Sampoerna Agro Targets Production Growth Amid Recovery

Strategic Production Outlook for 2026

PT Sampoerna Agro Tbk (SGRO), a leading player in Indonesia's agricultural sector, is projecting a production growth target of 3-5% for Crude Palm Oil (CPO) and Fresh Fruit Bunches (FFB) in 2026. According to Budi Setiawan Halim, the company's CEO, while the exact target is still being finalized, management anticipates growth within this range.

Recovery from El-Nino Impact

The projected growth comes as Sampoerna Agro continues its recovery from the adverse effects of El-Nino in 2023-2024, which significantly impacted production levels. The company's Q3 2025 performance showed substantial improvement, with FFB production rising 13% year-on-year to 1.2 million tons. This rebound is attributed to more favorable weather conditions following the El-Nino phenomenon.

Market Implications and Future Prospects

The anticipated production growth in 2026 is expected to positively impact Sampoerna Agro's market position and financial performance. As the company moves towards achieving its production targets, investors will be closely monitoring progress and any strategic adjustments to production plans. The company's ability to navigate weather-related challenges while maintaining growth will be crucial for its long-term success in the competitive CPO market.