InfoSAWIT, PADANG — The West Sumatra provincial government is preparing strategic steps to strengthen regulations on fresh fruit bunch (FFB) prices to ensure farmers receive fair prices. Deputy Governor Vasko Ruseimy announced that the drafting of a Governor Regulation (Pergub) is underway as a manifestation of the government's seriousness in improving the management of palm oil prices, which have been deemed inequitable.
This statement was made by Vasko during the inauguration of the management of the West Sumatra Regional Leadership Council of the Indonesian Palm Oil Farmers Association (DPW Apkasindo) in Padang on Tuesday (June 10). In his speech, Vasko emphasized his commitment to standing at the forefront in defending palm oil farmers.
“One of the main complaints I encounter in the field is about price transparency. Many companies are not transparent in disclosing invoice data as the basis for determining FFB prices. This is what we will address through the Pergub,” Vasko asserted, as reported by InfoSAWIT from jernihnews on Friday (June 13, 2025).
He noted that although the provincial government has repeatedly issued warnings to companies, implementation in the field is hampered because technical oversight authority is largely held by district and city governments. Therefore, stronger regulations at the provincial level are deemed essential to ensure that palm oil trade is more favorable to farmers.
“We want a price determination mechanism that is not biased. There must be justice for farmers, and this must be legally protected,” he stated.
The West Sumatra provincial government's initiative has garnered support from various parties, including the management of Apkasindo West Sumatra. The newly elected chairman of DPW Apkasindo, Jufri Nur, believes that Vasko's commitment to farmers has been consistent even before he took office.
“We see his commitment has been consistent since before he became Deputy Governor. Today, we are even more confident that the struggle of palm oil farmers in West Sumatra will receive strong support from the government,” Jufri expressed.
Vasko also mentioned that West Sumatra currently records the highest palm oil prices in Indonesia. He stated that this achievement is not solely due to regulations but also thanks to close collaboration between the government, farmer associations, and business actors committed to fair pricing.
“This achievement is proof that the synergy between the government and the community can yield positive impacts. But we must not stop here. We must continue to ensure that this system becomes more transparent and sustainable,” he said.
He also emphasized the importance of cross-sector collaboration, including support from the central government. With the involvement of various parties, Vasko believes that transforming the palm oil trade towards a more equitable direction is not impossible.
“We need the support of all parties, especially farmers as the frontline. With synergy and transparency, I believe the palm oil sector can become the backbone of the welfare of the people in West Sumatra,” he concluded.
Currently, the West Sumatra provincial government is in the final stages of drafting the initial text of the Pergub. Once completed, this regulation is expected to serve as a reference for all companies and farmers in determining FFB prices, while also strengthening farmers' bargaining positions in the palm oil supply chain. (T2)
