PALMOILMAGAZINE, PADANG – Fresh fruit bunch (FFB) prices in West Sumatra continued to move higher during the third pricing period of June 2026, covering June 15–21, as stronger crude palm oil prices supported the province’s palm oil market.
The West Sumatra FFB Pricing Committee set the benchmark price for oil palm trees aged between 10 and 20 years at IDR 3,789.11 per kilogram, representing an increase of IDR 104.33 per kilogram compared with the previous period.
The higher prices reflect improving conditions in the palm oil industry, particularly as crude palm oil (CPO) values remain at relatively strong levels. The latest increase provides positive momentum for growers in West Sumatra, who have benefited from rising FFB prices over recent weeks.
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The pricing committee also established the provincial CPO reference price at IDR 15,063.98 per kilogram. Meanwhile, palm kernel prices were set at IDR 12,994.56 per kilogram, while palm shell prices reached IDR 17.25 per kilogram.
According to data from the West Sumatra Plantation, Food Crops, and Horticulture Agency, FFB prices for three-year-old oil palm trees were set at IDR 2,976.81 per kilogram. Four-year-old plantations were valued at IDR 3,145.53 per kilogram, while five-year-old trees reached IDR 3,332.14 per kilogram.
For plantations entering their productive years, six-year-old trees were priced at IDR 3,440.29 per kilogram, seven-year-old plantations at IDR 3,573.37 per kilogram, and eight-year-old trees at IDR 3,705.34 per kilogram. Nine-year-old plantations recorded a price of IDR 3,778.85 per kilogram.
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The 10–20-year-old category remained the main benchmark for pricing, receiving the highest value at IDR 3,789.11 per kilogram. Beyond this age range, FFB prices gradually declined as plantation productivity decreased.
FFB from 21-year-old trees was priced at IDR 3,644.18 per kilogram, while 22-year-old plantations received IDR 3,637.84 per kilogram. Prices for 23-year-old, 24-year-old, and 25-year-old trees were set at IDR 3,582.42 per kilogram, IDR 3,414.92 per kilogram, and IDR 3,375.97 per kilogram, respectively.
The K index used in the pricing formula was set at 92.60%, reflecting the share of downstream palm product revenues allocated to growers. The relatively high index indicates that farmers continue to receive a substantial portion of the value generated from palm oil processing.
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The strengthening of FFB prices in West Sumatra suggests that domestic palm oil markets continue to benefit from stable CPO prices and steady industrial demand. Higher prices are expected to support farmer incomes and sustain economic activity in the province’s palm-growing regions.
However, provincial FFB prices serve primarily as reference prices for partnerships between growers and palm oil mills. Actual prices received by farmers may vary depending on fruit quality, transportation costs, plantation location, and individual mill purchasing policies. (P3)
