Amran: Palm Oil Prices Must Return to Previous Levels, No Reason for Decline
The Minister of Agriculture, Andi Amran Sulaiman, has ordered that the price of fresh fruit bunches (FFB) for palm oil must return to the levels seen before the recent decline. The government also plans to inspect around 300 companies that have not yet adjusted their prices to match market conditions.
Amran stated that this decision was reached during a meeting attended by palm oil associations, farmer representatives, the National Police Food Task Force, and the Special Criminal Investigation Directorate (Dirkrimsus) from 25 provinces. He assessed that the decline in FFB prices is inconsistent with the development of commodity prices and the exchange rate, which should actually benefit the export sector.
“Alhamdulillah, it was agreed today that there will be no more price decreases. Prices must rise to their original condition. 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 10 per cent depreciation of the Rupiah against the US Dollar should serve as a driver for increasing FFB prices. According to him, there is no justification for companies to lower the purchase price of palm oil from farmers.
He emphasised that the government must protect approximately 15 million palm oil farmers across Indonesia, stating that the recent price drop is an unnatural condition.
“There is an anomaly here; at this time, prices should be rising, not falling. Why? Because the Dollar value has a 10 per cent difference. Therefore, prices must rise. There is no reason for a decline,” Amlar stated.
He revealed that out of approximately 1,900 companies operating in the palm oil sector, around 300 have not yet restored FFB prices to their previous levels. Data regarding these companies will be handed over to the police for further action.
Amran added that FFB prices in each region must refer back to the prices established by local governments through gubernatorial regulations. He noted that regions setting prices at Rp3,200 per kilogram or Rp3,600 per kilogram must adhere to the applicable regulations.
“If it is 3,200, it should remain 3,200. If it is 3,600, it should return to 3,600 based on the region. But it must follow the Pergub (Governor’s Regulation),” he said.
He mentioned that reports received during the meeting indicate that approximately 70 per cent of FFB prices have begun to recover. The government aims for all prices to return to normal in the near future.