PLANTATION REVIEW R&D in Indonesia The Plantation Division operates two oil palm R&D centres – SumBio in Bah Lias, North Sumatra, and PT SAIN in Pekanbaru, Riau. Both centres are certified palm seed producers, renowned for superior seeds, which are prized for their high-yielding qualities, drought tolerance and disease resistance. Staffed by experienced agronomists and researchers, the centres conduct extensive field work on crop yields, crop resilience, pest and disease control and estate management practices. Additionally, the Division operates a R&D facility for sugar cane in South Sumatra. Beyond these activities, the R&D centres are responsible for establishing guidelines and practices for the productive and sustainable use of limited land resources. These innovations contribute to sustainable oil palm farming in Indonesia, strengthening IndoAgri’s long-term competitiveness. The key practices include block-based farming, soil conservation using Vetiver systems, recycling by-products like EFB and POME into soil mulch and nutrient substitutes, and integrating natural pest management strategies. 2024 REVIEW In 2024, SumBio and PT SAIN’s crossbreeding programmes focused on developing new and high-yielding seed varieties with unique traits. Key achievements included identifying a potential Ganoderma marker and gene associated with Ganoderma resistance — a project conducted jointly with other companies. Additionally, the centres developed a molecular marker to differentiate virescens and nigrescens fruit types. They also continued to observe and introduce tenera clones of palm seeds, which combine virescens traits with long stalks to enable more efficient manual and mechanised harvesting. Aside from supplying seeds for internal planting and replanting programmes, the Division sold 10.4 million oil palm seeds to plantation companies and farmers in 2024. This represented an 7% increase in sales volume compared to the previous year. To maintain high seed quality and prevent dura contamination, Sumbio performed random seed checks using DNA analysis. To safeguard against counterfeits, we continued using UV markers for palm seed authentication. Other achievements included refining the fertiliser mix by incorporating compost to supplement organic fertilisers, and applying controlledrelease fertilisers on immature oil palms. To further enhance our cultivation methods, we introduced drone sprayers for controlling leaf-eating caterpillars, improving the efficiency and safety of our workers and environmental sustainability. We also continued to reduce chemical pesticide use across our plantations by establishing ecosystems of natural predators and parasitoids to combat pests such as bagworms, hairy worms and nettle caterpillars. Additionally, we intensified crop protection by using entomo-pathogenic agents (fungi, bacteria and viruses) as biopesticides, along with pest predators (e.g. Eocanthecona sp. and Sycanus sp.) and UV light traps, to manage leafeating caterpillars. Drone images, integrated with the GIS and ground GPS data, have enabled real-time monitoring of field conditions, providing precise assessments of the health of our oil palms. Additionally, regular spatiotemporal analyses have improved pest control and risk management outcomes. By correlating agronomic parameters with aerial data, we swiftly remedied field situations, achieving higher productivity and cost savings. For our Indonesian sugar operations, we continued to cultivate high-yield cane varieties, which have demonstrated commercial viability. The successful integration of drones for sugar cane ripening has also enhanced productivity and cost efficiency. 2025 OUTLOOK We will continue refining our seed-cultivation techniques and proven agronomic practices to enhance crop management and optimise planting densities. At the same time, we will develop in-house capabilities to analyse various markers associated with the Ganoderma project. To accelerate the key R&D programmes, we will actively pursue collaborations with universities and research institutions. Data from our soil hydrology studies, satellite sources and 3D topographic maps will be integrated with WebGIS to support remote decision-making. By computing precise fertiliser requirements and adjusting yield predictions on a block-by-block basis, WebGIS will significantly lower our ground-sampling costs. We will continue incorporating WebGIS into our SAP system to enhance oversight of our plantation operations and crop conditions. We will also leverage data analytics and machine learning to improve precision agriculture, optimise yields, reduce production costs and promote sustainable land use. High-yielding oil palm seeds produced by SumBio Group Overview Financials Other information Sustainability and Governance Operation and Financial Review 19 Annual Report 2024
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