CPO Issuers Is Preparing to Face El Nino

A number of oil palm plantation issuers, CPO producers, are preparing to face extreme dry weather or El Nino. Head of Investor Relations of PT Sampoerna Agro Tbk (SGRO) Stefanus Darmagiri said that his party was also preparing to face El Nino.

According to kontan.co.id, the step taken by SGRO is to minimize the impact of El-Nino. SGRO remains focused on programs to increase palm oil productivity. The program is through intensification, such as maintaining the level of evaporation in plants. It is done to ensure that the water content in the soil is sufficient for the needs of the oil palm plants.

“Besides that, SGRO continues to focus on continuing other intensification programs. Such as water management systems, infrastructure improvements and mechanization,” said Stefanus (28/05/2023).

Corporate Secretary of PT Cisadane Sawit Raya Tbk (CSRA) Iqbal Prastowo also gave his comments. Iqbal said CSRA would speed up harvesting mechanization to deal with El Nino. CSRA management assesses that the El Nino phenomenon is almost certain to occur in 2023.

“But the most important thing is to maintain cash flow as well as possible. So that conditions can be anticipated,” said Iqbal.

Meanwhile PT Gozco Plantations Tbk (GZCO) will carry out technical matters for water conservation when it rains. Starting from small ditches, piles of fronds on the contour of the land and maintaining the land in a green state. GZCO also avoids excess open land without cover crops.

GZCO Director Andrew Michael Vincent does not deny the impact of a changing climate. From drought to flood problems, it has always been a concern in the world of oil palm plantations.

“Of course, with an estimated El Nino phenomenon, there will be ‘stress’ that plants will face in six to 12 months. Then there will be a decrease in fruit production, both the number of bunches and the weight of the bunches,” said Andrew.