JAKARTA – PT Astra Agro Lestari Tbk (AALI) has allocated capital expenditure (capex) of IDR 1.4 trillion for the 2026 financial year.

President director Djap Tet Fa said the figure represents a significant 79% increase from the previous year’s realisation of IDR 782 billion.

“This budget increase is a strategic step to improve the company’s operational performance in the coming years,” he said during a public expose at Menara Astra in Jakarta on Wednesday (15/4).

Around 63.8% of the 2026 capex will be allocated to replanting activities to enhance land productivity and replace ageing crops.

This aligns with the company’s target to increase replanting to at least 6,000 hectares, compared with an average of 4,000–5,000 hectares annually over the past two years.

“We have the ambition to reach up to 8,000 hectares of replanting by the end of 2026,” he added.

This area represents around 4% of the company’s 208,000 hectares of planted nucleus estates. “We will carry out replanting across all our operational areas, including Sumatra, Kalimantan and Sulawesi,” Tet Fa said.

In addition, 19.8% of capex will be allocated to maintenance and development of mills and port facilities.

The remaining 16.4% will be used for non-plantation needs, such as procurement of transport vehicles and other operational supporting assets.

As previously reported by IDNFinancials.com, the company recorded a 31% year-on-year increase in net revenue to IDR 28.7 trillion.

The rise in revenue was driven by a 6% increase in crude palm oil (CPO) production to 1.2 million tonnes in 2025, as well as an 8% increase in kernel production to 252,000 tonnes.

Meanwhile, sales volume of CPO and its derivatives rose 13% to 1.8 million tonnes in 2025.

AALI’s improved performance was also supported by commodity market dynamics. Tight global CPO supply pushed the average selling price (ASP) up 11% to IDR 14,316 per kilogram in 2025.

However, higher cost of revenue and operating expenses weighed on net profit margin, which edged down to 5.37% in 2025 from 5.44% a year earlier.

Director Tingning Sukowignjo stressed the importance of cost discipline to maintain stable performance amid dynamic market conditions.

“The company continues to accelerate performance through optimising precision agronomy practices based on superior seedlings, cost control and spending discipline, as well as improving operational efficiency. This strategy is aimed at maintaining cost competitiveness in anticipation of CPO price volatility,” she said in an official statement.

In the first trading session today, as of 1:03 PM WIB, AALI shares rose 0.62% to IDR 8,125 per share. Over the past five days, the stock has gained 4.17% and surged 12.46% over the past month. (DK/ZH)