Indonesia sees palm oil fruit prices recovering soon

Bengkulu (ANTARA) - Indonesia can expect palm oil fresh fruit bunch prices to recover after recent declines in several producing regions, Regional Representatives Council (DPD) Speaker Sultan B. Najamudin said, citing government assurances that market conditions will gradually normalize.Najamudin said he had conveyed farmers’ concerns over weakening prices, which became increasingly apparent last month, directly to the government following discussions with Deputy Agriculture Minister Sudaryono.

“I recently met again with the deputy minister. We understand conditions in the field, and Mr. Sudaryono has assured us that prices will gradually normalize,” Najamudin said in remarks received in Bengkulu on Tuesday.

He said the price decline was a reasonable consequence of a policy adjustment and emphasized that such fluctuations are temporary and common during market transitions.

Najamudin linked the recent pricing pressure to the government’s decision to establish a single official channel for crude palm oil exports.

“This is merely a shock effect. Once all technical regulations governing the single-channel export policy are finalized, the market will adjust accordingly,” the senator said.

He also assured palm oil farmers nationwide that the DPD would continue monitoring developments to help safeguard stability across the industry.

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“We ask farmers to remain calm, as the DPD is focused on this issue and committed to protecting their livelihoods,” he said.

Fresh fruit bunch prices have fallen in several regions, particularly across Sumatra and Kalimantan, after the government appointed PT Danantara Sumber Daya Indonesia to manage exports of natural resources, including palm oil.

In Bengkulu Province, prices declined to about Rp2,400 per kilogram from around Rp3,100, equivalent to roughly US$0.13 per kilogram.

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Sudaryono has urged industry participants to remain calm and continue referring to prices set by PT Kharisma Pemasaran Bersama Nusantara, a subsidiary of the state plantation holding company.

He also warned that companies violating regulations governing fresh fruit bunch trading could face permit revocation.