Ministry of Agriculture Initiatives for Fair Prices in Palm Oil Production

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General Director of Plantation, Andi Nur Alam Syah. Photo : Special

PALMOILMAGAZINE, BOGOR – In a proactive measure to safeguard smallholders and ensure equitable pricing for Fresh Fruit Bunches (FFB), the Ministry of Agriculture, under the General Directorate of Plantation, has issued regulations through the Minister of Agriculture (RMA). The FFB Purchasing Price Guidelines for Planters’ Production aims to prevent unhealthy competition among palm oil plantation companies.

In the continual development of palm oil plantations, there is a recognition of the need to refine and enhance the previous RMA Number 01/2018. Minister of Agriculture, Amran Sulaiman, underscored the importance of collaboration with various associations and institutions to address the challenges faced by smallholders.

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The General Directorate of Plantation has taken the initiative to conduct a public hearing on the Draft of RMA Number 01/2018. This inclusive meeting involved diverse stakeholders, associations, and relevant entities within the palm oil sector.

General Director of Plantation, Andi Nur Alam Syah said that plasma smallholders’ FFB in November 2023 mostly and significantly got more expensive up to 19% in average. It reached Rp Rp 367 per kilogram from the cheapest one in July 2022.

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Andi Nur emphasized that sustainable palm oil plantation development brought its own dynamics particularly about the implementation of RMA Number 01 / 2018. Many got the impacts particularly when exports were banned. He claimed to get constructive inputs by focusing on that the smallholders would get normal FFB price.

“In the implementation of the regulation, the partnership is the keyword, bot for plasma and independent (smallholders),” Andi said as quoted from the official page of Ministry of Agriculture, Monday (11/12/2023).

He also hoped that the regents and mayors, plantation associations, plasma development, and the smallholders themselves would support and succeed the implementation of FFB purchasing price of smallholders. It is hoped to realize sustainable plantation governance and make palm oil industries in Indonesia go forward. (T2)

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