Minister of Agriculture asks 170 companies to increase the price of TBS palm oil

Minister of Agriculture Amran Sulaiman. (Teddy Kurniawan)

JAKARTA - Minister of Agriculture Amran Sulaiman emphasized that he would continue to pressure palm oil companies that had not raised the price of fresh fruit bunches or TBS. He said that the decline in TBS prices in recent days had begun to recover, although it had not completely returned to normal.

"Alhamdulillah it has returned to normal. But there are still a few, maybe around 5 percent who have not recovered up to 10 percent," said Amran at the Presidential Palace Complex, Thursday, June 18.

Amran said that his party had previously written to 274 companies regarding the TBS price. Of that number, there are still around 170 to 180 companies that have not raised prices.

"More than 100 of the 274 yesterday that I asked for. There are probably about 170-180 that haven't," he said.

He emphasized that the government would not stop following up on the issue until the company raised the price of TBS.

"We will follow up until he has to raise it, absolutely raise it," said Amran.

TBS is a palm fruit that farmers sell to factories to be processed into crude palm oil. Therefore, the decline in TBS prices is directly felt by palm oil farmers.

Apart from the TBS price, Amran said the agenda for discussion at the Palace was also related to food. The issue includes food balance and downstream.

"Then food, our food balance and its downstream," he said.

Amran also answered questions about anticipation of the dry season. He said the government had prepared a number of steps, ranging from irrigation improvements, the provision of seeds and seedlings for drought-prone areas, to pumping.

According to Amran, the prediction of a strong El Nino in April did not fully occur as feared. He said that some areas were actually still flooded in May, even the latest report he received showed that flooding was still occurring in a number of areas.

"He said April El Nino godzila, but it turned out to be a flood. May floods. I just received reports from several areas that are still flooded," said Amran.

Even so, he admitted that July, August, and September still had to be wary because they entered the dry season.

"If July, August, September is indeed a dry season," he said.

Amran said that pumps and irrigation pumps or irpom had been installed in the field to face the risk of drought.

"We have improved irrigation, then seeds, seedlings that will be dry, then pumping. Irpom, irrigation pumps have been installed in the field," he said.