PALMOILMAGAZINE, MEDAN – Fresh fruit bunch (FFB) prices for oil palm growers in North Sumatra increased during the June 17–23, 2026 pricing period, reflecting stronger crude palm oil and palm kernel values.
Based on the latest decision of the North Sumatra FFB Pricing Team, the benchmark price for oil palm trees aged between 10 and 20 years increased by IDR 159.30 per kilogram to reach IDR 3,879.39/kg.
Data released by the North Sumatra Plantation and Livestock Agency showed that FFB prices varied according to the age profile of the plantations. Oil palm trees aged three years were priced at IDR 3,274.88/kg, while four-year-old trees reached IDR 3,492.58/kg.
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Meanwhile, FFB from five-year-old plantations was valued at IDR 3,612.76/kg, six-year-old trees at IDR 3,717.85/kg, seven-year-old trees at IDR 3,683.83/kg, and eight-year-old plantations at IDR 3,814.65/kg.
Prices continued to strengthen for more mature plantations. Nine-year-old oil palm trees were set at IDR 3,848.21/kg, while the highest benchmark category, covering plantations aged 10 to 20 years, reached IDR 3,879.39/kg. Trees aged 21 years recorded the highest individual price at IDR 3,885.48/kg.
For older plantations, FFB prices gradually declined. Twenty-two-year-old trees were valued at IDR 3,850.75/kg, followed by 23-year-old plantations at IDR 3,795.25/kg, 24-year-old trees at IDR 3,680.10/kg, and 25-year-old plantations at IDR 3,574.53/kg.
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The downward trend continued for aging plantations, with 26-year-old trees priced at IDR 3,547.13/kg, 27-year-old plantations at IDR 3,495.83/kg, 28-year-old trees at IDR 3,441.69/kg, 29-year-old plantations at IDR 3,386.07/kg, and 30-year-old trees at IDR 3,330.44/kg.
The pricing team also set the reference crude palm oil (CPO) price at IDR 15,265.45/kg, while palm kernel prices were established at IDR 14,628.74/kg. The K index, which represents the proportion of revenue allocated to growers, was determined at 93.03%.
The increase in FFB prices provides positive momentum for smallholders and plantation companies in North Sumatra, one of Indonesia’s largest palm oil producing regions, as stronger downstream commodity prices continue to support farm-gate returns.
However, local authorities emphasized that the official FFB prices serve as reference prices determined by the provincial pricing team. Actual transaction prices received by farmers in the field may vary depending on location, transportation costs, and purchasing policies implemented by individual mills. (P3)
