Palm Oil Smallholders’ Union Hopes Export Governance Will Continue to Protect TBS Prices

Jakarta (ANTARA) - The Palm Oil Smallholders Union (SPKS) has urged that the governance of export of strategic commodities through the Danantara Sumber Daya Indonesia (DSI) continue to prioritise price protection for Fresh Fruit Bunch (TBS) and the sustainability of livelihoods for farmers in the regions. ‘The government’s efforts to strengthen export oversight of palm oil and to improve Indonesia’s bargaining position in the global market are important steps,’ said SPKS chairman Sabarudin in Jakarta on Thursday. He said policy implementation needs to be carried out with care to avoid placing new pressures on smallholder palm farmers. He stressed that the state exists to protect farmers, because strengthening export governance also needs to ensure farmers’ positions remain protected. SPKS regards certainty in trading mechanisms and price formation as key factors in maintaining domestic palm oil market stability. He said farmers need assurances that TBS prices will continue to follow transparent market mechanisms and not disadvantage farmers at the plantation level. He noted that after discussions about export policy through DSI emerged, TBS prices in several regions began to fall. He said this condition highlights the importance of regulatory certainty to avoid raising concerns among business players and farmers alike. SPKS also reminded that smallholder farmers currently manage around 60 percent of the national palm area. The sustainability of the national palm oil industry is seen as highly dependent on business stability and the welfare of independent farmers. According to Sabarudin, the government needs to open room for dialogue with business players, cooperatives, and farmer organisations before full policy implementation. He said such a step is important so that the strengthening of export governance can run in tandem with protection of the national palm supply chain. ‘The aim of improving governance is certainly good, but its implementation must ensure that farmers remain an important protected part of the national palm ecosystem,’ he said. SPKS also urges transparent oversight, involvement of farmers in the policy oversight process, and the allocation of industry benefits to support rejuvenation programmes and productivity improvements on smallholder plantations. Previously, the government planned to strengthen the governance of export of strategic commodities through DSI as part of efforts to increase trade oversight and state revenue from the natural resources sector.