Indonesian Palm Oil News (IPO News), Padang — Fresh fruit bunch (FFB/TBS) prices for partnered smallholder oil palm farmers in West Sumatra have declined again. For the September 22–30, 2026 period, the official FFB price for oil palm aged 10–20 years was set at Rp3,987.27 per kilogram, down Rp55.44/kg from Rp4,042.71/kg in the previous period.
The price was determined by the West Sumatra Provincial FFB Price Determination Team during a meeting at the Plantation Division of the West Sumatra Agriculture and Horticulture Office in Padang on September 23, 2026.
The latest decline is notable because the FFB price had remained above the Rp4,000/kg level in the previous period. The latest correction has therefore brought the benchmark price back below the psychological Rp4,000/kg threshold.
CPO PRICE BECOMES ONE OF THE KEY FACTORS
One of the components influencing the latest FFB price determination was the price of crude palm oil (CPO). The local CPO reference price was recorded at Rp15,501.24/kg, based on the average price from four companies: PT AMP, PT GMP, PT KSI and PT MA.
Meanwhile, the palm kernel price stood at Rp13,680/kg, while the shell price was recorded at Rp15.63/kg. The K index used in the latest price calculation reached 94.34%.
The decline illustrates how closely farmers’ FFB prices are linked to movements in key palm oil products, particularly CPO and palm kernel, as well as the regional pricing formula.
FARMERS WATCH PRICE MOVEMENTS CLOSELY
For oil palm smallholders, changes in FFB prices are an important concern because they directly affect farm income. At the same time, farmers continue to face costs for plantation maintenance, fertilizers, labor, transportation and other production requirements.
According to data from Indonesian Palm Oil News (IPO NEWS), West Sumatra’s FFB prices have shown relatively dynamic movements throughout September 2026. After rising above Rp4,000/kg, the price has now corrected in the latest pricing period.
With the FFB price for 10-20 year old palms standing at Rp3,987.27/kg for September 22-30, developments in CPO and palm kernel prices, along with the next regional price determination, will remain closely watched by oil palm farmers and industry players in West Sumatra.
Earlier data also showed West Sumatra among the provinces with relatively high partnered smallholder FFB prices. During the September 14-20 period, West Sumatra’s price stood at around Rp4,042/kg, while North Sumatra reached approximately Rp4,066/kg.
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