Government Vows Crackdown on Palm Oil Price Manipulation as Fresh Fruit Bunch Prices Strengthen
Bener Meriah, Aceh (ANTARA) - Agriculture Minister Andi Amran Sulaiman has affirmed that the government will take firm action against parties manipulating the price of oil palm fresh fruit bunches (TBS) in order to protect farmers’ welfare and maintain the commodity’s stability.
“The government will not tolerate practices that harm oil palm farmers,” Minister Amran said in Bener Meriah, Aceh, on Wednesday.
He made the statement during a dialogue with farmers and local government officials in Bener Meriah Regency, Aceh.
Amran gave assurances that companies deliberately suppressing TBS prices would be dealt with firmly, as the impact directly affects the welfare of millions of farmers across Indonesia.
According to him, the government under the direction of President Prabowo Subianto continues to safeguard the prices of strategic commodities so that the benefits of rising world prices can be felt directly by farmers.
“When the dollar strengthens, it should be the oil palm farmers, coffee farmers, cocoa farmers and coconut farmers who enjoy the gains. Yet prices actually fell at one point. What is going on?” Amran added.
He revealed that upon learning that TBS prices had fallen, he immediately reported the situation to President Prabowo, even while still in the Holy Land.
“We received a phone call. I said that once we had finished praying, we would get straight to work. If there are companies that refuse to raise prices and hurt farmers, we may even shut those companies down. This concerns the livelihoods of some 15 million oil palm farmers across Indonesia,” he asserted.
According to him, the government’s swift measures are beginning to show results. After the government announced strengthened supervision of palm oil prices, TBS prices have gradually recovered. He cautioned, however, that some parties are still attempting to press prices down again.
“Alhamdulillah, after we announced the government’s measures, prices immediately moved upward and are now starting to recover. But I warn that there are still those trying to push prices down again. If that happens, the task force will take firm action,” he said.
Amran stressed that the government will not allow trading practices that harm farmers to continue. In his view, the success of agricultural development must be measured by the improvement of farmers’ welfare as the main actors in food and plantation production.
Furthermore, the Agriculture Minister said palm oil is one of the nation’s strategic commodities with very large export value. For this reason, the government continues to improve its trade arrangements so that greater added value from the commodity can be enjoyed by farmers while also boosting the country’s foreign exchange earnings.
“If the full potential of palm oil can be optimised and farmers’ prices are protected, Indonesia’s export value will rise significantly. That is why the government will continue to be present to ensure farmers receive a fair price,” Amran said.