Batam – Oil Palm Farmers have suffered losses from the falling prices of fresh fruit bunches (FFB) and they told their concerns directly to the Presidential Chief of Staff Moeldoko during his official visit to Batam, Riau Islands, Saturday (25/6).
Indonesian Oil Palm Farmers Association (Apkasindo) chairman Gulat Manurung revealed that the drop in the price of FFB happened in 22 provinces. As of June 23, the price fell to Rp 1,127 (0.76 US cents) per kilogram for independent farmers, and it dropped to Rp 2,002 per kilogram for partnered farmers.
“This price is 24-57 percent below the normal price determined by the Plantation Agencies in the 22 provinces. It certainly has multiple effects on farmers. We met Mr. Moeldoko to ask for advice. Because apart from being a Chief of Staff to the President, he is also the Apkasindo Board of Trustees and he understands the matter really well,” said Gulat.
According to Gulat, the drop in FFB prices was due to the amount of export taxes. Such as Export Duties, Export Levies, fulfillment of Domestic Market/Price Obligations (DMO/DPO), as well as accelerated “Flush Out” exports. The amount of these export taxes is unfortunately charged to farmers.
“Even though the price of Rotterdam CPO on June 23, 2022 reached US$1,450 per ton, farmers can only enjoy the FFB price of Rp 1,027 – Rp 2,002 per kilogram. Further, for farmers who can only sell to collectors, FFB is only valued at Rp 400 per kilogram,” explained Gulat.
Furthermore, Gulat demanded the government to apply Domestic Market/Price Obligation (DMO/DPO) and accelerated Flush Out (FO) exports as options, rather than legally bound actions.
“The Flush Out shipments should be made as an alternative for exporters unwilling to comply with the DMO/DPO scheme. So, if exporters do not wish to fulfill the DMO/DPO, they may replace it with a flush out scheme of 200 thousand US Dollars per ton,” he suggested.
Meanwhile, the Presidential Chief of Staff, Dr. Moeldoko told the farmers that he would try his best to advocate the increase of FFB Prices. “I will also immediately deliver these concerns and proposals to the President himself,” said Moeldoko.
