PTPN IV PalmCo Absorbs 1.34 Million Tonnes of Smallholder Palm Oil FFB

PT Perkebunan Nusantara (PTPN) IV PalmCo has absorbed 1.34 million tonnes of fresh fruit bunches (FFB) from smallholder plantations up to May 2026 to ensure a stable market and support sustainable farmer welfare. “The absorption of fresh fruit bunches from smallholder plantations reached 1.34 million tonnes up to May 2026,” said PTPN IV PalmCo President Director Jatmiko K. Santosa in a statement in Jakarta on Thursday. He noted that the volume of FFB absorbed from independent smallholders and third parties increased compared to the same period in 2025, which was 1.30 million tonnes, reflecting the continued circulation of the economy in communities surrounding the plantation areas. He stated that the realisation of this harvest absorption is an essential effort to maintain the stability and economic turnover of partner oil palm farmers across the company’s operational regions. It also serves as a gift in commemoration of Agricultural Krida Day, observed every 21 June. He said the momentum of Agricultural Krida Day is a reminder of the importance of concrete actions that directly impact the economy of oil palm farmers through stable market certainty and optimal harvest absorption. The company believes that farmer welfare is not only determined by ceremonial celebrations but also by the certainty that their harvests can be properly absorbed and provide sustainable economic value. “When prices are dynamic or during the peak harvest season, our palm oil mills strive to maintain their reliability,” he stated. In addition, the company ensures that purchase prices remain highly competitive, transparent, and always guided by pricing regulations from the local government. This positive downstream intervention aims to prevent disruption to the palm oil trading system at the farmer level. Nevertheless, the company acknowledges that the dynamics of smallholder palm oil extend beyond harvest absorption. The threat of declining productivity due to ageing trees poses a significant future challenge. “In response to this, we are taking an educational and mentoring approach to smallholder replanting,” he said. PTPN IV PalmCo Director of Institutional Relations Arya Sandhiyudha stated that mentoring farmers is a crucial requirement to maintain the sustainability of their businesses. According to him, farmer welfare cannot be supported solely by harvest absorption but also requires increased plantation productivity through continuous education. “We must think about and care for the productivity of their plantations for the next 10 to 20 years. That is where the importance of continuous education and mentoring within our partnership ecosystem lies,” said Arya. The ongoing field mentoring also covers the fulfilment of legality requirements, technical aspects, and production offtakers. As a note, throughout 2025, the company provided mentoring for an area of 23,188 hectares. This positive achievement is being continued this year, with the mentoring process having reached 6,380 hectares up to May 2026. Arya stated that this achievement in land area is a starting point for transforming smallholder plantation governance towards Good Agricultural Practices (GAP) standards.