Palm Oil in West Java Questioned, POPSI Warns Farmers Face Risks Without Processing Plants

Chairman of the Perkumpulan Organisasi Petani Sawit Jaya Indonesia (POPSI), Mansuetus Darto, said that without downstream processing support, smallholders would bear the greatest risks.

“Restrictions should not be framed in terms of yes or no. What matters is the production capacity of existing mills. If planted areas exceed mill absorption capacity, farmers will suffer the losses,” Darto told on Tuesday (January 6, 2026).

He warned that mismatches between smallholder acreage and mill capacity could lead to low fresh fruit bunch (FFB) prices or, in extreme cases, unsold harvests.

Darto said the restriction policy is understandable, as West Java is not a natural oil palm ecosystem. Currently, only one palm oil mill operates in the province, supported by a nucleus estate of about 15,681 hectares as of 2023.

“With these conditions, absorption space for smallholder FFB is very limited,” he said.

He cautioned that allowing farmers to plant palm oil freely without adequate information, clear cooperation with mills, and industrial ecosystem support would weaken farmers’ bargaining position.

“What is the point of harvesting if mills cannot absorb the fruit? Even if they do, prices will be low. Farmers would have used up their land without gaining decent economic returns,” he said.

Darto also noted that restrictions may serve political branding purposes, portraying authorities as pro-environment, or even align with industrial interests seeking to keep supply concentrated in core estates.

Nevertheless, he believes the West Java governor likely understands the structural risks farmers face without processing support. Any palm oil policy, he said, must prioritize farmer protection rather than administrative bans alone.

“If the goal is to protect farmers, then what’s needed is clarity on whether palm oil is economically viable in the region. Otherwise, farmers will become policy casualties,” Darto said.