PEKANBARU — The Riau Provincial Plantation Office has announced a decrease in the price of oil palm fresh fruit bunches (FFB) for plasma partnership farmers for the period of May 7 to May 20, 2025.

The most significant drop occurred for nine-year-old palm trees, with the price falling by IDR 36.32 per kilogram, or 1.00 percent, compared to the previous period. The new price is set at IDR 3,580.56 per kilogram, while the shell price stands at IDR 19.89 per kilogram.

Defris Hatmaja, Head of Processing and Marketing at the Riau Plantation Office, explained that the decline was due to falling prices of Crude Palm Oil (CPO) and palm kernel this week.

“As a result, the purchase price of FFB for farmers has dropped to IDR 3,580.56 per kilogram, with the shell price set at IDR 19.89 per kilogram,” said Defris Hatmaja on Tuesday (May 6, 2025).

He added that the K index used in this pricing period is 92.54 percent. The selling price of CPO decreased by IDR 204.55, while the palm kernel price fell by IDR 126.90 compared to the previous week.

In determining the price, the Plantation Office also took into account several palm oil mills that reported no sales. In accordance with Article 8 of the Minister of Agriculture Regulation No. 01 of 2018, average team prices or KPBN (Indonesia Commodity and Derivatives Exchange) prices are used when validation rule 2 applies.

“The average KPBN price for CPO during this period is IDR 13,950.00, while the average kernel price follows the previous period’s KPBN average of IDR 13,988.00,” he explained.

Despite the price decline, Defris emphasized that the effort to improve the price-setting system remains a shared commitment supported by all stakeholders, including the Riau Provincial Government and the Riau High Prosecutor’s Office.

“This joint commitment will ultimately lead to higher farmer incomes and, eventually, improve community welfare,” he concluded.

Riau Province Plasma FFB Price List – Decree No. 15 for May 7–20, 2025:

- Age 3 years: IDR 2,769.54

- Age 4 years: IDR 3,130.90

- Age 5 years: IDR 3,315.47

- Age 6 years: IDR 3,458.43

- Age 7 years: IDR 3,533.79

- Age 8 years: IDR 3,575.38

- Age 9 years: IDR 3,580.56

- Age 10–20 years: IDR 3,562.36

- Age 21 years: IDR 3,507.76

- Age 22 years: IDR 3,455.76

- Age 23 years: IDR 3,399.86

- Age 24 years: IDR 3,338.76

- Age 25 years: IDR 3,269.86

Author: Sri Wahyuni
Editor: M. Iqbal