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Sawit Sumbermas (SSMS) Speeds Up Capital Expenditure Realization This Year

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Bisnis.com, JAKARTA — Plantation issuer PT Sawit Sumbermas Sarana Tbk. (SSMS) has used 55 percent of its 2021 capital expenditure budget.

Corporate Secretary of Sawit Sumbermas Sarana Swasti Kartikaningtyas said the company has spent 55 percent of the total budget for capital expenditure. This year, SSMS has budgeted a capital expenditure of Rp. 550 billion.

Thus, the plantation issuer has spent IDR 302.5 billion in the first semester of 2021. The first half of the capital expenditure was spent partly to finance the construction and maintenance of plantation infrastructure.

“In addition to buying heavy equipment that supports the effectiveness of plantation operations, the main thing is the cost of maintaining plantation roads and road conditions to the company’s refineries, so as to maintain the quality of CPO owned by SSMS,” he told Business recently.

Swasti added that the company is open this year to expand. For example, increasing the area of ​​​​oil palm plantations, especially in Central Kalimantan. The total area of ​​the company’s nucleus plantations reaches 68,880 hectares.

“The company still opens opportunities if there is momentum for business development and profit. SSMS is open to adding plantation land and expanding oil palm plantations as long as it is in line with the sustainability principles that have been applied by SSMS,” he said.

Swasti added that SSMS opens opportunities for collaboration with plasma farmers, such as programs to increase production from community land. Currently, the average yield from the community is around 13 tons to 15 tons per hectare per year for a plant age of 10 years.

“SSMS conducts an agronomic study and provides the right dose of basic fertilizer, so that production from farmers increases to 18-22 tons per hectare,” he concluded.

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