InfoSAWIT, BANDA ACEH – The Aceh chapter of the Indonesian Oil Palm Smallholders Union (SPKS Aceh) has pledged full support for government and law enforcement efforts to crack down on Fresh Fruit Bunches (FFB) purchases conducted below government-established prices.
SPKS Aceh Chairman Abubakar AR said the organization is prepared to assist the Special Criminal Investigation Directorate (Ditreskrimsus) of the Aceh Regional Police in identifying palm oil mills (PKS) and middlemen suspected of purchasing smallholders’ FFB at prices lower than those set by provincial authorities.
“We fully support the Minister of Agriculture’s directive to protect smallholders’ FFB prices. SPKS Aceh is ready to assist Ditreskrimsus of the Aceh Police in investigating mills and traders that purchase farmers’ FFB below the official pricing mechanism,” Abubakar told InfoSAWIT on Monday (June 8, 2026).
According to him, the initiative aligns with directives delivered by Agriculture Minister Andi Amran Sulaiman during a national coordination meeting on FFB price stabilization held at the Ministry of Agriculture in Jakarta.
Abubakar, who attended the meeting, said the minister instructed law enforcement agencies to take firm action against companies found to be harming oil palm smallholders through unfair pricing practices.
“The Minister emphasized that inspections of companies suspected of disadvantaging farmers should begin on June 9, 2026. This is an important step toward creating a fairer and more transparent palm oil trading system,” he said.
He noted that many oil palm smallholders have suffered financial losses because some mills and intermediaries continue to offer prices below government benchmarks despite favorable market conditions.
SPKS Aceh therefore urged all palm oil mills in the province to comply with official pricing guidelines and stop practices that undermine farmers’ incomes. Any violations discovered will be reported to law enforcement authorities and the Ministry of Agriculture.
“There should be no justification for buying FFB below government-set prices. If we find violations, we will report them so that legal action can be taken,” Abubakar stressed.
He also highlighted long-standing complaints regarding excessive weight deductions and other pricing practices that reduce farmers’ earnings. Stronger supervision, he said, is necessary to ensure fair transactions throughout the supply chain.
Abubakar emphasized that the welfare of millions of oil palm smallholders must remain a priority for both government and industry stakeholders.
“This concerns the livelihoods of millions of oil palm farmers. There should be no more price manipulation or unfair deductions. We hope all mills comply with regulations and conduct business fairly,” he concluded. (T2)
