InfoSAWIT, JAKARTA – Fresh fruit bunch (FFB) selling price of the smallholders, namely in partnership with the companies (plasma smallholders) depends on what the government, and other institutions decided based on regulation of local plantation agency and refers to regulation of Ministry of Agriculture.
Regulation of Minister of Agriculture (RMA) Number No. 01/PERMENTAN/KB.120/1/2018 about the Guidelines to Smallholders’ FFB purchase, mentioned that the smallholders get the protection in fair FFB purchase. It avoids to raise unhealthy competitiveness among the mills.
The implementation of RMA is described in the regulations of governor, regent, and mayor, which consist of the mechanism of smallholders’ FFB calculation and FFB decision; the rights and obligation of plasma smallholders and the companies. The regulations of governor, regent, and mayor are also about the basic things to decide the FFB price, the formulation to FFB price, the formulation to production selling compensation which is know as ‘K’ factor, and FFB price in the mills (not farm gat/FFB price in the plantation).
The government is the bridge or connector between the plantation companies and plasma smallholders, as the regulator among the mills and independent smallholders.
For more info about RMA Number 01/PERMENTAN/KB.120/1/2018, please go to: Download Reguation