The price analysis of palm oil commodity in Banjarmasin South Kalimantan

This study aimed to analyze the price of oil palm commodity at Banjarmasin, to develop cost component and impacts on Government policies in the oil palm sector. The difference in calculation of cost components between the cost of production of farmers from Permentan No.14/Permentan/OT.140/2/2013. The research method used consists of (1) Field research, (2) Library research. The data analysis technique was in accordance with formula HTBS = K (HCPO × RCPO + HIS × RIS). The sampling technique used purposive sampling. The object of research was at Palm Oil Companies. The results of the study to calculate the cost components included in the cost production include: plant maintenance costs, indirect costs, unit depreciation costs. The difference in the calculation of the cost components of farmers only compares the total cost of production with the price of production, while the Government calculation is based on Permentan. Efforts that must be made in the difference in palm oil pricing if there is no win-win solution: there is a guarantee of transparency from the sales, both export and local, between farmers and oil palm entrepreneurs. For documents of volume, prices and costs should always be valid, the data are known by all parties.


Introduction
The oil palm plantation business in South Kalimantan Province has experienced significant development. Meanwhile the number of palm oil mills in South Kalimantan are 20 mills with a capacity of ± 797.89 tons hour -1 . This situation will certainly cause traffic to the production and buying and selling of FFB with increasingly fierce and open business competition. Buying and selling of Palm oil FFB should be in good quality.
The quality of oil palm fresh fruit bunches (FFB) greatly influences the quality of crude palm oil (CPO) and the quality of palm kernel oil (PKO) produced from the processing of FFB. Things that must be considered starting from the process of good cultivation (Good Agriculture Practices / GAP), the process of harvesting (Good Handling Practices / GHP) and the process of good processing (Good Manufacturing Practices / GMP). Good FFB products affect the value of oil palm yields. Many factors can affect yield, including plant varieties, crop maintenance, quality and harvesting procedures for FFB, transportation and processing in the palm oil mill.
The palm oil industry sector is a priority sector in the province of South Kalimantan with an output multiplier value and above the average income multiplier value. This shows that the oil palm ISWEM 2020 IOP Conf. Series: Earth and Environmental Science 758 (2021) 012005 IOP Publishing doi: 10.1088/1755-1315/758/1/012005 2 plantation sector is included in the priority sector. As of 2015, there were 64 companies operating oil palm plantations in South Kalimantan. The existence of oil palm plantations and companies in the province of South Kalimantan has not yet provided optimal results. This is evidenced by the absence of a value chain (value chain) that can provide a win-win solution for palm oil businesses.
First, judging from the upstream sector starting from the entrepreneurs / oil palm plantations, they are required to meet various conditions to get a complete permit to do business. Based on preliminary research conducted obtained results: a. From the perspective of Palm Oil Companies that have cross-regional Plantation Business Permits (IUP) issued by the South Kalimantan provincial government, there was only 1 (one) company until 2014, namely PT. Gawi Makmur Kalimantan. b. In terms of oil palm farmers, it can be categorized into 2 (two) groups, namely plasma farmers and independent farmers, both of which have many problems, one of which is in calculating the production price of Fresh Fruit Bunches (FFB). The plasma and independent farmers do not have a good bargaining power to sell the crop yields so that it is in a weak position. The local government's policy in determining FFB prices has not revealed the cost component that is taken into account. Meanwhile, for determining the method of determining FFB prices are one of the important indicators that can influence the supply of oil palm farmers. The policy on prices, for example regarding the price of FFB, is the authority of the government which is derived in the form of regulations and decisions of the competent authority, such as a Ministerial Decree (Permentan/Minister of Agriculture) or an official (SK) who is authorized for that. The policy is taken with the aim of protecting farmers and stabilizing the economy.
The purpose of regulating and determining FFB prices has been regulated through Permentan Number 14 / Permentan / OT.140 / 2/2013 is "to provide protection in obtaining fair prices of FFB palm oil produced by farmers and avoid unfair competition among palm oil mills. Article 4 Permentan No. 395 regulates that Farmers sell all fresh fruit bunches to companies and companies buy all fresh fruit bunches to be processed and marketed in accordance with the cooperation agreement. " Second, those involved as the main business people in this matter are: a. Local Governments as regulators, based on the results of previous studies that have been carried out, there are numbers of regional regulations that have been canceled by the Central Government, because the regulations issued overlap in terms of levies required for companies / oil palm plantations, both tax obligations set by the central government and donation obligations to local government. b. Tax obligations both central tax and local tax in accordance with the legal regulations in the field of taxation Number 28 Year 2009, other various levied by local governments such as third party contributions (from entrepreneurs / plantations to local governments), and overlapping with the tax obligations that have been established in accordance with applicable tax laws.
There is a requirement from the government to the company / plantation, which requires that by having an area of around 100,000 ha only get a permit to build a refinery, whereas in fact now every 1 (one) group of companies / estates only has an area of around 50,000 ha, this situation can be overcome if the government changes the conditions, but if not the consequences for companies / plantations must make a consortium to achieve the intended land area, this is not easy to do by the companies / oil palm plantations. Another factor is natural constraint because to transport and market agricultural products after harvest requires a special port that is very deep and the ports in average in South Kalimantan are still shallow, so it requires very intensive dredging. If all the obstacles can be overcome, then the existence of the palm oil commodity industry has very large value added or profit that will be obtained by both the government and the community.
The results of this study will be considered by related parties in producing a win-win solution. Within the oil palm business, not all actors have a good bargaining power position. The government as functions of the regulator and facilitator are highly awaited for its policies which favor the wider community, especially the weak economic community (pro-people policies). This is proven by the absence of a value chain that can provide a win-win solution for all business players in the palm oil industry.

Identification of problems
Problems that can be formulated in this study are:

Hypothesis
The hypotheses in this study are: 1. There is a difference in the cost component in calculating the cost of production of oil palm fresh fruit bunches.  Fresh Fruit Bunches (FFB) is a part of the production of palm oil which is an initial product that will later be processed into Crude Palm Oil (CPO) and palm kernel (kernel) as the main products besides other products. The duration of the formation process from the time of pollination to maturity depends on climatic conditions and factors that affect the growth of the length of the fruit ripening process in several different regions.
The price of Fresh Fruit Bunches (FFB) is determined based on a pricing system according to Government Regulation no: 14 / Permentan / OT.140 / 2/2013 concerning guidelines for determining the purchase price of oil palm FFB of plantation production. The price of oil palm fruit (FFB) consistently correlates with the price of CPO, this can occur because the determination of the price of FFB does refer to the CPO price. The increase in CPO and FFB prices shows that the price received by oil palm farmers (FFB prices) can be said to be higher than the prices obtained by CPO producers and CPO prices (Rachman 2005). The amount of costs and income that will be obtained is highly dependent on land conditions, prices materials and tools as well as labor costs. Farmer business is a production activity, where the role of input in producing output is the main concern. The role of inputs is not only seen in terms of type and availability in a timely manner, but also in terms of efficient use of factors (Amang, 1995).
Palm oil products which are one of the mainstays of Indonesia's exports have experienced significant price increases. Palm oil prices have historically increased. The increase in the price of palm oil (CPO) also boosts the price of palm fruit (FFB, fresh fruit bunches). The oil palm farmers benefit from selling palm fruit to palm oil processing factories into CPO. Therefore, the price of FFB is one important indicator that can affect the supply of oil palm farmers (Arianto, 2008).
Palm oil business in its operation aims to obtain income that is used to meet the needs for activities outside of farming activities. In obtaining the desired income, oil palm farmers should consider the selling price of their production, calculate all cost elements to determine the cost of their agricultural products. This situation can be done by farmers so that the level of business effectiveness of oil palm farmers is low [4].
The price of FFB received by farmers is calculated based on the K proportion index. For the K component, which is usually called the K proportion index, which refers to the decision of the Minister of Forestry and Plantation and the Minister of Agriculture Regulation, This figure is usually at a level below 100 percent because it is a numerical factor to determine K which is smaller than the term in the denominator (Anonymous, in Mulyana 2008). The policy on the price of oil palm, for example regarding the price of FFB, is the authority of the government which is derived in the form of regulations and decisions of powerful officials, such as a decree of the Minister (PERMENTAN) or an official (SK) who is authorized for that. Policies are taken with the aim of protecting oil palm farmers / planters and stabilizing the economy (Daniel, 2002).
This research supports the industry that is developing in the wetlands, namely the palm oil commodity industry, so that the value added produced in the value chain grows in the wetlands, especially in the palm oil commodity. Value added information for the government at the time of preoperation, at the time of sale, and value added for the palm oil commodity industry in the production phase / FFB, the processing phase and the post-production phase through to sales.
Related research that has been carried out, especially related to policies issued by the government, was carried out by researchers (Nur Fatiah and Dahniar, 2014) in the South Kalimantan provincial government which focused on the role of agribusiness companies in the context of increasing Local Original Revenue (PAD) as a comparative study of income by central government and regional government. Based on the results of comparative studies conducted in various provinces in Indonesia, there were several local regulations that were canceled related to the overlapping of levies carried out by each local government. Researchers believe this has resulted in the discovery of a win-win solution for palm oil businessman.
Other related research conducted by (Dahniar, et.al, 2011) in Tabalong District showed the results of the local government's policy in this case to provide a greater allocation of funds in the Regional Budget (APBD) to alleviate poverty in the framework to improve the welfare of the poor is very useful, because in Tabalong district there are also areas of poverty. Most or around more than 70% of respondents stated that they were greatly helped by work programs launched by the Tabalong District Government so far. Therefore this study aims to analyze in terms of the upstream part efforts that must be made in addressing the differences arising from the determination of the cost of production of Fresh Fruit Bunches (FFB) based on government regulations, oil palm growers and the company / plantation, if there is no win-win solution. As well as analyzing in terms of the downstream of the obligations of entrepreneurs / plantations, which they must pay so far from the time of the operation from purchase to sale.
Further research on the value chain analysis of the palm oil commodity industry in South Kalimantan, (Dahniar, et.al, 2016) obtained the following results: In terms of upstream. Efforts that must be made in responding to differences arising from the determination of the cost of production of Fresh Fruit Bunches (FFB) based on government regulations, oil palm growers and companies / plantations, if there is no win-win solution, it must always refer to Government Regulations A joint agreement has been made with no: 14/ Permentan / OT.140 / 2/2013 regarding guidelines for determining the purchase price of oil palm FFB for plantation production not unilaterally determined by oil palm collectors and industry, which will certainly be very detrimental to one party. that is the important role of the Government.
In terms of downstream. Obligations of oil palm entrepreneurs / plantations, which they have to pay so far at the time of operation, from the purchase to the sale of FFB prices in accordance with Government Regulation No: 8 article 13 of 2013 concerning guidelines for buying and selling FFB prices with oil palm. With this permanent partnership it is expected that there will be a common perception between smallholders and independent farmers, entrepreneurs and the government in enforcing pricing and tax obligations that must be met.
The latest research related to the palm oil industry conducted on the Analysis of the Marketing Strategy of Palm Oil (CPO) at PT. Gawi Makmur Banjarmasin, South Kalimantan (Dahniar., Et.al, 2017), showed that: Internal factors that were the strength of PT. Gawi Makmur Kalimantan were; joint marketing system / joint venture with the CPO pricing mechanism through the auction / tender system, the quality and excellence of CPO which was marketed by the company's vision and mission, service to customers, marketing network. The weak factor was the promotion of product development and innovation run by the company was not optimal. External factors that became opportunities were; The potential of the Indonesian CPO industry was still very large, demand and the CPO market were continuing to increase. Threat factor; fluctuations in global economic conditions, the issue of global warming, black campaigns regarding palm oil / CPO.
1. The formulation of the strategy was in the quadrant position "V" means to keep and maintain (hold and maintain) to improve and develop market strategies. 2. Marketing priority strategies were sorted: a. Development of the CPO market based on ICT / Information Communication Technology. b. Develop marketing research. c. Improve services through Customer Relationship Management.
Based on the problems in the background and from several studies that have been conducted, the researchers are interested in conducting and examining more in research on how to determine the price of Fresh Fruit Bunches (TBS), both from calculations done by farmers / planters and which are calculated based on Permentan on Industry Palm Oil Commodity at PT. Gawi Makmur Kalimantan Banjarmasin South Kalimantan.

Materials and Methods
Data collection methods used in this study consisted of: (1) Field research (field research), through observation (observations) on local company respondents, with: interviews and questionnaires and (2) library research (library research).