Palm Oil Farmers Cheer Minister's Quick Action to Restore Prices

Indonesian palm oil farmers are welcoming the swift actions taken by the Minister of Agriculture, Andi Amran Sulaiman, to restore stable prices for fresh fruit bunches (TBS). The Minister's proactive approach has generated significant positive responses from farmers across Sumatra, Lampung, and Banten, who have seen gradual improvements in their earnings.

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The palm oil price had dropped very deeply, but now it is starting to rise again. We hope this meeting's outcome will bring the price back to its previous position or even better. The Minister is very pro-smallholder farmers, and we are confident that palm oil prices can increase again.

During a coordination meeting in Jakarta, farmer representatives shared their on-the-ground experiences and voiced their hopes for sustained price stability that ensures a decent livelihood. Ardiansyah Saragih, a farmer from North Sumatra, highlighted the renewed hope brought by the government's attention to the palm oil sector's pricing issues. "The palm oil price had dropped very deeply, but now it is starting to rise again. We hope this meeting's outcome will bring the price back to its previous position or even better. The Minister is very pro-smallholder farmers, and we are confident that palm oil prices can increase again," he stated.

Minister Sulaiman's presentation on the upward trend of global crude palm oil (CPO) prices, the strengthening US dollar, and robust export demand has bolstered optimism among farmers about the future prospects of the sector. This outlook provides a crucial psychological boost, encouraging continued investment and effort in cultivation.

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The prices following the plantation agency's reference are still decent. However, farmers who cannot sell to partner companies are forced to sell to middlemen at much lower prices. Therefore, we hope the prices can return to normal as before.

While prices are improving, some farmers noted disparities. Septriadi from South Sumatra mentioned that while prices following the plantation agency's reference are considered decent, farmers unable to sell to corporate partners often resort to selling to middlemen at significantly lower rates. Hulibarawan from Central Lampung reported prices nearing the provincial standard, expressing comfort with the current situation but emphasizing the need for continued price stabilization efforts. Farmers in Banten, however, still face lower prices at the factory gate, with net incomes further reduced by harvesting and transportation costs, though they acknowledge a gradual improvement compared to previous periods.

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We are already quite comfortable with the current situation. However, we hope that palm oil prices will remain stabilized because some time ago they dropped suddenly by almost Rp 1,000 per kilogram.