PT Astra Agro Lestari Tbk (AALI) expects a total CPO production to reach 1.5 million tons this year.

The AALI 2020 annual report explains the plan to achieve CPO production has increased by around 4.89% from the previous year's realization of 1.43 million tons.

In 2020, the average international CPO selling price will increase by 26.3% to US$715 per ton from US$566 per ton. As a result, AALI's CPO selling price was increased by around 27.8% to Rp8,545 per kilogram (kg) from Rp6,689 per kg in 2019.

Apart from CPO, AALI projects fresh fruit bunch production (nucleus and plasma) this year to reach 4.8 million tons with an FFB yield of around 19.76 tons per hectare.

In 2020, the company's FFB production will decrease by around 7.7%, from 5.02 million tons to 4.63 million tons. The prolonged drought that occurred in 2019 triggered the fall in FFB production.

At the end of 2020, the total area of ​​planted oil palm plantations managed by the company, directly or indirectly, reached 287.6 thousand hectares, consisting of 215.4 thousand hectares of core plantations and 72.2 thousand plasma and primary cooperative credit members.

AALI targets total planted oil palm land this year to be around 287.6 thousand hectares, spread over 104.4 thousand hectares in Sumatra, 131.5 thousand hectares in Kalimantan, and 51.7 thousand hectares Sulawesi.

Management believes that the oil palm plantation sector remains prospective in the long term. Demand will still be stable considering the use of palm oil as a raw material for food, non-food, and a source of biofuel (biodiesel).