EDIBLE OILS & FATS REVIEW Operation in Indonesia The Edible Oils & Fats (EOF) Division produces palm oil products, margarine and palm-based derivatives (RBD palm stearin and palm fatty acid distillate) for consumer and industrial markets. The Division operates five refineries with a total annual processing capacity of 1.7 million tonnes of CPO. The consumer cooking oils are retailed under Bimoli, Bimoli Spesial and Happy, while the margarines are sold under Amanda, Palmia and Royal Palmia. The industrial cooking oils are supplied directly to Indofood and other food manufacturers, while the margarine and shortening products are marketed to confectioneries, bakeries and food manufacturers under Amanda, Delima, Malinda, Palmia and Simas. Sales and distribution of EOF products are supported by Indofood’s Distribution Group, which has an extensive network across Indonesia. More than 80% of EOF products are sold domestically, with the rest exported to countries across Asia, Africa, America and the Middle East. 2024 REVIEW The EOF Division remained resilient, maintaining profitability by boosting sales volumes of cooking oils and margarines to meet domestic demand. Furthermore, it implemented competitive pricing strategies that facilitated regular price adjustments, ensuring continued profitability while ramping up advertising and promotions. As a result, the Division saw a 9% increase in revenue to Rp12.3 trillion, driven mainly by higher sales volumes and selling prices. Operating profit rose to Rp817 billion from Rp647 billion in the previous year. IndoAgri’s vertically integrated business model, which ensured a stable supply of raw materials to the Division, was integral to the solid performance. In 2024, 78% of the CPO used in the production of cooking oils, margarine and shortening came from our own plantations. During the year, the market position of Bimoli cooking oils was successfully reinforced through competitive pricing. Digital marketing campaigns helped to enhance brand awareness and consumer engagement, keeping Bimoli top-of-mind. Additionally, the comprehensive trade campaign “Semua Jual Bimoli”, alongside consumer promotions, improved Bimoli’s visibility and availability across both general and modern trade channels. Likewise, Palmia consumer margarines saw significant sales growth, particularly in the modern trade wholesale segment. Brand-building efforts were bolstered by new TV commercials for Palmia Serbaguna and Royal Palmia, aired on major television stations. Consumer engagement was further strengthened through digital marketing and collaborations with key modern trade wholesalers. These efforts were complemented by retail promotions across the general and modern trades to drive market penetration and expand Palmia’s consumer base. The R&D team supported the EOF Division by enhancing the nutritional content of cooking oils and margarines to better meet the dietary needs of Indonesian consumers. Notable achievements included tailored cooking oil formulations for industrial users, multivitamin-enriched margarines for households, and the innovation of smarter packaging designs using more environmentally friendly materials. 2025 OUTLOOK Approaching 2025, we will continue to focus on driving the growth of EOF sales volumes by maintaining competitive pricing against key competitors and improving distribution to enhance product availability. We will also prioritise the refreshment of packaging designs and the promotion of flavoured consumer margarines, increase in-store visibility and strengthen brand leadership. To meet rising demands driven by Indonesia’s population and per capita income growth, we are expanding our Tanjung Priok refinery by adding a third production line, capable of processing up to 450,000 tonnes of CPO per year. Upon completion in the second half of 2025, the expansion will increase the total CPO refining capacity from 1.7 million tonnes to 2.2 million tonnes annually. Our certified refineries at Tanjung Priok Group Overview Financials Other information Sustainability and Governance Operation and Financial Review 22 Indofood Agri Resources Ltd.
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