Palm Oil Farmers Report to Prabowo: B50 Has Not Boosted Fresh Fruit Bunch Prices

The Chairman of the Indonesian Palm Oil Farmers Association (DPP APKASINDO), Gulat Medali Emas Manurung, has revealed that the B50 biodiesel programme has not yet resulted in higher fresh fruit bunch (FFB) prices for farmers. Speaking after the policy’s implementation on 1 July 2026, Gulat noted that CPO prices on both the Kharisma Pemasaran Bersama Nusantara (KPBN) and international commodity exchanges continued to fall rather than rise. He observed that CPO prices only began to move upwards, albeit not significantly, after President Prabowo highlighted the high CPO prices on the Rotterdam exchange. Currently, independent smallholders are receiving between Rp 2,400 and Rp 3,200 per kilogramme for their FFB, while plasma farmers are getting between Rp 2,800 and Rp 3,800. These levels are worse than before the B50 mandate was introduced, leading APKASINDO to conclude that the policy has had no positive impact on farm-gate prices. The association is calling on the government, through its food task force, to strengthen supervision and push for regulations requiring palm oil mills to partner with independent smallholders to ensure their long-term viability.