A palm oil mill 2024 OUTLOOK Commodity prices are expected to remain highly volatile amid uncertainties fromweather conditions and geopolitical conflicts. Demand is likely to remain subdued due to weaker economic growth and challengingmacroeconomic factors, such as high inflation and interest rates. In 2024, the Plantation Division will maintain its emphasis on crop management activities to raise FFB yields. Focus will also be placed on improving cost control, pursuing innovations that elevate plantation productivity, and prioritising capital investments in critical areas. Efforts will be supported by optimising our manpower resources, reviewing the financing structure to strengthen our financial position, as well as ongoingmechanisation and IT initiatives. Barring unforeseen circumstances, we are on track to achieve 100% ISPO-certification for all nucleus estates and mills by the end of 2024, while remaining fully committed to our sustainability programmes. Amid rising costs, productivity and cost efficiency initiatives remained a key priority, with efforts focused on process streamlining, enhanced fertiliser application through nutrient analysis, preventive maintenance strategies, mechanisation programmes and usage of renewable energy sources. We remain fully committed to our sustainability and ESG goals. Material issues were diligently tracked and ensuring that all rolled-out sustainability progammes were executed as planned. During the year, the Group’s ISPO-certified production was 493,000 tonnes, representing 85% of total nucleus CPO production. In 2023, our rubber production fell by 9% to 4,700 tonnes due toweather-related impacts. 47% of our rubber products, comprising sheet rubber and crumb rubber, were sold domestically, while the rest were exported. Our sugar cane plantation in South Sumatra produced 50,600 tonnes of sugar in 2023, a year-on-year increase of 2%. In Central Java, our factory produced 23,900 tonnes of sugar, with 7,900 tonnes being our share and the balance being the share of the farmers supplying the cane. PLANTATION REVIEW Operation in Indonesia GROUP OVERVIEW OPERATION AND FINANCIAL REVIEW SUSTAINABILITY & GOVERNANCE FINANCIALS OTHER INFORMATION Indofood Agri Resources Ltd 18
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