PALMOILMAGAZINE, BERAU – The price gap for fresh fruit bunches (FFB) of oil palm between independent and plasma farmers in Berau Regency, East Kalimantan, is once again under scrutiny. Subroto, Deputy Speaker of the Berau Regional House of Representatives (DPRD), criticized what he called a persistent injustice faced by independent farmers—even when they produce high-quality fruit.
In his statement, Subroto pointed out that palm oil companies often determine prices based on partnership status rather than fruit quality. “Independent farmers, though not part of plasma schemes, are capable of producing high-quality FFB. So companies should not discriminate solely based on partnership status,” he said, as quoted by Palmoilmagazine.com from Balpos (April 23, 2025).
He acknowledged that companies technically use a grading system to set prices, but in reality, even high-quality fruit from independent farmers is often undervalued. “If immature fruit can be rejected because companies demand high oil content, then why isn’t good-quality fruit from independent farmers priced fairly?” he questioned.
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Subroto praised the progress made by independent farmers, noting their adoption of unsubsidized fertilizers and plantation practices that mirror those of large companies. “These farmers have become much more self-reliant. They use non-subsidized fertilizers, and their yields are nearly on par with plasma farmers,” he added.
More concerning, Subroto said, is that Berau’s FFB prices are now less competitive than neighboring regions like East Kutai (Kutim). In fact, middlemen from Kutim are reportedly traveling to Berau’s coastal areas to buy FFB due to lower local prices. “Imagine, people from Kutim come all the way to Talisayan to buy because our prices are even lower than those offered by outside middlemen,” he revealed.
Given this situation, Subroto called on palm oil companies in Berau to urgently conduct a comprehensive review of their FFB pricing and grading systems. He stressed the need for fairness and transparency to ensure the region’s palm oil industry can grow sustainably and benefit local farmers.
“It’s time for companies to act fairly and transparently. Don’t just chase profits—consider the welfare of local farmers. That’s the key to a truly sustainable palm oil industry in Berau,” he concluded. (P2)
