Eagle High Plantations Allocates IDR 1.66 Trillion for Capital Expenditure to Enhance Production Capacity

Eagle High Plantations, a key player in Indonesia's palm oil sector, has announced an ambitious capital expenditure plan of IDR 1.66 trillion for the years 2025 to 2029. This initiative is strategically aimed at enhancing production capacity and improving revenue margins. According to Choong Kamloong, the company's CFO, the investments will facilitate the expansion of operations, enabling Eagle High to reach a broader market.

The capital allocation is detailed as IDR 234 billion for 2025, increasing to IDR 342 billion in 2026, and peaking at IDR 439 billion in 2028. A significant portion of the funds will be directed towards the establishment of new palm oil mills and the modernization of heavy machinery. Notably, BWPT plans to construct two new palm oil mills in East Kalimantan and one in Papua, collectively expected to yield an annual capacity of 180,000 tons.

In tandem with these expansions, BWPT is also enhancing its kernel crushing plants in Central and East Kalimantan. The new facility in Central Kalimantan, set to commence in 2025, will process 200 tons of raw materials daily, producing high-value crude palm kernel oil and palm kernel meal. This investment is poised to yield higher extraction rates compared to traditional palm oil production.

To further bolster production, BWPT is committed to replanting and planting initiatives, targeting the cultivation of 7,000 hectares of new trees and replanting 14,585 hectares between 2025 and 2028. Collaborations with local farmers are also being strengthened to enhance the quality and yield of palm trees, with average oil extraction rates expected to rise significantly.

In its push towards sustainability, BWPT aims to integrate biogas and biomass energy systems across its mills in Central Kalimantan, drawing from the successful operation of a biogas power plant established in South Kalimantan. The company is pursuing various certifications to ensure compliance with global sustainability standards, which are essential for accessing premium markets, particularly in Europe.

Financially, BWPT remains optimistic about its growth trajectory, buoyed by rising crude palm oil prices and increased production. As of June 2025, the company reported revenues from palm oil and its derivatives totaling IDR 2.41 trillion, reflecting a substantial increase compared to the previous year. Despite rising costs, BWPT achieved a gross profit surge to IDR 780.14 billion, underlining its robust operational efficiency.

In summary, Eagle High Plantations is poised for significant growth, with strategic investments aimed at both expanding production capabilities and enhancing sustainable practices, ultimately driving economic benefits for local communities and stakeholders alike.