One-Stop Export for Palm Oil, Farmers Demand Transparent FFB Prices
Chairman Sabarudin of the Palm Oil Farmers Union (SPKS) spoke about governance of export of strategic commodities through Danantara Sumber Daya Indonesia (DSI). He hopes the policy will continue to prioritise protection of the price of Fresh Fruit Bunches (FFB) and the livelihoods of farmers in the region.
“The government’s efforts to strengthen the oversight of palm oil exports and to improve Indonesia’s bargaining position in the global market are important steps,” Sabarudin said in Jakarta on Thursday, 21 May 2026, quoted from Antara.
However, he reminded that policy implementation must be carried out carefully so as not to place new pressure on smallholders. He said strengthening export governance also needs to ensure the position of farmers remains protected.
Moreover, Sabarudin stated that farmers regard the certainty of trading mechanisms and price-formation as important factors in maintaining domestic palm oil market stability. Farmers also require assurances that the FFB price will follow a transparent market mechanism and not disadvantage farmers at plantation level.
Moreover, he said, since the policy on exports via DSI emerged, FFB prices in several regions have declined. This shows the importance of regulatory certainty to avoid creating concerns among businesses and farmers.
SPKS also reminds that smallholders currently manage about 60 percent of the national palm oil land. He assessed that the sustainability of the national palm oil industry depends on the stability of smallholder enterprises and their welfare.
According to Sabarudin, the government needs to open room for dialogue with business players, cooperatives, and farmer organisations before full policy implementation. This step is important so that the strengthening of export governance can proceed alongside protection of the domestic palm oil supply chain.
“The objective of improving governance is certainly good, but its implementation must ensure that farmers remain an important protected part of the national palm oil ecosystem,” he said.
SPKS, according to Sabarudin, also pushes for transparent oversight, the involvement of farmers in the policy monitoring process, and the allocation of benefits from the palm oil industry to support replanting and productivity improvements on smallholder plantations.
The government previously planned to strengthen the governance of export of strategic commodities through DSI as part of efforts to enhance trade oversight and state revenue from the natural resources sector.