Palm Oil Prices

Higher fresh fruit bunch prices have quickly changed the mood in Musi Rawas plantations. Farmers who had scaled back maintenance are now returning to more intensive care because the current market is seen as more rewarding. The price movement is not only affecting harvest income, but also the way growers manage their estates. When prices improve, fertilizing, cleaning, and crop maintenance usually move back to the top of the list. Buying Prices at the Farm Gate Umar, a palm oil collector in Tugumulyo District, said the market price for TBS follows broader market conditions. He said the current purchase price has reached Rp2.750 per kilogram, with payment adjusted according to fruit quality. For grade B fruit, the buying price is around Rp1.500 per kilogram. That gap shows how much fruit quality still shapes the income farmers take home after a harvest. Category Price Notes TBS purchase price Rp2.750 per kilogram Adjusted by quality Grade B fruit Rp1.500 per kilogram Lower quality category Umar said the rise this month has had a direct effect on farmer enthusiasm. According to him, growers are once again motivated to care for their plantations because the price level is considered acceptable. That response matters in a region where maintenance costs can strongly affect long-term productivity. Better prices give farmers more room to prioritize work that supports future yields rather than only short-term harvests. Provincial Price Setting Shows Wider Gains At the provincial level, the South Sumatra TBS Price Determination Team for the second period of June 2026 set higher numbers for several age groups of palm trees. For palms aged 10–20 years, the TBS price was set at Rp3.723,87 per kilogram. The official breakdown also shows how age continues to influence pricing. Younger trees were set at Rp3.139 per kilogram for age 3, Rp3.236 for age 4, Rp3.380 for age 5, Rp3.420 for age 6, Rp3.419 for age 7, Rp3.534 for age 8, and Rp3.601 for age 9. Tree Age TBS Price Tree Age TBS Price 3 years Rp3.139 21 years Rp3.712 4 years Rp3.236 22 years Rp3.718 5 years Rp3.380 23 years Rp3.692 6 years Rp3.420 24 years Rp3.587 7 years Rp3.419 25 years Rp3.598 8 years Rp3.534 26 years Rp3.533 9 years Rp3.601 27 years Rp3.479 10–20 years Rp3.723,87 28 years Rp3.418 29 years Rp3.351 30 years Rp3.280 For older plantations, the price was set at Rp3.712 per kilogram at age 21, Rp3.718 at age 22, Rp3.692 at age 23, Rp3.587 at age 24, Rp3.598 at age 25, and Rp3.533 at age 26. The list continued with Rp3.479 at age 27, Rp3.418 at age 28, Rp3.351 at age 29, and Rp3.280 at age 30. The same determination also covered downstream palm oil products. Crude palm oil was set at Rp14.946 per kilogram, palm kernel at Rp12.225 per kilogram, and shell at Rp17,61 per kilogram, with K index at 93 percent. For farmers in Musi Rawas, the latest price movement is more than a market update. It is a signal that plantation care can be resumed with greater confidence as long as prices remain at a profitable level.

Palm Oil Prices Rebound in Musi Rawas, Farmers Return to Intensive Field Care