PALMOILMAGAZINE, NAGAN RAYA — The Nagan Raya Regency Government has issued a firm directive requiring all palm oil mills (PMKS) operating in the region to purchase smallholders’ fresh fruit bunches (FFB) strictly at government-set prices, without exception.
The order was delivered directly by Nagan Raya Regent TR Keumangan during a formal meeting with PMKS executives at the regent’s office in the Suka Makmue Government Complex on Monday (January 26, 2026).
In his remarks, Keumangan made it clear that there is no room for bargaining, excuses, or tolerance for companies that buy community-owned FFB below the official benchmark.
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“I am stating this unequivocally. PMKS must purchase community FFB at the prices set by the government. There are no excuses and no justifications,” Keumangan said, as quoted by Palmoilmagazine.com from InfoPublik on Wednesday (January 28, 2026).
He emphasized that FFB prices directly affect farmers’ livelihoods, local economic stability, and the overall pulse of the regional economy. Any form of price manipulation, he said, is unacceptable.
According to the regent, the presence of palm oil mills in Nagan Raya should generate positive economic spillovers for local communities, not pressure or disadvantage oil palm smallholders.
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“PMKS must be good partners for the community and the local government. Their presence should bring prosperity, not anxiety. They should strengthen the people’s economy, not weaken it,” he stressed.
Keumangan noted that during nearly one year of his administration, smallholder FFB prices in Nagan Raya have frequently ranked among the highest in Aceh’s western and southern regions. However, he acknowledged that price manipulation still occurs, particularly ahead of certain periods such as meugang (the traditional pre-Ramadan and pre-Eid meat-buying days), Ramadan, and major religious holidays.
“This situation is a serious concern for us. That is why we summoned PMKS leaders today—to restore order and correct these practices,” he said.
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He further reaffirmed his commitment to enforcing the rules throughout his term, warning that the local government will not hesitate to impose strict sanctions, including suspending operations or revoking business licenses of mills proven to violate pricing regulations.
“Whoever violates the rules, I will not compromise. The regulations are clear,” Keumangan asserted.
During the same meeting, the regent also reminded companies holding cultivation rights (Hak Guna Usaha or HGU) not to act arbitrarily toward local communities, particularly regarding community-managed land. He underlined that companies are prohibited from coercion or intimidation without due process and lawful compensation agreements.
Concluding his address, Keumangan urged all PMKS to conduct their operations in full compliance with regulations and to maintain open communication with the regional government when facing operational challenges. This, he said, is essential to ensure business certainty, protect oil palm smallholders, and safeguard economic stability in Nagan Raya. (P2)
