Bumitama Agri outlines cost impacts, biodiesel outlook in pre-AGM Q&A

SGX Filings
Apr 22

Bumitama Agri Ltd. announced on Apr, 22 2026 that it has released written responses to questions from a shareholder and the Securities Investors Association (Singapore) ahead of its annual general meeting scheduled for Apr, 27 2026.

The group said fuel and fertiliser together make up about 10% of its production costs; fertiliser alone accounts for less than 10%, with more than 60% of the 2026 requirement already contracted.

Management noted that roughly 25% of global palm oil output in 2025 was used for energy applications and that higher fossil-fuel prices typically support crude palm oil (CPO) demand through biodiesel production.

In Indonesia, the company expects continued support from the B40 biodiesel mandate and is monitoring a potential shift to B50 in the second half of 2026. Bumitama, a pure upstream producer, does not adjust planting or capital-expenditure plans solely on biodiesel policy changes but caps forward CPO sales at 40% of nucleus output for up to six months; no forward contracts were executed in 2025.

The group processed 5.65 million tonnes of fresh fruit bunches (FFB) in 2025, representing 81% utilisation of its 1,165-tonne-per-hour milling capacity. About 39% of processed FFB came from third-party suppliers, representing 51% of total cost of sales.

Average CPO selling prices rose 13.4% year on year to IDR14,355 per kg in 2025, while palm kernel (PK) prices climbed to IDR12,093 per kg, taking the PK-to-CPO price ratio to 84%.

The company said its traceability programme has mapped 92.5% of processed FFB to plot-level polygons and is targeting full traceability by early 2027 to comply with forthcoming European Union Deforestation-free Regulation requirements.

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