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Palm Oil Farmers in South Tapanuli Voice Concerns Over TBS Price Disparities



Doc. InfoSAWIT/Sudarmadi, a palm oil farmer from Padang Sidimpuan, North Sumatra.
Palm Oil Farmers in South Tapanuli Voice Concerns Over TBS Price Disparities

InfoSAWIT, PADANG SIDIMPUAN – Sudarmadi, a palm oil farmer from Padang Sidimpuan, North Sumatra, has raised grievances regarding the challenges faced by smallholder farmers in Dusun Binasari, Angkola Selatan Subdistrict, South Tapanuli Regency.

His concerns revolve around price disparities and the limited inclusion of local communities in plasma schemes offered by major palm oil plantation companies operating in the region.

Sudarmadi's independently managed farm, located approximately 55 kilometers from Padang Sidimpuan, shares a border with land owned by PT Austindo Nusantara Jaya Agri (ANJ). According to him, smallholder farmers in the area depend heavily on ANJ, as it operates the only palm oil mill in the vicinity. However, he lamented that the price offered for fresh fruit bunches (TBS) is significantly lower than in other areas.

“For example, in Sosa, Batang Toru, or Mandailing Natal, the TBS price has reached IDR 3,000/kg. But here, we’re only offered IDR 2,500/kg. We hope ANJ’s management will review this and provide fairer prices to support farmers,” Sudarmadi told InfoSAWIT on Wednesday (20/11/2024).

Sudarmadi also highlighted the difficulties smallholder farmers face in developing their plantations without government support or guidance. “Many of us started from scratch with limited capital and minimal knowledge about fertilizers, pesticides, or marketing. If properly empowered, this sector could drive both local and national economic growth,” he said.

He criticized the plasma scheme allocation, which only benefits 50% of the local population. “I’ve lived in Dusun Binasari long before ANJ arrived, but not everyone in our village has been included in the plasma scheme,” Sudarmadi explained.

Sudarmadi and other residents have submitted complaints to both ANJ and the local government, but responses have been unsatisfactory. “ANJ says plasma matters are handed over to the government, while some local officials appear indifferent,” he noted.

Despite these challenges, Sudarmadi remains hopeful for new partnership opportunities. “If ANJ and the government reconsider, I believe there’s still room for additional partnership schemes. We’re not asking for charity—just fairness and recognition,” he emphasized.

Farmers in Dusun Binasari have stressed their commitment to resolving these issues peacefully. “We’ve never staged protests or resorted to violence. We hope this statement leads to meaningful changes for the community’s welfare,” Sudarmadi concluded.

The farmers' appeal underscores the need for equitable policies and collaborative efforts between corporations and local governments to support the livelihoods of smallholder palm oil farmers. (T2)

 

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