Palm oil news April 2025
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April 26, 2025
CPTPP: Consignment of Malaysian palm oil totalling 100,000 tonnes enters UK tariff-free
LONDON (April 26): A shipment of Malaysian palm oil from Sabah totalling 100,000 tonnes entered the storage depot at the Port of Liverpool, England, on April 5, said Malaysian High Commissioner to the UK and Northern Ireland Datuk Zakri Jaafar.
This marked the first consignment of Malaysian palm oil under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with zero tariff, he said.
“Through the CPTPP, Malaysian and UK companies are now able to expand their markets further and can enhance bilateral trade prospects,” he said during a dinner hosted for Deputy Prime Minister Datuk Seri Fadillah Yusof, who is also the minister of energy transition and water transformation, at the Malaysian High Commission in London on Friday.
The 80 guests at the dinner included students, representatives from government-linked companies, as well as high commission staff.
Also present were Fadillah's wife Datin Seri Ruziah Mohd Tahir, Tenaga Nasional Bhd or TNB (KL:TENAGA) chief new energy officer Mohd Zarihi Mohd Hashim, Sarawak Energy Bhd group chief executive officer Datuk Sharbini Suhaili, and a delegation from the Ministry of Energy Transition and Water Transformation.
The UK acceded to the CPTPP on Dec 15 last year, making it the first European country to join the Asia-Pacific trade bloc. For Malaysia, the CPTPP agreement came into effect on Nov 29, 2022.
On the renewable energy sector, Zakri said Malaysia’s involvement in the UK will yield significant long-term benefits for the country, particularly in terms of technology transfer.
“The launch of high-capacity solar farms operated by a TNB subsidiary at Eastfield and Bunkers Hill in January this year showcases Malaysia’s capability to participate in global sustainable energy solution efforts,” he said.
The solar farms were launched by Prime Minister Datuk Seri Anwar Ibrahim on Jan 17 during his official visit to the UK.
The farms — in Bunkers Hill, Rotherwick (66.7 megawatts peak (MWp) and Eastfield, Harbury (35 MWp) — are advanced and innovative projects. The combined capacity of 102MW highlights Malaysia’s expertise in driving global sustainable energy solutions.
Malaysia is the UK’s fourth-largest trading partner in Southeast Asia, with total trade reaching RM15.30 billion in 2024.
Meanwhile, Malaysia's total investment in the UK reached £19 billion (RM110.63 billion) in the same year. The Edge
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UAE-based Bin Zayed International Group (BZI) and Malaysia’s FatHopes Energy (FHE) to set up state-of-the-art refinery fpr SAF
Partnership with UAE poised to transform aviation sector, operational by 2029
KUALA LUMPUR: Airlines will have greater access to sustainable aviation fuel (SAF) with the setting up of a state-of-the-art refinery in Port Klang, a US$500mil (RM2.19bil) collaboration between UAE-based Bin Zayed International Group (BZI) and Malaysia’s FatHopes Energy (FHE).
The two firms announced that the facility – among the first of its kind in South-East Asia – will be one of the world’s most forward-looking SAF refineries.
It is expected to transform the regional clean aviation landscape by producing SAF via the Hydroprocessed Esters and Fatty Acids pathway, which currently accounts for over 80% of global SAF production.
According to BZI (Malaysia) Berhad managing director Datuk Seri Dr Shamir Kumar Nandy, the project is slated to break ground in 2026 and begin commercial operations by 2029.
“We are underwriting the entire sum for now by ourselves. Based on FatHopes’ findings and updates, they’re in the process of getting the necessary approvals and sanctions before they can break ground.
“So I believe that will be a year down the road – about 12 months from today,” he said at a press conference here yesterday.
Shamir said the partnership combines BZI’s global investment expertise and FHE’s leadership in sustainable biofuel feedstock aggregation, laying the groundwork for a highly diversified and scalable SAF platform in the region.
He added that the Port Klang refinery is a key element in Malaysia’s ambition to produce one million tonnes of SAF annually, solidifying the nation’s role in the global SAF economy.
“This initiative has the potential to reimagine the future of flight,” said Shamir.
“It’s about profit, people and the planet – but most importantly, it’s for the planet,” he added.
FHE chief executive officer Vinesh Sinha said the project, currently in the feasibility stage, will have a production capacity of 300,000 tonnes per annum, requiring roughly 330,000 tonnes of feedstock.
He noted the technology in use can process various feedstocks, guided by prevailing policies and certifications. The StarMY
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European Waste Feedstock Markets Stabilize as Trade Woes Persist
After some recent ups and downs, waste feedstock prices in Europe have begun to stabilize. This comes on the back of a modest recovery in the UCOME (Used Cooking Oil Methyl Ester) market, which has already started to ease pressure on producer margins.
Despite this rebound, many European feedstock buyers remain cautious about what’s to come. They are consequently holding off on new purchases as they anticipate further price declines in the coming weeks.
A Divided Market Between Fuels and Feedstocks
According to a report from Prima CarbonZero’s Green Diesel Report, this current market environment reflects a deeper disparity between fuel and feedstock fundamentals across Europe.
Green diesel and finished fuels have faced increasingly complex trade barriers in recent months. However, raw feedstock flows remained relatively unimpeded—at least for now.
New tariffs, particularly those targeting finished biofuels like HVO (Hydrotreated Vegetable Oil), are constraining fuel imports. Yet feedstock flows are largely affected only by Indonesia’s export restrictions and the growing scrutiny around the sustainability of European supply chains.
Trade Wars and the Shift in Feedstock Flows
At the center of the shifting feedstock landscape are rising trade tensions between the US and China. This geopolitical standoff is reshaping global trade patterns.
With the US recently imposing significant tariff hikes on Chinese UCO (Used Cooking Oil), Europe is now expected to receive a wave of Chinese feedstock. This could substantially boost European supply in the coming months.
At the same time, aggressive US tariffs across other global partners may incentivize Indonesia to lift its current export ban on waste feedstocks.
The country is facing mounting pressure to secure alternative sources of foreign revenue. Their answer to that pressure is to potentially reopen trade routes.
If the three-month export ban is lifted, it would increase supply-side flexibility for European buyers. The result would place further downward pressure on prices.
Strengthening Biofuel Demand in Europe
While feedstock supply pressures grow, demand fundamentals remain robust. Year-on-year, European biofuel demand is stronger. This uptick comes as bulk imports from China have been largely shut out by anti-dumping measures introduced last year. Resource Wise
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Indonesia Should Allow Palm Expansion To Meet Rising Needs Says Experts
KUALA LUMPUR/JAKARTA – Prices of cooking oil could be buoyed up for years by stagnating production and a biodiesel push in top producer Indonesia that are making traditionally cheap palm oil costlier, eliminating an advantage that also curbed prices of rival oils.
Used in everything from cakes and frying fats to cosmetics and cleaning products, palm oil makes up more than half of global vegetable oil shipments and is especially popular among consumers in emerging markets, led by India.
After decades of cheap palm oil, thanks to booming output and a battle for market share, output is slowing and Indonesia is using more to make biodiesel, respected industry analyst Dorab Mistry said.
“Those days of $400-per-ton discounts are gone,” added Mistry, a director of Indian consumer goods company Godrej International. “Palm oil won’t be that cheap again as long as Indonesia keeps prioritizing biodiesel.”
Palm oil, which usually trades at a discount to rival oils, has started trading in premium because of lower output and higher demand for biofuels.
Indonesia increased the mandatory mix of palm oil in biodiesel to 40% this year, and is studying moving to 50% in 2026, as well as a 3% blend for jet fuel next year, as it seeks to curb fuel imports.
The biodiesel push will reduce Indonesia’s exports to just 20 million metric tons in 2030, down a third from 29.5 million in 2024, estimates Eddy Martono, Chairman of the Southeast Asian nation’s largest palm oil association, GAPKI.
Jakarta’s biodiesel mandate, coupled with lower production because of floods in neighboring Malaysia, has already lifted palm oil prices above rival soyoil, prompting buyers to cut purchases.
In India, the largest buyer of vegetable oils, crude palm oil (CPO) has commanded a premium over crude soybean oil for the past six months, sometimes exceeding $100 per ton. As recently as late 2022, palm oil traded at discounts of more than $400.
Indians were paying $1,185 a ton for crude palm oil last week, up from less than $500 in 2019.
Higher vegetable oil prices could complicate governments’ efforts to rein in inflation, whether in palm oil-reliant nations or those dependent on rival soybean, sunflower, and rapeseed oils.
Stunted Growth
Palm oil production, dominated by Indonesia and Malaysia, nearly doubled every decade from 1980 to 2020, fueling criticism over deforestation to add plantations.
During that time, average annual production growth of more than 7% was roughly in line with demand.
Global palm oil production growth slows as Indonesia and Malaysia stall expansion.
But Malaysia’s palm oil production stagnated more than a decade ago because of lack of space for new plantations and slow replanting, while deforestation concerns have slowed growth in Indonesia.
Even in Indonesia, replanting by smallholders, who generate 40% of its supply, remains sluggish.
As a result, global production growth has slowed to 1% annually over the past four years.
In the current decade, production growth is likely to average 1.3 million tons a year, said analyst Thomas Mielke, executive director of Hamburg-based forecaster Oil World, less than half the average of 2.9 million in the decade to 2020.
Production could lose even more momentum from the impact of labor shortages, ageing plantations and the spread of Ganoderma fungus, which is hurting yields, Mielke said. GAPKI
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Palm oil farming, a transformative economic force for India
The country’s palm oil mission is more than agricultural reform—it’s a blueprint for inclusive growth, economic resilience, and sustainability
By Anupam Barik
India is at a critical point in its journey towards agricultural self-reliance. As the world’s largest importer of palm oil, the country faces a dual challenge: balancing edible oil affordability for consumers while reducing its heavy reliance on imports, which imposes a significant economic burden. Government initiatives, led by the National Mission on Edible Oils – Oil Palm (NMEO-OP) and National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds), aim to boost domestic oilseed production, empower rural communities, and promote sustainable growth, advancing the vision of Atmanirbhar Bharat.
The Union Cabinet recently approved NMEO-Oilseeds, to be implemented from 2024-25 to 2030-31 with an outlay of ₹10,103 crore. The programme focuses on increasing production of key oilseed crops like rapeseed-mustard, groundnut, soybean, sunflower, and sesame, along with improving extraction efficiency from secondary sources like cottonseed, rice bran, and tree-borne oils. It targets a rise in primary oilseed production from 39 million tonnes (2022-23) to 69.7 million tonnes by 2030-31. Alongside NMEO-OP, the aim is to increase domestic edible oil output to 25.45 million tonnes by 2030-31, meeting around 72 per cent of India’s projected requirement of 35.5 million tonnes.
In 2024, palm oil accounted for 38 per cent of India’s edible oil consumption, making it integral to millions of diets. Yet, dependence on imports creates vulnerabilities. Currently, 57 per cent of edible oil demand is met through imports, with palm oil comprising 59 per cent of this. This costs India about $15 billion annually, straining the economy and exposing it to global price fluctuations. Cooking oil prices, for instance, surged due to higher import duties and market volatility. The Hindu Businessline
CPTPP: Consignment of Malaysian palm oil totalling 100,000 tonnes enters UK tariff-free
LONDON (April 26): A shipment of Malaysian palm oil from Sabah totalling 100,000 tonnes entered the storage depot at the Port of Liverpool, England, on April 5, said Malaysian High Commissioner to the UK and Northern Ireland Datuk Zakri Jaafar.
This marked the first consignment of Malaysian palm oil under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with zero tariff, he said.
“Through the CPTPP, Malaysian and UK companies are now able to expand their markets further and can enhance bilateral trade prospects,” he said during a dinner hosted for Deputy Prime Minister Datuk Seri Fadillah Yusof, who is also the minister of energy transition and water transformation, at the Malaysian High Commission in London on Friday.
The 80 guests at the dinner included students, representatives from government-linked companies, as well as high commission staff.
Also present were Fadillah's wife Datin Seri Ruziah Mohd Tahir, Tenaga Nasional Bhd or TNB (KL:TENAGA) chief new energy officer Mohd Zarihi Mohd Hashim, Sarawak Energy Bhd group chief executive officer Datuk Sharbini Suhaili, and a delegation from the Ministry of Energy Transition and Water Transformation.
The UK acceded to the CPTPP on Dec 15 last year, making it the first European country to join the Asia-Pacific trade bloc. For Malaysia, the CPTPP agreement came into effect on Nov 29, 2022.
On the renewable energy sector, Zakri said Malaysia’s involvement in the UK will yield significant long-term benefits for the country, particularly in terms of technology transfer.
“The launch of high-capacity solar farms operated by a TNB subsidiary at Eastfield and Bunkers Hill in January this year showcases Malaysia’s capability to participate in global sustainable energy solution efforts,” he said.
The solar farms were launched by Prime Minister Datuk Seri Anwar Ibrahim on Jan 17 during his official visit to the UK.
The farms — in Bunkers Hill, Rotherwick (66.7 megawatts peak (MWp) and Eastfield, Harbury (35 MWp) — are advanced and innovative projects. The combined capacity of 102MW highlights Malaysia’s expertise in driving global sustainable energy solutions.
Malaysia is the UK’s fourth-largest trading partner in Southeast Asia, with total trade reaching RM15.30 billion in 2024.
Meanwhile, Malaysia's total investment in the UK reached £19 billion (RM110.63 billion) in the same year. The Edge
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UAE-based Bin Zayed International Group (BZI) and Malaysia’s FatHopes Energy (FHE) to set up state-of-the-art refinery fpr SAF
Partnership with UAE poised to transform aviation sector, operational by 2029
KUALA LUMPUR: Airlines will have greater access to sustainable aviation fuel (SAF) with the setting up of a state-of-the-art refinery in Port Klang, a US$500mil (RM2.19bil) collaboration between UAE-based Bin Zayed International Group (BZI) and Malaysia’s FatHopes Energy (FHE).
The two firms announced that the facility – among the first of its kind in South-East Asia – will be one of the world’s most forward-looking SAF refineries.
It is expected to transform the regional clean aviation landscape by producing SAF via the Hydroprocessed Esters and Fatty Acids pathway, which currently accounts for over 80% of global SAF production.
According to BZI (Malaysia) Berhad managing director Datuk Seri Dr Shamir Kumar Nandy, the project is slated to break ground in 2026 and begin commercial operations by 2029.
“We are underwriting the entire sum for now by ourselves. Based on FatHopes’ findings and updates, they’re in the process of getting the necessary approvals and sanctions before they can break ground.
“So I believe that will be a year down the road – about 12 months from today,” he said at a press conference here yesterday.
Shamir said the partnership combines BZI’s global investment expertise and FHE’s leadership in sustainable biofuel feedstock aggregation, laying the groundwork for a highly diversified and scalable SAF platform in the region.
He added that the Port Klang refinery is a key element in Malaysia’s ambition to produce one million tonnes of SAF annually, solidifying the nation’s role in the global SAF economy.
“This initiative has the potential to reimagine the future of flight,” said Shamir.
“It’s about profit, people and the planet – but most importantly, it’s for the planet,” he added.
FHE chief executive officer Vinesh Sinha said the project, currently in the feasibility stage, will have a production capacity of 300,000 tonnes per annum, requiring roughly 330,000 tonnes of feedstock.
He noted the technology in use can process various feedstocks, guided by prevailing policies and certifications. The StarMY
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European Waste Feedstock Markets Stabilize as Trade Woes Persist
After some recent ups and downs, waste feedstock prices in Europe have begun to stabilize. This comes on the back of a modest recovery in the UCOME (Used Cooking Oil Methyl Ester) market, which has already started to ease pressure on producer margins.
Despite this rebound, many European feedstock buyers remain cautious about what’s to come. They are consequently holding off on new purchases as they anticipate further price declines in the coming weeks.
A Divided Market Between Fuels and Feedstocks
According to a report from Prima CarbonZero’s Green Diesel Report, this current market environment reflects a deeper disparity between fuel and feedstock fundamentals across Europe.
Green diesel and finished fuels have faced increasingly complex trade barriers in recent months. However, raw feedstock flows remained relatively unimpeded—at least for now.
New tariffs, particularly those targeting finished biofuels like HVO (Hydrotreated Vegetable Oil), are constraining fuel imports. Yet feedstock flows are largely affected only by Indonesia’s export restrictions and the growing scrutiny around the sustainability of European supply chains.
Trade Wars and the Shift in Feedstock Flows
At the center of the shifting feedstock landscape are rising trade tensions between the US and China. This geopolitical standoff is reshaping global trade patterns.
With the US recently imposing significant tariff hikes on Chinese UCO (Used Cooking Oil), Europe is now expected to receive a wave of Chinese feedstock. This could substantially boost European supply in the coming months.
At the same time, aggressive US tariffs across other global partners may incentivize Indonesia to lift its current export ban on waste feedstocks.
The country is facing mounting pressure to secure alternative sources of foreign revenue. Their answer to that pressure is to potentially reopen trade routes.
If the three-month export ban is lifted, it would increase supply-side flexibility for European buyers. The result would place further downward pressure on prices.
Strengthening Biofuel Demand in Europe
While feedstock supply pressures grow, demand fundamentals remain robust. Year-on-year, European biofuel demand is stronger. This uptick comes as bulk imports from China have been largely shut out by anti-dumping measures introduced last year. Resource Wise
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Indonesia Should Allow Palm Expansion To Meet Rising Needs Says Experts
KUALA LUMPUR/JAKARTA – Prices of cooking oil could be buoyed up for years by stagnating production and a biodiesel push in top producer Indonesia that are making traditionally cheap palm oil costlier, eliminating an advantage that also curbed prices of rival oils.
Used in everything from cakes and frying fats to cosmetics and cleaning products, palm oil makes up more than half of global vegetable oil shipments and is especially popular among consumers in emerging markets, led by India.
After decades of cheap palm oil, thanks to booming output and a battle for market share, output is slowing and Indonesia is using more to make biodiesel, respected industry analyst Dorab Mistry said.
“Those days of $400-per-ton discounts are gone,” added Mistry, a director of Indian consumer goods company Godrej International. “Palm oil won’t be that cheap again as long as Indonesia keeps prioritizing biodiesel.”
Palm oil, which usually trades at a discount to rival oils, has started trading in premium because of lower output and higher demand for biofuels.
Indonesia increased the mandatory mix of palm oil in biodiesel to 40% this year, and is studying moving to 50% in 2026, as well as a 3% blend for jet fuel next year, as it seeks to curb fuel imports.
The biodiesel push will reduce Indonesia’s exports to just 20 million metric tons in 2030, down a third from 29.5 million in 2024, estimates Eddy Martono, Chairman of the Southeast Asian nation’s largest palm oil association, GAPKI.
Jakarta’s biodiesel mandate, coupled with lower production because of floods in neighboring Malaysia, has already lifted palm oil prices above rival soyoil, prompting buyers to cut purchases.
In India, the largest buyer of vegetable oils, crude palm oil (CPO) has commanded a premium over crude soybean oil for the past six months, sometimes exceeding $100 per ton. As recently as late 2022, palm oil traded at discounts of more than $400.
Indians were paying $1,185 a ton for crude palm oil last week, up from less than $500 in 2019.
Higher vegetable oil prices could complicate governments’ efforts to rein in inflation, whether in palm oil-reliant nations or those dependent on rival soybean, sunflower, and rapeseed oils.
Stunted Growth
Palm oil production, dominated by Indonesia and Malaysia, nearly doubled every decade from 1980 to 2020, fueling criticism over deforestation to add plantations.
During that time, average annual production growth of more than 7% was roughly in line with demand.
Global palm oil production growth slows as Indonesia and Malaysia stall expansion.
But Malaysia’s palm oil production stagnated more than a decade ago because of lack of space for new plantations and slow replanting, while deforestation concerns have slowed growth in Indonesia.
Even in Indonesia, replanting by smallholders, who generate 40% of its supply, remains sluggish.
As a result, global production growth has slowed to 1% annually over the past four years.
In the current decade, production growth is likely to average 1.3 million tons a year, said analyst Thomas Mielke, executive director of Hamburg-based forecaster Oil World, less than half the average of 2.9 million in the decade to 2020.
Production could lose even more momentum from the impact of labor shortages, ageing plantations and the spread of Ganoderma fungus, which is hurting yields, Mielke said. GAPKI
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Palm oil farming, a transformative economic force for India
The country’s palm oil mission is more than agricultural reform—it’s a blueprint for inclusive growth, economic resilience, and sustainability
By Anupam Barik
India is at a critical point in its journey towards agricultural self-reliance. As the world’s largest importer of palm oil, the country faces a dual challenge: balancing edible oil affordability for consumers while reducing its heavy reliance on imports, which imposes a significant economic burden. Government initiatives, led by the National Mission on Edible Oils – Oil Palm (NMEO-OP) and National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds), aim to boost domestic oilseed production, empower rural communities, and promote sustainable growth, advancing the vision of Atmanirbhar Bharat.
The Union Cabinet recently approved NMEO-Oilseeds, to be implemented from 2024-25 to 2030-31 with an outlay of ₹10,103 crore. The programme focuses on increasing production of key oilseed crops like rapeseed-mustard, groundnut, soybean, sunflower, and sesame, along with improving extraction efficiency from secondary sources like cottonseed, rice bran, and tree-borne oils. It targets a rise in primary oilseed production from 39 million tonnes (2022-23) to 69.7 million tonnes by 2030-31. Alongside NMEO-OP, the aim is to increase domestic edible oil output to 25.45 million tonnes by 2030-31, meeting around 72 per cent of India’s projected requirement of 35.5 million tonnes.
In 2024, palm oil accounted for 38 per cent of India’s edible oil consumption, making it integral to millions of diets. Yet, dependence on imports creates vulnerabilities. Currently, 57 per cent of edible oil demand is met through imports, with palm oil comprising 59 per cent of this. This costs India about $15 billion annually, straining the economy and exposing it to global price fluctuations. Cooking oil prices, for instance, surged due to higher import duties and market volatility. The Hindu Businessline
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April 25, 2025
CPOPC Visits Beijing to Advance Sustainable Palm Oil Trade
Beijing, SAWIT INDONESIA – The Council of Palm Oil Producing Countries (CPOPC), an intergovernmental organization of palm oil-producing countries, convened a high-profile meeting today in Beijing as part of its delegation's visit to China. The meeting brought together government officials, industry leaders, and other key stakeholders to explore collaborative pathways for a sustainable palm oil value chain.
Under the theme "Toward a Sustainable Green Value Chain: Collaborative Pathways for Palm Oil Trade," the discussions highlighted the critical role of palm oil in global trade and its potential to align with China's sustainability goals. Key topics include enhancing supply chain transparency, addressing market challenges, and promoting responsible consumption.
Palm oil is the world's most widely consumed vegetable oil, accounting for nearly 40% of global edible oil production. The eight member and observer countries of the CPOPC are responsible for 88.8% of the global palm oil production, supporting millions of livelihoods. Recognizing the growing demand for sustainable commodities, CPOPC members have made strides in addressing sustainability challenges. For example, Indonesia and Malaysia, two of the world's largest palm oil producing countries, have achieved near record-low primary forest loss despite increased production.
"Sustainability is non-negotiable," stressed Rizal Affandi Lukman, CPOPC Secretary-General. "Through initiatives like the Global Framework Principles for Sustainable Palm Oil, we are harmonizing standards and empowering smallholders to adopt eco-friendly practices. Palm oil isn't just an economic driver—it's a platform for green innovation."
China, as the world's second-largest importer of palm oil, is a critical partner for palm oil-producing countries. Last November, CPOPC signed a Memorandum of Understanding with the China Chamber of Commerce For Import and Export of Foodstuffs，Native Produce And Animal By－Products (CFNA) and World Resources Institute (WRI) China to strengthen sustainable cooperation between China and palm oil-producing countries. Building on this foundation, this meeting provides an important opportunity to further deepen collaboration between China and CPOPC member countries in advancing sustainable supply chains and fostering a green economy. Sawit Indonesia
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Indonesia’s Oil Palm Biomass: A Renewable Energy Opportunity
PALMOILMAGAZINE, KUALA LUMPUR — Indonesia’s vast network of oil palm plantations, spanning over 16 million hectares, generates more than 111 million tons of biomass each year—a largely untapped resource that holds massive potential for advancing the country’s renewable energy transition.
Speaking at the 5th International Oil Palm Biomass Conference 2025, organized by Malaysian Export Academy (MEXA) and held at the Berjaya Times Square Hotel in Kuala Lumpur, Dr. M. Windrawan Inantha, Deputy Director of Market Transformation (Indonesia) at the Roundtable on Sustainable Palm Oil (RSPO), emphasized the strategic value of Indonesia’s oil palm biomass.
“Our vision is to transform oil palm biomass from a byproduct into a powerful driver of Indonesia’s clean energy transition—reducing our reliance on fossil fuels, meeting renewable energy targets, and creating inclusive green growth,” Windrawan said.
In 2024, these plantations processed 200.7 million tons of fresh fruit bunches (FFB) to produce 48.17 million tons of crude palm oil, according to the Indonesian Palm Oil Association (GAPKI). This activity, concentrated in Sumatra and Kalimantan, generates vast biomass: empty fruit bunches (46.16 million tons), palm kernel shells (12.04–16.06 million tons), mesocarp fibre (26.09–30.11 million tons), palm oil mill effluent (130.46 million tons), oil palm trunks (22–35 million tons, peaking at 59.7 million during replanting), and oil palm fronds (27.1–30.1 million tons). Together, solid biomass totals 111.39 to 122.33 million tons annually, showcasing the immense output from Indonesia’s 16 million hectares.
This biomass could generate 40–59 terawatt-hours (TWh) of energy yearly, surpassing the 2025 bioenergy target of 33 TWh. Techniques like torrefaction and pyrolysis improve efficiency by reducing moisture in empty fruit bunches from 60% to 10%, yielding 19–30 TWh from solid biomass.
Palm oil mill effluent, through methane capture, produces 16.1–20.1 million barrels of oil equivalent, equating to 15.6–19.5 TWh at 30% generator efficiency. Oil palm trunks add 5–9 TWh. This energy supports co-firing in coal plants, potentially reaching 5 gigawatts and cutting emissions by 10–15% per megawatt. Palm kernel shells, with high energy content (19–23 MJ/kg), drive exports, with 1.5 million tons shipped to Japan in 2023, contributing 2–3 TWh annually.
Despite its promise, biomass utilization faces significant technical challenges that hinder progress. For instance, the high moisture content in empty fruit bunches, often reaching 60%, combined with 4–12% ash, increases processing costs by 20–30%, making energy production less efficient. Similarly, palm oil mill effluent releases methane, which has 28 times the warming impact of CO₂, yet only 10% of mills are equipped to capture it for biogas.
These technical barriers, compounded by the uneven distribution of biomass plants—mostly located in Sumatra while Kalimantan remains underserved—limit the scalability of biomass energy across Indonesia’s 16 million hectares of plantations.
However, innovative solutions offer a path to overcome these obstacles and unlock substantial economic and environmental benefits. Advanced technologies like torrefaction and pyrolysis can enhance biomass efficiency, while biochar production not only boosts energy output but also stores carbon, potentially adding $1 billion to Indonesia’s GDP by 2030. Expanding exports of palm kernel shells, already a valuable commodity with 1.5 million tons shipped to Japan in 2023, alongside scaling co-firing in 20 coal plants, could generate $500 million in revenue. Moreover, biomass initiatives could create 500,000 jobs by 2030, providing a significant boost to rural communities and supporting sustainable development across Indonesia’s plantation regions.
To fully realize this potential, a clear and actionable strategy is essential. Establishing a national biomass inventory would enable better tracking and management of the 111 million tons produced annually, ensuring efficient use across Indonesia’s plantations. Investing in facilities to process empty fruit bunches and palm kernel shells could help achieve 50 TWh by 2030, while requiring mills to use half their residues for energy by 2028 would drive progress. Developing affordable drying methods to reduce moisture in biomass, alongside implementing a carbon trading system to cut mill emissions by 20% by 2030, would further strengthen the sector and align it with Indonesia’s renewable energy ambitions.
The Kuala Lumpur conference shed light on Indonesia’s opportunity to transform its 16 million hectares of oil palm plantations biomass potential into a renewable energy asset. By tackling technical and policy challenges with practical solutions, the country can convert its abundant biomass into a valuable resource. This approach would not only help meet national energy targets but also foster a sustainable and prosperous future, positioning Indonesia as a leader in the global shift toward cleaner energy. Palm Oil Magazine
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Malaysia-170 palm oil mills install biogas facilities, surpassing NAPC target
PORT DICKSON: A total of 170 out of 446 palm oil mills installed biogas facilities last year, exceeding the National Agrocommodity Policy (NAPC) 2025 target of 155 mills and contributing to a reduction of greenhouse gas (GHG) emissions by 4.9 million tonnes of carbon dioxide (CO₂).
As such, Plantation and Commodities Minister, Datuk Seri Johari Abdul Ghani, called upon all palm oil millers to immediately develop the biogas industry.
"The development of the biogas industry has been proven to provide benefits and added value through the creation of job opportunities, economic growth, additional income and improved palm waste management — ultimately contributing to a better standard of living for rural communities," he told BuletinTV3 during a visit to the Cenergi Sua Betong Biogas Plant here today.
As the world's second largest palm oil producer, Johari said Malaysia is placing emphasis on implementing a circular economy at all stages of palm oil product production for better waste management.
"Capturing biomethane from palm oil industry waste, such as palm oil mill effluent (POME), can be used as a renewable energy source for electricity generation," he explained.
A total of 63.5 million tonnes of POME was produced in 2022, generation 1.8 billion cubic metres (m³) of biogas, capable of producing 1.22 gigawatts (GW) of energy per year.
The Sustainable Energy Development Authority (SEDA) allocated a 190MW feed-in tariff (FiT) quota for 2025, covering biogas, biomass and mini hydro projects, as well as 50MW specifically for biogas and 40MW for biomass.
Johari added that broader grid connection access is crucial to realising these projects.
He urged Tenaga Nasional Bhd (TNB) to further increase the connection capacity of palm oil mills to the national grid, enabling millers to invest and benefit from the use of palm biomass waste for renewable energy generation.
He noted that the shift in palm waste management strategy reflects Malaysia's commitment to environmental preservation.
"This is in line with Malaysia's pledge to achieve net zero carbon emissions by 2050, reduce carbon emissions by 45 per cent relative to gross domestic product (GDP) by 2030, and cut methane emissions by 30 per cent," he said.
To encourage more involvement from palm oil industry players, Johari called on millers unfamiliar with this concept to engage with Cenergi SEA Bhd to operate such biogas plants.
"Cenergi has the entire ecosystem in place. This biogas plant, with a capacity of 1.2 megawatts (MW), is operated by just seven people, all locals. They are qualified engineers and workers from the local community," he said.
Cenergi, a subsidiary of UEM Lestra Bhd, is one of the nation's sustainable energy solution providers, specialising in developing Malaysia's green industry, including renewable energy, waste management and green infrastructure.
The company currently operates 20 biogas plants nationwide, with 12 more under construction, bringing the total electricity generation capacity to 52.8MW and compressed natural gas BioCNG capacity to 65,000 million British thermal units. New Straits Times
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Combating biofuel fraud
Protecting the biodiesel industry from threats that come from outside the EU has become almost as important for the biofuels industry as advocating for better policies within the EU.
Around 10 or 15 years was a time when the European Biodiesel Board (EBB) started to make use of EU trade defence instruments, to ensure that trade was not only free but also fair. The EBB used to consider trade cases as an ad-hoc answer to a specific issue.
Times have changed
A quick glance at the list of open EU trade cases will show you that the bloc has opened over 40 cases against China alone, including the EBB’s very own anti-dumping case.
The larger trend shows what all European biodiesel producers – FAME, HVO and SAF alike – already know - trade cases have become a permanent concern, and they are here to stay.
The brand-new Commission is still finding its footing, exploring the balance between ambition and pragmatism, but it has already committed to strengthening Trade Defence Instruments (TDIs) such as anti-dumping and anti-subsidy measures to protect EU industries from unfair competition. Biofuels News
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Mythbusting: No, Palm Oil is NOT in 50% of Supermarket Products
“Absolutely no palm oil, ever!”
A bold claim, often printed proudly across product packaging. But it’s a largely unhelpful statement that stokes consumer fear without offering a clear understanding of the issue. The impacts of palm oil, like those of any vegetable oil, depend far more on how and where it’s produced than on the crop itself.
Fears surrounding palm oil, and the marketing advantages gained by promoting “palm-oil-free” products, are largely driven by media narratives that focus solely on the negative. These one-sided portrayals often ignore the contexts in which palm oil is produced ethically and sustainably, and more importantly, they rarely mention the environmental downsides of the oils that typically replace it.
For example, one frequently cited claim is that palm oil is found in 50% of supermarket products. You may have come across it before; it has become a staple of anti-palm oil campaigns. Big numbers presented in familiar contexts are powerful tools for shaping perception. Think of the widely used image of “6 football fields of forest lost every minute” (ref). But given their potential to influence public opinion and behavior, such statistics should be grounded in solid evidence.
A recent study by myself and a team of scientists, currently under peer-review, explored this particular claim, originally popularized by WWF in 2006. It didn’t take long to discover that the “50%” figure wasn’t backed by research. The parameters were unclear. Did this refer to global supermarkets? Were only packaged goods included? What about household items, fresh produce, or cleaning supplies?
Assessing all products in all supermarkets across the world would be a stretch for a research team of just five. Instead, we selected a random sample of around 2,000 items across three major supermarket chains in the Netherlands, the United Kingdom, and Australia as a practical way to test the claim’s validity.
Our preliminary findings are eye-opening. Palm oil was found in far fewer products than the widely cited 50% claim suggests. In fact, oil crops like maize, rapeseed, and soya appeared in more products than palm (Figure 1). Yet, when was the last time you saw a product proudly declare it was free of rapeseed? Sustainable Palm Oil Choice
CPOPC Visits Beijing to Advance Sustainable Palm Oil Trade
Beijing, SAWIT INDONESIA – The Council of Palm Oil Producing Countries (CPOPC), an intergovernmental organization of palm oil-producing countries, convened a high-profile meeting today in Beijing as part of its delegation's visit to China. The meeting brought together government officials, industry leaders, and other key stakeholders to explore collaborative pathways for a sustainable palm oil value chain.
Under the theme "Toward a Sustainable Green Value Chain: Collaborative Pathways for Palm Oil Trade," the discussions highlighted the critical role of palm oil in global trade and its potential to align with China's sustainability goals. Key topics include enhancing supply chain transparency, addressing market challenges, and promoting responsible consumption.
Palm oil is the world's most widely consumed vegetable oil, accounting for nearly 40% of global edible oil production. The eight member and observer countries of the CPOPC are responsible for 88.8% of the global palm oil production, supporting millions of livelihoods. Recognizing the growing demand for sustainable commodities, CPOPC members have made strides in addressing sustainability challenges. For example, Indonesia and Malaysia, two of the world's largest palm oil producing countries, have achieved near record-low primary forest loss despite increased production.
"Sustainability is non-negotiable," stressed Rizal Affandi Lukman, CPOPC Secretary-General. "Through initiatives like the Global Framework Principles for Sustainable Palm Oil, we are harmonizing standards and empowering smallholders to adopt eco-friendly practices. Palm oil isn't just an economic driver—it's a platform for green innovation."
China, as the world's second-largest importer of palm oil, is a critical partner for palm oil-producing countries. Last November, CPOPC signed a Memorandum of Understanding with the China Chamber of Commerce For Import and Export of Foodstuffs，Native Produce And Animal By－Products (CFNA) and World Resources Institute (WRI) China to strengthen sustainable cooperation between China and palm oil-producing countries. Building on this foundation, this meeting provides an important opportunity to further deepen collaboration between China and CPOPC member countries in advancing sustainable supply chains and fostering a green economy. Sawit Indonesia
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Indonesia’s Oil Palm Biomass: A Renewable Energy Opportunity
PALMOILMAGAZINE, KUALA LUMPUR — Indonesia’s vast network of oil palm plantations, spanning over 16 million hectares, generates more than 111 million tons of biomass each year—a largely untapped resource that holds massive potential for advancing the country’s renewable energy transition.
Speaking at the 5th International Oil Palm Biomass Conference 2025, organized by Malaysian Export Academy (MEXA) and held at the Berjaya Times Square Hotel in Kuala Lumpur, Dr. M. Windrawan Inantha, Deputy Director of Market Transformation (Indonesia) at the Roundtable on Sustainable Palm Oil (RSPO), emphasized the strategic value of Indonesia’s oil palm biomass.
“Our vision is to transform oil palm biomass from a byproduct into a powerful driver of Indonesia’s clean energy transition—reducing our reliance on fossil fuels, meeting renewable energy targets, and creating inclusive green growth,” Windrawan said.
In 2024, these plantations processed 200.7 million tons of fresh fruit bunches (FFB) to produce 48.17 million tons of crude palm oil, according to the Indonesian Palm Oil Association (GAPKI). This activity, concentrated in Sumatra and Kalimantan, generates vast biomass: empty fruit bunches (46.16 million tons), palm kernel shells (12.04–16.06 million tons), mesocarp fibre (26.09–30.11 million tons), palm oil mill effluent (130.46 million tons), oil palm trunks (22–35 million tons, peaking at 59.7 million during replanting), and oil palm fronds (27.1–30.1 million tons). Together, solid biomass totals 111.39 to 122.33 million tons annually, showcasing the immense output from Indonesia’s 16 million hectares.
This biomass could generate 40–59 terawatt-hours (TWh) of energy yearly, surpassing the 2025 bioenergy target of 33 TWh. Techniques like torrefaction and pyrolysis improve efficiency by reducing moisture in empty fruit bunches from 60% to 10%, yielding 19–30 TWh from solid biomass.
Palm oil mill effluent, through methane capture, produces 16.1–20.1 million barrels of oil equivalent, equating to 15.6–19.5 TWh at 30% generator efficiency. Oil palm trunks add 5–9 TWh. This energy supports co-firing in coal plants, potentially reaching 5 gigawatts and cutting emissions by 10–15% per megawatt. Palm kernel shells, with high energy content (19–23 MJ/kg), drive exports, with 1.5 million tons shipped to Japan in 2023, contributing 2–3 TWh annually.
Despite its promise, biomass utilization faces significant technical challenges that hinder progress. For instance, the high moisture content in empty fruit bunches, often reaching 60%, combined with 4–12% ash, increases processing costs by 20–30%, making energy production less efficient. Similarly, palm oil mill effluent releases methane, which has 28 times the warming impact of CO₂, yet only 10% of mills are equipped to capture it for biogas.
These technical barriers, compounded by the uneven distribution of biomass plants—mostly located in Sumatra while Kalimantan remains underserved—limit the scalability of biomass energy across Indonesia’s 16 million hectares of plantations.
However, innovative solutions offer a path to overcome these obstacles and unlock substantial economic and environmental benefits. Advanced technologies like torrefaction and pyrolysis can enhance biomass efficiency, while biochar production not only boosts energy output but also stores carbon, potentially adding $1 billion to Indonesia’s GDP by 2030. Expanding exports of palm kernel shells, already a valuable commodity with 1.5 million tons shipped to Japan in 2023, alongside scaling co-firing in 20 coal plants, could generate $500 million in revenue. Moreover, biomass initiatives could create 500,000 jobs by 2030, providing a significant boost to rural communities and supporting sustainable development across Indonesia’s plantation regions.
To fully realize this potential, a clear and actionable strategy is essential. Establishing a national biomass inventory would enable better tracking and management of the 111 million tons produced annually, ensuring efficient use across Indonesia’s plantations. Investing in facilities to process empty fruit bunches and palm kernel shells could help achieve 50 TWh by 2030, while requiring mills to use half their residues for energy by 2028 would drive progress. Developing affordable drying methods to reduce moisture in biomass, alongside implementing a carbon trading system to cut mill emissions by 20% by 2030, would further strengthen the sector and align it with Indonesia’s renewable energy ambitions.
The Kuala Lumpur conference shed light on Indonesia’s opportunity to transform its 16 million hectares of oil palm plantations biomass potential into a renewable energy asset. By tackling technical and policy challenges with practical solutions, the country can convert its abundant biomass into a valuable resource. This approach would not only help meet national energy targets but also foster a sustainable and prosperous future, positioning Indonesia as a leader in the global shift toward cleaner energy. Palm Oil Magazine
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Malaysia-170 palm oil mills install biogas facilities, surpassing NAPC target
PORT DICKSON: A total of 170 out of 446 palm oil mills installed biogas facilities last year, exceeding the National Agrocommodity Policy (NAPC) 2025 target of 155 mills and contributing to a reduction of greenhouse gas (GHG) emissions by 4.9 million tonnes of carbon dioxide (CO₂).
As such, Plantation and Commodities Minister, Datuk Seri Johari Abdul Ghani, called upon all palm oil millers to immediately develop the biogas industry.
"The development of the biogas industry has been proven to provide benefits and added value through the creation of job opportunities, economic growth, additional income and improved palm waste management — ultimately contributing to a better standard of living for rural communities," he told BuletinTV3 during a visit to the Cenergi Sua Betong Biogas Plant here today.
As the world's second largest palm oil producer, Johari said Malaysia is placing emphasis on implementing a circular economy at all stages of palm oil product production for better waste management.
"Capturing biomethane from palm oil industry waste, such as palm oil mill effluent (POME), can be used as a renewable energy source for electricity generation," he explained.
A total of 63.5 million tonnes of POME was produced in 2022, generation 1.8 billion cubic metres (m³) of biogas, capable of producing 1.22 gigawatts (GW) of energy per year.
The Sustainable Energy Development Authority (SEDA) allocated a 190MW feed-in tariff (FiT) quota for 2025, covering biogas, biomass and mini hydro projects, as well as 50MW specifically for biogas and 40MW for biomass.
Johari added that broader grid connection access is crucial to realising these projects.
He urged Tenaga Nasional Bhd (TNB) to further increase the connection capacity of palm oil mills to the national grid, enabling millers to invest and benefit from the use of palm biomass waste for renewable energy generation.
He noted that the shift in palm waste management strategy reflects Malaysia's commitment to environmental preservation.
"This is in line with Malaysia's pledge to achieve net zero carbon emissions by 2050, reduce carbon emissions by 45 per cent relative to gross domestic product (GDP) by 2030, and cut methane emissions by 30 per cent," he said.
To encourage more involvement from palm oil industry players, Johari called on millers unfamiliar with this concept to engage with Cenergi SEA Bhd to operate such biogas plants.
"Cenergi has the entire ecosystem in place. This biogas plant, with a capacity of 1.2 megawatts (MW), is operated by just seven people, all locals. They are qualified engineers and workers from the local community," he said.
Cenergi, a subsidiary of UEM Lestra Bhd, is one of the nation's sustainable energy solution providers, specialising in developing Malaysia's green industry, including renewable energy, waste management and green infrastructure.
The company currently operates 20 biogas plants nationwide, with 12 more under construction, bringing the total electricity generation capacity to 52.8MW and compressed natural gas BioCNG capacity to 65,000 million British thermal units. New Straits Times
---------
Combating biofuel fraud
Protecting the biodiesel industry from threats that come from outside the EU has become almost as important for the biofuels industry as advocating for better policies within the EU.
Around 10 or 15 years was a time when the European Biodiesel Board (EBB) started to make use of EU trade defence instruments, to ensure that trade was not only free but also fair. The EBB used to consider trade cases as an ad-hoc answer to a specific issue.
Times have changed
A quick glance at the list of open EU trade cases will show you that the bloc has opened over 40 cases against China alone, including the EBB’s very own anti-dumping case.
The larger trend shows what all European biodiesel producers – FAME, HVO and SAF alike – already know - trade cases have become a permanent concern, and they are here to stay.
The brand-new Commission is still finding its footing, exploring the balance between ambition and pragmatism, but it has already committed to strengthening Trade Defence Instruments (TDIs) such as anti-dumping and anti-subsidy measures to protect EU industries from unfair competition. Biofuels News
---------
Mythbusting: No, Palm Oil is NOT in 50% of Supermarket Products
“Absolutely no palm oil, ever!”
A bold claim, often printed proudly across product packaging. But it’s a largely unhelpful statement that stokes consumer fear without offering a clear understanding of the issue. The impacts of palm oil, like those of any vegetable oil, depend far more on how and where it’s produced than on the crop itself.
Fears surrounding palm oil, and the marketing advantages gained by promoting “palm-oil-free” products, are largely driven by media narratives that focus solely on the negative. These one-sided portrayals often ignore the contexts in which palm oil is produced ethically and sustainably, and more importantly, they rarely mention the environmental downsides of the oils that typically replace it.
For example, one frequently cited claim is that palm oil is found in 50% of supermarket products. You may have come across it before; it has become a staple of anti-palm oil campaigns. Big numbers presented in familiar contexts are powerful tools for shaping perception. Think of the widely used image of “6 football fields of forest lost every minute” (ref). But given their potential to influence public opinion and behavior, such statistics should be grounded in solid evidence.
A recent study by myself and a team of scientists, currently under peer-review, explored this particular claim, originally popularized by WWF in 2006. It didn’t take long to discover that the “50%” figure wasn’t backed by research. The parameters were unclear. Did this refer to global supermarkets? Were only packaged goods included? What about household items, fresh produce, or cleaning supplies?
Assessing all products in all supermarkets across the world would be a stretch for a research team of just five. Instead, we selected a random sample of around 2,000 items across three major supermarket chains in the Netherlands, the United Kingdom, and Australia as a practical way to test the claim’s validity.
Our preliminary findings are eye-opening. Palm oil was found in far fewer products than the widely cited 50% claim suggests. In fact, oil crops like maize, rapeseed, and soya appeared in more products than palm (Figure 1). Yet, when was the last time you saw a product proudly declare it was free of rapeseed? Sustainable Palm Oil Choice
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April 23, 2025
Crude Palm Oil to regain market share underpinned by soybean oil prices
KUALA LUMPUR, April 22 (Bernama) -- Palm oil prices are expected to remain supported at RM3,900 per tonne in the coming weeks, underpinned by the recovery in soybean oil prices, which enhances palm oil’s price competitiveness, according to the Malaysian Palm Oil Council (MPOC).
It said the ongoing decline in palm oil production in Sabah remains a concern and will likely limit any significant production recovery in the coming months.
"Despite these supportive factors, a strong rally in vegetable oil prices is unlikely, as escalating trade conflicts and soft crude oil prices imply higher risk and price volatility," it said in a statement today.
The MPOC noted that Malaysian palm oil stocks increased in March 2025 after six consecutive months of decline, rising to 1.56 million tonnes.
The increase was driven by a 16.8 per cent month-on-month rise in palm oil production, following delayed harvests in February due to heavy rainfall and flooding.
Despite the recovery in March, cumulative production for the first quarter of 2025 remains the lowest in three years, and year-on-year production declines are likely to persist until September.
“As a result, total palm oil production in 2025 could fall to around 19 million tonnes -- below the 19.3 million tonnes recorded in 2024,” the council said.
Palm oil has recently regained its price competitiveness against soft oils, trading at a premium in the global market since August 2024.
At RM3,900 per tonne, palm oil is now considered reasonably priced.
As a result, China is projected to increase its palm oil imports in May and June to replenish inventories, coinciding with the onset of the summer season, which typically sees higher palm oil consumption in the country, it said.
Similarly, India is expected to capitalise on the current low palm oil prices to replenish its depleted inventories, as the price gap between palm oil and soybean oil has narrowed in the domestic market.
Meanwhile, the MPOC highlighted that soybean oil prices on the Chicago Board of Trade (CBoT) exchange have been hovering above 42 cents per pound (equivalent to US$920 per tonne), despite bearish sentiment in the United States (US) market.
Following the recent removal of tax credit for both canola oil and imported used cooking oil from the US biodiesel supply chain, the feedstock shortfall is expected to be filled by increased demand for tallow and soybean oil.
This suggests that global soybean oil prices may have bottomed out and are poised for a strong recovery once US biofuel policy becomes clearer in the months to come, it said.
Meanwhile, although palm oil stocks in Malaysia are expected to continue rising from April onwards, the build-up will be moderate, capped by weak year-on-year production growth, particularly in Sabah.
Palm oil production in Sabah declined by 10 per cent to a five-year low from January to March 2025.
“This production shortfall would limit inventory accumulation and help support palm oil prices,” added MPOC. BERNAMA
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India starts raising palm oil buying as prices fall below soyoil
MUMBAI, April 23 (Reuters) - India has started raising palm oil purchases after a lull of five months as a correction in prices has made the tropical oil cheaper than rival soyoil, encouraging refiners to place orders to replenish inventories, four dealers told Reuters.
Higher purchases by India, the world's biggest buyer of palm oil, will support benchmark Malaysian palm oil futures , which have fallen nearly 10% so far in 2025.
"Indians had pulled back on buying palm oil because it was too pricey. But now that it's cheaper than soyoil, refiners are placing orders," said Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage.
Crude palm oil (CPO) is currently being offered at about $1,050 a ton, including cost, insurance and freight (CIF), in India for May delivery, compared to around $1,100 for crude soyoil, dealers said.
Indian buyers started trimming purchases from December as palm oil's premium over soyoil jumped above $100.
India imported 1.57 million tons of palm oil from December to March. Shipments for April are expected to be around 350,000 tons, bringing the average monthly imports for the five-month period to 384,712 tons.
India imported an average of more than 750,000 tons of palm oil each month during the marketing year that ended in October 2024, said the Solvent Extractors' Association of India, which is set to publish its April import data by mid-May.
The country's palm oil imports are likely to rise above 500,000 tons in May and exceed 600,000 tons in June. From July to September, the monthly average could be more than 700,000 tons, dealers said.
Stocks in India have depleted due to lower-than-normal imports over the past five months, and now refiners need to increase imports to replenish them, said Rajesh Patel, managing partner at GGN Research, an edible oil trader.
India buys palm oil mainly from Indonesia and Malaysia, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine. Reuters
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Indonesia strengthens forest monitoring with new tool to meet EU deforestation law
JAKARTA — Indonesia’s efforts to ensure its commodity exports are free of deforestation are ramping up as the European Union Deforestation Regulation, or EUDR, nears enforcement.
One of the biggest challenges in meeting EUDR standards is traceability. To meet the regulation’s strict requirements, Indonesia is stepping up efforts to provide verifiable, real-time data that prove the legality and sustainability of commodities like palm oil, timber, and other forest-risk products.
A new forest monitoring platform, Ground Truthed.id (GTID), aims to support this by documenting violations at the source — such as illegal oil palm plantations in forest zones, timber sourced from unlicensed concessions, and land conflicts — to complement satellite monitoring.
This will make it easier to track where supply chain irregularities begin, especially in remote or hard-to access areas, said Denny Bhatara, a senior campaigner at Kaoem Telapak, the environmental NGO behind GTID.
“Many incidents occur that we might not be aware of due to distance or a lack of reporting mechanisms,” he said. “Through GTID, we gather all field-based documentation and compile it into a unified system.”
What sets GTID apart, Denny said, is its focus on collecting real-time, verifiable geolocation-based evidence of environmental crimes from the ground up, unlike other platforms like Global Forest Watch (GFW), which start with satellite imagery before ground verification.
This bottom-up method ensures the data reflect real-world conditions rather than just remote-sensing estimates, he said. This allows authorities to confirm whether deforestation is unlawful and, crucially, to act before irreversible environmental damage occurs, Denny said.
“Sometimes, by the time we receive information from remote areas, the damage has already become massive and widespread,” he said. “[So] the faster we can share information, the better the chances of taking preventive action.”
GTID is currently available via web and Android apps for both online and offline data collection. Mongabay
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Crude Palm Oil to regain market share underpinned by soybean oil prices
KUALA LUMPUR, April 22 (Bernama) -- Palm oil prices are expected to remain supported at RM3,900 per tonne in the coming weeks, underpinned by the recovery in soybean oil prices, which enhances palm oil’s price competitiveness, according to the Malaysian Palm Oil Council (MPOC).
It said the ongoing decline in palm oil production in Sabah remains a concern and will likely limit any significant production recovery in the coming months.
"Despite these supportive factors, a strong rally in vegetable oil prices is unlikely, as escalating trade conflicts and soft crude oil prices imply higher risk and price volatility," it said in a statement today.
The MPOC noted that Malaysian palm oil stocks increased in March 2025 after six consecutive months of decline, rising to 1.56 million tonnes.
The increase was driven by a 16.8 per cent month-on-month rise in palm oil production, following delayed harvests in February due to heavy rainfall and flooding.
Despite the recovery in March, cumulative production for the first quarter of 2025 remains the lowest in three years, and year-on-year production declines are likely to persist until September.
“As a result, total palm oil production in 2025 could fall to around 19 million tonnes -- below the 19.3 million tonnes recorded in 2024,” the council said.
Palm oil has recently regained its price competitiveness against soft oils, trading at a premium in the global market since August 2024.
At RM3,900 per tonne, palm oil is now considered reasonably priced.
As a result, China is projected to increase its palm oil imports in May and June to replenish inventories, coinciding with the onset of the summer season, which typically sees higher palm oil consumption in the country, it said.
Similarly, India is expected to capitalise on the current low palm oil prices to replenish its depleted inventories, as the price gap between palm oil and soybean oil has narrowed in the domestic market.
Meanwhile, the MPOC highlighted that soybean oil prices on the Chicago Board of Trade (CBoT) exchange have been hovering above 42 cents per pound (equivalent to US$920 per tonne), despite bearish sentiment in the United States (US) market.
Following the recent removal of tax credit for both canola oil and imported used cooking oil from the US biodiesel supply chain, the feedstock shortfall is expected to be filled by increased demand for tallow and soybean oil.
This suggests that global soybean oil prices may have bottomed out and are poised for a strong recovery once US biofuel policy becomes clearer in the months to come, it said.
Meanwhile, although palm oil stocks in Malaysia are expected to continue rising from April onwards, the build-up will be moderate, capped by weak year-on-year production growth, particularly in Sabah.
Palm oil production in Sabah declined by 10 per cent to a five-year low from January to March 2025.
“This production shortfall would limit inventory accumulation and help support palm oil prices,” added MPOC. BERNAMA
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India starts raising palm oil buying as prices fall below soyoil
MUMBAI, April 23 (Reuters) - India has started raising palm oil purchases after a lull of five months as a correction in prices has made the tropical oil cheaper than rival soyoil, encouraging refiners to place orders to replenish inventories, four dealers told Reuters.
Higher purchases by India, the world's biggest buyer of palm oil, will support benchmark Malaysian palm oil futures , which have fallen nearly 10% so far in 2025.
"Indians had pulled back on buying palm oil because it was too pricey. But now that it's cheaper than soyoil, refiners are placing orders," said Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage.
Crude palm oil (CPO) is currently being offered at about $1,050 a ton, including cost, insurance and freight (CIF), in India for May delivery, compared to around $1,100 for crude soyoil, dealers said.
Indian buyers started trimming purchases from December as palm oil's premium over soyoil jumped above $100.
India imported 1.57 million tons of palm oil from December to March. Shipments for April are expected to be around 350,000 tons, bringing the average monthly imports for the five-month period to 384,712 tons.
India imported an average of more than 750,000 tons of palm oil each month during the marketing year that ended in October 2024, said the Solvent Extractors' Association of India, which is set to publish its April import data by mid-May.
The country's palm oil imports are likely to rise above 500,000 tons in May and exceed 600,000 tons in June. From July to September, the monthly average could be more than 700,000 tons, dealers said.
Stocks in India have depleted due to lower-than-normal imports over the past five months, and now refiners need to increase imports to replenish them, said Rajesh Patel, managing partner at GGN Research, an edible oil trader.
India buys palm oil mainly from Indonesia and Malaysia, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine. Reuters
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Indonesia strengthens forest monitoring with new tool to meet EU deforestation law
- Indonesia is stepping up traceability efforts to comply with the EU Deforestation Regulation (EUDR), which bans imports of deforestation-linked commodities like palm oil, timber and coffee starting in December 2025.
- A new platform, Ground Truthed.id (GTID), combines field-based evidence and geolocation data to detect and document environmental violations in real time, offering a bottom-up alternative to satellite-reliant systems.
- GTID emphasizes collaboration with Indigenous peoples, civil society and law enforcement, using a verification process to turn grassroots reports into legally actionable cases.
- The platform is expected to complement a government-run traceability dashboard by acting as an independent watchdog, helping prevent illegally sourced or conflict-ridden products from entering international supply chains.
JAKARTA — Indonesia’s efforts to ensure its commodity exports are free of deforestation are ramping up as the European Union Deforestation Regulation, or EUDR, nears enforcement.
One of the biggest challenges in meeting EUDR standards is traceability. To meet the regulation’s strict requirements, Indonesia is stepping up efforts to provide verifiable, real-time data that prove the legality and sustainability of commodities like palm oil, timber, and other forest-risk products.
A new forest monitoring platform, Ground Truthed.id (GTID), aims to support this by documenting violations at the source — such as illegal oil palm plantations in forest zones, timber sourced from unlicensed concessions, and land conflicts — to complement satellite monitoring.
This will make it easier to track where supply chain irregularities begin, especially in remote or hard-to access areas, said Denny Bhatara, a senior campaigner at Kaoem Telapak, the environmental NGO behind GTID.
“Many incidents occur that we might not be aware of due to distance or a lack of reporting mechanisms,” he said. “Through GTID, we gather all field-based documentation and compile it into a unified system.”
What sets GTID apart, Denny said, is its focus on collecting real-time, verifiable geolocation-based evidence of environmental crimes from the ground up, unlike other platforms like Global Forest Watch (GFW), which start with satellite imagery before ground verification.
This bottom-up method ensures the data reflect real-world conditions rather than just remote-sensing estimates, he said. This allows authorities to confirm whether deforestation is unlawful and, crucially, to act before irreversible environmental damage occurs, Denny said.
“Sometimes, by the time we receive information from remote areas, the damage has already become massive and widespread,” he said. “[So] the faster we can share information, the better the chances of taking preventive action.”
GTID is currently available via web and Android apps for both online and offline data collection. Mongabay
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April 22, 2025
European Commission urged to recognise Malaysian Sustainable Palm Oil certification to enhance compliance with EU Deforestation Regulation
KUALA LUMPUR (April 22): The European Commission (EC) has been urged to recognise the Malaysian Sustainable Palm Oil (MSPO) certification in order to promote greater acceptance of the European Union Deforestation Regulation (EUDR).
Malaysian Palm Oil Council (MPOC) chief executive officer Belvinder Kaur Sron said the MSPO certification effectively prohibited deforestation for palm oil production post-2019, and studies also show a high degree of convergence between the certification and EUDR standards.
“Recognising convergent national certification schemes (such as MSPO) as EUDR-compliant would streamline compliance obligations for producers, remove unnecessary duplication, and reduce due diligence obligations for buyers to the minimum,” she told Bernama.
Belvinder also urged the EC to accept Malaysia’s sustainability achievements, and classify the country as low-risk, under the EUDR's country benchmarking system.
“Several international organisations, including the United Nations Food and Agriculture Organization and the World Resources Institute, have indicated a significant decline in Malaysia’s forest loss, which is consistent with ‘low risk’ status.
“In this regard, Malaysian palm oil is no longer a driver of deforestation, and ‘low-risk’ status is a needed tool to simplify EUDR compliance, while alleviating the burden on EU buyers and Malaysian producers,” she said in response to the EC’s announcement to simplify EUDR implementation via an updated guideline and frequently asked questions (FAQs) on April 15.
The MPOC acknowledges the simplifications made, but this will only be meaningful if these simplifications trickle down to producers in Malaysia and reduce unnecessary, duplicative compliance burdens.
“The reality is, the EUDR imposes a significant administrative burden on palm oil producers, particularly smallholders in Malaysia.
“Therefore, simplification efforts for all stakeholders, including the producing countries, are most important, instead of targeted simplification for certain stakeholders in the supply chain,” said Belvinder.
On another note, Malaysian Palm Oil Board (MPOB) director general Datuk Dr Ahmad Parveez Ghulam Kadir said the updated guideline provides greater clarity to implement the EUDR, which benefits mainly EU companies and Malaysian exporters by reducing ambiguity and aligning practices with regulatory requirements.
“We appreciate the move to allow companies to submit due diligence statements annually instead of for every shipment or batch placed on the EU market. However, it is important to emphasise that the core obligations and requirements outlined in the main text of the EUDR remain unchanged.
“Malaysian exporters to the EU will still need to comply with the EUDR,” he said, adding that the estimated 30% fall in administrative costs will primarily benefit EU companies.
Ahmad Parveez said these clarifications may assist in understanding the implementation process, but they do not significantly reduce the compliance burden, especially among small- and medium-sized companies.
“Malaysian exporters are still required to meet stringent compliance requirements, including detailed geolocation data and proof of deforestation-free sourcing.
“Therefore, the industry continues to advocate greater recognition of national sustainability certifications, such as the MSPO certification, and for transparent benchmarking criteria to ensure fair treatment under the EUDR,” he added.
Originally set to apply in December 2024, the EUDR is now scheduled to enter into force at the end of 2025 for member states, operators and traders. Hence, the EC published new guidance documents to facilitate this.
“The updated guidance and FAQs will provide companies, EU member states' authorities and partner countries with additional simplified measures and clarifications on how to demonstrate that their products are deforestation-free.
“Both documents reflect the input from member states, partner countries, businesses, and industry. This will also guarantee harmonised implementation of the law across the EU,” said the EC. The Edge
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Malaysia-China industrial cooperation to bring new opportunities: deputy minister
KUALA LUMPUR, April 21 (Xinhua) -- Industrial cooperation between Malaysia and China has offered new opportunities for common development, and China's thriving market plays a crucial role in the future development of Malaysia's palm oil industry, a Malaysian government official has said.
In a recent interview with Xinhua, Malaysia's Deputy Minister of Plantation and Commodities Chan Foong Hin said the two countries have maintained frequent high-level exchanges, promoting more robust trade activities and leading to a series of new achievements in multiple sectors.
Chan, who has traveled extensively across China, sees considerable untapped potential beyond the country's major megacities. "We believe the central and western regions of China hold enormous market possibilities," he said.
"Later this year, I plan to visit Chengdu and Chongqing (in southwestern China) to explore collaborations for high-value palm oil goods that cater to local industries," Chan added.
Statistics show that bilateral trade volume in 2024 reached a historic high of 212 billion U.S. dollars, and China has been Malaysia's largest trading partner for 16 consecutive years.
Noting that China is one of the most important markets of Malaysia's palm oil, Chan said Malaysia's palm oil exports to China in 2024 reached 10.57 billion ringgit (about 17.4 billion dollars), accounting for over half of Malaysia's bulk commodity exports to China.
A new trend in the Chinese market is bringing new opportunities for cooperation, Chan said, highlighting an increasing shift from traditional food uses of palm oil to bioenergy, chemicals, and other high-end industrial applications.
Chan mentioned Malaysia's Palm Oil Board, which set up a research and development (R&D) center in Shanghai back in 2005. "That R&D center has been hugely important," he stressed. "It fosters continuous interactions between Malaysian and Chinese markets, encouraging product innovation beneficial to both sides."
"We look forward to jointly tapping into advanced fields like artificial intelligence and drones, applying these technologies to our industry development," he said. Xinhua
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Malaysia eyes Africa for trade expansion as Trump’s tariffs loom
Africa, with a combined estimated US$3 trillion economy and a population of about 1.3 billion, offers potential for trade and investments
Malaysia may seek to sell palm oil, petroleum and its infrastructure expertise to more African nations, experts say, as US trade barriers inject urgency into the hunt for new markets.
Malaysia faces the prospect of a 24 per cent duty by US President Donald Trump’s administration. Its top commerce official is set for talks in Washington on Thursday over ways to ease the pain before the 90-day tariff pause ends in early July.
But ahead of those negotiations, China – the Southeast Asian nation’s second-biggest buyer – has warned its trading partners against yielding to US demands, particularly those that could disrupt Chinese supply chains.
That has heightened the importance of exploring new export markets. As tariff chaos affects economic plans worldwide, Uganda is hosting an expo in Kuala Lumpur to promote deeper trade and investment in agriculture, tourism, energy and minerals.
This two-day expo is the first of its kind organised by an East African nation in Malaysia, promising to provide investors with direct access to “the people shaping Uganda’s economic future”, including the finance and energy ministers.
Uganda exports coffee and tea, and also has deep resources of gold, copper and lithium. SCMP
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DBS: US Tariff Could Cut Indonesia’s Growth by 0.5 Pct
Jakarta. A proposed 32 percent reciprocal tariff on Indonesian exports by the United States could shave up to 0.5 percentage points off Indonesia’s GDP growth this year if implemented, according to DBS Group Research.
The tariff, announced by US President Donald Trump on April 2, is currently under a 90-day delay, but market risks remain even if a lower base tariff of 10 percent takes effect, said Radhika Rao, Senior Economist at DBS.
“DBS Group Research’s impact analysis shows a direct hit of 0.5 percent to GDP growth this year and about half that next year if the higher tariff is reinstated,” Rao said in a statement on Monday.
Rao said the full economic effect would come on top of existing headwinds from slowing global growth. She said Indonesian policymakers would likely respond by stepping up efforts to stimulate domestic demand. Jakarta Globe
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Japan’s Revo launches SAF, biodiesel plant in Aichi
Japanese biodiesel producer Revo International has launched a plant in the Aichi prefecture, central Japan, to produce sustainable aviation fuel (SAF) and biodiesel.
This is the company's first SAF plant but its second biodiesel plant, Revo said. The firm already has a biodiesel plant in Kyoto, western Japan.
Revo held an opening ceremony at the Aichi plant on 18 April. The plant has a production capacity of 30,000 litres/d for biodiesel, and can process 600 l/d of used cooking oil (UCO) as feedstock to make SAF.
The plant can produce SAF at low pressure and temperature, Revo's president Tetsuya Koshikawa said at the ceremony. This helps to save energy consumption during SAF production, which results in a lower production cost, the firm explains.
Revo hopes to supply the produced SAF to planes at Chubu International Airport, near the Aichi plant. The company has applied for international certifications on SAF including the UN's Carbon Offsetting and Reduction Scheme for International Aviation (Corsia) and the American Society for Testing and Materials (ASTM) standards, and expects to be certified in the 2025 fiscal year starting from April.
Revo also joined Japan's first large-scale domestic SAF production venture Saffaire Sky Energy, jointly funded by Japanese refiner Cosmo Oil, engineering firm JGC and Revo. Saffaire has a SAF plant at Cosmo's Sakai refinery, Osaka, and started delivering its SAF in this April. In the venture, Revo takes charge of collecting UCO as feedstock for SAF.
The companies have announced the plans to start delivering Saffaire's SAF to domestic airlines Japan Airlines (JAL) and All Nippon Airways (ANA), the US' Delta Air Lines, Finnish airline Finnair and German logistics group DHL Express in the 2025 fiscal year.
Cosmo group will also deliver Saffaire's SAF to Taiwanese airline Starlux Airlines in the 2025 fiscal year at Kobe airport, western Japan, Cosmo and JGC announced on 18 April. Argus Media
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European Commission urged to recognise Malaysian Sustainable Palm Oil certification to enhance compliance with EU Deforestation Regulation
KUALA LUMPUR (April 22): The European Commission (EC) has been urged to recognise the Malaysian Sustainable Palm Oil (MSPO) certification in order to promote greater acceptance of the European Union Deforestation Regulation (EUDR).
Malaysian Palm Oil Council (MPOC) chief executive officer Belvinder Kaur Sron said the MSPO certification effectively prohibited deforestation for palm oil production post-2019, and studies also show a high degree of convergence between the certification and EUDR standards.
“Recognising convergent national certification schemes (such as MSPO) as EUDR-compliant would streamline compliance obligations for producers, remove unnecessary duplication, and reduce due diligence obligations for buyers to the minimum,” she told Bernama.
Belvinder also urged the EC to accept Malaysia’s sustainability achievements, and classify the country as low-risk, under the EUDR's country benchmarking system.
“Several international organisations, including the United Nations Food and Agriculture Organization and the World Resources Institute, have indicated a significant decline in Malaysia’s forest loss, which is consistent with ‘low risk’ status.
“In this regard, Malaysian palm oil is no longer a driver of deforestation, and ‘low-risk’ status is a needed tool to simplify EUDR compliance, while alleviating the burden on EU buyers and Malaysian producers,” she said in response to the EC’s announcement to simplify EUDR implementation via an updated guideline and frequently asked questions (FAQs) on April 15.
The MPOC acknowledges the simplifications made, but this will only be meaningful if these simplifications trickle down to producers in Malaysia and reduce unnecessary, duplicative compliance burdens.
“The reality is, the EUDR imposes a significant administrative burden on palm oil producers, particularly smallholders in Malaysia.
“Therefore, simplification efforts for all stakeholders, including the producing countries, are most important, instead of targeted simplification for certain stakeholders in the supply chain,” said Belvinder.
On another note, Malaysian Palm Oil Board (MPOB) director general Datuk Dr Ahmad Parveez Ghulam Kadir said the updated guideline provides greater clarity to implement the EUDR, which benefits mainly EU companies and Malaysian exporters by reducing ambiguity and aligning practices with regulatory requirements.
“We appreciate the move to allow companies to submit due diligence statements annually instead of for every shipment or batch placed on the EU market. However, it is important to emphasise that the core obligations and requirements outlined in the main text of the EUDR remain unchanged.
“Malaysian exporters to the EU will still need to comply with the EUDR,” he said, adding that the estimated 30% fall in administrative costs will primarily benefit EU companies.
Ahmad Parveez said these clarifications may assist in understanding the implementation process, but they do not significantly reduce the compliance burden, especially among small- and medium-sized companies.
“Malaysian exporters are still required to meet stringent compliance requirements, including detailed geolocation data and proof of deforestation-free sourcing.
“Therefore, the industry continues to advocate greater recognition of national sustainability certifications, such as the MSPO certification, and for transparent benchmarking criteria to ensure fair treatment under the EUDR,” he added.
Originally set to apply in December 2024, the EUDR is now scheduled to enter into force at the end of 2025 for member states, operators and traders. Hence, the EC published new guidance documents to facilitate this.
“The updated guidance and FAQs will provide companies, EU member states' authorities and partner countries with additional simplified measures and clarifications on how to demonstrate that their products are deforestation-free.
“Both documents reflect the input from member states, partner countries, businesses, and industry. This will also guarantee harmonised implementation of the law across the EU,” said the EC. The Edge
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Malaysia-China industrial cooperation to bring new opportunities: deputy minister
KUALA LUMPUR, April 21 (Xinhua) -- Industrial cooperation between Malaysia and China has offered new opportunities for common development, and China's thriving market plays a crucial role in the future development of Malaysia's palm oil industry, a Malaysian government official has said.
In a recent interview with Xinhua, Malaysia's Deputy Minister of Plantation and Commodities Chan Foong Hin said the two countries have maintained frequent high-level exchanges, promoting more robust trade activities and leading to a series of new achievements in multiple sectors.
Chan, who has traveled extensively across China, sees considerable untapped potential beyond the country's major megacities. "We believe the central and western regions of China hold enormous market possibilities," he said.
"Later this year, I plan to visit Chengdu and Chongqing (in southwestern China) to explore collaborations for high-value palm oil goods that cater to local industries," Chan added.
Statistics show that bilateral trade volume in 2024 reached a historic high of 212 billion U.S. dollars, and China has been Malaysia's largest trading partner for 16 consecutive years.
Noting that China is one of the most important markets of Malaysia's palm oil, Chan said Malaysia's palm oil exports to China in 2024 reached 10.57 billion ringgit (about 17.4 billion dollars), accounting for over half of Malaysia's bulk commodity exports to China.
A new trend in the Chinese market is bringing new opportunities for cooperation, Chan said, highlighting an increasing shift from traditional food uses of palm oil to bioenergy, chemicals, and other high-end industrial applications.
Chan mentioned Malaysia's Palm Oil Board, which set up a research and development (R&D) center in Shanghai back in 2005. "That R&D center has been hugely important," he stressed. "It fosters continuous interactions between Malaysian and Chinese markets, encouraging product innovation beneficial to both sides."
"We look forward to jointly tapping into advanced fields like artificial intelligence and drones, applying these technologies to our industry development," he said. Xinhua
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Malaysia eyes Africa for trade expansion as Trump’s tariffs loom
Africa, with a combined estimated US$3 trillion economy and a population of about 1.3 billion, offers potential for trade and investments
Malaysia may seek to sell palm oil, petroleum and its infrastructure expertise to more African nations, experts say, as US trade barriers inject urgency into the hunt for new markets.
Malaysia faces the prospect of a 24 per cent duty by US President Donald Trump’s administration. Its top commerce official is set for talks in Washington on Thursday over ways to ease the pain before the 90-day tariff pause ends in early July.
But ahead of those negotiations, China – the Southeast Asian nation’s second-biggest buyer – has warned its trading partners against yielding to US demands, particularly those that could disrupt Chinese supply chains.
That has heightened the importance of exploring new export markets. As tariff chaos affects economic plans worldwide, Uganda is hosting an expo in Kuala Lumpur to promote deeper trade and investment in agriculture, tourism, energy and minerals.
This two-day expo is the first of its kind organised by an East African nation in Malaysia, promising to provide investors with direct access to “the people shaping Uganda’s economic future”, including the finance and energy ministers.
Uganda exports coffee and tea, and also has deep resources of gold, copper and lithium. SCMP
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DBS: US Tariff Could Cut Indonesia’s Growth by 0.5 Pct
Jakarta. A proposed 32 percent reciprocal tariff on Indonesian exports by the United States could shave up to 0.5 percentage points off Indonesia’s GDP growth this year if implemented, according to DBS Group Research.
The tariff, announced by US President Donald Trump on April 2, is currently under a 90-day delay, but market risks remain even if a lower base tariff of 10 percent takes effect, said Radhika Rao, Senior Economist at DBS.
“DBS Group Research’s impact analysis shows a direct hit of 0.5 percent to GDP growth this year and about half that next year if the higher tariff is reinstated,” Rao said in a statement on Monday.
Rao said the full economic effect would come on top of existing headwinds from slowing global growth. She said Indonesian policymakers would likely respond by stepping up efforts to stimulate domestic demand. Jakarta Globe
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Japan’s Revo launches SAF, biodiesel plant in Aichi
Japanese biodiesel producer Revo International has launched a plant in the Aichi prefecture, central Japan, to produce sustainable aviation fuel (SAF) and biodiesel.
This is the company's first SAF plant but its second biodiesel plant, Revo said. The firm already has a biodiesel plant in Kyoto, western Japan.
Revo held an opening ceremony at the Aichi plant on 18 April. The plant has a production capacity of 30,000 litres/d for biodiesel, and can process 600 l/d of used cooking oil (UCO) as feedstock to make SAF.
The plant can produce SAF at low pressure and temperature, Revo's president Tetsuya Koshikawa said at the ceremony. This helps to save energy consumption during SAF production, which results in a lower production cost, the firm explains.
Revo hopes to supply the produced SAF to planes at Chubu International Airport, near the Aichi plant. The company has applied for international certifications on SAF including the UN's Carbon Offsetting and Reduction Scheme for International Aviation (Corsia) and the American Society for Testing and Materials (ASTM) standards, and expects to be certified in the 2025 fiscal year starting from April.
Revo also joined Japan's first large-scale domestic SAF production venture Saffaire Sky Energy, jointly funded by Japanese refiner Cosmo Oil, engineering firm JGC and Revo. Saffaire has a SAF plant at Cosmo's Sakai refinery, Osaka, and started delivering its SAF in this April. In the venture, Revo takes charge of collecting UCO as feedstock for SAF.
The companies have announced the plans to start delivering Saffaire's SAF to domestic airlines Japan Airlines (JAL) and All Nippon Airways (ANA), the US' Delta Air Lines, Finnish airline Finnair and German logistics group DHL Express in the 2025 fiscal year.
Cosmo group will also deliver Saffaire's SAF to Taiwanese airline Starlux Airlines in the 2025 fiscal year at Kobe airport, western Japan, Cosmo and JGC announced on 18 April. Argus Media
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April 21, 2025
Indonesia’s Surplus with US Soars Amid Tariff Negotiations
Jakarta. The Central Statistics Agency (BPS) reported Monday that Indonesia’s trade surplus with the US had grown amid the ongoing negotiations on Washington’s tariffs.
Indonesia is currently in talks with the US government in hopes that the latter will slash its 32 percent reciprocal tariff. After July 9, the US will begin charging nearly all its trading partners steep tariffs -- which differ by country -- as President Donald Trump wants to improve Washington’s trade imbalance. A 10 percent universal levy is already in place on imports coming to the American market.
Indonesia is giving itself a deadline of 60 days to reach an agreement on the tariffs. As Jakarta tries to appease Trump by promising to buy more American agricultural commodities, the gap in bilateral trade grows, according to the latest official statistics.
BPS data showed that Indonesia ran a $1.57 billion surplus in non-oil and gas trade with the US in February 2025. The numbers jumped to $1.98 billion the following month.
A surplus means that Indonesia’s exports to the US exceed what it imports. Electrical machinery and equipment made up the lion’s share of the surplus in March, adding $465 million to the positive trade balance. Followed by footwear ($239.7 million). Indonesia saw a $238.7 million surplus when trading animal/vegetable fats and oil, which would include its top commodity, palm oil.
“Indonesia's total surplus with the US hit $4.32 billion in the first quarter of 2025,” BPS’ head Amalia Adininggar Widyasanti told a press briefing.
The said figures, which also took into account oil and gas trade, marked quite a significant jump from the $3.61 billion surplus recorded in the same quarter in 2024. This also means that bilateral trade has become more imbalanced under the Trump 2.0 administration. The businessman-turned-politician returned to the White House on Jan. 20.
“The US -- alongside India and the Philippines -- has been the biggest contributor to our trade surplus over the past 10 years. Our highest-ever surplus with the US was $16.57 billion in 2022,” Amalia said.
BPS’ latest data only encompassed the trade figures up to the end of March. Trump announced his punitive tariff plans in early April. BPS will release April’s trade statistics next month. The statistics agency also revealed that Indonesia had run a 59-month surplus streak in overall trade since May 2020. Jakarta Globe
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India's love for oily foods triples edible oil use, leading to a surge in imports
Every Indian now consumes 24 kg edible oil a year, triple the 2001 level
ICMR recommends a 12 kg limit, but rising consumption is fuelling obesity, lifestyle diseases, and growing dependence on edible oil imports
India’s per capita edible oil consumption has nearly tripled in the last two decades, escalating the country’s dependence on imports and deepening public health concerns related to obesity and non-communicable diseases, according to a report by Mint.
From just 8.2 kg in 2001, per capita annual consumption of edible oil has soared to 23.5 kg—nearly double the limit of 12 kg recommended by the Indian Council of Medical Research (ICMR). Niti Aayog member Ramesh Chand noted that the government is working to enhance domestic production under the National Mission on Edible Oils, with a dual focus on palm oil and traditional oilseeds, Mint reported.
India remains heavily reliant on edible oil imports
Despite some gains in domestic output, India remains heavily reliant on imports. Recent data from the Solvent Extractors’ Association of India (SEA) shows the country consumes about 25–26 million tonnes of edible oil annually, while producing just 11 million tonnes locally—leaving a 60 per cent gap filled through imports. India sources palm oil from Indonesia and Malaysia, soybean oil from Argentina and Brazil, and sunflower oil from Russia and Ukraine.
India’s import of crude soybean oil more than doubled to over 1.9 million tonnes between November 2024 and March 2025, compared to the same period a year ago. The country’s overall edible oil imports stood at an estimated 16 million tonnes in 2023–24, highlighting the widening demand–supply gap.
Palm oil leads India’s edible oil consumption
According to industry figures, palm oil now accounts for over 37 per cent of India’s edible oil consumption, followed by soybean (20 per cent), mustard (14 per cent), and sunflower (13 per cent). Demand is particularly high from the HoReCa segment (hotels, restaurants, and catering), driven by a surge in out-of-home food consumption, ready-to-eat products, and bakery items.
High oil consumption flagged in big and small cities
Home-cooked and commercially prepared oil-rich diets are driving up health issues in big cities as well as Tier-II and Tier-III cities. Excessive oil intake has been linked to obesity, cardiovascular diseases, fatty liver, and type-II diabetes.
Centre launches mission to reduce edible oil imports
To curb this trend and reduce import dependence, the Centre is ramping up efforts to boost self-sufficiency. In October 2024, it approved the National Mission on Edible Oils–Oilseeds (NMEO–OS), with a budget of ₹10,103 crore. The mission aims to raise oilseed production from 39 million tonnes in 2022–23 to 69.7 million tonnes by 2030–31. It complements the ongoing National Mission on Edible Oils–Oil Palm (NMEO–OP), launched in 2021 with an outlay of ₹11,040 crore.
PM calls on nation to reduce edible oil intake
Meanwhile, Prime Minister Narendra Modi on Saturday endorsed efforts to reduce oil intake, as part of a broader push for a healthier India. Responding to a pledge from Union Health Minister JP Nadda to cut oil consumption by 10 per cent, Modi emphasised the importance of small lifestyle changes to combat obesity and lifestyle diseases, on the occasion of World Liver Day. Business Standard
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Nepal's Exports up by 65% in first nine months of current FY
Kathmandu, Apr. 21: Nepal’s export sector has witnessed a significant surge, with goods worth Rs. 188.19 billion exported in the first nine months of the current fiscal year 2024/25.
Compared to the same period last fiscal year, when exports stood at Rs. 113.94 billion, this represents a sharp increase of 65.16 per cent — a sign of healthy growth in the country’s foreign trade, according to a trade statistics of the Department of Customs made public on Sunday.
Goods worth Rs. 30.02 billion have been exported from the country in a single month of Chaitra (from March 14 to April 13, 2025). Goods worth Rs. 30 billion had been exported in the month of Falugn this year as well.
The country's export sector has recorded impressive growth even during the nine months of the 2024/25 fiscal year, reflecting a healthy performance in the country’s foreign trade.
In the meantime, Nepal's import trade has also improved during the review period of the current fiscal year. The country imported goods worth Rs. 1,309.53 billion during the first nine months. The import was Rs. 1,167.36 billion during the same period last fiscal year.
Goods worth Rs. 167.08 billion have been imported in a single month of Chaitra (from March 14 to April 13, 2025). The import trade has increased by 12.18 per cent during the review period as compared to same period last fiscal year.
With an increase in both exports and imports, the country’s foreign trade volume has reached Rs. 1,497.72 billion during the review period which is 16.89 per cent more than the previous year.
However, the trade deficit remains a challenge. It has widened by 6.96 per cent, reaching Rs. 1,121.33 billion during the review period. In the first nine months of 2023/24, the deficit was recorded at Rs. 1,053.42 billion.
Despite the rising trade deficit, substantial growth in exports reflects a positive trajectory for Nepal’s economy, particularly in boosting domestic production and international trade competitiveness.
The increment in the export of soybean oil, sunflower and tea and coffee has contributed to an increase in export trade during the review period.
The country has exported soybean oil worth Rs. 62.78 billion, soybean oil worth Rs. 9.2 billion and palm oil worth Rs. 1.83 billion during the review period.
Similarly, the country exported tea and coffee worth Rs. 3.64 billion, cardamom worth Rs. 6.26 billion during the first nine months of the current fiscal year. In the meantime, petroleum products worth Rs. 201 billion have been imported during the first seven months of the current fiscal year.
Diesel is the most imported commodity in the first seven months of the current fiscal year. Diesel worth Rs. 91.26 billion has been imported during the period.
Petrol worth Rs. 47.77 billion, aviation fuel worth Rs. 14.64 billion, liquefied petroleum gas worth Rs. 46.58 billion and kerosene worth Rs. 844 million were imported during the review period. Rising Nepal Daily
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Call for stronger collaboration to unlock oil palm biomass utilisation
KUALA LUMPUR: Industry stakeholders have urged stronger collaboration and more coherent policy direction to accelerate the use of oil palm biomass in supporting Malaysia’s low-carbon goals.
The call was made during the 5th International Oil Palm Biomass Conference 2025, held on April 14 and 15.
The conference brought together researchers, policymakers, and industry players to discuss pathways for sustainable biomass utilisation.
Chemical engineer Hong Wai Onn from the Research Institute for Sustainable Excellence and Leadership, who was one of the panellists at the conference, highlighted the underutilisation of oil palm biomass and stressed the need for better coordination among stakeholders.
“The oil palm industry produces over 100 million tonnes of dry biomass annually – including trunks, fronds, empty fruit bunches, and palm kernel shells – which are often treated as waste but hold significant untapped potential,” he said.
Hong proposed a collaborative ecosystem with four key players: government agencies, sustainability standard owners, technology providers, and biomass producers and valorisers.
“To truly transform the industry, we need synergy across these four pillars, with governments providing clear policy direction and funding support, standard owners encouraging carbon-footprint reductions, technology providers offering cost-effective solutions, and producers and valorisers committing to sustainability standards and ensuring stable supply and demand,” he explained. The StarMY
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MSPO to launch Impact Alliance platform by 3Q to boost certification value
MALAYSIAN Sustainable Palm Oil (MSPO) will establish the MSPO Impact Alliance by the third quarter (3Q) of this year, a new multi-stakeholder platform that aims to explore and test innovative models that enhance the value of certification.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the platform was established through collaboration with NGOs, accreditation bodies, financiers, technology partners and multinational fast-moving consumer goods companies to support various pilot initiatives.
The pilot initiatives supported include green financing for certified producers, digitised traceability solutions, deforestation monitoring tools and inclusive sourcing incentives for smallholders.
The minister said the idea is to move multinational companies using palm oil to adhere to the concept of sustainability.
“Therefore, our sustainability concept is certification, and we strive to be a partner so that they (the multinational companies) can continue to give us feedback.
“There must be a two-way system to perfect the process. You need two-way communication, which means both buyers and producers.
“The feedback provided will include suggestions for improvement to the (MSPO) standards strive to be a partner so that they (the multinational companies) can continue to give us feedback.
“There must be a two-way system to perfect the process. You need two-way communication, which means both buyers and producers.
“The feedback provided will include suggestions for improvement to the (MSPO) standards, which we will introduce into the system,” he told the media after the memorandum of understanding (MoU) signing ceremony between MSPO and Nestle Malaysia recently.
Johari said this Impact Alliance platform would also focus on practical solutions, including traceability for smallholders, tools for social compliance, preparation for emerging regulations like the European Union Deforestation Regulation (EUDR) and joint efforts to demonstrate impact.
He said these are some of the initiatives we are taking to engage more multinational companies operating in our country, especially those involved in food products such as confectionery, and non-food products such as personal care items and detergents. The Malaysian Reserve
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NRES Seriously Concerned With Pollution Issues In Sungai Segaliud
SANDAKAN, April 20 (Bernama) -- The Ministry of Natural Resources and Environmental Sustainability (NRES) takes seriously the issue of pollution of the Segaliud River here, which is the main source of treated water for more than 320,000 residents in the district.
The NRES in a statement today said its Deputy Minister Datuk Seri Huang Tiong Sii attended an Engagement and Dialogue Session with residents and representatives of government agencies here to discuss the issue today.
"According to the investigation by the Department of Environment (DOE), all palm oil mills operating around Sungai Segaliud were found to comply with the effluent emission requirements set under the Environmental Quality Act (AKAS) 1974.
"The NRES and DOE have taken proactive steps by carrying out continuous monitoring to ensure that the water quality level of Sungai Segaliud remains safe and preserved for the local residents," the statement said.
The ministry also warned that strict action will be taken against any premises found to be polluting the environment, in line with the amendment to the AKAS 1974 which came into effect on July 7, 2024 and provides for fines ranging from RM5,000 to RM10 million as well as mandatory imprisonment not exceeding five years.
In line with the concept of Malaysia MADANI, NRES emphasises that the responsibility of maintaining the sustainability of rivers is a collective effort that requires close collaboration between the government, the private sector and the public.
"The ministry is confident that through the cooperation and commitment of all parties, river conservation efforts can be implemented effectively for the sake of environmental sustainability for future generations," he said. Bernama
Indonesia’s Surplus with US Soars Amid Tariff Negotiations
Jakarta. The Central Statistics Agency (BPS) reported Monday that Indonesia’s trade surplus with the US had grown amid the ongoing negotiations on Washington’s tariffs.
Indonesia is currently in talks with the US government in hopes that the latter will slash its 32 percent reciprocal tariff. After July 9, the US will begin charging nearly all its trading partners steep tariffs -- which differ by country -- as President Donald Trump wants to improve Washington’s trade imbalance. A 10 percent universal levy is already in place on imports coming to the American market.
Indonesia is giving itself a deadline of 60 days to reach an agreement on the tariffs. As Jakarta tries to appease Trump by promising to buy more American agricultural commodities, the gap in bilateral trade grows, according to the latest official statistics.
BPS data showed that Indonesia ran a $1.57 billion surplus in non-oil and gas trade with the US in February 2025. The numbers jumped to $1.98 billion the following month.
A surplus means that Indonesia’s exports to the US exceed what it imports. Electrical machinery and equipment made up the lion’s share of the surplus in March, adding $465 million to the positive trade balance. Followed by footwear ($239.7 million). Indonesia saw a $238.7 million surplus when trading animal/vegetable fats and oil, which would include its top commodity, palm oil.
“Indonesia's total surplus with the US hit $4.32 billion in the first quarter of 2025,” BPS’ head Amalia Adininggar Widyasanti told a press briefing.
The said figures, which also took into account oil and gas trade, marked quite a significant jump from the $3.61 billion surplus recorded in the same quarter in 2024. This also means that bilateral trade has become more imbalanced under the Trump 2.0 administration. The businessman-turned-politician returned to the White House on Jan. 20.
“The US -- alongside India and the Philippines -- has been the biggest contributor to our trade surplus over the past 10 years. Our highest-ever surplus with the US was $16.57 billion in 2022,” Amalia said.
BPS’ latest data only encompassed the trade figures up to the end of March. Trump announced his punitive tariff plans in early April. BPS will release April’s trade statistics next month. The statistics agency also revealed that Indonesia had run a 59-month surplus streak in overall trade since May 2020. Jakarta Globe
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India's love for oily foods triples edible oil use, leading to a surge in imports
Every Indian now consumes 24 kg edible oil a year, triple the 2001 level
ICMR recommends a 12 kg limit, but rising consumption is fuelling obesity, lifestyle diseases, and growing dependence on edible oil imports
India’s per capita edible oil consumption has nearly tripled in the last two decades, escalating the country’s dependence on imports and deepening public health concerns related to obesity and non-communicable diseases, according to a report by Mint.
From just 8.2 kg in 2001, per capita annual consumption of edible oil has soared to 23.5 kg—nearly double the limit of 12 kg recommended by the Indian Council of Medical Research (ICMR). Niti Aayog member Ramesh Chand noted that the government is working to enhance domestic production under the National Mission on Edible Oils, with a dual focus on palm oil and traditional oilseeds, Mint reported.
India remains heavily reliant on edible oil imports
Despite some gains in domestic output, India remains heavily reliant on imports. Recent data from the Solvent Extractors’ Association of India (SEA) shows the country consumes about 25–26 million tonnes of edible oil annually, while producing just 11 million tonnes locally—leaving a 60 per cent gap filled through imports. India sources palm oil from Indonesia and Malaysia, soybean oil from Argentina and Brazil, and sunflower oil from Russia and Ukraine.
India’s import of crude soybean oil more than doubled to over 1.9 million tonnes between November 2024 and March 2025, compared to the same period a year ago. The country’s overall edible oil imports stood at an estimated 16 million tonnes in 2023–24, highlighting the widening demand–supply gap.
Palm oil leads India’s edible oil consumption
According to industry figures, palm oil now accounts for over 37 per cent of India’s edible oil consumption, followed by soybean (20 per cent), mustard (14 per cent), and sunflower (13 per cent). Demand is particularly high from the HoReCa segment (hotels, restaurants, and catering), driven by a surge in out-of-home food consumption, ready-to-eat products, and bakery items.
High oil consumption flagged in big and small cities
Home-cooked and commercially prepared oil-rich diets are driving up health issues in big cities as well as Tier-II and Tier-III cities. Excessive oil intake has been linked to obesity, cardiovascular diseases, fatty liver, and type-II diabetes.
Centre launches mission to reduce edible oil imports
To curb this trend and reduce import dependence, the Centre is ramping up efforts to boost self-sufficiency. In October 2024, it approved the National Mission on Edible Oils–Oilseeds (NMEO–OS), with a budget of ₹10,103 crore. The mission aims to raise oilseed production from 39 million tonnes in 2022–23 to 69.7 million tonnes by 2030–31. It complements the ongoing National Mission on Edible Oils–Oil Palm (NMEO–OP), launched in 2021 with an outlay of ₹11,040 crore.
PM calls on nation to reduce edible oil intake
Meanwhile, Prime Minister Narendra Modi on Saturday endorsed efforts to reduce oil intake, as part of a broader push for a healthier India. Responding to a pledge from Union Health Minister JP Nadda to cut oil consumption by 10 per cent, Modi emphasised the importance of small lifestyle changes to combat obesity and lifestyle diseases, on the occasion of World Liver Day. Business Standard
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Nepal's Exports up by 65% in first nine months of current FY
Kathmandu, Apr. 21: Nepal’s export sector has witnessed a significant surge, with goods worth Rs. 188.19 billion exported in the first nine months of the current fiscal year 2024/25.
Compared to the same period last fiscal year, when exports stood at Rs. 113.94 billion, this represents a sharp increase of 65.16 per cent — a sign of healthy growth in the country’s foreign trade, according to a trade statistics of the Department of Customs made public on Sunday.
Goods worth Rs. 30.02 billion have been exported from the country in a single month of Chaitra (from March 14 to April 13, 2025). Goods worth Rs. 30 billion had been exported in the month of Falugn this year as well.
The country's export sector has recorded impressive growth even during the nine months of the 2024/25 fiscal year, reflecting a healthy performance in the country’s foreign trade.
In the meantime, Nepal's import trade has also improved during the review period of the current fiscal year. The country imported goods worth Rs. 1,309.53 billion during the first nine months. The import was Rs. 1,167.36 billion during the same period last fiscal year.
Goods worth Rs. 167.08 billion have been imported in a single month of Chaitra (from March 14 to April 13, 2025). The import trade has increased by 12.18 per cent during the review period as compared to same period last fiscal year.
With an increase in both exports and imports, the country’s foreign trade volume has reached Rs. 1,497.72 billion during the review period which is 16.89 per cent more than the previous year.
However, the trade deficit remains a challenge. It has widened by 6.96 per cent, reaching Rs. 1,121.33 billion during the review period. In the first nine months of 2023/24, the deficit was recorded at Rs. 1,053.42 billion.
Despite the rising trade deficit, substantial growth in exports reflects a positive trajectory for Nepal’s economy, particularly in boosting domestic production and international trade competitiveness.
The increment in the export of soybean oil, sunflower and tea and coffee has contributed to an increase in export trade during the review period.
The country has exported soybean oil worth Rs. 62.78 billion, soybean oil worth Rs. 9.2 billion and palm oil worth Rs. 1.83 billion during the review period.
Similarly, the country exported tea and coffee worth Rs. 3.64 billion, cardamom worth Rs. 6.26 billion during the first nine months of the current fiscal year. In the meantime, petroleum products worth Rs. 201 billion have been imported during the first seven months of the current fiscal year.
Diesel is the most imported commodity in the first seven months of the current fiscal year. Diesel worth Rs. 91.26 billion has been imported during the period.
Petrol worth Rs. 47.77 billion, aviation fuel worth Rs. 14.64 billion, liquefied petroleum gas worth Rs. 46.58 billion and kerosene worth Rs. 844 million were imported during the review period. Rising Nepal Daily
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Call for stronger collaboration to unlock oil palm biomass utilisation
KUALA LUMPUR: Industry stakeholders have urged stronger collaboration and more coherent policy direction to accelerate the use of oil palm biomass in supporting Malaysia’s low-carbon goals.
The call was made during the 5th International Oil Palm Biomass Conference 2025, held on April 14 and 15.
The conference brought together researchers, policymakers, and industry players to discuss pathways for sustainable biomass utilisation.
Chemical engineer Hong Wai Onn from the Research Institute for Sustainable Excellence and Leadership, who was one of the panellists at the conference, highlighted the underutilisation of oil palm biomass and stressed the need for better coordination among stakeholders.
“The oil palm industry produces over 100 million tonnes of dry biomass annually – including trunks, fronds, empty fruit bunches, and palm kernel shells – which are often treated as waste but hold significant untapped potential,” he said.
Hong proposed a collaborative ecosystem with four key players: government agencies, sustainability standard owners, technology providers, and biomass producers and valorisers.
“To truly transform the industry, we need synergy across these four pillars, with governments providing clear policy direction and funding support, standard owners encouraging carbon-footprint reductions, technology providers offering cost-effective solutions, and producers and valorisers committing to sustainability standards and ensuring stable supply and demand,” he explained. The StarMY
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MSPO to launch Impact Alliance platform by 3Q to boost certification value
MALAYSIAN Sustainable Palm Oil (MSPO) will establish the MSPO Impact Alliance by the third quarter (3Q) of this year, a new multi-stakeholder platform that aims to explore and test innovative models that enhance the value of certification.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the platform was established through collaboration with NGOs, accreditation bodies, financiers, technology partners and multinational fast-moving consumer goods companies to support various pilot initiatives.
The pilot initiatives supported include green financing for certified producers, digitised traceability solutions, deforestation monitoring tools and inclusive sourcing incentives for smallholders.
The minister said the idea is to move multinational companies using palm oil to adhere to the concept of sustainability.
“Therefore, our sustainability concept is certification, and we strive to be a partner so that they (the multinational companies) can continue to give us feedback.
“There must be a two-way system to perfect the process. You need two-way communication, which means both buyers and producers.
“The feedback provided will include suggestions for improvement to the (MSPO) standards strive to be a partner so that they (the multinational companies) can continue to give us feedback.
“There must be a two-way system to perfect the process. You need two-way communication, which means both buyers and producers.
“The feedback provided will include suggestions for improvement to the (MSPO) standards, which we will introduce into the system,” he told the media after the memorandum of understanding (MoU) signing ceremony between MSPO and Nestle Malaysia recently.
Johari said this Impact Alliance platform would also focus on practical solutions, including traceability for smallholders, tools for social compliance, preparation for emerging regulations like the European Union Deforestation Regulation (EUDR) and joint efforts to demonstrate impact.
He said these are some of the initiatives we are taking to engage more multinational companies operating in our country, especially those involved in food products such as confectionery, and non-food products such as personal care items and detergents. The Malaysian Reserve
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NRES Seriously Concerned With Pollution Issues In Sungai Segaliud
SANDAKAN, April 20 (Bernama) -- The Ministry of Natural Resources and Environmental Sustainability (NRES) takes seriously the issue of pollution of the Segaliud River here, which is the main source of treated water for more than 320,000 residents in the district.
The NRES in a statement today said its Deputy Minister Datuk Seri Huang Tiong Sii attended an Engagement and Dialogue Session with residents and representatives of government agencies here to discuss the issue today.
"According to the investigation by the Department of Environment (DOE), all palm oil mills operating around Sungai Segaliud were found to comply with the effluent emission requirements set under the Environmental Quality Act (AKAS) 1974.
"The NRES and DOE have taken proactive steps by carrying out continuous monitoring to ensure that the water quality level of Sungai Segaliud remains safe and preserved for the local residents," the statement said.
The ministry also warned that strict action will be taken against any premises found to be polluting the environment, in line with the amendment to the AKAS 1974 which came into effect on July 7, 2024 and provides for fines ranging from RM5,000 to RM10 million as well as mandatory imprisonment not exceeding five years.
In line with the concept of Malaysia MADANI, NRES emphasises that the responsibility of maintaining the sustainability of rivers is a collective effort that requires close collaboration between the government, the private sector and the public.
"The ministry is confident that through the cooperation and commitment of all parties, river conservation efforts can be implemented effectively for the sake of environmental sustainability for future generations," he said. Bernama
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April 19, 2025
Malaysia welcomes US tariff cut on palm oil, eyes RM21b in exports but warns against overreliance on single market
KUALA LUMPUR, April 18 — Malaysia remains optimistic and stands ready to adjust its palm oil export strategy in response to new tariff measures imposed by the United States (US), said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
He noted that Malaysia’s export tariff to the US is now set at 10 per cent for a 90-day pause period, aligning with the rate imposed on Indonesia, a significant reduction from the previous rates of 24 per cent for Malaysia and 32 per cent for Indonesia.
“The US market is not our only focus. What’s important is that we continue to produce high-quality products. International companies such as Nestlé are not merely seeking low prices, they prioritise quality to safeguard their brand reputation,” he told the media after the memorandum of understanding signing ceremony between Malaysian Sustainable Palm Oil (MSPO) and Nestlé Malaysia here, today.
Johari also disclosed that Malaysia’s exports to the US are projected to reach RM21 billion this year, with palm oil products contributing RM4.9 billion.
He added that rubber exports, including gloves, account for RM8.2 billion, furniture RM6.5 billion, and cocoa-based products such as cocoa butter RM1.6 billion.
“We must remember that the US is not Malaysia’s only market, and we cannot rely solely on one destination. Any excess export capacity can be redirected to other markets.”
As such, Johari urged Malaysian exporters to place greater emphasis on producing high-quality products at competitive prices to strengthen their global market position. Malay Mail
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Forget tariffs, focus on quality and market diversity, Johari Ghani tells exporters
KUALA LUMPUR (April 18): Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani urged Malaysian commodity exporters to expand into new markets, and focus on producing high-quality products, as US tariffs grab the headlines.
“The US is not the only market we have. It shouldn’t be a case where one country can cripple your business — you need to expand your market. Forget about the tariffs; what we need to do is continue producing quality commodities that we can export,” Johari said.
He was speaking to reporters after witnessing the signing of a memorandum of understanding between the Malaysian Sustainable Palm Oil (MSPO) certification scheme and Nestlé (Malaysia) Bhd (KL:NESTLE) on Friday.
“When you offer quality products at a fair price, people will come and buy. For example, multinational companies like Nestlé — of course they want quality products. Otherwise, it would affect their brand,” he added.
Washington has imposed a 24% tariff on Malaysian goods, including commodities, entering the US, but there is a 90-day pause while negotiations to reduce the tariff are happening.
Malaysia currently exports about RM21 billion worth of commodities to the US annually, including palm oil, rubber products such as gloves, and cocoa. Of that, palm oil-related exports contribute RM4.9 billion, while rubber products account for RM8.2 billion.
Johari also noted that there had been no disruptions in the shipment of commodities — particularly palm oil and cocoa — since the US reciprocal tariffs were announced.
Malaysia, the world’s second-largest palm oil producer, faces a 24% tariff on palm oil exports to the US, while Indonesia, the largest producer of the commodity, was hit with a higher 32% tariff.
The lower tariff could give Malaysia a competitive advantage, said Malaysian Palm Oil Board (MPOB) director general Datuk Dr Ahmad Parveez Ghulam Kadir.
He noted that Malaysia exported one million tonnes of palm oil to the US last year, and hopes demand stays strong, without being replaced by other oils with lower tariffs. The Edge
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MSPO, Nestlé ink MoU on responsible and inclusive palm oil sourcing
PETALING JAYA: Nestlé Malaysia has signed a memorandum of understanding with the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme.
In a joint statement, the parties said the collaboration reflected a shared commitment to creating a more resilient, fair, and sustainable palm oil ecosystem – where smallholders, workers, and local communities are not only included, but empowered.
Plantation and commodities minister Johari Ghani was quoted as saying that the collaboration brings together two entities with shared values and complementary strengths.
“MSPO, with its inclusive national mandate, ensures that sustainability is accessible and credible for all producers, including smallholders. Nestlé Malaysia has shown consistent leadership in responsible sourcing.
“Together, they reflect the convergence of principled certification and practical supply chain leadership. It is the kind of collaboration that strengthens MSPO’s global recognition and Malaysia’s role in sustainable palm oil,” he said in his opening address.
MSPO chairman Haris Arshad highlighted the confidence that Nestlé Malaysia has instilled among consumers and how this will positively impact the national certification framework.
“Nestlé is not only one of the world’s most trusted food and beverage brands – it is also a leader in responsible sourcing. This partnership marks a significant milestone for MSPO, and we believe it sets a new benchmark for what strategic collaboration can achieve,” he said.
Nestlé Malaysia CEO Juan Aranols said schemes like MSPO play a critical role in making sustainability more accessible and beneficial to smallholders.
“By working together, we can create inclusive models that support smallholder participation in sustainable value chains while maintaining Malaysia’s competitive edge in the global palm oil market,” Aranols said.
Key stakeholders, including industry leaders, NGOs, and international organisations, gathered for a panel discussion themed “The future of responsible sourcing: Scaling inclusion and impact” following the signing of the MoU at the Kuala Lumpur Golf & Country Club yesterday.
The panel featured MSPO CEO Hafizin Tajudin, Nestlé Southeast Asia’s global head of procurement (vegetable oils & fats) William Tan, WWF-Malaysia acting CEO Henry Chan, and Heba Abdellatif, chief of mission at International Organization for Migration Malaysia.
The panelists addressed the importance of scaling inclusive certification, empowering smallholders, and embedding fair labour practices and environmental safeguards into sourcing practices.
“This dialogue reaffirmed the MoU’s aim to align MSPO’s inclusive national framework with Nestlé’s global standards in responsible sourcing, including technical collaboration on traceability, supply chain mapping, and smallholder readiness.
“It also marks a strategic milestone in supporting Malaysia’s compliance with international regulations, such as the EU Deforestation Regulation,” the joint statement read. FMT
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Industry Stakeholders Call For Stronger Collaboration To Unlock Oil Palm Biomass Utilisation
KUALA LUMPUR, April 18 (Bernama) -- Industry stakeholders have urged stronger collaboration and more coherent policy direction to accelerate the use of oil palm biomass in supporting Malaysia’s low-carbon goals.
The call was made during the 5th International Oil Palm Biomass Conference 2025, held on April 14-15. The conference brought together researchers, policymakers, and industry players to discuss pathways for sustainable biomass utilisation.
Chemical engineer Hong Wai Onn from the Research Institute for Sustainable Excellence and Leadership (RISEL), who was one of the panellists at the conference, highlighted the underutilisation of oil palm biomass and stressed the need for better coordination among stakeholders.
“The oil palm industry produces over 100 million tonnes of dry biomass annually—including trunks, fronds, empty fruit bunches, and palm kernel shells—which are often treated as waste but hold significant untapped potential,” he said.
Hong proposed a collaborative ecosystem with four key players: government agencies, sustainability standard owners, technology providers, and biomass producers and valorisers.
“To truly transform the industry, we need synergy across these four pillars, with governments providing clear policy direction and funding support, standard owners encouraging carbon footprint reductions, technology providers offering cost-effective solutions, and producers and valorisers committing to sustainability standards and ensuring stable supply and demand,” he explained.
The panel also tackled policy gaps and regulatory bottlenecks that hinder effective biomass utilisation.
Hong recommended the establishment of an inter-ministerial biomass task force to align priorities across key sectors such as agriculture, energy, environment, industry, and science and technology. He also proposed joint funding mechanisms and shared key performance indicators (KPIs) to improve cross-agency cooperation.
“Each stakeholder plays a vital role in driving biomass valorisation. Without their collective commitment, these initiatives will struggle to gain meaningful traction,” he said.
Officiated by Deputy Minister of Plantation and Commodities Datuk Chan Foong Hin, on behalf of Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, the conference brought together industry leaders, government officials, and researchers to explore the potential of converting oil palm biomass into high-value products, reinforcing both economic development and environmental goals. Bernama Biz
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Pahang Sultan calls out illegal land grabs, demands end to decades of ‘blatant robbery of state’s assets’
KUANTAN, April 18 —The Sultan of Pahang, Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah, has called for a definitive end to the longstanding crisis of illegal land encroachment in the state, describing it as a blatant theft of public resources under the guise of agriculture.
Al-Sultan Abdullah revealed that a total of 14,494.9 hectares of state government-owned land had been unlawfully occupied and cultivated with palm oil, rubber, durian, and other crops.
More concerning, the Sultan said that 5,997.09 hectares of permanent forest reserve (HSK) land had also been encroached upon, allegedly for agricultural purposes, but in truth, it amounted to “a blatant robbery of the state’s assets”.
“This issue did not emerge overnight — it has been deeply rooted for more than four decades without my knowledge, but it is not my intention to dwell on the past or worsen the complexities.
“Instead, we must bring this chapter of illegal land encroachment to a close. Let the lessons of the past guide us forward,” he said in his royal address at the opening of the First Meeting of the Fourth Session of the 15th Pahang State Assembly at Wisma Sri Pahang today.,
Tengku Ampuan Pahang Tunku Azizah Aminah Maimunah Iskandariah was in attendance.
In line with the state government’s recent decision, Al-Sultan Abdullah firmly declared that no new approvals would be granted for any land applications involving illegally occupied areas. Malay Mail
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Palm oil farming - A transformative economic force
Saturday, 19 April, 2025, 16 : 00 PM [IST]
Dr Anupam Barik
India is at a critical point on its journey towards agricultural self-reliance. As the world’s largest importer of palm oil, the country faces a dual challenge: balancing the affordability of edible oils for consumers while reducing its heavy reliance on imports, which imposes a significant economic burden. The government’s initiatives, led by the National Mission on Edible Oils – Oil Palm (NMEO-OP) and National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds), aim to boost domestic oilseed production, empower rural communities, and promote sustainable growth, ultimately advancing the vision of Atmanirbhar Bharat in edible oils.
On October 3, 2024, the Union Cabinet approved the NMEO-Oilseeds, which will be implemented from 2024-25 to 2030-31 with a financial outlay of ?10,103 crore. The programme will focus on enhancing the production of key primary oilseed crops such as rapeseed-mustard, groundnut, soybean, sunflower, and sesame, along with improving extraction efficiency from secondary sources like cottonseed, rice bran, and tree-borne oils. It targets an increase in primary oilseed production from 39 million tonnes (2022-23) to 69.7 million tonnes by 2030-31. Together with NMEO-OP (Oil Palm), the target is to boost domestic edible oil production to 25.45 million tonnes by 2030-31, meeting around 72% of India’s projected domestic requirement of 35.5 million tonnes.
Palm Oil’s Role in India’s Economic Framework
In 2024, palm oil accounted for 38% of India’s edible oil consumption, making it an integral part of millions of people’s daily diets. However, this dependence on imports creates vulnerabilities. Currently, 57% of the country’s edible oil demand is met through imports, with palm oil alone constituting 59% of this total. This reliance costs India approximately $15 billion annually, straining the economy and exposing it to global price fluctuations. Cooking oil prices, for instance, surged by 65% over the past year due to higher import duties and market volatility.
To address these challenges, the NMEO-OP aims to transform domestic production. The mission plans to increase oil palm cultivation by 16.71 lakh hectares, with 8.50 lakh hectares expected to produce fruit by 2029-30. This is projected to yield 170 lakh tonnes of Fresh Fruit Bunches (FFBs) and boost Crude Palm Oil (CPO) production to 28.11 lakh tonnes by 2029-30.
Boosting Production, A Game-Changer for Farmers
India’s palm oil strategy is unique compared to global giants as it focuses on small-scale farmers rather than large plantations. This model holds immense potential for rural job creation and income generation. For instance, the Mega Oil Palm Plantation Drive engaged over 10,000 farmers across 12,000 hectares in 15 states from July to September 2024. With reliable yields of 4–5 tonnes per hectare annually, palm oil cultivation promises economic stability for participating farmers.
However, a key challenge is the four-year gestation period before oil palms begin delivering consistent returns. To address this, the NMEO-OP provides subsidies for saplings, fertilisers, and irrigation, along with a Viability Gap Payment (VGP) mechanism to support farmers during price dips. Promoting intercropping—growing secondary crops alongside oil palms—offers farmers interim income and improves soil health.
To ensure success, the Solvent Extractors Association of India (SEA) has recommended increasing the NMEO-OP budget from ?10,000 crore to ?25,000 crore over the next five years. This enhanced funding would strengthen farmer education, improve seed quality, modernise agricultural practices, and develop processing and storage infrastructure.
Strengthening the Value Chain
Palm oil’s economic impact extends beyond farming to a broader value chain, encompassing transportation, warehousing, and processing industries. However, the availability of discounted refined palm oil imports slows this progress. To counter this, the SEA has proposed raising import duties on refined palm oil (RBD Palmolein) from 12.5% to 15% and restricting duty-free imports of finished products such as soap noodles and stearic acid that undermine local industries. FNB News
Malaysia welcomes US tariff cut on palm oil, eyes RM21b in exports but warns against overreliance on single market
KUALA LUMPUR, April 18 — Malaysia remains optimistic and stands ready to adjust its palm oil export strategy in response to new tariff measures imposed by the United States (US), said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
He noted that Malaysia’s export tariff to the US is now set at 10 per cent for a 90-day pause period, aligning with the rate imposed on Indonesia, a significant reduction from the previous rates of 24 per cent for Malaysia and 32 per cent for Indonesia.
“The US market is not our only focus. What’s important is that we continue to produce high-quality products. International companies such as Nestlé are not merely seeking low prices, they prioritise quality to safeguard their brand reputation,” he told the media after the memorandum of understanding signing ceremony between Malaysian Sustainable Palm Oil (MSPO) and Nestlé Malaysia here, today.
Johari also disclosed that Malaysia’s exports to the US are projected to reach RM21 billion this year, with palm oil products contributing RM4.9 billion.
He added that rubber exports, including gloves, account for RM8.2 billion, furniture RM6.5 billion, and cocoa-based products such as cocoa butter RM1.6 billion.
“We must remember that the US is not Malaysia’s only market, and we cannot rely solely on one destination. Any excess export capacity can be redirected to other markets.”
As such, Johari urged Malaysian exporters to place greater emphasis on producing high-quality products at competitive prices to strengthen their global market position. Malay Mail
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Forget tariffs, focus on quality and market diversity, Johari Ghani tells exporters
KUALA LUMPUR (April 18): Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani urged Malaysian commodity exporters to expand into new markets, and focus on producing high-quality products, as US tariffs grab the headlines.
“The US is not the only market we have. It shouldn’t be a case where one country can cripple your business — you need to expand your market. Forget about the tariffs; what we need to do is continue producing quality commodities that we can export,” Johari said.
He was speaking to reporters after witnessing the signing of a memorandum of understanding between the Malaysian Sustainable Palm Oil (MSPO) certification scheme and Nestlé (Malaysia) Bhd (KL:NESTLE) on Friday.
“When you offer quality products at a fair price, people will come and buy. For example, multinational companies like Nestlé — of course they want quality products. Otherwise, it would affect their brand,” he added.
Washington has imposed a 24% tariff on Malaysian goods, including commodities, entering the US, but there is a 90-day pause while negotiations to reduce the tariff are happening.
Malaysia currently exports about RM21 billion worth of commodities to the US annually, including palm oil, rubber products such as gloves, and cocoa. Of that, palm oil-related exports contribute RM4.9 billion, while rubber products account for RM8.2 billion.
Johari also noted that there had been no disruptions in the shipment of commodities — particularly palm oil and cocoa — since the US reciprocal tariffs were announced.
Malaysia, the world’s second-largest palm oil producer, faces a 24% tariff on palm oil exports to the US, while Indonesia, the largest producer of the commodity, was hit with a higher 32% tariff.
The lower tariff could give Malaysia a competitive advantage, said Malaysian Palm Oil Board (MPOB) director general Datuk Dr Ahmad Parveez Ghulam Kadir.
He noted that Malaysia exported one million tonnes of palm oil to the US last year, and hopes demand stays strong, without being replaced by other oils with lower tariffs. The Edge
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MSPO, Nestlé ink MoU on responsible and inclusive palm oil sourcing
PETALING JAYA: Nestlé Malaysia has signed a memorandum of understanding with the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme.
In a joint statement, the parties said the collaboration reflected a shared commitment to creating a more resilient, fair, and sustainable palm oil ecosystem – where smallholders, workers, and local communities are not only included, but empowered.
Plantation and commodities minister Johari Ghani was quoted as saying that the collaboration brings together two entities with shared values and complementary strengths.
“MSPO, with its inclusive national mandate, ensures that sustainability is accessible and credible for all producers, including smallholders. Nestlé Malaysia has shown consistent leadership in responsible sourcing.
“Together, they reflect the convergence of principled certification and practical supply chain leadership. It is the kind of collaboration that strengthens MSPO’s global recognition and Malaysia’s role in sustainable palm oil,” he said in his opening address.
MSPO chairman Haris Arshad highlighted the confidence that Nestlé Malaysia has instilled among consumers and how this will positively impact the national certification framework.
“Nestlé is not only one of the world’s most trusted food and beverage brands – it is also a leader in responsible sourcing. This partnership marks a significant milestone for MSPO, and we believe it sets a new benchmark for what strategic collaboration can achieve,” he said.
Nestlé Malaysia CEO Juan Aranols said schemes like MSPO play a critical role in making sustainability more accessible and beneficial to smallholders.
“By working together, we can create inclusive models that support smallholder participation in sustainable value chains while maintaining Malaysia’s competitive edge in the global palm oil market,” Aranols said.
Key stakeholders, including industry leaders, NGOs, and international organisations, gathered for a panel discussion themed “The future of responsible sourcing: Scaling inclusion and impact” following the signing of the MoU at the Kuala Lumpur Golf & Country Club yesterday.
The panel featured MSPO CEO Hafizin Tajudin, Nestlé Southeast Asia’s global head of procurement (vegetable oils & fats) William Tan, WWF-Malaysia acting CEO Henry Chan, and Heba Abdellatif, chief of mission at International Organization for Migration Malaysia.
The panelists addressed the importance of scaling inclusive certification, empowering smallholders, and embedding fair labour practices and environmental safeguards into sourcing practices.
“This dialogue reaffirmed the MoU’s aim to align MSPO’s inclusive national framework with Nestlé’s global standards in responsible sourcing, including technical collaboration on traceability, supply chain mapping, and smallholder readiness.
“It also marks a strategic milestone in supporting Malaysia’s compliance with international regulations, such as the EU Deforestation Regulation,” the joint statement read. FMT
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Industry Stakeholders Call For Stronger Collaboration To Unlock Oil Palm Biomass Utilisation
KUALA LUMPUR, April 18 (Bernama) -- Industry stakeholders have urged stronger collaboration and more coherent policy direction to accelerate the use of oil palm biomass in supporting Malaysia’s low-carbon goals.
The call was made during the 5th International Oil Palm Biomass Conference 2025, held on April 14-15. The conference brought together researchers, policymakers, and industry players to discuss pathways for sustainable biomass utilisation.
Chemical engineer Hong Wai Onn from the Research Institute for Sustainable Excellence and Leadership (RISEL), who was one of the panellists at the conference, highlighted the underutilisation of oil palm biomass and stressed the need for better coordination among stakeholders.
“The oil palm industry produces over 100 million tonnes of dry biomass annually—including trunks, fronds, empty fruit bunches, and palm kernel shells—which are often treated as waste but hold significant untapped potential,” he said.
Hong proposed a collaborative ecosystem with four key players: government agencies, sustainability standard owners, technology providers, and biomass producers and valorisers.
“To truly transform the industry, we need synergy across these four pillars, with governments providing clear policy direction and funding support, standard owners encouraging carbon footprint reductions, technology providers offering cost-effective solutions, and producers and valorisers committing to sustainability standards and ensuring stable supply and demand,” he explained.
The panel also tackled policy gaps and regulatory bottlenecks that hinder effective biomass utilisation.
Hong recommended the establishment of an inter-ministerial biomass task force to align priorities across key sectors such as agriculture, energy, environment, industry, and science and technology. He also proposed joint funding mechanisms and shared key performance indicators (KPIs) to improve cross-agency cooperation.
“Each stakeholder plays a vital role in driving biomass valorisation. Without their collective commitment, these initiatives will struggle to gain meaningful traction,” he said.
Officiated by Deputy Minister of Plantation and Commodities Datuk Chan Foong Hin, on behalf of Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, the conference brought together industry leaders, government officials, and researchers to explore the potential of converting oil palm biomass into high-value products, reinforcing both economic development and environmental goals. Bernama Biz
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Pahang Sultan calls out illegal land grabs, demands end to decades of ‘blatant robbery of state’s assets’
KUANTAN, April 18 —The Sultan of Pahang, Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah, has called for a definitive end to the longstanding crisis of illegal land encroachment in the state, describing it as a blatant theft of public resources under the guise of agriculture.
Al-Sultan Abdullah revealed that a total of 14,494.9 hectares of state government-owned land had been unlawfully occupied and cultivated with palm oil, rubber, durian, and other crops.
More concerning, the Sultan said that 5,997.09 hectares of permanent forest reserve (HSK) land had also been encroached upon, allegedly for agricultural purposes, but in truth, it amounted to “a blatant robbery of the state’s assets”.
“This issue did not emerge overnight — it has been deeply rooted for more than four decades without my knowledge, but it is not my intention to dwell on the past or worsen the complexities.
“Instead, we must bring this chapter of illegal land encroachment to a close. Let the lessons of the past guide us forward,” he said in his royal address at the opening of the First Meeting of the Fourth Session of the 15th Pahang State Assembly at Wisma Sri Pahang today.,
Tengku Ampuan Pahang Tunku Azizah Aminah Maimunah Iskandariah was in attendance.
In line with the state government’s recent decision, Al-Sultan Abdullah firmly declared that no new approvals would be granted for any land applications involving illegally occupied areas. Malay Mail
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Palm oil farming - A transformative economic force
Saturday, 19 April, 2025, 16 : 00 PM [IST]
Dr Anupam Barik
India is at a critical point on its journey towards agricultural self-reliance. As the world’s largest importer of palm oil, the country faces a dual challenge: balancing the affordability of edible oils for consumers while reducing its heavy reliance on imports, which imposes a significant economic burden. The government’s initiatives, led by the National Mission on Edible Oils – Oil Palm (NMEO-OP) and National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds), aim to boost domestic oilseed production, empower rural communities, and promote sustainable growth, ultimately advancing the vision of Atmanirbhar Bharat in edible oils.
On October 3, 2024, the Union Cabinet approved the NMEO-Oilseeds, which will be implemented from 2024-25 to 2030-31 with a financial outlay of ?10,103 crore. The programme will focus on enhancing the production of key primary oilseed crops such as rapeseed-mustard, groundnut, soybean, sunflower, and sesame, along with improving extraction efficiency from secondary sources like cottonseed, rice bran, and tree-borne oils. It targets an increase in primary oilseed production from 39 million tonnes (2022-23) to 69.7 million tonnes by 2030-31. Together with NMEO-OP (Oil Palm), the target is to boost domestic edible oil production to 25.45 million tonnes by 2030-31, meeting around 72% of India’s projected domestic requirement of 35.5 million tonnes.
Palm Oil’s Role in India’s Economic Framework
In 2024, palm oil accounted for 38% of India’s edible oil consumption, making it an integral part of millions of people’s daily diets. However, this dependence on imports creates vulnerabilities. Currently, 57% of the country’s edible oil demand is met through imports, with palm oil alone constituting 59% of this total. This reliance costs India approximately $15 billion annually, straining the economy and exposing it to global price fluctuations. Cooking oil prices, for instance, surged by 65% over the past year due to higher import duties and market volatility.
To address these challenges, the NMEO-OP aims to transform domestic production. The mission plans to increase oil palm cultivation by 16.71 lakh hectares, with 8.50 lakh hectares expected to produce fruit by 2029-30. This is projected to yield 170 lakh tonnes of Fresh Fruit Bunches (FFBs) and boost Crude Palm Oil (CPO) production to 28.11 lakh tonnes by 2029-30.
Boosting Production, A Game-Changer for Farmers
India’s palm oil strategy is unique compared to global giants as it focuses on small-scale farmers rather than large plantations. This model holds immense potential for rural job creation and income generation. For instance, the Mega Oil Palm Plantation Drive engaged over 10,000 farmers across 12,000 hectares in 15 states from July to September 2024. With reliable yields of 4–5 tonnes per hectare annually, palm oil cultivation promises economic stability for participating farmers.
However, a key challenge is the four-year gestation period before oil palms begin delivering consistent returns. To address this, the NMEO-OP provides subsidies for saplings, fertilisers, and irrigation, along with a Viability Gap Payment (VGP) mechanism to support farmers during price dips. Promoting intercropping—growing secondary crops alongside oil palms—offers farmers interim income and improves soil health.
To ensure success, the Solvent Extractors Association of India (SEA) has recommended increasing the NMEO-OP budget from ?10,000 crore to ?25,000 crore over the next five years. This enhanced funding would strengthen farmer education, improve seed quality, modernise agricultural practices, and develop processing and storage infrastructure.
Strengthening the Value Chain
Palm oil’s economic impact extends beyond farming to a broader value chain, encompassing transportation, warehousing, and processing industries. However, the availability of discounted refined palm oil imports slows this progress. To counter this, the SEA has proposed raising import duties on refined palm oil (RBD Palmolein) from 12.5% to 15% and restricting duty-free imports of finished products such as soap noodles and stearic acid that undermine local industries. FNB News
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April 18, 2025
Indonesia raises concerns over EU deforestation law’s impact on smallholders
JAKARTA — The Indonesian government has raised serious concerns over the European Union Deforestation Regulation, or EUDR, saying it imposes a heavy administrative burden on smallholders while lacking clarity and consistency in its enforcement.
When it comes into force at the end of this year, the EUDR will ban imports into the EU market of seven forest-related commodities — soy, palm oil, coffee, cocoa, timber, rubber and beef — associated with deforestation and illegality. It will require producers and companies trading these commodities into the EU to provide detailed evidence proving they weren’t produced from land deforested since 2020.
Indonesia, as the world’s largest palm oil producer and also a major exporter of timber, coffee, cocoa and rubber, stands to be significantly affected by the EUDR. The government is working with the EU to prepare producers and traders for full compliance ahead of the EUDR’s enforcement date of Dec. 30, 2025.
However, concerns remain that the EU must address, Indonesian Deputy Foreign Minister Arief Havas Oegroseno said at a March 20 dialogue hosted by the NGO Kaoem Telapak in Jakarta.
One key issue is ambiguity in the EUDR’s due diligence requirements. Arief pointed to Article 9 of the regulation, which requires “adequately conclusive and verifiable information” to demonstrate that a product is deforestation-free. He said the term “adequately conclusive” is vague and could lead to arbitrary enforcement, creating uncertainty for operators.
Another sticking point is the requirement for operators to stay informed about various international regulations, which Arief said adds unnecessary complexity. Article 10 of the EUDR states that operators must be aware of sanctions in place by the U.N. Security Council and EU Council, and consider conclusions from EU Commission expert group meetings related to the EUDR.
These expectations are unrealistic, especially for smallholders who lack the resources to monitor international policy developments in real time, Arief said.
“Can we do that [monitor U.N. sanctions]? I certainly can’t, because I don’t have time to follow U.N.-level meetings,” he said. “Can farmers do it? Of course not.” Mongabay
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Malaysia ready to adjust palm oil export strategies amid US tariffs says Minister Johari Ghani
KUALA LUMPUR, April 18 (Bernama) -- Malaysia remains optimistic and stands ready to adjust its palm oil export strategy in response to new tariff measures imposed by the United States (US), said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
He noted that Malaysia’s export tariff to the US is now set at 10 per cent for a 90-day pause period, aligning with the rate imposed on Indonesia, a significant reduction from the previous rates of 24 per cent for Malaysia and 32 per cent for Indonesia.
“The US market is not our only focus. What’s important is that we continue to produce high-quality products. International companies such as Nestlé are not merely seeking low prices, they prioritise quality to safeguard their brand reputation,” he told the media after the memorandum of understanding signing ceremony between Malaysian Sustainable Palm Oil (MSPO) and Nestlé Malaysia here, today.
Johari also disclosed that Malaysia’s exports to the US are projected to reach RM21 billion this year, with palm oil products contributing RM4.9 billion.
He added that rubber exports, including gloves, account for RM8.2 billion, furniture RM6.5 billion, and cocoa-based products such as cocoa butter RM1.6 billion.
“We must remember that the US is not Malaysia’s only market, and we cannot rely solely on one destination. Any excess export capacity can be redirected to other markets.”
As such, Johari urged Malaysian exporters to place greater emphasis on producing high-quality products at competitive prices to strengthen their global market position.
In a related development, the minister also highlighted the government’s commitment to sustainability and inclusivity within the country’s palm oil value chain.
He emphasised that approximately 450,000 smallholders are the backbone of the sector and must not be excluded from sustainability initiatives.
"Unlike some international certification schemes that often overlook smallholders, the MSPO positions them as a key element, and the government also supports them by covering the cost of certification audits," he said.
-- BERNAMA
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Malaysia to launch MSPO Impact Alliance by 3Q to boost demand for certified palm oil ahead of EU deforestation law
KUALA LUMPUR (April 18): The MSPO Impact Alliance is expected to be launched by the third quarter of this year ahead of the implementation of the European Union Deforestation Regulation (EUDR), said Plantation Industries and Commodities Minister Datuk Seri Johari Abdul Ghani.
Spearheaded by the Malaysian Sustainable Palm Oil (MSPO) — formerly known as the Malaysian Palm Oil Certification Council — the alliance will serve as a platform to pilot key initiatives such as green financing for certified producers, digital traceability solutions, deforestation monitoring tools, and inclusive sourcing incentives for smallholders.
These efforts aim to align with the requirements of the EUDR through collaboration with non-governmental organisations, accreditation bodies, financial institutions, technology providers, and multinational fast-moving consumer goods companies, including Nestlé (Malaysia) Bhd (KL:NESTLE).
“Most of the multinational companies operating in our country manufacture a range of products — from food items like confectionery to non-food items such as personal care products and detergents,” Johari told reporters on Friday.
“Through this platform, when buyers purchase our products and identify areas they believe should be improved or included, they communicate with us, and we work on enhancing the standard. These are some of the initiatives we’re undertaking and looking to incorporate,” he said on the sidelines of a memorandum of understanding signing ceremony between MSPO and Nestlé Malaysia.
As of end-December 2024, a total of 4.89 million hectares, or 86.47% of Malaysia’s oil palm cultivation area, had been certified under the MSPO standard.
The implementation of the EUDR, which aims to ensure that goods and products placed on the EU market do not originate from recently deforested areas or contribute to forest degradation, has been extended by one year from its original deadline of Dec 30, 2024.
Meanwhile, Nestlé Malaysia said its partnership with MSPO aims to support local certification efforts, strengthen engagement with smallholders, and deepen its involvement in Malaysia’s sustainable sourcing ecosystem.
Apart from increasing market demand for MSPO-certified palm oil, Nestlé Malaysia chief executive officer Juan Aranols said the company also plans to raise its sourcing of cocoa beans domestically for its confectionery products by 30% by 2034.
“We aim for 30% of our supply to come from Malaysia. But currently, local cocoa production is still relatively small, so there’s much to be done in terms of expanding the land area allocated to cocoa and sharing best practices to improve farmers’ yields. We’re working closely with the Malaysian Cocoa Board on this,” he said.
Nestlé Malaysia currently markets the KitKat @ Dark Borneo brand, made exclusively using cocoa beans grown in Sabah and Sarawak. The beans are sourced through the Nestlé Borneo Cocoa Initiative (NBCI), which was launched in September 2023.
NBCI is a strategic partnership between Nestlé Malaysia and the Malaysian Cocoa Board to expand the company’s Farmer Connect programme to East Malaysia. The Edge
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Nigeria Plots Palm Oil Comeback with 1.5 Million Hectare Replanting Drive — Eyes Global Top 3 Spot
In a bold bid to reclaim its lost glory in the global palm oil market, Nigeria is embarking on a historic replanting drive that will see 1.5 million hectares of oil palm cultivated across 27 states over the next five years.
The ambitious rollout, driven by the Oil Palm Growers Association of Nigeria (OPGAN), forms the backbone of the newly unveiled Oil Palm Development Strategy (2024–2029) — a blueprint designed to vault Nigeria from fifth to third in global crude palm oil (CPO) production, behind only Indonesia and Malaysia.
“This is not just a replanting campaign — it’s an economic liberation movement,” said Joe Onyiuke, OPGAN President, during the launch in Abuja. “For the first time, a commodity group is leading from the front with a full-fledged strategy tailored to our unique ecosystem and national aspirations.”
Palm Oil Gap: Nigeria Consumes More Than It Produces
Despite being Africa’s biggest palm oil consumer, Nigeria’s production only meets a third of local demand. In 2018, the country consumed 3 million metric tons of fats and oil, while producing just over 1 million metric tons — a gap of nearly 2 million MT, according to the World Bank.
The United States Department of Agriculture (USDA) put Nigeria’s palm oil output at 1.4 million MT in 2022, but experts say the demand-supply mismatch continues to stifle food processing and industrial growth.
“Nigeria used to lead the world in palm oil exports in the 1960s. Now we’re importing what we should be exporting,” lamented Femi Oke, chairman, All Farmers Association of Nigeria (AFAN), Southwest zone. “This replanting campaign is a chance to turn the tide.”
Billions Flowing into Nigeria’s Palm Belt
Investors are taking notice.
From PZ Wilmar’s ₦150 billion expansion in Cross River State to BUA Group’s new 1,000 TPD refinery deal with Alfa Laval in Dubai, the palm oil sector is heating up. UNIDO and NPPAN have secured €300 million in new investments, promising jobs and technology upgrades.
Ellah Lakes Plc is set to begin palm kernel oil production in 2025, while Okitipupa Oil Palm Plc has acquired four state-of-the-art mills under its new investor, Pink Nominee Ltd, to revamp eight plantations in Ondo.
“We’re injecting capacity into every layer of the value chain — from planting to processing,” said Taiwo Adewole, MD of Okitipupa Oil Palm Plc. “With technology and scale, Nigeria will become a net exporter again.”
Why the Replanting Drive Matters Now
• Export Earnings: Indonesia earned $23 billion from palm oil exports in 2024. Nigeria wants in.
• Jobs: The plan is expected to create hundreds of thousands of direct and indirect jobs.
• FX Crisis: With oil revenue tanking, palm oil could become a new non-oil FX driver.
• Food Inflation: Boosting local supply could ease pressure on cooking oil and FMCG prices.
“This is one of the few sectors that touches food, jobs, trade and industrialization in one breath,” said Abdullahi G. Abubakar, Director, Federal Department of Agriculture. “We’re watching with optimism.” Naija 247
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Cross River: Boosting Nigeria’s Oil Palm sector with 3.5m seeds from NIFOR
Nigeria’s Oil Palm sector has got boosted with the purchase of 3.5 million sprouted nuts (oil palm seeds) for Cross River State by Governor Bassey Otu.
The oil palm seeds purchased from the Nigerian Institute for Oil Palm Research (NIFOR) are for the establishment of nurseries across the state in order to make certified high yielding tenera seedlings available to small holder farmers.
With the sprouted nuts, about 24,000 hectares of ageing plantations across the state would be replanted.
As Nigeria continues to explores opportunities in the non-oil sector, the palm oil industry has become a significant area for growth.
The Oil Palm Growers Association of Nigeria (OPGAN) plans to revamp the industry by replanting 1.5 million hectares of land over the next 5 years across the 27 major oil palm producing States in Nigeria.
This is contained in the Oil Palm Development Strategy for Nigeria 2024 – 2029 which OPGAN developed to propel Nigeria’s oil palm industry from its current 5th position to the 3rd rank in global palm oil output.
The plan will also revitalize and elevate Nigeria’s oil palm industry, positioning it as a global 3rd leader through proper planning, investments, sustainable practices, innovative technologies and inclusive growth strategies. Business DayNG
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Saraki's Oil Palm Estate in C'River Faces Revocation Threat Over Neglect
The administration of Governor Bassey Otu in Cross River State has issued a warning to Ningsong M-House Palm Oil Limited, operator of the 12,400-hectare Ayip Eku Oil Palm Estate in Akamkpa Local Government Area, threatening to revoke the title to the land.
The company is reportedly linked to former Senate President Bukola Saraki.
This ultimatum follows sustained complaints from local residents regarding the alleged neglect and dormancy of the extensive estate. Mr. Saraki had indicated his intention to invest in the plantation, situated in the Eku community of Akamkpa, early last year.
The Ayip Eku Oil Palm Company, incorporated in 1979 and located approximately 93 kilometers from Calabar, the state capital, has been the subject of contention among five villages – Akor, Okarara, Iku, Abung, and New Ndebiji – over the equitable distribution of ground rent by Wing Song M House, the core investment company of the estate. These disputes have previously led to tensions and arrests.
During a courtesy visit to Governor Otu in Calabar on January 31, 2024, Mr. Saraki had lauded the governor for fostering a favourable investment climate in the state, as conveyed by Mr. Otu’s then Chief Press Secretary, Emmanuel Ogbeche. Mr. Saraki had acknowledged the state's pragmatic economic policies, positioning it as a promising investment destination.
"We have been very encouraged by the leadership's understanding of governance and the crucial role of government in ensuring investor comfort," Mr. Saraki reportedly stated. "Our focus extends beyond the oil plantation; we are also exploring other business ventures. Our visit to the Export Processing Zone earlier reflects our intention to establish a long-term partnership with Cross River."
In response, Governor Otu expressed his satisfaction with Mr. Saraki’s investment in the state and assured him of his administration's commitment to partnering with him and other potential investors to revitalize the Cross River economy. Southern Examiner
Indonesia raises concerns over EU deforestation law’s impact on smallholders
- The Indonesian government has raised concerns over the EU Deforestation Regulation (EUDR), citing unclear due diligence rules, unrealistic expectations for smallholders, and contradictions in geolocation data requirements.
- Deputy Foreign Minister Arief Havas Oegroseno questioned the fairness of demanding geolocation data from Global South producers while EU privacy laws restrict similar data sharing within Europe.
- Arief also highlighted the EU’s inconsistent enforcement of past trade agreements like the FLEGT deal on timber, casting doubt on whether the EUDR will be applied fairly across member states.
- An EU envoy acknowledged some ambiguities but defended the EUDR’s goals, stressing that cooperation with Indonesia remains a priority despite stalled talks over data discrepancies.
JAKARTA — The Indonesian government has raised serious concerns over the European Union Deforestation Regulation, or EUDR, saying it imposes a heavy administrative burden on smallholders while lacking clarity and consistency in its enforcement.
When it comes into force at the end of this year, the EUDR will ban imports into the EU market of seven forest-related commodities — soy, palm oil, coffee, cocoa, timber, rubber and beef — associated with deforestation and illegality. It will require producers and companies trading these commodities into the EU to provide detailed evidence proving they weren’t produced from land deforested since 2020.
Indonesia, as the world’s largest palm oil producer and also a major exporter of timber, coffee, cocoa and rubber, stands to be significantly affected by the EUDR. The government is working with the EU to prepare producers and traders for full compliance ahead of the EUDR’s enforcement date of Dec. 30, 2025.
However, concerns remain that the EU must address, Indonesian Deputy Foreign Minister Arief Havas Oegroseno said at a March 20 dialogue hosted by the NGO Kaoem Telapak in Jakarta.
One key issue is ambiguity in the EUDR’s due diligence requirements. Arief pointed to Article 9 of the regulation, which requires “adequately conclusive and verifiable information” to demonstrate that a product is deforestation-free. He said the term “adequately conclusive” is vague and could lead to arbitrary enforcement, creating uncertainty for operators.
Another sticking point is the requirement for operators to stay informed about various international regulations, which Arief said adds unnecessary complexity. Article 10 of the EUDR states that operators must be aware of sanctions in place by the U.N. Security Council and EU Council, and consider conclusions from EU Commission expert group meetings related to the EUDR.
These expectations are unrealistic, especially for smallholders who lack the resources to monitor international policy developments in real time, Arief said.
“Can we do that [monitor U.N. sanctions]? I certainly can’t, because I don’t have time to follow U.N.-level meetings,” he said. “Can farmers do it? Of course not.” Mongabay
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Malaysia ready to adjust palm oil export strategies amid US tariffs says Minister Johari Ghani
KUALA LUMPUR, April 18 (Bernama) -- Malaysia remains optimistic and stands ready to adjust its palm oil export strategy in response to new tariff measures imposed by the United States (US), said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
He noted that Malaysia’s export tariff to the US is now set at 10 per cent for a 90-day pause period, aligning with the rate imposed on Indonesia, a significant reduction from the previous rates of 24 per cent for Malaysia and 32 per cent for Indonesia.
“The US market is not our only focus. What’s important is that we continue to produce high-quality products. International companies such as Nestlé are not merely seeking low prices, they prioritise quality to safeguard their brand reputation,” he told the media after the memorandum of understanding signing ceremony between Malaysian Sustainable Palm Oil (MSPO) and Nestlé Malaysia here, today.
Johari also disclosed that Malaysia’s exports to the US are projected to reach RM21 billion this year, with palm oil products contributing RM4.9 billion.
He added that rubber exports, including gloves, account for RM8.2 billion, furniture RM6.5 billion, and cocoa-based products such as cocoa butter RM1.6 billion.
“We must remember that the US is not Malaysia’s only market, and we cannot rely solely on one destination. Any excess export capacity can be redirected to other markets.”
As such, Johari urged Malaysian exporters to place greater emphasis on producing high-quality products at competitive prices to strengthen their global market position.
In a related development, the minister also highlighted the government’s commitment to sustainability and inclusivity within the country’s palm oil value chain.
He emphasised that approximately 450,000 smallholders are the backbone of the sector and must not be excluded from sustainability initiatives.
"Unlike some international certification schemes that often overlook smallholders, the MSPO positions them as a key element, and the government also supports them by covering the cost of certification audits," he said.
-- BERNAMA
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Malaysia to launch MSPO Impact Alliance by 3Q to boost demand for certified palm oil ahead of EU deforestation law
KUALA LUMPUR (April 18): The MSPO Impact Alliance is expected to be launched by the third quarter of this year ahead of the implementation of the European Union Deforestation Regulation (EUDR), said Plantation Industries and Commodities Minister Datuk Seri Johari Abdul Ghani.
Spearheaded by the Malaysian Sustainable Palm Oil (MSPO) — formerly known as the Malaysian Palm Oil Certification Council — the alliance will serve as a platform to pilot key initiatives such as green financing for certified producers, digital traceability solutions, deforestation monitoring tools, and inclusive sourcing incentives for smallholders.
These efforts aim to align with the requirements of the EUDR through collaboration with non-governmental organisations, accreditation bodies, financial institutions, technology providers, and multinational fast-moving consumer goods companies, including Nestlé (Malaysia) Bhd (KL:NESTLE).
“Most of the multinational companies operating in our country manufacture a range of products — from food items like confectionery to non-food items such as personal care products and detergents,” Johari told reporters on Friday.
“Through this platform, when buyers purchase our products and identify areas they believe should be improved or included, they communicate with us, and we work on enhancing the standard. These are some of the initiatives we’re undertaking and looking to incorporate,” he said on the sidelines of a memorandum of understanding signing ceremony between MSPO and Nestlé Malaysia.
As of end-December 2024, a total of 4.89 million hectares, or 86.47% of Malaysia’s oil palm cultivation area, had been certified under the MSPO standard.
The implementation of the EUDR, which aims to ensure that goods and products placed on the EU market do not originate from recently deforested areas or contribute to forest degradation, has been extended by one year from its original deadline of Dec 30, 2024.
Meanwhile, Nestlé Malaysia said its partnership with MSPO aims to support local certification efforts, strengthen engagement with smallholders, and deepen its involvement in Malaysia’s sustainable sourcing ecosystem.
Apart from increasing market demand for MSPO-certified palm oil, Nestlé Malaysia chief executive officer Juan Aranols said the company also plans to raise its sourcing of cocoa beans domestically for its confectionery products by 30% by 2034.
“We aim for 30% of our supply to come from Malaysia. But currently, local cocoa production is still relatively small, so there’s much to be done in terms of expanding the land area allocated to cocoa and sharing best practices to improve farmers’ yields. We’re working closely with the Malaysian Cocoa Board on this,” he said.
Nestlé Malaysia currently markets the KitKat @ Dark Borneo brand, made exclusively using cocoa beans grown in Sabah and Sarawak. The beans are sourced through the Nestlé Borneo Cocoa Initiative (NBCI), which was launched in September 2023.
NBCI is a strategic partnership between Nestlé Malaysia and the Malaysian Cocoa Board to expand the company’s Farmer Connect programme to East Malaysia. The Edge
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Nigeria Plots Palm Oil Comeback with 1.5 Million Hectare Replanting Drive — Eyes Global Top 3 Spot
In a bold bid to reclaim its lost glory in the global palm oil market, Nigeria is embarking on a historic replanting drive that will see 1.5 million hectares of oil palm cultivated across 27 states over the next five years.
The ambitious rollout, driven by the Oil Palm Growers Association of Nigeria (OPGAN), forms the backbone of the newly unveiled Oil Palm Development Strategy (2024–2029) — a blueprint designed to vault Nigeria from fifth to third in global crude palm oil (CPO) production, behind only Indonesia and Malaysia.
“This is not just a replanting campaign — it’s an economic liberation movement,” said Joe Onyiuke, OPGAN President, during the launch in Abuja. “For the first time, a commodity group is leading from the front with a full-fledged strategy tailored to our unique ecosystem and national aspirations.”
Palm Oil Gap: Nigeria Consumes More Than It Produces
Despite being Africa’s biggest palm oil consumer, Nigeria’s production only meets a third of local demand. In 2018, the country consumed 3 million metric tons of fats and oil, while producing just over 1 million metric tons — a gap of nearly 2 million MT, according to the World Bank.
The United States Department of Agriculture (USDA) put Nigeria’s palm oil output at 1.4 million MT in 2022, but experts say the demand-supply mismatch continues to stifle food processing and industrial growth.
“Nigeria used to lead the world in palm oil exports in the 1960s. Now we’re importing what we should be exporting,” lamented Femi Oke, chairman, All Farmers Association of Nigeria (AFAN), Southwest zone. “This replanting campaign is a chance to turn the tide.”
Billions Flowing into Nigeria’s Palm Belt
Investors are taking notice.
From PZ Wilmar’s ₦150 billion expansion in Cross River State to BUA Group’s new 1,000 TPD refinery deal with Alfa Laval in Dubai, the palm oil sector is heating up. UNIDO and NPPAN have secured €300 million in new investments, promising jobs and technology upgrades.
Ellah Lakes Plc is set to begin palm kernel oil production in 2025, while Okitipupa Oil Palm Plc has acquired four state-of-the-art mills under its new investor, Pink Nominee Ltd, to revamp eight plantations in Ondo.
“We’re injecting capacity into every layer of the value chain — from planting to processing,” said Taiwo Adewole, MD of Okitipupa Oil Palm Plc. “With technology and scale, Nigeria will become a net exporter again.”
Why the Replanting Drive Matters Now
• Export Earnings: Indonesia earned $23 billion from palm oil exports in 2024. Nigeria wants in.
• Jobs: The plan is expected to create hundreds of thousands of direct and indirect jobs.
• FX Crisis: With oil revenue tanking, palm oil could become a new non-oil FX driver.
• Food Inflation: Boosting local supply could ease pressure on cooking oil and FMCG prices.
“This is one of the few sectors that touches food, jobs, trade and industrialization in one breath,” said Abdullahi G. Abubakar, Director, Federal Department of Agriculture. “We’re watching with optimism.” Naija 247
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Cross River: Boosting Nigeria’s Oil Palm sector with 3.5m seeds from NIFOR
Nigeria’s Oil Palm sector has got boosted with the purchase of 3.5 million sprouted nuts (oil palm seeds) for Cross River State by Governor Bassey Otu.
The oil palm seeds purchased from the Nigerian Institute for Oil Palm Research (NIFOR) are for the establishment of nurseries across the state in order to make certified high yielding tenera seedlings available to small holder farmers.
With the sprouted nuts, about 24,000 hectares of ageing plantations across the state would be replanted.
As Nigeria continues to explores opportunities in the non-oil sector, the palm oil industry has become a significant area for growth.
The Oil Palm Growers Association of Nigeria (OPGAN) plans to revamp the industry by replanting 1.5 million hectares of land over the next 5 years across the 27 major oil palm producing States in Nigeria.
This is contained in the Oil Palm Development Strategy for Nigeria 2024 – 2029 which OPGAN developed to propel Nigeria’s oil palm industry from its current 5th position to the 3rd rank in global palm oil output.
The plan will also revitalize and elevate Nigeria’s oil palm industry, positioning it as a global 3rd leader through proper planning, investments, sustainable practices, innovative technologies and inclusive growth strategies. Business DayNG
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Saraki's Oil Palm Estate in C'River Faces Revocation Threat Over Neglect
The administration of Governor Bassey Otu in Cross River State has issued a warning to Ningsong M-House Palm Oil Limited, operator of the 12,400-hectare Ayip Eku Oil Palm Estate in Akamkpa Local Government Area, threatening to revoke the title to the land.
The company is reportedly linked to former Senate President Bukola Saraki.
This ultimatum follows sustained complaints from local residents regarding the alleged neglect and dormancy of the extensive estate. Mr. Saraki had indicated his intention to invest in the plantation, situated in the Eku community of Akamkpa, early last year.
The Ayip Eku Oil Palm Company, incorporated in 1979 and located approximately 93 kilometers from Calabar, the state capital, has been the subject of contention among five villages – Akor, Okarara, Iku, Abung, and New Ndebiji – over the equitable distribution of ground rent by Wing Song M House, the core investment company of the estate. These disputes have previously led to tensions and arrests.
During a courtesy visit to Governor Otu in Calabar on January 31, 2024, Mr. Saraki had lauded the governor for fostering a favourable investment climate in the state, as conveyed by Mr. Otu’s then Chief Press Secretary, Emmanuel Ogbeche. Mr. Saraki had acknowledged the state's pragmatic economic policies, positioning it as a promising investment destination.
"We have been very encouraged by the leadership's understanding of governance and the crucial role of government in ensuring investor comfort," Mr. Saraki reportedly stated. "Our focus extends beyond the oil plantation; we are also exploring other business ventures. Our visit to the Export Processing Zone earlier reflects our intention to establish a long-term partnership with Cross River."
In response, Governor Otu expressed his satisfaction with Mr. Saraki’s investment in the state and assured him of his administration's commitment to partnering with him and other potential investors to revitalize the Cross River economy. Southern Examiner
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April 17, 2025
EU eases deforestation law reporting for companies
BRUSSELS, April 16 (Reuters) - Companies will need less paperwork to comply with the European Union's anti-deforestation law as of December when it kicks in with changes by the European Commission.
The law will ban imports of commodities including soy, beef, cocoa and palm oil linked to forest destruction. Brussels delayed the policy's launch by a year following complaints from industries and trade partners including Brazil, Indonesia and the previous Biden administration in the United States.
Companies have to submit a due diligence statement annually, rather than for each shipment or batch of goods placed on the EU market, the Commission said in rule changes published late on Tuesday in response to industry demands.
By the end of June, the EU will categorise countries as high, standard or low risk, with imports from low-risk ones facing lighter compliance requirements.
"Our aim is to reduce administrative burden for companies while preserving the goals of the regulation," EU environment Commissioner Jessika Roswall said in a statement.
Brussels is also staving off calls from some governments and sectors, including the U.S. paper industry, for more policy changes and easier reporting obligations for firms.
Some campaigners criticised the changes as weakening the law's effectiveness.
"Reducing the reporting requirements from every batch to merely once a year is the pendulum swinging extremely from one side to the other, raising concerns about how effective monitoring and enforcement can still be," said Antonie Fountain, director of the nonprofit VOICE Network, which campaigns for cocoa sector reform. Reuters
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EU Admits to Rushing Palm Oil Deforestation Law, Simplification Underway
Jakarta. Senior European Union lawmakers admitted Wednesday that the bloc had rushed with the deforestation regulation that sparked concerns from the world’s largest palm oil producer Indonesia. Work is now underway to simplify the rules.
Bilateral ties between Indonesia and the European Union (EU) have had their challenges, ranging from sluggish trade deal negotiations to a policy regulation that might make it difficult for Jakarta to sell its top commodity palm oil to Europe.
The EU’s anti-deforestation regulation, better known as the EUDR, came into effect in June 2023. The policy aims to filter out deforestation-linked goods from the European market. It requires operators and traders to prove their products do not come from recently deforested land by providing coordinates identifying the exact location of where the commodities are produced.
At present, the EUDR only targets select commodities such as palm oil which takes the lion’s share of Indonesia’s Europe-bound exports. Palm oil-derived products will also be subject to this policy.
Since its launch, the EUDR has ignited discontent among Europe’s trading partners. Indonesia has even accused the bloc of “regulatory imperialism” while calling for some changes to the rules.
Bernd Lange, who chairs the European Parliament's International Trade Committee (INTA), is in Jakarta for some talks with the Indonesian government. Lange admitted to Jakarta-based reporters that the EU was aware of other countries’ concerns over the EUDR’s abrupt, initially planned date of entry into force. This prompted the EU to postpone the policy by another year to give its trading partners more time to prepare.
“We have to confess that it's not possible to establish legislation and tell [others] to do it while giving them just one month before the legislation should come into force. … We also need to integrate the different elements of our partners, including the mapping system,” Lange said, alluding to the geographic coordinate requirement. Jakarta Globe
---------
Simplified EU rules may not fully benefit producers, more measures needed, says Malaysian palm oil council
KUALA LUMPUR (April 17): The simplified European Union Deforestation Regulation (EUDR) still may not fully benefit producing countries, and further measures will be required, the Malaysian Palm Oil Council said on Thursday.
While the simplification package includes long-awaited clarifications, such as allowing annual due diligence statement submissions that can be passed along supply chains, there was no substantive update on the benchmarking process, the council noted in a statement.
“These simplifications may not fully benefit producing countries, as they are still required to meet the EUDR’s rigorous due diligence requirements, which takes up significant financial resources, especially for our smallholders,” said the council also known as the MPOC.
On Wednesday, the European Commission rolled out a set of revisions to simplify the EUDR aimed at easing compliance burdens, following strong complaints from the top producing nations, Malaysia and Indonesia.
A key feature of the revision is a proposal to significantly reduce the number of due diligence statements required to be submitted under the EUDR. The commission estimates the changes will reduce compliance-related administrative costs for companies by 30%.
“We believe that further measures will be necessary to achieve the commission’s 30% cost reduction target,” said MPOC chief executive officer Belvinder Kaur Sron. “To deliver meaningful savings for both producers and consumers, the EU should move towards greater alignment with existing national certification schemes that meet equivalent standards.”
Further, a broader designation of low-risk status would reduce duplication and streamline compliance, she said.
The EUDR is the EU’s signature regulation aimed at minimising deforestation. The regulation requires importers of cattle, cocoa, coffee, oil palm, rubber, soya, and wood as well as their derivatives to conduct extensive due diligence to ensure the goods entering the EU are not the result of deforestation.
Of the seven commodities, Malaysia produces palm oil, rubber, timber, and cocoa.
The MPOC said it acknowledges the commission’s efforts to ease the administrative burden on businesses while strongly supporting global initiatives to protect forests and preserve biodiversity.
“However, compliance mechanisms must reflect real differences, as a one-size-fits-all approach imposes unnecessary costs on low-risk producers, driving up prices for European consumers without delivering environmental benefits,” the council added. The Edge
---------
Is Palm Oil Bad For Your Health? Everything You Need To Know About
If you have recently stocked up on those "palm oil-free" snacks, congratulating yourself for making a healthy switch, you are not alone. Many believe that cutting one ingredient will fix their health. Unfortunately, the truth is very different and palm oil is a very good example to understand this mindset a lot better, as no other ingredient stirs up as much debate in our kitchens and conversations as Palm oil. Often, this debate conveniently shifts our focus away from more pressing issues, such as what and how we eat. While the heart of the matter is 'if palm oil is really bad for you'? Dr Dharini Krishnan, Consultant Dietician answers in negative, "When used wisely and in moderation."
Myths about Palm Oil
Many people worry that palm oil is dangerously high in saturated fat. In fact, palm oil is about 50% saturated, 40% heart-friendly monounsaturated, and 10% polyunsaturated fat. "If saturated fat still worries you, remember that coconut oil contains nearly 90% saturated fat, far higher than palm oil. A research conducted by National Library of Medicine, NIH noted that when palm oil is consumed as part of a low-fat diet, it can help maintain desirable plasma cholesterol and lipoprotein cholesterol levels.
"While the type of oil you select is important, its usage significantly impacts health outcomes," says Dr Krishnan. For instance, olive oil is an excellent choice for salad dressings. However, for frying, oils with a high smoke point are preferred. Palm oil, with a smoke point around 230°C, is particularly suitable for this purpose. Additionally, Dr Krishnan reveals that palm oil does not require hydrogenation, "a process that increases saturation and stability in oils but can create harmful trans fats."
Can Palm Oil Raise Cholesterol?
Another myth is that palm oil raises cholesterol. In fact, it's rich in tocotrienols, which are forms of Vitamin E that may help lower cholesterol. According to the , says the Dietary Guidelines for Indians-2024 by Indian Council of Medical Research-National Institute of Nutrition (ICMR-NIN), the tropical oil is also a good source of carotenoids, a source of pro-Vitamin A. It’s also affordable for most households. ETV Bharat
---------
Indonesia arrests Wilmar employee in palm oil graft probe after firm denied involvement
JAKARTA, April 16 — The Indonesian Attorney General’s Office said it has arrested an employee of global palm oil company Wilmar Group on graft charges related to corruption in obtaining export permits, a day after the firm denied its staff were being investigated.
The announcement came after a string of arrests, including four judges and two lawyers, by the Attorney General’s Office, which says the judges took 60 billion rupiah (RM15.7 million) to arrange for a favourable verdict against three companies, including Wilmar.
The office said late on Tuesday that the suspect will be held for 20 days in a Jakarta prison.
Wilmar told Reuters: “We are now assisting with investigations.”
On Monday, the company released a statement saying “investigations so far have not involved Wilmar Group or any of its employees”.
A court had last month acquitted three companies — Wilmar Group, Musim Mas Group, and North Sumatra-based Permata Hijau Group — on charges of misconduct in obtaining export permits in 2022.
When the corruption charges were first brought against the companies, prosecutors were seeking fines and payments up to 11 trillion rupiah. — Reuters/ Malay Mail
EU eases deforestation law reporting for companies
BRUSSELS, April 16 (Reuters) - Companies will need less paperwork to comply with the European Union's anti-deforestation law as of December when it kicks in with changes by the European Commission.
The law will ban imports of commodities including soy, beef, cocoa and palm oil linked to forest destruction. Brussels delayed the policy's launch by a year following complaints from industries and trade partners including Brazil, Indonesia and the previous Biden administration in the United States.
Companies have to submit a due diligence statement annually, rather than for each shipment or batch of goods placed on the EU market, the Commission said in rule changes published late on Tuesday in response to industry demands.
By the end of June, the EU will categorise countries as high, standard or low risk, with imports from low-risk ones facing lighter compliance requirements.
"Our aim is to reduce administrative burden for companies while preserving the goals of the regulation," EU environment Commissioner Jessika Roswall said in a statement.
Brussels is also staving off calls from some governments and sectors, including the U.S. paper industry, for more policy changes and easier reporting obligations for firms.
Some campaigners criticised the changes as weakening the law's effectiveness.
"Reducing the reporting requirements from every batch to merely once a year is the pendulum swinging extremely from one side to the other, raising concerns about how effective monitoring and enforcement can still be," said Antonie Fountain, director of the nonprofit VOICE Network, which campaigns for cocoa sector reform. Reuters
---------
EU Admits to Rushing Palm Oil Deforestation Law, Simplification Underway
Jakarta. Senior European Union lawmakers admitted Wednesday that the bloc had rushed with the deforestation regulation that sparked concerns from the world’s largest palm oil producer Indonesia. Work is now underway to simplify the rules.
Bilateral ties between Indonesia and the European Union (EU) have had their challenges, ranging from sluggish trade deal negotiations to a policy regulation that might make it difficult for Jakarta to sell its top commodity palm oil to Europe.
The EU’s anti-deforestation regulation, better known as the EUDR, came into effect in June 2023. The policy aims to filter out deforestation-linked goods from the European market. It requires operators and traders to prove their products do not come from recently deforested land by providing coordinates identifying the exact location of where the commodities are produced.
At present, the EUDR only targets select commodities such as palm oil which takes the lion’s share of Indonesia’s Europe-bound exports. Palm oil-derived products will also be subject to this policy.
Since its launch, the EUDR has ignited discontent among Europe’s trading partners. Indonesia has even accused the bloc of “regulatory imperialism” while calling for some changes to the rules.
Bernd Lange, who chairs the European Parliament's International Trade Committee (INTA), is in Jakarta for some talks with the Indonesian government. Lange admitted to Jakarta-based reporters that the EU was aware of other countries’ concerns over the EUDR’s abrupt, initially planned date of entry into force. This prompted the EU to postpone the policy by another year to give its trading partners more time to prepare.
“We have to confess that it's not possible to establish legislation and tell [others] to do it while giving them just one month before the legislation should come into force. … We also need to integrate the different elements of our partners, including the mapping system,” Lange said, alluding to the geographic coordinate requirement. Jakarta Globe
---------
Simplified EU rules may not fully benefit producers, more measures needed, says Malaysian palm oil council
KUALA LUMPUR (April 17): The simplified European Union Deforestation Regulation (EUDR) still may not fully benefit producing countries, and further measures will be required, the Malaysian Palm Oil Council said on Thursday.
While the simplification package includes long-awaited clarifications, such as allowing annual due diligence statement submissions that can be passed along supply chains, there was no substantive update on the benchmarking process, the council noted in a statement.
“These simplifications may not fully benefit producing countries, as they are still required to meet the EUDR’s rigorous due diligence requirements, which takes up significant financial resources, especially for our smallholders,” said the council also known as the MPOC.
On Wednesday, the European Commission rolled out a set of revisions to simplify the EUDR aimed at easing compliance burdens, following strong complaints from the top producing nations, Malaysia and Indonesia.
A key feature of the revision is a proposal to significantly reduce the number of due diligence statements required to be submitted under the EUDR. The commission estimates the changes will reduce compliance-related administrative costs for companies by 30%.
“We believe that further measures will be necessary to achieve the commission’s 30% cost reduction target,” said MPOC chief executive officer Belvinder Kaur Sron. “To deliver meaningful savings for both producers and consumers, the EU should move towards greater alignment with existing national certification schemes that meet equivalent standards.”
Further, a broader designation of low-risk status would reduce duplication and streamline compliance, she said.
The EUDR is the EU’s signature regulation aimed at minimising deforestation. The regulation requires importers of cattle, cocoa, coffee, oil palm, rubber, soya, and wood as well as their derivatives to conduct extensive due diligence to ensure the goods entering the EU are not the result of deforestation.
Of the seven commodities, Malaysia produces palm oil, rubber, timber, and cocoa.
The MPOC said it acknowledges the commission’s efforts to ease the administrative burden on businesses while strongly supporting global initiatives to protect forests and preserve biodiversity.
“However, compliance mechanisms must reflect real differences, as a one-size-fits-all approach imposes unnecessary costs on low-risk producers, driving up prices for European consumers without delivering environmental benefits,” the council added. The Edge
---------
Is Palm Oil Bad For Your Health? Everything You Need To Know About
If you have recently stocked up on those "palm oil-free" snacks, congratulating yourself for making a healthy switch, you are not alone. Many believe that cutting one ingredient will fix their health. Unfortunately, the truth is very different and palm oil is a very good example to understand this mindset a lot better, as no other ingredient stirs up as much debate in our kitchens and conversations as Palm oil. Often, this debate conveniently shifts our focus away from more pressing issues, such as what and how we eat. While the heart of the matter is 'if palm oil is really bad for you'? Dr Dharini Krishnan, Consultant Dietician answers in negative, "When used wisely and in moderation."
Myths about Palm Oil
Many people worry that palm oil is dangerously high in saturated fat. In fact, palm oil is about 50% saturated, 40% heart-friendly monounsaturated, and 10% polyunsaturated fat. "If saturated fat still worries you, remember that coconut oil contains nearly 90% saturated fat, far higher than palm oil. A research conducted by National Library of Medicine, NIH noted that when palm oil is consumed as part of a low-fat diet, it can help maintain desirable plasma cholesterol and lipoprotein cholesterol levels.
"While the type of oil you select is important, its usage significantly impacts health outcomes," says Dr Krishnan. For instance, olive oil is an excellent choice for salad dressings. However, for frying, oils with a high smoke point are preferred. Palm oil, with a smoke point around 230°C, is particularly suitable for this purpose. Additionally, Dr Krishnan reveals that palm oil does not require hydrogenation, "a process that increases saturation and stability in oils but can create harmful trans fats."
Can Palm Oil Raise Cholesterol?
Another myth is that palm oil raises cholesterol. In fact, it's rich in tocotrienols, which are forms of Vitamin E that may help lower cholesterol. According to the , says the Dietary Guidelines for Indians-2024 by Indian Council of Medical Research-National Institute of Nutrition (ICMR-NIN), the tropical oil is also a good source of carotenoids, a source of pro-Vitamin A. It’s also affordable for most households. ETV Bharat
---------
Indonesia arrests Wilmar employee in palm oil graft probe after firm denied involvement
JAKARTA, April 16 — The Indonesian Attorney General’s Office said it has arrested an employee of global palm oil company Wilmar Group on graft charges related to corruption in obtaining export permits, a day after the firm denied its staff were being investigated.
The announcement came after a string of arrests, including four judges and two lawyers, by the Attorney General’s Office, which says the judges took 60 billion rupiah (RM15.7 million) to arrange for a favourable verdict against three companies, including Wilmar.
The office said late on Tuesday that the suspect will be held for 20 days in a Jakarta prison.
Wilmar told Reuters: “We are now assisting with investigations.”
On Monday, the company released a statement saying “investigations so far have not involved Wilmar Group or any of its employees”.
A court had last month acquitted three companies — Wilmar Group, Musim Mas Group, and North Sumatra-based Permata Hijau Group — on charges of misconduct in obtaining export permits in 2022.
When the corruption charges were first brought against the companies, prosecutors were seeking fines and payments up to 11 trillion rupiah. — Reuters/ Malay Mail
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April 16, 2025
China’s Xi Jinping arrives in Malaysia as ASEAN grapples with Trump tariff threats
Xi arrives in Malaysia with a message: China’s a better partner than Trump
Chinese President Xi Jinping’s visit to Malaysia is second stop in Southeast Asia amid Trump tariffs and US trade war.
Kuala Lumpur, Malaysia – China’s President Xi Jinping has arrived in Malaysia as part of a Southeast Asian tour which is seen as delivering a personal message that Beijing is a more reliable trading partner than the United States amid a bruising trade war with Washington.
Xi arrived in the capital, Kuala Lumpur, on Tuesday evening in what is his first visit to Malaysia since 2013. He flew in from Vietnam where he had signed dozens of trade cooperation agreements in Hanoi on everything from artificial intelligence to rail development.
On touching down, Xi said that deepening “high-level strategic cooperation” was good for the common interests of both China and Malaysia, and good for peace, stability and prosperity in the region and the world”, according to the official Malaysian news agency Bernama.
Xi’s three-country tour and his “message” that Beijing is Southeast Asia’s better friend than the truculent administration of US President Donald Trump comes as many countries in the 10-member Association of Southeast Asian Nations (ASEAN) bloc are unhappy with their treatment after the US imposed huge tariffs on countries around the world. Al Jazeera
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Chinese investors boost growth in Malaysia
By Prime Sarmiento in Hong Kong
Mazlim Husin, chief commercial officer of Kuantan Port, has personally seen how Chinese investments have transformed Kuantan — the capital city of the state of Pahang, which is located on the east coast of Peninsular Malaysia.
For Mazlim, the Malaysia-China Kuantan Industrial Park, or MCKIP, has "changed the landscape of the whole industrial development in Kuantan".
The park opened in 2013 and is located in the East Coast Economic Region. It covers more than 14 square kilometers and caters to heavy, medium and light industries, and features both residential and commercial facilities.
Alliance Steel, one of the biggest steelmakers in Malaysia, is based in MCKIP. Mazlim said the company's presence in Kuantan not only encourages other companies to invest in the city, but also helps boost socioeconomic development in the community as it provides jobs and sources iron ore and other minerals from the local community.
"You can see a lot of improvement and changes around us now. (The investments) just bring people together, and we just want (Kuantan) to grow," Mazlim told China Daily.
The MCKIP and the China-Malaysia Qinzhou Industrial Park in Qinzhou, Guangxi Zhuang autonomous region, are part of the "Two Countries, Twin Parks" collaboration model between China and Malaysia. More important, this model is a concrete representation of how Chinese investments have grown in Malaysia and have helped strengthen economic ties between the two nations.
'Win-win scenario'
China is one of the largest sources of foreign investments for Malaysia. Last year, China invested 28.2 billion ringgit ($6.4 billion) in Malaysia, accounting for over 16 percent of Malaysia's 170.4 billion ringgit foreign investment revenue, according to the Malaysian Investment Development Authority, or MIDA. The amount is nearly double the 14.5 billion ringgit Chinese investors posted in 2023 and is expected to create over 20,000 new jobs.
Safwan Nizar Johari, acting investment consul for the Malaysian consulate in Guangzhou, Guangdong province, said that in the past few years, most Chinese investments have been in the EV, battery and related industries. He said the two countries celebrated the 50th anniversary of diplomatic relations in 2024, and this strong diplomatic relationship has made Chinese companies more confident about investing in Malaysia. China Daily
---------
Russia aims to expand exports to Indonesia with timber, metallurgical products - Russian deputy PM
JAKARTA. April 15 (Interfax) - Russia could increase its exports to Indonesia through timber and metallurgical products, Russian First Deputy Prime Minister Denis Manturov said during an extended meeting of the Russian-Indonesian Intergovernmental Commission on Tuesday.
Diversifying Russian exports to Indonesia is important, he said. "We're already seeing positive developments here. Alongside energy products, we're increasing exports of food and mineral fertilizers. In 2023, Russian wheat shipments resumed. We expect to begin halal-certified meat exports soon. We see opportunities to develop exports of timber and metallurgical products," he said.
Expanding and simplifying mutual market access is linked to concluding a free trade agreement between the Eurasian Economic Union (EAEU) and Indonesia, he said. On Monday, Manturov told journalists the agreement is expected to be signed by late 2025.
During the commission's meeting, Manturov also mentioned plans by Russian logistics companies to develop port infrastructure in the region. "We're paying special attention to transport cooperation, focusing on economically efficient container routes and integrated multimodal solutions. Major Russian logistics operators are also developing investment projects for port infrastructure development," he said.
The day before, FESCO announced plans for its first vessel call at Jakarta port in April as part of its Vietnam-Malaysia line. Delo Group Board Chairman Sergei Shishkarev told journalists about plans to create a dedicated palm oil import terminal in Novorossiysk.
There is also mutual interest in joint shipbuilding projects, with Russian companies ready to offer expertise in hovercraft and hydrofoil vessels, Manturov said.
"We note the mutual interest in shipbuilding cooperation projects. The key potential lies in ship component manufacturing, vessel design and construction, particularly hovercraft and hydrofoils, as well as innovative electric-powered vessels," he said. Interfax
---------
RI eyes US$800 B growth boost as Russian investors interested in strategic sectors
Coordinating Minister for the Economy, Airlangga Hartarto, said that Russian investors are interested in investing in Indonesia’s mining and energy sectors under the Daya Anagata Nusantara Investment Management Agency (BP Nusantara).
Airlangga noted that the government needs an investment of US$800 billion (Rp13,453 trillion) until 2029, so that national economic growth could reach 8 percent annually in 2028.
"Investors in Danantara certainly invest in a very strategic nature. Investors from Russia are interested in aluminum processing and energy," Airlangga said on Monday, April 14, 2025.
Airlangga cited that the government targeted Russian investors to invest in several sectors, such as cybersecurity, small modular reactors, tourism and education. He also emphasized that investment in the form of educational scholarships in Russia is a priority for the government at this time.
He said further that the main strategy for the country’s economy to grow 8 percent is investment in the downstream sector. According to him, this is important because it increases the added value of local products and deepens the domestic supply chain.
Airlangga noted several sectors that would be the government's priority to enter the downstream program, including nickel, copper, bauxite and palm oil.
"I think Russian investors can invest in the critical mineral, technology and raw material sectors," he said. Indonesia Business Post
---------
Indonesia pushes IEU-CEPA talks completion amid US tariffs
Jakarta (ANTARA) - The government is seeking the quick completion of the Indonesia-European Union Comprehensive Partnership Agreement (IEU-CEPA) to address the impact of US reciprocal tariffs, according to chairperson of the National Economic Council (DEN), Luhut Binsar Pandjaitan.
"Amid global trade uncertainty due to the new tariffs policy from the United States, we see the acceleration of the IEU-CEPA as a strategic step to diversify trading partners and reduce dependence on certain markets," he explained.
He made the remarks while receiving a visit from a delegation of the Committee on International Trade (INTA) of the European Parliament, led by Bernd Lange, in Jakarta on Tuesday.
He noted that the EU is Indonesia's main trading and investment partner and has opened access for the country to a wider global market.
The IEU-CEPA is a strategic agreement that aims to open market access, strengthen investment, and encourage sustainable economic growth.
Over the last nine years, 19 rounds of IEU-CEPA negotiations have been carried out. Indonesia is targeting to wrap up the negotiations in the first half of this year.
The agreement is important to increase Indonesia's trade with the European market, including in textiles, ready-to-wear clothing, and footwear products.
In addition to pursuing the completion of IEU-CEPA, Pandjaitan said, Indonesia is also committed to trade policy reform and deregulation, in line with President Prabowo Subianto's directive.
The Indonesian government is currently simplifying procedures and reducing economic costs to create a more efficient and competitive business climate, he explained.
Thus, a meeting with the European Parliament marks an important milestone for Indonesia in navigating the increasingly complex global trade landscape.
It also demonstrates the country's readiness to become a major actor in building fair, open, and future-oriented international economic partnerships.
"Indonesia is ready to continue to dialogue and seek mutually beneficial solutions to complete the IEU-CEPA negotiations," Pandjaitan said.
On a separate occasion, Trade Minister Budi Santoso met with the Minister Delegate for Foreign Trade and French Nationals Abroad, Laurent Saint-Martin, to discuss accelerating the completion of the IEU-CEPA.
During the meeting, Santoso sought France's support in encouraging the completion of the negotiations. Antara News
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Nigeria's Oil palm growers to replant 1.5m hectares on rising appetite
Oil palm growers are planning to replant 1.5 million hectares of land over the next five years across the 27 oil palm producing states in Nigeria.
This is targeted at leveraging the rising local and global palm oil demand and driving foreign exchange earnings through export.
The initiative, developed by the Oil Palm Growers Association of Nigeria (OPGAN), is contained in the Oil Palm Development Strategy for Nigeria 2024 – 2029.
The plan also aims to propel Nigeria’s palm oil industry from its current fifth position to third in global palm oil output.
It equally targets revitalising and elevating Nigeria’s palm oil industry to drive job creation and economic growth.
Joe Onyiuke, president, Oil Palm Growers Association of Nigeria, told BusinessDay in Abuja that this is the first time a commodity organisation is formulating a comprehensive strategic plan tailored to a subsector’s unique needs and aspirations.
“In the annals of Nigeria’s agricultural landscape, the oil palm industry stands as a cornerstone of economic prosperity and agricultural advancement. Yet, amidst its significant contributions, there exists a palpable gap in the strategic framework for its sustainable development,” he said.
He noted that the group has embarked on a journey to bridge the palm oil gap and propel the industry into a new era of growth and resilience. Business DayNG
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EU Commission takes action to simplify the implementation of the EU Deforestation Regulation
Today, the Commission is providing further simplifications and reducing the administrative burden to facilitate the implementation of the EU Deforestation Regulation (EUDR). In this context, it has published new guidance documents in view of the Regulation's entry into application at the end of this year for Member States, operators and traders. With these clarifications and simplifications, the Commission is also replying to feedback from its international partners.
With today's simplifications, the Commission is delivering on its commitment to the European Parliament and the Council, while guaranteeing regulatory certainty within the boundaries of the Regulation.
The updated guidance and Frequently Asked Questions will provide companies, EU Member States' authorities and partner countries with additional simplified measures and clarifications on how to demonstrate that their products are deforestation-free. Both documents reflect the input from Member States, partner countries, businesses, and industry. This will also guarantee harmonised implementation of the law across the EU.
The simplifications introduced will be further complemented by a Delegated Act, published also today for public consultation. The Act provides further clarifications and simplification on the scope of EUDR, addressing stakeholders' request for guidance on specific categories of products. This will also avoid unnecessary administrative costs for economic operators and authorities.
Finally, the Commission is currently finalising the country benchmarking system through an Implementing Act. It will be adopted no later than 30 June 2025 following discussions with Member States.
Together, all these measures will lead to a currently estimated 30% reduction of administrative costs and burden for companies. This will ensure a simple, fair and cost-efficient implementation of this key piece of legislation. The EUDR has already led to positive developments and action on the ground to fight deforestation, climate change and biodiversity loss.
Key simplification measures
With today's new guidance documents, the Commission has introduced a number of simplification measures, for example:
The Commission has strengthened dialogue with third countries, businesses, civil society and global partners to facilitate implementation and support preparation through dedicated meetings and online trainings since 2024 in line with our Strategic Framework for Cooperation and Engagement. EC Europa
China’s Xi Jinping arrives in Malaysia as ASEAN grapples with Trump tariff threats
Xi arrives in Malaysia with a message: China’s a better partner than Trump
Chinese President Xi Jinping’s visit to Malaysia is second stop in Southeast Asia amid Trump tariffs and US trade war.
Kuala Lumpur, Malaysia – China’s President Xi Jinping has arrived in Malaysia as part of a Southeast Asian tour which is seen as delivering a personal message that Beijing is a more reliable trading partner than the United States amid a bruising trade war with Washington.
Xi arrived in the capital, Kuala Lumpur, on Tuesday evening in what is his first visit to Malaysia since 2013. He flew in from Vietnam where he had signed dozens of trade cooperation agreements in Hanoi on everything from artificial intelligence to rail development.
On touching down, Xi said that deepening “high-level strategic cooperation” was good for the common interests of both China and Malaysia, and good for peace, stability and prosperity in the region and the world”, according to the official Malaysian news agency Bernama.
Xi’s three-country tour and his “message” that Beijing is Southeast Asia’s better friend than the truculent administration of US President Donald Trump comes as many countries in the 10-member Association of Southeast Asian Nations (ASEAN) bloc are unhappy with their treatment after the US imposed huge tariffs on countries around the world. Al Jazeera
---------
Chinese investors boost growth in Malaysia
By Prime Sarmiento in Hong Kong
Mazlim Husin, chief commercial officer of Kuantan Port, has personally seen how Chinese investments have transformed Kuantan — the capital city of the state of Pahang, which is located on the east coast of Peninsular Malaysia.
For Mazlim, the Malaysia-China Kuantan Industrial Park, or MCKIP, has "changed the landscape of the whole industrial development in Kuantan".
The park opened in 2013 and is located in the East Coast Economic Region. It covers more than 14 square kilometers and caters to heavy, medium and light industries, and features both residential and commercial facilities.
Alliance Steel, one of the biggest steelmakers in Malaysia, is based in MCKIP. Mazlim said the company's presence in Kuantan not only encourages other companies to invest in the city, but also helps boost socioeconomic development in the community as it provides jobs and sources iron ore and other minerals from the local community.
"You can see a lot of improvement and changes around us now. (The investments) just bring people together, and we just want (Kuantan) to grow," Mazlim told China Daily.
The MCKIP and the China-Malaysia Qinzhou Industrial Park in Qinzhou, Guangxi Zhuang autonomous region, are part of the "Two Countries, Twin Parks" collaboration model between China and Malaysia. More important, this model is a concrete representation of how Chinese investments have grown in Malaysia and have helped strengthen economic ties between the two nations.
'Win-win scenario'
China is one of the largest sources of foreign investments for Malaysia. Last year, China invested 28.2 billion ringgit ($6.4 billion) in Malaysia, accounting for over 16 percent of Malaysia's 170.4 billion ringgit foreign investment revenue, according to the Malaysian Investment Development Authority, or MIDA. The amount is nearly double the 14.5 billion ringgit Chinese investors posted in 2023 and is expected to create over 20,000 new jobs.
Safwan Nizar Johari, acting investment consul for the Malaysian consulate in Guangzhou, Guangdong province, said that in the past few years, most Chinese investments have been in the EV, battery and related industries. He said the two countries celebrated the 50th anniversary of diplomatic relations in 2024, and this strong diplomatic relationship has made Chinese companies more confident about investing in Malaysia. China Daily
---------
Russia aims to expand exports to Indonesia with timber, metallurgical products - Russian deputy PM
JAKARTA. April 15 (Interfax) - Russia could increase its exports to Indonesia through timber and metallurgical products, Russian First Deputy Prime Minister Denis Manturov said during an extended meeting of the Russian-Indonesian Intergovernmental Commission on Tuesday.
Diversifying Russian exports to Indonesia is important, he said. "We're already seeing positive developments here. Alongside energy products, we're increasing exports of food and mineral fertilizers. In 2023, Russian wheat shipments resumed. We expect to begin halal-certified meat exports soon. We see opportunities to develop exports of timber and metallurgical products," he said.
Expanding and simplifying mutual market access is linked to concluding a free trade agreement between the Eurasian Economic Union (EAEU) and Indonesia, he said. On Monday, Manturov told journalists the agreement is expected to be signed by late 2025.
During the commission's meeting, Manturov also mentioned plans by Russian logistics companies to develop port infrastructure in the region. "We're paying special attention to transport cooperation, focusing on economically efficient container routes and integrated multimodal solutions. Major Russian logistics operators are also developing investment projects for port infrastructure development," he said.
The day before, FESCO announced plans for its first vessel call at Jakarta port in April as part of its Vietnam-Malaysia line. Delo Group Board Chairman Sergei Shishkarev told journalists about plans to create a dedicated palm oil import terminal in Novorossiysk.
There is also mutual interest in joint shipbuilding projects, with Russian companies ready to offer expertise in hovercraft and hydrofoil vessels, Manturov said.
"We note the mutual interest in shipbuilding cooperation projects. The key potential lies in ship component manufacturing, vessel design and construction, particularly hovercraft and hydrofoils, as well as innovative electric-powered vessels," he said. Interfax
---------
RI eyes US$800 B growth boost as Russian investors interested in strategic sectors
Coordinating Minister for the Economy, Airlangga Hartarto, said that Russian investors are interested in investing in Indonesia’s mining and energy sectors under the Daya Anagata Nusantara Investment Management Agency (BP Nusantara).
Airlangga noted that the government needs an investment of US$800 billion (Rp13,453 trillion) until 2029, so that national economic growth could reach 8 percent annually in 2028.
"Investors in Danantara certainly invest in a very strategic nature. Investors from Russia are interested in aluminum processing and energy," Airlangga said on Monday, April 14, 2025.
Airlangga cited that the government targeted Russian investors to invest in several sectors, such as cybersecurity, small modular reactors, tourism and education. He also emphasized that investment in the form of educational scholarships in Russia is a priority for the government at this time.
He said further that the main strategy for the country’s economy to grow 8 percent is investment in the downstream sector. According to him, this is important because it increases the added value of local products and deepens the domestic supply chain.
Airlangga noted several sectors that would be the government's priority to enter the downstream program, including nickel, copper, bauxite and palm oil.
"I think Russian investors can invest in the critical mineral, technology and raw material sectors," he said. Indonesia Business Post
---------
Indonesia pushes IEU-CEPA talks completion amid US tariffs
Jakarta (ANTARA) - The government is seeking the quick completion of the Indonesia-European Union Comprehensive Partnership Agreement (IEU-CEPA) to address the impact of US reciprocal tariffs, according to chairperson of the National Economic Council (DEN), Luhut Binsar Pandjaitan.
"Amid global trade uncertainty due to the new tariffs policy from the United States, we see the acceleration of the IEU-CEPA as a strategic step to diversify trading partners and reduce dependence on certain markets," he explained.
He made the remarks while receiving a visit from a delegation of the Committee on International Trade (INTA) of the European Parliament, led by Bernd Lange, in Jakarta on Tuesday.
He noted that the EU is Indonesia's main trading and investment partner and has opened access for the country to a wider global market.
The IEU-CEPA is a strategic agreement that aims to open market access, strengthen investment, and encourage sustainable economic growth.
Over the last nine years, 19 rounds of IEU-CEPA negotiations have been carried out. Indonesia is targeting to wrap up the negotiations in the first half of this year.
The agreement is important to increase Indonesia's trade with the European market, including in textiles, ready-to-wear clothing, and footwear products.
In addition to pursuing the completion of IEU-CEPA, Pandjaitan said, Indonesia is also committed to trade policy reform and deregulation, in line with President Prabowo Subianto's directive.
The Indonesian government is currently simplifying procedures and reducing economic costs to create a more efficient and competitive business climate, he explained.
Thus, a meeting with the European Parliament marks an important milestone for Indonesia in navigating the increasingly complex global trade landscape.
It also demonstrates the country's readiness to become a major actor in building fair, open, and future-oriented international economic partnerships.
"Indonesia is ready to continue to dialogue and seek mutually beneficial solutions to complete the IEU-CEPA negotiations," Pandjaitan said.
On a separate occasion, Trade Minister Budi Santoso met with the Minister Delegate for Foreign Trade and French Nationals Abroad, Laurent Saint-Martin, to discuss accelerating the completion of the IEU-CEPA.
During the meeting, Santoso sought France's support in encouraging the completion of the negotiations. Antara News
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Nigeria's Oil palm growers to replant 1.5m hectares on rising appetite
Oil palm growers are planning to replant 1.5 million hectares of land over the next five years across the 27 oil palm producing states in Nigeria.
This is targeted at leveraging the rising local and global palm oil demand and driving foreign exchange earnings through export.
The initiative, developed by the Oil Palm Growers Association of Nigeria (OPGAN), is contained in the Oil Palm Development Strategy for Nigeria 2024 – 2029.
The plan also aims to propel Nigeria’s palm oil industry from its current fifth position to third in global palm oil output.
It equally targets revitalising and elevating Nigeria’s palm oil industry to drive job creation and economic growth.
Joe Onyiuke, president, Oil Palm Growers Association of Nigeria, told BusinessDay in Abuja that this is the first time a commodity organisation is formulating a comprehensive strategic plan tailored to a subsector’s unique needs and aspirations.
“In the annals of Nigeria’s agricultural landscape, the oil palm industry stands as a cornerstone of economic prosperity and agricultural advancement. Yet, amidst its significant contributions, there exists a palpable gap in the strategic framework for its sustainable development,” he said.
He noted that the group has embarked on a journey to bridge the palm oil gap and propel the industry into a new era of growth and resilience. Business DayNG
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EU Commission takes action to simplify the implementation of the EU Deforestation Regulation
Today, the Commission is providing further simplifications and reducing the administrative burden to facilitate the implementation of the EU Deforestation Regulation (EUDR). In this context, it has published new guidance documents in view of the Regulation's entry into application at the end of this year for Member States, operators and traders. With these clarifications and simplifications, the Commission is also replying to feedback from its international partners.
With today's simplifications, the Commission is delivering on its commitment to the European Parliament and the Council, while guaranteeing regulatory certainty within the boundaries of the Regulation.
The updated guidance and Frequently Asked Questions will provide companies, EU Member States' authorities and partner countries with additional simplified measures and clarifications on how to demonstrate that their products are deforestation-free. Both documents reflect the input from Member States, partner countries, businesses, and industry. This will also guarantee harmonised implementation of the law across the EU.
The simplifications introduced will be further complemented by a Delegated Act, published also today for public consultation. The Act provides further clarifications and simplification on the scope of EUDR, addressing stakeholders' request for guidance on specific categories of products. This will also avoid unnecessary administrative costs for economic operators and authorities.
Finally, the Commission is currently finalising the country benchmarking system through an Implementing Act. It will be adopted no later than 30 June 2025 following discussions with Member States.
Together, all these measures will lead to a currently estimated 30% reduction of administrative costs and burden for companies. This will ensure a simple, fair and cost-efficient implementation of this key piece of legislation. The EUDR has already led to positive developments and action on the ground to fight deforestation, climate change and biodiversity loss.
Key simplification measures
With today's new guidance documents, the Commission has introduced a number of simplification measures, for example:
- Large companies can reuse existing due diligence statements when goods, previously on the EU market, are reimported. This means that less information needs to be submitted in the IT system;
- An authorised representative can now submit a due diligence statement on behalf of members of company groups;
- Companies will be allowed to submit due diligence statements annually instead of for every shipment or batch placed on the EU market;
- Clarification of ‘ascertaining' that due diligence has been carried out, so that large companies downstream benefit from simplified obligations (a minimal legal obligation of collecting reference numbers of Due Diligence Statement (DDS) from their suppliers and using those references for their own DDS submissions now applies).
The Commission has strengthened dialogue with third countries, businesses, civil society and global partners to facilitate implementation and support preparation through dedicated meetings and online trainings since 2024 in line with our Strategic Framework for Cooperation and Engagement. EC Europa
April 15, 2025
India set to emerge as a palm oil export powerhouse
India is on the brink of a palm oil revolution, with NMEO-OP driving its transformation from an import-dependent nation to a key global exporter.
In today’s shifting global landscape, economic resilience has become essential. Governments worldwide are prioritising domestic industries to shield their economies from supply chain disruptions, price volatility, and unforeseen crises such as wars and pandemics. For India, this vision aligns with Atmanirbhar Bharat, a self-reliance initiative that not only aims to serve its population but also supports its economy.
One of the most critical areas where India is pushing for self-sufficiency is edible oil production, particularly palm oil. Edible oils and pulses dominate India’s agricultural imports, with the edible oil import bill reaching significant highs in recent years. Palm oil alone accounts for more than half of India’s edible oil imports, making it a key focus area for self-reliance. The National Mission on Edible Oils – Oil Palm (NMEO-OP) has been launched to address this dependence and boost domestic production while enhancing farmer incomes.
Since its launch in August 2021, NMEO-OP has laid out a clear roadmap for consistent and sustainable palm oil cultivation. It is part of India’s mission to boost growth in the edible oil sector and achieve self-reliance through a multifaceted strategy: integrating palm oil cultivation into India’s agricultural landscape through crop retention and diversification, expanding cultivation into suitable wastelands and rice fallow lands, and enhancing productivity through high-quality seeds, advanced farming techniques, and modern production technologies. India has already identified extensive land resources for palm oil cultivation, aiming to achieve profitability, farmer welfare, and environmental sustainability, thus incorporating the three vital ingredients that have powered the success of major palm oil producers worldwide.
India’s palm oil vision extends beyond cultivation. In its 2024 report, NITI Aayog recommends fostering collaborations with private sector players to accelerate growth in areas such as technology, marketing, seed production, and processing. The government think tank also emphasises the need for coordinated efforts among government agencies, grower cooperatives, local NGOs, and the private sector for sustainable palm oil production.
For Malaysia, NMEO-OP presents an opportunity to share its expertise in palm oil cultivation, processing, and sustainable practices with India. Palm oil is a vital economic driver for Malaysia, contributing roughly 3% to its GDP of around USD400 billion. Palm oil cultivation spans 5.6 million hectares, with large companies employing about 1 million workers and smallholders supporting 4,50,000 households. This industry generates significant income and revenue for these communities, with exports bringing in around USD20 billion annually and contributing approximately USD4 billion in tax revenue. The industry supports around 30 companies, serves 4 million customers, and produces approximately USD3.5 billion worth of products. It has played a transformative role in Malaysia’s economy and holds the same potential for India.
Another key area for improvement is of palm fruit yields, which are the highest in Malaysia, but remain comparatively low in India. This gap can be bridged through Malaysia’s advancements in seed quality and plantation techniques. Times of India
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Brazilian biodiesel demand sucking up soy oil supplies for would-be exports
In Brazil, Platts reports that increased demand for biodiesel blending domestically has soaked up a lot of surplus soybean oil that would have typically been available for export. US Foreign Agricultural Service data showed that despite a record soybean crop last season, export availability of soybean oil remained steady at 1.3 million metric tons. Oil production soared to 12 million tons on the back of the bumper crop. With lower production of palm oil in Southeast Asia, vegetable oil markets are even tighter with less Brazilian soy oil available. Biofuels Digest
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Wilmar International denies involvement in Indonesia palm oil bribery probe
It also said it has “zero tolerance for corrupt practices”.
Wilmar International Limited has denied any involvement in the ongoing bribery investigation by Indonesian authorities, following the arrest of several judges who acquitted three palm oil companies of corruption charges last month.
“To the best of our knowledge, investigations so far have not involved the Wilmar group or any of its employees, but we will assist in any investigation if we are called upon,” the group said in a statement.
The judges are reportedly being investigated for allegedly accepting bribes in connection with the acquittal of Wilmar Group, Musim Mas Group, and Permata Hijau Group, in a case concerning palm oil export permits issued in 2022.
The company defended its actions during the 2022 export restrictions, stating: “We believe we are not guilty of the charges as our actions during that period to increase the supply of palm oil to the market, despite the additional cost incurred, was intended to help the government improve domestic supplies and reduce prices.”
“We wish to reiterate that the Wilmar group has zero tolerance for corrupt practices,” it added. Singapore Business Review
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Palm Oil Industry Players Urged to Evolve, Embrace Bio-Based Economy in Palm Oil Sector
An industry expert had urged Malaysian palm oil players to prioritise industrial sustainability by embracing a bio-based economy to remain competitive in the global market.
Research Institute for Sustainable Excellence and Leadership (RISEL) founder Hong Wai Onn also emphasised the need for the palm oil sector to move beyond traditional, commodity-based practices.
“The Malaysian palm oil sector needs to evolve. We need to rethink value creation through biomass valorisation, methane recovery and circular business models that deliver environmental and economic benefits,” he said, highlighting practical examples that have already been piloted and commercialised.
Such examples include converting empty fruit bunches into biofuels and biochemicals as well as capturing methane from palm oil mill effluent for renewable energy technologies.
“These innovations are reducing emissions while creating new revenue streams that can support Malaysia’s shift towards a low-carbon economy,” he noted, stressing the fact that adopting a circular economy method could become into a powerful business strategy.
“Circular thinking that focuses on reuse, reducing waste and cross-sector collaboration enable industries to grow sustainably and profitably,” he continued.
Hong also mentioned that there is also a growing demand for technically skilled professionals who can drive green innovation. From carbon capture to biotech, he said that the industry is in need of leaders who think in systems, embrace lifelong learning and are willing to challenge the status quo.
“Looking ahead, biotechnology and industrial symbiosis are the next big economic disruptors. The future lies in replacing fossil feedstocks with bio-based alternatives and transforming industrial waste into valuable resources, a regenerative economy by design,” Hong added. SME
India set to emerge as a palm oil export powerhouse
India is on the brink of a palm oil revolution, with NMEO-OP driving its transformation from an import-dependent nation to a key global exporter.
In today’s shifting global landscape, economic resilience has become essential. Governments worldwide are prioritising domestic industries to shield their economies from supply chain disruptions, price volatility, and unforeseen crises such as wars and pandemics. For India, this vision aligns with Atmanirbhar Bharat, a self-reliance initiative that not only aims to serve its population but also supports its economy.
One of the most critical areas where India is pushing for self-sufficiency is edible oil production, particularly palm oil. Edible oils and pulses dominate India’s agricultural imports, with the edible oil import bill reaching significant highs in recent years. Palm oil alone accounts for more than half of India’s edible oil imports, making it a key focus area for self-reliance. The National Mission on Edible Oils – Oil Palm (NMEO-OP) has been launched to address this dependence and boost domestic production while enhancing farmer incomes.
Since its launch in August 2021, NMEO-OP has laid out a clear roadmap for consistent and sustainable palm oil cultivation. It is part of India’s mission to boost growth in the edible oil sector and achieve self-reliance through a multifaceted strategy: integrating palm oil cultivation into India’s agricultural landscape through crop retention and diversification, expanding cultivation into suitable wastelands and rice fallow lands, and enhancing productivity through high-quality seeds, advanced farming techniques, and modern production technologies. India has already identified extensive land resources for palm oil cultivation, aiming to achieve profitability, farmer welfare, and environmental sustainability, thus incorporating the three vital ingredients that have powered the success of major palm oil producers worldwide.
India’s palm oil vision extends beyond cultivation. In its 2024 report, NITI Aayog recommends fostering collaborations with private sector players to accelerate growth in areas such as technology, marketing, seed production, and processing. The government think tank also emphasises the need for coordinated efforts among government agencies, grower cooperatives, local NGOs, and the private sector for sustainable palm oil production.
For Malaysia, NMEO-OP presents an opportunity to share its expertise in palm oil cultivation, processing, and sustainable practices with India. Palm oil is a vital economic driver for Malaysia, contributing roughly 3% to its GDP of around USD400 billion. Palm oil cultivation spans 5.6 million hectares, with large companies employing about 1 million workers and smallholders supporting 4,50,000 households. This industry generates significant income and revenue for these communities, with exports bringing in around USD20 billion annually and contributing approximately USD4 billion in tax revenue. The industry supports around 30 companies, serves 4 million customers, and produces approximately USD3.5 billion worth of products. It has played a transformative role in Malaysia’s economy and holds the same potential for India.
Another key area for improvement is of palm fruit yields, which are the highest in Malaysia, but remain comparatively low in India. This gap can be bridged through Malaysia’s advancements in seed quality and plantation techniques. Times of India
---------
Brazilian biodiesel demand sucking up soy oil supplies for would-be exports
In Brazil, Platts reports that increased demand for biodiesel blending domestically has soaked up a lot of surplus soybean oil that would have typically been available for export. US Foreign Agricultural Service data showed that despite a record soybean crop last season, export availability of soybean oil remained steady at 1.3 million metric tons. Oil production soared to 12 million tons on the back of the bumper crop. With lower production of palm oil in Southeast Asia, vegetable oil markets are even tighter with less Brazilian soy oil available. Biofuels Digest
---------
Wilmar International denies involvement in Indonesia palm oil bribery probe
It also said it has “zero tolerance for corrupt practices”.
Wilmar International Limited has denied any involvement in the ongoing bribery investigation by Indonesian authorities, following the arrest of several judges who acquitted three palm oil companies of corruption charges last month.
“To the best of our knowledge, investigations so far have not involved the Wilmar group or any of its employees, but we will assist in any investigation if we are called upon,” the group said in a statement.
The judges are reportedly being investigated for allegedly accepting bribes in connection with the acquittal of Wilmar Group, Musim Mas Group, and Permata Hijau Group, in a case concerning palm oil export permits issued in 2022.
The company defended its actions during the 2022 export restrictions, stating: “We believe we are not guilty of the charges as our actions during that period to increase the supply of palm oil to the market, despite the additional cost incurred, was intended to help the government improve domestic supplies and reduce prices.”
“We wish to reiterate that the Wilmar group has zero tolerance for corrupt practices,” it added. Singapore Business Review
---------
Palm Oil Industry Players Urged to Evolve, Embrace Bio-Based Economy in Palm Oil Sector
An industry expert had urged Malaysian palm oil players to prioritise industrial sustainability by embracing a bio-based economy to remain competitive in the global market.
Research Institute for Sustainable Excellence and Leadership (RISEL) founder Hong Wai Onn also emphasised the need for the palm oil sector to move beyond traditional, commodity-based practices.
“The Malaysian palm oil sector needs to evolve. We need to rethink value creation through biomass valorisation, methane recovery and circular business models that deliver environmental and economic benefits,” he said, highlighting practical examples that have already been piloted and commercialised.
Such examples include converting empty fruit bunches into biofuels and biochemicals as well as capturing methane from palm oil mill effluent for renewable energy technologies.
“These innovations are reducing emissions while creating new revenue streams that can support Malaysia’s shift towards a low-carbon economy,” he noted, stressing the fact that adopting a circular economy method could become into a powerful business strategy.
“Circular thinking that focuses on reuse, reducing waste and cross-sector collaboration enable industries to grow sustainably and profitably,” he continued.
Hong also mentioned that there is also a growing demand for technically skilled professionals who can drive green innovation. From carbon capture to biotech, he said that the industry is in need of leaders who think in systems, embrace lifelong learning and are willing to challenge the status quo.
“Looking ahead, biotechnology and industrial symbiosis are the next big economic disruptors. The future lies in replacing fossil feedstocks with bio-based alternatives and transforming industrial waste into valuable resources, a regenerative economy by design,” Hong added. SME
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April 14, 2025
Beijing, Jakarta expand partnerships
Building on the success of the Jakarta-Bandung High-Speed Railway, China and Indonesia are actively exploring new areas for collaboration in various sectors, with industries such as digital economy and green development emerging as priorities, says Chinese Ambassador to Indonesia Wang Lutong.
Sunday marked the 75th anniversary of the establishment of China-Indonesia diplomatic relations.
Wang said the bilateral ties have maintained strong momentum, with mutually beneficial cooperation delivering tangible benefits to both countries and peoples, and this partnership has become a model among Global South nations.
The bilateral trade has surpassed $100 billion for many consecutive years, reaching $147.8 billion last year — more than tripling the volume from a decade ago, he said.
Wang cited the Jakarta-Bandung High-Speed Railway — first of its kind in Southeast Asia — as an example of high-quality Belt and Road cooperation. It has cut travel time between the two cities from more than three hours to just 40 minutes and has transported more than 8 million passengers.
"The success of the railway shows the strengths of high-quality infrastructure cooperation between China and Indonesia and has boosted confidence among other members of the Association of Southeast Asian Nations in partnering with China on similar projects," Wang said.
As China is deepening reform and expanding high-level opening-up, he said Chinese modernization will offer greater prospects for cooperation and shared growth dividends to Indonesia and the broader region.
Noting Chinese modernization is driven by innovation, he said China's leadership in the digital economy, artificial intelligence, and green, low-carbon development will inject new dynamic into the bilateral partnership.
"In recent years, breakthroughs in nickel smelting, power batteries and green energy have positioned Indonesia as a key global hub for stainless steel and new energy battery materials.
"These advancements have accelerated industrial upgrading, fostered sustainable economic growth, and provided a development model for other ASEAN countries."
China will continue to unleash its ultra-large market potential and facilitate greater market access for high-quality Indonesian products, such as palm oil, to support Indonesia's economic growth, he added.
People-centered projects
Beyond infrastructure and trade, Wang said China will continue to align its efforts with Indonesia's development strategies to promote more high-quality, sustainable, and people-centered projects.
"Across Indonesian society, China is widely viewed as a trustworthy partner," Wang said, recounting his interactions with Indonesian government officials, business leaders, academics, and ordinary citizens during visits to multiple provinces since assuming office in October. ECNS
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Indonesia, Egypt upgrade ties to strategic partnership on Prabowo’s Cairo visit
Jakarta: Indonesia and Egypt elevated their ties to a strategic partnership during President Prabowo Subianto’s visit to Cairo, his office said on Sunday.
Prabowo and Egypt’s President Abdel Fattah El-Sisi signed the joint declaration following their meeting in the Egyptian capital on Saturday, the Cabinet Secretariat said in a statement.
“The signing of the joint declaration is an important milestone in diplomatic ties between the two countries, signifying Indonesia and Egypt’s strong commitment to elevate bilateral ties to a strategic level,” the statement reads.
“Through this strategic partnership, Indonesia and Egypt are committed to (strengthening) cooperation in various priority fields. From politics, economy, security, defense, culture and education ties, as well as people-to-people relations.”
Subianto was in Cairo as part of his multi-day tour to the Middle East and has visited the UAE and Turkiye. This was his second time in Egypt since taking office in October.
Egypt was one of the first countries to recognize Indonesia’s independence, with the two nations establishing diplomatic ties in 1947.
Both Jakarta and Cairo believe that their “strong and historic partnership” will provide “real benefits” for the country and their peoples, the Indonesian Ministry of Foreign Affairs said in a statement.
Egypt ranks third among Indonesia’s top export destinations in the Middle East and North Africa, just after the UAE and Saudi Arabia.
With bilateral trade volume worth around $1.7 billion in 2024, Egypt is Indonesia’s top trade partner in North Africa alone. Palm oil, coffee beans, and coconut oil are some of Indonesia’s main exports to Egypt.
“President Prabowo’s visit to Egypt is very important. The strategic partnership that resulted from it is quite broad and will be beneficial for the future of both countries,” Teuku Rezasyah, an international relations expert from Padjadjaran University in West Java, told Arab News.
While trade has been a big aspect of bilateral ties, defense cooperation will likely be a focus of the strategic partnership, he said.
“The most likely area of focus will be defense cooperation … since Egypt has experience in facing different kinds of challenges at the border,” Rezasyah said, referring to Egypt’s shared land borders with a number of states, including Libya, Sudan, and the occupied Palestinian territory of Gaza.
Through the partnership, Jakarta may be seeking to learn more closely from Cairo’s experience in dealing with various issues in the Middle East, alluding to Prabowo’s ongoing trip to the region that was aimed at boosting Indonesia’s role in ending Israel’s war on Gaza. Arab News
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Indonesia arrests judges who cleared palm oil companies of graft charges
JAKARTA, April 14 (Reuters) - Indonesian authorities arrested three judges who acquitted three palm oil companies of charges of corruption in obtaining export permits, an official said on Monday, following the arrest of a local court's chief judge on bribery charges in the same matter.
A court last month acquitted the three companies - Wilmar Group (WLIL.SI), opens new tab, Musim Mas Group, and North Sumatra-based Permata Hijau Group - of charges of misconduct in obtaining export permits in 2022.
The three judges who made the ruling were arrested on Sunday night, a spokesperson for the Attorney General's Office Harli Siregar told Reuters in a text message on Monday.
On Saturday, prosecutors arrested Muhammad Arif Nuryanta, chief judge of South Jakarta district court. He was allegedly paid 60 billion rupiah ($3.57 million) to arrange for a favourable verdict by two lawyers for the companies, Siregar said in a statement, adding that $1.07 million was then allegedly paid to the three other judges.
"The bribe was given so that the judges would rule that it's not a crime," Siregar said, adding that a court clerk and two lawyers had also been arrested.
Reuters could not immediately reach the three judges or their lawyers for comment.
Siregar said the Attorney General's Office had filed an appeal against the court's March acquittal of the companies.
Indonesia's Supreme Court said the judges would be suspended and eventually fired if found guilty in court, according to Yanto, the court's spokesperson who goes by one name.
Wilmar International Limited said on Monday that investigations have not involved the Wilmar group or any of its employees "to the best of its knowledge."
"We believe we are not guilty of the charges as our actions during that period to increase the supply of palm oil to the market, despite the additional cost incurred, was intended to help the government improve domestic supplies and reduce prices," the company said.
Musim Mas Group and Permata Hijau Group did not immediately respond to a request for comments. Reuters
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More than 98% of BASF’s sourced palm kernel oil now RSPO-certified
The latest sustainability report by German chemical and biotech giant BASF shows that 98.1% of the company’s palm kernel oil (PKO) was certified by the Roundtable on Sustainable Palm Oil (RSPO) in 2024.
In addition, almost 97% of the company’s care chemicals division’s total palm oil exposure of 390,591 tonnes was traceable to the oil mill level, BASF said.
“We source 81.7% of our traceable raw material from 10 provinces in Indonesia and Malaysia and have relationships with a total of 44 provinces in the two countries, corresponding to 92% of our traceable raw material supply,” said the third edition of the division’s Responsible Sourcing Report (RSR) report, published on 31 March.
In addition, the company said it had again achieved full traceability for certified sustainable palm kernel oil (CSPKO) sourced from 380 RSPO-certified oil mills.
Looking ahead at the outlook for the CSPKO market, BASF said current forecasts indicated the sector would remain tight until 2030.
“Sustained demand exceeds supply capacity and requires a comprehensive reassessment of sourcing strategies. In addition, the upcoming European Deforestation Regulation (EUDR) is expected to exacerbate existing supply constraints,” the report said. “The anticipated regulatory framework is likely to result in a shortage of materials suitable for supply to the European market.”
The RSR report provides an update on the care chemicals division’s progress in sustainable sourcing and production of renewable based materials in 2024.
Last year, BASF entered into a strategic partnership with the non-profit organisation Solidaridad and Fedepalma, the association representing the interests of more than 6,700 oil palm growers and mills in Colombia. OFI Magazine
Beijing, Jakarta expand partnerships
Building on the success of the Jakarta-Bandung High-Speed Railway, China and Indonesia are actively exploring new areas for collaboration in various sectors, with industries such as digital economy and green development emerging as priorities, says Chinese Ambassador to Indonesia Wang Lutong.
Sunday marked the 75th anniversary of the establishment of China-Indonesia diplomatic relations.
Wang said the bilateral ties have maintained strong momentum, with mutually beneficial cooperation delivering tangible benefits to both countries and peoples, and this partnership has become a model among Global South nations.
The bilateral trade has surpassed $100 billion for many consecutive years, reaching $147.8 billion last year — more than tripling the volume from a decade ago, he said.
Wang cited the Jakarta-Bandung High-Speed Railway — first of its kind in Southeast Asia — as an example of high-quality Belt and Road cooperation. It has cut travel time between the two cities from more than three hours to just 40 minutes and has transported more than 8 million passengers.
"The success of the railway shows the strengths of high-quality infrastructure cooperation between China and Indonesia and has boosted confidence among other members of the Association of Southeast Asian Nations in partnering with China on similar projects," Wang said.
As China is deepening reform and expanding high-level opening-up, he said Chinese modernization will offer greater prospects for cooperation and shared growth dividends to Indonesia and the broader region.
Noting Chinese modernization is driven by innovation, he said China's leadership in the digital economy, artificial intelligence, and green, low-carbon development will inject new dynamic into the bilateral partnership.
"In recent years, breakthroughs in nickel smelting, power batteries and green energy have positioned Indonesia as a key global hub for stainless steel and new energy battery materials.
"These advancements have accelerated industrial upgrading, fostered sustainable economic growth, and provided a development model for other ASEAN countries."
China will continue to unleash its ultra-large market potential and facilitate greater market access for high-quality Indonesian products, such as palm oil, to support Indonesia's economic growth, he added.
People-centered projects
Beyond infrastructure and trade, Wang said China will continue to align its efforts with Indonesia's development strategies to promote more high-quality, sustainable, and people-centered projects.
"Across Indonesian society, China is widely viewed as a trustworthy partner," Wang said, recounting his interactions with Indonesian government officials, business leaders, academics, and ordinary citizens during visits to multiple provinces since assuming office in October. ECNS
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Indonesia, Egypt upgrade ties to strategic partnership on Prabowo’s Cairo visit
Jakarta: Indonesia and Egypt elevated their ties to a strategic partnership during President Prabowo Subianto’s visit to Cairo, his office said on Sunday.
Prabowo and Egypt’s President Abdel Fattah El-Sisi signed the joint declaration following their meeting in the Egyptian capital on Saturday, the Cabinet Secretariat said in a statement.
“The signing of the joint declaration is an important milestone in diplomatic ties between the two countries, signifying Indonesia and Egypt’s strong commitment to elevate bilateral ties to a strategic level,” the statement reads.
“Through this strategic partnership, Indonesia and Egypt are committed to (strengthening) cooperation in various priority fields. From politics, economy, security, defense, culture and education ties, as well as people-to-people relations.”
Subianto was in Cairo as part of his multi-day tour to the Middle East and has visited the UAE and Turkiye. This was his second time in Egypt since taking office in October.
Egypt was one of the first countries to recognize Indonesia’s independence, with the two nations establishing diplomatic ties in 1947.
Both Jakarta and Cairo believe that their “strong and historic partnership” will provide “real benefits” for the country and their peoples, the Indonesian Ministry of Foreign Affairs said in a statement.
Egypt ranks third among Indonesia’s top export destinations in the Middle East and North Africa, just after the UAE and Saudi Arabia.
With bilateral trade volume worth around $1.7 billion in 2024, Egypt is Indonesia’s top trade partner in North Africa alone. Palm oil, coffee beans, and coconut oil are some of Indonesia’s main exports to Egypt.
“President Prabowo’s visit to Egypt is very important. The strategic partnership that resulted from it is quite broad and will be beneficial for the future of both countries,” Teuku Rezasyah, an international relations expert from Padjadjaran University in West Java, told Arab News.
While trade has been a big aspect of bilateral ties, defense cooperation will likely be a focus of the strategic partnership, he said.
“The most likely area of focus will be defense cooperation … since Egypt has experience in facing different kinds of challenges at the border,” Rezasyah said, referring to Egypt’s shared land borders with a number of states, including Libya, Sudan, and the occupied Palestinian territory of Gaza.
Through the partnership, Jakarta may be seeking to learn more closely from Cairo’s experience in dealing with various issues in the Middle East, alluding to Prabowo’s ongoing trip to the region that was aimed at boosting Indonesia’s role in ending Israel’s war on Gaza. Arab News
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Indonesia arrests judges who cleared palm oil companies of graft charges
JAKARTA, April 14 (Reuters) - Indonesian authorities arrested three judges who acquitted three palm oil companies of charges of corruption in obtaining export permits, an official said on Monday, following the arrest of a local court's chief judge on bribery charges in the same matter.
A court last month acquitted the three companies - Wilmar Group (WLIL.SI), opens new tab, Musim Mas Group, and North Sumatra-based Permata Hijau Group - of charges of misconduct in obtaining export permits in 2022.
The three judges who made the ruling were arrested on Sunday night, a spokesperson for the Attorney General's Office Harli Siregar told Reuters in a text message on Monday.
On Saturday, prosecutors arrested Muhammad Arif Nuryanta, chief judge of South Jakarta district court. He was allegedly paid 60 billion rupiah ($3.57 million) to arrange for a favourable verdict by two lawyers for the companies, Siregar said in a statement, adding that $1.07 million was then allegedly paid to the three other judges.
"The bribe was given so that the judges would rule that it's not a crime," Siregar said, adding that a court clerk and two lawyers had also been arrested.
Reuters could not immediately reach the three judges or their lawyers for comment.
Siregar said the Attorney General's Office had filed an appeal against the court's March acquittal of the companies.
Indonesia's Supreme Court said the judges would be suspended and eventually fired if found guilty in court, according to Yanto, the court's spokesperson who goes by one name.
Wilmar International Limited said on Monday that investigations have not involved the Wilmar group or any of its employees "to the best of its knowledge."
"We believe we are not guilty of the charges as our actions during that period to increase the supply of palm oil to the market, despite the additional cost incurred, was intended to help the government improve domestic supplies and reduce prices," the company said.
Musim Mas Group and Permata Hijau Group did not immediately respond to a request for comments. Reuters
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More than 98% of BASF’s sourced palm kernel oil now RSPO-certified
The latest sustainability report by German chemical and biotech giant BASF shows that 98.1% of the company’s palm kernel oil (PKO) was certified by the Roundtable on Sustainable Palm Oil (RSPO) in 2024.
In addition, almost 97% of the company’s care chemicals division’s total palm oil exposure of 390,591 tonnes was traceable to the oil mill level, BASF said.
“We source 81.7% of our traceable raw material from 10 provinces in Indonesia and Malaysia and have relationships with a total of 44 provinces in the two countries, corresponding to 92% of our traceable raw material supply,” said the third edition of the division’s Responsible Sourcing Report (RSR) report, published on 31 March.
In addition, the company said it had again achieved full traceability for certified sustainable palm kernel oil (CSPKO) sourced from 380 RSPO-certified oil mills.
Looking ahead at the outlook for the CSPKO market, BASF said current forecasts indicated the sector would remain tight until 2030.
“Sustained demand exceeds supply capacity and requires a comprehensive reassessment of sourcing strategies. In addition, the upcoming European Deforestation Regulation (EUDR) is expected to exacerbate existing supply constraints,” the report said. “The anticipated regulatory framework is likely to result in a shortage of materials suitable for supply to the European market.”
The RSR report provides an update on the care chemicals division’s progress in sustainable sourcing and production of renewable based materials in 2024.
Last year, BASF entered into a strategic partnership with the non-profit organisation Solidaridad and Fedepalma, the association representing the interests of more than 6,700 oil palm growers and mills in Colombia. OFI Magazine
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April 13, 2025
Indonesia palm oil firms eye new markets as US trade war casts shadow
Indonesian palm oil companies are seeking new markets in Europe, Africa and the Middle East as they try to protect themselves from the impact of Donald Trump's trade war, a top industry executive told AFP.
Indonesia is the world's biggest producer of the edible oil -- used in making foods such as cakes, chocolate, and margarine as well as cosmetics, soap and shampoo -- and accounts for more than half the global supply.
But the 32 percent tariffs imposed on the country make it one of Asia's hardest hit by the US president's sweeping measures that have sent shockwaves around the world.
Palm oil is one of Indonesia's biggest exports to the United States, and while Trump has announced a 90-day pause on implementing the levies, producers say the uncertainty is forcing them to look elsewhere to earn their keep.
"It actually gives time for us to negotiate... so products can still enter there. I think this is very good," said Eddy Martono, chairman of the Indonesian Palm Oil Association (GAPKI) on Thursday.
However, he warned that market diversification "must still be done" to avoid the impact of the tariffs if they come into force later in the year, adding that firms would look to Africa -- specifically top importer Egypt -- the Middle East, Central Asia and Eastern Europe.
"We should not just depend on traditional markets. We will continue to do it. We have to do that," he said.
Exports of palm oil products to the United States have steadily grown in recent years, with Indonesia shipping 2.5 million tons in 2023, compared with 1.5 million tons in 2020, according to GAPKI data. Yahoo Finance
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US Imports Of Palm Oil
By NICHOLAS SHEARMAN
April 12, 2025, 9:00 pm EDT
Indonesia tops other palm oil producing countries exporting to the US. Barron's
Indonesia palm oil firms eye new markets as US trade war casts shadow
Indonesian palm oil companies are seeking new markets in Europe, Africa and the Middle East as they try to protect themselves from the impact of Donald Trump's trade war, a top industry executive told AFP.
Indonesia is the world's biggest producer of the edible oil -- used in making foods such as cakes, chocolate, and margarine as well as cosmetics, soap and shampoo -- and accounts for more than half the global supply.
But the 32 percent tariffs imposed on the country make it one of Asia's hardest hit by the US president's sweeping measures that have sent shockwaves around the world.
Palm oil is one of Indonesia's biggest exports to the United States, and while Trump has announced a 90-day pause on implementing the levies, producers say the uncertainty is forcing them to look elsewhere to earn their keep.
"It actually gives time for us to negotiate... so products can still enter there. I think this is very good," said Eddy Martono, chairman of the Indonesian Palm Oil Association (GAPKI) on Thursday.
However, he warned that market diversification "must still be done" to avoid the impact of the tariffs if they come into force later in the year, adding that firms would look to Africa -- specifically top importer Egypt -- the Middle East, Central Asia and Eastern Europe.
"We should not just depend on traditional markets. We will continue to do it. We have to do that," he said.
Exports of palm oil products to the United States have steadily grown in recent years, with Indonesia shipping 2.5 million tons in 2023, compared with 1.5 million tons in 2020, according to GAPKI data. Yahoo Finance
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US Imports Of Palm Oil
By NICHOLAS SHEARMAN
April 12, 2025, 9:00 pm EDT
Indonesia tops other palm oil producing countries exporting to the US. Barron's
Malaysia to champion smallholder inclusion, sustainable trade at inaugural FACT 2025 Forum
PUTRAJAYA (April 13): Malaysia is set to take centre stage in advancing sustainable and inclusive trade practices as it co-hosts the Forest, Agriculture, Commodity and Trade (FACT) Forum for the first time, with a strong focus on smallholders and sustainable certification, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
Speaking to Bernama ahead of the four-day event beginning April 14, he said Malaysia aims to use the platform to underscore its commitment to balancing economic growth with environmental responsibility, while empowering smallholders to thrive in an increasingly regulated global market
Johari also said the country’s role as co-chair of the FACT Forum aligns with the National Agricommodity Policy 2021–2030 (DAKN2030), which integrates sustainability, inclusivity and prosperity.
Malaysia, he said, wants to send a clear signal that the country is serious about driving sustainable trade globally, while including and safeguarding the well-being of its people, particularly smallholders.
Smallholders play a crucial role in Malaysia’s agricommodity landscape, with over 1.5 million hectares, or 27%, of oil palm plantations under their care.
“Smallholders are the backbone of our agricommodity sectors. Our goal is to empower them with the tools, standards, transparency and market access they need to thrive sustainably and competitively,” he said.
Malaysia puts MSPO 2.0 in global spotlight
Johari said that amid increasing scrutiny from international markets, particularly the European Union (EU), Malaysia is strengthening its position through initiatives, such as the Malaysian Sustainable Palm Oil (MSPO) 2.0 certification scheme.
We are enhancing transparency and sustainability through MSPO 2.0, which has now been recognised in the International Trade Centre (ITC) Standards Map — the world’s largest database of sustainability standards.
“This demonstrates our compliance with global requirements and gives greater confidence in the credibility of our efforts. We are committed to meeting international expectations while ensuring fairness to smallholders by facilitating their access to global markets,” the minister emphasised.
He said the FACT Forum would be a timely platform to showcase MSPO 2.0 as a robust, internationally recognised standard that supports smallholders in adopting good agricultural practices and complying with traceability and sustainability requirements — including the EU Deforestation Regulation (EUDR).
“MSPO 2.0 is not just a certification, it’s a passport to global trade. It empowers smallholders with good agricultural practices, quality planting materials, and traceability systems that can increase yield and competitiveness — all while protecting our forests,” he shared.
The minister revealed that MSPO 2.0 will be a central topic in both bilateral and multilateral discussions throughout the FACT Forum.
“We will highlight how MSPO covers the full sustainability spectrum, and we will advocate for international recognition, especially as it is already acknowledged in the ITC Standards Map,” Johari said.
FACT Forum 2025 marks Malaysia’s leadership in sustainable agricommodity dialogue
The ministry will be hosting the FACT Forum 2025 from April 14 to 17, under the theme “Enhancing Support for Smallholder Farmers”, at the Pulse Grande Hotel & Marina, Putrajaya.
Among key highlights of the event will be a bilateral meeting between the Malaysian and UK governments, an official opening ceremony, and a field trip to Pulau Carey to engage with MSPO-certified smallholders, including the Orang Asli Mah Meri community.
The forum will also feature ongoing discussions and knowledge exchange sessions throughout the event.
The upcoming FACT Forum 2025 will build on progress made in previous dialogues, particularly the 2024 Forum in Bali, to enhance support for smallholder farmers in transitioning to sustainable and resilient production systems.
As a crucial milestone on the road to COP30, the forum will focus on unlocking access to finance, strengthening land tenure security, and integrating smallholder farmers into global markets.
It will also emphasise gender equity and the inclusion of Indigenous Peoples (Orang Asli) and other marginalised groups. This will be achieved by adopting an integrated approach across all thematic areas of work within the FACT Dialogue, to strengthen impact, enhance cooperation to avoid duplication of efforts, and ensure that smallholder farmers take a central place in the global transition towards sustainable food systems.
Key momentum will come from the transition of FACT co-chairs, with Malaysia formally taking up its co-chair role in an official handover from the government of Indonesia, with high-level ministerial participation from Malaysia, the United Kingdom, and Indonesia.
The FACT Dialogue, launched during COP26 in Glasgow in 2021, serves as a voluntary platform to foster international cooperation on sustainable supply chains.
It contrasts with the European Union Deforestation Regulation (EUDR), which imposes mandatory legal requirements on companies to prove that their products are deforestation-free.
There are 28 member countries of the FACT Dialogue, consisting of 14 producing countries including Malaysia, Indonesia, Brazil, Cameroon, Colombia, Ghana, Liberia and Nigeria, and 14 consuming countries namely the United Kingdom, Belgium, Canada, Denmark, France, Italy, Germany, the European Union, the United States and Japan.
While the EUDR adopts a regulatory and compliance-driven approach, FACT promotes collaborative dialogue and shared commitment — especially among developing and producing nations. The Edge
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Indonesia’s deforestation crisis: Can a just transition save its rainforests?
Opinion Piece By Evi Petsangouraki | 12/04/2025
The Indonesian government’s plan to clear an area of rainforest the size of Belgium for sugarcane-based bioethanol and food crops has sparked fierce backlash from Indigenous communities and environmental groups. The project, billed as a solution to food insecurity and renewable energy needs, threatens to accelerate deforestation in one of the world’s most biodiverse regions.
As Indonesia prepares to clear 3.2 million hectares of rainforest for bioethanol production, new data reveals a troubling paradox: the plan could release more carbon in 5 years than the bioethanol would save in 50. For policymakers weighing food security against climate commitments, here’s what the evidence shows—and what smarter alternatives exist.
The fatal flaws in current policy Read opinion at diem25
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New ISPO Policy Signed by Prabowo: Broader Scope, Clearer Rules for Palm Oil Industry
PALMOILMAGAZINE, JAKARTA – After a long wait, the revised Indonesia Sustainable Palm Oil (ISPO) policy has finally been signed into effect. On March 19, 2025, President Prabowo Subianto officially enacted Presidential Regulation No. 16 of 2025, marking a new chapter for the palm oil sector.
For industry players, this is both a breath of fresh air and a new challenge. The updated regulation not only replaces Presidential Regulation No. 44 of 2020 but also introduces significant reforms and expansion.
As reviewed by Palmoilmagazine.com on Friday (April 11, 2025), the new ISPO policy significantly broadens its scope. Previously limited to palm oil plantations, the certification now extends to three main sectors: palm oil plantations, downstream palm oil industries, and palm-based bioenergy businesses. In other words, the entire palm oil supply chain—from farms to refineries to biofuel—must now comply with Indonesia’s sustainability standards.
Importantly, the regulation includes firm enforcement measures. Article 5 outlines penalties for non-compliance, including written warnings, administrative fines, and temporary suspension of business operations. The authority to impose sanctions will depend on the sector—either the Ministry of Agriculture, Industry, or Energy.
The regulation also addresses certification costs. Acknowledging the financial disparity among stakeholders, Article 16 stipulates that ISPO certification costs are to be borne by businesses. However, for smallholder farmers, alternative funding sources are available—including the palm oil fund, the national budget (APBN), regional budgets (APBD), and other legal sources—ensuring inclusivity and support for small-scale growers.
Finally, Article 28 officially revokes the previous ISPO regulation, Presidential Regulation No. 44 of 2020, although existing implementing rules may still apply as long as they do not contradict the new provisions.
This latest ISPO revision is more than just a technical update. It’s part of a broader national narrative—Indonesia’s commitment to proving that palm oil, if managed responsibly, can be a partner in sustainability rather than an environmental threat. With Prabowo’s signature, that vision is now officially set in motion
This article has been published on palmoilmagazine.com with the title © Palm Oil Magazine - New ISPO Policy Signed by Prabowo: Broader Scope, Clearer Rules for Palm Oil Industry - Palmoilmagazine.com
Click to read: https://www.palmoilmagazine.com/ispo/2025/04/13/new-ispo-policy-signed-by-prabowo-broader-scope-clearer-rules-for-palm-oil-industry/
PUTRAJAYA (April 13): Malaysia is set to take centre stage in advancing sustainable and inclusive trade practices as it co-hosts the Forest, Agriculture, Commodity and Trade (FACT) Forum for the first time, with a strong focus on smallholders and sustainable certification, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
Speaking to Bernama ahead of the four-day event beginning April 14, he said Malaysia aims to use the platform to underscore its commitment to balancing economic growth with environmental responsibility, while empowering smallholders to thrive in an increasingly regulated global market
Johari also said the country’s role as co-chair of the FACT Forum aligns with the National Agricommodity Policy 2021–2030 (DAKN2030), which integrates sustainability, inclusivity and prosperity.
Malaysia, he said, wants to send a clear signal that the country is serious about driving sustainable trade globally, while including and safeguarding the well-being of its people, particularly smallholders.
Smallholders play a crucial role in Malaysia’s agricommodity landscape, with over 1.5 million hectares, or 27%, of oil palm plantations under their care.
“Smallholders are the backbone of our agricommodity sectors. Our goal is to empower them with the tools, standards, transparency and market access they need to thrive sustainably and competitively,” he said.
Malaysia puts MSPO 2.0 in global spotlight
Johari said that amid increasing scrutiny from international markets, particularly the European Union (EU), Malaysia is strengthening its position through initiatives, such as the Malaysian Sustainable Palm Oil (MSPO) 2.0 certification scheme.
We are enhancing transparency and sustainability through MSPO 2.0, which has now been recognised in the International Trade Centre (ITC) Standards Map — the world’s largest database of sustainability standards.
“This demonstrates our compliance with global requirements and gives greater confidence in the credibility of our efforts. We are committed to meeting international expectations while ensuring fairness to smallholders by facilitating their access to global markets,” the minister emphasised.
He said the FACT Forum would be a timely platform to showcase MSPO 2.0 as a robust, internationally recognised standard that supports smallholders in adopting good agricultural practices and complying with traceability and sustainability requirements — including the EU Deforestation Regulation (EUDR).
“MSPO 2.0 is not just a certification, it’s a passport to global trade. It empowers smallholders with good agricultural practices, quality planting materials, and traceability systems that can increase yield and competitiveness — all while protecting our forests,” he shared.
The minister revealed that MSPO 2.0 will be a central topic in both bilateral and multilateral discussions throughout the FACT Forum.
“We will highlight how MSPO covers the full sustainability spectrum, and we will advocate for international recognition, especially as it is already acknowledged in the ITC Standards Map,” Johari said.
FACT Forum 2025 marks Malaysia’s leadership in sustainable agricommodity dialogue
The ministry will be hosting the FACT Forum 2025 from April 14 to 17, under the theme “Enhancing Support for Smallholder Farmers”, at the Pulse Grande Hotel & Marina, Putrajaya.
Among key highlights of the event will be a bilateral meeting between the Malaysian and UK governments, an official opening ceremony, and a field trip to Pulau Carey to engage with MSPO-certified smallholders, including the Orang Asli Mah Meri community.
The forum will also feature ongoing discussions and knowledge exchange sessions throughout the event.
The upcoming FACT Forum 2025 will build on progress made in previous dialogues, particularly the 2024 Forum in Bali, to enhance support for smallholder farmers in transitioning to sustainable and resilient production systems.
As a crucial milestone on the road to COP30, the forum will focus on unlocking access to finance, strengthening land tenure security, and integrating smallholder farmers into global markets.
It will also emphasise gender equity and the inclusion of Indigenous Peoples (Orang Asli) and other marginalised groups. This will be achieved by adopting an integrated approach across all thematic areas of work within the FACT Dialogue, to strengthen impact, enhance cooperation to avoid duplication of efforts, and ensure that smallholder farmers take a central place in the global transition towards sustainable food systems.
Key momentum will come from the transition of FACT co-chairs, with Malaysia formally taking up its co-chair role in an official handover from the government of Indonesia, with high-level ministerial participation from Malaysia, the United Kingdom, and Indonesia.
The FACT Dialogue, launched during COP26 in Glasgow in 2021, serves as a voluntary platform to foster international cooperation on sustainable supply chains.
It contrasts with the European Union Deforestation Regulation (EUDR), which imposes mandatory legal requirements on companies to prove that their products are deforestation-free.
There are 28 member countries of the FACT Dialogue, consisting of 14 producing countries including Malaysia, Indonesia, Brazil, Cameroon, Colombia, Ghana, Liberia and Nigeria, and 14 consuming countries namely the United Kingdom, Belgium, Canada, Denmark, France, Italy, Germany, the European Union, the United States and Japan.
While the EUDR adopts a regulatory and compliance-driven approach, FACT promotes collaborative dialogue and shared commitment — especially among developing and producing nations. The Edge
---------
Indonesia’s deforestation crisis: Can a just transition save its rainforests?
Opinion Piece By Evi Petsangouraki | 12/04/2025
The Indonesian government’s plan to clear an area of rainforest the size of Belgium for sugarcane-based bioethanol and food crops has sparked fierce backlash from Indigenous communities and environmental groups. The project, billed as a solution to food insecurity and renewable energy needs, threatens to accelerate deforestation in one of the world’s most biodiverse regions.
As Indonesia prepares to clear 3.2 million hectares of rainforest for bioethanol production, new data reveals a troubling paradox: the plan could release more carbon in 5 years than the bioethanol would save in 50. For policymakers weighing food security against climate commitments, here’s what the evidence shows—and what smarter alternatives exist.
The fatal flaws in current policy Read opinion at diem25
---------
New ISPO Policy Signed by Prabowo: Broader Scope, Clearer Rules for Palm Oil Industry
PALMOILMAGAZINE, JAKARTA – After a long wait, the revised Indonesia Sustainable Palm Oil (ISPO) policy has finally been signed into effect. On March 19, 2025, President Prabowo Subianto officially enacted Presidential Regulation No. 16 of 2025, marking a new chapter for the palm oil sector.
For industry players, this is both a breath of fresh air and a new challenge. The updated regulation not only replaces Presidential Regulation No. 44 of 2020 but also introduces significant reforms and expansion.
As reviewed by Palmoilmagazine.com on Friday (April 11, 2025), the new ISPO policy significantly broadens its scope. Previously limited to palm oil plantations, the certification now extends to three main sectors: palm oil plantations, downstream palm oil industries, and palm-based bioenergy businesses. In other words, the entire palm oil supply chain—from farms to refineries to biofuel—must now comply with Indonesia’s sustainability standards.
Importantly, the regulation includes firm enforcement measures. Article 5 outlines penalties for non-compliance, including written warnings, administrative fines, and temporary suspension of business operations. The authority to impose sanctions will depend on the sector—either the Ministry of Agriculture, Industry, or Energy.
The regulation also addresses certification costs. Acknowledging the financial disparity among stakeholders, Article 16 stipulates that ISPO certification costs are to be borne by businesses. However, for smallholder farmers, alternative funding sources are available—including the palm oil fund, the national budget (APBN), regional budgets (APBD), and other legal sources—ensuring inclusivity and support for small-scale growers.
Finally, Article 28 officially revokes the previous ISPO regulation, Presidential Regulation No. 44 of 2020, although existing implementing rules may still apply as long as they do not contradict the new provisions.
This latest ISPO revision is more than just a technical update. It’s part of a broader national narrative—Indonesia’s commitment to proving that palm oil, if managed responsibly, can be a partner in sustainability rather than an environmental threat. With Prabowo’s signature, that vision is now officially set in motion
This article has been published on palmoilmagazine.com with the title © Palm Oil Magazine - New ISPO Policy Signed by Prabowo: Broader Scope, Clearer Rules for Palm Oil Industry - Palmoilmagazine.com
Click to read: https://www.palmoilmagazine.com/ispo/2025/04/13/new-ispo-policy-signed-by-prabowo-broader-scope-clearer-rules-for-palm-oil-industry/
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April 11, 2025
UK Flights Departing with SAF
Flights are set to be greener as the UK’s ambitious sustainable aviation fuel (SAF) mandate officially came into force on New Year’s Day.
SAF is made from sustainable sources and by law, this type of fuel must now make up at least 2% of all jet fuel in flights taking off from the UK from 2025, growing year-on-year to 10% by 2030 and 22% by 2040.
These ambitious but achievable targets should see around 1.2 million tonnes of SAF supplied to the UK airline industry each year by 2030 – enough to circle the globe 3,000 times.
Being one of the first countries in the world to sign the mandate into law, the UK is at the forefront of decarbonising air travel and is helping to kickstart the government’s Plan for Change.
Boost growth
Minister for Aviation, Mike Kane, said: “Together with the other actions we are taking to grow a UK SAF industry, it will support thousands of skilled jobs in every part of the country, deliver economic growth and help make the UK a clean energy superpower.
“From this moment on, aviation will be a greener, more sustainable form of travel and today marks a significant milestone for...Biofuels News
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Odisha Govt Inks MoU with Palm Oil Companies to Boost Agriculture and Employment
A New Chapter in Odisha’s Agri-Industrial Growth Begins
In a significant development, the Odisha government, represented by Deputy Chief Minister Kanak Vardhan Singh Deo, signed a Memorandum of Understanding (MoU) with three palm oil companies for four districts under the aegis of the Directorate of Horticulture.
This landmark agreement aims to establish a large-scale oil palm cultivation project in the state, promising to enhance agricultural productivity, industrial growth, and employment opportunities.
As per the MoU, palm oil companies will collaborate with the state to develop extensive palm oil plantations. This initiative is expected to usher in a new era of agricultural and industrial progress while ensuring better prices for farmers and generating substantial job opportunities. The districts covered under this agreement include Angul, Dhenkanal, Jajpur, and Cuttack, with the companies involved being Patanjali Foods Limited (Cuttack), Tummala Agro Products Private Limited (Angul), and Liv Palm Resources Private Limited (Dhenkanal and Jajpur).
Speaking at the event, Deputy Chief Minister Singh Deo welcomed the palm oil companies’ representatives and emphasised the partnership’s transformative potential. “This MoU will boost oil palm cultivation in Odisha, leading to increased edible oil production. It will enhance farmers’ income, create rural employment, and improve the socio-economic condition of farming communities,” he said. He expressed confidence that the agreement would foster an investor-friendly environment for agro-industries in Odisha, benefiting farmers, youth, and workers alike.
The representatives of the palm oil companies echoed this optimism, pledging to leverage advanced technology and fresh investments to tap into Odisha’s immense potential in oil palm cultivation. Under the National Mission on Edible Oils – Oil Palm (NMEO-OP) scheme, this program is set to drive sustainable agricultural growth in the state.
The signing ceremony was attended by key officials, including Dr. Arabinda Padhee, Principal Secretary of the Agriculture and Farmers’ Empowerment Department, Shubham Saxena, Director of Agriculture, Nikhil Pavan Kalyan, Director of Horticulture, and other senior departmental officials.
The initiative is expected to pave the way for economic transformation and job creation in the coming years, marking a significant step forward for Odisha’s rural economy. Pragativadi
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Sierra Leone: Unlocking West Africa’s Investment Potential
With its strategic location, abundant natural resources, and proactive economic reforms, Sierra Leone is emerging as one of the region’s most promising investment destinations.
From mining and agriculture to technology, renewable energy, and tourism, Sierra Leone’s diversified economy offers significant opportunities for foreign direct investment (FDI).
A Resource-Rich Economy with Strategic Advantages
The country’s mineral wealth—including diamonds, gold, bauxite, and iron ore—has long anchored its economy, attracting sustained global interest. However, the country’s investment appeal extends well beyond mining. With over 5.4 million hectares of arable land and a favorable climate, Sierra Leone is well-positioned to become a regional leader in agribusiness. Opportunities span from large-scale farming to value-added agro-processing for export crops such as rice, cocoa, and palm oil.
“Sierra Leone’s location within West Africa, combined with its natural deep-water ports and growing industrial infrastructure, makes it an ideal hub for trade and logistics,” explains Gilbert Zhao, CEO of Leone Rock Metal Group. Forbes Africa
UK Flights Departing with SAF
Flights are set to be greener as the UK’s ambitious sustainable aviation fuel (SAF) mandate officially came into force on New Year’s Day.
SAF is made from sustainable sources and by law, this type of fuel must now make up at least 2% of all jet fuel in flights taking off from the UK from 2025, growing year-on-year to 10% by 2030 and 22% by 2040.
These ambitious but achievable targets should see around 1.2 million tonnes of SAF supplied to the UK airline industry each year by 2030 – enough to circle the globe 3,000 times.
Being one of the first countries in the world to sign the mandate into law, the UK is at the forefront of decarbonising air travel and is helping to kickstart the government’s Plan for Change.
Boost growth
Minister for Aviation, Mike Kane, said: “Together with the other actions we are taking to grow a UK SAF industry, it will support thousands of skilled jobs in every part of the country, deliver economic growth and help make the UK a clean energy superpower.
“From this moment on, aviation will be a greener, more sustainable form of travel and today marks a significant milestone for...Biofuels News
---------
Odisha Govt Inks MoU with Palm Oil Companies to Boost Agriculture and Employment
A New Chapter in Odisha’s Agri-Industrial Growth Begins
In a significant development, the Odisha government, represented by Deputy Chief Minister Kanak Vardhan Singh Deo, signed a Memorandum of Understanding (MoU) with three palm oil companies for four districts under the aegis of the Directorate of Horticulture.
This landmark agreement aims to establish a large-scale oil palm cultivation project in the state, promising to enhance agricultural productivity, industrial growth, and employment opportunities.
As per the MoU, palm oil companies will collaborate with the state to develop extensive palm oil plantations. This initiative is expected to usher in a new era of agricultural and industrial progress while ensuring better prices for farmers and generating substantial job opportunities. The districts covered under this agreement include Angul, Dhenkanal, Jajpur, and Cuttack, with the companies involved being Patanjali Foods Limited (Cuttack), Tummala Agro Products Private Limited (Angul), and Liv Palm Resources Private Limited (Dhenkanal and Jajpur).
Speaking at the event, Deputy Chief Minister Singh Deo welcomed the palm oil companies’ representatives and emphasised the partnership’s transformative potential. “This MoU will boost oil palm cultivation in Odisha, leading to increased edible oil production. It will enhance farmers’ income, create rural employment, and improve the socio-economic condition of farming communities,” he said. He expressed confidence that the agreement would foster an investor-friendly environment for agro-industries in Odisha, benefiting farmers, youth, and workers alike.
The representatives of the palm oil companies echoed this optimism, pledging to leverage advanced technology and fresh investments to tap into Odisha’s immense potential in oil palm cultivation. Under the National Mission on Edible Oils – Oil Palm (NMEO-OP) scheme, this program is set to drive sustainable agricultural growth in the state.
The signing ceremony was attended by key officials, including Dr. Arabinda Padhee, Principal Secretary of the Agriculture and Farmers’ Empowerment Department, Shubham Saxena, Director of Agriculture, Nikhil Pavan Kalyan, Director of Horticulture, and other senior departmental officials.
The initiative is expected to pave the way for economic transformation and job creation in the coming years, marking a significant step forward for Odisha’s rural economy. Pragativadi
---------
Sierra Leone: Unlocking West Africa’s Investment Potential
With its strategic location, abundant natural resources, and proactive economic reforms, Sierra Leone is emerging as one of the region’s most promising investment destinations.
From mining and agriculture to technology, renewable energy, and tourism, Sierra Leone’s diversified economy offers significant opportunities for foreign direct investment (FDI).
A Resource-Rich Economy with Strategic Advantages
The country’s mineral wealth—including diamonds, gold, bauxite, and iron ore—has long anchored its economy, attracting sustained global interest. However, the country’s investment appeal extends well beyond mining. With over 5.4 million hectares of arable land and a favorable climate, Sierra Leone is well-positioned to become a regional leader in agribusiness. Opportunities span from large-scale farming to value-added agro-processing for export crops such as rice, cocoa, and palm oil.
“Sierra Leone’s location within West Africa, combined with its natural deep-water ports and growing industrial infrastructure, makes it an ideal hub for trade and logistics,” explains Gilbert Zhao, CEO of Leone Rock Metal Group. Forbes Africa
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April 10, 2025
US TARIFF DOES NOT SIGNIFICANTLY DISRUPT PALM OIL EXPORT COMMODITY PRICES - DEPUTY MINISTER CHAN
TAWAU, April 10 (Bernama) -- The new tariff rates proposed by the United States for 90 countries, including Malaysia, on April 2 are not expected to significantly impact the prices of the country’s export commodities, especially palm oil.
Deputy Minister of Plantation and Commodities Datuk Chan Foong Hin said that this is because the US only imports about one per cent of Malaysia’s palm oil commodities.
However, he cautioned that the impact of the tariffs could potentially disrupt market sentiment and demand for commodities.
“The US is not a major market for Malaysia’s palm oil because the country itself produces soybean oil. If we look at it, the US is a competitor in the oil market. So, it should not affect palm oil that much.
“But it may affect demand because uncertainty is high, so that is why it will impact demand, and exports might drop slightly. However, looking at the tariff rate imposed on Malaysia, which is lower compared to Indonesia’s 32 per cent, it shows that Malaysia’s palm oil remains competitive,” Chan said after launching the Smallholder Palm Oil Replanting Financing Incentive Scheme (TSPKS 2.0) here today.
On April 2, Donald Trump announced a series of “reciprocal tariffs” on imports from about 90 countries, which included an overall 10 per cent tax on all imports into the US. Bernama
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Trump announces 90-day pause in higher tariffs for most countries but hits China with 125% tariffs
US President Donald Trump has postponed plans to hike tariffs on most countries except for China, which now faces 125% tariffs when exporting goods to the USA, The Guardian reported today.
Since Trump first announced universal 10% tariffs on all imports into the USA on 2 April, world financial markets have plunged, fuelling fears of a global recession.
After insisting for days that he would hold firm on his trade strategy, Trump announced on 9 April that all countries that had not retaliated against US tariffs would receive a reprieve until July but would still face a blanket US tariff of 10%, The Guardian wrote.
However, as China was preparing to add an additional tariff on US goods – bringing its total levy to 84% – from 10 April, Trump said he would raise US tariffs on Chinese exports to 125% with immediate effect, the report said.
China has called the president’s escalation of the trade war “a mistake on top of a mistake” and vowed to “fight to the end”.
“The US’s practice of escalating tariffs on China … seriously infringes on China’s legitimate rights and interests and seriously damages the rules-based multilateral trading system,” the Chinese finance ministry was quoted as saying.
According to administration officials, the USA’s neighbours and closest trading partners Mexico and Canada will also be hit with a 10% US tariff.
“More than 75 countries” had contacted the US federal government “to negotiate a solution” since Trump announced plans for steep tariffs on their exports, the president claimed in a post on Truth Social.
Meanwhile, the European Union (EU) approved retaliatory 25% tariffs on up to $US23bn in US goods, including soyabeans, from 15 April in response to Trump imposing 25% tariffs on US steel and aluminium imports, effective on 12 March, The Guardian wrote.
The EC said: “The EU considers US tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy.”
The EU’s retaliatory tariffs on the USA “can be suspended at any time”, it added in a statement, “should the US agree to a fair and balanced negotiated outcome.”
The EU’s retaliatory tariffs on the USA are expected to negatively impact US soyabean imports and could lead to EU importers turning to South American soyabean suppliers, according to a 26 March report by Germany’s Union for the Promotion of Plants and Protein (UFOP).
With Ukraine also expected to step in as a supplier, US soyabean producers could lose a crucial market, UFOP said.
After Brazil, the USA is the world’s second largest supplier of soyabeans, with national production totalling just under 119M tonnes and approximately 50M tonnes of US soyabeans expected to be exported in the 2024/25 season, according to the 26 March UFOP report.
Although China was the main recipient, the EU also imported a significant share, making it the second most important market for the USA, the report said.
According to EU Commission data, the EU imported a total of 13.1M tonnes of soyabeans in the previous crop year. Of this, approximately 5.9M tonnes was shipped from Brazil, while 5.3M tonnes were sourced from the USA, representing a share of almost 41% of total imports.
In the current season, as of 16 March, the EU had imported around 9.6M tonnes of soyabeans, with the USA accounting for the largest share at 5.1M tonnes, or just over 53%.
However, as the Brazilian harvest did not take place until February/March 2025, it was likely soyabeans would primarily be sourced from South America’s 2025 harvest in the coming months, according to analysis by Agrarmarkt Informations-Gesellschaft.
Meanwhile, leading palm oil producers Indonesia and Malaysia potentially face 32% and 24% tariffs respectively. Jakarta has sent a delegation to the USA to negotiate while Malaysia says it not considering introducing retaliatory tariffs, according to a 7 April Bangkok Post report.
The Indonesian government also said it was in talks with Malaysia to jointly take steps in addressing the tariffs.
The tariffs on Malaysia would have minimal impact on the country’s palm oil sector as the country’s palm oil exports to the USA accounted for less than 1% of total national production, said Malaysian Palm Oil Board (MPOB) director general Dr Ahmad Parveez Ghulam Kadir.
“Although the tariff may have an indirect effect, such as price increases, it will not significantly affect demand in the USA,” a 7 April New Straits Times report quoted him as saying. OFI Magazine
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Palm oil rivals Malaysia, Indonesia could explore greater complementarity to strengthen relationship like siblings, says Sri Mulyani
KUALA LUMPUR (April 10): The complementarity of Malaysia and Indonesia could be further explored in bilateral trade, despite competing in the same palm oil market, as the relationship should be strengthened akin to siblings, said Indonesian Finance Minister Sri Mulyani Indrawati.
She said Indonesia, for example, had been working rigorously to clean up many of the images, distortions, and negativity regarding palm oil management.
In an exclusive interview with Bernama on Thursday, the former chief of the World Bank stated that, given the challenging economic environment, both countries should strengthen their relationship.
Sri Mulyani acknowledged that Malaysia had more experience and is more advanced in palm oil investments, which could be beneficial for collaboration.
“Indonesia and Malaysia naturally should be closer, but sometimes, just like siblings, you have a certain rivalry, but it should not be seen as something which is hampering or creating an obstacle to cooperation.
“Malaysia and Indonesia can demonstrate that palm oil is a sustainable economic activity on a global scale. We (Indonesia) [for example] are working to coordinate this collaboration among our agencies, particularly in relation to the European market. This market often stigmatises us concerning deforestation, and our image related to palm oil’s health effects.
"Both countries should work closely and stronger, because if we work individually, the result is going to be less effective,” she said in response to a question about how Malaysia and Indonesia could enhance bilateral trade, particularly in palm oil.
The two countries are the leading global palm oil producers, with Indonesia being the largest followed by Malaysia, commanding about 80% of the market. The Edge/ Bernama
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Oil palm giant Presco reports 140% surge in profit as Ghanaian expansion boosts revenue
Presco plans to take over Ghana Oil Palm Development Company fully with payments scheduled in phases, the company said last June when it announced the first instalment of $65 million.
Post-tax profit at oil palm company Presco jumped far more than double to N77.8 billion in 2024, partly due to its recent expansion into the Ghanaian market.
That helped lift margin to 37.5 per cent from 31.6 per cent a year ago for the oil palm giant, acquired by local investor Oak and Saffron last year from Belgium-based Siat SA.
Presco bought a 60 per cent controlling stake in Ghana Oil Palm Development Company Limited last August in its drive to scale and exploit fresh potential in the West African nation, where the demand for palm oil – a vital ingredient in nearly 50 per cent of the packaged products on supermarket shelves – is currently almost three times the supply.
The big picture is to take over the Ghanaian company fully, with payments scheduled in phases, Presco said last June when it announced the first instalment of $65 million. Premium TimesNG
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UK investigating HVO over claims of “large amounts” of fraud
A new report by Transport & Environment has found that a large proportion of the biofuels promoted by oil companies such as Shell and BP as a low-emission diesel alternatives are being fraudulently labelled as a waste residue from palm oil milling.
Theoretically, the fact we can use hydrotreated vegetable oil (HVO) as a fuel is a remarkably convenient thing. It can be added straight to a diesel engine without modification, it produces lower emissions, is sulphur-free and is literally made from waste.
But as they say, if something seems too good to be true…etc.
Which brings us to palm oil, as discussion around HVO often does.
The original idea was that HVO would be made from waste material such as used cooking oil, but as demand for biofuels grew, producers turned to virgin crops such as palm oil. By the late 2010s, the demand for palm oil as a biofuel became extremely problematic, leading to levels of deforestation that were worse for the planet than if everyone had just continued using fossil fuels.
In 2018 the EU decided to phase out the use of palm oil as a biofuel, leading to its use falling 80% by 2023.
There is a residue from palm oil milling however that can cause environmental damage if left untreated. Conveniently, this can be prevented by converting it to biofuel. This is classified as Palm Oil Mill Effluents (POME) and its use has soared over recent years, increasing fivefold between 2020 and 2023.
New research from Transport & Environment has, however, uncovered a problem: the amount being used is impossible. In fact, they found that the amount of POME being blended into biofuels in Europe is nearly double the amount that the world is capable of producing. The only explanation for this, they believe, is fraud.
Their new report, ‘Palm oil in disguise?’ highlights the issue and predicts that as POME imports continue to increase, the problem will become worse.
The European Commission have already flagged up POME as being a market in which fraud is likely, due to the fact that different materials can be altered to appear to be POME.
On top of this, as the report observes: ‘the certification process is primarily based on auditing paperwork including self-declarations of compliance, to verify whether the biofuels product is sourced and processed sustainably. Importantly, this means that chemically or physically testing the biofuels product is not a mandatory criterion for certification to be granted.’ Air Quality News
US TARIFF DOES NOT SIGNIFICANTLY DISRUPT PALM OIL EXPORT COMMODITY PRICES - DEPUTY MINISTER CHAN
TAWAU, April 10 (Bernama) -- The new tariff rates proposed by the United States for 90 countries, including Malaysia, on April 2 are not expected to significantly impact the prices of the country’s export commodities, especially palm oil.
Deputy Minister of Plantation and Commodities Datuk Chan Foong Hin said that this is because the US only imports about one per cent of Malaysia’s palm oil commodities.
However, he cautioned that the impact of the tariffs could potentially disrupt market sentiment and demand for commodities.
“The US is not a major market for Malaysia’s palm oil because the country itself produces soybean oil. If we look at it, the US is a competitor in the oil market. So, it should not affect palm oil that much.
“But it may affect demand because uncertainty is high, so that is why it will impact demand, and exports might drop slightly. However, looking at the tariff rate imposed on Malaysia, which is lower compared to Indonesia’s 32 per cent, it shows that Malaysia’s palm oil remains competitive,” Chan said after launching the Smallholder Palm Oil Replanting Financing Incentive Scheme (TSPKS 2.0) here today.
On April 2, Donald Trump announced a series of “reciprocal tariffs” on imports from about 90 countries, which included an overall 10 per cent tax on all imports into the US. Bernama
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Trump announces 90-day pause in higher tariffs for most countries but hits China with 125% tariffs
US President Donald Trump has postponed plans to hike tariffs on most countries except for China, which now faces 125% tariffs when exporting goods to the USA, The Guardian reported today.
Since Trump first announced universal 10% tariffs on all imports into the USA on 2 April, world financial markets have plunged, fuelling fears of a global recession.
After insisting for days that he would hold firm on his trade strategy, Trump announced on 9 April that all countries that had not retaliated against US tariffs would receive a reprieve until July but would still face a blanket US tariff of 10%, The Guardian wrote.
However, as China was preparing to add an additional tariff on US goods – bringing its total levy to 84% – from 10 April, Trump said he would raise US tariffs on Chinese exports to 125% with immediate effect, the report said.
China has called the president’s escalation of the trade war “a mistake on top of a mistake” and vowed to “fight to the end”.
“The US’s practice of escalating tariffs on China … seriously infringes on China’s legitimate rights and interests and seriously damages the rules-based multilateral trading system,” the Chinese finance ministry was quoted as saying.
According to administration officials, the USA’s neighbours and closest trading partners Mexico and Canada will also be hit with a 10% US tariff.
“More than 75 countries” had contacted the US federal government “to negotiate a solution” since Trump announced plans for steep tariffs on their exports, the president claimed in a post on Truth Social.
Meanwhile, the European Union (EU) approved retaliatory 25% tariffs on up to $US23bn in US goods, including soyabeans, from 15 April in response to Trump imposing 25% tariffs on US steel and aluminium imports, effective on 12 March, The Guardian wrote.
The EC said: “The EU considers US tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy.”
The EU’s retaliatory tariffs on the USA “can be suspended at any time”, it added in a statement, “should the US agree to a fair and balanced negotiated outcome.”
The EU’s retaliatory tariffs on the USA are expected to negatively impact US soyabean imports and could lead to EU importers turning to South American soyabean suppliers, according to a 26 March report by Germany’s Union for the Promotion of Plants and Protein (UFOP).
With Ukraine also expected to step in as a supplier, US soyabean producers could lose a crucial market, UFOP said.
After Brazil, the USA is the world’s second largest supplier of soyabeans, with national production totalling just under 119M tonnes and approximately 50M tonnes of US soyabeans expected to be exported in the 2024/25 season, according to the 26 March UFOP report.
Although China was the main recipient, the EU also imported a significant share, making it the second most important market for the USA, the report said.
According to EU Commission data, the EU imported a total of 13.1M tonnes of soyabeans in the previous crop year. Of this, approximately 5.9M tonnes was shipped from Brazil, while 5.3M tonnes were sourced from the USA, representing a share of almost 41% of total imports.
In the current season, as of 16 March, the EU had imported around 9.6M tonnes of soyabeans, with the USA accounting for the largest share at 5.1M tonnes, or just over 53%.
However, as the Brazilian harvest did not take place until February/March 2025, it was likely soyabeans would primarily be sourced from South America’s 2025 harvest in the coming months, according to analysis by Agrarmarkt Informations-Gesellschaft.
Meanwhile, leading palm oil producers Indonesia and Malaysia potentially face 32% and 24% tariffs respectively. Jakarta has sent a delegation to the USA to negotiate while Malaysia says it not considering introducing retaliatory tariffs, according to a 7 April Bangkok Post report.
The Indonesian government also said it was in talks with Malaysia to jointly take steps in addressing the tariffs.
The tariffs on Malaysia would have minimal impact on the country’s palm oil sector as the country’s palm oil exports to the USA accounted for less than 1% of total national production, said Malaysian Palm Oil Board (MPOB) director general Dr Ahmad Parveez Ghulam Kadir.
“Although the tariff may have an indirect effect, such as price increases, it will not significantly affect demand in the USA,” a 7 April New Straits Times report quoted him as saying. OFI Magazine
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Palm oil rivals Malaysia, Indonesia could explore greater complementarity to strengthen relationship like siblings, says Sri Mulyani
KUALA LUMPUR (April 10): The complementarity of Malaysia and Indonesia could be further explored in bilateral trade, despite competing in the same palm oil market, as the relationship should be strengthened akin to siblings, said Indonesian Finance Minister Sri Mulyani Indrawati.
She said Indonesia, for example, had been working rigorously to clean up many of the images, distortions, and negativity regarding palm oil management.
In an exclusive interview with Bernama on Thursday, the former chief of the World Bank stated that, given the challenging economic environment, both countries should strengthen their relationship.
Sri Mulyani acknowledged that Malaysia had more experience and is more advanced in palm oil investments, which could be beneficial for collaboration.
“Indonesia and Malaysia naturally should be closer, but sometimes, just like siblings, you have a certain rivalry, but it should not be seen as something which is hampering or creating an obstacle to cooperation.
“Malaysia and Indonesia can demonstrate that palm oil is a sustainable economic activity on a global scale. We (Indonesia) [for example] are working to coordinate this collaboration among our agencies, particularly in relation to the European market. This market often stigmatises us concerning deforestation, and our image related to palm oil’s health effects.
"Both countries should work closely and stronger, because if we work individually, the result is going to be less effective,” she said in response to a question about how Malaysia and Indonesia could enhance bilateral trade, particularly in palm oil.
The two countries are the leading global palm oil producers, with Indonesia being the largest followed by Malaysia, commanding about 80% of the market. The Edge/ Bernama
---------
Oil palm giant Presco reports 140% surge in profit as Ghanaian expansion boosts revenue
Presco plans to take over Ghana Oil Palm Development Company fully with payments scheduled in phases, the company said last June when it announced the first instalment of $65 million.
Post-tax profit at oil palm company Presco jumped far more than double to N77.8 billion in 2024, partly due to its recent expansion into the Ghanaian market.
That helped lift margin to 37.5 per cent from 31.6 per cent a year ago for the oil palm giant, acquired by local investor Oak and Saffron last year from Belgium-based Siat SA.
Presco bought a 60 per cent controlling stake in Ghana Oil Palm Development Company Limited last August in its drive to scale and exploit fresh potential in the West African nation, where the demand for palm oil – a vital ingredient in nearly 50 per cent of the packaged products on supermarket shelves – is currently almost three times the supply.
The big picture is to take over the Ghanaian company fully, with payments scheduled in phases, Presco said last June when it announced the first instalment of $65 million. Premium TimesNG
---------
UK investigating HVO over claims of “large amounts” of fraud
A new report by Transport & Environment has found that a large proportion of the biofuels promoted by oil companies such as Shell and BP as a low-emission diesel alternatives are being fraudulently labelled as a waste residue from palm oil milling.
Theoretically, the fact we can use hydrotreated vegetable oil (HVO) as a fuel is a remarkably convenient thing. It can be added straight to a diesel engine without modification, it produces lower emissions, is sulphur-free and is literally made from waste.
But as they say, if something seems too good to be true…etc.
Which brings us to palm oil, as discussion around HVO often does.
The original idea was that HVO would be made from waste material such as used cooking oil, but as demand for biofuels grew, producers turned to virgin crops such as palm oil. By the late 2010s, the demand for palm oil as a biofuel became extremely problematic, leading to levels of deforestation that were worse for the planet than if everyone had just continued using fossil fuels.
In 2018 the EU decided to phase out the use of palm oil as a biofuel, leading to its use falling 80% by 2023.
There is a residue from palm oil milling however that can cause environmental damage if left untreated. Conveniently, this can be prevented by converting it to biofuel. This is classified as Palm Oil Mill Effluents (POME) and its use has soared over recent years, increasing fivefold between 2020 and 2023.
New research from Transport & Environment has, however, uncovered a problem: the amount being used is impossible. In fact, they found that the amount of POME being blended into biofuels in Europe is nearly double the amount that the world is capable of producing. The only explanation for this, they believe, is fraud.
Their new report, ‘Palm oil in disguise?’ highlights the issue and predicts that as POME imports continue to increase, the problem will become worse.
The European Commission have already flagged up POME as being a market in which fraud is likely, due to the fact that different materials can be altered to appear to be POME.
On top of this, as the report observes: ‘the certification process is primarily based on auditing paperwork including self-declarations of compliance, to verify whether the biofuels product is sourced and processed sustainably. Importantly, this means that chemically or physically testing the biofuels product is not a mandatory criterion for certification to be granted.’ Air Quality News
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April 09, 2025
Indonesian palm oil highly sought by other countries says President Prabowo
KBRN, Jakarta: Indonesian President Prabowo Subianto stated that Indonesian palm oil products are highly sought after by many foreign countries. The Head of State observed this during his visits to Indonesia's partner nations.
According to the President, since assuming office, numerous heads of state have expressed interest in Indonesian palm oil. He emphasized the lengthy cultivation process, noting that palm oil trees take five to six years to become productive.
"Everywhere I go, everyone asks for Indonesian palm oil. Palm oil takes five years to become productive, six years," the President remarked during an economic forum in Jakarta on Tuesday, April 8, 2025, as quoted by rri.co.id.
President Prabowo noted that he and his Cabinet have worked diligently over the past five months to ensure a transparent and open government.
"For us, transparency is key. We have created a national transformation strategy book and distributed it widely. You can access it," he said.
The President underscored that his administration operates strictly within the framework of existing regulations. "Our foundation is Pancasila and the 1945 Constitution—not as a mantra, slogan, or motto," he asserted.
President Prabowo further explained that Indonesia's national economy is also rooted in Pancasila and the Constitution. "This means our economy must align with the principles of Pancasila," he concluded RRI
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Soybean Industry Releases Timely Seed Oil Study on a seed oil ban
Impacts of removing seed oils from U.S. food supply striking
WASHINGTON — The results of a soy industry project to examine the impacts of a potential seed oil ban in the U.S. food supply are in—and the answers are not good. The seed oil study was funded by the United Soybean Board and conducted by the World Agricultural Economic and Environmental Services.
WAEES maintains agricultural economic models that allow it to examine potential industry changes, and what it found forecasting a ban was this: The seed oil industry, which primarily includes soybean, canola, corn, cottonseed, grapeseed, rice bran, safflower and sunflower, would see a sizable drop in consumption for domestic products while imported palm oil would likely flourish. Meantime, consumers would have a hard time making apples-to-apples substitutions given price surges, product availability, allergen issues, and usage constraints (just like you cannot use an orange in apple pie, not all fats and oils are created equal).
ASA President and Kentucky soybean farmer Caleb Ragland said of the study, “This work simply confirms what we already knew. A ban on seed oils, including soy, is going to have costly impacts for farmers and costly impacts for consumers—and I don’t just mean in the wallet. There is the potential here that we lose consumer choice based on conjecture, and that should not be something we condone in the United States or anywhere, for that matter.”
WAEES routinely projects supply and demand of agricultural products, farm income, consumer expenditures and other variables for 10 years out. Against that baseline, two scenarios for a seed oil ban were considered:
1. Flat U.S. fat and oil consumption: This scenario removed seed oils from human consumption but assumed consumption of fats and oils per capita would remain roughly unchanged—ignoring the fact that many fats and oils are not directly substitutable. For instance, tallow and palm oil cannot be used in salad dressing, as they are solid at room temperature. Certain nut oils also bring allergy concerns. Assuming people would find a way to consume fats and oils without worrying about their form, this scenario found:
A 58-pound per-capita loss of seed oil would be filled primarily by increased palm oil consumption (53 pounds), which would have to be imported. Global palm area would likely increase by 3.3 million acres.
The Consumer Price Index (CPI) for fats and oils would, in turn, increase by 28.7%; consumer expenditures on vegetable oils and fats would increase by $7.7 billion per year on average—a 43% increase.
2. Substitution constraints: Again, fats and oils are not fully substitutable in practice. This scenario assumed consumers would only be willing to spend 8% more on fats and oils and would reduce consumption to fit within that budget constraint.
In this case, the 58-pound loss of seed oils is only partially offset. Per-capita consumption of fats and oils would fall by 21 pounds, or 29%. The study did not look at any resulting health consequences of the dramatic drop.
The Consumer Price Index (CPI) for fats and oils would increase by 35.1% amid the lack of available alternatives.
In both scenarios, the effects of reduced consumer vegetable oils and fats consumption would cause additional consumer and farm-level losses.
Soybean prices would fall by an average of over 3% per year and farmer returns by about 7%. But, overall crop cash receipts would drop by $3 billion per year, and farm income would fall by about $2 billion dollars. Soybean area would decrease by a yearly average of 2.8 million acres.
Meat supplies to consumers would also fall by over 12 pounds per year, as higher meal prices from lower oilseed processing margins would increase feed costs for animals, whose diets depend heavily on soy meal.
Dr. Scott Gerlt, ASA chief economist, explained why a switch to non-seed oils is not readily feasible:
“Simply put, there is not enough production. Fats are largely a byproduct of meat production and represent only a small share of the value of the processing. Capacity to produce tallow is also limited, even if the value of the fats increased significantly. For lard, over 80% is already used in food and 30% of white grease currently goes to food.”
Similarly, olive oil production is limited and costly, and peanut oil is not widely traded and comes with allergen issues for many persons.
The Food and Drug Administration has recognized the potential health benefits of soybean oil through a scientific review process that supports replacing saturated fats with unsaturated fats found in soybean oil to reduce the risk of coronary heart disease.
Ragland said, “FDA’s qualified health claim for soybean oil found ‘supportive scientific evidence’ to suggest soybean oil and certain foods made from it may lower “bad” LDL cholesterol and reduce the risk of coronary heart disease. Why would we rock that boat without any scientific reason if soy oil has, time and again, been found safe and even to have potential health benefits—including by European nations like Germany and Austria that also suggest using seed oil, and specifically soybean oil, over other forms of fat can have health benefits and be a part of a healthy diet? That does not make logical sense and does not seem worth taking away consumer choice and killing nearly half (43%) of our domestic soy oil market.”
ASA continues to support regulatory decisions grounded in science and risk-based assessments and that enable farmers to continue their operations while supporting consumer choice. The study points to the many concerns of the greater soy industry as to the immediate and ongoing impacts an arbitrary ban on seed oils could have for soybean farmers and the U.S. food supply and economy.
The American Soybean Association (ASA) represents U.S. soybean farmers on domestic and international policy issues important to the soybean industry. ASA has 26 affiliated state associations representing 30 soybean-producing states and nearly 500,000 soybean farmers. Morning AGClips
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Latam and Ecopetrol agree on SAF development project
April 8, 2025 | Juan Pedro Tomas
In Colombia, La Republica reported that Latam Airlines and Ecopetrol announced the exchange of knowledge and experience to promote aviation sustainability in Colombia. The report noted that Ricardo Roa, president of the oil company, and Erika Zarante, CEO of the airline, confirmed the launch of a project to use and develop sustainable aviation fuels. The first step of this partnership was taken with the announcement of the use of 32,000 barrels of Jet A1 on more than 700 domestic flights. The liquid was co-processed with 1% renewable raw materials, including palm oil and used cooking oil, and was produced at the Cartagena refinery. The fuel will be distributed to the airports of Medellín, Barranquilla, and San Andrés, the report added. “Ecopetrol and LATAM have reached a historic milestone for Colombia by promoting the use of co-processed jet fuels with renewable components. This is a first step toward the production and use of sustainable aviation fuels like SAF in the country and the region,” said Ricardo Roa. Biofuels Digest
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UK investigating claims green fuel contains virgin palm oil
The UK government is investigating a fast-growing "green fuel" called HVO diesel amid claims of significant fraud, the BBC has learned.
HVO is increasingly popular as a transport fuel and for powering music festivals and its backers say it can curb carbon emissions by up to 90% as it can be made from waste materials like used cooking oil.
But industry whistleblowers told the BBC they believe large amounts of these materials are not waste but instead are virgin palm oil, which is being fraudulently relabelled.
And data analysed by the BBC and shared with the UK's Department for Transport casts further doubt on one of the key ingredients in HVO, a material called palm sludge waste.
Europe used more of this waste in HVO and other biofuels in 2023 than it is thought possible for the world to produce.
In response to the BBC's findings, the Department for Transport said they "take the concerns raised seriously and are working with stakeholders and international partners to gather further information".
HVO, or hydrotreated vegetable oil, has been called something of a wonder-fuel in recent years as it can be used as 100% substitute for diesel reducing planet warming emissions.
UK consumption rocketed from 8 million litres in 2019 to about 699 million litres in 2024, according to provisional government figures.
Its green credentials rely heavily on the assumption that it is made from waste sources, particularly used cooking oil or the waste sludge from palm oil production.
But industry whistle-blowers have told the BBC that they believe virgin palm oil and other non-waste materials are often being used instead.
That would be bad news for the planet, as virgin palm oil is linked to increased tropical deforestation, which adds to climate change and threatening endangered species like orang-utans.
This palm oil "floods the market like cancer," one large European biofuel manufacturer told the BBC.
They said that to stay in business they have to go along with the pretence that they are using waste materials.
Another whistle-blower, a former trader of these biofuels, also speaking anonymously, gave the BBC his account of one recent case dealing with supposedly waste products.
"I believe that what I bought was multiple cargos of virgin palm oil that has been wrongly classified as palm oil sludge," they said.
"I called one of the board members and told them about the situation, and then I was told that they didn't want to do anything about it, because the evidence would be burned."
As well as this testimony, data compiled by campaign group Transport & Environment and analysed by the BBC suggests that more palm sludge waste is being used for transport biofuels than the world is probably able to produce.
The figures show that the UK and EU used about two million tonnes of palm sludge waste for HVO and other biofuels in 2023, based on Eurostat and UK Department for Transport figures.
EU imports of this sludge appear to have risen further in 2024, according to preliminary UN trade data, although the UK appears to have bucked this trend.
But the data analysed by the BBC, which is based on well-established UN and industry statistics, suggests the world can only produce just over one million tonnes of palm sludge waste a year.
This mismatch further suggests non-waste fuels such as virgin palm oil are being used to meet Europe's rapid growth in biofuels, according to researchers and industry figures. BBC
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Malaysian palm oil producers could capture US market share from Indonesia with better pricing — CGS International
KUALA LUMPUR (April 9): Malaysian palm oil producers could steal the spotlight in the US, grabbing market share from Indonesia with their more competitive pricing, with the imposition of reciprocal tariff from April 9.
The US has slapped Indonesian imports with a reciprocal tariff of 32%, compared with the 24% imposed on Malaysian imports.
“We think this could result in supply chain shifts, with Malaysian palm oil producers potentially gaining market share in the US, due to more competitive pricing relative to their Indonesian counterparts,” CGS International said in its agribusiness sector note.
In 2024, the US imported 1.75 million tonnes of palm oil (2.2% of global palm oil production), of which 88% were from Indonesia.
Indonesia and Malaysia are the world’s largest and second largest palm oil producers, respectively.
CGS International said it prefers plantation companies with more exposure to Malaysia, due to US tariffs, Indonesian government policies that may cause land losses, and a weakening rupiah, which could increase operating costs for Indonesian producers.
Its top sector picks are SD Guthrie Bhd (KL:SDG) and Hap Seng Plantations Bhd (KL:HAPSENG). It also favours Ta Ann Holdings Bhd (KL:TAANN).
The Indonesian government reportedly plans to take control of over one million hectares of private oil palm plantations it considers illegal, to clean up the industry and boost state revenue. The Forest Area Recognition Task Force, led by President Prabowo Subianto, has identified around 1.2 million hectares of such land, mostly in Central Kalimantan, to be transferred to a new state-owned company, Agrinas Palma Nusantara. The move potentially makes it the largest palm oil company by land area.
Indonesia currently has close to 16 million hectares of land dedicated to oil palm plantations, with around 1.2 million hectares considered illegal, according to the Indonesian government.
Notably, private companies hold 55% of the country’s oil palm plantation area.
Many plantation firms are appealing the move, as losing these lands would severely impact their production.
On the other hand, CGS International said the Indonesian rupiah has depreciated by about 4% against the Malaysian ringgit, year-to-date.
“We think Indonesia’s weakening currency would raise operational costs, as fertilisers and some fertiliser components are priced in US dollars.
On top of that, companies with a higher exposure to Indonesia may also have to book larger currency translation losses, due to the weak rupiah,” it said in the note. The Edge
Indonesian palm oil highly sought by other countries says President Prabowo
KBRN, Jakarta: Indonesian President Prabowo Subianto stated that Indonesian palm oil products are highly sought after by many foreign countries. The Head of State observed this during his visits to Indonesia's partner nations.
According to the President, since assuming office, numerous heads of state have expressed interest in Indonesian palm oil. He emphasized the lengthy cultivation process, noting that palm oil trees take five to six years to become productive.
"Everywhere I go, everyone asks for Indonesian palm oil. Palm oil takes five years to become productive, six years," the President remarked during an economic forum in Jakarta on Tuesday, April 8, 2025, as quoted by rri.co.id.
President Prabowo noted that he and his Cabinet have worked diligently over the past five months to ensure a transparent and open government.
"For us, transparency is key. We have created a national transformation strategy book and distributed it widely. You can access it," he said.
The President underscored that his administration operates strictly within the framework of existing regulations. "Our foundation is Pancasila and the 1945 Constitution—not as a mantra, slogan, or motto," he asserted.
President Prabowo further explained that Indonesia's national economy is also rooted in Pancasila and the Constitution. "This means our economy must align with the principles of Pancasila," he concluded RRI
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Soybean Industry Releases Timely Seed Oil Study on a seed oil ban
Impacts of removing seed oils from U.S. food supply striking
WASHINGTON — The results of a soy industry project to examine the impacts of a potential seed oil ban in the U.S. food supply are in—and the answers are not good. The seed oil study was funded by the United Soybean Board and conducted by the World Agricultural Economic and Environmental Services.
WAEES maintains agricultural economic models that allow it to examine potential industry changes, and what it found forecasting a ban was this: The seed oil industry, which primarily includes soybean, canola, corn, cottonseed, grapeseed, rice bran, safflower and sunflower, would see a sizable drop in consumption for domestic products while imported palm oil would likely flourish. Meantime, consumers would have a hard time making apples-to-apples substitutions given price surges, product availability, allergen issues, and usage constraints (just like you cannot use an orange in apple pie, not all fats and oils are created equal).
ASA President and Kentucky soybean farmer Caleb Ragland said of the study, “This work simply confirms what we already knew. A ban on seed oils, including soy, is going to have costly impacts for farmers and costly impacts for consumers—and I don’t just mean in the wallet. There is the potential here that we lose consumer choice based on conjecture, and that should not be something we condone in the United States or anywhere, for that matter.”
WAEES routinely projects supply and demand of agricultural products, farm income, consumer expenditures and other variables for 10 years out. Against that baseline, two scenarios for a seed oil ban were considered:
1. Flat U.S. fat and oil consumption: This scenario removed seed oils from human consumption but assumed consumption of fats and oils per capita would remain roughly unchanged—ignoring the fact that many fats and oils are not directly substitutable. For instance, tallow and palm oil cannot be used in salad dressing, as they are solid at room temperature. Certain nut oils also bring allergy concerns. Assuming people would find a way to consume fats and oils without worrying about their form, this scenario found:
A 58-pound per-capita loss of seed oil would be filled primarily by increased palm oil consumption (53 pounds), which would have to be imported. Global palm area would likely increase by 3.3 million acres.
The Consumer Price Index (CPI) for fats and oils would, in turn, increase by 28.7%; consumer expenditures on vegetable oils and fats would increase by $7.7 billion per year on average—a 43% increase.
2. Substitution constraints: Again, fats and oils are not fully substitutable in practice. This scenario assumed consumers would only be willing to spend 8% more on fats and oils and would reduce consumption to fit within that budget constraint.
In this case, the 58-pound loss of seed oils is only partially offset. Per-capita consumption of fats and oils would fall by 21 pounds, or 29%. The study did not look at any resulting health consequences of the dramatic drop.
The Consumer Price Index (CPI) for fats and oils would increase by 35.1% amid the lack of available alternatives.
In both scenarios, the effects of reduced consumer vegetable oils and fats consumption would cause additional consumer and farm-level losses.
Soybean prices would fall by an average of over 3% per year and farmer returns by about 7%. But, overall crop cash receipts would drop by $3 billion per year, and farm income would fall by about $2 billion dollars. Soybean area would decrease by a yearly average of 2.8 million acres.
Meat supplies to consumers would also fall by over 12 pounds per year, as higher meal prices from lower oilseed processing margins would increase feed costs for animals, whose diets depend heavily on soy meal.
Dr. Scott Gerlt, ASA chief economist, explained why a switch to non-seed oils is not readily feasible:
“Simply put, there is not enough production. Fats are largely a byproduct of meat production and represent only a small share of the value of the processing. Capacity to produce tallow is also limited, even if the value of the fats increased significantly. For lard, over 80% is already used in food and 30% of white grease currently goes to food.”
Similarly, olive oil production is limited and costly, and peanut oil is not widely traded and comes with allergen issues for many persons.
The Food and Drug Administration has recognized the potential health benefits of soybean oil through a scientific review process that supports replacing saturated fats with unsaturated fats found in soybean oil to reduce the risk of coronary heart disease.
Ragland said, “FDA’s qualified health claim for soybean oil found ‘supportive scientific evidence’ to suggest soybean oil and certain foods made from it may lower “bad” LDL cholesterol and reduce the risk of coronary heart disease. Why would we rock that boat without any scientific reason if soy oil has, time and again, been found safe and even to have potential health benefits—including by European nations like Germany and Austria that also suggest using seed oil, and specifically soybean oil, over other forms of fat can have health benefits and be a part of a healthy diet? That does not make logical sense and does not seem worth taking away consumer choice and killing nearly half (43%) of our domestic soy oil market.”
ASA continues to support regulatory decisions grounded in science and risk-based assessments and that enable farmers to continue their operations while supporting consumer choice. The study points to the many concerns of the greater soy industry as to the immediate and ongoing impacts an arbitrary ban on seed oils could have for soybean farmers and the U.S. food supply and economy.
The American Soybean Association (ASA) represents U.S. soybean farmers on domestic and international policy issues important to the soybean industry. ASA has 26 affiliated state associations representing 30 soybean-producing states and nearly 500,000 soybean farmers. Morning AGClips
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Latam and Ecopetrol agree on SAF development project
April 8, 2025 | Juan Pedro Tomas
In Colombia, La Republica reported that Latam Airlines and Ecopetrol announced the exchange of knowledge and experience to promote aviation sustainability in Colombia. The report noted that Ricardo Roa, president of the oil company, and Erika Zarante, CEO of the airline, confirmed the launch of a project to use and develop sustainable aviation fuels. The first step of this partnership was taken with the announcement of the use of 32,000 barrels of Jet A1 on more than 700 domestic flights. The liquid was co-processed with 1% renewable raw materials, including palm oil and used cooking oil, and was produced at the Cartagena refinery. The fuel will be distributed to the airports of Medellín, Barranquilla, and San Andrés, the report added. “Ecopetrol and LATAM have reached a historic milestone for Colombia by promoting the use of co-processed jet fuels with renewable components. This is a first step toward the production and use of sustainable aviation fuels like SAF in the country and the region,” said Ricardo Roa. Biofuels Digest
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UK investigating claims green fuel contains virgin palm oil
The UK government is investigating a fast-growing "green fuel" called HVO diesel amid claims of significant fraud, the BBC has learned.
HVO is increasingly popular as a transport fuel and for powering music festivals and its backers say it can curb carbon emissions by up to 90% as it can be made from waste materials like used cooking oil.
But industry whistleblowers told the BBC they believe large amounts of these materials are not waste but instead are virgin palm oil, which is being fraudulently relabelled.
And data analysed by the BBC and shared with the UK's Department for Transport casts further doubt on one of the key ingredients in HVO, a material called palm sludge waste.
Europe used more of this waste in HVO and other biofuels in 2023 than it is thought possible for the world to produce.
In response to the BBC's findings, the Department for Transport said they "take the concerns raised seriously and are working with stakeholders and international partners to gather further information".
HVO, or hydrotreated vegetable oil, has been called something of a wonder-fuel in recent years as it can be used as 100% substitute for diesel reducing planet warming emissions.
UK consumption rocketed from 8 million litres in 2019 to about 699 million litres in 2024, according to provisional government figures.
Its green credentials rely heavily on the assumption that it is made from waste sources, particularly used cooking oil or the waste sludge from palm oil production.
But industry whistle-blowers have told the BBC that they believe virgin palm oil and other non-waste materials are often being used instead.
That would be bad news for the planet, as virgin palm oil is linked to increased tropical deforestation, which adds to climate change and threatening endangered species like orang-utans.
This palm oil "floods the market like cancer," one large European biofuel manufacturer told the BBC.
They said that to stay in business they have to go along with the pretence that they are using waste materials.
Another whistle-blower, a former trader of these biofuels, also speaking anonymously, gave the BBC his account of one recent case dealing with supposedly waste products.
"I believe that what I bought was multiple cargos of virgin palm oil that has been wrongly classified as palm oil sludge," they said.
"I called one of the board members and told them about the situation, and then I was told that they didn't want to do anything about it, because the evidence would be burned."
As well as this testimony, data compiled by campaign group Transport & Environment and analysed by the BBC suggests that more palm sludge waste is being used for transport biofuels than the world is probably able to produce.
The figures show that the UK and EU used about two million tonnes of palm sludge waste for HVO and other biofuels in 2023, based on Eurostat and UK Department for Transport figures.
EU imports of this sludge appear to have risen further in 2024, according to preliminary UN trade data, although the UK appears to have bucked this trend.
But the data analysed by the BBC, which is based on well-established UN and industry statistics, suggests the world can only produce just over one million tonnes of palm sludge waste a year.
This mismatch further suggests non-waste fuels such as virgin palm oil are being used to meet Europe's rapid growth in biofuels, according to researchers and industry figures. BBC
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Malaysian palm oil producers could capture US market share from Indonesia with better pricing — CGS International
KUALA LUMPUR (April 9): Malaysian palm oil producers could steal the spotlight in the US, grabbing market share from Indonesia with their more competitive pricing, with the imposition of reciprocal tariff from April 9.
The US has slapped Indonesian imports with a reciprocal tariff of 32%, compared with the 24% imposed on Malaysian imports.
“We think this could result in supply chain shifts, with Malaysian palm oil producers potentially gaining market share in the US, due to more competitive pricing relative to their Indonesian counterparts,” CGS International said in its agribusiness sector note.
In 2024, the US imported 1.75 million tonnes of palm oil (2.2% of global palm oil production), of which 88% were from Indonesia.
Indonesia and Malaysia are the world’s largest and second largest palm oil producers, respectively.
CGS International said it prefers plantation companies with more exposure to Malaysia, due to US tariffs, Indonesian government policies that may cause land losses, and a weakening rupiah, which could increase operating costs for Indonesian producers.
Its top sector picks are SD Guthrie Bhd (KL:SDG) and Hap Seng Plantations Bhd (KL:HAPSENG). It also favours Ta Ann Holdings Bhd (KL:TAANN).
The Indonesian government reportedly plans to take control of over one million hectares of private oil palm plantations it considers illegal, to clean up the industry and boost state revenue. The Forest Area Recognition Task Force, led by President Prabowo Subianto, has identified around 1.2 million hectares of such land, mostly in Central Kalimantan, to be transferred to a new state-owned company, Agrinas Palma Nusantara. The move potentially makes it the largest palm oil company by land area.
Indonesia currently has close to 16 million hectares of land dedicated to oil palm plantations, with around 1.2 million hectares considered illegal, according to the Indonesian government.
Notably, private companies hold 55% of the country’s oil palm plantation area.
Many plantation firms are appealing the move, as losing these lands would severely impact their production.
On the other hand, CGS International said the Indonesian rupiah has depreciated by about 4% against the Malaysian ringgit, year-to-date.
“We think Indonesia’s weakening currency would raise operational costs, as fertilisers and some fertiliser components are priced in US dollars.
On top of that, companies with a higher exposure to Indonesia may also have to book larger currency translation losses, due to the weak rupiah,” it said in the note. The Edge
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April 08, 2025
US tariff could disrupt palm oil exports, but Malaysia has competitive edge — MPOB
PUTRAJAYA (April 7): The newly imposed 24% tariff by the US on Malaysia may initially disrupt export flows, but the country has a competitive edge over major palm oil producers, according to the Malaysian Palm Oil Board (MPOB).
Its director general Datuk Dr Ahmad Parveez Ghulam Kadir said although the tariff affects global exports, Malaysia’s comparatively lower tariff rate offers a slight advantage over Indonesia and Thailand, which are facing tariffs amounting to 32% and 36%, respectively.
“Of course, it will initially affect us because there will be disruptions and whatnot. But if you look at palm oil — especially for the US — they still need a lot of it for certain markets like confectionaries.
“These are products which depend on palm oil due to their trans fat policy and others,” he told reporters after the signing of a licensing and commercialisation agreement between MPOB and SumiSaujana Group Bhd here on Monday.
The agreement aims to leverage MPOB-owned technology to manufacture and commercialise palm-based intermediates, palm-based polyols, and bio-based polyester polyols.
Ahmad Parveez also said that the US palm oil market is relatively small for Malaysia, accounting for only about 1% of total palm oil exports. However, it remains significant due to its niche applications.
“What is important is that palm oil in the US is mostly used as a specialty oil, not for general cooking. So, the demand will still be there. It may have some impact initially, but eventually, it will not become a major issue,” he explained.
On market diversification, Ahmad Parveez said Malaysia continues to strengthen its global footprint and is not reliant on any single market.
“Whatever happens in Europe — with the Regulation on Deforestation-free Products (EUDR), previously the Revised Renewable Energy Directive (RED II), and now with the US tariff — we believe the ones who will suffer are their consumers.
“For us, we are moving beyond commodity palm oil to high-value applications,” he said.
Ahmad Parveez added that Malaysia recorded a significant increase in exports to the Philippines last year and continues to pursue new opportunities across Asean and other key regions.
“Now that Malaysia is chairing Asean, we hope to boost exports within the region. The most important thing is to maintain strong relationships with all palm oil-consuming countries,” he said. The EdgeMY
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Malaysia’s palm oil exports surge as sustainability, competition arise
Johari says palm oil prices have remained higher than those of other major vegetable oils, reinforcing Malaysia’s key role in the global market
by SUFEA SALEHUDDIN
THE recent 36th Palm & Lauric Oils Price Outlook Conference & Exhibition (POC 2025) drew over 2,000 participants from more than 50 countries to discuss the edible oils market.
Hosted by Bursa Malaysia Derivatives Bhd, the event has become a crucial platform for industry players, analysts and policymakers to exchange insights on global trade policies, price volatility and sustainability challenges facing the palm oil sector.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani highlighted the strong performance of the country’s palm oil industry in 2024.
“Crude palm oil (CPO) prices increased by 9.7%, averaging RM4,179.50 per tonne, with a peak of RM5,119.50 per tonne in December,” he said in his opening speech.
This growth was driven by higher demand from developing regions such as Africa and South and Central Asia, as well as Indonesia’s biodiesel mandate, which now diverts 25% of the nation’s 48 million-tonne CPO output into biofuel production.
Johari noted that palm oil prices have remained higher than those of other major vegetable oils, reinforcing Malaysia’s key role in the global market.
A major topic at the conference was the European Union’s (EU) decision to postpone the enforcement of the EU Deforestation Regulation (EUDR) to Dec 30, 2025.
While the delay provides plantation operators and smallholders with more time to meet the regulation’s stringent due diligence requirements, Johari reaffirmed Malaysia’s commitment to supplying sustainable and high-quality palm oil.
“Large estates, which account for approximately 73% of Malaysia’s planted palm oil area, are well-positioned to comply with sustainability standards,” he added.
The government, he added, has been actively engaging with international policy-makers to ensure fair treatment for Malaysian palm oil in global markets.
Johari’s recent official visits to Europe included discussions with the co-chair of the
Forest, Agriculture and Commodity Trade Dialogue in London and the EU commissioner overseeing the EUDR in Brussels.
He also addressed Malaysia’s record growth in palm oil exports, which rose by 12% in 2024 to US$26 billion (RM114.4 billion), up from US$22 billion in 2023.
He announced that CPO production increased to 19.3 million tonnes, the highest level in six years.
However, Johari cautioned that long-term sustainability remains a challenge, particularly with the declining rate of replanting.
“In 2024, replanting efforts fell to 114,000ha from 132,000ha in 2023, well below the recommended 285,000ha needed annually,” he warned.
The government is ramping up financial assistance and tax incentives to encourage growers to replant with high-quality seedlings, ensuring continued productivity without expanding land use. The Malaysian Reserve
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Indonesia stocks plunge on Trump tariffs after weeklong break
Indonesian stocks closed down nearly eight percent on Tuesday after a weeklong public holiday break, its biggest fall in more than a decade as uncertainty over US President Donald Trump's global tariffs roil markets.
Trump upended the world economy last week with sweeping tariffs that have raised fears of an international recession and triggered criticism even from within his own Republican Party.
The benchmark Jakarta Composite Index closed down 7.9 percent at 5,996.14, its lowest level since June 2021 as markets reopened following a closure since March 28 because of public holidays. The fall was its biggest since 2011, Bloomberg reported.
In the opening session, stocks sharply fell more than nine percent, sparking a brief trade suspension, but it would recoup some of those losses.
Ahead of the opening, Indonesia's stock exchange said trading would be further suspended if the market fell 15 percent, and trading would be halted for the day if the market dropped 20 percent "to ensure orderly, fair and efficient securities trading".
The stock exchange also said if an individual share fell by 15 percent, any sell orders below that price would be turned down.
Analysts said the sell-off reflected investor fears of a wider global trade war.
"The trading halt... was a strong signal of the market's deep concerns about the escalation of global risks," Permata Bank chief economist Josua Pardede told AFP.
- 'Escalation of global risks' -
The Indonesian central bank said Monday it would "intervene aggressively" to support the suffering rupiah. AFP/ Yahoo News
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Tariffs, tensions and turning points: A strategy for ASEAN sovereignty
By Yenny Wahid
The paradox of economic interdependence and strategic anxiety underscores ASEAN’s urgent need for unity and legal clarity.
JAKARTA – United States President Donald Trump’s return to sweeping tariffs—including a 25 percent levy on auto imports, a 10 percent tariff across the board and a steep 32 percent reciprocal rate on Indonesian exports—marks a defining moment in the reshaping of global trade and power dynamics.
For Southeast Asia, and especially for Indonesia, this is not just another chapter in the US-China rivalry; it is a direct economic hit. Key Indonesian sectors such as textiles and shrimp exports have already been feeling the pinch, while the rupiah has tumbled to its lowest point since the 1997-1998 Asian financial crisis.
But more than a predicament, this is a call to action. The era of multilateral globalization is fading. What comes next must be defined by regional resilience, energy independence and strategic vision.
Currently, Indonesia is undergoing a foreign policy shift. President Prabowo Subianto’s appointments of Prof. John Mearsheimer, a leading voice in offensive realism, and Prof. Jeffrey Sachs, a Nobel laureate in economics and global advocate for sustainable development, suggest a dual doctrine, security strength guided by social justice. This blend may prove crucial in navigating a world of economic coercion and hardening alliances.
While Trump’s tariffs are aimed at domestic politics, their impact on Southeast Asia will be significant. ASEAN economies, deeply integrated into global supply chains centered around Chinese manufacturing, face serious disruptions, especially in intermediate goods and autoparts. This protectionist shift undermines trust in the US as a stable economic partner, even as its role as a security counterweight to China continues to grow.
China’s regional role is equally complex. Despite deep economic ties with Southeast Asia, trust deficits persist. According to the ISEAS–Yusof Ishak Institute’s State of Southeast Asia: 2024 Survey Report, many in the region remain wary of China’s strategic ambitions.
While over 50 percent of respondents expect relations with China to improve, significant concerns remain, particularly regarding China’s assertive actions in the South China Sea and Mekong region. Just recently, for example, skirmishes between Beijing and Manila in the natural resource-rich maritime territory have been intensifying.
This paradox of economic interdependence and strategic anxiety underscores ASEAN’s urgent need for unity and legal clarity. Trust must be earned not just through infrastructure alone, but through restraint and respect for international law.
If ASEAN is to thrive in this fractured world, it must stop playing defense. That is why I propose the Nusantara Fund—a regional sovereign wealth fund cogoverned by all ASEAN member states and powered by Japan as a strategic partner. As the ISEAS survey found, Japan is seen by the respondents as the most trusted partner of ASEAN.
The purpose of the fund is to build strategic economic sovereignty. Through the fund, ASEAN can invest in regional manufacturing capacity, such as electric vehicle (EV) batteries, agroindustry, and semiconductors. It can also be used to fund logistics and maritime infrastructure like ports, rail, and digital connectivity across ASEAN.
Additionally, the fund can support the region’s green energy transition industries, including hydrogen, solar, and biofuels, especially in underserved areas.
In a nutshell, this fund would allow ASEAN to stand on its own feet—less dependent on external creditors and less exposed to sudden shocks like tariffs or supply chain disruptions. It is both a strategic tool and a symbol of our collective autonomy.
Indonesia, now a net oil importer, must also respond to the inflationary pressure and volatility created by global sanctions and energy competition. Here, Russia offers a quiet but necessary opportunity. Indonesia has been exploring energy cooperation with Russia under its new BRICS affiliation.
Although this move is rooted in economic necessity, it must be pursued with diplomatic care and continued engagement with the US in areas such as the Just Energy Transition Partnership. The Nusantara Fund could support renewable energy transition projects—biofuels, solar grids, and community-based energy storage—to reduce the need for politically sensitive energy imports.
As the big power rivalry intensifies, ASEAN must reject the binary choice. Instead, the region should strengthen its own internal security cooperation—through shared intelligence, maritime domain awareness, and a long-overdue binding Code of Conduct in the South China Sea.
The world is fragmenting, and the future will not be inherited by the biggest economies, but by those with the clearest moral and strategic compass. ASEAN must become not just a region of stability—but of direction. Asia News
US tariff could disrupt palm oil exports, but Malaysia has competitive edge — MPOB
PUTRAJAYA (April 7): The newly imposed 24% tariff by the US on Malaysia may initially disrupt export flows, but the country has a competitive edge over major palm oil producers, according to the Malaysian Palm Oil Board (MPOB).
Its director general Datuk Dr Ahmad Parveez Ghulam Kadir said although the tariff affects global exports, Malaysia’s comparatively lower tariff rate offers a slight advantage over Indonesia and Thailand, which are facing tariffs amounting to 32% and 36%, respectively.
“Of course, it will initially affect us because there will be disruptions and whatnot. But if you look at palm oil — especially for the US — they still need a lot of it for certain markets like confectionaries.
“These are products which depend on palm oil due to their trans fat policy and others,” he told reporters after the signing of a licensing and commercialisation agreement between MPOB and SumiSaujana Group Bhd here on Monday.
The agreement aims to leverage MPOB-owned technology to manufacture and commercialise palm-based intermediates, palm-based polyols, and bio-based polyester polyols.
Ahmad Parveez also said that the US palm oil market is relatively small for Malaysia, accounting for only about 1% of total palm oil exports. However, it remains significant due to its niche applications.
“What is important is that palm oil in the US is mostly used as a specialty oil, not for general cooking. So, the demand will still be there. It may have some impact initially, but eventually, it will not become a major issue,” he explained.
On market diversification, Ahmad Parveez said Malaysia continues to strengthen its global footprint and is not reliant on any single market.
“Whatever happens in Europe — with the Regulation on Deforestation-free Products (EUDR), previously the Revised Renewable Energy Directive (RED II), and now with the US tariff — we believe the ones who will suffer are their consumers.
“For us, we are moving beyond commodity palm oil to high-value applications,” he said.
Ahmad Parveez added that Malaysia recorded a significant increase in exports to the Philippines last year and continues to pursue new opportunities across Asean and other key regions.
“Now that Malaysia is chairing Asean, we hope to boost exports within the region. The most important thing is to maintain strong relationships with all palm oil-consuming countries,” he said. The EdgeMY
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Malaysia’s palm oil exports surge as sustainability, competition arise
Johari says palm oil prices have remained higher than those of other major vegetable oils, reinforcing Malaysia’s key role in the global market
by SUFEA SALEHUDDIN
THE recent 36th Palm & Lauric Oils Price Outlook Conference & Exhibition (POC 2025) drew over 2,000 participants from more than 50 countries to discuss the edible oils market.
Hosted by Bursa Malaysia Derivatives Bhd, the event has become a crucial platform for industry players, analysts and policymakers to exchange insights on global trade policies, price volatility and sustainability challenges facing the palm oil sector.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani highlighted the strong performance of the country’s palm oil industry in 2024.
“Crude palm oil (CPO) prices increased by 9.7%, averaging RM4,179.50 per tonne, with a peak of RM5,119.50 per tonne in December,” he said in his opening speech.
This growth was driven by higher demand from developing regions such as Africa and South and Central Asia, as well as Indonesia’s biodiesel mandate, which now diverts 25% of the nation’s 48 million-tonne CPO output into biofuel production.
Johari noted that palm oil prices have remained higher than those of other major vegetable oils, reinforcing Malaysia’s key role in the global market.
A major topic at the conference was the European Union’s (EU) decision to postpone the enforcement of the EU Deforestation Regulation (EUDR) to Dec 30, 2025.
While the delay provides plantation operators and smallholders with more time to meet the regulation’s stringent due diligence requirements, Johari reaffirmed Malaysia’s commitment to supplying sustainable and high-quality palm oil.
“Large estates, which account for approximately 73% of Malaysia’s planted palm oil area, are well-positioned to comply with sustainability standards,” he added.
The government, he added, has been actively engaging with international policy-makers to ensure fair treatment for Malaysian palm oil in global markets.
Johari’s recent official visits to Europe included discussions with the co-chair of the
Forest, Agriculture and Commodity Trade Dialogue in London and the EU commissioner overseeing the EUDR in Brussels.
He also addressed Malaysia’s record growth in palm oil exports, which rose by 12% in 2024 to US$26 billion (RM114.4 billion), up from US$22 billion in 2023.
He announced that CPO production increased to 19.3 million tonnes, the highest level in six years.
However, Johari cautioned that long-term sustainability remains a challenge, particularly with the declining rate of replanting.
“In 2024, replanting efforts fell to 114,000ha from 132,000ha in 2023, well below the recommended 285,000ha needed annually,” he warned.
The government is ramping up financial assistance and tax incentives to encourage growers to replant with high-quality seedlings, ensuring continued productivity without expanding land use. The Malaysian Reserve
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Indonesia stocks plunge on Trump tariffs after weeklong break
Indonesian stocks closed down nearly eight percent on Tuesday after a weeklong public holiday break, its biggest fall in more than a decade as uncertainty over US President Donald Trump's global tariffs roil markets.
Trump upended the world economy last week with sweeping tariffs that have raised fears of an international recession and triggered criticism even from within his own Republican Party.
The benchmark Jakarta Composite Index closed down 7.9 percent at 5,996.14, its lowest level since June 2021 as markets reopened following a closure since March 28 because of public holidays. The fall was its biggest since 2011, Bloomberg reported.
In the opening session, stocks sharply fell more than nine percent, sparking a brief trade suspension, but it would recoup some of those losses.
Ahead of the opening, Indonesia's stock exchange said trading would be further suspended if the market fell 15 percent, and trading would be halted for the day if the market dropped 20 percent "to ensure orderly, fair and efficient securities trading".
The stock exchange also said if an individual share fell by 15 percent, any sell orders below that price would be turned down.
Analysts said the sell-off reflected investor fears of a wider global trade war.
"The trading halt... was a strong signal of the market's deep concerns about the escalation of global risks," Permata Bank chief economist Josua Pardede told AFP.
- 'Escalation of global risks' -
The Indonesian central bank said Monday it would "intervene aggressively" to support the suffering rupiah. AFP/ Yahoo News
---------
Tariffs, tensions and turning points: A strategy for ASEAN sovereignty
By Yenny Wahid
The paradox of economic interdependence and strategic anxiety underscores ASEAN’s urgent need for unity and legal clarity.
JAKARTA – United States President Donald Trump’s return to sweeping tariffs—including a 25 percent levy on auto imports, a 10 percent tariff across the board and a steep 32 percent reciprocal rate on Indonesian exports—marks a defining moment in the reshaping of global trade and power dynamics.
For Southeast Asia, and especially for Indonesia, this is not just another chapter in the US-China rivalry; it is a direct economic hit. Key Indonesian sectors such as textiles and shrimp exports have already been feeling the pinch, while the rupiah has tumbled to its lowest point since the 1997-1998 Asian financial crisis.
But more than a predicament, this is a call to action. The era of multilateral globalization is fading. What comes next must be defined by regional resilience, energy independence and strategic vision.
Currently, Indonesia is undergoing a foreign policy shift. President Prabowo Subianto’s appointments of Prof. John Mearsheimer, a leading voice in offensive realism, and Prof. Jeffrey Sachs, a Nobel laureate in economics and global advocate for sustainable development, suggest a dual doctrine, security strength guided by social justice. This blend may prove crucial in navigating a world of economic coercion and hardening alliances.
While Trump’s tariffs are aimed at domestic politics, their impact on Southeast Asia will be significant. ASEAN economies, deeply integrated into global supply chains centered around Chinese manufacturing, face serious disruptions, especially in intermediate goods and autoparts. This protectionist shift undermines trust in the US as a stable economic partner, even as its role as a security counterweight to China continues to grow.
China’s regional role is equally complex. Despite deep economic ties with Southeast Asia, trust deficits persist. According to the ISEAS–Yusof Ishak Institute’s State of Southeast Asia: 2024 Survey Report, many in the region remain wary of China’s strategic ambitions.
While over 50 percent of respondents expect relations with China to improve, significant concerns remain, particularly regarding China’s assertive actions in the South China Sea and Mekong region. Just recently, for example, skirmishes between Beijing and Manila in the natural resource-rich maritime territory have been intensifying.
This paradox of economic interdependence and strategic anxiety underscores ASEAN’s urgent need for unity and legal clarity. Trust must be earned not just through infrastructure alone, but through restraint and respect for international law.
If ASEAN is to thrive in this fractured world, it must stop playing defense. That is why I propose the Nusantara Fund—a regional sovereign wealth fund cogoverned by all ASEAN member states and powered by Japan as a strategic partner. As the ISEAS survey found, Japan is seen by the respondents as the most trusted partner of ASEAN.
The purpose of the fund is to build strategic economic sovereignty. Through the fund, ASEAN can invest in regional manufacturing capacity, such as electric vehicle (EV) batteries, agroindustry, and semiconductors. It can also be used to fund logistics and maritime infrastructure like ports, rail, and digital connectivity across ASEAN.
Additionally, the fund can support the region’s green energy transition industries, including hydrogen, solar, and biofuels, especially in underserved areas.
In a nutshell, this fund would allow ASEAN to stand on its own feet—less dependent on external creditors and less exposed to sudden shocks like tariffs or supply chain disruptions. It is both a strategic tool and a symbol of our collective autonomy.
Indonesia, now a net oil importer, must also respond to the inflationary pressure and volatility created by global sanctions and energy competition. Here, Russia offers a quiet but necessary opportunity. Indonesia has been exploring energy cooperation with Russia under its new BRICS affiliation.
Although this move is rooted in economic necessity, it must be pursued with diplomatic care and continued engagement with the US in areas such as the Just Energy Transition Partnership. The Nusantara Fund could support renewable energy transition projects—biofuels, solar grids, and community-based energy storage—to reduce the need for politically sensitive energy imports.
As the big power rivalry intensifies, ASEAN must reject the binary choice. Instead, the region should strengthen its own internal security cooperation—through shared intelligence, maritime domain awareness, and a long-overdue binding Code of Conduct in the South China Sea.
The world is fragmenting, and the future will not be inherited by the biggest economies, but by those with the clearest moral and strategic compass. ASEAN must become not just a region of stability—but of direction. Asia News
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April 07, 2025
Malaysia’s ASEAN chairmanship in 2025 crucial for countering US trade tariffs
KUALA LUMPUR: As the United States, under President Donald Trump, moves to reshape the global trading system to its advantage, Malaysia’s role as ASEAN chair in 2025 will be critical in charting the bloc’s next stage of economic growth.
Sunway University’s Jeffrey Cheah Institute on Southeast Asia head, Professor Shandre Mugan Thangavelu, said ASEAN is at a crucial juncture to uphold its shared vision of growth, economic cooperation and regional integration for sustainable development.
“It is timely for Malaysia, in its chairmanship role, to reiterate the enduring ASEAN principles and policy stance in responding to the Trump administration’s unprecedented tariff shock to the global economy in general, and to ASEAN specifically.
“Its leadership in coordinating policy stances and responses will be crucial to counter Trump’s reciprocal tariffs in a strategic and effective manner,” he told Bernama.
The don said the key for ASEAN member states is to maintain and strengthen ASEAN centrality through a shared vision of growth.
“Individual responses to Trump’s reciprocal tariffs will highlight the need to reinforce ASEAN centrality, particularly through multilateral free trade agreements such as the Regional Comprehensive Economic Partnership (RCEP) and the ASEAN Economic Community (AEC),” he said.
Shandre noted that RCEP, as the world’s largest free trade agreement, provides a rule-based and institutional framework for sustainable economic development in East Asia.
“As a ‘living’ agreement, the RCEP Joint Committee can expand the regional integration agenda to address key contemporary issues such as environment and climate change, skills development, green transformation, and the development of digital and smart urban centres.
“In negotiations with the Trump administration, the institutional features of RCEP can also support progressive liberalisation of regional and global trade and address non-traditional issues beyond trade and investment. Setting up the RCEP Secretariat is critical to coordinate these efforts,” he said.
The professor also said negotiations must consider new and emerging technologies such as artificial intelligence (AI), robotics, electric vehicles, autonomous technologies and space technologies – areas where the US holds a competitive edge and ASEAN could provide improved market access.
“These technologies are creating new service sectors and global value chains (GVCs), enabling greater participation by small and medium enterprises (SMEs) in both regional and global production networks. Sarawak Tribune
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Malaysia to lead ASEAN talks on unified response to Trump's tariffs policy
Malaysia as this year’s ASEAN Chair plans to hold a meeting with ASEAN member countries, aiming to reach an agreement on the reciprocity against tariffs policy announced by U.S. President Donald J. Trump.
Malaysian Prime Minister Datuk Seri Anwar Ibrahim said that he had contacted several ASEAN leaders, such as Indonesian President Prabowo Subianto and Prime Minister of Thailand Paetongtarn Shinawatra.
Anwar also plans to discuss with President of the Philippines Ferdinand Marcos Jr. and Prime Minister of Singapore Lawrence Wong to discuss the issue of Trump's trade tariffs.
"We are indeed affected, even though the tariffs are high, they are still lower compared to several neighboring countries. Therefore, we decided to consult with our colleagues (ASEAN countries)," Anwar said as quoted by Bernama, on Friday, April 4, 2025.
On the other hand, Prabowo had also spoken with leaders of Singapore, the Philippines and Brunei via telephone regarding efforts to deal with Trump's tariff policy.
The Indonesian Ministry of Foreign Affairs has hinted that Indonesia is preparing various measures to respond to the new U.S. policy.
The Indonesian government said in an official statement that the U.S. reciprocal tariffs will have a significant impact on the competitiveness of Indonesia's main exports in the U.S. market, namely textiles and textile products, footwear, electronics, palm oil, rubber, furniture and marine fishery products.
"Indonesia has communicated with Malaysia as the ASEAN Chair to take joint measures considering that all 10 ASEAN countries are affected by the imposition of U.S. tariffs," said the official statement of the Indonesian Ministry of Foreign Affairs on Friday, April 4, 2025.
Previously, Trump imposed reciprocal tariffs on ASEAN countries with different amounts. The U.S. reciprocal tariff for Indonesia is 32 percent, Malaysia 24 percent, Vietnam 46 percent, Cambodia 49 percent, Singapore 10 percent, the Philippines 17 percent, Thailand 36 percent, Laos 48 percent, Brunei 24 percent and Timor Leste 10 percent.
The Ministry of Foreign Affairs stated that Indonesia will continue to communicate with the U.S. Government to negotiate this tariff.
"Indonesia will send a high-level delegation to Washington DC to conduct direct negotiations with the U.S. government," said the Indonesian Ministry of Foreign Affairs. Indonesia Business Post
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Minimal impact of US tariffs on Sabah’s trade, says former Chief Minister Yong Teck Lee
KOTA KINABALU, April 6 — Sabah’s direct exports to the United States are so minimal that the tariffs of 24 per cent on Malaysian exports to America hardly affect Sabah’s international trade, said former chief minister Datuk Seri Yong Teck Lee.
He pointed out that Sabah’s main exports consist of oil and gas, palm oil and palm products, wood products, seafood, silica sand, and food products, most of which go to North-East Asian countries (China, Japan, Korea) as well as India, Europe, Asean countries, and Peninsular Malaysia.
Sabah’s estimated direct export of goods to the US for this year (2025) is estimated to be around 1 per cent of Sabah’s total exports (that is, only about RM1 billion of Sabah’s RM100 billion).
Sabah’s exports to the US consist mainly of oil and gas, wood products and palm oil. It was only recently that Sabah began exporting an increasing amount of copper foil to the US.
As it so happened, the good news for Sabah is that the copper (and some wood products) are two of the few items that are exempted from the new tariffs (called reciprocal tariffs). Hence, Sabah’s exports of copper foil and some wood products are not affected by the so-called US president Donald Trump tariffs.
As for the tariffs on palm oil, Yong said the amount of palm oil exported to the US is only a tiny portion of Sabah’s total export of palm oil and palm products (total estimated at RM20 billion for year 2025).
"Most of Sabah’s palm oil and palm products are exported to China, India, Europe (especially Holland). It follows, therefore, that it is not an insurmountable task for Sabah’s palm oil exporters to divert their palm oil away from the US market to other major buyers (importers) of our palm oil. What Sabah’s oil palm sector also needs to do is to have a stable price of fertilisers, reliable labour in oil palm plantations, and improvements to local infrastructure and logistics in order to increase the productivity of the palm oil industry.
"However, if the global trade war caused by the Trump tariffs seriously slow down the economies of Peninsular Malaysia, Asean countries, China, Japan, India and Europe (Sabah’s main trading partners), then it is obvious that Sabah’s economy will consequently be impacted because of the reduced purchasing power of the buyers (importers) of Sabah’s exports,” he said in a statement today.
Yong, who is the president of Sabah Progressive Party (SAPP), added the possibility of Sabah government losing revenues caused by the drop in global oil prices can be compensated by Petronas increasing production in line with what OPEC+ (Organisation of Petroleum Exporting Countries Plus) has done two days ago (increasing their production by 411,000 barrels per day).
In any case, OPEC has noted that the world demand for oil and gas remains stable with strong fundamentals. Malay Mail
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Unleashing Borneo’s Potential: Will Indonesia Step Up to match the progress of Malaysian Borneo?
Since Indonesia’s election period, President Prabowo Subianto—then still a presidential candidate—advocated for a “good neighbor” approach in shaping the country’s foreign policy. While this concept was not elaborated in detail, many assumed and encouraged Prabowo’s government to better articulate this idea to more grounded initiatives.
Borneo offers a compelling case study in this regard, thanks to its strategic geographical location and abundance of natural resources and biodiversity. Home to over 20 million people, the island spans across Indonesia’s Kalimantan provinces, Malaysia’s Sabah and Sarawak, and Brunei Darussalam. With much or less similar characteristics of its economic strengths and landscape, there is a room for complementarity among each other.
However, Borneo still faces numerous challenges, such as weak intra-Borneo trade, limited cross-border connectivity. and an existing struggle to balance industrial development with biodiversity and environmental conservation. Indeed, Borneo’s poor inter-island and rural-urban connectivity, particularly in transportation and communication, further hinder trade and economic integration.
Historically, Borneo’s land-based development fueled growth but also drove extensive deforestation and timber extraction from the 1970s to the early 2000s. Today, the island has shifted from being a major timber exporter to becoming a hub for sustainable palm oil. Pressures from global markets—including sustainability standards and environmental concerns—have prompted efforts to improve production efficiency and minimize forest loss.
There is a strong leverage for Indonesia to tap into Borneo’s economic integration, given its position as the region’s largest market. To unlock this potential, Indonesia must take a more proactive role in fostering cross-border energy trade, improving industrial linkages, and accelerating investment in high-value sectors. This requires not only national-level initiatives but also closer engagement with local leaders and stakeholders across Borneo.
President Prabowo seeks to make a "good neighbor policy" the hallmark of his foreign policy, by fostering deeper regional cooperation. Indonesia’s pursuit of energy and food security aligns with Borneo’s vast economic potential, but translating ambition into reality will require more than political will from Bandar Seri Begawan, Jakarta, and Putrajaya—it demands a nuanced understanding of the interests and aspirations of Borneo’s local communities.
As geopolitical shifts and sweeping transformations reshape the region, the question remains: Will Borneo emerge as a true engine of economic growth, or will fragmented interests and uneven development hold it back? and more importantly will Indonesia seek to be a main actor or a mere spectator?
Noto Suoneto is the VP for International Affairs at the Indonesian Business Council (IBC). Jakarta Globe
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Turning Crops and Commerce into a Growth Story for Africa
Integrating traditional business acumen with innovative strategies to drive industrial and agricultural transformation, Pee Cee Holding Ltd is fostering a self-sufficient and globally competitive Sierra Leone.
“My vision has always been to focus on producing locally rather than relying on imports.” Mahesh Nandwani, CEO of Pee Cee Holding Ltd
Established in 1965, Pee Cee & Sons began its operations as a small trading shop in Freetown. Over the following decades, the company rose to become one of West Africa’s most prominent distribution and marketing firms, with a footprint spanning Sierra Leone, Liberia, Guinea, and Senegal. Its diverse portfolio includes internationally renowned brands across multiple categories, as well as a private label brand, Padi, with over 20 products under the umbrella. At the core of this success is Pee Cee Holding Ltd, the parent company that oversees six subsidiaries with operations strategically aligned to enhance local production, bolster regional trade, and fortify supply chain resilience. Forbes Africa
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Ghana targets $100m in private investments to cultivate 20,000 hectares of oil palm in move to cut imports
The government is pushing forward with a new Palm Industry Policy that will see 50,000 hectares of oil palm cultivated nationwide, positioning the crop as a major economic pillar alongside cocoa.
The first phase of the project, covering 20,000 hectares, will require an investment of $100 million, according to Minister for Finance Dr Cassiel Ato Forson.
Announcing the move in a Facebook post on Friday, April 4, 2025, Dr Forson said the policy forms part of a broader plan to reduce Ghana’s dependence on palm oil imports while creating jobs and boosting agribusiness growth.
“We are looking to attract private sector investment to cultivate 50,000 hectares of palm. For the first 20,000 hectares alone, we estimate a need for $100 million in investment,” Dr Forson stated.
He cited Malaysia’s successful transformation of its economy through oil palm cultivation as a model for Ghana to emulate. Despite being well-suited for oil palm production, Ghana remains a net importer of palm oil.
“We must reverse this. Our neighbour, Côte d’Ivoire, is already exporting, which underlines the urgency for Ghana to scale up,” he noted.
The Palm Industry Policy is expected to create thousands of jobs in rural communities and contribute to Ghana’s import substitution agenda.
Dr Forson revealed that, as part of plans to support the palm initiative and other high-impact sectors, the Ministry of Finance will soon set up a Real Sector Division. This new unit will identify and develop key areas of economic growth, particularly agribusiness and responsible mining. GraphicGH
Malaysia’s ASEAN chairmanship in 2025 crucial for countering US trade tariffs
KUALA LUMPUR: As the United States, under President Donald Trump, moves to reshape the global trading system to its advantage, Malaysia’s role as ASEAN chair in 2025 will be critical in charting the bloc’s next stage of economic growth.
Sunway University’s Jeffrey Cheah Institute on Southeast Asia head, Professor Shandre Mugan Thangavelu, said ASEAN is at a crucial juncture to uphold its shared vision of growth, economic cooperation and regional integration for sustainable development.
“It is timely for Malaysia, in its chairmanship role, to reiterate the enduring ASEAN principles and policy stance in responding to the Trump administration’s unprecedented tariff shock to the global economy in general, and to ASEAN specifically.
“Its leadership in coordinating policy stances and responses will be crucial to counter Trump’s reciprocal tariffs in a strategic and effective manner,” he told Bernama.
The don said the key for ASEAN member states is to maintain and strengthen ASEAN centrality through a shared vision of growth.
“Individual responses to Trump’s reciprocal tariffs will highlight the need to reinforce ASEAN centrality, particularly through multilateral free trade agreements such as the Regional Comprehensive Economic Partnership (RCEP) and the ASEAN Economic Community (AEC),” he said.
Shandre noted that RCEP, as the world’s largest free trade agreement, provides a rule-based and institutional framework for sustainable economic development in East Asia.
“As a ‘living’ agreement, the RCEP Joint Committee can expand the regional integration agenda to address key contemporary issues such as environment and climate change, skills development, green transformation, and the development of digital and smart urban centres.
“In negotiations with the Trump administration, the institutional features of RCEP can also support progressive liberalisation of regional and global trade and address non-traditional issues beyond trade and investment. Setting up the RCEP Secretariat is critical to coordinate these efforts,” he said.
The professor also said negotiations must consider new and emerging technologies such as artificial intelligence (AI), robotics, electric vehicles, autonomous technologies and space technologies – areas where the US holds a competitive edge and ASEAN could provide improved market access.
“These technologies are creating new service sectors and global value chains (GVCs), enabling greater participation by small and medium enterprises (SMEs) in both regional and global production networks. Sarawak Tribune
---------
Malaysia to lead ASEAN talks on unified response to Trump's tariffs policy
Malaysia as this year’s ASEAN Chair plans to hold a meeting with ASEAN member countries, aiming to reach an agreement on the reciprocity against tariffs policy announced by U.S. President Donald J. Trump.
Malaysian Prime Minister Datuk Seri Anwar Ibrahim said that he had contacted several ASEAN leaders, such as Indonesian President Prabowo Subianto and Prime Minister of Thailand Paetongtarn Shinawatra.
Anwar also plans to discuss with President of the Philippines Ferdinand Marcos Jr. and Prime Minister of Singapore Lawrence Wong to discuss the issue of Trump's trade tariffs.
"We are indeed affected, even though the tariffs are high, they are still lower compared to several neighboring countries. Therefore, we decided to consult with our colleagues (ASEAN countries)," Anwar said as quoted by Bernama, on Friday, April 4, 2025.
On the other hand, Prabowo had also spoken with leaders of Singapore, the Philippines and Brunei via telephone regarding efforts to deal with Trump's tariff policy.
The Indonesian Ministry of Foreign Affairs has hinted that Indonesia is preparing various measures to respond to the new U.S. policy.
The Indonesian government said in an official statement that the U.S. reciprocal tariffs will have a significant impact on the competitiveness of Indonesia's main exports in the U.S. market, namely textiles and textile products, footwear, electronics, palm oil, rubber, furniture and marine fishery products.
"Indonesia has communicated with Malaysia as the ASEAN Chair to take joint measures considering that all 10 ASEAN countries are affected by the imposition of U.S. tariffs," said the official statement of the Indonesian Ministry of Foreign Affairs on Friday, April 4, 2025.
Previously, Trump imposed reciprocal tariffs on ASEAN countries with different amounts. The U.S. reciprocal tariff for Indonesia is 32 percent, Malaysia 24 percent, Vietnam 46 percent, Cambodia 49 percent, Singapore 10 percent, the Philippines 17 percent, Thailand 36 percent, Laos 48 percent, Brunei 24 percent and Timor Leste 10 percent.
The Ministry of Foreign Affairs stated that Indonesia will continue to communicate with the U.S. Government to negotiate this tariff.
"Indonesia will send a high-level delegation to Washington DC to conduct direct negotiations with the U.S. government," said the Indonesian Ministry of Foreign Affairs. Indonesia Business Post
---------
Minimal impact of US tariffs on Sabah’s trade, says former Chief Minister Yong Teck Lee
KOTA KINABALU, April 6 — Sabah’s direct exports to the United States are so minimal that the tariffs of 24 per cent on Malaysian exports to America hardly affect Sabah’s international trade, said former chief minister Datuk Seri Yong Teck Lee.
He pointed out that Sabah’s main exports consist of oil and gas, palm oil and palm products, wood products, seafood, silica sand, and food products, most of which go to North-East Asian countries (China, Japan, Korea) as well as India, Europe, Asean countries, and Peninsular Malaysia.
Sabah’s estimated direct export of goods to the US for this year (2025) is estimated to be around 1 per cent of Sabah’s total exports (that is, only about RM1 billion of Sabah’s RM100 billion).
Sabah’s exports to the US consist mainly of oil and gas, wood products and palm oil. It was only recently that Sabah began exporting an increasing amount of copper foil to the US.
As it so happened, the good news for Sabah is that the copper (and some wood products) are two of the few items that are exempted from the new tariffs (called reciprocal tariffs). Hence, Sabah’s exports of copper foil and some wood products are not affected by the so-called US president Donald Trump tariffs.
As for the tariffs on palm oil, Yong said the amount of palm oil exported to the US is only a tiny portion of Sabah’s total export of palm oil and palm products (total estimated at RM20 billion for year 2025).
"Most of Sabah’s palm oil and palm products are exported to China, India, Europe (especially Holland). It follows, therefore, that it is not an insurmountable task for Sabah’s palm oil exporters to divert their palm oil away from the US market to other major buyers (importers) of our palm oil. What Sabah’s oil palm sector also needs to do is to have a stable price of fertilisers, reliable labour in oil palm plantations, and improvements to local infrastructure and logistics in order to increase the productivity of the palm oil industry.
"However, if the global trade war caused by the Trump tariffs seriously slow down the economies of Peninsular Malaysia, Asean countries, China, Japan, India and Europe (Sabah’s main trading partners), then it is obvious that Sabah’s economy will consequently be impacted because of the reduced purchasing power of the buyers (importers) of Sabah’s exports,” he said in a statement today.
Yong, who is the president of Sabah Progressive Party (SAPP), added the possibility of Sabah government losing revenues caused by the drop in global oil prices can be compensated by Petronas increasing production in line with what OPEC+ (Organisation of Petroleum Exporting Countries Plus) has done two days ago (increasing their production by 411,000 barrels per day).
In any case, OPEC has noted that the world demand for oil and gas remains stable with strong fundamentals. Malay Mail
---------
Unleashing Borneo’s Potential: Will Indonesia Step Up to match the progress of Malaysian Borneo?
Since Indonesia’s election period, President Prabowo Subianto—then still a presidential candidate—advocated for a “good neighbor” approach in shaping the country’s foreign policy. While this concept was not elaborated in detail, many assumed and encouraged Prabowo’s government to better articulate this idea to more grounded initiatives.
Borneo offers a compelling case study in this regard, thanks to its strategic geographical location and abundance of natural resources and biodiversity. Home to over 20 million people, the island spans across Indonesia’s Kalimantan provinces, Malaysia’s Sabah and Sarawak, and Brunei Darussalam. With much or less similar characteristics of its economic strengths and landscape, there is a room for complementarity among each other.
However, Borneo still faces numerous challenges, such as weak intra-Borneo trade, limited cross-border connectivity. and an existing struggle to balance industrial development with biodiversity and environmental conservation. Indeed, Borneo’s poor inter-island and rural-urban connectivity, particularly in transportation and communication, further hinder trade and economic integration.
Historically, Borneo’s land-based development fueled growth but also drove extensive deforestation and timber extraction from the 1970s to the early 2000s. Today, the island has shifted from being a major timber exporter to becoming a hub for sustainable palm oil. Pressures from global markets—including sustainability standards and environmental concerns—have prompted efforts to improve production efficiency and minimize forest loss.
There is a strong leverage for Indonesia to tap into Borneo’s economic integration, given its position as the region’s largest market. To unlock this potential, Indonesia must take a more proactive role in fostering cross-border energy trade, improving industrial linkages, and accelerating investment in high-value sectors. This requires not only national-level initiatives but also closer engagement with local leaders and stakeholders across Borneo.
President Prabowo seeks to make a "good neighbor policy" the hallmark of his foreign policy, by fostering deeper regional cooperation. Indonesia’s pursuit of energy and food security aligns with Borneo’s vast economic potential, but translating ambition into reality will require more than political will from Bandar Seri Begawan, Jakarta, and Putrajaya—it demands a nuanced understanding of the interests and aspirations of Borneo’s local communities.
As geopolitical shifts and sweeping transformations reshape the region, the question remains: Will Borneo emerge as a true engine of economic growth, or will fragmented interests and uneven development hold it back? and more importantly will Indonesia seek to be a main actor or a mere spectator?
Noto Suoneto is the VP for International Affairs at the Indonesian Business Council (IBC). Jakarta Globe
---------
Turning Crops and Commerce into a Growth Story for Africa
Integrating traditional business acumen with innovative strategies to drive industrial and agricultural transformation, Pee Cee Holding Ltd is fostering a self-sufficient and globally competitive Sierra Leone.
“My vision has always been to focus on producing locally rather than relying on imports.” Mahesh Nandwani, CEO of Pee Cee Holding Ltd
Established in 1965, Pee Cee & Sons began its operations as a small trading shop in Freetown. Over the following decades, the company rose to become one of West Africa’s most prominent distribution and marketing firms, with a footprint spanning Sierra Leone, Liberia, Guinea, and Senegal. Its diverse portfolio includes internationally renowned brands across multiple categories, as well as a private label brand, Padi, with over 20 products under the umbrella. At the core of this success is Pee Cee Holding Ltd, the parent company that oversees six subsidiaries with operations strategically aligned to enhance local production, bolster regional trade, and fortify supply chain resilience. Forbes Africa
---------
Ghana targets $100m in private investments to cultivate 20,000 hectares of oil palm in move to cut imports
The government is pushing forward with a new Palm Industry Policy that will see 50,000 hectares of oil palm cultivated nationwide, positioning the crop as a major economic pillar alongside cocoa.
The first phase of the project, covering 20,000 hectares, will require an investment of $100 million, according to Minister for Finance Dr Cassiel Ato Forson.
Announcing the move in a Facebook post on Friday, April 4, 2025, Dr Forson said the policy forms part of a broader plan to reduce Ghana’s dependence on palm oil imports while creating jobs and boosting agribusiness growth.
“We are looking to attract private sector investment to cultivate 50,000 hectares of palm. For the first 20,000 hectares alone, we estimate a need for $100 million in investment,” Dr Forson stated.
He cited Malaysia’s successful transformation of its economy through oil palm cultivation as a model for Ghana to emulate. Despite being well-suited for oil palm production, Ghana remains a net importer of palm oil.
“We must reverse this. Our neighbour, Côte d’Ivoire, is already exporting, which underlines the urgency for Ghana to scale up,” he noted.
The Palm Industry Policy is expected to create thousands of jobs in rural communities and contribute to Ghana’s import substitution agenda.
Dr Forson revealed that, as part of plans to support the palm initiative and other high-impact sectors, the Ministry of Finance will soon set up a Real Sector Division. This new unit will identify and develop key areas of economic growth, particularly agribusiness and responsible mining. GraphicGH
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April 06, 2025
What effects will tariffs have on Indonesia's economy long-term?
Long-Term Effects of Tariffs on Indonesia's Economy
The recent increase in US tariffs, particularly the new 32% rate on Indonesian imports, is poised to have several profound long-term effects on the Indonesian economy. Here are the key implications based on recent reports and analyses:
1. Export Competitiveness Erosion
The increased tariffs are expected to significantly reduce the competitiveness of Indonesian exports to the US, particularly in the electronics, textiles, and palm oil sectors. Such tariffs can lead to a decrease in demand for Indonesian products, compelling businesses to navigate a more challenging export landscape that affects their revenue and market share 4.
2. Job Losses and Economic Slowdown
Economists have raised alarms about potential job losses, predicting that many sectors, particularly manufacturing, may face layoffs due to reduced export orders. For instance, the textile firm Sri Rejeki Isman (Sritex) recently collapsed, leading to the loss of over 10,000 jobs, highlighting the immediate impacts of trade policies on employment 12.
3. Currency Depreciation
Following the tariff announcement, the Indonesian rupiah has experienced significant depreciation, now trading at a 27-year low against the US dollar. This depreciation can lead to higher costs for imports, further straining domestic businesses reliant on foreign materials and technology 4.
4. Investment Hesitancy
With a more volatile economic climate, foreign investment might decline as potential investors weigh the risks posed by the trade barriers. Companies may find entering the Indonesian market less appealing amidst fears of additional tariffs and other protectionist measures. This skepticism could deter critical foreign direct investment needed for technological advancement and infrastructure development 13.
5. Strategic Economic Shifts
As a response to the tariffs, there may be a push for Indonesia to diversify its trade relationships, potentially strengthening ties with countries outside the US. The government is reportedly evaluating strategies that involve negotiating with the US and pivoting towards markets with which they have trade surpluses, like China and the BRICS nations 17.
6. Pressure on Domestic Markets and Consumer Purchasing Power
The impact of tariffs is likely to increase costs for consumers, putting additional pressure on household budgets. This situation can exacerbate existing economic challenges, especially as inflation typically rises in tune with reduced import supply and increased production costs 14.
Conclusions
Overall, the long-term effects of increased tariffs on Indonesia's economy appear to be largely negative, encompassing potential job losses, diminished export competitiveness, currency depreciation, and investment hesitancy. These factors can create a challenging environment for growth, reinforcing the need for strategic planning and diversification by the Indonesian government and businesses alike. Tech In Asia
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MPR calls for proactive measures against US reciprocal tariffs
Jakarta (ANTARA) - Deputy Chairman of the People's Consultative Assembly (MPR) Eddy Soeparno emphasized the need for the government to take proactive measures in responding to the reciprocal tariffs imposed by the US government.
According to Soeparno, one of the proactive steps that must be taken is to strengthen trade diplomacy to safeguard the national economy from negative impacts.
"We must not let our domestic industries suffer even more," Soeparno stated here on Saturday.
He pointed out that several manufacturers in sectors, such as sports footwear, electronics, and textiles, had already shut down.
Hence, he emphasized that engaging in trade diplomacy could be instrumental in obtaining tariff exemptions for several of Indonesia's flagship export products.
Besides bolstering trade diplomacy, he underscored the need for the government to expand Indonesia's export markets.
"At the start of the administration, President Prabowo has acted quickly by joining and becoming a permanent member of BRICS. Now, it is time to leverage our status as a permanent member of BRICS to expand export markets," he remarked.
He explained that this measure is vital so that Indonesia's trade balance is not adversely affected by protectionist policies from certain countries.
Furthermore, he stressed that the government still needs to enhance the competitiveness of national products.
"Domestic industries must be more innovative and efficient. The government needs to provide incentives for strategic industries so that we can compete globally, regardless of the policies of other countries," he stated.
Earlier, US President Donald Trump signed an executive order on Wednesday (April 2) imposing reciprocal tariffs on several countries.
As a result of this policy, all imports originating from Indonesia will be subjected to a tariff of 32 percent by the US government. Antara News
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Explore trade pact with US amid new tariff pressures, says expert
KUCHING: Malaysia could benefit from pursuing a free trade agreement with the United States to mitigate the impact of newly imposed tariffs, says Datuk Jonathan Chai Voon Tok
Commenting on the latest 24 per cent tariff placed on Malaysian exports by the US, the Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS) secretary-general noted that although the rate is lower than those imposed on some ASEAN countries—such as Vietnam, which faces tariffs between 46 to 49 per cent—the move adds pressure to local manufacturers.
He said the prevailing uncertainty and disruptions in the global supply chain may compel companies to reassess their cost structures or seek out alternative markets.
“Malaysian manufacturers—especially those in electronics, machinery, palm oil, and rubber products—are now facing higher export costs due to the new 24 percent tariff imposed by the US. This additional cost makes Malaysian goods more expensive for US buyers, potentially reducing demand and squeezing profit margins.
“In response, businesses might need to diversify their export destinations or enhance their value proposition to remain competitive.
“In parallel, accelerating discussions for key trade agreements with the European Union and the Gulf Cooperation Council—as well as leveraging existing agreements such as the Regional Comprehensive Economic Partnership, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the China–ASEAN Free Trade Agreement—will be crucial in expanding Malaysia’s trade opportunities,” he told Sarawak Tribune when contacted today (Apr 5).
Chai added that although the tariff directly targets exports, the ripple effects may eventually reach local consumers.
“Reduced export revenues could force exporters to cut production or raise domestic prices to cover losses, thereby contributing to inflation.
“Additionally, industries affected by the tariffs might scale back expansion or even reduce their workforce, impacting job prospects and local economic growth.
“Over time, these factors could drive up the cost of living and weaken consumer confidence while also causing short-to-medium term disruptions in global trade,” he added. Sarawak Tribune
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Sabah’s palm oil braces for tariffs impact
Kota Kinabalu: Sabah’s palm oil sector is bracing for impact following the United States’ decision to impose a 24 per cent reciprocal tariff on Malaysian palm oil effective April 9.
The move was announced by President Donald Trump on April 3 as part of a sweeping wave of trade measures targeting countries with high tariffs on American goods.
Federation of Sabah Industries (FSI) President Richard Lim said the tariffs could reduce export competitiveness, lower demand and place downward pressure on prices, ultimately affecting the livelihoods of smallholders in rural Sabah.
“Smallholders, who make up a majority of oil palm growers in Sabah, could see reduced incomes, threatening economic stability in rural communities,” he told Daily Express.
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Patanjali to cultivate 10,000 hectares of oil palm in Tripura
Agartala: Patanjali Foods has announced an ambitious plan to expand oil palm cultivation across 10,000 hectares in Tripura over the next two years.
The initiative is aimed at enhancing local production and creating an integrated business ecosystem to support farmers.
NER Head of Patanjali Foods, Ashok Kumar Singh, outlined the company’s plan to develop Tripura into a significant region for oil palm cultivation.
“Keeping this goal in mind, we have acquired 30 hectares of land in Tripura, which will serve as a one-stop solution. A mill will be set up, an oil palm nursery will be established, and a demo plantation along with a training center will be developed to provide practical guidance to farmers,” he stated.
Singh further highlighted that the work is scheduled to commence within the next three months.
Singh asserted that Tripura’s climate is ‘highly suitable for oil palm cultivation’ and emphasized Patanjali’s goal to expand this cultivation throughout the Northeast. Northeast News India
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Transforming Africa's palm oil industry: The untapped potential of biomass valorization
Eur Ing Hong Wai Onn, founder of RISEL and an award-winning chemical engineer, is a visionary leader in sustainable development and chemical engineering, committed to driving innovation and shaping a better future for Malaysia and beyond.
As Africa's palm oil industry continues to expand, innovative approaches to sustainability are becoming increasingly vital. Eur Ing Hong Wai Onn—a chartered chemical engineer, chartered environmentalist, and founder of the Research Institute for Sustainable Excellence and Leadership (RISEL), offers groundbreaking insights into how biomass valorization could revolutionize the sector across the continent.
Converting Agricultural Waste into Economic Opportunity
“We cannot continue to view palm biomass as waste,” Hong emphasizes. “Every strand of fiber, every discarded fruit bunch represents an untapped opportunity for innovation and sustainability.”
This perspective is particularly relevant for Nigeria, Ghana, and Ivory Coast, where palm oil production continues to grow as a vital economic sector. By implementing biomass valorization technologies, these countries could transform what is currently considered waste into valuable resources, effectively creating new revenue streams while simultaneously addressing environmental concerns.
A Dual Approach to Climate Mitigation
Hong's advocacy for biomass valorization extends beyond economic benefits to offer a concrete pathway for emissions reduction. “Biomass valorization is not just an industrial solution,” he explains, “it's a pathway to reducing carbon emissions and breaking our dependence on fossil fuels.”
The conversion of palm oil biomass into ethanol presents particularly promising opportunities. This bioethanol can be blended with conventional fuels, reducing fossil fuel consumption, or further upgraded through the Alcohol-to-Jet pathway to create Sustainable Aviation Fuel (SAF).
“This alternative route is becoming increasingly important,” Hong notes, “as the current focus on the Hydroprocessed Esters and Fatty Acids pathway will eventually face feedstock limitations.” With used cooking oil supplies becoming fully utilized, ethanol derived from palm biomass offers a more scalable and sustainable alternative for SAF production.
Beyond Ethanol: Diversifying Value-Added Products
The potential for biomass valorization extends beyond ethanol. Empty fruit bunches can also be processed into butanol, which serves as a drop-in fuel for maritime applications. Research in this area has advanced beyond laboratory and pilot stages, with plans for semi-commercial production plants already underway.
For African palm oil producers, these developments represent an opportunity to leapfrog traditional production methods and establish more advanced, environmentally conscious industries from the outset.
Strengthening Sustainability Standards
Hong has played a key role in shaping the Malaysian Sustainable Palm Oil (MSPO) Standards. His deep insights and extensive experience, particularly in the upstream sector, have been instrumental in strengthening Malaysia's sustainability framework. Business Insider Africa
What effects will tariffs have on Indonesia's economy long-term?
Long-Term Effects of Tariffs on Indonesia's Economy
The recent increase in US tariffs, particularly the new 32% rate on Indonesian imports, is poised to have several profound long-term effects on the Indonesian economy. Here are the key implications based on recent reports and analyses:
1. Export Competitiveness Erosion
The increased tariffs are expected to significantly reduce the competitiveness of Indonesian exports to the US, particularly in the electronics, textiles, and palm oil sectors. Such tariffs can lead to a decrease in demand for Indonesian products, compelling businesses to navigate a more challenging export landscape that affects their revenue and market share 4.
2. Job Losses and Economic Slowdown
Economists have raised alarms about potential job losses, predicting that many sectors, particularly manufacturing, may face layoffs due to reduced export orders. For instance, the textile firm Sri Rejeki Isman (Sritex) recently collapsed, leading to the loss of over 10,000 jobs, highlighting the immediate impacts of trade policies on employment 12.
3. Currency Depreciation
Following the tariff announcement, the Indonesian rupiah has experienced significant depreciation, now trading at a 27-year low against the US dollar. This depreciation can lead to higher costs for imports, further straining domestic businesses reliant on foreign materials and technology 4.
4. Investment Hesitancy
With a more volatile economic climate, foreign investment might decline as potential investors weigh the risks posed by the trade barriers. Companies may find entering the Indonesian market less appealing amidst fears of additional tariffs and other protectionist measures. This skepticism could deter critical foreign direct investment needed for technological advancement and infrastructure development 13.
5. Strategic Economic Shifts
As a response to the tariffs, there may be a push for Indonesia to diversify its trade relationships, potentially strengthening ties with countries outside the US. The government is reportedly evaluating strategies that involve negotiating with the US and pivoting towards markets with which they have trade surpluses, like China and the BRICS nations 17.
6. Pressure on Domestic Markets and Consumer Purchasing Power
The impact of tariffs is likely to increase costs for consumers, putting additional pressure on household budgets. This situation can exacerbate existing economic challenges, especially as inflation typically rises in tune with reduced import supply and increased production costs 14.
Conclusions
Overall, the long-term effects of increased tariffs on Indonesia's economy appear to be largely negative, encompassing potential job losses, diminished export competitiveness, currency depreciation, and investment hesitancy. These factors can create a challenging environment for growth, reinforcing the need for strategic planning and diversification by the Indonesian government and businesses alike. Tech In Asia
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MPR calls for proactive measures against US reciprocal tariffs
Jakarta (ANTARA) - Deputy Chairman of the People's Consultative Assembly (MPR) Eddy Soeparno emphasized the need for the government to take proactive measures in responding to the reciprocal tariffs imposed by the US government.
According to Soeparno, one of the proactive steps that must be taken is to strengthen trade diplomacy to safeguard the national economy from negative impacts.
"We must not let our domestic industries suffer even more," Soeparno stated here on Saturday.
He pointed out that several manufacturers in sectors, such as sports footwear, electronics, and textiles, had already shut down.
Hence, he emphasized that engaging in trade diplomacy could be instrumental in obtaining tariff exemptions for several of Indonesia's flagship export products.
Besides bolstering trade diplomacy, he underscored the need for the government to expand Indonesia's export markets.
"At the start of the administration, President Prabowo has acted quickly by joining and becoming a permanent member of BRICS. Now, it is time to leverage our status as a permanent member of BRICS to expand export markets," he remarked.
He explained that this measure is vital so that Indonesia's trade balance is not adversely affected by protectionist policies from certain countries.
Furthermore, he stressed that the government still needs to enhance the competitiveness of national products.
"Domestic industries must be more innovative and efficient. The government needs to provide incentives for strategic industries so that we can compete globally, regardless of the policies of other countries," he stated.
Earlier, US President Donald Trump signed an executive order on Wednesday (April 2) imposing reciprocal tariffs on several countries.
As a result of this policy, all imports originating from Indonesia will be subjected to a tariff of 32 percent by the US government. Antara News
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Explore trade pact with US amid new tariff pressures, says expert
KUCHING: Malaysia could benefit from pursuing a free trade agreement with the United States to mitigate the impact of newly imposed tariffs, says Datuk Jonathan Chai Voon Tok
Commenting on the latest 24 per cent tariff placed on Malaysian exports by the US, the Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS) secretary-general noted that although the rate is lower than those imposed on some ASEAN countries—such as Vietnam, which faces tariffs between 46 to 49 per cent—the move adds pressure to local manufacturers.
He said the prevailing uncertainty and disruptions in the global supply chain may compel companies to reassess their cost structures or seek out alternative markets.
“Malaysian manufacturers—especially those in electronics, machinery, palm oil, and rubber products—are now facing higher export costs due to the new 24 percent tariff imposed by the US. This additional cost makes Malaysian goods more expensive for US buyers, potentially reducing demand and squeezing profit margins.
“In response, businesses might need to diversify their export destinations or enhance their value proposition to remain competitive.
“In parallel, accelerating discussions for key trade agreements with the European Union and the Gulf Cooperation Council—as well as leveraging existing agreements such as the Regional Comprehensive Economic Partnership, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the China–ASEAN Free Trade Agreement—will be crucial in expanding Malaysia’s trade opportunities,” he told Sarawak Tribune when contacted today (Apr 5).
Chai added that although the tariff directly targets exports, the ripple effects may eventually reach local consumers.
“Reduced export revenues could force exporters to cut production or raise domestic prices to cover losses, thereby contributing to inflation.
“Additionally, industries affected by the tariffs might scale back expansion or even reduce their workforce, impacting job prospects and local economic growth.
“Over time, these factors could drive up the cost of living and weaken consumer confidence while also causing short-to-medium term disruptions in global trade,” he added. Sarawak Tribune
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Sabah’s palm oil braces for tariffs impact
Kota Kinabalu: Sabah’s palm oil sector is bracing for impact following the United States’ decision to impose a 24 per cent reciprocal tariff on Malaysian palm oil effective April 9.
The move was announced by President Donald Trump on April 3 as part of a sweeping wave of trade measures targeting countries with high tariffs on American goods.
Federation of Sabah Industries (FSI) President Richard Lim said the tariffs could reduce export competitiveness, lower demand and place downward pressure on prices, ultimately affecting the livelihoods of smallholders in rural Sabah.
“Smallholders, who make up a majority of oil palm growers in Sabah, could see reduced incomes, threatening economic stability in rural communities,” he told Daily Express.
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Patanjali to cultivate 10,000 hectares of oil palm in Tripura
Agartala: Patanjali Foods has announced an ambitious plan to expand oil palm cultivation across 10,000 hectares in Tripura over the next two years.
The initiative is aimed at enhancing local production and creating an integrated business ecosystem to support farmers.
NER Head of Patanjali Foods, Ashok Kumar Singh, outlined the company’s plan to develop Tripura into a significant region for oil palm cultivation.
“Keeping this goal in mind, we have acquired 30 hectares of land in Tripura, which will serve as a one-stop solution. A mill will be set up, an oil palm nursery will be established, and a demo plantation along with a training center will be developed to provide practical guidance to farmers,” he stated.
Singh further highlighted that the work is scheduled to commence within the next three months.
Singh asserted that Tripura’s climate is ‘highly suitable for oil palm cultivation’ and emphasized Patanjali’s goal to expand this cultivation throughout the Northeast. Northeast News India
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Transforming Africa's palm oil industry: The untapped potential of biomass valorization
Eur Ing Hong Wai Onn, founder of RISEL and an award-winning chemical engineer, is a visionary leader in sustainable development and chemical engineering, committed to driving innovation and shaping a better future for Malaysia and beyond.
As Africa's palm oil industry continues to expand, innovative approaches to sustainability are becoming increasingly vital. Eur Ing Hong Wai Onn—a chartered chemical engineer, chartered environmentalist, and founder of the Research Institute for Sustainable Excellence and Leadership (RISEL), offers groundbreaking insights into how biomass valorization could revolutionize the sector across the continent.
Converting Agricultural Waste into Economic Opportunity
“We cannot continue to view palm biomass as waste,” Hong emphasizes. “Every strand of fiber, every discarded fruit bunch represents an untapped opportunity for innovation and sustainability.”
This perspective is particularly relevant for Nigeria, Ghana, and Ivory Coast, where palm oil production continues to grow as a vital economic sector. By implementing biomass valorization technologies, these countries could transform what is currently considered waste into valuable resources, effectively creating new revenue streams while simultaneously addressing environmental concerns.
A Dual Approach to Climate Mitigation
Hong's advocacy for biomass valorization extends beyond economic benefits to offer a concrete pathway for emissions reduction. “Biomass valorization is not just an industrial solution,” he explains, “it's a pathway to reducing carbon emissions and breaking our dependence on fossil fuels.”
The conversion of palm oil biomass into ethanol presents particularly promising opportunities. This bioethanol can be blended with conventional fuels, reducing fossil fuel consumption, or further upgraded through the Alcohol-to-Jet pathway to create Sustainable Aviation Fuel (SAF).
“This alternative route is becoming increasingly important,” Hong notes, “as the current focus on the Hydroprocessed Esters and Fatty Acids pathway will eventually face feedstock limitations.” With used cooking oil supplies becoming fully utilized, ethanol derived from palm biomass offers a more scalable and sustainable alternative for SAF production.
Beyond Ethanol: Diversifying Value-Added Products
The potential for biomass valorization extends beyond ethanol. Empty fruit bunches can also be processed into butanol, which serves as a drop-in fuel for maritime applications. Research in this area has advanced beyond laboratory and pilot stages, with plans for semi-commercial production plants already underway.
For African palm oil producers, these developments represent an opportunity to leapfrog traditional production methods and establish more advanced, environmentally conscious industries from the outset.
Strengthening Sustainability Standards
Hong has played a key role in shaping the Malaysian Sustainable Palm Oil (MSPO) Standards. His deep insights and extensive experience, particularly in the upstream sector, have been instrumental in strengthening Malaysia's sustainability framework. Business Insider Africa
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April 05, 2025
Nations divided ahead of decisive week for shipping emissions
London (AFP) – Members of the International Maritime Organization (IMO) are divided over whether to approve a carbon tax on international shipping, ahead of a meeting starting on Monday to finalise emissions-reduction measures.
The carbon tax, the most ambitious measure on the table, would make it more expensive for shipping companies to emit greenhouse gases, encouraging them to curtail emissions.
But some member states, including China and Brazil, are proposing other measures, arguing the carbon levy would increase the cost of goods and contribute to food insecurity.
The IMO expects to come to an initial agreement by Friday next week on which mechanism to adopt to help reach carbon neutrality in shipping by 2050.
The stakes are high as shipping accounts for nearly three percent of global greenhouse gas emissions, according to the IMO.
"(It is) difficult to say what will happen next week," Fanny Pointet, sustainable shipping manager at European advocacy group, Transport and Environment, told AFP.
The United States has been notably quiet about the issue, having not commented since President Donald Trump returned to the White House.
The Pacific and Caribbean island states are leading the group pushing for a carbon tax, with support from other countries including the UK.
They argue that funds raised from a levy could be redistributed to nations most vulnerable to climate change to help adapt and mitigate its effects.
"Climate change is a terrifying lived reality for my country," said Albon Ishoda, the Marshall Islands' representative to the IMO.
'Terrifying lived reality'
However, around 15 countries strongly oppose the carbon levy, arguing it would exacerbate inequalities between nations and raise the costs of goods such as palm oil, cereals and corn.
Concerns are also mounting that the European Union, once a supporter of a carbon tax, could water down the measure in favour of a carbon credit system.
Such a system would allow companies or countries to buy and sell credits representing the right to emit a certain amount of carbon dioxide.
According to University College London research, the option of no levy presents the biggest risk to meeting the shipping sector's climate goals.
It could also distort fuel prices and create an uneven playing field, favouring states with strong industrial polices, such as China, researchers said.
"The fastest and cheapest energy transition is brought about by a strong levy," combined with a global fuel standard to reduce the carbon intensity of fuels used by ships, they added.
Challenges also remain with the fuel standard system, particularly the risk of using alternative fuels such as palm oil and soybean oil, which indirectly contribute to emissions through deforestation, Pointet explained.
While Brazil defends the key role of these biofuels, more than 60 environmental protection NGOs have raised objections to their inclusion in the future shipping fuel mix.
Other potential solutions include synthetic hydrogen-based fuels, currently very expensive to produce, or the installation of wind-powered propulsion systems onboard ship.
© 2025 AFP/ France 24
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Indonesia business group backs US talks over tariffs
JAKARTA: Indonesia's main business lobby has backed Jakarta to negotiate better terms with Washington after US President Donald Trump imposed hefty tariffs on goods from Southeast Asia's biggest economy.
Trump announced sweeping, harsher-than-expected global levies this week, punishing allies like security partner Indonesia for running a trade surplus with the economic superpower.
The escalation saw the archipelago nation hit with an additional 32 per cent levy on its goods, higher than the baseline 10 per cent for all countries and more than Southeast Asian neighbours Malaysia, Singapore and the Philippines.
Jakarta's foreign ministry said it would send a high-ranking delegation to Washington to negotiate a better deal.
Chief economic affairs minister Airlangga Hartarto called for the 10-member Association of Southeast Asian Nations (ASEAN) to coordinate its response to the tariffs.
"Synchronisation between ASEAN countries is needed, because of the 10 ASEAN countries, all are affected by the US reciprocal tariff policy, so it is necessary to collectively build communication and engagement with the US Government," he said in a statement on Friday (Apr 4).
The tariffs were just "an opening statement", said Indonesian Chamber of Commerce and Industry (Kadin) chair Anindya Novyan Bakrie in a statement late Thursday. CNA
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Indonesia seeks negotiations with US on Trump’s tariffs, pledges to ease trade barriers
JAKARTA - Indonesia has pledged to ease trade rules as it seeks to negotiate with the US on the latter’s plan to impose a 32 per cent tariff on products from South-east Asia’s largest economy.
President Prabowo Subianto ordered his Cabinet to simplify regulations, including by easing non-tariff barriers, after the US announced the reciprocal tariff on Indonesia, the Coordinating Ministry of Economic Affairs said in a statement on April 3.
The government is now calculating the impact of the tariff, which will hit mainly export-reliant industries such as textiles, electronics and palm oil, according to the ministry. Officials will send a delegation to Washington to negotiate the tariffs slated to take effect on April 9.
“This is in line with efforts to increase competitiveness, maintain market players’ trust and attract investment to maintain the momentum of economic growth,” the ministry said.
Coordinating Minister for Economic Affairs Airlangga Hartarto held a video conference with US Representative Carol Miller on April 1, before the tariff announcement. They discussed potential areas of cooperation between the two nations, including on food like soya beans and wheat, the clean-economy sector such as carbon capture and storage, as well as critical minerals.
Indonesia is also in talks with Malaysia, which is the current chair of Asean, to jointly take steps in addressing the tariffs, the ministry said. Straits Times
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Productivity enhancement, area expansion are the key to success for oil palm industry in India
The government and oil palm developers-cum-processors should jointly ensure that effective area expansion takes place across India
In India, our domestic production of edible oils (12.7 million tonnes) during the oil year 2023-24 (Nov’23- Oct’24) falls far short of the country’s consumption requirement (more than 28 million tonnes) during the corresponding period. The traditional oil seeds are grown on about 30 million hectares (ha) in India with a total production of 42.8 million tonnes (estimated). This translates to an average productivity of oil seeds of 1.42 tonnes per ha per year. Oilseeds account for 13 per cent of gross cropped area and around 10 per cent of the total value of output from all agricultural commodities. The Indian demand–supply gap in edible oils is widening. The foreign exchange outgo for purchasing edible oils (as essential commodity) is around $15.96 billion during the oil year 2023-24.
If India wants to produce as much edible oil as it is consuming through its traditionally grown oil seeds, the country will need at least 30 million ha under cultivation, and this is impossible to achieve (ref. only palm oil can help India achieve self-sufficiency in edible oil- Ashok Gulati). Value-added crops such as oil palm (OP) should be continued, and grown sustainably and extensively through crop conversion in agricultural field.
As of FY2024- 25, India produced around 0.45 million tonnes of crude palm oil (CPO) tentatively and is expected to increase to more than 1. 2 million tonnes by FY2030-31. The problem that holds back the quick expansion of OP cultivation and its productivity is mainly high capital investment, which is a roadblock. There is a huge mental block too for small farmers, since they believe any change would be recipe for disaster, so far crop conversion is concerned. The Hindu Businessline
Nations divided ahead of decisive week for shipping emissions
London (AFP) – Members of the International Maritime Organization (IMO) are divided over whether to approve a carbon tax on international shipping, ahead of a meeting starting on Monday to finalise emissions-reduction measures.
The carbon tax, the most ambitious measure on the table, would make it more expensive for shipping companies to emit greenhouse gases, encouraging them to curtail emissions.
But some member states, including China and Brazil, are proposing other measures, arguing the carbon levy would increase the cost of goods and contribute to food insecurity.
The IMO expects to come to an initial agreement by Friday next week on which mechanism to adopt to help reach carbon neutrality in shipping by 2050.
The stakes are high as shipping accounts for nearly three percent of global greenhouse gas emissions, according to the IMO.
"(It is) difficult to say what will happen next week," Fanny Pointet, sustainable shipping manager at European advocacy group, Transport and Environment, told AFP.
The United States has been notably quiet about the issue, having not commented since President Donald Trump returned to the White House.
The Pacific and Caribbean island states are leading the group pushing for a carbon tax, with support from other countries including the UK.
They argue that funds raised from a levy could be redistributed to nations most vulnerable to climate change to help adapt and mitigate its effects.
"Climate change is a terrifying lived reality for my country," said Albon Ishoda, the Marshall Islands' representative to the IMO.
'Terrifying lived reality'
However, around 15 countries strongly oppose the carbon levy, arguing it would exacerbate inequalities between nations and raise the costs of goods such as palm oil, cereals and corn.
Concerns are also mounting that the European Union, once a supporter of a carbon tax, could water down the measure in favour of a carbon credit system.
Such a system would allow companies or countries to buy and sell credits representing the right to emit a certain amount of carbon dioxide.
According to University College London research, the option of no levy presents the biggest risk to meeting the shipping sector's climate goals.
It could also distort fuel prices and create an uneven playing field, favouring states with strong industrial polices, such as China, researchers said.
"The fastest and cheapest energy transition is brought about by a strong levy," combined with a global fuel standard to reduce the carbon intensity of fuels used by ships, they added.
Challenges also remain with the fuel standard system, particularly the risk of using alternative fuels such as palm oil and soybean oil, which indirectly contribute to emissions through deforestation, Pointet explained.
While Brazil defends the key role of these biofuels, more than 60 environmental protection NGOs have raised objections to their inclusion in the future shipping fuel mix.
Other potential solutions include synthetic hydrogen-based fuels, currently very expensive to produce, or the installation of wind-powered propulsion systems onboard ship.
© 2025 AFP/ France 24
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Indonesia business group backs US talks over tariffs
JAKARTA: Indonesia's main business lobby has backed Jakarta to negotiate better terms with Washington after US President Donald Trump imposed hefty tariffs on goods from Southeast Asia's biggest economy.
Trump announced sweeping, harsher-than-expected global levies this week, punishing allies like security partner Indonesia for running a trade surplus with the economic superpower.
The escalation saw the archipelago nation hit with an additional 32 per cent levy on its goods, higher than the baseline 10 per cent for all countries and more than Southeast Asian neighbours Malaysia, Singapore and the Philippines.
Jakarta's foreign ministry said it would send a high-ranking delegation to Washington to negotiate a better deal.
Chief economic affairs minister Airlangga Hartarto called for the 10-member Association of Southeast Asian Nations (ASEAN) to coordinate its response to the tariffs.
"Synchronisation between ASEAN countries is needed, because of the 10 ASEAN countries, all are affected by the US reciprocal tariff policy, so it is necessary to collectively build communication and engagement with the US Government," he said in a statement on Friday (Apr 4).
The tariffs were just "an opening statement", said Indonesian Chamber of Commerce and Industry (Kadin) chair Anindya Novyan Bakrie in a statement late Thursday. CNA
---------
Indonesia seeks negotiations with US on Trump’s tariffs, pledges to ease trade barriers
JAKARTA - Indonesia has pledged to ease trade rules as it seeks to negotiate with the US on the latter’s plan to impose a 32 per cent tariff on products from South-east Asia’s largest economy.
President Prabowo Subianto ordered his Cabinet to simplify regulations, including by easing non-tariff barriers, after the US announced the reciprocal tariff on Indonesia, the Coordinating Ministry of Economic Affairs said in a statement on April 3.
The government is now calculating the impact of the tariff, which will hit mainly export-reliant industries such as textiles, electronics and palm oil, according to the ministry. Officials will send a delegation to Washington to negotiate the tariffs slated to take effect on April 9.
“This is in line with efforts to increase competitiveness, maintain market players’ trust and attract investment to maintain the momentum of economic growth,” the ministry said.
Coordinating Minister for Economic Affairs Airlangga Hartarto held a video conference with US Representative Carol Miller on April 1, before the tariff announcement. They discussed potential areas of cooperation between the two nations, including on food like soya beans and wheat, the clean-economy sector such as carbon capture and storage, as well as critical minerals.
Indonesia is also in talks with Malaysia, which is the current chair of Asean, to jointly take steps in addressing the tariffs, the ministry said. Straits Times
---------
Productivity enhancement, area expansion are the key to success for oil palm industry in India
The government and oil palm developers-cum-processors should jointly ensure that effective area expansion takes place across India
In India, our domestic production of edible oils (12.7 million tonnes) during the oil year 2023-24 (Nov’23- Oct’24) falls far short of the country’s consumption requirement (more than 28 million tonnes) during the corresponding period. The traditional oil seeds are grown on about 30 million hectares (ha) in India with a total production of 42.8 million tonnes (estimated). This translates to an average productivity of oil seeds of 1.42 tonnes per ha per year. Oilseeds account for 13 per cent of gross cropped area and around 10 per cent of the total value of output from all agricultural commodities. The Indian demand–supply gap in edible oils is widening. The foreign exchange outgo for purchasing edible oils (as essential commodity) is around $15.96 billion during the oil year 2023-24.
If India wants to produce as much edible oil as it is consuming through its traditionally grown oil seeds, the country will need at least 30 million ha under cultivation, and this is impossible to achieve (ref. only palm oil can help India achieve self-sufficiency in edible oil- Ashok Gulati). Value-added crops such as oil palm (OP) should be continued, and grown sustainably and extensively through crop conversion in agricultural field.
As of FY2024- 25, India produced around 0.45 million tonnes of crude palm oil (CPO) tentatively and is expected to increase to more than 1. 2 million tonnes by FY2030-31. The problem that holds back the quick expansion of OP cultivation and its productivity is mainly high capital investment, which is a roadblock. There is a huge mental block too for small farmers, since they believe any change would be recipe for disaster, so far crop conversion is concerned. The Hindu Businessline
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April 04, 2025
Trump's tariffs roil company plans, threatening exports and investment
FRANKFURT/DETROIT/NEW YORK, April 3 (Reuters) - Businesses around the globe on Thursday faced up to a future of higher prices, trade turmoil and reduced access to the world's largest market after U.S. President Donald Trump confirmed their worst fears by instituting broad tariffs worldwide.
Trump ramped up his trade war with tariff rates from 10% to nearly 50%. He says the levies will bring jobs back to the United States, but company executives were focused on possible increases to prices, reducing shipments or cutting back investment activity outright. But markets shuddered at Trump's actions, which could undo decades of global trade patterns - and take many years of adjustment.
"If you say it's fairly certain the economy is going to go down 2% for the next 2 years, you can manage that," said Bill George, former Medtronic CEO and executive fellow at Harvard Business School. "Now, we have this lack of certainty and lack of predictability for what the policies are going to be, and it'll cause people to go into a holding pattern."
Shipping companies, one of the main conduits of global trade, were among the first to sound the alarm while many other business leaders kept a low profile as they pondered the new reality. Reuters
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Indonesia responds to U.S. tariffs with strategic measures, diplomatic engagement
JAKARTA, April 3 (Xinhua) -- The Indonesian government is taking strategic steps and intensifying diplomatic efforts to mitigate the impact of the U.S. 32 percent tariff on key exports, according to a press release from the Coordinating Ministry for Economic Affairs on Thursday.
The tariff, set to take effect on April 9, is expected to affect Indonesia's exports of electronics, textiles, footwear, palm oil, rubber, and fisheries to the U.S. market.
In response, the Indonesian government has begun assessing the potential economic impact and is preparing measures to mitigate risks.
Susiwijono Moegiarso, secretary of the coordinating ministry for economic affairs, said that the Indonesian government remains committed to stabilizing Government Securities yields amid global financial market uncertainty following the announcement of the U.S. tariffs.
"Together with Bank Indonesia, the government is ensuring the stability of the Rupiah exchange rate and maintaining foreign exchange liquidity to support business needs and overall economic stability," he said in the press release.
Beyond economic measures, Susiwijono said Indonesia is ramping up diplomatic efforts to address trade concerns.
He noted that President Prabowo Subianto has instructed the cabinet to implement structural reforms and streamline regulations, particularly those related to Non-Tariff Measures, to enhance Indonesia's trade competitiveness.
Indonesia is also working with Malaysia, the current chair of the Association of Southeast Asian Nations (ASEAN), to formulate a regional response, as all 10 ASEAN members will face similar U.S. tariffs, he added. Xin Hua News
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Indonesian palm oil producers eye African, Middle Eastern markets as US tariffs take effect
Indonesia exported $26.3 billion worth of goods to the US while importing only $9.5 billion, with key exports including electrical equipment, clothing and footwear, CPO and rubber.
This article was published in thejakartapost.com with the title "". Click to read: https://www.thejakartapost.com/business/2025/04/04/ri-palm-oil-producers-eye-african-middle-eastern-markets-as-us-tariffs-take-effect.html.
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Indonesia Reclaims 1 Million Hectares of Palm Oil Plantations from 369 Companies
PALMOILMAGAZINE, JAKARTA – The Indonesian government has successfully reclaimed over 1 million hectares of palm oil plantations previously managed by 369 companies. This move was executed within two months of the implementation of Presidential Regulation (Perpres) No. 5 of 2025 on Forest Area Regulation.
Minister of Defense Sjafrie Sjamsoeddin stated that this initiative is part of the government’s efforts to enforce regulations regarding forest management. “The government has reclaimed over 1 million hectares of palm oil land in just two months, and these areas will be managed according to the prevailing regulations,” said Sjafrie at the Attorney General’s Office, as quoted by Palmoilmagazine.com from Kabar24.com, Wednesday (26/3/2025).
Click to read: https://www.palmoilmagazine.com/agrinas/2025/04/04/indonesia-reclaims-1-million-hectares-of-palm-oil-plantations-from-369-companies/
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EU Says Trump’s Tariffs Will Harm Indonesia, Plans to Speed Up Trade Pact Talks
Jakarta. The European Union recently said that US President Donald Trump’s tariff salvo would deal a devastating blow to developing economies like Indonesia. As the world scrambles to respond to the tariffs, Europe is also looking to secure a free trade agreement with the Southeast Asian nation.
Trump has made international headlines by launching sweeping “reciprocal” tariffs to get rid of trade imbalances on what he called the “Liberation Day”. Trump decided to slap a 20 percent tariff on EU goods, and the European bloc has prepared some countermeasures. European Parliament’s trade chief Bernd Lange recently told reporters that it was unfair that Global South economies were also hit by Trump’s tariffs, some even at a much higher rate compared to that of the EU.
The Global South often refers to the various countries across the globe that fall into the developing countries. Indonesia identifies as being part of the Global South, and its US-bound exports are about to face a 32 percent tariff.
“These [tariffs] will harm the people on the ground, including producers in the US, EU, and specifically the countries of the Global South,” Lange said on Eudebates TV.
Lange added: “We [the EU] are harmed by the measures, but of course, [economies] like Indonesia are facing over 30 percent in tariffs. … We want to stabilize the economic development of the Global South countries. This is a counterproductive action. This will have a lot of negative consequences on Indonesia.” Jakarta Globe
Trump's tariffs roil company plans, threatening exports and investment
FRANKFURT/DETROIT/NEW YORK, April 3 (Reuters) - Businesses around the globe on Thursday faced up to a future of higher prices, trade turmoil and reduced access to the world's largest market after U.S. President Donald Trump confirmed their worst fears by instituting broad tariffs worldwide.
Trump ramped up his trade war with tariff rates from 10% to nearly 50%. He says the levies will bring jobs back to the United States, but company executives were focused on possible increases to prices, reducing shipments or cutting back investment activity outright. But markets shuddered at Trump's actions, which could undo decades of global trade patterns - and take many years of adjustment.
"If you say it's fairly certain the economy is going to go down 2% for the next 2 years, you can manage that," said Bill George, former Medtronic CEO and executive fellow at Harvard Business School. "Now, we have this lack of certainty and lack of predictability for what the policies are going to be, and it'll cause people to go into a holding pattern."
Shipping companies, one of the main conduits of global trade, were among the first to sound the alarm while many other business leaders kept a low profile as they pondered the new reality. Reuters
---------
Indonesia responds to U.S. tariffs with strategic measures, diplomatic engagement
JAKARTA, April 3 (Xinhua) -- The Indonesian government is taking strategic steps and intensifying diplomatic efforts to mitigate the impact of the U.S. 32 percent tariff on key exports, according to a press release from the Coordinating Ministry for Economic Affairs on Thursday.
The tariff, set to take effect on April 9, is expected to affect Indonesia's exports of electronics, textiles, footwear, palm oil, rubber, and fisheries to the U.S. market.
In response, the Indonesian government has begun assessing the potential economic impact and is preparing measures to mitigate risks.
Susiwijono Moegiarso, secretary of the coordinating ministry for economic affairs, said that the Indonesian government remains committed to stabilizing Government Securities yields amid global financial market uncertainty following the announcement of the U.S. tariffs.
"Together with Bank Indonesia, the government is ensuring the stability of the Rupiah exchange rate and maintaining foreign exchange liquidity to support business needs and overall economic stability," he said in the press release.
Beyond economic measures, Susiwijono said Indonesia is ramping up diplomatic efforts to address trade concerns.
He noted that President Prabowo Subianto has instructed the cabinet to implement structural reforms and streamline regulations, particularly those related to Non-Tariff Measures, to enhance Indonesia's trade competitiveness.
Indonesia is also working with Malaysia, the current chair of the Association of Southeast Asian Nations (ASEAN), to formulate a regional response, as all 10 ASEAN members will face similar U.S. tariffs, he added. Xin Hua News
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Indonesian palm oil producers eye African, Middle Eastern markets as US tariffs take effect
Indonesia exported $26.3 billion worth of goods to the US while importing only $9.5 billion, with key exports including electrical equipment, clothing and footwear, CPO and rubber.
This article was published in thejakartapost.com with the title "". Click to read: https://www.thejakartapost.com/business/2025/04/04/ri-palm-oil-producers-eye-african-middle-eastern-markets-as-us-tariffs-take-effect.html.
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Indonesia Reclaims 1 Million Hectares of Palm Oil Plantations from 369 Companies
PALMOILMAGAZINE, JAKARTA – The Indonesian government has successfully reclaimed over 1 million hectares of palm oil plantations previously managed by 369 companies. This move was executed within two months of the implementation of Presidential Regulation (Perpres) No. 5 of 2025 on Forest Area Regulation.
Minister of Defense Sjafrie Sjamsoeddin stated that this initiative is part of the government’s efforts to enforce regulations regarding forest management. “The government has reclaimed over 1 million hectares of palm oil land in just two months, and these areas will be managed according to the prevailing regulations,” said Sjafrie at the Attorney General’s Office, as quoted by Palmoilmagazine.com from Kabar24.com, Wednesday (26/3/2025).
Click to read: https://www.palmoilmagazine.com/agrinas/2025/04/04/indonesia-reclaims-1-million-hectares-of-palm-oil-plantations-from-369-companies/
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EU Says Trump’s Tariffs Will Harm Indonesia, Plans to Speed Up Trade Pact Talks
Jakarta. The European Union recently said that US President Donald Trump’s tariff salvo would deal a devastating blow to developing economies like Indonesia. As the world scrambles to respond to the tariffs, Europe is also looking to secure a free trade agreement with the Southeast Asian nation.
Trump has made international headlines by launching sweeping “reciprocal” tariffs to get rid of trade imbalances on what he called the “Liberation Day”. Trump decided to slap a 20 percent tariff on EU goods, and the European bloc has prepared some countermeasures. European Parliament’s trade chief Bernd Lange recently told reporters that it was unfair that Global South economies were also hit by Trump’s tariffs, some even at a much higher rate compared to that of the EU.
The Global South often refers to the various countries across the globe that fall into the developing countries. Indonesia identifies as being part of the Global South, and its US-bound exports are about to face a 32 percent tariff.
“These [tariffs] will harm the people on the ground, including producers in the US, EU, and specifically the countries of the Global South,” Lange said on Eudebates TV.
Lange added: “We [the EU] are harmed by the measures, but of course, [economies] like Indonesia are facing over 30 percent in tariffs. … We want to stabilize the economic development of the Global South countries. This is a counterproductive action. This will have a lot of negative consequences on Indonesia.” Jakarta Globe
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April 03, 2025
Trump slaps Indonesia with 32-percent tariff
Jakarta (ANTARA) - US President Donald Trump has imposed a near-universal tariff on products imported from foreign countries to the United States, with Indonesia not being an exception.
As published by the White House Instagram account and observed here on Thursday, Indonesia was slapped with a 32-percent import tariff.
The so-called "reciprocal tariff" imposed by the US targets Indonesia and at least 60 other countries. The US government claims Indonesia charges a 64-percent import tariff on its products.
Indonesia was not the only Southeast Asian country hit by the tariff; fellow ASEAN members Cambodia, Vietnam, Thailand, and Malaysia received 49, 46, 36, and 24-percent tariffs, respectively.
The Trump administration also imposed a 10-percent basic tariff on other countries, including trade partners like the United Kingdom, and a 39-percent tariff on the European Union.
As reported by Kyodo news agency, Trump called the reciprocal tariff imposition the "Liberation Day" for the United States and said it aims to create more jobs domestically.
The president also alleged that the US has long been "disadvantaged" by many countries due to "unfair trade practices."
Since returning to the White House last January, Trump has imposed new tariffs on various commodities, including 25-percent levies on all cars produced outside the US and all imported steel and aluminum products.
According to a White House official, the 10-percent universal tariff will be enforced on Saturday (April 5), while the reciprocal tariffs against Indonesia and 60 other countries will apply next Wednesday (April 9). Antara News
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Malaysia hit with 24% US reciprocal tariff effective April 9
KUALA LUMPUR (April 3): Effective April 9, Malaysia will face a 24% reciprocal tariff from the US as part of a broad trade policy targeting countries with which it has the largest trade deficits.
The higher tariff however does not cover all goods headed for the US. Semiconductors are among goods that have been exempted from the 24% tariff.
Malaysia runs a trade surplus with the US, exporting mostly electronics, palm oil, and machinery to the world’s largest economy. In November last year, Malaysia was removed from US’ monitoring list for currency manipulation of its major trading partners.
The US' reciprocal tariff policy imposes individualised reciprocal higher tariff on the countries with which the US has the largest trade deficits. All other countries will be subject to a 10% tariff baseline. The list of goods exempted from the higher tariffs are either because they are already tariffed or are soon to be tariffed.
The US has imposed individualised tariff rates of up to 50% on major trading partners, with China facing a 34% import duty. However, Canada and Mexico are exempt from these reciprocal tariffs due to existing trade agreements. The Edge
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EU palm oil imports drop
The European Union (EU) imported significantly less palm oil between July 2024 and early March 2025 than in the same period the previous year, according to EU Commission (EC) data reported by Germany’s Union for the Promotion of Plants and Protein (UFOP).
Just under 1.9M tonnes of palm oil were imported by the EU in the period, compared to 2.4M tonnes in the same period the previous year, and 2.8M tonnes between July 2022 and March 2023, the 19 March report said.
Indonesia remained the leading supplier, with 608,100 tonnes.
However, the country’s shipments between July and early March dropped by 23% year-on-year, while imports from Malaysia, the second largest supplier, declined around 30% to 426,000 tonnes.
According to research by Agrarmarkt Informations-Gesellschaft, the slowdown in shipments from Guatemala was even sharper, at 37%. Papua New Guinea was the only country of origin to marginally increase its delivery volumes during the stated period.
According to UFOP, the decline in EU palm oil imports is due to the expiration of the EU Renewable Energy Directive (RED II) provision allowing biofuels from palm oil to be credited, which is set to end by 2030. OFI Magazine
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MPOC sees palm oil prices stabilising in near term amid rising demand from India
Palm oil prices are expected to stabilise in the near-term, driven by a recovery in production and demand from key importing markets such as India, according to the Malaysian Palm Oil Council (MPOC).
Its chief executive officer Belvinder Kaur said weaker palm oil imports from December 2024 to February 2025 had led to a sharp decline in India’s vegetable oil inventories.
“Despite a surge in soybean oil imports over the past three months, India has only partially replaced its palm oil demand.
“Given this scenario, there is optimism that India will increase palm oil imports in the coming weeks to replenish stocks, supporting palm oil prices,” she told Bernama.
Belvinder also said that the volatility of crude palm oil (CPO) prices is heavily influenced by global supply and demand dynamics.
As of February 2025, Malaysia’s palm oil inventory stood at 1.51 million tonnes, down from 1.92 million tonnes in February 2024 and 2.11 million tonnes in February 2023.
“With seasonal production recovery from March onwards, Malaysia’s palm oil inventory is expected to rise gradually to meet global demand without creating supply pressure,” she said.
Recently, MPOC projected CPO prices to fluctuate between RM4,400 and RM4,600 in March 2025, influenced by increased competition from abundant and competitively priced soybean oil in the global market.
The council said that high palm oil prices and tight export supplies have impacted consumption in key markets such as India and China, particularly in the first two months of this year.
Minimal impact of US tariffs on palm oil
In 2024, the United States imported 191,000 tonnes of palm oil from Malaysia, accounting for 1.1% of Malaysia’s total palm oil exports.
Belvinder said that while the volume is relatively small compared to Malaysia’s overall palm oil exports, the US remains an important market due to its specialised demand.
“Malaysian palm oil exported to the US is primarily used in specialised applications where substitute options are limited, making demand relatively inelastic.
“About 65% of Malaysian palm oil exports to the US are certified and used in high-value products, while 20% consists of palm stearin, a key ingredient in food manufacturing and personal care products,” she said.
Given these factors, Belvinder said that the impact of potential US import tariffs on Malaysia’s palm oil industry is expected to be minimal.
“The specialised nature of US palm oil demand ensures that the market remains relatively resilient to trade policy changes,” she said.
Festive season to boost palm oil demand
Belvinder also noted that Malaysia’s domestic palm oil consumption averages around 300,000 tonnes per month, with demand typically rising during festive seasons such as Ramadan and Hari Raya.
“Palm oil production follows a seasonal pattern, usually declining from October to February. Adverse weather conditions can make harvesting more challenging, while excessive rainfall reduces fresh fruit bunch (FFB) yields,” she said.
However, Belvinder assured that Malaysia’s palm oil production is expected to recover gradually from March onwards, ensuring sufficient supply for the domestic market.
“We do not foresee any shortages of palm oil supply in Malaysia,” she added. UKRAgroconsult
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Trump slaps Indonesia with 32-percent tariff
Jakarta (ANTARA) - US President Donald Trump has imposed a near-universal tariff on products imported from foreign countries to the United States, with Indonesia not being an exception.
As published by the White House Instagram account and observed here on Thursday, Indonesia was slapped with a 32-percent import tariff.
The so-called "reciprocal tariff" imposed by the US targets Indonesia and at least 60 other countries. The US government claims Indonesia charges a 64-percent import tariff on its products.
Indonesia was not the only Southeast Asian country hit by the tariff; fellow ASEAN members Cambodia, Vietnam, Thailand, and Malaysia received 49, 46, 36, and 24-percent tariffs, respectively.
The Trump administration also imposed a 10-percent basic tariff on other countries, including trade partners like the United Kingdom, and a 39-percent tariff on the European Union.
As reported by Kyodo news agency, Trump called the reciprocal tariff imposition the "Liberation Day" for the United States and said it aims to create more jobs domestically.
The president also alleged that the US has long been "disadvantaged" by many countries due to "unfair trade practices."
Since returning to the White House last January, Trump has imposed new tariffs on various commodities, including 25-percent levies on all cars produced outside the US and all imported steel and aluminum products.
According to a White House official, the 10-percent universal tariff will be enforced on Saturday (April 5), while the reciprocal tariffs against Indonesia and 60 other countries will apply next Wednesday (April 9). Antara News
---------
Malaysia hit with 24% US reciprocal tariff effective April 9
KUALA LUMPUR (April 3): Effective April 9, Malaysia will face a 24% reciprocal tariff from the US as part of a broad trade policy targeting countries with which it has the largest trade deficits.
The higher tariff however does not cover all goods headed for the US. Semiconductors are among goods that have been exempted from the 24% tariff.
Malaysia runs a trade surplus with the US, exporting mostly electronics, palm oil, and machinery to the world’s largest economy. In November last year, Malaysia was removed from US’ monitoring list for currency manipulation of its major trading partners.
The US' reciprocal tariff policy imposes individualised reciprocal higher tariff on the countries with which the US has the largest trade deficits. All other countries will be subject to a 10% tariff baseline. The list of goods exempted from the higher tariffs are either because they are already tariffed or are soon to be tariffed.
The US has imposed individualised tariff rates of up to 50% on major trading partners, with China facing a 34% import duty. However, Canada and Mexico are exempt from these reciprocal tariffs due to existing trade agreements. The Edge
---------
EU palm oil imports drop
The European Union (EU) imported significantly less palm oil between July 2024 and early March 2025 than in the same period the previous year, according to EU Commission (EC) data reported by Germany’s Union for the Promotion of Plants and Protein (UFOP).
Just under 1.9M tonnes of palm oil were imported by the EU in the period, compared to 2.4M tonnes in the same period the previous year, and 2.8M tonnes between July 2022 and March 2023, the 19 March report said.
Indonesia remained the leading supplier, with 608,100 tonnes.
However, the country’s shipments between July and early March dropped by 23% year-on-year, while imports from Malaysia, the second largest supplier, declined around 30% to 426,000 tonnes.
According to research by Agrarmarkt Informations-Gesellschaft, the slowdown in shipments from Guatemala was even sharper, at 37%. Papua New Guinea was the only country of origin to marginally increase its delivery volumes during the stated period.
According to UFOP, the decline in EU palm oil imports is due to the expiration of the EU Renewable Energy Directive (RED II) provision allowing biofuels from palm oil to be credited, which is set to end by 2030. OFI Magazine
----------
MPOC sees palm oil prices stabilising in near term amid rising demand from India
Palm oil prices are expected to stabilise in the near-term, driven by a recovery in production and demand from key importing markets such as India, according to the Malaysian Palm Oil Council (MPOC).
Its chief executive officer Belvinder Kaur said weaker palm oil imports from December 2024 to February 2025 had led to a sharp decline in India’s vegetable oil inventories.
“Despite a surge in soybean oil imports over the past three months, India has only partially replaced its palm oil demand.
“Given this scenario, there is optimism that India will increase palm oil imports in the coming weeks to replenish stocks, supporting palm oil prices,” she told Bernama.
Belvinder also said that the volatility of crude palm oil (CPO) prices is heavily influenced by global supply and demand dynamics.
As of February 2025, Malaysia’s palm oil inventory stood at 1.51 million tonnes, down from 1.92 million tonnes in February 2024 and 2.11 million tonnes in February 2023.
“With seasonal production recovery from March onwards, Malaysia’s palm oil inventory is expected to rise gradually to meet global demand without creating supply pressure,” she said.
Recently, MPOC projected CPO prices to fluctuate between RM4,400 and RM4,600 in March 2025, influenced by increased competition from abundant and competitively priced soybean oil in the global market.
The council said that high palm oil prices and tight export supplies have impacted consumption in key markets such as India and China, particularly in the first two months of this year.
Minimal impact of US tariffs on palm oil
In 2024, the United States imported 191,000 tonnes of palm oil from Malaysia, accounting for 1.1% of Malaysia’s total palm oil exports.
Belvinder said that while the volume is relatively small compared to Malaysia’s overall palm oil exports, the US remains an important market due to its specialised demand.
“Malaysian palm oil exported to the US is primarily used in specialised applications where substitute options are limited, making demand relatively inelastic.
“About 65% of Malaysian palm oil exports to the US are certified and used in high-value products, while 20% consists of palm stearin, a key ingredient in food manufacturing and personal care products,” she said.
Given these factors, Belvinder said that the impact of potential US import tariffs on Malaysia’s palm oil industry is expected to be minimal.
“The specialised nature of US palm oil demand ensures that the market remains relatively resilient to trade policy changes,” she said.
Festive season to boost palm oil demand
Belvinder also noted that Malaysia’s domestic palm oil consumption averages around 300,000 tonnes per month, with demand typically rising during festive seasons such as Ramadan and Hari Raya.
“Palm oil production follows a seasonal pattern, usually declining from October to February. Adverse weather conditions can make harvesting more challenging, while excessive rainfall reduces fresh fruit bunch (FFB) yields,” she said.
However, Belvinder assured that Malaysia’s palm oil production is expected to recover gradually from March onwards, ensuring sufficient supply for the domestic market.
“We do not foresee any shortages of palm oil supply in Malaysia,” she added. UKRAgroconsult
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April 02, 2025
OGCI studies aim to accelerate hydrogen and biofuels adoption to decarbonise transport
The Oil and Gas Climate Initiative (OGCI), a coalition of 12 leading global energy companies, is strengthening its efforts to enable decarbonisation of the transport sector, one of the largest sources of global CO₂ emissions.
With a decade of progress, including halving methane emissions and cutting flaring by 45%, OGCI is exploring technologies to tackle transportation's carbon footprint.
Since 2017, OGCI members have invested nearly $100 billion (€0.93 billion) in low-carbon technologies such as biofuels and carbon capture, highlighting their commitment to effective climate solutions. Building on these efforts, OGCI looked at hydrogen and biofuels as ways to reduce CO₂ emissions from transport, showcasing the role of oil and gas companies can play in addressing climate change.
Recent studies highlight promising technologies that could transform the sector’s carbon footprint. Hydrogen is seen as a key solution for decarbonizing some sectors of the industry, especially heavy-duty transport.
In the maritime sector, biofuels offer a significant emissions reduction opportunity. The Biomass for Marine 2025 study, developed with Argus Media, forecasts a large increase in global biomass availability by 2050, with much of it allocated to marine fuels. This research helps provide a blueprint for sustainable maritime transportation.
While the transition to emerging energy technologies, such as hydrogen and biofuels, may progress gradually until 2030, a substantial increase is anticipated by 2040 as these solutions scale up. Understanding the importance of assessing how various policies and market dynamics will influence sector-specific decarbonisation pathways, OGCI collaborated with FEV Consulting to release Net Zero 2050: Energy Demand Dynamics across the Transportation Sector. This report offers practical insights on shaping regional policies and addressing challenges in adopting low-carbon fuels.
"Decarbonising transport is critical to tackling climate change, and low carbon fuels play a vital role in achieving that goal," said Amy Bason, deputy vice-president of strategy & policy at OGCI.
"By bringing together the world’s leading energy companies and industry partners, OGCI is accelerating the development and deployment of real, scalable solutions that can drive meaningful progress toward a low-carbon future." Biofuels News
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Thailand Advances Sustainable Aviation Fuel Production with Key Industry Partnership and Used Cooking Oil Initiative
Mr. Akanat Promphan, Minister of Industry, is spearheading Thailand’s efforts to develop new economic drivers by tasking the Department of Industrial Promotion (DIPROM) to collaborate with Bangchak Corporation and five leading business organizations to accelerate Sustainable Aviation Fuel (SAF) production. This initiative, formalized through a Memorandum of Understanding (MoU), focuses on “Managing Used Cooking Oil for the Production of SAF,” in alignment with the Bio-Circular-Green (BCG) Economy policy.
The goal is to establish a supply chain network for used cooking oil (UCO) as a key feedstock for large-scale SAF production, aiming to reduce CO2 emissions and contribute to Thailand’s carbon neutrality and net-zero goals. Mr. Akanat emphasized that this collaboration supports Thailand’s ambition to enhance global competitiveness and position the country as a regional aviation hub, benefiting both local producers and global trade.
Dr. Nattapol Rangsitpol, Permanent Secretary of the Ministry of Industry, highlighted the Ministry’s commitment to building a collaborative network for SAF production, with a focus on securing UCO as a feedstock. The MoU was signed between the Ministry of Industry, DIPROM, and Bangchak Corporation, along with key private sector partners, including Central Group, Thai Beverage, Charoen Pokphand Foods, Thai President Foods, and the Thai Food Processors Association. This partnership will create a robust UCO supply chain and support Thailand’s aviation industry in meeting international standards.
Ms. Natthinya Netyasupha, Director-General of DIPROM, explained that DIPROM is working with industry stakeholders to analyze SAF demand, production capacity, and domestic feedstock supply, such as UCO, palm oil, and sugarcane by-products. The first phase of the collaboration will focus on developing UCO collection mechanisms from both industrial and service sectors.
Mr. Chaiwat Kovavisarach, CEO of Bangchak Corporation, expressed the company’s commitment to advancing SAF production in line with Thailand’s BCG policy, producing 1 million liters of 100% Neat SAF daily under the International Sustainability and Carbon Certification (ISCC) system. However, he called on policymakers to address key challenges, such as diversifying feedstocks and establishing a clear national SAF adoption mandate, including SAF blending requirements and supporting incentives, to help build a sustainable SAF ecosystem in Thailand. Solar Quarter
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Intertek Launches New Solutions Enabling Compliance with EU’s New Deforestation Regulation
Quality assurance and certification provider Intertek announced the launch of a new suite of tools aimed at helping companies to comply with the supply chain management requirements of the EU’s new Deforestation Regulation (EUDR), set to go into effect at the end of the year.
The EUDR was initially introduced by the EU Commission in November, 2021, with proposals aimed at effectively banning deforestation-linked projects on the EU market. The measure will also establish strong compliance requirements for companies providing or utilizing key commodities and products such as palm oil, beef, timber, coffee, cocoa, rubber and soy, in addition to some of their derived products, including leather, chocolate, tires, or furniture.
Under the new rules, companies that want to place relevant products on the EU market, or export them, will face mandatory due diligence rules, including a requirement to trace the products back to the land where they were produced, to prove that the products were produced on land that was not subject to deforestation after 2020, and are compliant with all relevant applicable laws in force in the country of production.
The regulation was initially set to go into effect at the end of 2024, although the European Commission has proposed delaying its implementation by a year to give companies more time to prepare for compliance with the new rules.
Intertek’s new offerings include its blockchain supply chain mapping tool, EUDRtrace, providing guidance and traceability technology to ensure that products meet EUDR standards, and allowing due diligence statements to be uploaded to the European Commission’s single window system for streamlined reporting.
The company’s offerings also include assurance services for EUDR compliance, including consulting services, gap assessment, risk assessment and training programs, and inspection and certification services, including site-specific audits, surveys and inspections to assess and reduce deforestation risk and verify regulatory compliance, and independent verification of product origins.
Mark Thomas, Executive Vice President of Assurance, Sustainability, AgriWorld and Food at Intertek, said:
“Intertek’s EUDR solutions are not only a response to customer demand but also a testament to our commitment to leadership in Total Quality Assurance, underpinned by our passion for sustainability and dedication to compliance with critical environmental regulations. The new EU regulation is a crucial step towards halting deforestation and helping companies safeguard their market position while protecting our natural resources. Compliance isn’t just about avoiding penalties – it’s about leading the way towards a sustainable, deforestation-free future.” ESG Today
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How Butter Could Fight Chronic Diseases in Americans
The newly appointed US Secretary of Health and Human Sciences Robert F. Kennedy Jr. has touched off a firestorm in his pledge to Make America Healthy Again. Seed Oil Free Alliance
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Rainforest Action Network Responds to Mondelēz International’s Updated Deforestation Statement
midst increasing pressure and scrutiny from investors and consumer watchdog organizations, Mondelēz International has quietly issued revisions to its statement on deforestation on the company’s website. When it was first issued in 2023, the statement was criticized for falling short of industry best practices for corporate sustainability policies, weakening past commitments for its palm oil supply chain, and for failing to recognize the fundamental point that rooting out deforestation is inextricably linked to upholding the land rights of Indigenous and forest-dependent communities.
RAN has examined the new statement and says that, while Mondelēz now recognizes the impact of deforestation on Indigenous communities and promotes practices to respect land rights, significant concerns remain about Mondelēz’s commitment to addressing environmental destruction and human rights violations driven by the company’s sourcing practices. RAN’s annual scorecard evaluation of brands’ deforestation and human rights policies found Mondelēz to be a laggard among its peers, with the company receiving an “F” grade.
The international NGO Global Witness reports each year on killings of land and environmental defenders around the world and has documented a concerning rise, with agribusiness as one of the top sectors responsible. Yet the new statement from Mondelēz does not address the increasing intimidation, criminalization and violence facing environment, land and Human Rights Defenders. RAN
OGCI studies aim to accelerate hydrogen and biofuels adoption to decarbonise transport
The Oil and Gas Climate Initiative (OGCI), a coalition of 12 leading global energy companies, is strengthening its efforts to enable decarbonisation of the transport sector, one of the largest sources of global CO₂ emissions.
With a decade of progress, including halving methane emissions and cutting flaring by 45%, OGCI is exploring technologies to tackle transportation's carbon footprint.
Since 2017, OGCI members have invested nearly $100 billion (€0.93 billion) in low-carbon technologies such as biofuels and carbon capture, highlighting their commitment to effective climate solutions. Building on these efforts, OGCI looked at hydrogen and biofuels as ways to reduce CO₂ emissions from transport, showcasing the role of oil and gas companies can play in addressing climate change.
Recent studies highlight promising technologies that could transform the sector’s carbon footprint. Hydrogen is seen as a key solution for decarbonizing some sectors of the industry, especially heavy-duty transport.
In the maritime sector, biofuels offer a significant emissions reduction opportunity. The Biomass for Marine 2025 study, developed with Argus Media, forecasts a large increase in global biomass availability by 2050, with much of it allocated to marine fuels. This research helps provide a blueprint for sustainable maritime transportation.
While the transition to emerging energy technologies, such as hydrogen and biofuels, may progress gradually until 2030, a substantial increase is anticipated by 2040 as these solutions scale up. Understanding the importance of assessing how various policies and market dynamics will influence sector-specific decarbonisation pathways, OGCI collaborated with FEV Consulting to release Net Zero 2050: Energy Demand Dynamics across the Transportation Sector. This report offers practical insights on shaping regional policies and addressing challenges in adopting low-carbon fuels.
"Decarbonising transport is critical to tackling climate change, and low carbon fuels play a vital role in achieving that goal," said Amy Bason, deputy vice-president of strategy & policy at OGCI.
"By bringing together the world’s leading energy companies and industry partners, OGCI is accelerating the development and deployment of real, scalable solutions that can drive meaningful progress toward a low-carbon future." Biofuels News
---------
Thailand Advances Sustainable Aviation Fuel Production with Key Industry Partnership and Used Cooking Oil Initiative
Mr. Akanat Promphan, Minister of Industry, is spearheading Thailand’s efforts to develop new economic drivers by tasking the Department of Industrial Promotion (DIPROM) to collaborate with Bangchak Corporation and five leading business organizations to accelerate Sustainable Aviation Fuel (SAF) production. This initiative, formalized through a Memorandum of Understanding (MoU), focuses on “Managing Used Cooking Oil for the Production of SAF,” in alignment with the Bio-Circular-Green (BCG) Economy policy.
The goal is to establish a supply chain network for used cooking oil (UCO) as a key feedstock for large-scale SAF production, aiming to reduce CO2 emissions and contribute to Thailand’s carbon neutrality and net-zero goals. Mr. Akanat emphasized that this collaboration supports Thailand’s ambition to enhance global competitiveness and position the country as a regional aviation hub, benefiting both local producers and global trade.
Dr. Nattapol Rangsitpol, Permanent Secretary of the Ministry of Industry, highlighted the Ministry’s commitment to building a collaborative network for SAF production, with a focus on securing UCO as a feedstock. The MoU was signed between the Ministry of Industry, DIPROM, and Bangchak Corporation, along with key private sector partners, including Central Group, Thai Beverage, Charoen Pokphand Foods, Thai President Foods, and the Thai Food Processors Association. This partnership will create a robust UCO supply chain and support Thailand’s aviation industry in meeting international standards.
Ms. Natthinya Netyasupha, Director-General of DIPROM, explained that DIPROM is working with industry stakeholders to analyze SAF demand, production capacity, and domestic feedstock supply, such as UCO, palm oil, and sugarcane by-products. The first phase of the collaboration will focus on developing UCO collection mechanisms from both industrial and service sectors.
Mr. Chaiwat Kovavisarach, CEO of Bangchak Corporation, expressed the company’s commitment to advancing SAF production in line with Thailand’s BCG policy, producing 1 million liters of 100% Neat SAF daily under the International Sustainability and Carbon Certification (ISCC) system. However, he called on policymakers to address key challenges, such as diversifying feedstocks and establishing a clear national SAF adoption mandate, including SAF blending requirements and supporting incentives, to help build a sustainable SAF ecosystem in Thailand. Solar Quarter
---------
Intertek Launches New Solutions Enabling Compliance with EU’s New Deforestation Regulation
Quality assurance and certification provider Intertek announced the launch of a new suite of tools aimed at helping companies to comply with the supply chain management requirements of the EU’s new Deforestation Regulation (EUDR), set to go into effect at the end of the year.
The EUDR was initially introduced by the EU Commission in November, 2021, with proposals aimed at effectively banning deforestation-linked projects on the EU market. The measure will also establish strong compliance requirements for companies providing or utilizing key commodities and products such as palm oil, beef, timber, coffee, cocoa, rubber and soy, in addition to some of their derived products, including leather, chocolate, tires, or furniture.
Under the new rules, companies that want to place relevant products on the EU market, or export them, will face mandatory due diligence rules, including a requirement to trace the products back to the land where they were produced, to prove that the products were produced on land that was not subject to deforestation after 2020, and are compliant with all relevant applicable laws in force in the country of production.
The regulation was initially set to go into effect at the end of 2024, although the European Commission has proposed delaying its implementation by a year to give companies more time to prepare for compliance with the new rules.
Intertek’s new offerings include its blockchain supply chain mapping tool, EUDRtrace, providing guidance and traceability technology to ensure that products meet EUDR standards, and allowing due diligence statements to be uploaded to the European Commission’s single window system for streamlined reporting.
The company’s offerings also include assurance services for EUDR compliance, including consulting services, gap assessment, risk assessment and training programs, and inspection and certification services, including site-specific audits, surveys and inspections to assess and reduce deforestation risk and verify regulatory compliance, and independent verification of product origins.
Mark Thomas, Executive Vice President of Assurance, Sustainability, AgriWorld and Food at Intertek, said:
“Intertek’s EUDR solutions are not only a response to customer demand but also a testament to our commitment to leadership in Total Quality Assurance, underpinned by our passion for sustainability and dedication to compliance with critical environmental regulations. The new EU regulation is a crucial step towards halting deforestation and helping companies safeguard their market position while protecting our natural resources. Compliance isn’t just about avoiding penalties – it’s about leading the way towards a sustainable, deforestation-free future.” ESG Today
---------
How Butter Could Fight Chronic Diseases in Americans
The newly appointed US Secretary of Health and Human Sciences Robert F. Kennedy Jr. has touched off a firestorm in his pledge to Make America Healthy Again. Seed Oil Free Alliance
---------
Rainforest Action Network Responds to Mondelēz International’s Updated Deforestation Statement
midst increasing pressure and scrutiny from investors and consumer watchdog organizations, Mondelēz International has quietly issued revisions to its statement on deforestation on the company’s website. When it was first issued in 2023, the statement was criticized for falling short of industry best practices for corporate sustainability policies, weakening past commitments for its palm oil supply chain, and for failing to recognize the fundamental point that rooting out deforestation is inextricably linked to upholding the land rights of Indigenous and forest-dependent communities.
RAN has examined the new statement and says that, while Mondelēz now recognizes the impact of deforestation on Indigenous communities and promotes practices to respect land rights, significant concerns remain about Mondelēz’s commitment to addressing environmental destruction and human rights violations driven by the company’s sourcing practices. RAN’s annual scorecard evaluation of brands’ deforestation and human rights policies found Mondelēz to be a laggard among its peers, with the company receiving an “F” grade.
The international NGO Global Witness reports each year on killings of land and environmental defenders around the world and has documented a concerning rise, with agribusiness as one of the top sectors responsible. Yet the new statement from Mondelēz does not address the increasing intimidation, criminalization and violence facing environment, land and Human Rights Defenders. RAN
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April 01, 2025
Position your business operations in a sustainable way - learn from and network with the global biomass supply chain
The 2025 Argus Biomass Conference returns to London on 1-3 April 2025 for the largest global gathering of biomass leaders. Join 450+ international peers to explore new innovations in the pellet market, new industrial applications of biomass including biochar and biocarbon in the steel, cement and aluminium industries, SAF and agribiomass, and new procurement opportunities. Meet with key companies and senior executives for three days of intensive networking.
Register today for the biggest global gathering of industry associations, leading utilities, hard to abate industries, biofuels/SAF producers, biochar traders, wood pellet and wood chip producers, and more at the industry's number one networking event.
The expanded Innovation Room at the 2025 conference offers a one-of-a-kind opportunity to shape the industry’s path forward and will feature technology demos and dedicated industry meeting zones, speed networking sessions and more. Book your spot in this showcase for an opportunity to present alongside Drax, CM Biomass, Engie, TSI, Peterson Projects and Solutions (Europe), and more, and let’s redefine what’s possible in biomass innovation. Argus Media
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EcoCeres supplies first HVO cargo to Singapore
EcoCeres, Mitsui, KPI OceanConnect and Global Energy have jointly conducted the sustainable supply of Hydrotreated Vegetable Oil (HVO) with the delivery of 400 metrics tons to a renowned cruise line in Singapore.
This collaborative effort marks a significant milestone in promoting eco-friendly solutions for maritime operations.
EcoCeres and Mitsui have partnered with KPI OceanConnect, a leading global provider of marine energy solutions to provide renewable diesel/HVO for a cruise ship.
The delivery was performed by an IMO Type II chemical tanker owned by Global Energy. This renewable fuel is projected to mitigate 1,477 tons of CO2 equivalent in emissions when compared to traditional fossil fuels.
Matti Lievonen, CEO of EcoCeres, said: "We are thrilled to lead this transformative initiative. By introducing sustainable HVO for marine bunkering, we are not only revolutionising industry practices but also driving towards a more sustainable future for maritime operations.
“This collaboration exemplifies our shared commitment to environmental stewardship and underscores the potential of renewable solutions in reducing carbon footprints."
Atsushi Noguchi, chief operating officer, trading department of Mitsui & Co. Energy Trading Singapore, added: "This collaboration represents a significant step forward in the maritime industry's low carbon initiatives.
“We are proud to be part of this innovative partnership that focuses on providing sustainable solutions for marine bunkering.”
Jesper Sørensen, head of alternative fuels at KPI OceanConnect, said: “It is vital that we continue to collaborate on the development and expansion of supply for alternative biofuels to the maritime industry. Singapore is leading the way as an innovator of many firsts in the alternative fuels market. We are delighted to be collaborating with our partners on this project to facilitate the growth of biofuels in the region.” Biofuels News
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Intertek Launches Comprehensive Suite of Solutions to Support EUDR Compliance for Key Commodities
Featuring new EUDRtrace platform developed to meet the latest EUDR requirements for supply chain management
FARNBOROUGH, England--(BUSINESS WIRE)--Intertek, a leading Total Quality Assurance provider to industries worldwide, is pleased to announce the launch of a comprehensive suite of solutions to help companies comply with the new EU Deforestation Regulation (EUDR). This regulation affects the import and export of seven key commodities—wood, rubber, cocoa, coffee, cattle, soy, and palm oil—within the European market.
According to the Food and Agriculture Organization (FAO), approximately 420 million hectares of forest, equivalent to 10% of global forest cover, were lost between 1990 and 2020. In response, the new EUDR legislation will become effective from 30 December 2025, requiring companies to submit a due diligence statement confirming that their products are deforestation-free before they can be marketed. Non-compliance could result in fines of up to 4% of EU revenue and market exclusion.
As the need to comply with new regulations and meet rising consumer expectations grows, demand for risk-based assurance services is increasing among operators and traders placing commodities and products on the EU market. Intertek’s EUDR solutions provide end-to-end compliance support, including regulatory assistance, training, commodity and product mapping, and on-the-ground verification. The solutions include EUDRtrace, a new cutting-edge blockchain platform, which provides expert guidance and traceability technology to give customers complete confidence in the transparency of their supply chains.
This unique combination of services and technology makes Intertek’s EUDR solutions one of the most comprehensive offerings on the market for ensuring full compliance with EUDR and fostering a sustainable and transparent supply chain. By equipping companies with the tools they need to operate sustainably, Intertek’s EUDR solutions help them to avoid fines and secure continued access to the EU market. Business Wire
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EPP Group calls on constructive forces to vote in favour of fast-tracking bureaucracy reduction
The EPP Group calls on all constructive forces in the European Parliament to vote today in favour of fast-tracking the legislative proposal aimed at reducing bureaucracy.
"The 'stop the clock' proposal must enter into force as soon as possible. We need to give clarity and breathing space to EU businesses, protect jobs and boost growth. That is why the EPP Group called for an urgent procedure back in March," says Tomas Tobé MEP, EPP Group Vice-Chair and Spokesman for the Omnibus simplification package.
"The Council approved the Commission proposal without any changes, and the EPP Group is ready to do the same. The crucial vote is still to come. Today, we call on all constructive forces in the Parliament to support this first step by taking swift and decisive action. With rising global instability and European companies falling behind, we must act now," Tobé underlines.
Note to editors
The EPP Group is the largest political group in the European Parliament with 188 Members from all EU Member States
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Palm Oil and the Environment: The Need for Science-Based Dialogue
InfoSAWIT, JAKARTA – Indonesia’s palm oil industry is often in the global spotlight regarding its impact on the environment, especially in terms of greenhouse gas (GHG) emissions and biodiversity. Allegations that palm oil has a higher carbon footprint than other commodities such as soybeans or rapeseed continue to roll. However, are these claims really supported by comprehensive scientific evidence?
Over the past 15 years, SMART Research Institute (SMARTRI) has conducted a comprehensive study on GHG emissions in oil palm plantations. The results of the study show that although oil palm contributes to carbon emissions, especially through land conversion, its emission levels are not always higher than other commodities. In terms of productivity, oil palm is superior because it can produce 6-10 times more vegetable oil per hectare, which means lower emissions per ton of oil.
The narrative that oil palm plantations destroy biodiversity also needs to be examined more deeply. While forest conversion can reduce endemic species, research from various universities shows that with sustainable practices such as companion planting and preserving riparian corridors, biodiversity around oil palm plantations can be maintained, if not increased.
Indonesia has around 120 million hectares of forest, but much of it has been degraded due to illegal activities, fires, and land conversion for various needs, including settlements and infrastructure. "Blaming palm oil as the main cause of deforestation without looking at the root of the problem such as weak law enforcement and land governance is an unfair approach," said Agus Purnomo, Director of Sinar Mas agribusiness and Food, at an event attended by InfoSAWIT recently.
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Fourth RSPO Members Meet Up In Madrid Spotlights Europe’s Robust CSPO Uptake And EUDR
In 2024, European RSPO Members reaffirmed their leadership at the forefront of sustainable sourcing with an impressive 88% uptake of Certified Sustainable Palm Oil (CSPO).
This success is also reflected in the robust growth of membership in the region, adding 206 new members in 2024 alone.
RSPO Trademark licences in the European region also increased significantly from 100 to over 2,600 between 2014 to 2024.
These were some of the key figures highlighted during the recently concluded European Members Day of the Roundtable on Sustainable Palm Oil (RSPO) held in Madrid, Spain on 27 February 2025.
Already in its fourth edition, the annual meet up was organised in collaboration with the Spanish Foundation on Sustainable Palm Oil.
Spain has rapidly become a key growth market for RSPO, with membership nearly doubling from 51 in 2020 to 95 in 2024, while RSPO Trademark licences in the country have tripled from 30 in 2018 to 95 in 2024.
The event saw the attendance of over 50 participants from 30 organisations from Italy, Poland, Spain, Switzerland, and the UK, and was moderated by Ruben Brunsveld, deputy director for EMEA at the RSPO.
RSPO Members Meet Up
A central part of the day’s agenda was the panel discussion on the state of EUDR implementation, which will become binding from 30 December 2025.
RSPO’s head of certification, Shazaley bin Abdullah, gave an overview of the most recent assurance and certification-related updates, highlighting the importance of the recent transition to the prisma by RSPO system – RSPO’s new IT infrastructure for certification.
The Shared Responsibility (SR) Session highlighted how SR plays a crucial role in members’ sustainability journey as meeting SR requirements ensures that they actively contribute to a sustainable palm oil supply chain.
Members contributed their creative insights during a workshop focusing on the upcoming review of the RSPO Supply Chain Certification (SCC) Standard.
This review takes place every five years as the RSPO updates its standards to keep up with the latest demands of the market and regulatory developments. ESM Magazine
---------
Position your business operations in a sustainable way - learn from and network with the global biomass supply chain
The 2025 Argus Biomass Conference returns to London on 1-3 April 2025 for the largest global gathering of biomass leaders. Join 450+ international peers to explore new innovations in the pellet market, new industrial applications of biomass including biochar and biocarbon in the steel, cement and aluminium industries, SAF and agribiomass, and new procurement opportunities. Meet with key companies and senior executives for three days of intensive networking.
Register today for the biggest global gathering of industry associations, leading utilities, hard to abate industries, biofuels/SAF producers, biochar traders, wood pellet and wood chip producers, and more at the industry's number one networking event.
The expanded Innovation Room at the 2025 conference offers a one-of-a-kind opportunity to shape the industry’s path forward and will feature technology demos and dedicated industry meeting zones, speed networking sessions and more. Book your spot in this showcase for an opportunity to present alongside Drax, CM Biomass, Engie, TSI, Peterson Projects and Solutions (Europe), and more, and let’s redefine what’s possible in biomass innovation. Argus Media
---------
EcoCeres supplies first HVO cargo to Singapore
EcoCeres, Mitsui, KPI OceanConnect and Global Energy have jointly conducted the sustainable supply of Hydrotreated Vegetable Oil (HVO) with the delivery of 400 metrics tons to a renowned cruise line in Singapore.
This collaborative effort marks a significant milestone in promoting eco-friendly solutions for maritime operations.
EcoCeres and Mitsui have partnered with KPI OceanConnect, a leading global provider of marine energy solutions to provide renewable diesel/HVO for a cruise ship.
The delivery was performed by an IMO Type II chemical tanker owned by Global Energy. This renewable fuel is projected to mitigate 1,477 tons of CO2 equivalent in emissions when compared to traditional fossil fuels.
Matti Lievonen, CEO of EcoCeres, said: "We are thrilled to lead this transformative initiative. By introducing sustainable HVO for marine bunkering, we are not only revolutionising industry practices but also driving towards a more sustainable future for maritime operations.
“This collaboration exemplifies our shared commitment to environmental stewardship and underscores the potential of renewable solutions in reducing carbon footprints."
Atsushi Noguchi, chief operating officer, trading department of Mitsui & Co. Energy Trading Singapore, added: "This collaboration represents a significant step forward in the maritime industry's low carbon initiatives.
“We are proud to be part of this innovative partnership that focuses on providing sustainable solutions for marine bunkering.”
Jesper Sørensen, head of alternative fuels at KPI OceanConnect, said: “It is vital that we continue to collaborate on the development and expansion of supply for alternative biofuels to the maritime industry. Singapore is leading the way as an innovator of many firsts in the alternative fuels market. We are delighted to be collaborating with our partners on this project to facilitate the growth of biofuels in the region.” Biofuels News
---------
Intertek Launches Comprehensive Suite of Solutions to Support EUDR Compliance for Key Commodities
Featuring new EUDRtrace platform developed to meet the latest EUDR requirements for supply chain management
FARNBOROUGH, England--(BUSINESS WIRE)--Intertek, a leading Total Quality Assurance provider to industries worldwide, is pleased to announce the launch of a comprehensive suite of solutions to help companies comply with the new EU Deforestation Regulation (EUDR). This regulation affects the import and export of seven key commodities—wood, rubber, cocoa, coffee, cattle, soy, and palm oil—within the European market.
According to the Food and Agriculture Organization (FAO), approximately 420 million hectares of forest, equivalent to 10% of global forest cover, were lost between 1990 and 2020. In response, the new EUDR legislation will become effective from 30 December 2025, requiring companies to submit a due diligence statement confirming that their products are deforestation-free before they can be marketed. Non-compliance could result in fines of up to 4% of EU revenue and market exclusion.
As the need to comply with new regulations and meet rising consumer expectations grows, demand for risk-based assurance services is increasing among operators and traders placing commodities and products on the EU market. Intertek’s EUDR solutions provide end-to-end compliance support, including regulatory assistance, training, commodity and product mapping, and on-the-ground verification. The solutions include EUDRtrace, a new cutting-edge blockchain platform, which provides expert guidance and traceability technology to give customers complete confidence in the transparency of their supply chains.
This unique combination of services and technology makes Intertek’s EUDR solutions one of the most comprehensive offerings on the market for ensuring full compliance with EUDR and fostering a sustainable and transparent supply chain. By equipping companies with the tools they need to operate sustainably, Intertek’s EUDR solutions help them to avoid fines and secure continued access to the EU market. Business Wire
---------
EPP Group calls on constructive forces to vote in favour of fast-tracking bureaucracy reduction
The EPP Group calls on all constructive forces in the European Parliament to vote today in favour of fast-tracking the legislative proposal aimed at reducing bureaucracy.
"The 'stop the clock' proposal must enter into force as soon as possible. We need to give clarity and breathing space to EU businesses, protect jobs and boost growth. That is why the EPP Group called for an urgent procedure back in March," says Tomas Tobé MEP, EPP Group Vice-Chair and Spokesman for the Omnibus simplification package.
"The Council approved the Commission proposal without any changes, and the EPP Group is ready to do the same. The crucial vote is still to come. Today, we call on all constructive forces in the Parliament to support this first step by taking swift and decisive action. With rising global instability and European companies falling behind, we must act now," Tobé underlines.
Note to editors
The EPP Group is the largest political group in the European Parliament with 188 Members from all EU Member States
---------
Palm Oil and the Environment: The Need for Science-Based Dialogue
InfoSAWIT, JAKARTA – Indonesia’s palm oil industry is often in the global spotlight regarding its impact on the environment, especially in terms of greenhouse gas (GHG) emissions and biodiversity. Allegations that palm oil has a higher carbon footprint than other commodities such as soybeans or rapeseed continue to roll. However, are these claims really supported by comprehensive scientific evidence?
Over the past 15 years, SMART Research Institute (SMARTRI) has conducted a comprehensive study on GHG emissions in oil palm plantations. The results of the study show that although oil palm contributes to carbon emissions, especially through land conversion, its emission levels are not always higher than other commodities. In terms of productivity, oil palm is superior because it can produce 6-10 times more vegetable oil per hectare, which means lower emissions per ton of oil.
The narrative that oil palm plantations destroy biodiversity also needs to be examined more deeply. While forest conversion can reduce endemic species, research from various universities shows that with sustainable practices such as companion planting and preserving riparian corridors, biodiversity around oil palm plantations can be maintained, if not increased.
Indonesia has around 120 million hectares of forest, but much of it has been degraded due to illegal activities, fires, and land conversion for various needs, including settlements and infrastructure. "Blaming palm oil as the main cause of deforestation without looking at the root of the problem such as weak law enforcement and land governance is an unfair approach," said Agus Purnomo, Director of Sinar Mas agribusiness and Food, at an event attended by InfoSAWIT recently.
---------
Fourth RSPO Members Meet Up In Madrid Spotlights Europe’s Robust CSPO Uptake And EUDR
In 2024, European RSPO Members reaffirmed their leadership at the forefront of sustainable sourcing with an impressive 88% uptake of Certified Sustainable Palm Oil (CSPO).
This success is also reflected in the robust growth of membership in the region, adding 206 new members in 2024 alone.
RSPO Trademark licences in the European region also increased significantly from 100 to over 2,600 between 2014 to 2024.
These were some of the key figures highlighted during the recently concluded European Members Day of the Roundtable on Sustainable Palm Oil (RSPO) held in Madrid, Spain on 27 February 2025.
Already in its fourth edition, the annual meet up was organised in collaboration with the Spanish Foundation on Sustainable Palm Oil.
Spain has rapidly become a key growth market for RSPO, with membership nearly doubling from 51 in 2020 to 95 in 2024, while RSPO Trademark licences in the country have tripled from 30 in 2018 to 95 in 2024.
The event saw the attendance of over 50 participants from 30 organisations from Italy, Poland, Spain, Switzerland, and the UK, and was moderated by Ruben Brunsveld, deputy director for EMEA at the RSPO.
RSPO Members Meet Up
A central part of the day’s agenda was the panel discussion on the state of EUDR implementation, which will become binding from 30 December 2025.
RSPO’s head of certification, Shazaley bin Abdullah, gave an overview of the most recent assurance and certification-related updates, highlighting the importance of the recent transition to the prisma by RSPO system – RSPO’s new IT infrastructure for certification.
The Shared Responsibility (SR) Session highlighted how SR plays a crucial role in members’ sustainability journey as meeting SR requirements ensures that they actively contribute to a sustainable palm oil supply chain.
Members contributed their creative insights during a workshop focusing on the upcoming review of the RSPO Supply Chain Certification (SCC) Standard.
This review takes place every five years as the RSPO updates its standards to keep up with the latest demands of the market and regulatory developments. ESM Magazine
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