The Aceh Barat Regency government has discovered that all palm oil mills (PKS) in the region are purchasing fresh fruit bunches (FFB) from local farmers at prices significantly below the official rate. This practice affects all farmers in the region, prompting an investigation by local authorities. The discrepancy between the official price and the price paid to farmers is substantial, causing concern for the economic well-being of the agricultural community. Officials have not yet disclosed the extent of the price difference or the reasons behind the mills’ actions. The investigation aims to determine the cause of the underpayment and ensure fair compensation for farmers. This issue highlights ongoing challenges faced by smallholder palm oil farmers in Indonesia regarding price transparency and market power dynamics. Further details regarding potential penalties or corrective measures are pending the outcome of the investigation.
