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SPKS: DMO Palm Cooking Oil Should be Closey Superivised and Not Deliver Losses for Smalholders’ FFB Price

Chairman of SPKS, Sabarudin/doc infoSAWIT
SPKS: DMO Palm Cooking Oil Should be Closey Superivised and Not Deliver Losses for Smalholders’ FFB Price

InfoSAWIT, JAKARTA - Serikat Petani Kelapa Sawit (SPKS) claimed to closely supervise domestic market obligation (DMO) palm cooking oil which still runs until now. The expensive palm cooking oil in the late days or up to Rp. 15.000 per liter might happen for the economic law violation in the markets. The highest retail price that the government decided, was at Rp. 14.000 per liter or Rp. 15.500 per kilogram (kg). 

Chairman of SPKS, Sabarudin said that the government should firmly implement the regulation on palm cooking oil availability for the people and should be not more than Rp 14.000 per liter. He though the increasing price heading to Idul Fitri would be the vegetable oil business cycle in the world, including palm oil. Though in the early of 2024, crude palm oil (CPO) selling price has got increasing until now, it still relatively delivers profits for the planters, including smallholders.

Data from SPKS revealed that fresh fruit bunch (FFB) selling price is still at about Rp. 2.200 to Rp. 2.500 per kg. But some members of SPKS in Southeast Sulawesi Province still sell it at about Rp. 1.900 per kg. 

"Smallholders’ FFB selling price is relatively stagnant and does not drastically get better,” he said to InfoSAWIT

Sabarudin thought, CPO and its derivative export regulation that has conditions that DMO would be 1 to 4, is relevant still. Palm oil derivative industries in this country still need supplies from sustainable materials.

“DMO regulation is still relevant with palm oil downstream industrial needs,” he said.

He also continued, DMO is right on target. It is regulated based on export quota for the exporters. “The supplies in this country are well guaranteed and they are enough,” he told by saying though CPO selling price is in fluctuation, CPO average price still delivers profits for the planters.


"Smallholders’ Certain FFB Supplies”

SPKS hoped the supports from the government should confirm that CPO supplies would derive from smallholders’ FFB production. “FFB from smallholders should directly supply palm oil mills, always,” he said.

It is significant for smallholders to supply FFB so that it would reinforce the smallholders’ organizations, trainings in sustainable practices based on Indonesian Sustainable Palm Oil certification, and get confirmation in sustainable market absoption.

“ISPO certification for smallholders would be part of sustainable palm oil industries nationally,” he told.

In the future, ISPO certification should always continue and be developed by having jurisdiction approach and the collaboration among the central and regional governments, non-government organizations, industries, smallholders, and the people could always be running. “It is hoped it would involve many smallholders and people and ISPO certification would be more and more,” he said. (T1)