InfoSAWIT, JAKARTA – Indonesian independent oil palm smallholders are calling for greater price transparency as a way to strengthen their bargaining position amid rising domestic demand for palm oil feedstock following the implementation of the country's B50 biodiesel program.
The issue took center stage during the launch of the Indonesia Palm Oil Price Application, organized by the Indonesian Oil Palm Farmers Association (APKASINDO) in Jakarta on Saturday. The event underscored the importance of making fresh fruit bunch (FFB) and crude palm oil (CPO) price information more accessible to farmers, creating a fairer and more balanced palm oil trading system.
APKASINDO Chairman Gulat Medali Emas Manurung said that approximately 42 percent of Indonesia's oil palm plantation area is managed by smallholders. Despite their significant contribution to the industry, many continue to face limited access to reliable market information, weakening their negotiating position when selling their harvests.
According to Gulat, greater transparency is not intended to create conflict between farmers and palm oil processors. Instead, it aims to establish a healthier business ecosystem by ensuring that all stakeholders across the supply chain rely on the same market references.
He also noted that the economic benefits generated by the national B50 biodiesel program have yet to be fully reflected in the prices received by farmers for their fresh fruit bunches. Improved access to pricing data, he said, could help identify the causes of regional price disparities while providing policymakers with better insights for developing farmer-oriented regulations.
Beyond the discussion on market transparency, the event also featured the signing of a research cooperation agreement between the Process Technology Research Center under the National Research and Innovation Agency (BRIN) and APKASINDO. The partnership will focus on developing incense and aromatherapy products derived from palm biomass and benzoin resin, expanding the utilization of palm oil by-products through research-driven innovation.
Support for digital price information systems also came from Indonesia's Directorate General of Plantations. Representing the Director of Oil Palm and Other Palm Crops, Elvyrisma Nainggolan, Head of the Marketing Division, said digital transformation could significantly improve the dissemination of market information while increasing smallholder participation in accessing reliable pricing data.
She added that collaboration with commodity trading institutions and farmer organizations would enrich the quality of information available, enabling the platform to become a trusted market reference for the entire palm oil industry.
APKASINDO's information technology team explained that the application has been designed with user accessibility, data accuracy, and cybersecurity as key priorities. It also includes a reporting feature that allows farmers to submit complaints whenever the prices offered by palm oil mills differ significantly from the reference prices displayed in the system.
APKASINDO hopes the initiative will mark the beginning of a more transparent and equitable palm oil trading environment, ultimately improving farmer welfare while supporting the long-term sustainability of Indonesia's palm oil industry. (T2)
Source: InfoSAWIT
