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, widely recognised for superior, high-yielding, drought-tolerant and disease-resistant seeds. Our experienced agronomists and researchers conduct extensive field work on crop yields, crop resilience, pest and disease control and estate management. Additionally, the Division operates an R&D facility for sugar cane in South Sumatra. Beyond these activities, the R&D centres are responsible for driving sustainable land use and IndoAgri’s long-term competitiveness through various innovations. These include block-based farming and soil conservation using Vetiver systems, recycling of by-products like Empty Fruit Bunches and Palm Oil Mill Effluent into soil mulch and nutrient substitutes, and natural pest management strategies to reduce chemical reliance. 2025 REVIEW In 2025, we continued our crossbreeding programmes focusing on high-yielding seed varieties with unique traits. Key achievements included identifying a potential Ganoderma resistance marker and developing a molecular marker to differentiate virescens and nigrescens fruit types. We also continued observing and introducing tenera clones of palm seeds, which combine virescens traits with long stalks to improve harvesting efficiency. Aside from supplying seeds for internal planting, the Division sold 11.1 million oil palm seeds in 2025, a 7% year-on-year increase. To ensure quality, SumBio utilised DNA analysis for random seed checks and ultraviolet markers for authentication. Cultivation methods were enhanced through several biological and technological advancements to improve productivity and cost efficiency, supported by regular spatiotemporal analyses. These included: Fertiliser efficiency: We refined the fertiliser mix by incorporating compost and applying controlled-release fertilisers on immature oil palms. Drone technology: We introduced drone sprayers for controlling leaf-eating caterpillars, and integrated Geographic Information System (GIS) and Global Positioning System (GPS) data for real-time field monitoring. Biological controls: We reduced chemical pesticide use by establishing ecosystems of natural predators and using entomo-pathogenic agents (fungi, bacteria and viruses) as biopesticides, along with ultraviolet light traps. For the sugar plantations in Indonesia, we continued to cultivate high-yield cane varieties, and integrated drones for ripening to boost productivity and cost efficiency. 2026 OUTLOOK We will continue refining our seed-cultivation techniques and proven agronomic practices to enhance crop management and optimise planting densities. We will also continue our development of in-house capabilities for Ganoderma marker analysis and pursue strategic R&D collaborations with universities and research institutions. On the digital front, we will integrate our soil hydrology data, satellite imagery and 3D topographic maps with WebGIS to support remote decision-making. By computing precise fertiliser requirements and yield predictions on a block-by-block basis, WebGIS will lower ground-sampling costs. We will further incorporate WebGIS into our SAP system, leveraging data analytics and machine learning to optimise yields and reduce production costs. Lab activity at Bah Lias Research Station 17 Annual Report 2025 Group Overview Operation and Financial Review Financials Other Information Sustainability and Governance
RkJQdWJsaXNoZXIy NTkwNzg=