Palm oil farmers prefer partnership-based regulation over moratorium

Indonesian palm oil farmer organizations are opposing a plan by the Jambi provincial government to implement a moratorium on new palm oil mill construction. The Indonesian Palm Oil Farmers' Organization (POPSI) and the National Palm Oil Farmers' Network (JPSN) of Jambi Province believe a moratorium is not the right solution for improving the industry's governance.

Mansuetus Darto, Chairman of POPSI, stated that a moratorium could disadvantage independent farmers. He explained that fewer mills would mean longer distances for farmers to transport their fresh fruit bunches (TBS), leading to higher shipping costs. This, in turn, weakens their negotiating position with buyers.

"We understand the Provincial Government's intention to improve plantation governance, but a moratorium is not the right instrument," Darto said. He noted that independent farmers currently bear transportation costs of around Rp 200 to Rp 300 per kilogram due to the long distances to mills.

While rejecting the moratorium, the farmer groups agree that the development of palm oil mills needs better management. They suggest the government should map existing mill capacities within each zone to prevent them from exceeding twice the available TBS supply. This, they argue, would prevent unhealthy competition among mills. Subadri, founder of JPSN Jambi Province, added that data collected on mills should be used to strengthen governance and partnerships, not to halt new construction.