Jakarta, CNBC Indonesia - The Minister of Agriculture, Amran Sulrand\nSulaiman, believes there is no justification for the decline in fresh\nfruit bunch (FFB) prices for palm oil, given the strengthening of global\nCrude Palm Oil (CPO) prices and the high exchange rate of the US dollar\nagainst the rupiah.<\/p>\n
According to Amran, the current exchange rate, which is hovering\naround Rp18,000 per US dollar, should actually serve as a positive\nsentiment for Indonesia\u2019s export commodities, including palm oil.\nConsequently, he questioned the drop in FFB prices that occurred\nfollowing the announcement of the single-door export mechanism through\nPT Danantara Sumberdaya Indonesia (DSI).<\/p>\n
\u201cWe are pleased to announce that today we have agreed that there will\nbe no more decreases in FFB prices. They must return to their original\nlevels. In fact, if necessary, they should rise even higher,\u201d Amran\nstated during a press conference at the Ministry of Agriculture office\nin Jakarta on Monday (8\/6\/2026).<\/p>\n
He emphasised that the weakening of the rupiah should provide\nadditional benefits to export-oriented sectors. With the exchange rate\ndifference having increased by approximately 10%, FFB prices at the\nfarmer level should have been pushed upwards rather than moving in the\nopposite direction.<\/p>\n
\u201cThis is an anomaly; at a time when prices should be rising, they are\nfalling. Why? Because the dollar value has increased by 10%. Therefore,\nFFB prices must also rise; there is no reason for them to fall. We\nasked, and no one could provide an answer. We have now reached an\nagreement; all parties, including association heads, companies,\nentrepreneurs, and exporters, agree that prices must return to their\nprevious levels,\u201d he said.<\/p>\n
He further estimated that FFB prices have the potential to increase\nhigher than previous levels when considering the current exchange rate.\n\u201cThey should be 10% higher than before due to the exchange rate\ndifference. With the dollar now at Rp18,000, we should use this momentum\nand opportunity to benefit the agricultural sector. Last year, our\nexports increased by Rp167 trillion,\u201d Amran explained.<\/p>\n
Nevertheless, Amran revealed that FFB prices are beginning to show\nsigns of improvement. Based on reports received, approximately 70% of\nFFB prices have returned to the normal range of between Rp3,200 and\nRp3,600 per kg, depending on the regulations applicable in each region\naccording to Governor Regulations (Pergub).<\/p>\n
He expressed hope that this recovery process would be fully realised\nstarting today, accompanied by price increases that reflect the positive\nimpact of the strengthening dollar on national export revenue.<\/p>\n
As is known, according to Refinitiv data, as of 09:07 WIB, the rupiah\nhad weakened to the level of Rp18,100\/US.T<\/em>h<\/em>i<\/em>s<\/em>p<\/em>o<\/em>s<\/em>i<\/em>t<\/em>i<\/em>o<\/em>n<\/em>c<\/em>a<\/em>u<\/em>s<\/em>e<\/em>d<\/em>t<\/em>h<\/em>e<\/em>\u2032G<\/em>a<\/em>r<\/em>u<\/em>d<\/em>a<\/em>\u2032c<\/em>u<\/em>r<\/em>r<\/em>e<\/em>n<\/em>c<\/em>y<\/em>t<\/em>o<\/em>d<\/em>e<\/em>p<\/em>r<\/em>e<\/em>c<\/em>i<\/em>a<\/em>t<\/em>e<\/em>b<\/em>y<\/em>a<\/em>p<\/em>p<\/em>r<\/em>o<\/em>x<\/em>i<\/em>m<\/em>a<\/em>t<\/em>e<\/em>l<\/em>y<\/em>0.50<\/span>\nat the close of trading last Friday (5\/6\/2026).<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/agriculture-minister-amran-perplexed-as-palm-oil-prices-plummet-despite-dollar-surging-to-rp18-000-1780903040", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }