DEAR SHAREHOLDERS, Amid escalating global tariff disputes and rising protectionism, Indonesia delivered economic growth of around 5% in 2025. This resilience was underpinned by stronger commodity exports and elevated commodity prices, supported by a broad-based recovery across key commodities, including CPO. Challenges of rising youth unemployment, informal sector participation and the global economic slowdown weighed on export demand. Consumer confidence fell to a three-year low, prompting more selective spending. Rising food prices and a weaker Rupiah continued to erode the purchasing power of the lower-income segment. The Central Bank cut interest rates by a cumulative 125 basis points to 4.75% in 2025 to support economic activity. The palm oil industry benefited from limited global supplies and the sustained momentum of Indonesia’s domestic biodiesel programme, which supported higher CPO prices throughout the year. By leveraging our integrated model, we translated these favourable conditions into higher average selling prices and increased sales volumes. The Group delivered an improved performance in 2025, achieving higher revenue and profit. Total revenue increased by 32% to Rp21.1 trillion in 2025 on higher average selling prices and sales volumes. Net profit after tax rose by 19% to Rp2.5 trillion on stronger operating results. As a company, IndoAgri continues to uphold the Code of Corporate Governance while integrating ESG considerations across plantation operations to support long-term sustainability. Our sustainability programmes are guided by established policies and frameworks, with ongoing monitoring and evaluation to ensure alignment with targets. A Sustainability Think Tank, chaired by the CEO, supports the Board in monitoring sustainability issues, managing climate-related risks and overseeing performance. Looking ahead towards 2026, we see a world of both caution and opportunity. Global economic growth is expected to decelerate amid prolonged uncertainties. Emerging and developing economies are expected to outpace advanced economies, while headline inflation is forecast to ease. Downside risks include escalating geopolitical tensions and rising protectionism. Indonesia’s outlook remains positive, with GDP growth projected to exceed 5% on the back of government priority programmes, higher wages, social assistance and sustained high commodity prices. These factors are anticipated to uplift consumer confidence and revitalise household consumption. On behalf of IndoAgri, I would like to express our sincere gratitude to shareholders for their continued trust and support. I also wish to thank my fellow Board members for their guidance, and all IndoAgri staff and management for their dedication and hard work. Your commitment has been fundamental to our achievements and resilience. PHILIP YEO LIAT KOK Chairman and Lead Independent Director The Group delivered an improved performance in 2025, achieving higher revenue and profit. CHAIRMAN’S MESSAGE 7 Annual Report 2025 Group Overview Operation and Financial Review Financials Other Information Sustainability and Governance
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