InfoSAWIT, JAKARTA – The chairman of the DPD I Association of North Sumatran Palm Oil Palm Farmers (Aspek-PIR), Syarifudin Sirait, admitted that he had spoken to all administrators throughout Indonesia so that Aspect-PIR would seek to export fresh fruit bunches (FFB) of palm oil to Malaysia.
This was done because the price of palm FFB in Malaysia is much higher than in Indonesia, including in Gotting Sidodadi Village, Bandar Pasir Mandoge District, Asahan Regency, North Sumatra Province,
So, in order to remain polite and comply with etiquette and all existing regulations, the application for a palm oil FFB export permit must be submitted to President Joko Widodo (Jokowi) and the related ministries.
Although it is impossible to fulfill, it turns out that Aspect-PIR is serious about applying for a palm oil FFB export permit to Malaysia. To InfoSAWITMonday (27/6/2022), Syarifudin Sirait showed an official letter from the Central PIR Aspect.
“The letter is dated today, Monday (27/6/2022), Number 019/dpp-ASPEKPIR/VI/22, regarding the application for a FFB export permit to Malaysia,” said the Chairman of the Palm Oil Farmers Cooperative (KPKS) Ambar Agreement.
The letter, he said, was directly signed by the General Chairperson of Aspect-PIR, Setiyono and the Secretary General of Aspectpir, Bambang Gianto, and addressed to the Minister of Trade, Zulkifli Hasan and copied to President Jokowi, Minister of Agriculture, Syahrul Yasin Limpo, Directorate General of Plantations, Directorate General Foreign Trade, and to the Indonesian PIR-Aspect Guidance Council.
The following is the contents of the application letter for export of palm FFB by Aspect-PIR to the Central Government:
Assalamu ‘alaikum Warahmatullahi Wabarakatuh
Currently, the price of FFB (Fresh Fruit Bunches) for oil palm that we receive as plasma farmers is very low. The price set by the Plantation Service is also low. The moment when we enjoyed the highest price of around Rp. 3,900/kg immediately disappeared due to the export ban policy. Although now exports have been reopened, the Palm Oil Mill (PKS) tanks in place are still full.
The price of FFB determination by the Disbun is currently around Rp. 1,400-2,600/kg, while conditions like now where the price of production inputs is high, such as NPK is already Rp. 1.2 million/bag and herbicides are Rp. 2.3 million/package of 50 liters making coconut farming business. palm oil is not profitable and currently the majority of mills buy FFB below the fixing price.
In this regard, ASPEKPIR Indonesia asked for permission so that the cooperative could export FFB to Malaysia. The price of FFB in Malaysia, namely Sabah and Sarawak, is still high and they are ready to accommodate FFB from Indonesia. FFB from West Kalimantan, especially cities near the FFB border, can arrive within 1 x 24 hours to PKS in Malaysia.
As coconut farmers in South Sumatra, Riau and Riau Islands are mostly exporters of round coconut to Singapore and Malaysia, West Kalimantan farmers, especially the West Kalimantan ASPEKPIR member cooperative, are also ready to export FFB to Malaysia.
We ask that the Minister of Trade and the Minister of Agriculture will allow us to legally export FFB to Malaysia. You understand the legal aspect better and we will follow it. We know that the government is trying to normalize the price of FFB but now that the water is at our necks and if there are even the slightest waves we could drown, then the most appropriate solution is a FFB export permit to Malaysia.
If it is successful in West Kalimantan, the cooperative members of ASPEKPIR Riau and East Kalimantan will also do the same. Thank you for your attention and we ask that we can immediately get an answer as a solution to the weakness of domestic prices.