JAKARTA – PT Astra Agro Lestari Tbk or (Astra Agro) recorded positive performance during 2024 so that it was able to distribute maximum dividends to all shareholders. The oil palm plantation company, which was listed on the Indonesia Stock Exchange in 1997, also reaffirmed its consistency in implementing sustainable governance in running its business in 2025 in its mission-themed Reinforcing Sustainability.
This was revealed in the annual Public Expose (Pubex) held after the Annual General Meeting of Shareholders (AGMS) at Menara Astra on Monday (28/4/2024). For the Company’s solid performance, at the AGMS, the shareholders approved the use of the company’s net profit ending December 31, 2024 of Rp1.1 trillion. In addition, a dividend distribution of Rp515.8 billion or equivalent to Rp268 per share was also approved. On October 24, 2024, the Company paid an interim dividend of Rp161.7 billion, equivalent to Rp84 per share. The remaining Rp354.1 billion, or equivalent to Rp184 per share, will be paid to shareholders on May 28, 2025.
“The price increase has pushed our revenue up 5% yoy to Rp21.82 trillion, with the Company’s net profit increasing 9% from Rp1.06 trillion to Rp1.15 trillion by 2024. In addition, the strategy of implementing cost efficiency, improving operational excellence, and innovation in the production process that is carried out consistently as part of continuous improvement has enabled the Company to reap maximum results,” said the Company’s Director, Tingning Sukowignjo.
For information, the average CPO price in the Rotterdam market increased by 12% from US$964/ton in 2023 to US$1,084/ton in 2024. The increase in global prices positively impacted the Company’s average CPO price, which also increased by 15.6% in 2024 to IDR 12,883/kg from IDR 11,142/kg in 2023. On the other hand, the average price of soy oil decreased last year due to higher production compared to other vegetable oils, making the global vegetable oil market more competitive.
Throughout 2024, 69% of Astra Agro’s sales was coming from the domestic market. This aligns with the commitment to succeed in government programs, especially in meeting domestic palm oil supply through the Domestic Market Obligations (DMO) policy. Meanwhile, 31% of Astra Agro’s sales are to meet global needs through the export market to various countries, including China, India, South Korea and Pakistan.
Commitment to Innovation and Sustainability in Corporate Governance
Amidst the operational challenges facing the Indonesian palm oil industry, including Astra Agro, the AALI-coded Company continues to focus on Research and Development (R&D) to create discoveries that can drive sustainable operational performance in the future. These efforts are also in line with the sustainability initiatives contained in the Company’s strategy, Astra Agro Sustainability Aspirations 2030, which focuses on efforts to reduce the effects of greenhouse gases (GHG), diversity and environmental inclusion, as well as ensuring that the Company’s operations have a good impact on the communities around the Company’s operational areas and the Indonesian nation in general.
In 2024, the Company made another big leap by building a methane capture facility. Currently, the Company has two methane capture units in Riau Province that aim to reduce Greenhouse Gas (GHG) emissions while providing energy efficiency in the form of New Renewable Energy (EBT). The Company’s initiative aligns with the Astra Agro Sustainability Aspirations 2030 portfolio roadmap strategy.
“Methane capture can reduce methane gas emissions from Palm Oil Mill Effluent (POME) to zero. The Company also maximizes Warehouse Management System (WMS) activities. Meanwhile, the Company has reduced greenhouse gases (GHG) by 126.33 kilotons of CO2.” Said Astra Agro President Director Djap Tet Fa.
Djap Tet Fa added that the Company has implemented a replanting program covering 5,052 hectares, or an increase of 7% yoy in 2024. The replanting process uses superior seeds developed by the Company’s R&D team. This program, he continued, is important as an effort to intensify land without ignoring the balance of the ecosystem.
Innovation and technology are always applied in business processes to improve company performance. Astra Agro’s operational areas have utilized Drone Monitoring System (DMS) technology to monitor operational performance. This technology is supported by a room or control room that collects all monitoring data, making it easier for management to access field monitoring in real-time.
Changes in the Board of Directors and Commissioners of Astra Agro
In the third meeting agenda of the 2025 AGMS, the Shareholders approved the agenda of changes in the composition of the Company’s Board of Directors. Namely, Mr. Santosa replaced Mr. Chiew Sin Cheok as President Commissioner of the Company.
In the renewal of the composition of the Company’s Board of Directors, Mr Djap Tet Fa replaced Mr Santosa as President Director, while Ms Veronica Lusi Herdiyanti was appointed to replace Mr Djap Tet Fa as Director. Then, Mr Bandung Sahari replaced Mr M. Hadi Sugeng Wahyudiono, who retired, as the Company’s Board of Directors.
At this year’s AGMS, Astra Agro announced changes to the composition of the Board of Commissioners and Board of Directors as follows:
President Commissioner : Santosa
Commissioner : Johannes Loman
Commissioner : Aridono Sukmanto
Commissioner : Ratna Wardhani
President Director : Djap Tet Fa
Director : Tingning Sukowignjo
Director : Widayanto
Director : Eko Prasetyo
Director : Arief Catur Irawan
Director : Veronica Lusi Herdiyanti
Director : Bandung Sahari
The new composition of the Astra Agro 2025 board of directors, including the addition of female director Mrs Veronica Lusi Herdiyanti, further strengthens Astra Agro’s commitment to diversity and inclusiveness. Focusing on gender, the Company has driven performance toward resilience amid the volatility of the palm oil industry.
The Company supports the role of women, including opening opportunities for them to become leaders, as it is known that Astra Agro adheres to the principles of human rights and gender equality, with a primary focus on protecting women and children.
Astra Agro President Director Djap Tet Fa said that he will strive to maintain the Company’s performance, which has been built for a long time. In addition, Astra Agro’s consistency in carrying out sustainability commitments will always be maintained because it has become part of the Company’s Strategy.
“We believe that implementing Good Agricultural Practices (GAP) can always go hand in hand with the principles of sustainability. We believe that Astra Agro’s commitment to prioritizing both aspects can improve the Company’s performance in the coming years, supported by research and innovation that continues to be developed,” said the President Director of the Company, Djap Tet Fa.
