DSN Group Increased CPO Production by 30.7%
PT Dharma Satya Nusantara Tbk (DSN Group) recorded a total crude palm oil (CPO) production of 335,730 tons throughout 2012, 30.7% higher compared to total production in 2012. The Group also recorded a consistent quarter on quarter production growth in 2013.
PT Dharma Satya Nusantara Tbk President Director, Mr. Djojo Boentoro said that the consistent increase in CPO production was a result of improving plantation performance owned by the Group, which is listed in Indonesia Stock Exchange since June 2013.
“Throughout 2013, our Fresh Fruit Bunches (FFB) production increased 21.7% to 1.24 million tons compared to the same period last year,” Mr. Boentoro added during a press conference on Jakarta, Tuesday Janury 28th, 2014. He further disclosed the total FFB production from first quarter to fourth quarter of 2013 which stood at 259,762 tons, 295,807 tons, 329,912 tons, and 355,336 tons respectively.
“Overall, we increased the number of FFBs processed, from Group’s plantation, plasma and partnership plantataion, by 31.2% higher or equal to 1.38 million tons,” Mr. Boentoro further added.
The Group also maintained its Oil Extraction Rate (OER) above 24%. On the other hand, Free Fatty Acid (FFA) rate was 2.67%, lower than 2012 rate of 2.70%.
Increase in CPO sales
The Group’s Deputy Director and Chief Financial Officer, Mr. Andrianto Ootomo, said that in line with production growth, CPO sales during 2013 was 33.2% higher compared to 2012. The Group recorded CPO sales of 336,240 tons.
As of December 2013, DSN Group has a planted area of 70,526 hectares. 74.97% of total planted area, or equal to 52,874 hectares, are mature area with average plantation age of 7.4 years.
As a result, the Group increased its yield production from 22.9 tons per hectare in 2012 into 24.6 tons per hectare in 2013.
DSN Group Production and Sales Table
| Description | 2012(tons) | 2013(tons) | Increase(%) |
| FFB Production | 1,019,923 | 1,240,819 | 21.7 |
| CPO Production | 256,971 | 335,730 | 30.7 |
| CPO Sales | 252,536 | 336,240 | 33.2 |
Higher Average Selling Price for Wood Products
In addition to CPO, DSN Group also produces manufactured wood products. Total production for wood panel, engineered doors, and engineered flooring was lower 26.9%, 42.9% and 8% respectively.
“Despite lower production level, the average selling price (ASP) for Group’s wood products were significantly higher during 2013. The ASP was 28.4%, 55%, and 15.1% higher for wood panel, engineered doors, and engineered flooring products, respectively. This is due to Group’s strategy in focusing into high value adding products,” Mr. Oetomo said.