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Environment Info : The Characteristics of Palm Oil Industries

24 June 2014 , 17:44 WIB | Read : 1079 | By : Lalang Buana

Trigger chronic problems between the farmers and the POF

Usually  the chronic problem in the palm oil centers are: the farmers do not sell their harvests and do not cooperate with the palm oil factory (POF). This makes local conflict between them and the Regional Government as the regulator.

The second is when there are decreasing harvests, the price of the fruit is made by Fruit Price Determination Team or Tim Penetapan Harga TBS for the farmers.

For example, in District of Kotabaru, South Kalimantan. When the price of the fruit of the independent farmers increased, the plasma farmers’ fruit in January – February decreased drastically. “If in December – January we could have Rp 1,5 millions per hectare, in January – February we got Rp 300 – 600 thousands per hectare,” plasma farmer, Abu Bakar, as it was quated from the page InfoSAWIT.com.

It also happened in Jambi that the global demands of crude palm oil decreased, and effected to the domestic markets. Indonesian Palm Oil Businessmen Association (IPOBA), Province of Jambi predicted, it would happen for the next two months and the farmer would get the effects. As it was reported in tribunnews.com Chairman of IPOBA, Jambi, A Karimuddin said, some factories limited to cultivate the fresh fruit.

When there was a problem with the POF, the third side both government and non government organization would intervence to help the farmers. But it got worse.

Actually, the problem happened for the regular or economical problem in the industries, such as, the fluctuation of the plants, the capacity of POF, the fluctuation of demand, the price of the natural oil in the world. All sides should understand those characters, including the farmers, both in partnership or non partnership, the government and non government organization so it could be handled right and would not make worse.

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