General Meeting of Shareholders 2022

 

PT Sawit Sumbermas Sarana Tbk (SSMS) today held its Annual General Meeting of Shareholders and Extraordinary General Meeting of Shareholders and continued with Public Exposure at The Langham Hotel, Jakarta.

 

The agenda of the AGMS is:

 

1. Approval of Annual Report and Annual Financial Report for Fiscal Year 2021. 

2. Approval of The Use of The Company's Net Profit for fiscal year 2021. 

3. Approval of Appointment of Public Accountants and/or Public Accounting Firms for fiscal year 2022

 

The meeting continued with the agenda of the EGMS:

 

- Application for Approval for Guarantee of Most of the Company's Assets or Assets and/or Subsidiaries of the Company.

 

After the implementation of the GMS, SSMS conducted online a Public Presentation, where the Company reported proud performance results throughout 2021.

 

On the occasion, SSMS President Director Nasarudin Bin Nasir explained, "As global and national economic conditions begin to recover from the impact of the COVID-19 pandemic, the Company has not only managed to maintain positive performance, but was able to provide more achievements. This is characterized by volume growth in terms of sales grew 29.72% yoy reaching Rp5.20 trillion."

 

The Company's profit also showed a proud development where net profit increased by 162% from Rp580.53 billion in 2020, to Rp1.53 trillion in 2021. Achieving positive performance is inseparable from SSMS' efforts to continue to strengthen strategies and improve innovation to achieve quality products, focusing on increasing product added value, optimizing production and sales levels, and efficiency in every policy.

 

Nasarudin continued, throughout 2021, the Company was able to produce 444,720 metric tons of CPO, or recorded a slight decrease of 0.77% compared to 2020 production of 448,185 metric tons, and below the production target set at 527,425 metric tons. This decrease is mainly because the Company purchases fresh fruit bunches (FFB) from outside which is quite a lot, as well as high rainfall, thus affecting the process of fertilizing crops that interfere with productivity.

 


SSMS plant productivity including at a young age, the average age of 13 years which is included in the peak performance, with good continuity of care in carrying out fertilization, SSMS can record production results that continue to increase in the future.

 

The encouraging results throughout 2021 were inseparable from the increase in the Company's sales, on the same occasion, SSMS CFO Jap Hartono explained "the increase in CPO sales of SSMS increased by 20.20% or Rp4.40 trillion compared to 2020 which amounted to Rp3.66 trillion, the company recorded that palm kernel sales (PK) also increased by 90.68% or Rp240.88 billion compared to the previous year's sales of Rp126, 32 billion. Which also boasts an increase in sales of palm kernel oil (PKO) by 90.68% or worth Rp414 billion when compared to 2020 which is worth Rp257 billion.

 

SSMS is committed to continuously improving the quality of the products produced as one of the efforts to open up a wider market share. Better product quality will certainly increase the Company's competitiveness, especially in a highly competitive export market. In addition, in terms of its business strategy, SSMS will optimize existing land and prefer to acquire plantations or companies rather than open new land.

 

Until the end of 2021, SSMS business activities are supported by 9 (nine) subsidiaries, by managing integrated business activities consisting of 23 oil palm plantations, 8 (eight) oil palm mills (PKS), and 1 (one) biogas plant.

 

Sustainability

In terms of business sustainability, in 2021, the Company obtained additional ISPO and RSPO certification in its business unit, namely PT. Multi-Main Palm Oil (SMU) and PT. Tanjung Sawit Abadi (TSA). SSMS also managed to help more than 1,000 ha of land managed by smallholder farmers to obtain RSPO/ISPO certification. In addition, SSMS again received the Blue Proper award for the 4th time from the Ministry of Environment and Forestry (KLHK), namely PT Sawit Sumbermas Sarana, PT Kalimantan Sawit Abadi, and PT Mitra Mendawai Sejati.

 

CEO of SSMS Nasarudin added, "The Company has implemented business procedures that prioritize sustainability principles, among others by reducing the use of chemicals that are harmful to soil fertility and obtaining ISPO and RSPO certificates to ensure the management of SSMS plantations in accordance with applicable standards. To support the Government of Indonesia's policy in order to strengthen Indonesia's sustainable palm oil standards in the world market through the implementation of ISPO certification, SSMS is certain to add the acquisition of ISPO certificates in the first semester of 2022 through two subsidiaries, namely PT Menteng Kencana Mas (MKM) and PT Mirza Pratama Putra (MPP). In addition, this year PT Sawit Sumbermas Sarana Tbk (SSMS) has collaborated with Deloitte & Touche Financial Advisory Services Pte Ltd (DTFAS) to review sustainability and traceability performance to all suppliers (traceability). This is to improve the Company's operational and sustainability standards, and can monitor the traceability of all operational processes from upstream to downstream to consumers. The Company can mitigate risks to ensure product safety assurance to all consumers, as well as improve the quality and ensure the quality of its products."

 

GMS Results

The meeting led by the Board of Commissioners stated that the majority of shareholders had approved the entire agenda of the AGMS and EGMS of SSMS today, SSMS President Commissioner Bungaran Saragih stated, "The Board of Directors is expected to carry out what has been approved by the MANDATE of the GMS today. The Board of Commissioners also greatly appreciates the efforts of the Board of Directors and all its ranks in anticipating challenges and dynamic business developments in the future. The Board of Directors has demonstrated its commitment in advancing the Company's interests, and has carried out its duties and responsibilities in accordance with their respective functions and roles. The Board of Commissioners is committed to always providing direction to ensure the Company's business development runs well, in accordance with the expectations of stakeholders."