PALMOILMAGAZINE, PALEMBANG — Positive news has emerged for palm oil growers in South Sumatra, as Fresh Fruit Bunches (FFB) prices strengthened again in the second half of December 2025. The South Sumatra Provincial FFB Pricing Committee agreed on a peak price of IDR 3,395.03 per kilogram for prime-age palms aged 10–20 years.
The pricing decision, which applies to the December 16–31, 2025 period, reflects relatively stable market conditions toward the end of the year. Data from the South Sumatra Plantation Agency compiled by Palmoilmagazine.com show that FFB prices were set on a tiered basis according to tree age.
FFB from three-year-old palms was priced at IDR 2,869.61/kg, four-year-old palms at IDR 2,958.30/kg, and five-year-old palms at IDR 3,093.45/kg. Prices for six-year-old palms stood at IDR 3,132.81/kg, followed by IDR 3,133.53/kg for seven-year-old palms and IDR 3,232.55/kg for eight-year-old palms.
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Prices continued to rise for nine-year-old palms, reaching IDR 3,289.59/kg, before peaking at IDR 3,395.03/kg for the most productive 10–20 year age group. Older plantations remained competitively priced, with 21-year-old palms at IDR 3,383.08/kg, 22-year-old palms at IDR 3,386.17/kg, and 23-year-old palms at IDR 3,362.06/kg. Meanwhile, palms aged 24 and 25 years were set at IDR 3,264.28/kg and IDR 3,272.88/kg, respectively.
In the same meeting, the benchmark price for crude palm oil (CPO) was fixed at IDR 13,942.46/kg, while palm kernel prices were set at IDR 10,412.31/kg. The shell value was determined at IDR 17.49/kg, with the K index set at 92.26%.
The strengthened FFB prices are expected to help sustain farmers’ purchasing power and production momentum in South Sumatra, while signaling broader stability in Indonesia’s palm oil industry amid ongoing global market dynamics. (P2)
