InfoSAWIT, MAMUJU — The West Sulawesi Provincial Plantation Office has convened a meeting to establish the "K" Index and the Fresh Fruit Bunch (FFB) price for palm oil produced by farmers for the period of July 2025. The event, held at Hotel Berkah on Jln. Soekarno Hatta in Mamuju, was led by the Secretary of the West Sulawesi Plantation Office, Andi Sitti Kamalia, alongside the Acting Head of the Processing and Marketing Division, Agustina Palimbong.
This meeting served as a platform for discussions among local government officials, business actors, and palm oil farmer associations to set a fair and transparent FFB price in accordance with applicable regulations. The price determination is based on the Indonesian Minister of Agriculture Regulation No. 13 of 2024 regarding the Purchase of FFB from Partner Farmers.
"We remain committed to adhering to the regulations outlined in Ministerial Regulation No. 13 of 2024. This price determination is crucial for maintaining a balance between the interests of farmers and companies," Agustina Palimbong stated in a statement received by InfoSAWIT on Sunday, July 27, 2025.
The established FFB price applies specifically to farmers who have partnered with palm oil mills. This price serves as an important reference for maintaining farmers' income stability while ensuring transparency in the trade of this strategic commodity.
For the July 2025 period, the FFB price for palm oil from plants aged 10 to 20 years has been set at IDR 2,906.08/kg. This figure represents a decrease from the June 2025 price of IDR 2,973.00/kg, reflecting a drop of IDR 66.92/kg.
"While there has been a price decrease compared to last month, this outcome is the result of a deliberative process that considers various factors, including global crude palm oil (CPO) price fluctuations and the quality of the processed fruit bunches," explained Andi Sitti Kamalia.
The decline in FFB prices is attributed to weakened demand for crude palm oil in the global market. Additionally, the quality of FFB, which is mixed without age classification, negatively impacts the quality of CPO produced by mills.
The details of the FFB price determination for July 2025 are as follows: agreed "K" Index: 88.06%; average CPO selling price: IDR 12,976.30/kg; average palm kernel selling price: IDR 9,996.11/kg; FFB price (for plants aged 10–20 years): IDR 2,906.08/kg.
The meeting was attended by various stakeholders, including representatives from the West Sulawesi Provincial Government's OPD, such as the Cooperative and Small and Medium Enterprises Office, the Manpower Office, the Legal Bureau, and the Plantation and Livestock Office from Pasangkayu Regency. Several palm oil plantation companies, including PT Mul, PT UWTL, PT Astra Agro, PT ASL, and PT PGL, also participated.
Additionally, representatives from farmer associations such as Apkasindo, APKASINDO Perjuangan, and Aspekpir, as well as the West Sulawesi Regional Police, were present. This multi-stakeholder collaboration is vital in ensuring that the price-setting process is objective and favors the welfare of farmers.
This price determination is part of the implementation of the first mission of the Panca Daya of the West Sulawesi Provincial Government under the leadership of Governor Suhardi Duka and Deputy Governor Salim S. Mengga (SDK–JSM), which aims to promote inclusive and sustainable economic growth in key sectors, including palm oil plantations.
The established price will be effective from July 23, 2025, until the next price determination. Under this provision, all partnering palm oil companies are required to comply with the FFB price set by the team. Non-compliance with this price may result in administrative sanctions in accordance with applicable regulations. (T2)
