B50 Biodiesel Policy Fails to Lift TBS Prices, Independent Palm Oil Farmers Struggle

The Chairman of the Central Executive Board of APKASINDO (Indonesian Palm Oil Farmers Association), Gulat Medali Emas Manurung, has revealed the impact of the B50 Biodiesel programme on fresh fruit bunch (TBS) prices at the farmer level. Speaking in Jakarta, Gulat stated that following the implementation of B50 on 1 July 2026, TBS prices for farmers did not increase, a situation linked to global Crude Palm Oil (CPO) prices. After that date, CPO prices on the Kharisma Pemasaran Bersama Nusantara (KPBN) and the Indonesia Commodity and Derivatives Exchange (ICDX) failed to rise and instead continued to decline. Prices only saw a slight, insignificant movement after President Prabowo remarked on the high CPO prices on the Rotterdam exchange. Currently, TBS prices for independent smallholders range between Rp 2,400 and Rp 3,200, while prices for plasma farmers are between Rp 2,800 and Rp 3,800. APKASINDO assesses that the B50 programme has not had an impact on TBS prices at the farm level, noting that prices were better before the mandate was introduced. The association is calling on the government, through its food task force, to strengthen supervision and push for regulations requiring Palm Oil Mills (PKS) to partner with independent smallholders to ensure their long-term viability.