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Jakarta – The Indonesian Palm Oil Farmers Union (SPKS) has expressed its support for government efforts to improve palm oil trade management in ways that benefit the national economy, safeguard Fresh Fruit Bunch (TBS) prices, and protect farmer welfare—provided these measures remain transparent, fair, and do not impose additional burdens on producers.
The union called on PT Danantara Sumberdaya Indonesia (DSI) to prioritize strengthening palm oil trade administration through export transaction transparency, data integration, and improved government revenues.
The position was part of a series of demands raised during demonstrations held in Jakarta last Thursday to mark National Agricultural Development Day.
Marselinus Andri, SPKS Director of Advocacy and Legal Affairs, said the single-gate export policy is expected to focus on enhancing trade management, boosting government revenues, and ensuring transparency in export transactions to combat practices related to under-invoicing and price suppression, with particular attention to protecting TBS prices and the welfare of palm oil farmers.
Andri stated: 'We hope Danantara will serve as a tool to promote transparent and accountable export governance. By integrating data and improving transaction oversight, state revenues can be enhanced without imposing extra costs that could negatively impact TBS prices at the farm level.'
He stressed that transparency is a cornerstone of implementing the single-gate export policy, calling for openness in export pricing mechanisms, reference prices, cost components, margins, and the volume and value of palm oil trade transactions. Such transparency would strengthen oversight and ensure a clear and fair link between crude palm oil (CPO) export prices and the prices received by farmers for their fresh fruit bunches.
The union also expressed hope that the company would reinforce its role in data integration and export supervision without creating new commercial chains or imposing additional fees that could pressure TBS prices.
SPKS President Sparodin emphasized that Danantara should not act as a direct player influencing transactions and trade in palm oil and its derivatives, stating: 'Danantara's policies should focus on strengthening corporate governance and export transparency, without creating new commercial chains or costs that could drive down TBS prices.'
Sparodin voiced the union's categorical rejection of any new export fees to be imposed by Danantara, warning that such measures would pressure prices and reduce returns for palm oil farmers across Indonesia. He called on the company to focus on data integration, transaction transparency, and export supervision to prevent under-invoicing and price transfer practices—thereby improving state revenues while protecting TBS prices.
Sparodin stressed that independent palm oil farmers represent a pivotal pillar of the national production chain, meaning any adjustments to export policy must take into account their direct impact on farmer livelihoods and the future of the sector. He added: 'We support the government's efforts to improve export management, boost revenues, and strengthen the national palm oil industry. However, we hope that all adopted policies continue to serve as a safety net for TBS prices and farmer income.'
In addition to demanding transparency, the union called on the government to consider adopting a minimum TBS price mechanism as a tool to protect farmer income during periods of export price volatility or trade policy adjustments. It also requested guarantees that all palm oil mills (PKS) continue to receive farmers' harvests under existing terms, and that the single-gate export policy does not disrupt market access or the smooth sale of fresh fruit bunches from independent farmers.
In this context, SPKS submitted 13 demands, including: enhancing export transparency, protecting TBS prices, monitoring trade cost margins, ensuring mills receive harvests, and involving farmer organizations in policy formulation and evaluation. The union also called for alignment between export prices, crude palm oil prices, the K index, productivity levels, and TBS prices, to create a more transparent and fair pricing mechanism.
Source: VOI.ID