Palm Oil Fresh Fruit Bunch Prices Set to Rise by 10 Per Cent, Minister Amran Explains Reasons
The Minister of Agriculture, Amran Sulaiman, has revealed that President Prabowo has requested that the price of palm oil Fresh Fruit Bunches (TBS) increase by up to 10 per cent, in line with the rising global prices of Crude Palm Oil (CPO). He stated that the issue of TBS pricing has become a direct concern for the President. While performing the Hajj pilgrimage recently, the Minister noted that he was contacted twice by President Prabowo to ensure government measures are in place to protect palm oil farmers.
“I will repeat this once more: it is a direct order from the President via telephone. He stated that we must defend the 15 million farmers. TBS prices must return to their previous levels, and even increase by 10 per cent from the original price. That was his direct command,” Amran said in Jakarta on Monday, 8 June 2026.
Amran emphasised that President Prabowo’s directive stresses the importance of maintaining the welfare of approximately 15 million palm oil farmers by restoring TBS prices and pushing for a 10 per cent increase. The Minister considers such an increase to be reasonable, supported by the strengthening trend of global CPO prices and the appreciation of the US Dollar against the Rupiah.
He added that approximately 70 per cent of TBS prices across various regions have gradually recovered, and the government, alongside the Food Task Force and the police, will oversee a full recovery without compromise. “Alhamdulillah, 70 per cent is now normal, leaving only 30 per cent to go. From today, there will be no more compromises. If there are still instances of price reductions, we will take action through the Directorate of Special Crimes and the Task Force Leader.”, he stated.
According to Amran, the recent decline in TBS prices at the farmer level was an anomaly. He noted that prices should have risen by about 10 per cent to follow the global CPO trend. He emphasised that despite the rise in global CPO prices and the US Dollar strengthening by more than 10 per cent against the Rupiah, TBS prices had actually experienced drops of up to 17 per cent in several regions.
TBS prices are determined by respective local governments through gubernatorial regulations, meaning the prices received by farmers may vary between regions based on official local designations. “We have the data. Global CPO prices rose by 47 per cent and the Dollar exchange rate rose by more than 10 per cent, yet TBS prices actually fell; this is an anomaly. There is no reason for prices not to return to normal; in fact, they should increase by about 10 per cent from previous levels,” he concluded.