sustained demand particularly from government initiatives such as the B40 program.

Production Constraints to Maintain Price Strength

Industry analysts predict that while demand for CPO will remain robust, production is expected to contract. This supply constraint is likely to keep CPO prices strong throughout 2026. The combination of stable demand and limited supply growth creates a favorable environment for CPO producers, potentially leading to improved financial performance for companies like SGRO.

Strategic Positioning for Future Growth

SGRO's management indicates that their sales performance in 2026 will be influenced by both price movements and inventory levels. The company's ability to manage its crude palm oil inventory effectively will be crucial in determining its overall sales performance. With the current market conditions and government support for biodiesel programs, CPO producers are well-positioned for continued success in the coming year.