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| East Kalimantan palm oil FFB prices rose 0.43 percent to Rp3,266 per kg in early March 2026, driven by improved production quality and multi-sector pricing decisions. (Illustration image AI) |
Samarinda – Fresh fruit bunch (FFB) prices for palm oil in East Kalimantan increased during the period of March 1–15, 2026. The rise was driven by improvements in production quality at the farmer level.
Acting Head of the East Kalimantan Plantation Office, Ahmad Muzakkir, stated that FFB prices reached Rp3,266.40 per kilogram (kg), marking an increase of Rp13.90 or 0.43 percent compared to the February 16–28, 2026 period, which stood at Rp3,252.50 per kg.
The price applies to FFB harvested from palm trees aged 10 years and above. Meanwhile, FFB from younger plantations is priced slightly lower.
Muzakkir explained that the price determination is conducted by a multi-stakeholder team involving the Plantation Office, farmer representatives, and palm oil companies. This approach aims to ensure a fair balance so that prices do not disadvantage either farmers or industry players.
“The pricing mechanism is designed collaboratively to maintain fairness for all parties,” he said.
He further emphasized that the official price applies only to plasma plantations or partnership-based farms, including independent smallholders who are affiliated with palm oil mills.
This policy aligns with Minister of Agriculture Regulation No. 01/Permentan/KB.120/1/2018, issued on January 2, 2018, which provides guidelines for setting FFB purchase prices to improve farmer welfare through structured partnerships.
The government also encourages farmers to form institutions such as cooperatives, farmer groups, or village-owned enterprises (BUMDes). By organizing and partnering with processing mills, farmers can strengthen their bargaining position and avoid price manipulation by middlemen.
FFB Price Breakdown by Tree Age
The detailed FFB prices for the March 1–15, 2026 period based on plantation age are as follows:
9 years: Rp3,228.61 per kg
8 years: Rp3,160.65 per kg
7 years: Rp3,137.34 per kg
6 years: Rp3,118.18 per kg
5 years: Rp3,084.55 per kg
4 years: Rp3,064.31 per kg
3 years: Rp2,875.21 per kg
The price increase signals a positive trend for the palm oil sector in East Kalimantan, although the growth remains moderate. Stability is expected to continue as production quality improves and farmer institutions become stronger.
