Rising Sales, Expanded Production Capacity and a IDR 217 Billion Palm Oil Contract Strengthen NPGF’s 2026 Momentum

Indonesian Palm Oil News (IPO News) — Indonesia’s fertilizer industry continues to expand alongside rising demand from the agricultural and plantation sectors. Against this backdrop, PT Nusa Palapa Gemilang Tbk (NPGF) is demonstrating increasingly strong growth momentum. The company is not only improving sales and profitability, but also expanding production capacity and strengthening its market penetration, particularly in the palm oil plantation sector.

Throughout 2025, NPGF recorded IDR 225.80 billion in sales, representing a 34.4% increase from the previous year. Gross profit reached IDR 55.08 billion, up 32.1%, while net profit rose 45.4% to IDR 4.34 billion. Earnings per Share (EPS) also increased 45.7% to IDR 1.34, compared with IDR 0.92 in the previous year.

According to NPGF President Director Ujang Suparman, the company’s performance reflected its continued efforts to expand market penetration, strengthen customer relationships and improve operational effectiveness.

“2025 was a crucial period for the Company to strengthen the foundation for long term growth. We continue to expand market penetration, strengthen customer relationships, and improve operational effectiveness to support sustainable business growth.”

NPK Granule Production Surges

NPGF’s growth has also been reflected in its operational performance. During 2025, the company’s NPK Granule production volume increased by 69%. This growth supported an expansion of production capacity from 72,000 tonnes to 96,000 tonnes per year.

The additional capacity represents a strategic move as NPGF responds to increasing demand across its target markets, particularly the plantation sector.

Ujang Suparman described the capacity expansion as an important step in strengthening the company’s competitiveness.

“Increasing production capacity is a strategic step to strengthen the Company’s competitiveness. With greater capacity, we are better prepared to meet market demand and seize growth opportunities in the agricultural sector.”

Palm Oil Emerges as a Key Market

The palm oil plantation sector is increasingly becoming an important market for NPGF, In its first half 2025 performance report, NPGF management stated that stronger demand for NPK Granule fertilizer, particularly from palm oil plantations and industrial timber plantations, was one of the key factors supporting the company’s increase in sales and profitability.

During the period, NPGF recorded sales of IDR 71.56 billion, representing 37.7% year on year growth, while net profit reached IDR 1.42 billion, an increase of 33.8%.

Ujang specifically highlighted the contribution of the plantation sector:

“Demand for our NPK Granule increased significantly, particularly from palm oil plantations and industrial timber plantations. This was one of the key factors driving the increase in the company’s sales and profit.”

The development indicates that palm oil is not merely an additional market for NPGF, but has become one of the sectors contributing to the company’s growing demand for its products.

IDR 217 Billion Palm Oil Contract

The momentum became even stronger at the beginning of 2026. In February 2026, NPGF announced that it had secured a IDR 217 billion contract from the palm oil plantation segment. The contract value is equivalent to approximately 97% of NPGF’s total 2025 revenue. The contract covers the supply of NPK fertilizer and plant nutrient formulations designed according to land characteristics and the different growth stages of oil palm.

For NPGF, the contract provides significant revenue visibility from the beginning of the year, while also allowing the company to plan production and distribution more effectively. Importantly, NPGF has not publicly disclosed the name of the plantation company involved in the IDR 217 billion contract. Therefore, based on the company’s official disclosure, what can be confirmed is that the contract originated from the palm oil plantation segment.

Ujang Suparman attributed the achievement to NPGF’s consistency in maintaining product quality and customer service. “NPGF’s success in securing a PO contract worth IDR 217 billion in early 2026 is the result of the company’s consistency in maintaining product quality, accurate distribution, and an approach focused on the needs of plantation customers.”

He added that the contract provides an important foundation for maintaining NPGF’s growth momentum throughout 2026. “This contract provides important initial capital for NPGF in maintaining growth momentum throughout 2026. With the contract base established since the beginning of the year, we are optimistic about sustainably improving operational performance.”

More Than a One Off Contract

NPGF management has indicated that the IDR 217 billion contract is not viewed as a one-off transaction, but rather as part of the company’s broader and ongoing sales pipeline. For 2026, NPGF is targeting approximately 20% revenue growth compared with 2025. The company has also secured a IDR 54 billion banking credit facility, which can support working capital requirements as the business expands.

With increased production capacity, contracts secured early in the year, and continued distribution strengthening, NPGF entered 2026 with a stronger business foundation.

Expanding the Product Portfolio

Beyond NPK Granule, NPGF is also continuing to develop its product portfolio. The company has introduced and expanded products such as MKP and KNO3, enabling it to address a broader range of crop nutrition requirements. This strategy demonstrates that NPGF is not relying solely on one product category, but is building a more diversified portfolio to serve different segments of Indonesia’s agricultural and plantation industries.

For the palm oil sector, the availability of fertilizer suppliers with growing production capabilities and increasingly tailored formulations is an important component in supporting plantation productivity.

2026: A Year to Maximize the Market

NPGF management has previously described 2026 as a period for maximizing market opportunities from the company’s existing production capacity. With annual factory capacity now reaching 96,000 tonnes, NPGF has greater room to serve existing customers while pursuing new contracts and expanding its market reach.

For NPGF, growth is not simply about increasing production capacity. The next challenge is to convert that capacity into sustainable sales, broaden its customer base and strengthen the company’s position in Indonesia’s fertilizer industry.

With rising demand from the plantation sector particularly palm oil and the IDR 217 billion contract secured at the beginning of 2026, NPGF has entered an important phase of growth.

From expanding production capacity to deeper penetration into Indonesia’s palm oil industry, Nusa Palapa Gemilang is building a stronger foundation turning fertilizer from simply a product into one of the company’s engines of growth.

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