InfoSAWIT, PADANG – The West Sumatra Provincial Government is drafting a Governor Regulation (Pergub) aimed at protecting the prices of fresh fruit bunches (TBS) for palm oil farmers. This step is taken in response to various complaints from palm oil farmers who have experienced imbalances in the pricing mechanism.
This commitment was directly affirmed by West Sumatra Deputy Governor Vasko Ruseimy during a Workshop on Strengthening Institutions and Partnerships for Palm Oil Farmers organized by the West Sumatra Branch of the Indonesian Palm Oil Farmers Association (APKASINDO), with support from the Plantation Fund Management Agency (BPDP).
“From the province, we are ready to provide full backup. I personally stand at the forefront to defend farmers,” Vasko stated emphatically before participants consisting of farmers and representatives from related institutions.
Vasko explained that during visits to various plantation areas in West Sumatra, he received direct feedback from farmers. Various complaints, particularly regarding the transparency of companies in disclosing invoice data—which serves as the basis for determining TBS prices—remain a serious obstacle.
“Company transparency regarding invoices is still very minimal. Yet, it is crucial for determining fair TBS prices. We have issued warnings, but oversight remains largely at the district/city level,” he explained.
As a sign of seriousness, Vasko conveyed that the provincial government is currently reviewing the drafting of a Pergub that regulates the pricing mechanism for palm oil to ensure it is not biased. The goal is to ensure that farmers are protected by regulations.
“We are currently reviewing the Pergub so that pricing does not favor only one party. Farmers must have certainty and legal protection,” he asserted.
He also hopes that the existence of APKASINDO can become a strategic partner for the government in advocating for the welfare of palm oil farmers. According to him, West Sumatra's success in maintaining high palm oil prices at the national level is a result of good collaboration between farmers and the government.
Meanwhile, the newly elected Chairman of the West Sumatra APKASINDO, Jufri Nur, expressed appreciation for Vasko Ruseimy's commitment to farmers. He noted that Vasko's support has been evident long before he took office as Deputy Governor.
“We see that Mr. Vasko has shown commitment to palm oil farmers long before becoming Deputy Governor. This makes us optimistic that he will continue to support farmers,” Jufri stated in a statement to InfoSAWIT on June 16, 2025.
He also hopes that the West Sumatra APKASINDO will receive direct guidance from the provincial government and be involved in the strategic policymaking process related to palm oil. Additionally, Jufri proposed that farmer associations receive allocations from the Revenue Sharing Fund (DBH) as a concrete form of support from the local government.
In closing his remarks, Vasko emphasized the importance of synergy between local and central governments, as well as the active involvement of the community in building a fairer and more sustainable palm oil sector.
“We need collaboration with all parties, including farmer communities. Together, I believe we can achieve more equitable welfare,” he concluded. (T2)
