PALMOILMAGAZINE, PALEMBANG – Fresh fruit bunch (FFB) prices for oil palm growers in South Sumatra maintained their upward momentum during the second half of June 2026, with the provincial pricing committee setting the benchmark price for mature plantations at IDR 3,723.87 per kilogram.
The new pricing, which applies for the June 16–30 period, was determined by the South Sumatra FFB Pricing Team. Oil palm trees aged between 10 and 20 years, considered the most productive category, received the highest price level during the period.
The strong FFB performance was supported by stable crude palm oil (CPO) prices and favorable downstream market conditions, helping sustain returns for growers across one of Indonesia’s major palm oil-producing provinces.
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In addition to the FFB benchmark, the pricing committee established the CPO reference price at IDR 14,946.47 per kilogram. Palm kernel prices were set at IDR 12,225.52 per kilogram, while palm shell prices reached IDR 17.94 per kilogram.
According to data from the South Sumatra Plantation Agency, FFB prices for three-year-old oil palm trees were set at IDR 3,139.48 per kilogram. Four-year-old plantations were valued at IDR 3,236.90 per kilogram, while five-year-old trees reached IDR 3,380.97 per kilogram.
For plantations entering their prime production years, six-year-old trees were priced at IDR 3,420.53 per kilogram, seven-year-old plantations at IDR 3,419.52 per kilogram, and eight-year-old trees at IDR 3,534.74 per kilogram. Nine-year-old plantations recorded a price of IDR 3,601.32 per kilogram.
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The highest benchmark remained the 10–20-year-old category at IDR 3,723.87 per kilogram. Meanwhile, 21-year-old plantations were priced at IDR 3,712.24 per kilogram and 22-year-old trees at IDR 3,718.55 per kilogram.
Prices gradually declined for older plantations as productivity levels diminished. FFB from 23-year-old trees was valued at IDR 3,692.39 per kilogram, while 24-year-old and 25-year-old plantations were priced at IDR 3,587.13 per kilogram and IDR 3,598.49 per kilogram, respectively.
Further declines were recorded for aging plantations, with 26-year-old trees priced at IDR 3,533.42 per kilogram, 27-year-old plantations at IDR 3,479.08 per kilogram, 28-year-old trees at IDR 3,418.29 per kilogram, 29-year-old plantations at IDR 3,351.70 per kilogram, and 30-year-old trees at IDR 3,280.05 per kilogram.
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The K index used in the pricing calculation was set at 93.00%, indicating the share of processed palm product value allocated to growers. The relatively high index reflects favorable revenue distribution for farmers.
Stable CPO prices and the strong K index continue to support farm-gate prices in South Sumatra, helping maintain income levels for smallholders and plantation operators in one of Indonesia’s largest palm oil-producing regions. (P3)
