General Director of Plantation: Be Aware to Get Sanction if Making FFB Cheaper

Foto By Arie Basuki/SawitFest 2021
General Director of Plantation: Be Aware to Get Sanction if Making FFB Cheaper

InfoSAWIT, JAKARTA – After President Joko Widodo banned the material of palm cooking oil (RBD Palm Olein) and palm cooking oil on 22 April 2022 that would run on 28 April 2022, General Directorate of Plantation Ministry of Agriculture published the Circulars Number 165/KB.020/E/04/2022 about Fresh Fruit Bunch (FFB) Price.

In the circulars, General Directorate of Plantation got some information from agencies dealing with agriculture, from smallholders (associations), and Penilai Usaha Perkebunan (PUP) officers in many provinces, telling that some mills decided to buy FFB within their own policy. FFB got cheaper about Rp 300 – Rp 1.400/Kg.

“This is potentially breaking the decision team of FFB Purchase Price produced by smallholders which was regulated by Regulation of Minister of Agriculture Number 01 / 2018 about Guidelines to Palm Oil Fresh Fruit Bunch (FFB) Purchase produced by Smallholders. This would be a concern and could potentially raise conflicts between the smallholders and the mills,” the circulars noted, as what InfoSAWIT got, Monday (25/4/2022).

General Directorate of Plantation firmly noted that crude palm oil is not included into palm oil export ban. Export bans are only to RBD Palm Olein (three tariff posts) (1). 1511.90.36 (RBD Palm Oil in net weigh not more than 25 kg; (2) 1511.90.37 (others, within Iodine 55 or more but less than 60); and (3) 1511.90.38 (others).

“In association with point number (1) above, we suggest your helps, dear governors to immediately: (a) send the circulars to every regent/mayor in palm oil plantation centers so that palm oil companies in your region not to decide smallholders’ FFB price by their own perspective (not based on Fresh Fruit Bunch decision in provincial level); (b) warn or deliver sanctions to the companies/mills that break the Regulation of Minister of Agriculture Number 01 / 2018,” the circulars noted. (T2)