Indonesia: 130 Palm Oil Firms Yet to Raise Farmer Prices, Minister Says

Indonesian Minister of Agriculture Andi Amran Sulaiman stated that around 130 palm oil companies have yet to increase the purchase price for fresh fruit bunches (TBS) from farmers. He noted that a significant majority, estimated between 80% and 90% of the approximately 1,900 palm oil companies, have already adjusted their TBS prices in line with government directives.

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There are still about 130 companies left. So only a few out of 1,900 companies.

Sulaiman confirmed that the government, in collaboration with the Food Task Force, is actively monitoring the remaining companies to ensure they comply with the price adjustment mandate. The oversight also extends to companies that have already raised prices, to prevent them from subsequently lowering the TBS prices paid to farmers. "We are still checking. The others have increased, but we are monitoring to ensure they don't increase and then decrease again. We are monitoring all of Indonesia," Sulaiman said.

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We are still checking. The others have increased, but we are monitoring to ensure they don't increase and then decrease again. We are monitoring all of Indonesia.

The Minister acknowledged that TBS prices vary across different regions and companies, ranging from Rp 3,000 to Rp 3,600 per kilogram, depending on local conditions. Previously, the Ministry of Agriculture had urged palm oil companies to raise TBS purchase prices following an increase in global crude palm oil (CPO) prices. Sulaiman had previously described the decrease in TBS prices at the farmer level as an anomaly, given the rise in global CPO prices.

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Prices vary by region. Some are Rp 3,000 per kilogram, some are Rp 3,600 per kilogram, they differ.

In early June 2026, the Ministry of Agriculture had identified about 274 palm oil companies that had not yet adjusted TBS prices. The government initiated coordination and investigations into factors influencing prices in key palm oil-producing regions. Sulaiman emphasized that the drop in palm oil prices affects approximately 15 million farmers and requires immediate attention to safeguard their incomes. The ministry will continue to supervise the implementation of TBS price adjustments to protect the livelihoods of palm oil farmers.

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The decrease in palm oil prices affects approximately 15 million farmers and needs to be addressed immediately to protect people's income.