PALMOILMAGAZINE, MEDAN – Oil palm smallholders in North Sumatra received a boost this week as fresh fruit bunch (FFB) prices continued their upward trend, supported by stronger crude palm oil (CPO) and palm kernel markets.
The North Sumatra FFB Pricing Team has set the FFB price for oil palm trees aged 10 to 20 years—the most productive category—at IDR3,451.13 per kilogram for the June 3–9, 2026 period. The latest figure represents an increase of IDR198.24 per kilogram compared to the previous pricing period.
The positive adjustment comes amid stronger downstream palm oil commodity prices. In the latest calculation, CPO was valued at IDR13,559.44 per kilogram, while palm kernel prices reached IDR13,105.10 per kilogram. The K index used in determining FFB prices was established at 93.03 percent.
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Industry observers noted that the increase provides additional support for smallholder incomes, particularly as global vegetable oil markets continue to show resilience and demand for palm-based products remains firm.
According to data released by the North Sumatra Plantation and Livestock Agency, FFB prices increased across most plantation age categories. Trees aged three years were priced at IDR2,914.10/kg, while four-year-old palms were valued at IDR3,107.89/kg. Prices for five-year-old and six-year-old plantations reached IDR3,214.73/kg and IDR3,308.08/kg, respectively.
For plantations aged seven years, the FFB price was set at IDR3,277.10/kg, while eight-year-old and nine-year-old palms were valued at IDR3,393.77/kg and IDR3,423.42/kg, respectively.
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The highest price during the current period was recorded for plantations aged 21 years, which reached IDR3,456.72/kg. Meanwhile, palms aged 22 years were priced at IDR3,425.98/kg, followed by 23-year-old plantations at IDR3,376.45/kg and 24-year-old palms at IDR3,274.19/kg.
For older plantations, prices gradually declined in line with productivity levels. FFB from 25-year-old palms was valued at IDR3,180.51/kg, while prices for 26-, 27-, 28-, 29-, and 30-year-old plantations were set at IDR3,156.24/kg, IDR3,110.71/kg, IDR3,062.64/kg, IDR3,013.28/kg, and IDR2,963.91/kg, respectively.
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With FFB prices once again surpassing the IDR3,400/kg threshold, the latest adjustment is expected to improve farmer profitability and encourage continued investment in plantation maintenance and productivity improvements. The stronger pricing environment also reflects the importance of stable CPO and kernel markets in supporting the economic performance of Indonesia’s palm oil smallholders. (P3)
