Plasma Farmers: Not All Mills Cutting TBS Prices

JAKARTA - Palm oil farmers state that not all palm oil mills (PKS) are pressuring the purchase price of fresh fruit bunches (TBS).

Morhaban, Chairman of Citra Sejahtera Palm Oil Farmers Cooperative based in Kayong, West Kalimantan, said the mills continue to buy at Disbun prices.

“Alhamdulillah, we can still operate calmly,” Morhaban said in a written statement on Friday, 29 May 2026.

Morhaban added that despite TBS prices plummeting from an average of Rp 3,500 to Rp 2,500-2,700 per kilogram, they have not experienced volatility.

The mills continue to purchase TBS at Disbun prices for West Kalimantan.

Investigation shows Disbun of West Kalimantan Provincial Government set the TBS price for 3-year-old plants at Rp 2,533.78 per kilogram in the fourth week of May.

Rp 2,914.55 per kilogram for plants aged 5 years and above.

The highest TBS price is Rp 3,370.64 per kilogram from plants aged 10 to 20 years.

“PT CUS buys TBS based on Disbun price, not the lower market price,” Morhaban said.

Deputy Minister of Agriculture Sudaryono, alias Mas Dar, said the issue arises due to psychological factors.

The government has clarified that PT DSI will not impose additional levies on exporters of processed palm oil products.

“With DSI in place, compliant businesses should not be affected, and there should be no changes,” Mas Dar said at his office on Friday.