PALMOILMAGAZINE, BANDA ACEH – The Aceh chapter of the Indonesian Oil Palm Smallholders Union (SPKS) has expressed full support for government and law enforcement efforts to curb the practice of purchasing oil palm fresh fruit bunches (FFB) below officially established regional prices.
SPKS Aceh Chairman Abubakar AR said the organization is prepared to assist the Special Criminal Investigation Directorate (Ditreskrimsus) of the Aceh Regional Police in identifying and reporting palm oil mills (PKS) and middlemen suspected of buying farmers’ FFB at prices that violate government regulations.
“We fully support the Minister of Agriculture’s directive to protect farmers’ FFB prices. SPKS Aceh is ready to work with the Aceh Police in monitoring palm oil mills and unscrupulous traders who purchase farmers’ FFB below the prices set by the government,” Abubakar told Palmoilmagazine.com on Monday, June 8, 2026.
According to Abubakar, the initiative aligns with instructions delivered by Agriculture Minister Andi Amran Sulaiman during a coordination meeting on developments and stabilization measures for palm oil FFB prices held at the Ministry of Agriculture in Jakarta.
Abubakar, who attended the meeting, said he heard firsthand the government’s commitment to take firm action against parties deemed responsible for harming oil palm farmers through unfair purchasing practices.
“The Minister instructed law enforcement agencies to investigate companies that disadvantage oil palm farmers. Starting June 9, inspections and investigations are expected to begin. This is an important momentum to improve fairness within the palm oil supply chain,” he said.
He noted that many smallholders have suffered financial losses because factories and intermediaries often purchase FFB at prices below government benchmarks, despite official reference prices remaining significantly higher than those received by farmers.
SPKS Aceh is therefore urging all palm oil mills in the province to comply with government-established pricing guidelines and refrain from practices that undermine farmer incomes. The organization said it is prepared to report any violations to law enforcement authorities and the Ministry of Agriculture.
“From now on, there should be no justification for purchasing FFB below the official price. If we find violations, we will report them so that legal action can be taken in accordance with applicable regulations,” Abubakar stressed.
He also highlighted longstanding complaints from farmers regarding weight deductions and other practices that reduce the value of their harvests. According to him, stronger oversight is needed because such practices have a direct impact on farmers’ earnings.
Abubakar emphasized that the welfare of millions of oil palm farmers should remain a priority for all stakeholders, including government agencies and industry players. Any party found violating the rules, he said, should face appropriate sanctions.
“This concerns the livelihoods of millions of oil palm farmers. There should be no more price manipulation or unfair deductions that harm farmers. We hope all palm oil mills comply with the regulations and conduct business fairly,” Abubakar concluded. (P2)
