Dharmasraya Regency Government Urges Palm Oil Mills Not to Unilaterally Lower FFB Prices
Dharmasraya (ANTARA) - Dharmasraya Regency Head Annisa Suci Ramadhani has urged palm oil mills (PKS) not to unilaterally lower Fresh Fruit Bunches (FFB) prices under the pretext of new regulations that have yet to be implemented.
The request is detailed in a letter (No. 500.8/88/DISTAN-2026) dated 26 May 2026, addressing public reports of FFB price cuts for farmers ranging from Rp600 to Rp1,100 per kilogram.
Speaking in Pulau Punjung on Wednesday, she stated that based on global CPO prices and the West Sumatra FFB price setting for the fourth quarter of May 2026, FFB prices should remain relatively stable without significant drops.
“The drop in FFB prices at the farmer level requires serious attention, as global CPO prices and West Sumatra’s reference prices remain stable,” she said.
The regent stressed that significant price cuts do not reflect actual market conditions, given that the central government’s natural resource export management policies are still in a transition phase until January 2027.
She noted that the President’s policy on natural resource export management, to be implemented by state-owned enterprise PT DSI, is a positive move for all stakeholders—nation, corporations, and palm oil farmers—to prevent export price manipulation.
“The B50 mandate policy in July 2026 will actually strengthen future CPO absorption,” she added.
She stated that regular FFB pricing collaboration is regulated under several laws, including Ministerial Regulation No. 1 of 2018, Ministerial Regulation No. 13 of 2024, and West Sumatra Governor Regulation No. 28 of 2020.
Therefore, she said, farmer FFB purchases must reflect the market price of CPO and its derivatives, in line with periodic prices set in West Sumatra.
She also reiterated the prohibition of price collusion, which can lead to unfair competition as stipulated in Law No. 5 of 1999.
“Stable palm oil prices are key to future sustainability. Compliance with regulations by all stakeholders is mandatory during this national policy transition,” she stressed.
The Dharmasraya Regency Government will continue monitoring FFB price setting in the area and take action if violations or price manipulation harming farmers are found, she said.
The letter was also copied to the West Sumatra Governor, Dharmasraya Regional House of Representatives, District Police Chief, Prosecutor’s Office, Dandim 0310 Sawahlunto/Sijunjung, and district heads and village chiefs across Dharmasraya Regency.
The targeted companies include PT Dharmasraya Sawit Lestari, PT Tidar Kerinci Agung, PT Hamparan Kemilau Indah, PT Salago Makmur Plantation, PT Sumbar Andalas Kencana, PT Bina Pratama Sakato Jaya, and PT Dharmasraya Lestarindo.