Home Berita Bisnis CPO Exports Reopen, Oil Palm Farmers: FFB Prices Rise Slightly

CPO Exports Reopen, Oil Palm Farmers: FFB Prices Rise Slightly

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The price of fresh fruit bunches (FFB) for oil palm farmers began to increase, although not significantly before the opening of the CPO export faucet on Monday (23/5/2022).

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The price of fresh fruit bunches ( FFB farmers oil palm has started to increase, although not significantly before the opening of crude palm oil ( CPO ) exports starting Monday (23/5/2022).

The price of FFB is currently priced at IDR 2,011/kilogram, which before the announcement of the opening of CPO exports, the price was IDR 1,775 per kilogram.

Chairman of the Indonesian Palm Oil Farmers Association (Apkasindo) Gulat Manurung said the price of FFB should have started to normal at Rp 2,800 - 3,800 per kilogram in 22 provinces.

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"But in general, President Jokowi's announcement regarding the lifting of the export ban has shown an improvement in farmers' FFB prices, although not significantly," said Gulat to The Newbie , Sunday (22/5/2022).

Gulat said that the highest increase in FFB prices occurred in 8 provinces that already have a Governor's Regulation on FFB Commerce as a derivative of the Minister of Agriculture No. 1 year 2018.

According to him, currently the production cost of FFB is Rp. 1,950 per kilogram. Since the export ban on April 28 to May 19, 2022, the price of FFB farmers purchased is below the cost of goods sold (HPP)/capital and this is evenly distributed in 22 palm oil provinces, both farmers partnering with palm oil mills (PKS) or not partnering (self-help). . 

"It is expected that next week (Monday 23 May) the increase will be above Rp. 1,000 per kilogram from the HPP figure or it means an increase of Rp. 1,000 above the production cost of Rp. 1,950 per kilogram," said Gulat.

If you look at the results of the FFB price tender at PT Kharisma Marketing Bersama Nusantara (KPBN) on May 20, 2022, in general, there is still no agreement.

“This is a question mark for us oil palm farmers. What clear is only the tender in Belawan, which is Rp. 14,106 per kilogram of CPO. Other locations are still WD (disagree with each other) such as Dumai, T. Duku, T. Bayu. This should also be an important concern of law enforcement officials and the Supreme Audit Agency (BPK), because KPBN is a BUMN, so the procedure for calculating the CPO tender must be checked, all of which must be transparent. And the companies participating in the tender must move on after the lifting of the export ban," said Gulat.

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Gulat asked PKS not to push down the price of farmers' FFB because the export faucet has been opened. He also hopes that Permentan No. 1 of 2018 will be revised because it burdens independent smallholders who do not partner with the company.

“The fact is that there are no more than 7 percent of farmers who partner. This means that 93 percent of the farmers who are not partnered have nothing to protect the price of their FFB. This is so unfair. The requirements for partnering are also very heavy, because in addition to having to be in groups (poktan or KUD), the regent must also know and sign the area where the palm oil plantation is located, and PKS does not necessarily want to partner because it will reduce the profit share, "explained Gulat.

Previously, President Joko Widodo (Jokowi) announced the government's policy to reopen the export of cooking oil and its raw materials starting May 23, 2022, after being banned since April 28.

"Based on the current supply and price of cooking oil, and considering that there are 17 million workers in the palm oil industry, including farmers, workers, and other supporting staff, I have decided that cooking oil exports will reopen on Monday, May 23, 2022," Jokowi said. , Thursday (19/5/2022).

Jokowi explained that he himself and his staff continue to monitor and encourage various steps to ensure the availability of cooking oil for the community, since the export ban was imposed last month.

According to the President, the national demand for bulk cooking oil is around 194,000 tons per month, but in March before the export ban was imposed, the supply in the domestic market only reached 64,500 tons. 

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