Falling Sales, Palm Oil Issuers' Profits Shrink

The decline in palm oil prices and sales volume resulted in a decrease in profits for plantation companies in the first quarter of 2018 compared to the first quarter of 2017. Of the six companies that have released their financial reports, four experienced profit declines exceeding 50%. The remaining two companies reported losses.

PT Astra Agro Lestari Tbk (AALI) recorded a 55.03% decrease in profit during the first three months of 2018, reaching Rp 355.5 billion compared to the same period the previous year. Similarly, PT Salim Ivomas Pratama Tbk (SIMP)'s profit shrank by 67.3% to Rp 111.2 billion. Furthermore, PT Austindo Nusantara Jaya Tbk (ANJT) saw a 105% decrease in profit, resulting in a loss of Rp 16.1 billion, while PT Eagle High Plantations Tbk (BWPT)'s losses increased by 320% to Rp 76.4 billion.

According to data from the Central Statistics Agency (Badan Pusat Statistik), the volume of palm oil exports in January-February 2018 decreased by 6.35% to 4.49 million tons compared to the same period the previous year. Similarly, the export value dropped by 18.87% to US$ 3 million. Palm oil exports from Indonesia to several countries, including Italy, Thailand, Afghanistan, and France, experienced a decline during the first two months of the year.