Govt Urges National Palm Oil Industry to Stabilize Fruit Bunches Price for Farmers

RRI.CO.ID, Jakarta – The Indonesian Ministry of Agriculture has once again convened stakeholders in the national palm oil industry to maintain the price of fresh fruit bunches (FFB) for farmers. The meeting was attended by refineries, exporters, farmers’ associations, and state-owned plantation companies.

The Deputy Minister of Agriculture, Sudaryono, emphasized that the national palm oil trade must continue to operate normally during the transition period for the single-window export policy. According to him, global crude palm oil (CPO) prices remain strong.

“Global prices haven’t dropped, and demand hasn’t dropped either. Therefore, there is no reason for farmers’ FFB prices to fall,” said Sudaryono during a coordination meeting at the Ministry’s headquarters in Jakarta on Friday, May 29, 2026.

The Ministry noted that 139 palm oil mills were purchasing FFB at prices below those set by regional administrations. A total of 16 mills began adjusting their FFB purchase prices following the first meeting on May 26.

Sudaryono said that the government has agreed on six joint steps with palm oil industry stakeholders. One of these is ensuring that all trade activities continue as usual during the transition period of the single-window export policy.

The government also emphasized that PT Danantara Sumberdaya Indonesia (DSI) serves solely as the administrator and supervisor of the export policy. PT DSI has confirmed that it does not profit from palm oil trade transactions.

The policy transition period is set from June 1 to August 31. Full implementation of the single-window export policy is scheduled to take effect on January 1, 2027.

Additionally, refineries and exporters are requested to continue conducting transactions in accordance with market mechanisms. Trading prices are expected to be based on PT Kharisma Joint Marketing Nusantara (KPBN) auction prices and to avoid withdrawal practices that could disrupt price formation.

Local administrations are also urged to actively monitor the implementation of the Ministry of Agriculture Regulation No. 13/2024. This oversight aims to ensure that purchase prices for FFB from smallholder and independent farmers comply with regulations.

Should any violations be detected, the Ministry will coordinate with the Indonesian National Police’s Food Task Force to take follow-up action. This measure is intended to prevent practices that harm palm oil farmers.

The Deputy Chairman of the Indonesian Palm Oil Farmers Association (APKASINDO), Qayuum Amri, said that the impact of the coordination meeting is beginning to be seen on the ground. FFB prices in several regions have started to rise, though the increase remains limited.

“The increase in FFB prices is indeed still small, around IDR 50 per kilogram, but the results already indicate that this meeting was highly effective,” he said. (Panji/EN)