Menthobi Karyatama aims to reach Rp1 trillion in revenue in 2024

PT Menthobi Karyatama Raya Tbk (MKTR), a palm oil plantation company, recorded a 41.6 percent year-on-year (YoY) increase in revenue, reaching IDR 1.00 trillion in 2024, compared to IDR 710.98 billion in 2023.

MKTR Finance Director Wawan Sulistyawan explained that the company’s revenue was primarily supported by a significant increase in Crude Palm Oil (CPO) and Palm Kernel (PK) prices, which rose by 18.3 percent and 24.3 percent, respectively.

In addition, revenue was also driven by increased production volumes of CPO and PK by 21 percent and 33.8 percent, respectively, following the full operations in 2024 of the newly acquired Palm Oil Mill (PKS) owned by its subsidiary, PT Khatulistiwa Sinergi Omnidaya (KSO), which was acquired at the end of 2023, Wawan stated during a Public Expose in Jakarta on Wednesday.

In line with the increase in revenue, the company posted a 70 percent YoY increase in operating profit, from IDR 62.679 billion in 2023 to IDR 106.386 billion in 2024. Meanwhile, net profit for the year reached IDR 52.2 billion in 2024, up 1.7 percent YoY compared to IDR 51.3 billion in 2023.

Following the profit achievement, the company agreed to distribute dividends amounting to IDR 18.21 billion, equivalent to 34.88 percent of the 2024 net profit of IDR 52.2 billion.

MKTR Commissioner Nadhif Kasyvilla explained that the company continues to strengthen its role in implementing best agricultural practices and sustainability principles by establishing a Biomass EFB Pellet production facility.

The company's initiative focuses on creating an environmentally friendly alternative fuel using palm oil empty fruit bunches (EFB) as raw material, as part of its efforts to realize a green industry and support the energy transition toward Net Zero Emissions (NZE).

“The company is currently in the early stages of constructing the new Biomass EFB Pellet production facility, which is scheduled for commissioning at the end of 2025,” said Nadhif.

He added that this initiative follows the establishment of a mini plant with a production capacity of 2 tons per day in 2024.

From the limited production in 2024, the company has produced high-quality Biomass EFB Pellets with high calorific value and low potassium and chlorine content, making them safe for industrial fuel use, especially for coal-fired power plants (PLTU).

“The processing of palm oil by-products—specifically EFB—into EFB Pellets demonstrates MKTR’s consistent innovation that positively contributes to the industry and promotes green energy transition development in Indonesia,” Nadhif stated.

In addition to providing a green industry solution, this innovation also creates a new revenue stream for the company as part of its strategic steps for sustainable and long-term growth.

“We are optimistic that our ability to create added value through innovation and the production of eco-friendly products will also bring positive value to the company’s business,” Nadhif continued.

Previously, the company succeeded in launching an innovation called GreenGrow, an organic fertilizer brand produced by its subsidiary, PT Menthobi Hijau Lestari (MHL).

GreenGrow became a pioneer in granular organic fertilizer made from EFB, which is officially registered, licensed for distribution by the government, and has obtained a Domestic Component Level (TKDN) certificate from the Ministry of Industry.

MKTR President Director Harry M. Nadir stated that the company will also optimize its assets to drive business performance growth in 2025, including the Kernel Crushing Plant (KCP), which will begin full operations in 2025 after its inauguration in the second half of 2024.

He explained that the KCP facility will process palm kernels into palm kernel oil, which has a high market value. The production process will run 24 hours a day and is targeted to produce up to 400 tons of CPKO in 2025.

“The company has set out a series of integrated strategies to strengthen its business fundamentals in the short, medium, and long term. The main focus is asset optimization, product innovation, and sustainable agribusiness expansion to achieve consistent and competitive business growth,” said Harry.

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