YIELD RESILIENCE AND INNOVATION (GRI 3-3) We view yield resilience as a core component of sustainable growth. Innovation that leads to higher productivity ensures shared economic benefits for IndoAgri and our smallholders. It also reduces pressure to convert additional land for agriculture. Our ISO 9001-certified Bah Lias (BLRS) and SAIN Research Stations specialise in developing high-yielding oil palm seeds capable of producing up to 34 tonnes of FFB per hectare. These seeds are used not just in our own plantations, but a portion is also sold externally to other growers and smallholders. In 2025, IndoAgri advanced several initiatives to improve oil palm resilience and productivity through sustainable practices. Field trials continued on the use of Trichoderma endophytes, natural soil-enhancing fungi that help release locked nutrients such as phosphate and promote root development. If successful, this approach could reduce reliance on chemical fertilisers and improve soil health. We also tested Trichoderma strains for their ability to protect palms against Ganoderma Basal Stem Rot (BSR), a major disease affecting oil palm. Early results show up to 81% disease reduction in nursery trials, and applications have begun in Central Kalimantan and South Sumatra. These treatments aim to extend palm lifespan and stabilise yields in challenging soil conditions. Research into genetic markers for Ganoderma resistance progressed, with several promising candidates identified for future validation. Additional efforts included monitoring pest populations, developing bio-based controls, and exploring novel palm traits to improve harvesting efficiency. To monitor oil palm health and leaf nutrient status, we use Sentinel satellite imagery and apply the Normalised Difference Vegetation Index (NDVI) along with raster band analysis to conduct remote assessments. We leverage the use of unmanned aerial vehicles (UAVs) to increase detailed surveying and assessment of ground conditions throughout our estates. In 2026, IndoAgri will focus on several research initiatives to enhance crop resilience and operational efficiency. A key priority is developing new carrier materials for Cordyceps that allow long-term storage at room temperature without compromising spore quality. This innovation would eliminate the need for costly -20°C freezer facilities, making biological pest control more practical and scalable. Other planned activities include refining sugarcane tissue culture methods for large-scale planting, optimising gene markers to identify high oil-to-dry mesocarp palms early in growth, and expanding barn owl breeding for natural rodent control. Breeding of natural pest control at Bah Lias Research Station, Simalungun, North Sumatra. Nimfa Sycanus, the assasin bugs of nettle caterpillar and bagworm on oil palm. 42 Indofood Agri Resources Ltd. Sustainability Report 2025 Sourcing Appendix Product Community People Environment Our Business Our Approach At a Glance CEO Statement
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