Malaysia, Indonesia reach pact to form palm oil council hinh anh 1Harvesting palm fruit at a garden in Medan, Indonesia. (Photo: AFP/VNA)

Kuala Lumpur (VNA) - Malaysia and Indonesia have finalised a memorandum of understanding on establishing the Council of Palm Oil Producing Countries (CPOPC). 

Under a joint statement issued at the end of a ministerial conference on the establishment of the CPOPC on November 6, the two will be the founding nations of the council, which is poised to include other palm oil producers.

An agreement to set up the council was reached during a meeting between Indonesian President Joko Widodo and Malaysian Prime Minister Najib Razak in Indonesia on October 11.

The two nations are together controlling 85 percent of the world palm oil market. The other palm oil producers include Thailand, Papua New Guinea, Nigeria, Colombia, and Liberia.

The CPOPC will boost liaison among parties involved, develop a set of guiding principles for a sustainable palm oil production worldwide, and help small producers gain additional benefits.

It will foster connectivity and investments in building green economic zones, as well as addressing trade barriers, among others.-VNA