The Extension of Zero Export Levy Helped Increase Smallholders’ FFB Price

Foto: Adi Saputra/SawitFest 2021
The Extension of Zero Export Levy Helped Increase Smallholders’ FFB Price

InfoSAWIT, PALEMBANG – As one exchange provider, fresh fruit bunch (FFB) produced by the smallholders in South Sumatera Province keeps increasing in every year. For example, in 2019, the 10-20 was Rp 1.369,82/kg, in 2020 it was Rp 1.717,81kg, in 2021 it was Rp 2.502,13/kg

In 2022 it was once more than Rp 4.000/kg but drastically got cheaper because of palm cooking oil issues in this country. But after some policies (published by the government), it gets expensive again, palm cooking oil gets cheaper and the people in the province get the impacts.

Analyst of PSP Ahli Madya Plantation Agency South Sumatera Province, Rudi Arpian said, palm cooking oil was sold at Rp 18.000per liter in average but it is now sold at Rp 14.000 to Rp 15.000/liter. Just like in Pasar Lemabang it is Rp 14.000/liter and in Pasar Km 5 it is sold Rp, 15.000/liter 

“The decision of the central government to extend zero export levy for every palm oil product until 31 October 2022 is very good not only for 105.962 families who work in plantation sectors but also for the CPO mills and exporters. They are happy for the better FFB price, the CPO piles started to be normal again,” he said in Whatsapp group that InfoSAWIT recently got.

To maintain the good moment, the government came to a conclusion to multiply biodiesel allocation from 10.151.018 kiloliters to be 11.025.064 kiloliters.

The construction of red palm oil, the acceleration to Indonesian Sustainable Palm Oil (ISPO) certification, and also smallholders replanting program would be very good too.

By the extension of zero export levy, it is hoped, the export could be running normal and FFB price would be getting better. “FFB is this province is about Rp 2.189,82/kg and could be more expensive in the first period of September 2022,” he said. (T2)