Indonesia, Malaysia cooperate in protecting interests in palm oil sector

Workers harvest palm oil in Pelalawan, Riau province, Indonesia. (Photo: AFP/VNA)

Jakarta (VNA) – Indonesia and Malaysia have agreed to protect their palm oil sector and counter discrimination and unilateral policies affecting the commodity and harming the two countries' interests, Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto said on February 9.

Speaking at a press conference after a meeting with Malaysia’s Deputy Prime Minister and Minister of Plantation and Commodities Fadillah Yusof, Hartarto said that the two sides discussed some urgent issues on the palm oil industry dialogue and proposed a joint approach allowing for coordinated action that the two countries concur to protect the palm oil sector.

They also agreed to seek policy dialogues with major palm oil-importing countries, Hartarto said.

According to Hartarto, the two countries also discussed expanding the Council of Palm Oil Producing Countries (CPOPC) through the inclusion of a third member - Honduras.

Indonesia and Malaysia also agreed to send a joint mission to the European Union to address their concerns and prevent unwanted consequences of the EU's deforestation-free commodity policy regarding the palm oil sector, he said.

After the joint mission to the EU, Indonesia, and Malaysia will also visit India to explore the potential for cooperation, Hartarto said, adding that India recently recognised ISPO and MSPO through the Indian Palm Oil Sustainability Framework.

On January 12, Indonesia and Malaysia warned to stop exporting palm oil to the EU after they introduced a new law to protect forests and tighten the import of palm oil products. The two countries also called on CPOPC members to cooperate in opposing the new law and unfounded arguments of the EU and US about the sustainability of palm oil.

In 2018, an EU renewable-energy directive required the phasing out of palm-based transportation fuels by 2030 because of their perceived link to deforestation. Currently, the EU is the third largest palm oil consumer in the world./.