Palm Oil Farmers Celebrating Rising Cash as Prices Surge
Jakarta — The chairman of the Indonesian Palm Oil Entrepreneurs Association (Gapki), Eddy Martono, has stated that fresh fruit bunch (FFB) prices for palm oil at the farmer level have currently reached approximately Rp3,000 per kilogram (kg) on average nationally. In some regions such as Riau, prices are reported to be even higher.
“Yes, the average FFB price nationally is around Rp3,000 per kg. In fact, in Riau for instance, it appears to have already surpassed Rp3,000 per kg, reaching around Rp3,600 per kg,” Martono told CNBC Indonesia during an interview in Jakarta on Thursday, 12 March 2026.
He revealed that the price increases commenced at the beginning of the year, with the upward trend continuing amid global dynamics, including heightened geopolitical tensions that are also affecting commodity markets.
“I believe the increases started from January. Then, with this conflict, prices appear to have risen further. However, one must remember that these price increases will subsequently lead to increases across the board. This is because production costs will also increase. But for now, prices have already risen,” he explained.
Although FFB prices have risen considerably, Martono noted that this condition has not yet been fully influenced by increased production costs such as fertiliser. This is because most fertiliser currently being used was purchased during the previous year.
“Not yet, as fertiliser is typically purchased on average during the previous year. If this conflict continues, fertiliser prices will certainly increase,” he said.
Martono emphasised that the FFB price of approximately Rp3,000 per kg represents the price received by farmers, not companies. He explained that palm oil companies generally purchase fruit from farmers and then resell it after processing it into palm oil.
“Yes, that is the price at the farmer level. Companies sell it already in the form of oil, then it is processed. They purchase the fruit from the people,” he concluded.