Palm Oil Prices Continue To Hit Due To Sales Of CPO To Limited Suppliers, Effects Of Jokowi's Export Ban?

Illustration of the price of palm oil. (Photo: buttmkp.karantina.pertanian.go.id)

JAKARTA - Oil palm plantation farmers in Mukomuko Regency, Bengkulu, are restless. This is because the purchase price of fresh fruit bunches of oil palm continues to decline.

The Head of the Mukomuko Regency Agriculture Service, Apriansyah, said that this price decline had occurred two days in a row. Today, Saturday, May 14, the price of palm oil fell again by an average of Rp. 150 per kilogram.

"The day before, the price of palm oil also fell by Rp. 100 - Rp. 400 per kg," said Apriansyah, as quoted by Antara. According to him, this decline was seen in data on the purchase of palm oil fresh fruit bunches for two days from 13 to 14 May 2022 from 10 palm oil mills. This decline was allegedly due to limited sales of crude palm oil (CPO) to suppliers. ). He said it was possible that the price of FFB purchased by palm oil mills in the area would decline again. .

Previously, Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira reminded that the government must immediately lift the ban on CPO exports. He considered this ban to have a multiple negative impact, not only on palm oil business actors but also on 3 million oil palm farmers in Indonesia.

The low absorption of CPO due to the export ban has depressed FFB prices. In fact, a number of palm oil mills in the near future will find it difficult to receive FFB from farmers because the CPO storage tanks are starting to fill up.

"The excess supply of palm oil which has been absorbed in the export market is impossible to absorb in the domestic market. Immediately lift the ban," said Bhima in Jakarta, quoted from Antara.

The following are the details of the decrease in the purchase price of FFB in Mukomuko Regency, Bengkulu:

The price of palm oil at PT Sapta Sentosa Jaya Abadi decreased from IDR 1,550 per kilogram to IDR 1,400 per kg The price of palm oil at PT Surya Andalan Primatama was IDR 1,780 per kg The price of palm oil at PT Daria Dharma Pratama decreased from IDR 1,980 per kg to Rp1,740 per kg The price of palm oil at PT Usaha Sawit Mandiri fell from Rp1,750 to Rp1,600 per kg The price of palm oil at PT Bumi Mentari Karya fell from Rp1,800 per kg to Rp1,1730 per kg The price of palm oil at PT Karya Sawitindo Mas decreased from Rp.1,990 per kg to Rp.1,840 per kg. The price of palm oil at PT Mukomuko Indah Lestari decreased from Rp.1,990 per kg to Rp. 1,840 per kg. The price of palm oil at PT Sentosa Sejahtera Sejati fell from Rp.1. 970 per kg to Rp1,820 per kg The price of palm oil at PT Karya Agro Sawitindo fell from Rp2,020 per kg to Rp1,820 per kg The price of palm oil at PT Gajah Sakti Sawit decreased from Rp2,040 per kg to Rp1,890 per kg kg