PALMOILMAGAZINE, JAKARTA – The Indonesian government’s efforts to protect millions of oil palm farmers are beginning to deliver tangible results, as fresh fruit bunch (FFB) prices across several producing regions show signs of recovery.
Agriculture Minister Andi Amran Sulaiman said most palm oil companies have now adjusted their FFB purchasing prices in line with market conditions after a series of government interventions involving the Ministry of Agriculture, Deputy Agriculture Minister Sudaryono, and the National Police Food Task Force.
The price recovery follows at least three intensive meetings between the ministry, palm oil companies, industry associations, and farmer representatives. The discussions were aimed at ensuring that FFB prices received by farmers better reflected actual market conditions after a sharp decline that was considered inconsistent with rising global crude palm oil (CPO) prices and the strengthening U.S. dollar.
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“FFB prices have increased. Previously, around 80–85% of companies had adjusted prices, and now the figure is probably close to 90%. For those that have not yet raised prices, we will continue to investigate them together with the Food Task Force,” Amran said, as quoted by Palmoilmagazine.com from the Ministry of Agriculture on Friday.
According to the minister, the development indicates that the government’s swift response to the FFB pricing issue is beginning to yield results. Earlier, approximately 270 companies were identified as not having adjusted their purchasing prices in accordance with prevailing market conditions. That number has now fallen significantly to around 130 companies.
“Previously there were around 270 companies. Now there are only about 130 remaining. The number continues to decline. Those that have not adjusted prices are still being monitored and inspected. The signal is positive, but we will continue monitoring nationwide to ensure prices do not rise temporarily and then fall again,” he said.
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Amran emphasized that the government’s role does not end with the current price recovery. Continuous oversight will be maintained to ensure that recent gains in FFB prices are sustained and that farmers are protected from unjustified price declines in the future.
He noted that supporting farmers remains a direct priority of President Prabowo Subianto’s administration. As a result, the Ministry of Agriculture and the Food Task Force will continue overseeing the palm oil supply chain to promote a healthier, more transparent, and fairer market environment.
The monitoring effort is also intended to safeguard the livelihoods of an estimated 15 million Indonesians who depend on the palm oil sector. The government believes farmers should be among the first beneficiaries when global CPO prices strengthen and market conditions improve.
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Earlier this year, authorities issued warnings to hundreds of companies that had not adjusted FFB prices in line with market developments. The Ministry of Agriculture and the Food Task Force subsequently conducted inspections and monitoring of companies suspected of purchasing FFB below reasonable market levels.
As a result, price improvements are now being reported in several key palm oil-producing regions. Local authorities have noted that FFB prices are gradually moving closer to, and in some cases matching, benchmark prices established by provincial governments, providing relief to farmers after a period of significant price pressure.
“We want a healthy palm oil ecosystem. Farmers should prosper, and businesses should prosper as well. Most importantly, farmers must not be disadvantaged. That is why monitoring will continue until prices become truly stable and the benefits are felt by palm oil farmers across Indonesia,” Amran said.
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With more companies complying with market-based pricing and government oversight continuing to intensify, authorities remain optimistic that the recovery in FFB prices will spread more evenly across the country’s palm oil-producing regions, strengthening farmer welfare and supporting the long-term sustainability of Indonesia’s palm oil industry. (P3)
