PALMOILMAGAZINE, JAKARTA — Sampoerna Strategic Group has officially divested its entire 65.721% shareholding in PT Sampoerna Agro Tbk (SGRO), selling it to AGPA Pte. Ltd., a subsidiary of POSCO International Corporation. The major corporate action marks a strategic shift for both parties amid the evolving landscape of Indonesia’s palm oil industry.
In an official statement released in Jakarta on Thursday, Sampoerna Group President Director, Bambang Sulistyo, said the decision followed an extensive review process and emphasized that SGRO is now “in the right hands.”
“We are grateful to have found a new home for SGRO. We believe the new owner will lead the company toward stronger growth prospects,” Bambang said, as quoted by Palmoilmagazine.com from Antara on Thursday (20/11/2025). He added that while investor interest in the Indonesian palm oil sector remains high, POSCO International was deemed the most capable of sustaining SGRO’s positive trajectory and delivering added value for stakeholders.
Bambang also expressed appreciation to all parties involved in the transaction. “This allows us to focus our resources on our existing business lines and explore other promising sectors in Indonesia,” he said.
POSCO International, a global South Korean company under the POSCO Group, has a strong track record across strategic sectors including trade, energy, steel, and agribusiness. In Indonesia, the group is widely known as PT Krakatau Steel’s partner in developing the integrated Krakatau POSCO steel plant in Cilegon, and is also active in energy development through the Pertamina Hulu Energi North East Java consortium.
In the palm oil sector, POSCO has been operating since 2011 through PT Bio Inti Agrindo in South Papua, managing oil palm plantations and three processing mills with a combined annual capacity of 210,000 tons. The company also runs a 500,000-ton-per-year palm oil refinery in Balikpapan, East Kalimantan.
The acquisition comes at a time when SGRO’s performance is on an upward trend. In the first half of 2025, the company recorded a 236.06% year-on-year surge in net profit, while sales grew by 45.18% compared to the same period the previous year.
Indonesia’s palm oil industry is also demonstrating strong performance in the global market, controlling around 60% of the world’s palm oil production and contributing nearly 50% of global CPO exports.
Despite divesting SGRO, Sampoerna Group reaffirmed its commitment to contributing to Indonesia’s economy through its other business pillars, including Bank Sahabat Sampoerna, Sampoerna Kayoe, Sampoerna Land, and the Putera Sampoerna Foundation in education and philanthropy.
“With Indonesia’s promising economic prospects, we will continue focusing on our strategic businesses while evaluating new opportunities. Education will remain a key pillar through the Sampoerna Foundation,” Bambang concluded.
Deutsche Bank served as the exclusive financial advisor to Twinwood for the transaction, while Baker McKenzie and its affiliated offices in Singapore and Indonesia acted as legal counsel. (P2)
