Smallholder Palm FFB Prices Fall in Early October 2026, Riau Down as Much as 3.45%

Pekanbaru — Oil palm smallholders in several producing regions are facing lower fresh fruit bunch (FFB) prices in early October 2026. In Riau, the province with Indonesia's largest oil palm area, FFB prices for the 7–13 October 2026 period fell by as much as 3.45%, tracking weaker crude palm oil (CPO) and palm kernel prices.

Riau: independent and plasma prices both lower

Under the determination by the Riau Provincial Plantation Office, the FFB price for independent smallholders in the 9-year palm age group—the highest price bracket—was set at IDR 3,733.74 per kg, down IDR 133.23, or about 3.45%, from the previous period. For plasma smallholders with 9-year-old palms, the price fell IDR 115.43, or 2.95%, to IDR 3,796.85 per kg.

Defris Hatmaja, head of processing and marketing at the Riau Plantation Office (Disbun), said the decline was mainly due to lower prices for CPO and palm kernels, as reported by ANTARA and Suara Riau. In this determination, the CPO price was recorded at IDR 15,063.53 per kg, down IDR 489.13 per kg, while the kernel price for plasma smallholders fell IDR 529 to IDR 12,903 per kg.

Other provinces

Province	Period	FFB price (reference)	Change
Riau (independent, 9-year-old palms)	7–13 Oct 2026	IDR 3,733.74/kg	−IDR 133.23
Riau (plasma, 9-year-old palms)	7–13 Oct 2026	IDR 3,796.85/kg	−IDR 115.43
North Sumatra (10–20-year-old palms)	30 Sep–6 Oct 2026	IDR 3,801.58/kg	−IDR 169.53
West Sumatra (10–20-year-old palms)	Period I, Oct 2026	IDR 3,966.94/kg	−IDR 20.33
Jambi (highest)	2–8 Oct 2026	IDR 3,758.31/kg	—
West Kalimantan (highest)	Period I, Oct 2026	IDR 3,537.64/kg	—
Bengkulu (highest)	1–15 Oct 2026	IDR 3,481.52/kg	—
East Kalimantan (10–20-year-old palms)	Period II, Sep 2026	IDR 3,617.55/kg	+IDR 13.18

The prices above are reference prices set by provincial governments for FFB from partner/plasma and independent smallholders. Actual farm-gate prices may differ depending on fruit quality, distance to the mill, transport costs and the policies of individual palm oil mills.

Why do FFB prices follow CPO?

FFB prices are calculated from companies' selling prices for CPO and palm kernels, multiplied by the extraction rate and the K index—the share of the price that goes to farmers. As a result, every correction in domestic and global CPO prices is felt directly at farm level, usually with a lag of one pricing period. The recent weakness in CPO prices has been driven by pressure from the Malaysian exchange, softer soybean oil and concerns over stocks—read: CPO prices weaken ahead of MPOB data.

On the other hand, the B50 biodiesel programme now under way provides a cushion of domestic demand that helps keep prices from falling further. Data from the Indonesian Palm Oil Association (GAPKI) show palm oil uptake for biodiesel rose 13.59% in July 2026 to 1.285 million tonnes.