JAKARTA - The Minister of Trade (Mendag) Zulkifli Hasan has set a target price of oil palm fresh fruit bunches (FFB) at the farmer level to be at the level of Rp. 2,400 per kilogram (kg). To achieve this target, he said the government made various efforts.
"We will make every effort for these fresh fruit bunches. I have calculated that the price should be Rp. 2,400," he said after the Limited Meeting at the Presidential Palace, Jakarta, Tuesday, July 18.
Zulhas, who is familiar with Zulkifli Hasan, believes that the price of FFB will be after the government temporarily abolishes the export levy of US$200 per ton. However, he admits, it takes time to raise the price of FFB.
"The price of FFB at the farm level can be Rp. 2,400 per kg. Of course it will take time, because this (abolition of export levies) only applies for 2-3 days," he explained.
On this occasion, Zulhas explained that the total production of crude palm oil (CPO) alone was 48 million tons. Meanwhile, if we add 4 million tons of remaining stock last year, the supply will be 52 million tons. The CPO, continued Zulhas, will be used for B30 as much as 9 million tons.
While the rest, said Zulhas, is used for downstream products such as cooking oil (migor), margarine, and others as much as 30.6 million tons.
"So the CPO is only around 3.4 million. Make a note of that. So of the 52 million, which is exported in the form of CPO, it's actually only 3.4 million. A little. fresh, the price becomes cheap," he said.
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