InfoSAWIT, JAKARTA – Indonesian Agriculture Minister Andi Amran Sulaiman has reaffirmed the government’s commitment to improving Fresh Fruit Bunches (FFB) prices received by oil palm smallholders, stating that current market conditions should support higher farm-gate prices.
Speaking after a coordination meeting on palm oil FFB price stabilization attended by industry associations, farmer representatives, the Food Task Force, and law enforcement officials from across the country, Amran said approximately 270 to 300 palm oil companies would be reviewed for allegedly failing to adjust their FFB purchasing prices in line with prevailing market conditions.
“We agreed that FFB prices should return to previous levels and, if possible, move even higher. The strengthening of the U.S. dollar against the rupiah should provide room for better prices for farmers,” Amran said on Monday (June 8, 2026).
According to the minister, Indonesia’s palm oil industry must ensure that the benefits of strong export performance are shared with the millions of smallholders who form the backbone of the sector.
Data from the Ministry of Agriculture indicate that out of roughly 1,900 palm oil companies operating nationwide, around 300 have yet to align their FFB purchasing prices with official benchmarks and current market realities.
Amran emphasized that any review process would be conducted carefully to ensure accuracy and fairness.
“We will verify each case individually. We must ensure that the data are correct because some companies may have already adjusted their prices,” he explained.
The minister stressed that the government’s primary objective is to protect approximately 15 million people whose livelihoods depend directly or indirectly on the oil palm industry.
He argued that smallholders should benefit from positive global market trends, including stronger palm oil prices and favorable currency movements that support Indonesia’s export earnings.
Amran also reiterated that FFB prices paid to farmers should follow the official pricing mechanisms established by provincial governments.
“FFB prices must follow the benchmarks determined by governors. When market conditions improve, farmers should also enjoy the benefits,” he said.
The ministry reported that around 70 percent of palm oil companies have already adjusted their prices, while the remaining firms are being encouraged to follow suit to ensure more balanced and equitable pricing across Indonesia’s palm oil-producing regions.
Amran expressed hope that cooperation among government institutions, industry associations, and farmers would accelerate the recovery of FFB prices and strengthen the welfare of oil palm smallholders nationwide.
“The most important thing is that farmers benefit and feel the positive impact of improving prices,” he concluded. (T2)
