JAKARTA – PT Cisadane Sawit Raya Tbk (CSRA), a palm oil producer, has allocated IDR 100 billion in capital expenditure (capex) for 2025.

Seman Sendjaja, CSRA's Director of Finance & Strategic Development, stated that around 50% of this budget will be used for the construction of the company's third palm oil mill in Banyuasin Regency. This mill is scheduled to start operations in July 2025.

“The remaining 50% will be for compensation of growing crops (GRTT) and the planting of new areas in the operational region of South Sumatra,” Seman said in an official statement.

In addition to organic expansion, Seman mentioned that CSRA is also reviewing opportunities to acquire new land near its existing plantations to facilitate integration of its operations. “We aim to make it easier to integrate CSRA’s operations,” Seman noted.

CSRA is preparing these plans to address the opportunities and challenges in the palm oil industry in 2025. The company projects that Indonesia's Crude Palm Oil (CPO) prices will grow by 7.2% this year, while production volumes are expected to rise by 3.9%.

“With proper governance and a well-directed expansion strategy, CSRA is optimistic about strengthening its competitiveness and achieving sustainable growth in the future,” Seman added.

On the operational side, CSRA is currently prioritising healthy cash flow to support its strategic developments. These include investments in mills, mechanisation of production processes, and the adoption of new technology to boost efficiency. (EF/KR/ZH)