SUPPORTED BY ESG PERFORMANCE, ANJ TARGETS A CPO PRODUCTION INCREASE OF 15%

02 Feb 2022

 

Jakarta – PT Austindo Nusantara Jaya Tbk (ANJ) closed 2021 with positive performance achievements and won awards in the environmental, social, and corporate governance (ESG) fields. Two of ANJ's subsidiaries, PT Sahabat Mewah dan Makmur (SMM) and PT Austindo Nusantara Jaya Agri (ANJA), won the PROPER Emas award from the Ministry of Environment and Forestry (KLHK). ANJ has also received recognition from several ESG and openness performance appraisal bodies at the global level.

ANJ is ranked third out of 92 agricultural companies in the world assessed by Sustainalytics, the company's ESG risk rating agency. In terms of disclosure of commitments and actions related to forests by an international non-profit organization, the Carbon Disclosure Project (CDP), ANJ received the Leadership category, the highest category achieved by a palm oil company. The ANJ Group is also ranked 12th out of 100 palm oil producers, processors, and traders in terms of transparency of sustainability practices as assessed by the Sustainability Policy Transparency Toolkit (SPOTT).

"Trust and appreciation from stakeholders, including the government and the community, motivate us to continue to be at the forefront of ESG implementation and trigger the spirit of increasing production by paying attention to sustainability aspects," said Lucas Kurniawan, President Director of ANJ.

 

Targeting 15% CPO Production Volume

In 2021, ANJ managed to record a CPO (crude palm oil) production volume of 262,683 tons, an increase of 7.4% compared to the previous year of 244,485 tons. A total of 62,022 tons of the 2021 production results were produced in the fourth quarter. The increase in production has had a positive impact on the company's performance due to the high average selling price (HJR) of CPO in 2021. As of September 30, 2021, the HJR reached US$752 per MT, which allowed ANJ to post a net profit of US$26 million. "We estimate that the HJR booked by ANJ during the 2021 period will reach more than US$800 per MT, so we are optimistic that the operating and financial performance in 2021 will be excellent," explained Lucas.

ANJ targets CPO production volume growth of 15% for 2022 and targets an average increase of 8% per year over the next five years. "We are confident that we can achieve this growth target through the rejuvenation strategy implemented since 2014. In addition, sustainable agronomic innovations such as the application of fertigation technology and organic fertilizers have helped increase plantation productivity and mitigate risks related to climate change," he added. By implementing these innovations, ANJ can maintain soil moisture and control the impact of the rapidly increasing price of chemical fertilizer. The use of organic fertilizers has reduced dependence on inorganic fertilizers by up to 50%. Meanwhile, the application of fertigation has succeeded in maintaining the nutrient intake of oil palm plants and water humidity to maintain productivity.

 

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