InfoSAWIT, KUTAI KARTANEGARA – Smallholders in Kutai Kartanegara Regency, East Kalimantan, are calling for greater transparency in fresh fruit bunch (FFB) pricing following sharp price reductions imposed on independent non-partner farmers by PT REA Kaltim Plantations.
The demand was voiced by Koperasi Perkebunan Belayan Sejahtera, which has urged regional authorities and relevant institutions to conduct an open audit of the company’s FFB pricing formula.
The call follows a rapid decline in FFB prices that cooperative members say has triggered growing concern among Smallholders.
According to an official letter dated 2 June 2026, FFB prices previously recorded at around Rp3,480 per kilogram fell to Rp2,980 before declining again to Rp2,780 per kilogram on 1 June 2026. The total reduction of Rp700 per kilogram, or approximately 20.11 percent, is said to have significantly affected farmers’ income and their ability to cover harvesting costs, transportation, loan repayments, and household expenses.
Belayan Sejahtera Cooperative Chairman Jamaluddin argued that the issue goes beyond normal commodity price fluctuations and concerns the lack of transparency surrounding the pricing mechanism.
“We do not reject price changes if they genuinely follow market conditions, but farmers have the right to understand the basis of the calculation. Prices should not simply be announced without supporting data,” Jamaluddin told InfoSAWIT.
The cooperative noted that partnership agreements mention several pricing indicators, including KPB Belawan/Dumai crude palm oil prices, kernel prices, company sales values for CPO and CPKO, mill extraction rates, investment margins, and weekly market adjustments.
However, farmers claim they have never received open explanations regarding these indicators or the data used to determine prices.
Cooperative records indicate that approximately 1,129 members could be directly affected. More than 20 cooperatives across Kembang Janggut, Tabang, and Kenohan districts are also reportedly experiencing similar impacts, potentially involving over 7,000 Smallholders.
As part of its demands, the cooperative has called for an open audit of the pricing mechanism, disclosure of price and extraction-rate data, and written publication of audit findings to both farmers and the public.
The cooperative also requested guarantees against intimidation or restrictions targeting farmers and organisations raising objections.
“Farmers do not need symbolic statements or meetings without outcomes. What is needed is direct investigation, data transparency, and decisions that protect farmers’ income,” Jamaluddin stressed.
The letter further warned that if no concrete response is provided by authorities or relevant institutions within a reasonable period, farmers would exercise their constitutional right to hold a peaceful demonstration in front of PT REA Kaltim’s mill on 6 June 2026. (T2)
