East Kalimantan Plantation Agency Urges Smallholders to Form Partnerships to Address FFB Issue

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East Kalimantan Plantation Agency Urges Smallholders to Form Partnerships to Address FFB Issue. Photo by: Sawit Fest 2021 / Kusuma Wijaya

PALMOILMAGAZINE, SAMARINDA – To address the persistent issue of fresh fruit bunches (FFB) being manipulated by numerous middlemen, the East Kalimantan Plantation Agency is advocating for smallholders to form partnerships with (crude) palm oil mills. 

Ence Achmad Rafiddin Rizal, the Head of the East Kalimantan Plantation Agency, emphasized the importance of smallholders joining groups or unions to strengthen their negotiating position in FFB transactions.

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“This initiative is crucial because the pricing of FFB, determined by various sectors, will be accessible to plasma smallholders or plantations in partnership, including independent ones collaborating with mills,” stated Ence Achmad Rafiddin Rizal, as cited by Palmoilmagazine.com  via Antara on Wednesday (17/4/2024). 

Also Read: Kotim Smallholders Appreciate Regency Response to Complaints, Call for FFB Governance Regulation

The decision-making process regarding FFB pricing by multiple sectors aims to establish a fair profit distribution between smallholders and mills. Through collective action such as joining groups, unions, or forming partnerships with mills, smallholders can ensure that the FFB prices they receive are equitable and compliant with existing regulations.

Furthermore, Ence Achmad Rafiddin Rizal highlighted the recent increase in FFB prices observed from April 1st to 15th, 2024. FFB aged over 10 years saw a rise to Rp 2,667.50 per kilogram (kg), up from the previous period’s Rp 2,598.86 per kg. Additionally, crude palm oil (CPO) prices increased to Rp 12,500.10 per kg, while palm kernel prices rose to Rp 6,010.79 per kg. These developments are expected to enable smallholders to secure better prices for their produce and reduce their reliance on middlemen. (T2)

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