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PT SMART Tbk Shareholders Approve 2019 Annual Report

Posted: Jul 15, 2020 4 minute read Investor Relation 1461 views
  • Sales increased by 2% during the first quarter of 2020 while EBITDA reached IDR 502 billion
  • Company’s performance in the 1st quarter of 2020 was influenced by both decreasing production of palm oil products and increasing prices of raw materials

Jakarta, 15 July 2020 – Today, shareholders of PT Sinar Mas  Agro  Resources  and  Technology Tbk (”SMART” or ”the Company”) approved and ratified the Company’s Annual Report and Board of Commissioners’ Supervisory Task Report for the fiscal year ending 31 December 2019. The approval was granted during the Company’s Annual General Meeting of Shareholders (”RUPST”) held today.

On the same occasion, the Company’s shareholders also agreed to not pay out final dividends for the fiscal year 2019. This decision was made considering the current situation of economic uncertainties amidst the COVID-19 pandemic, to the extent that the Company has to implement prudent principles to guaranty its liquidity so as to fulfil its responsibilities towards shareholders, creditors and other stakeholders as a priority.

The RUPST also approved the new structure of the Company’s Board of Directors and Board of Commissioners for the period 2020-2025 as follows:

President Director : Jo Daud Dharsono
Vice President Director : Jimmy Pramono
President Director : Irwan Tirtariyadi
Director : Franciscus Costan
Director : DR. ING. Gianto Widjaja
Director : D. Agus Purnomo
Director : Yovianes Mahar
President Commissioner : Franky Oesman Widjaja
Vice President Commissioner : Muktar Widjaja
Vice President Commissioner : Rafael Buhay Concepcion, Jr.
Commissioner : Ir. Lukmono Sutarto
Independent Commissioner : Prof. DR. Teddy Pawitra
Independent Commissioner : Prof. DR. Susiyati B. Hirawan
Independent Commissioner : Ardhayadi SE., MA

In addition, SMART held a public disclosure regarding its performance during the first quarter of 2020. By 31 March 2020, the Company’s planted areas have amounted to 137,300 hectares, comprising 106,000 hectares of nucleus estates and 31,300 hectares of plasma estates. Of the total planted areas, 132,000 hectares are mature estates while 5,300 hectares are immature.

During the first quarter of 2020, the Company harvested 596,000 tonnes of fresh fruit bunches (FFB) which was 4% lower on a year-on-year basis than the harvest in 2019’s first quarter due to last year’s dry season and on-going replanting programme.

The FFB was further processed in 16 palm oil mills with annual production capacity of 4.35 million tonnes. The Company produced 136,000 tonnes and 36,000 tonnes of palm oil (“CPO”) and palm kernel (“PK”) respectively in the same quarter. Palm oil extraction rate was 21.4% whereas that of palm kernel extraction stood at 5.7%.


SMART’s net sales during the first quarter of 2020 increased by 2% amounting to IDR 9.62 trillion, particularly thanks to increased average selling price in the current period which is partially offset by decrease in total sales. The operating profit and EBITDA fell to IDR 127 billion and IDR 502 billion respectively, which was mainly influenced by rising selling expenses due to re-imposition of exporting fees and taxes as of early 2020 along with the hike in raw material prices. The Company recorded a net loss of IDR 1.41 trillion due to foreign exchange which was IDR 1.96 trillion in contrast with gain on foreign exchange totalling IDR 195 billion posted in the same period last year. Most of such loss on foreign exchange was unrealised loss from the translation of USD denominated debts to IDR.

Regarding the industry outlook, Vice President Director and Corporate Secretary Jimmy Pramono said, “From our point of view, CPO market price is safe from decreasing crude oil price thanks to its role as a key food ingredient. Nevertheless, price fluctuations will still occur especially amidst this period of uncertainty due to the COVID-19 pandemic. Current CPO price is sustained by this year’s limited production as a result of last year’s drought. In our opinion, CPO price will remain strong, particularly by the time this pandemic comes to an end.  Palm oil fundamentals in the long run remain robust as the most consumed vegetable oil, thanks to its versatility and low production cost.”

The current pandemic has shown the importance of food security and strong supply chain. Remote communities, such as those in where SMART operates, are highly vulnerable to such disturbance. The Alternative Livelihood Programme that the Company promotes has played a significant role in ensuring the availability of various food sources to support local communities around plantations. To date, the programme has assisted more than 40 communities in Indonesia through improved agriculture/plantation practices and by encouraging adoption of farming practices that range from organic vegetables to coffee.

SMART is also committed to fulfilling the requirement of personal protective equipment for both its employees and local communities around its operations during this pandemic. SMART is working closely with the Government of Indonesia to mitigate the impacts of COVID-19 outbreak by establishing collaboration with the Indonesian Chamber of Commerce and Industry (KADIN) and the Tzu Chi Foundation Indonesia.


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About PT Sinar Mas Agro Resources and Technology Tbk (“SMART”)
SMART is one of the leading palm-based consumer goods companies in Indonesia that operates with a total planting area 137,300 hectares (including plasma smallholders) as at 31 March 2020. It has integrated operations focused on the production of palm-based edible oil and fat.

Established in 1962, SMART has been listed on the Indonesia Stock Exchange since 1992. SMART is a subsidiary of Golden Agri-Resources Ltd (“GAR”), one of the world’s leading oil palm plantation companies listed on the Singapore Exchange.

SMART focus on sustainable palm oil production. Its primary activities in Indonesia include cultivating and harvesting of oil palm trees; processing of fresh fruit bunch into crude palm oil (CPO) and palm kernel; refining CPO into value-added products such as cooking oil, margarine, shortening, biodiesel and oleo-chemicals; as well as merchandising palm products throughout the world.

Apart from producing bulk and industrial oil, SMART’s refined products are also marketed under several brands such as Filma and Kunci Mas. The brand product of SMART is known for their high quality and dominate a significant market share in their respective market segments in Indonesia.

For more information about Sinar Mas Agribusiness and Food, visit

For more information, please contact

Beni Wijaya

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