PALMOILMAGAZINE, JAKARTA – The Ministry of Agriculture has officially revised the regulations governing the trade of Fresh Fruit Bunches (FFB) for partner smallholders through Ministerial Regulation (Permentan) Number 13 of 2024. Signed by the Minister of Agriculture on November 20, 2024, this regulation replaces the previous Permentan Number 01/Permentan/KB.120/1/2018.
According to the regulation, the revisions aim to adjust the pricing mechanism for purchasing palm oil FFB and ensure mutually beneficial pricing protection for partner smallholders . The changes also seek to prevent unfair business practices and support the sustainability of palm oil plantations.
This step is expected to establish a more transparent and equitable trade system for both plasma and independent smallholders , who play a crucial role in the supply chain of the national palm oil industry.
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Chapter II of the regulation outlines the cooperation agreements between partner smallholders and palm oil mills (PKS). Article 2 mandates that PKS purchase FFB from partner smallholders based on mutually agreed contracts.
Article 3 categorizes partner smallholders into two groups: Plasma Smallholders , who collaborate with PKS in seed supply, technical assistance, training, harvesting, and FFB purchasing; and Independent Smallholders , who work with PKS primarily in the purchasing of FFB.
Partner smallholders involved in these agreements are required to possess land ownership documents, such as ownership certificates, statements of physical land control, or other documents as stipulated under agrarian and spatial planning regulations.
The government hopes this revision will improve the welfare of partner smallholders , strengthen the relationship between PKS and smallholders , and promote sustainable palm oil trade practices. Permentan Number 13 of 2024 is also expected to provide legal certainty and drive the development of a more inclusive and competitive palm oil industry.
Going forward, the implementation of this regulation will be key to building a more resilient and sustainable palm oil industry ecosystem. (P2)
