Be Aware of Mill that Would Break President’s Policy by Cutting of FFB Price

Be Aware of Mill that Would Break President’s Policy by Cutting of FFB Price

InfoSAWIT, JAKARTA – Prior on Friday (22/4/2022), President Joko Widodo did internal meeting to fulfill daily need supply in national level and decided to ban palm cooking oil materials and palm cooking oil that would effectively run per 28 April 2022.

The next day, some mills responded the policy by cutting of fresh fruit bunch (FFB) price without no discussion with some sides.

Serikat Petani Kelapa Sawit (SPKS) noted, per Monday (25/4/2022) FFB got decreasing up to Rp 1.000 (one thousand rupiah). “But some smallholders should get decreasing FFB price about Rp 400-600/kg. Not the same for all,” General Secretary of SPKS, Mansuetus Darto said, as in the official statement to InfoSAWIT, Monday (25/4/2022).

He also told the policy was not officially run. There is no official data about crude palm oil (CPO) production in this country that was not exported still.

The other thing is that how much capacity do bulking storages have from many companies in upstream sector (plantation), and in ports?

“If they are known, of course, the numbers would be known to storage CPO and when CPO would be no more. This could be the basic to decide how long we can run the policy. If the data is available, there will be no more overreacted and worry. It could happen that bulking storages are empty and the production keeps going. In reality, the production continues. It means, the tanks are running well too,” he said.

He told Indonesia was once production overload up to 4,5 million tons of CPO. “I think, our bulking storages are enough to get such numbers,” he said.

Unfortunately, the companies always want to get profits. Darto predicted, many stakeholders wanted to oppose what President Joko Widodo decided by making chaos in the field. This could happen to revoke the policy.

“They (the companies) get lost for having contract with foreigners. They have had schedules to ship. Their disadvantages are burdened to the smallholders. They want to get profits from international buyers but what President Joko Widodo decided addressed them to get loss. Unfortunately, they sacrifice the smallholders,” he said.

He also mentioned, they did purchase cheap FFB from the smallholders but they would sell it in normal price. What does it mean? They would get much profits. “Indonesian Police should supervise it, the agencies, regents need to firmly act and deliver sanction for the bad companies. We disrespect such companies,” Darto said. (T2)