Agriculture Minister: Palm Oil FFB Prices Should Rise 10% as US Dollar Hits Rp 18,000
The Minister of Agriculture, Andi Amran Sulaiman, has assessed that the price of palm oil Fresh Fruit Bunches (FFB) should rise by approximately 10 per cent, following the strengthening of the US Dollar, which has reached the range of Rp 18,000. The government considers the recent decline in FFB prices over the past few days to be inconsistent with current market conditions.
Amran and his officials held a meeting involving associations, palm oil farmers, the National Police Food Task Force, and the Special Criminal Investigation Directorate (Dirkrimsus) from 25 provinces. During the meeting, all parties agreed that FFB prices must return to their previous levels and must no longer experience any decrease.
“Alhamdulillah, today we agreed that there will be no more price drops. Prices must rise to their original levels. In fact, if necessary, they should rise even higher,” said the Minister during a press conference in Jakarta on Monday (8/6/2026).
Amran noted that the depreciation of the Rupiah against the US Dollar has reached about 10 per cent. According to him, this condition should serve as a factor driving the increase in plantation commodity prices, including palm oil.
He highlighted the impact of falling prices on millions of palm oil farmers across various regions. Based on data presented during the meeting, approximately 15 million palm oil farmers depend on the stability of FFB prices.
“There is an anomaly here; at this time, prices should be rising, not falling. Why? Because the dollar value difference is 10 per cent. Therefore, they must rise. There is no reason for a decrease,” Amrit stated.
He explained that there are still around 300 companies that have not yet adjusted their FFB purchase prices. These companies will be investigated to determine the reasons why they have not yet restored prices to reflect current conditions.
Amran mentioned that out of approximately 1,900 companies operating in the palm oil sector, most have begun to adjust their prices. He noted that the momentum of strengthening exports must be utilised to improve the welfare of farmers.
“In fact, prices should be 10 per cent higher than previous levels because of the dollar value difference at 18,000,” he added.
According to Amran, FFB prices in each region must refer to the prices established by local governments through gubernatorial regulations. Prices that were previously at the level of Rp 3,200 per kilogram or Rp 3,600 per kilogram must return to follow the provisions of their respective regions.
“If it is 3,200, it must remain 3,200. If it is 3,600, it must return to 3,600 based on the region. But it must follow the gubernatorial regulations (Pergub),” he concluded.