JAKARTA - Minister of Trade Zulkifli Hasan targets the price of oil palm fresh fruit bunches (FFB) at the farmer level to reach IDR 2,400/kilogram. FFB is oil palm fruit after being released from the bunch, which is then processed and processed into two main products, namely crude palm oil or CPO and palm kernel oil or PKO.
"We will make every effort for these fresh fruit bunches. I have calculated it, it should cost IDR 2,400", said Zulkfili at the Presidential Palace, quoted by Antara, Monday, July 18.
Zulkifli said the Minister of Finance had removed the export levy which reduced the time for calculating FFB.
"So there is no reason that the price of these bunches will be below IDR 2,000. According to my calculations, it should be IDR 2,000 to IDR 2,400/kilogram at the farmer level. Of course, it will take time, because this is only valid for 2-3 today", said Zulkifli.
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According to the Indonesian Palm Oil Farmers Association (Apkasindo), the real price of FFB purchases at the farmer level continues to fall. The price of FFB before the ban on the export of Crude Palm Oil (CPO) reached IDR 4,250 per kilogram, but the purchase price per kilogram of FFB in early July 2022 was an average of IDR 916 for independent smallholders and IDR 1,259 for plasma farmers.
"Our total production of CPO palm is 48 million, last year's remaining stock was 4 million, so 52 million. Of the 52 million, only 3.4 million were exported in the form of CPO", said Zulkifli.
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