InfoSAWIT, PESISIR SELATAN – A member of the Pesisir Selatan Regional Legislative Council (DPRD), Novermal Yuska, has raised concerns over the significantly lower prices received by independent oil palm Smallholders in West Sumatra compared to plasma plantation growers and producers in neighboring regions.
Speaking to InfoSAWIT on Thursday (May 14, 2026), the National Mandate Party (PAN) politician noted that plasma plantation FFB prices in West Sumatra for the May 8–14, 2026 period stood at Rp4,022/kg. In contrast, independent Smallholders in Pesisir Selatan Regency were only receiving between Rp2,745/kg and Rp2,990/kg as of May 14, 2026.
He explained that several palm oil mills reduced purchase prices by around Rp75/kg during trading on May 13, 2026. Prices in the TEU area reportedly fell to Rp2,990/kg, Sdtn to Rp2,745/kg, and Sjal to Rp2,830/kg.
Further declines were also recorded on May 14, with prices at KPS T dropping Rp80/kg to Rp2,860/kg, while MSL Lunang reduced prices by Rp60/kg to Rp2,940/kg.
Beyond weak pricing, Smallholders have also complained about excessive weight deductions imposed by palm oil mills. In Pesisir Selatan, weight deductions were reportedly reaching between 9% and 12%, far above deductions in Sijunjung Regency, where independent Smallholders received Rp3,530/kg with deductions of only 4%–5%.
“Palm oil mills in Pesisir Selatan argue that low prices are caused by poor oil extraction rates. However, until today there has never been any official extraction-rate assessment document for independent Smallholders’ FFB from Surantih to Silaut, including from the mills themselves. The deduction standards are also unclear,” Novermal said.
He warned that the situation could potentially cost independent Smallholders in Pesisir Selatan hundreds of billions of rupiah annually. Based on his calculations, the regency has approximately 44,000 hectares of independent oil palm plantations with minimum production of 1,000 kilograms per hectare per harvest.
Assuming an average price gap of Rp500/kg compared to Sijunjung, with two harvests per month over one year, total potential losses could exceed Rp500 billion annually.
Novermal also criticized what he described as the government’s limited support for independent Smallholders, noting that many farmers developed plantations independently without major capital access or land-use facilities commonly available to plantation companies.
“Independent Smallholders built their plantations using their own resources without government assistance or banking access, while companies benefit from land-use rights and strong capital support,” he said.
Despite the challenges, he expressed optimism following the issuance of Agriculture Minister Regulation No. 13/2024 concerning the purchase of oil palm FFB from partner growers, including independent Smallholders.
The West Sumatra Provincial Government is currently drafting a governor regulation derived from the ministerial regulation while also preparing to establish a Palm Oil Task Force to strengthen oversight of the regional palm oil trade system.
Novermal stressed that oil extraction rate remains one of the main components in determining FFB prices, and therefore pricing mechanisms must be transparent and fair to prevent independent Smallholders from continuing to suffer losses. (T2)
