Company Profile

PT Astra Agro Lestari Tbk or Astra Agro (”The Company”), was established on October 3, 1988, under the name PT Suryaraya Cakrawala. In August 1989, the Company changed its name to PT Astra Agro Niaga. While primarily focused on palm oil plantation operations, the Company ventured into tea and cocoa plantations in Central Java in 1990. Additionally, it introduced cooking oil products under the brand “Cap Sendok” in 1992.

In 1997, PT Astra Agro Niaga changed its name to PT Astra Agro Lestari Tbk and listed its shares on the Indonesia Stock Exchange under the code AALI on December 9. PT Astra International Tbk owns 79.68% of Astra Agro’s shares, while the public owns 20.32%.

In 2013, the Company expanded its operations by entering into a partnership with a Malaysian company, Kuala Lumpur (KL)-Kepong Plantation Holding Sdn, Bhd, to establish a joint venture named ASTRA-KLK Pte, Ltd, a marketing office based in Singapore. Additionally, in 2014, the Company established a palm oil processing plant, PT Tanjung Sarana Lestari (TSL) in Pasangkayu Regency, West Sulawesi. This facility specializes in producing derivative products such as RBDPO, Olein, Stearin, and PFAD, primarily targeting export markets in China and the Philippines.

In 2015, the Company acquired a 50% stake in a refinery owned by KL-Kepong Plantation Holding Sdn, Bhd, located in Dumai, Riau Province. The Company also established a Palm Kernel Oil (PKO)processing plant through its subsidiary, PT Tanjung Bina Lestari (TBL), in 2017, located in West Sulawesi.

To enhance operational processes, the Company pursued innovation by establishing NPK fertilizer mixing plants through two subsidiaries: PT Cipta Agro Nusantara in Central Sulawesi in 2016 and PT Bhadra Cemerlang in Central Kalimantan in 2017.

To sustain its business, the Company consistently implements a replanting program to rejuvenate the plant and increase palm oil production in all Astra Agro plantations in the future. Currently, Astra Agro’s plantations cover a total area of 285,387 hectares located in Sumatra, Kalimantan, and Sulawesi. The Company’s plantation comprises a core estate covering 213,158 hectares and a plasma estate covering 72,229 hectares.

In 2022, the Company reaffirmed its commitment to sustainability by launching the Astra Agro Sustainability Aspiration 2030 initiative, serving as the Company’s strategy in the same year. This sustainability initiative is aligned with the Sustainability Development Goals (SDGs) and in accordance with the principles of Environment, Social, and Governance (ESG). Astra Agro Sustainability Aspiration 2030 is implemented through 12 initiatives summarized in the Triple-P Road Map Strategy, namely Portfolio, People, and Public Contribution with Good Corporate Governance (GCG) as the key enabler.

As part of the Company’s commitment to sustainability, the Company has complied with established sustainability standards, including the Indonesian Sustainable Palm Oil (ISPO). Furthermore, Astra Agro has become one of the first companies to obtain ISPO in 2012 in one of the Company’s subsidiaries. Almost all of the Company’s subsidiaries have been ISPO certified. In addition, some of the Company’s subsidiaries have also obtained International Sustainability and Carbon Certification (ISCC).

To address future challenges, the Company consistently refines and adapts its business strategies to enhance productivity and efficiency, and to diversify prospective business lines associated with the palm oil industry in an agile manner.

PT Astra Agro Lestari Tbk (the Company) is a company formed by merging several companies that developed the plantation industry in Indonesia more than 30 years ago. Starting from cassava plantations, then developing rubber plantations, until 1984, oil palm cultivation began in Riau Province. In 1988, the Company officially became an industry engaged in oil palm plantations and continued to develop into one of the oil palm plantation companies excellent by having good management. By 2021, the total area managed by the Company reaches 286,727 hectares spread across the islands of Sumatra, Kalimantan, and Sulawesi.

Since its establishment as a company managing oil palm plantations, the Company has built partnerships with the community through nucleus-plasma partnerships and Income Generating Activity (IGA) through the cultivation of oil palm and non-oil palm plantations. This collaboration ensures that the presence of oil palm plantations managed by the Company also provides excellent benefits for the surrounding community.

The Company’s close relationship with the community, of course, seeks to realize its mission in carrying out corporate social responsibility through CSR (Corporate Social Responsibility) activities which refer to 4 pillars, namely health, education, economy, and environment, so that it is expected to be able to contribute to the development and welfare of the nation.

Along with the growth of the Company’s business, in 1997, the Company became a public company, conducting an Initial Public Offering (IPO) on the Indonesia Stock Exchange (at that time, the Jakarta Stock Exchange and Surabaya Stock Exchange). The Company’s public share ownership currently reaches 20.32% of the total 1.925 billion shares outstanding. A substantial share price position reflects high investor confidence in the Company. In the trading ending on December 31, 2021, the Company’s share price with the trading code “AALI” was closed at Rp 9.500.

To expand the scope of business, the Company also develops downstream industry. The Company has operated a palm oil processing plant (refinery) in North Mamuju Regency, West Sulawesi Province, and Dumai, Riau Province. Processed palm oil products in the form of Olein, Stearin, and PFAD are made to meet the demands of the export market, including those from China, Malaysia, the Philippines, and South Korea. The Company has also operated an NPK fertilizer mixing plant in Donggala Regency, Central Sulawesi Province, since 2016 and Bumiharjo, Central Kalimantan Province, since 2017.

The Company’s efforts in developing its business into the downstream industry as palm oil processing through its subsidiaries, namely PT Tanjung Sarana Lestari, in 2014, located in West Sulawesi Province. As part of a subsidiary, PT Tanjung Bina Lestari, in 2017, located in West Sulawesi, to process PKO (Palm Kernel Oil). Not only domestically, the Company also has offices marketing in Singapore under the name Astra-KLK Pte. Ltd is a joint venture between the Company and Kuala Lumpur Kepong Plantation Holdings Sdn, Bhd (KLK Pte Ltd).

Facing challenges in the future, the Company focuses its business strategy on efforts to increase productivity, improve efficiency in all lines, as well as diversify its business in prospective sectors that are connected to its core business in the field of oil palm plantations.