Mukomuko Agriculture Office Urges Palm Oil Companies to Align FFB Prices with Provincial Standards

Palm Oil Magazine
Harvesting palm fruit. Photo by: Sawit Fest 2021 / Imadul Auwalin

PALMOILMAGAZINE, MUKOMUKO – The Agriculture Office of Mukomuko Regency has called on all palm oil processing companies in the region to align their purchase prices for fresh fruit bunches (FFB) of oil palm with the official rates set by the Bengkulu Provincial Price-Setting Team.

“We recently sent letters to all companies, urging them to adjust their FFB purchase prices in accordance with the provincial pricing standard,” said Iwan Cahaya, Head of the Plantation Division at the Mukomuko Agriculture Office, as quoted by Palmoilmagazine.com via Antara on Saturday, April 12, 2025.

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Iwan highlighted a significant discrepancy between the provincial benchmark and actual prices offered by companies. For instance, the province has set the FFB price for 10–20-year-old oil palm trees at Rp3,100 per kilogram. However, many local companies are reportedly paying only around Rp2,700 per kilogram—or even less.

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“This pricing policy is valid until April 15, 2025, after which a new pricing meeting will be held,” he added.

Iwan also noted that the provincial price structure considers the age of the oil palm trees—an aspect often ignored by most local companies.
“Many companies apply a flat rate regardless of tree age, even though pricing should vary. Only fruit from trees under five years old, which are visibly smaller, tend to be priced differently,” he explained.

 

Recent Price Changes Among Companies

Out of 10 palm oil mills operating in Mukomuko, most have adjusted their FFB purchase prices downward. The latest changes are as follows:

  • PT Karya Sawitindo Mas: dropped from Rp2,710 to Rp2,560/kg
  • PT Mukomuko Indah Lestari: dropped from Rp2,710 to Rp2,560/kg
  • PT Karya Agro Sawitindo: dropped from Rp2,700 to Rp2,550/kg
  • PT Usaha Sawit Mandiri: significantly increased from Rp1,690 to Rp2,600/kg
  • PT Gajah Sakti Sawit: dropped from Rp2,760 to Rp2,610/kg
  • PT Daria Dharma Pratama: dropped from Rp2,770 to Rp2,670/kg
  • PT Surya Andalan Primatama: remained at Rp2,700/kg
  • PT Bumi Mentari Karya: dropped from Rp2,770 to Rp2,670/kg
  • PT Sapta Sentosa Jaya Abadi: remained at Rp2,570/kg

The Agriculture Office hopes companies will respond positively to the recommendation, in support of fair market practices and the welfare of oil palm farmers. The local government will continue monitoring FFB price developments to ensure compliance with applicable regulations. (P2)

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