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The Government’s Proposal to Purchases Smallholders’ FFB at Rp 1.600/Kg is the Loss for not the Same with Price Decision



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The Government’s Proposal to Purchases Smallholders’ FFB at Rp 1.600/Kg is the Loss for not the Same with Price Decision

InfoSAWIT, JAKARTA -  Organization/association of the smallholders joining in Persatuan Organisasi Petani Sawit Indonesia (POPSI), such as, Asosiasi Petani Kelapa Sawit Indonesia – Perjuangan (APKASINDO – Perjuangan); Serikat Petani Kelapa Sawit (SPKS), Asosiasi Petani Kelapa Sawit Perkebunan Inti Rakyat (ASPEKPIR), Jaringan Petani Sawit Berkelanjutan Indonesia (Japsbi) thought, what Minister of Trade, Zulkifli Hasan ordered to palm cooking oil producer to purchase fresh fruit bunch (FFB) produced by the smallholders at minimally Rp 1.600/kg potentially delivers loss for the smallholders in Indonesia because it is not the same with the regulation about smallholders’ FFB price decision which has been running for all these years.

Chairman of POPSI, Pahala Sibuea thought, Minister Zulkifli Hasan has mis-perception to tell that to palm cooking oil producers and purchase smallholders’ FFB at minimally Rp. 1.600/Kg. This is against Regulation of Minister of Agriculture Number 1 / 2018 which regulates about smallholders’ FFB purchase. The government should deliver statement based on the regulation, not betray the regulation itself.

“The smallholders are in trouble to survive and maintain their plantation. Their production gets cheaper less than Rp 1.000 per kilogram. In some regions it is even Rp 400 per kilogram. By this condition, the smallholders are difficult to survive,” he said, as in the official statement to InfoSAWIT, Thursday (30/6/2022).

He hoped, Ministry of Trade could propose the right solution and it is better to conduct force majeure (emergency) because many mills do not process their FFB for the full storage tanks and they do not purchase smallholders’ production. The government needs to evaluate the CPO levy, out fee for they are very expensive which is about USD 600 per ton, it means, if CPO is 1.100 USD per ton, the levy could be about 600 USD, it means, about 50 percent are for the citation only. (T2)


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