In 2023, DSNG’s Crude Palm Oil (CPO) production increased by 3.5%.

Jakarta, 30 January 2024 – PT Dharma Satya Nusantara Tbk (DSNG) recorded an increase of Crude Palm Oil (CPO) productivity by 3.5%, driven by a rise in Fresh Fruit Bunches (FFB) by 2.6% and Oil Extraction Rate (OER) by 1.9%, reaching 23.19% year on year (YoY). This increase was driven by the improved company’s plantations productivity and factories throughout 2023.

On a quarterly basis, the CPO production also increased by 10.8%, followed by FFB with a 6.4% increase during the fourth quarter. As a result, the production ratio for FFB in the first and second semesters of 2023 stands at 46%:54%.

The annual surge in FFB production contributed to a YoY increase of 4.3% in palm kernel (PK) and 6.3% in palm kernel oil (PKO) production. By the end of 2023, DSNG successfully maintained Free Fatty Acid (FFA) levels below 3%, specifically at 2.96%, ensuring the premium quality of DSNG’s CPO.

“Currently, the company continues to drive productivity through consistent implementation of Good Agriculture Practices (GAP) and the strategic use of technology, particularly in overcoming weather challenges like last year’s drought. We are also committed to ongoing innovation to continuously improve the productivity of our plantations”, explained Andrianto Oetomo, President Director, PT Dharma Satya Nusantara Tbk.

In addition, DSNG witnessed a 4% YoY increase in CPO sales volume, reaching 665 thousand tons, and a 1.2% YoY increase in Palm Kernel Oil (PKO) sales, totaling 39 thousand tons. The Average Selling Price (ASP) of DSNG’s CPO in 2023 increased by 1.9% YoY, reaching Rp 11.39 million per ton. However, the ASP of PKO declined by 25.8% to Rp 12.97 million per ton, following market dynamics.

For the wood business segment, the persisting international market sluggishness, present since late 2022, remained the company’s primary challenge throughout 2023. Rising interest rates globally since March 2022 and over-inventory in Japan negatively impacted the global property market, affecting the demand and prices of DSNG’s wood products. Consequently, panel and flooring product sales experienced a YoY decline of 14% and 33.9%, respectively, although quarterly sales throughout 2023 exhibited improvement. The ASP of panel products declined by 17.5% YoY, while the ASP of flooring products increased by 1.3% YoY.

By the end of 2023, the company conducted rejuvenation programs for its aging and unproductive plantations, felling 673 hectares and replanting with high-quality seeds across 500 hectares. The total planted area by December 31, 2023, reached 112.7 thousand hectares, with a mature area of 105.7 thousand hectares. These rejuvenation efforts to ensure the sustained productivity of the company’s plantations in the years to come.

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ABOUT DSNG

PT Dharma Satya Nusantara Tbk (DSN Group) was established on 29 September 1980 and focused on palm oil and wood products businesses. DSNG has 112.7 thousand hectares of planted area and 12 palm oil mills, which process Fresh Fruit Bunches (FFB) into CPO with a total capacity of 675 tons per hour. As for wood products, DSNG runs two wood processing plants in Central Java that produce panels and engineered floorings, with an installed capacity of 150,000 square meters per month for engineered floorings and 12,000 cubic meters per month for panel products.

FOR MORE INFORMATION

Mrs. Paulina Suryanti

Corporate Secretary

Jl. Rawa Gelam V Kav. OR / 3B

Pulogadung Industrial Estate

Jakarta 13930, Indonesia

Email: corporate.communications@dsngroup.co.id