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FFB Price Does not Get Better, The Smallholders Lost Their Patience and Would Go to Jakarta Again!



FFB Price Does not Get Better, The Smallholders Lost Their Patience and Would Go to Jakarta Again!

InfoSAWIT, JAKARTA – The smallholders are not patient anymore because the fresh fruit bunch (FFB) price does not get better. Ten days after crude palm oil (CPO) and its derivative export ban was officially revoked, their FFB does not get more expensive. In fact, CPO in the globe is sold at Rp 23 thousand per kg but in Indonesia, many are still in ‘war’ with regulations. The exports do not run still.

Knowing this, Chairman of Asosiasi Petani Kelapa Sawit Indonesia (Apkasindo), Gulat ME Manurung said, Ministry of Trade is in charge of this. Everything happened because the ministry published many policies since the issue of palm cooking oil. Minister of trade published ‘blunder’ policies, not based on condition and had no solution.

In February 2022 when domestic market obligation (DMO) and domestic price obligation (DPO) ran, should be substituted a few days later by publishing subsidized bulk palm cooking oil which the fund was from Palm Oil Plantation Fund Management Agency (PFMA) within the consequence at the time, Export Tax increased from US$ 175 per ton to be US$ 375 per ton.

“Export Tax now is 1/3 of CPO price itself. This is a burden and eventually the numbers would be burdened to smallholders’ FFB production. Out Fee is US$ 200/ton of CPO. In total, they (Export Tax and Out Fee) are more than CPO price (within the assumption, CPO is Rp16.000/kg). this could be the history in palm oil industry because the burden (tax) is more than half of the product,” he said to InfoSAWIT, Friday (3/6/2022).

He also mentioned, per 23 May DMO and DPO have been running again, this could be the big question for the planters, namely the smallholders. Both Export Tax and DMO/DPO would be the double burdens for the smallholders’ FFB. “I do not understand what Minister of Trade thought of using a theory. We are the second generations of smallholders and we know how to calculate well,” he said.

Since 23 May (CPO export ban revocation) until now (2/6/2022) there was no publication about the percentage of DMO and how much DPO would be. Automatically the exports do not happen. These combine and destroy the smallholder’ FFB price. From what we knew in 146 districts/cities where Apkasindo operates in 22 provinces, the smallholders’ FFB gets cheaper.

“Ours is about Rp 1.900/kg in average for independent smallholders and Rp 2.240/kg for plasma smallholders. We got loss namely for the fertilizers we bought that increased almost 300%. FFB price team in the FFB Post monitored FFB price in the mills 24/7 and we know what happened from Aceh to Papua,” he said.

He continued, the cheaper FFB before the export ban took place, reached 55 - 60%. If this keeps happening, one thing for sure, smallholders’ FFB could be less than Rp 1.000/kg or could not be for sale because both the mills and refinery still keep their CPO from our production because the exports do not run still.

Though export ban was revoked, until today there is no CPO and its derivative export activity. The mills and refinery could do nothing. In addition, the auction (tender) in PT Kharisma Pemasaran Bersama Nusantara (KPBN) always failed for more than one month. There is no deal (WD) for this uncertainty.

“This is the second phase – difficult time for us after the export ban happened. We do not stand up for nothing but we would think of us for we have families to breed. Never raise one opinion that we act for one or another group. This is about our ‘lives’ and we would do anything for that. There is no difference when your lives are disturbed,” he said. (T2)


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