Thepalm oil alsowent awry because they required to buy FFB/Fresh Fruit Bunches (palm oil) from farmers but they were also pressed for industrial processing which was hampered. From the meeting held by APKASINDO on June 21, 2022 with 1,118 palm oil mills, it was concluded that as many as 58 palm oil mills were hit by the complete closure without operating, 114 of which were open and closed to adjust for the failure of palm oil prices this year. Â
Fdeed, not only CPO was previously banned for export but also in the type of DMO andDPO so that the polemic on palm oil prices continued to be a scourge that frightened oil palm farmers.
Thus, researchers want to examine how the impact of the decline in palm oil prices on the economy and the welfare of oil palm smallholders in Indonesia. Researchers want todiscuss the polemic on palm oil prices and their impact on farmers.
Literature Review
Palm Oil Farmers Economy
The economy is a part of activities that concern production and consumption with interrelationships and reciprocity relationships and can helpthe welfare of the community. An economy that can be said to be good if it experiences an increase and growth in income or income. Similarly to the economy of oil palm farmers, if the producers or incomes of farmers increase then the economy is in good fase.
Vice versa, if the economy makes income decline and even has a detrimental impact, it can be said to be in a bad or bad phase. an economy can be said to be good if there are more opportunities for oil palm farmers toearn income or income after their role in caring for and selling oil palm.
However, in 2022, the economy of oil palm smallholders will experience a decline due to the plummeting price of FFB. As a result, oil palm farmers are entering into a bad phase of the economy . The price of FFB, which is inevitably sold cheaply because of plummeting price standards, makes the opinions of palm oil farmers incompatible with their role in caring for palm oil before selling it to mills.Â
Of course, caring for palm oil before harvest requires hard work,such as fertilizing palm oil, harvesting at times that are as expected and cleaning the garden from parasitic plants so that the palm continues to grow well, however, the struggle does not pay off well because the price of FFB has dropped drastically so that it is detrimental.
Welfare of Oil Palm Farmers
Sunanti (quoted by Suwaji and Hermanto, 2019: 152) revealed that welfare is part of the order of life as a social livelihood, material and spritual form  followed by feelings of harmony and peace of birth and inner peace with the possibility for society to fulfill the needs of the physical, spiritual and social fields that are good for themselves  own, family and also community/social.
