As climate volatility reshapes the economics of global palm oil, Golden Agri-Resources (GAR) has made one of its most consequential innovation bets in a decade. Its seed division, Dami Mas, has launched DxP Dami Mas MTK, the first drought-tolerant oil palm seed variety to be formally validated and approved for commercial sale by Indonesia’s Ministry of Agriculture—an industry milestone that could redefine productivity baselines across the world’s major palm-producing regions.

Developed over more than ten years by GAR’s innovation engine, the SMART Research Institute (SMARTRI), MTK is engineered to stabilise yields as dry spells grow longer, harsher, and more frequent. For a sector losing billions of dollars annually to water stress, the launch marks a critical leap forward in climate-smart genetics.

A Billion-Dollar Problem Meets Deep Science

Drought remains one of the most persistent—and financially punishing—risks to palm oil production. SMARTRI estimates that for every 100mm of water deficit, yields drop 8–10 per cent, collectively draining around $4.5 billion from Indonesia’s palm oil industry each year. In high-risk regions such as Lampung, prolonged dryness can cut productivity by up to 21 per cent.

DxP Dami Mas MTK was designed precisely to counter this threat.

Across multi-year field trials, the variety delivered at least 12 per cent higher yields under drought than standard commercial seeds. During severe climate events—including the 2015 El Niño and 2018 Indian Ocean Dipole—MTK’s performance advantage widened to more than 25 per cent.

“Climate change is no longer a distant scenario; it’s a balance-sheet reality,” said Dr. Jean-Pierre Caliman, Director of SMARTRI. “Commercial approval of MTK is an acknowledgement that science-driven breeding can give growers a practical, validated hedge against climate volatility.”

Screened From 40,000 Seedlings—Built for Extremes

The MTK breakthrough is the product of one of Indonesia’s most exhaustive oil palm breeding programmes. Over 1,800 mother palms were evaluated and more than 40,000 seedlings underwent High-Throughput Phenotypic Screening to measure drought-response traits through a proprietary Drought Factor Index (DFI).

From this pool, 14 seed families were advanced to field trials across South Kalimantan, Central Kalimantan, and North Sumatra, before MTK 1 and MTK 2 emerged as the top-performing commercial candidates. Importantly, MTK is the first oil palm seed variety in Indonesia to have its drought-tolerance performance independently verified by the Ministry of Agriculture’s scientific review panel, establishing a new regulatory benchmark for climate-resilient planting material.

A Productivity Lifeline for Growers

For growers—from commercial estates to smallholders—the advantages are immediate: more stable yields, improved oil extraction quality, and better income predictability as rainfall patterns become increasingly unreliable.

“These seeds extend our long-term commitment to farmer-centric innovation,” said Suryanto Bun, CEO of Dami Mas. “By improving productivity under stress, MTK gives growers a buffer against climate risk and strengthens livelihood resilience.”

Initial seed deliveries will begin in early 2026, with Indonesian growers prioritised. GAR also anticipates strong uptake from West Africa, Latin America, and India, where drought-linked yield volatility is intensifying.

Toward a Climate-Secure Palm Oil Future

With MTK, GAR is positioning itself at the intersection of climate adaptation and next-generation agronomy—an area likely to define the competitive dynamics of the palm oil sector through 2030 and beyond.

“This seed represents the future of oil palm cultivation,” Dr. Caliman noted. “Our objective is straightforward: deliver innovations that safeguard productivity, protect livelihoods, and build a more sustainable industry.”

As drought risk accelerates globally, DxP Dami Mas MTK could mark the start of a new generation of climate-aligned palm genetics—one capable of strengthening the long-term resilience of one of the world’s most essential agricultural commodities.