Jakarta. Dharma Satya Nusantara (DSNG), the agribusiness company owned by Indonesian tycoon TP Rachmat, has earmarked Rp800 billion ($49.2 million) in capital expenditure for 2025. The funds will primarily support palm oil replanting over 5,000 hectares, renewable energy projects, and infrastructure upgrades.

DSNG Director Jenti said about 22 percent of the budget was already spent by the end of Q1 2025. In addition to replanting, the capex will cover routine maintenance of roads and factories, machinery renewal, and continued investments in renewable energy initiatives such as wood pellet and biomass plants.

“Replanting remains our top priority to ensure sustainable long-term production. This year’s target is to replant around 5,000 hectares,” said Jenti on Monday.

Despite a volatile commodity environment, DSNG entered 2025 with strong crude palm oil (CPO) prices, which reached nearly Rp 15 million per ton early in the year, well above early 2024 levels of under Rp 12 million. However, CPO prices faced pressure in mid-year due to rising supply, and the company projects an average 2025 price of Rp13–14 million per ton.

“DSNG’s performance is highly sensitive to CPO prices. With prices still relatively strong, we’re optimistic about improved financial performance, though we remain cautious of second-half pressures from increased supply and geopolitical uncertainty,” Jenti added.

The optimism is reflected in the company’s Q1 2025 results. DSNG booked a net profit of Rp367 billion, up 60 percent year-on-year, while revenue rose 20 percent to Rp2.7 trillion. Palm oil remained the main contributor, accounting for 88 percent of total revenue. Average selling prices also surged: CPO by 27 percent to Rp14,909/kg, Palm Kernel Oil (PKO) by 108 percent to Rp27,349/kg, and Palm Kernel (PK) by 101 percent to Rp10,814/kg. DSNG’s EBITDA hit Rp 861 billion in the first quarter.

DSNG President Director Andrianto Oetomo said the company is pursuing both organic and inorganic growth strategies. Organic efforts include replanting, machine upgrades, and adoption of smart farming technologies such as IoT and robotics.

“We’ve replanted 3,000 hectares so far and continue investing in productivity-enhancing innovations,” said Andrianto. On the inorganic side, DSNG remains open to acquisitions but with financial prudence.

“We’re preparing on two fronts, financial capacity to seize strategic opportunities, and human resource development, which is as crucial as technology,” he noted.

To counter climate challenges like El Niño and La Niña, DSNG is also stepping up its agronomic practices. Director Albertus Hendrawan said measures include using empty fruit bunches as soil cover and building water points to mitigate rainfall extremes. In flood-prone areas, water management systems are being improved to maintain productivity during dry seasons.