PalmCo’s ROA Reaches 7.9 Percent, Signaling Strengthening Performance of Nusantara Holding Assets

Jakarta – The performance of PT Perkebunan Nusantara IV PalmCo shows significant strengthening. This PTPN III (Persero) subholding recorded an unaudited Return on Assets (ROA) of 7.9 percent in the 2025 financial year. This achievement not only exceeds the company’s internal targets, but also reflects fundamental improvements in asset management in the last three years.

Compared to 2024 which will be at the level of 5.3 percent, PalmCo’s ROA will grow by around 49 percent annually. This upward trend has even been visible since 2023, when the company’s return on assets ratio was still at 3.88 percent. This means that, within three years, the profitability of PalmCo’s assets has more than doubled.

The realization of 7.9 percent was also far above the company’s initial target which was set at 4.9 percent. Thus, ROA performance in 2025 was recorded at around 161 percent of the projection set by management at the beginning of the year.

PTPN IV PalmCo President Director Jatmiko K. Santosa assessed that this achievement was not solely driven by movements in palm oil commodity prices, but was the result of consistent structural improvements.

“The increase in ROA from 3.88 percent in 2023 to 7.90 percent in 2025 shows continuous fundamental improvements. Plant rejuvenation strategies and investment accuracy, operational digitalization, and cost efficiency are starting to have a direct impact on asset quality and productivity,” said Jatmiko in Jakarta, Saturday (31/1/2026).

In line with the BUMN Efficiency Agenda

Strengthening PalmCo’s performance is relevant to the government’s policy direction which emphasizes the efficiency and productivity of BUMN assets. President Prabowo Subianto on various occasions emphasized the importance of BUMN not only being large in terms of asset control, but also being able to generate profits commensurate with global corporate standards. ROA is one of the main indicators to measure this.

With an achievement of 7.9 percent, PalmCo is getting closer to the company’s long-term target in 2029, namely an ROA of 10 percent. “We understand the government’s mandate that every state asset provide added economic value. The current position gives confidence that the 10 percent ROA target is not impossible, it even has the potential to be achieved faster than the established road map,” said Jatmiko.

Capital Efficiency Strengthens

Apart from ROA, PalmCo’s capital efficiency indicators also show a positive trend. The company’s Return on Invested Capital (ROIC) in 2025 was recorded at 17.10 percent. This figure has increased by 34 percent compared to 2024 which was at the level of 12.73 percent, and much higher than the 2023 achievement of 8.17 percent.

The ROIC realization exceeded the company’s initial target of 12.22 percent. In the plantation industry which is known to be capital intensive, ROIC above 17 percent indicates the effectiveness of allocating capital expenditure and success in reducing capital costs.

According to Jatmiko, management is trying to ensure that every investment is placed in sectors with high returns, such as land intensification and strengthening the downstream sector. “Good ROIC shows that PalmCo’s growth was carried out with discipline. Expansion was carried out in a measured manner, with accountable quality capital expenditure,” he said.

Going forward, PalmCo will maintain its focus on increasing productivity at the plantation level as well as downstream development to reduce global commodity price volatility. Consistency in operational efficiency and asset management is considered to be the key to maintaining sustainable company performance.

This press release has also appeared on VRITIMES.