Independent palm oil farmers in Riau Province are grappling with a significant downturn in the price of fresh fruit bunches (FFB). Prices have plummeted by Rp 437.44 per kilogram, representing an 11.79 percent drop from the previous period, settling at Rp 3,271.91 per kilogram. This crucial information was disclosed by Vera Virgianti, the Acting Head of the Processing and Marketing Division at the Riau Provincial Plantation Office.
Vera elaborated that this notable price reduction predominantly affects FFB from 9-year-old palm trees, a category that typically commands the highest prices. The new pricing structure is set to be effective for the upcoming week, specifically from June 3 to June 9, 2026.
“This week’s price decline is primarily attributable to the simultaneous fall in both palm kernel and Crude Palm Oil (CPO) prices,” stated Vera in Pekanbaru, Riau, on Wednesday, June 3, 2026, as quoted by Antara.
The CPO market experienced a substantial drop, with prices decreasing by Rp 1,726 per kilogram to reach Rp 15,344 per kilogram compared to the previous week. Concurrently, palm kernel prices also saw a significant reduction of Rp 1,845.65 per kilogram, now standing at Rp 13,400 per kilogram this week.
Mirroring the challenges faced by independent farmers, the purchase price for FFB from plasma farmers—those operating under partnership schemes—also registered a decline for the coming week. Their prices decreased by Rp 100.02 per kilogram, a 2.54 percent reduction from the previous period, bringing the new rate to Rp 3,832.61 per kilogram.
According to Vera, the selling price of CPO for plasma farmers this week also saw a decrease of Rp 69.94 per kilogram, settling at Rp 15,344 per kilogram. Similarly, the price of palm kernel for plasma FFB dropped by Rp 1,806.54, reaching Rp 13,400 per kilogram.
Vera affirmed that companies partnered with the Riau Provincial Plantation Office have agreed to these newly established prices. To ensure fair trade practices, the office has issued a directive to district and city plantation offices, urging them to intensify supervision over mills that may be purchasing palm oil below the official rates set by the Plantation Office.
“Indeed, these Plantation Office prices are specifically applicable to our partnered entities, and therefore, the quality of the FFB must also strictly adhere to the terms outlined in their partnership agreements,” Vera clarified, emphasizing the importance of adherence to quality standards.
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Summary
The price of fresh fruit bunches (FFB) for independent palm oil farmers in Riau Province has dropped significantly to Rp 3,271.91 per kilogram, marking an 11.79 percent decrease. This decline, effective from June 3 to June 9, 2026, is primarily driven by a simultaneous fall in the market prices of both Crude Palm Oil (CPO) and palm kernels. Plasma farmers under partnership schemes have also experienced a price reduction, with their rates now set at Rp 3,832.61 per kilogram.
The Riau Provincial Plantation Office has confirmed that partnered companies must adhere to these new, lower price levels. To ensure compliance and fair trade, local plantation offices have been instructed to intensify supervision of mills. Officials further emphasized that these official rates apply specifically to partnered entities, provided that the fruit quality meets the strict standards outlined in their partnership agreements.