SPKS Claimed, CPO Fund Makes the FFB Price Cheaper

SPKS Claimed, CPO Fund Makes the FFB Price Cheaper

InfoSAWIT, JAKARTA –In 2018 the smallholders are worried about the fresh fruit bunch (FFB) price which drastically cheaper and the government does nothing.  According to SerikatPetaniKelapaSawit (SPKS),it takes place in many palm oil plantation centers where the FFB is Rp 500 – Rp 1.050 per kilogram.

This happens for the FFB buying scheme from the smallholders is not regulated well to make partnership between the independent smallholders and the companies as the FFB buyers. SPKS also noted, though the government has decided the FFB price reference, in the reality, the companies arbitrarily decide its price in the factories and the government never monitors the buying that the middlemen do that may cooperate with the factories. At least, 32% of the independent smallholders sell the FFB to the middlemen.

Besides in 2015, Palm oil Plantation Fund Management Agency (PFMA) was hoped to answer and handle every issue that they face. But as it run until now, PFMA works to support biodiesel industries only.

More less 90% of the fund taken by PFMA (more than 20 billion rupiah) are to subsidize biodiesel industries. The help to the smallholders is 2% only and for the replanting program. In 2017, SPKS sued this case to Supreme Court because the biodiesel subsidy is illegal for it is not the same with Undang-undang Perkebunan No. 39 / 2014.

The citation US$ 50/ton makes the local CPO price cheaper. If it gets cheaper, the FFB price in the smallholders would be cheaper too and make the FFB price in the smallholders about Rp 120-150/kg.

The smallholders are forced to help the industrial interest and the advantage is for the biodiesel industries only. The reasons for the new markets and to stabilize the price are the tricks of biodiesel industries because they could supply their own material.

“About this issue, SPKS takes the support in that PFMA could divert the fund subsidy to the smallholders. The petition has been supported by more than 7o thousand people,” SPKS told in the official statement toInfoSAWIT, Tuesday (25/9/2018) (T2)


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