23/09/2025 (The Edge Malaysia), Jakarta - Indonesia's new state palm oil firm Agrinas Palma Nusantara is seeking to set up joint operations to manage its vast plantations as it makes efforts to boost output, chief executive Agus Sutomo told a parliamentary hearing on Tuesday.

Agrinas, a state-owned firm previously involved in construction, was converted into a palm oil company earlier this year and has so far been assigned to manage 1.5 million hectares (3.7 million acres) of palm oil plantations seized from firms and smallholders accused of operating illegally. Sutomo said the firm expects to manage around three million hectares by 2029.

"Everyday our output of fresh fruit bunches varied between 5,000 and 6,000 metric tons per day. In the near future we will invite partners to help us, and output is expected at 10,000-12,000 tons," Sutomo said.

Agrinas is aiming to produce 415,000 tons of crude palm oil in 2025 and more than double its production to 1.07 million tons next year.

"We estimated, with the additional assets, that output will reach 1.072 million tons in 2026," Sutomo said.

Of the 1.5 million hectares of plantations managed by the company, 509,644 hectares have been planted and 323,748 hectares not planted, with the rest still going through a verification process, he added.

Sutomo said under the joint operations, Agrinas plans to take between 40% to 45% of the revenue split with corporate partners, while taking 20% from smallholder partners.

"We consider joint operations firstly to immediately increase production, secondly to reduce costs. With joint operations, our cost would drastically drop, and our profit increase," Sutomo said.

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