Palm Oil Farmers in South Pesisir, West Sumatra, Face Potential Annual Losses of Rp 492 Billion, Deductions the Main Culprit

Palm oil farmers in south Pesisir, West Sumatra (Sumbar), could suffer losses of Rp 492 billion per year. This is caused by the price differential for fresh fruit bunches (FFB) for palm oil farmers in south Pesisir being the lowest in Sumbar. High weighing deductions at palm oil mills are also increasingly burdening the farmers. According to Novermal, the price of FFB from smallholder plantations in South Pesisir is only Rp 3,000 per kilogram. Meanwhile, in other areas such as Sijunjung, it reaches Rp 3,600 per kilogram. Actually, the FFB issue there has been attempted to be resolved through two meetings with input from the Regional People’s Representative Council (DPRD), although there has been no result yet. “The Governor’s Regulation as a derivative of that rule does not yet exist, so its implementation in the field has not yet proceeded,” said Novermal. Novermal then asked the West Sumatra Provincial Government and the South Pesisir District Government to immediately take concrete steps to protect palm oil farmers there. In fact, the war in the Middle East is raising commodity prices, including palm oil. “Yes, there is a slight increase as well because it’s an impact from that, as their packaging is all plastic,” he explained on Thursday (16/4/2026). The government is holding the highest retail price (HET) for Munyakita at Rp 15,700 per litre despite the rise in crude palm oil (CPO) prices due to the war in the Middle East. As is known, CPO prices are projected to continue increasing until June 2026.