Independent Smallholders Must Form Groups, After CPO Export Ban Is Revoked

Independent Smallholders Must Form Groups, After CPO Export Ban Is Revoked

Photo by : Arie Basuki / Sawitfest 2021

Palmoilmagazine, JAKARTA – Crude palm oil (CPO) and its derivative and palm cooking oil export ban was officially revoked and the exports effectively ran on Monday (23/5/2022). This is good news for every stakeholder in many provinces where palm oil plantations grow in Indonesia, namely in South Sumatera.

Analysis of PSP Madya Plantation Agency of South Sumatera Province, Rudi Arpia said, the export ban impacted to fresh fruit bunch (FFB) price of the smallholders. Theirs was cheap, their production was in bad quality for the mills did not buy. Much CPO in companies’ storage tanks were not sold. The exchange from export in the form of Out Fee and citation was small in numbers.

“After the export ban revocation, the material to produce palm cooking oil would be more and would guarantee palm cooking oil price in the future. If palm cooking oil distribution and production can be improved and monitored, the violence and fraud would not happen again,” he said, via WhatsApp to Palmoilmagazine.

He also mentioned, it is time for independent smallholders to establish groups to get facilitations with the mills and they would get FFB price based on what the province decided. “The independent smallholders would have price guarantee and the mills would get guarantee of materials,” Rudi said. (T2)


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