Palm Oil TBS Prices Plunge as Deputy Agriculture Minister Identifies 139 Mills

JAKARTA - Deputy Agriculture Minister Sudaryono, also known as Mas Dar, has identified 139 palm oil mills that have reduced the purchase price of Fresh Fruit Bunches (TBS).

TBS prices reportedly plummeted after the government announced the establishment of PT Danantara Sumberdaya Indonesia (DSI) as the sole palm oil exporter.

‘We have identified 139 PKS facilities across Indonesia that have lowered their TBS purchase prices,’ Mas Dar said during a meeting at the Ministry of Agriculture in Jakarta on Tuesday, 26 May 2026.

Mas Dar stated that his office has met with several palm oil farmer and business associations to discuss the price decline.

The issue arose as many industry players were uncertain about DSI’s roles and authority.

Following these explanations, Mas Dar hopes mills will resume purchasing TBS at agreed regional benchmark prices.

He expressed hope that the government would not need to take legal or administrative action against the mills.

‘We always act in good faith; not everyone has malicious intent,’ Mas Dar said.

However, he warned that intentional harmful actions causing farmer losses would be addressed, including administrative sanctions.

Apkasindo Chairman Gulat Manurung noted TBS price drops vary by region.

The average TBS price for independent farmers should be Rp3,600 per kilogram and contract farmers Rp4,000, but current prices have fallen to Rp1,800-2,200 and Rp3,600 respectively.

The Production Cost Price (HPP) for TBS is Rp2,000 per kilogram.