Police Food Task Force Investigates Palm Oil Mills Suspected of Unfair TBS Purchases
The National Police Food Task Force, together with regional task forces, is monitoring and supervising the purchase price of Fresh Fruit Bunches (TBS) from independent smallholders. The number of Palm Oil Mills (PKS) indicated to be buying TBS at unfair or non-transparent prices has decreased from 280 to 194 companies.
Brigadier General Ade Safri Simanjuntak, Director of Special Economic Crimes at the Criminal Investigation Department (Bareskrim) and Head of the Police Food Task Force, stated the move follows a request from Agriculture Minister Andi Amran Sulaiman to oversee TBS purchase prices in 16 key palm oil provinces. Monitoring has been conducted from 9 to 22 June 2026.
“The monitoring and supervision are carried out to ensure that the purchase price of TBS by PKS from independent smallholders returns to normal, at least to levels seen before 20 May 2026,” Ade Safri said in a statement on Tuesday (23/6/2026).
The provinces include Aceh, Bengkulu, Jambi, Riau, West Sumatra, South Sumatra, North Sumatra, Lampung, Bangka Belitung, West Kalimantan, South Kalimantan, Central Kalimantan, East Kalimantan, North Kalimantan, West Sulawesi, and Southeast Sulawesi.
In addition to price monitoring, the Food Task Force is coordinating with regional plantation offices to encourage partnerships between PKS and independent smallholders. This step is expected to create a more transparent TBS purchasing mechanism that benefits both parties, in accordance with Agriculture Minister Regulation Number 13 of 2024.
The Police Food Task Force is also collaborating with the Business Competition Supervisory Commission (KPPU) to investigate possible unfair business practices causing low TBS prices for farmers.
Bareskrim has now formed five special teams and clarified the situation with 14 PKS suspected of buying TBS at unfair prices. Meanwhile, 16 regional food task forces established at the provincial level have clarified with 159 PKS.
Ade stated that the investigation is ongoing. Authorities are currently determining whether there are criminal elements in the purchasing practices.
“The investigation process is still underway to find out whether a criminal event has occurred or not,” he said.
The police are also open to taking enforcement action if alleged criminal acts are found, such as fraud related to weighing scales, TBS quality or extraction rate, as well as falsification of transaction and weighing documents. Based on monitoring results since 9 June 2026, the purchase price of TBS from independent smallholders in several regions has begun to show an upward trend.
On the other hand, the number of PKS indicated to be making purchases at unfair prices continues to decline. The task force warned PKS still buying TBS at prices not in line with market conditions to immediately stop practices detrimental to farmers.
“The determination of the purchase price for non-partner TBS must be based on a fair market mechanism and real market conditions,” he explained.
He stressed that the Police Food Task Force and regional food task forces will continue mitigation and supervision efforts to maintain national TBS price stability. Independent smallholders who feel disadvantaged are also urged to report via the Food Task Force Command Post through WhatsApp at 0821-7000-8911.