POPSI Urges DSI to Ensure Export Data Transparency and Oversight

Jakarta (ANTARA) – POPSI Chairman Mansuetus Darto said the role of Danantara Sumberdaya Indonesia (DSI) should focus on recording, documenting, monitoring, export data transparency, and administrative oversight. ‘Alternatively, he proposed cancelling the centralised palm oil export plan to protect millions of local palm farmers,’ Mansuetus stated in a statement in Jakarta on Monday. This follows a drop in fresh fruit bunch (TBS) prices in several production hubs to as low as Rp1,500 per kilogram. Mansuetus said the government must clarify its policy direction to prevent market panic, speculation, and declining trade activity, which would directly pressure crude palm oil (CPO) and farmer TBS prices. ‘Those most affected are not under-invoicing actors but palm farmers whose selling prices have plummeted due to unstable markets,’ Mansuetus said. ‘The palm oil industry affects the livelihoods of around 17 million people, including farmers, labourers, transport workers, SMEs, and communities in palm-growing regions,’ he added. Meanwhile, data from the Indonesian Palm Oil Farmers Union (SPKS) shows TBS prices in West Kalimantan fell by around Rp1,000 to Rp1,500 per kg. Similarly, in Mamuju, West Sulawesi, prices plummeted from around Rp2,800 to Rp1,000 per kg, while in Labuhanbatu, North Sumatra, they dropped by Rp1,500 per kg. SPKS Chair Sabarudin urged the government to intervene promptly to address price drops and stabilise the market, as farmers continue to suffer significant losses. Sabarudin said the single-door export policy risks creating a monopsony that suppresses TBS prices for farmers. The impact not only erodes their income but also threatens the sustainability of smallholder productivity. He warned that prolonged conditions could reduce smallholder productivity, affecting national palm supply. ‘Farmers are traumatised by the 2015 incident when TBS prices fell below Rp1,000 per kg. Many cut down palm trees and switched to other crops as they could no longer sustain themselves,’ Sabarudin said. He also warned that reduced smallholder productivity due to poor fertilisation and farmers abandoning palm cultivation could disrupt national raw material supply.