Palm oil news June 2025
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June 30, 2025
‘Goodbye Trump, hello Asia’ is the EU’s new trade strategy. Will it work?
Ursula von der Leyen wants the EU to team up with a 12-nation Pacific trade group. That could serve as a new platform for fans of rules-based trade.
BRUSSELS — Europe is getting fed up with Donald Trump’s trade threats — and is exploring a bold move to look east instead of west to find partners who want to play by the rules.
Trump’s unilateral and arbitrary tariffs — which could ratchet up to 50 percent from July 9 if EU and U.S. negotiators fail to cut a trade deal — have tested EU chief executive Ursula von der Leyen’s patience and resolve. Her response? To team up with the CPTPP, a Pacific-centric trade group that includes like-minded nations such as Japan, Australia, Canada and Mexico.
Between them, the 39 countries of the EU and (deep breath) Comprehensive and Progressive Agreement for Trans-Pacific Partnership account for 30 percent of world trade. Forming a coalition of the willing could, boosters argue, mark a first step toward reconfiguring the international trade order and escaping the institutional paralysis besetting the World Trade Organization.
In a pitch to EU leaders, von der Leyen turned previous comments on possible cooperation with the CPTPP into more of a reality. The new grouping would redesign the rules of global trade, she said, reforming or perhaps even replacing the global trade rules body.
Such a plan would “show to the world that free trade with a large number of countries is possible on a rules-based foundation,” von der Leyen said after an EU summit on Thursday night. “This is a project where I think we should really engage on, because CPTPP and the European Union is mighty.”
Making the pledge
But how could forming such a coalition of the willing work?
One idea would be to make an up-front pledge to uphold the established rules of multilateral trade, veteran trade negotiators Tim Groser, Steve Verheul and John Clarke said in exclusive commentary shared with POLITICO.
Groser, a former New Zealand trade minister; Verheul, previously Canada’s chief trade negotiator; and Clarke, until recently a senior EU trade negotiator, said the 39 EU and CPTPP countries should, in a first step, commit to a “Standstill Agreement” to keep their markets open to each other.
“What it would do is send a massive signal to Washington that a very substantial part of the global economy, including nearly all the traditionally closest partners of the United States, remains committed to the rules-based system,” they said.
The U.S. had the chance to join the CPTPP, previously known as the Trans-Pacific Partnership, during the Barack Obama administration. But Trump withdrew in 2017, after taking office for the first time, before the pact could be finalized. Politico
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Malaysia realigns its economic strategy with move to sign FTA with the Gulf Cooperation Council
MALAYSIA’S move to sign the Free Trade Agreement (MGFTA) negotiations with the Gulf Cooperation Council (GCC) marks a pivotal step in expanding its economic reach beyond traditional partners.
With GCC members – including Saudi Arabia, the UAE, Qatar, and others representing a collective GDP of over US$2 trillion (RM8.5 trillion), this agreement lays the groundwork for deeper trade and investment linkages with one of the world’s most capital-rich regions.
At its core, the MGFTA aims to reduce tariff and non-tariff barriers, boosting trade in high-impact sectors like palm oil, electrical and electronics, petrochemicals, halal products, and even digital services.
It follows the Comprehensive Economic Partnership Agreement (CEPA) between Malaysia and the UAE signed earlier this year, indicating a broader policy shift to strengthen ties with the Middle East.
This agreement comes at a time when global trade is increasingly fragmented by geopolitical tensions and protectionist policies. For Malaysia, forging new trade corridors is more than just an economic opportunity – it is a hedge against over-reliance on major power blocs and a chance to position itself as a key node in South-South economic cooperation.
In addition to trade flows, the MGFTA is expected to encourage greater foreign direct investment from GCC members into Malaysia. Sovereign wealth funds like Saudi Arabia’s PIF and the UAE’s Mubadala are actively seeking investment diversification, and Malaysia’s robust manufacturing base, green energy ambitions, and Islamic finance expertise make it a compelling destination. This is especially promising for sectors such as logistics, infrastructure, and renewable energy – all areas that align with both GCC diversification strategies and Malaysia’s own Madani economic agenda.
The formal launch of FTA negotiations between Malaysia and the Gulf Cooperation Council (GCC) signals deeper structural shifts that Malaysian investors should take seriously – not just as a policy headline, but as a potential reorientation of capital, demand, and strategic partnerships across multiple sectors.
Malaysia’s stronghold in halal certification and production could see renewed momentum. As trade barriers fall, local companies in halal food, personal care, pharmaceuticals, and logistics may benefit from easier access to GCC markets where demand is both high and culturally aligned. Public-listed firms involved in food processing, logistics, or halal certification services stand to gain from both volume expansion and brand credibility in a growing export market.
Increased interest from GCC sovereign wealth funds in Southeast Asia could drive participation in Malaysian infrastructure, property, and industrial projects. Investors should pay attention to companies involved in industrial park development, ports, and integrated logistics – particularly those already involved in government-linked or cross-border projects. The SunMY
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SAF registry hits 10 million gallons
4AIR, the global leader in business aviation sustainability, has announced a significant milestone - its Assure SAF Registry has well surpassed 10 million gallons of sustainable aviation fuel (SAF) registered on the platform.
This achievement highlights the industry's rapid growing adoption of SAF and 4AIR's role in ensuring the integrity and traceability of its use.
The Assure SAF Registry serves as a comprehensive inventory and registry system for both business and commercial aviation value chains, building on 4AIR's prior experience tracing and documenting SAF.
This safeguards traceability from producer to supplier, to the Fixed Base Operator (FBO), airline, and ultimately to the corporate end-user, providing a detailed history for even the smallest quantity of SAF.
The blockchain technology gives assurance to prevent double claims or counting, delivering a true understanding of SAF usage and its impact, and increasing confidence in aviation sustainability efforts.
Assure enables stakeholders to efficiently manage their SAF volumes and criteria their way as well as automate product transfer documentation.
"The Assure SAF Registry is more than just a tracking tool; it is a foundational element for the future of sustainable aviation," said Nancy Bsales, chief operating officer at 4AIR.
"By providing a secure, transparent, and verifiable system, we are building the infrastructure necessary to scale SAF adoption across the industry. Our platform addresses the critical need for accountability and trust, paving the way for wider use of SAF and a significant reduction in aviation's carbon footprint. We have built this to be the bedrock of SAF transactions and allow the industry to confidently grow towards a more sustainable future."
Built with a regulatory first approach, the Assure SAF Registry is designed to assist with easing tracking requirements for both voluntary and regulatory reporting.
Transparency is enhanced within the supply chain for purchasers of SAF while information is not shared publicly, enabling privacy and traceability while simplifying fuel compliance and reporting. Biofuels News
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Small farms, big impact: How Malaysian growers are greening palm oil
Malaysian palm oil industry is trying to transition into a zero-waste circular economy
Palm oil is increasingly becoming a commodity in demand globally. It has the highest yield among vegetable oils, accounting for nearly 35 per cent of global vegetable oil while using less than 10 per cent of the land allocated for all crops. Its versatility and efficiency makes it essential for global food security and economic development.
However, sustainability concerns persist. Recognising this, the Malaysian palm oil industry is working to transition into a zero-waste circular economy — raising awareness among smallholders, adopting renewable energy and exploring carbon credit trading.
A significant shift is underway, driven by both federal and private entities. While the government maintains a cap of 6.5 million hectares on oil palm cultivation, its replanting push is complemented by private and State-backed firms racing against the European Union Deforestation Regulation (EUDR) deadline. Many plantations are now integrating renewable energy into their operations to support decarbonisation and Malaysia’s net zero aspirations. The Hindu Businessline
‘Goodbye Trump, hello Asia’ is the EU’s new trade strategy. Will it work?
Ursula von der Leyen wants the EU to team up with a 12-nation Pacific trade group. That could serve as a new platform for fans of rules-based trade.
BRUSSELS — Europe is getting fed up with Donald Trump’s trade threats — and is exploring a bold move to look east instead of west to find partners who want to play by the rules.
Trump’s unilateral and arbitrary tariffs — which could ratchet up to 50 percent from July 9 if EU and U.S. negotiators fail to cut a trade deal — have tested EU chief executive Ursula von der Leyen’s patience and resolve. Her response? To team up with the CPTPP, a Pacific-centric trade group that includes like-minded nations such as Japan, Australia, Canada and Mexico.
Between them, the 39 countries of the EU and (deep breath) Comprehensive and Progressive Agreement for Trans-Pacific Partnership account for 30 percent of world trade. Forming a coalition of the willing could, boosters argue, mark a first step toward reconfiguring the international trade order and escaping the institutional paralysis besetting the World Trade Organization.
In a pitch to EU leaders, von der Leyen turned previous comments on possible cooperation with the CPTPP into more of a reality. The new grouping would redesign the rules of global trade, she said, reforming or perhaps even replacing the global trade rules body.
Such a plan would “show to the world that free trade with a large number of countries is possible on a rules-based foundation,” von der Leyen said after an EU summit on Thursday night. “This is a project where I think we should really engage on, because CPTPP and the European Union is mighty.”
Making the pledge
But how could forming such a coalition of the willing work?
One idea would be to make an up-front pledge to uphold the established rules of multilateral trade, veteran trade negotiators Tim Groser, Steve Verheul and John Clarke said in exclusive commentary shared with POLITICO.
Groser, a former New Zealand trade minister; Verheul, previously Canada’s chief trade negotiator; and Clarke, until recently a senior EU trade negotiator, said the 39 EU and CPTPP countries should, in a first step, commit to a “Standstill Agreement” to keep their markets open to each other.
“What it would do is send a massive signal to Washington that a very substantial part of the global economy, including nearly all the traditionally closest partners of the United States, remains committed to the rules-based system,” they said.
The U.S. had the chance to join the CPTPP, previously known as the Trans-Pacific Partnership, during the Barack Obama administration. But Trump withdrew in 2017, after taking office for the first time, before the pact could be finalized. Politico
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Malaysia realigns its economic strategy with move to sign FTA with the Gulf Cooperation Council
MALAYSIA’S move to sign the Free Trade Agreement (MGFTA) negotiations with the Gulf Cooperation Council (GCC) marks a pivotal step in expanding its economic reach beyond traditional partners.
With GCC members – including Saudi Arabia, the UAE, Qatar, and others representing a collective GDP of over US$2 trillion (RM8.5 trillion), this agreement lays the groundwork for deeper trade and investment linkages with one of the world’s most capital-rich regions.
At its core, the MGFTA aims to reduce tariff and non-tariff barriers, boosting trade in high-impact sectors like palm oil, electrical and electronics, petrochemicals, halal products, and even digital services.
It follows the Comprehensive Economic Partnership Agreement (CEPA) between Malaysia and the UAE signed earlier this year, indicating a broader policy shift to strengthen ties with the Middle East.
This agreement comes at a time when global trade is increasingly fragmented by geopolitical tensions and protectionist policies. For Malaysia, forging new trade corridors is more than just an economic opportunity – it is a hedge against over-reliance on major power blocs and a chance to position itself as a key node in South-South economic cooperation.
In addition to trade flows, the MGFTA is expected to encourage greater foreign direct investment from GCC members into Malaysia. Sovereign wealth funds like Saudi Arabia’s PIF and the UAE’s Mubadala are actively seeking investment diversification, and Malaysia’s robust manufacturing base, green energy ambitions, and Islamic finance expertise make it a compelling destination. This is especially promising for sectors such as logistics, infrastructure, and renewable energy – all areas that align with both GCC diversification strategies and Malaysia’s own Madani economic agenda.
The formal launch of FTA negotiations between Malaysia and the Gulf Cooperation Council (GCC) signals deeper structural shifts that Malaysian investors should take seriously – not just as a policy headline, but as a potential reorientation of capital, demand, and strategic partnerships across multiple sectors.
Malaysia’s stronghold in halal certification and production could see renewed momentum. As trade barriers fall, local companies in halal food, personal care, pharmaceuticals, and logistics may benefit from easier access to GCC markets where demand is both high and culturally aligned. Public-listed firms involved in food processing, logistics, or halal certification services stand to gain from both volume expansion and brand credibility in a growing export market.
Increased interest from GCC sovereign wealth funds in Southeast Asia could drive participation in Malaysian infrastructure, property, and industrial projects. Investors should pay attention to companies involved in industrial park development, ports, and integrated logistics – particularly those already involved in government-linked or cross-border projects. The SunMY
---------
SAF registry hits 10 million gallons
4AIR, the global leader in business aviation sustainability, has announced a significant milestone - its Assure SAF Registry has well surpassed 10 million gallons of sustainable aviation fuel (SAF) registered on the platform.
This achievement highlights the industry's rapid growing adoption of SAF and 4AIR's role in ensuring the integrity and traceability of its use.
The Assure SAF Registry serves as a comprehensive inventory and registry system for both business and commercial aviation value chains, building on 4AIR's prior experience tracing and documenting SAF.
This safeguards traceability from producer to supplier, to the Fixed Base Operator (FBO), airline, and ultimately to the corporate end-user, providing a detailed history for even the smallest quantity of SAF.
The blockchain technology gives assurance to prevent double claims or counting, delivering a true understanding of SAF usage and its impact, and increasing confidence in aviation sustainability efforts.
Assure enables stakeholders to efficiently manage their SAF volumes and criteria their way as well as automate product transfer documentation.
"The Assure SAF Registry is more than just a tracking tool; it is a foundational element for the future of sustainable aviation," said Nancy Bsales, chief operating officer at 4AIR.
"By providing a secure, transparent, and verifiable system, we are building the infrastructure necessary to scale SAF adoption across the industry. Our platform addresses the critical need for accountability and trust, paving the way for wider use of SAF and a significant reduction in aviation's carbon footprint. We have built this to be the bedrock of SAF transactions and allow the industry to confidently grow towards a more sustainable future."
Built with a regulatory first approach, the Assure SAF Registry is designed to assist with easing tracking requirements for both voluntary and regulatory reporting.
Transparency is enhanced within the supply chain for purchasers of SAF while information is not shared publicly, enabling privacy and traceability while simplifying fuel compliance and reporting. Biofuels News
---------
Small farms, big impact: How Malaysian growers are greening palm oil
Malaysian palm oil industry is trying to transition into a zero-waste circular economy
Palm oil is increasingly becoming a commodity in demand globally. It has the highest yield among vegetable oils, accounting for nearly 35 per cent of global vegetable oil while using less than 10 per cent of the land allocated for all crops. Its versatility and efficiency makes it essential for global food security and economic development.
However, sustainability concerns persist. Recognising this, the Malaysian palm oil industry is working to transition into a zero-waste circular economy — raising awareness among smallholders, adopting renewable energy and exploring carbon credit trading.
A significant shift is underway, driven by both federal and private entities. While the government maintains a cap of 6.5 million hectares on oil palm cultivation, its replanting push is complemented by private and State-backed firms racing against the European Union Deforestation Regulation (EUDR) deadline. Many plantations are now integrating renewable energy into their operations to support decarbonisation and Malaysia’s net zero aspirations. The Hindu Businessline
June 29, 2025
Indonesia's BRICS Ascension: A Pivot to Multipolar Growth in Agriculture, Infrastructure, and Sovereign Wealth
The global economic order is undergoing a seismic shift, with emerging markets like Indonesia leveraging strategic alliances to carve out new pathways for growth. As the first Southeast Asian nation to secure full BRICS membership in 2025, Indonesia has positioned itself as a linchpin in the bloc's ambition to reshape global trade, finance, and diplomacy. This move, coupled with its deepening strategic ties with Russia and the launch of its $2.8 billion Danantara sovereign wealth fund, presents a compelling case for investors to allocate capital to Indonesian equities and bonds. Below, we dissect the opportunities in agriculture, infrastructure, and financial innovation, while evaluating risks in a world of fragmented economic blocs.
The Growth Engine: GDP Projections and Structural Reforms
Indonesia's economy is projected to grow at an average annual rate of 4.8% through 2027, per World Bank estimates, with upside potential to 5.5% if structural reforms—such as simplifying bureaucratic processes and expanding trade corridors—are executed effectively. The government's 2029 target of 8% growth, while ambitious, underscores its confidence in sectors like construction, manufacturing, and digital infrastructure.
The data highlights Indonesia's convergence with BRICS peers, with its 2024 GDP of $1.47 trillion and a trajectory to surpass $2.1 trillion by 2030. This expansion is underpinned by its status as the world's fourth-largest population, a young workforce, and a strategic location in the Indo-Pacific.
Agriculture: A $1.5B Partnership with Russia
Indonesia and Russia have forged a robust agricultural alliance, driven by BRICS frameworks. Russian wheat exports to Indonesia surged 22% in 2024, while talks to open Indonesian markets to Russian beef and dairy products are advancing. A landmark 2025 Memorandum of Understanding on Halal certification—Indonesia's Muslim-majority market is a $200 billion opportunity—could further boost bilateral trade.
Investment opportunities abound in:
- Grain logistics: Companies like PT Bumi Resources (BMRI.JK) are expanding port facilities to handle Russian imports.
- Livestock production: Firms with certification capabilities, such as PT Sembcorp Pasific (SEMPROF.JK), may benefit from Russia's entry into Indonesia's meat market.
- Halal-compliant exports: Brands in dairy and poultry could leverage Russia's demand, supported by BRICS-backed trade finance.
Infrastructure: Ports, Palms, and Putin's Play
Indonesia's $3.8 billion annual housing program and infrastructure push are being amplified by Russian expertise. Russia's FESCO and Delo Group are spearheading projects such as:
- A palm oil terminal in Novorossiysk, leveraging Indonesia's role as the world's top palm producer.
- Expanded container routes linking Jakarta to Russia's Far East, reducing shipping times to Europe by 10 days.
The Danantara Sovereign Wealth Fund, designed to attract $2.8 billion in private capital, is already funding joint ventures with Russian firms in port modernization and renewable energy. Investors should monitor:
- Stocks tied to construction materials: Holcim Indonesia (HMSP.JK) and Semen Indonesia (SMGR.JK) are core to infrastructure projects.
- Maritime logistics: PT Pelindo (PELI.JK), which operates key ports, stands to gain from Russian trade partnerships. AINVEST
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Turning Waste into Watts: How Biogas is Powering Malaysia’s Climate Future
From afar, it looks like a dark, dome-shaped igloo — or maybe a croissant-shaped spacecraft — planted between rows of palm trees and dense forest. The structure stands out against the rural landscape, a quiet yet promising symbol of Malaysia’s shift toward renewable energy.
But this isn’t alien technology. It’s a biogas plant. And this isn’t science fiction — it’s science in action.
On the outskirts of Segari, Perak, Dindings Farms Sdn Bhd has been quietly tackling pollution, energy costs, and emissions for over a decade. The farm was among Malaysia’s earliest adopters of biogas technology in the livestock sector, converting pig waste into renewable electricity.
“We’ve been doing this for more than 10 years,” says Dindings Farms manager Yeong who has been working there since 2004. “It helps us manage our waste, cut our electricity bills, and reduce our emissions. With rising energy costs, we’re planning to do even more.”
Installed in 2011 at RM4 million, the plant generates up to 500 kilowatts of power — enough to run the entire operation — while saving around RM35,000 per month on electricity.
Dindings Farms has been managing a key environmental burden: animal waste that threatens nearby waterways.
The science: Anaerobic digestion explained
Biogas is a renewable fuel made mostly of methane (CH₄), a flammable gas released when organic waste breaks down without oxygen. Capturing and burning it can generate electricity or heat, much like natural gas, but without extracting fossil fuels.
This process, called anaerobic digestion, happens inside sealed tanks known as biodigesters. Think of it as a giant stomach, where natural microbes “eat” waste like manure, food scraps, or palm oil sludge and produce energy in the form of gas. What’s left behind is digestate — a nutrient-rich slurry that can be used as fertiliser.
“It’s a triple win,” says chartered chemical engineer Hong Wai Onn. “You manage waste, produce clean energy, and return nutrients to the soil.”
Kampung Selamat: A community hopes for change
In Kampung Selamat, Penang, pig farmers are hoping new technology will help them clean up long-standing waste issues — and possibly generate energy in the future. For decades, farms here have managed pig waste using traditional earthen ponds located within each farm compound.
But growing environmental concerns, particularly over water pollution, have pushed the community toward a shared solution. Under a state-led initiative, a company called HRB Q Tech Sdn Bhd has been appointed to manage farm effluent. So far, two farms have installed a treatment system known as Quantum Thermal Pyrolysis Cracking (an advanced method that breaks down organic waste at high temperatures without oxygen).
“We hope this system can solve the pollution problem in Kampung Selamat,” said Tang, a pig farmer part of the Federation of Livestock Farmers' Associations of Malaysia (FLFAM). “The cost is not cheap, but what matters is the outcome.”
The treated water is monitored daily by the Department of Veterinary Services (DVS) in Penang to evaluate its effectiveness. If proven successful, this model could become a blueprint for other farming communities grappling with environmental compliance and waste management.
While this system is currently focused on environmental protection, farmers are open to the possibility that technologies like biogas digesters could one day complement their operations, helping not just to treat waste, but also to generate renewable energy and reduce reliance on the grid.
What’s holding biogas back?
Malaysia’s biogas journey is one of immense potential and persistent barriers. In the palm oil sector, for example, fluctuations in palm oil mill effluent (POME) supply, which follow harvesting cycles, make it difficult to maintain stable biogas production. Smaller farms, particularly pig or cattle operations, often lack the scale or capital investment needed to make biogas systems financially viable.
Policy uncertainty compounds these issues. The national Feed-in Tariff (FiT) scheme — designed to pay producers for renewable electricity supplied to the grid — has seen inconsistent implementation, with variable tariff rates and competitive bidding introduced in 2017. Additionally, under current carbon market rules, credits are granted for methane capture but not for the renewable electricity generated from biogas, limiting financial incentives.
Still, there are signs of innovation. A palm oil mill in Sabah has successfully upgraded its biogas into bio-compressed natural gas (bio-CNG) to fuel its transport fleet, reducing reliance on diesel. Other projects are exploring cluster-based biogas hubs, where multiple farms or mills combine resources to share infrastructure and scale more efficiently.
Experts argue that policy and regulatory reforms are key. “The technology works,” says Hong, who is also a Fellow of the Institution of Chemical Engineers, the Royal Society of Chemistry, and the Malaysian Institute of Management. “What’s needed now is stable policy, better access to the grid, predictable tariffs, and carbon credits that reward both methane capture and energy production.”
The policy gap on methane
Malaysia’s pledge to reduce methane emissions by 30% by 2030 under the Global Methane Pledge (GMP) was a bold step, but actual implementation has lagged behind. A recent policy brief by Universiti Malaya, supported by CERAH and the Environmental Defense Fund, highlights the need for a clear national strategy.
According to the brief, Associate Professor of Environmental Politics at Universiti Malaya Dr. Helena Varkkey, said that Malaysia lacks a dedicated methane policy and that existing sector-specific regulations are either vague or inaccessible.
She and her team recommend integrating methane governance into the broader climate policy framework, especially as Malaysia updates its National Climate Change Policy and drafts a Climate Change Act.
The brief also points to a lack of transparency and public awareness. A survey conducted by Dr. Varkkey’s team found that 58% of Malaysians were unaware of methane as a greenhouse gas, despite its significant role in global warming and contribution to air pollution.
As the brief notes, methane is linked to the formation of ground-level ozone, which causes around 500,000 premature deaths globally each year.
By connecting methane reduction to public health and air quality benefits, and by strengthening corporate and civil society engagement, the brief argues that Malaysia could unlock both environmental and economic gains.
The way forward
From the early adopters at Dindings Farms, who have been steadily powering their operations with biogas for over a decade, to the community-driven effort in Kampung Selamat, Malaysia’s rural farming sector is proving that climate action and agricultural resilience can go hand in hand.
What’s needed next is clear: sustained policy support, financing mechanisms for smallholders, and public-private collaboration to scale successful models.
Malaysia already has the waste, from palm oil effluent, livestock manure, and food scraps — and the technology. With the right investments and incentives, much of what is currently flared, dumped, or left to rot could instead power homes, reduce emissions, and support livelihoods.
“Biogas isn’t a silver bullet,” adds Hong. “But it’s rare to find a solution that addresses waste, energy, and climate — all at once.”
And in a country racing toward its net-zero ambitions, the promise of rural biogas offers a hopeful path forward — not through megaprojects, but one biodigester, one farm at a time. Astro Awani
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Environmental compensation gains new momentum with Environmental Protection Quota (CPA), says president of Ideflor-Bio
The meeting at the Sectoral Chamber of Palm Oil brought together representatives from the productive and environmental sectors to discuss the impacts and opportunities of the new regulation, especially for rural landowners with consolidated environmental liabilities.
In a virtual presentation to the Sectoral Chamber of the Palm Oil Productive Chain, held on Thursday (26), the president of the Institute of Forest Development and Biodiversity of Pará (Ideflor-Bio), Nilson Pinto, highlighted the advances promoted by Ordinance No. 364/2025, which regulates the use of legal reserve compensation in conservation areas. The meeting brought together representatives from the productive and environmental sectors to discuss the impacts and opportunities of the new regulation, especially for rural landowners with consolidated environmental liabilities.
During the lecture, Nilson Pinto presented one of the main instruments of Pará's environmental policy: the Environmental Protection Quota (CPA). The mechanism allows rural properties with legal reserve liabilities up to July 2008 to regularize by acquiring quotas linked to state Conservation Units (UCs). “Economic production finances environmental protection. And environmental protection enables economic production. This is the logic of a policy that has the power to unite two historical interests of Pará: the development of the countryside and the conservation of the forest,” said the president.
Each CPA corresponds to one hectare of protected forest, valid for 15 years. The annual value of the compensatory quota is R$ 100, with a 40% discount for one-time payments of R$ 900. Non-compensatory quotas, aimed at voluntary donations, cost R$ 60 per hectare. According to Nilson Pinto, the expectation of the Government of Pará is to expand the permanent financing of the 29 state UCs based on this innovative model.
The president of Ideflor-Bio also emphasized the legal security of the CPAs. “The integrity of forest cover is guaranteed by the State, as well as the land tenure regularity of the areas linked to the CPAs. We are offering a solid, transparent, and digital path for rural producers to regularize their situation and, at the same time, contribute to the financing of environmental protection,” he highlighted. The entire process is conducted online, through the Ideflor-Bio website, with the issuance of a digital certificate at the end of the transaction.
With the certificate, the producer can approach the State Secretariat for the Environment and Sustainability (Semas) to formalize the compensation and advance in the environmental regularization process of the property. In addition to ensuring compliance with the Forest Code, the instrument can open access to rural credit, sustainable markets, and asset appreciation, unlocking historical bottlenecks in agricultural production.
At the end of the presentation, Nilson Pinto highlighted the importance of the CPA for Pará's climate policy, especially in the context of COP 30, which will be held in Belém. “We are delivering a concrete solution that transforms forest conservation into an environmental and economic asset. With this, the State positions itself as a national and international reference in climate and environmental governance,” he declared. Agencia Para
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Palm oil saves forests and ecosystems says Brian Monteith
LAST Sunday was World Rainforest Day – who knew? Not many, I suspect. Such is the plethora of special days, weeks and months that you cannot be expected to know them all. So don’t feel guilty about not knowing about World Rainforest Day. After all, I’m sure you’re already doing your bit to save the world’s rainforests by boycotting foods with palm oil listed as an ingredient.
In which case I need to break it to you that if you are avoiding palm oil, you are probably doing more harm to rainforests than you realise. Not all vegetable oils are the same and sustainable palm oil is far better for our environment than the standard alternatives of soybean, sunflower or rapeseed oil.
A big lie has been propagated by vested interests that the easy way to stop the clearance of rainforests for agricultural land is to inspect every processed food in the supermarket for palm oil and if it is listed put it back on the shelf. You might feel good for a nanosecond, but just as a butterfly flapping its wings in a Brazilian rainforest might cause someone to drive the wrong way down a one-way street (it’s Chaos Theory, check it out) rejecting your bakery favourite or that jar of curry sauce made with the help of palm oil can have consequences too – and they are bad. It will likely cause greater deforestation.
Research from Ferrero and Chester Zoo has revealed that public understanding of sustainable palm oil remains low. Although 62 per cent of Brits surveyed are aware of palm oil and its uses, only 11 per cent said they understood what sustainable palm oil is, and 39 per cent admitted to having just a vague idea. That explains why more than half of UK adults (58 per cent) report that they sometimes actively avoid products containing palm oil due to this confusion.
Fortunately the survey also found Brits are open to change, with 71 per cent saying that learning more about sustainable palm oil would influence their buying decisions and 74 per cent of those who are already aware of it say it’s important to choose it.
The reality is we have been seeking for decades (far longer if you include the arrival of margarine to replace butter) to find ingredients that make us healthier, cost less and use less land to cultivate. Farmers are no fools, and will always seek to grow crops that give them the best return for their investment, but the outcome varies depending on their climate (rainfall, temperatures etc), the nature of their soil and their ability to plant and harvest the crop. For Europe’s already cleared forests that has meant the use of oils made from seeds such as sunflowers, rape and soy.
In Southeast Asia the preference is palm oil and we should be thankful for that, for if it did not exist the deforestation in Malaysia, Indonesia and other neighbouring countries would be far, far greater. Some environmental zealots like to think of a world without palm oil but to produce the same amount of refined oil would require far more land, meaning more clearance of vegetation and fewer undisturbed animal habitats.
Consider some facts. Palm oil requires around one-ninth the land of substitutes such as rapeseed, olive and soybean. Because of its high yield, palm oil takes up just 0.38 per cent of global agricultural land but contributes over 56 per cent of global edible oils and fats exports. To keep pace with growing food demand would require cultivating an additional 36million hectares of oil palm, whereas soybean, the second most popular oil crop, would need 204million more hectares. On top of this, producing palm oil takes significantly fewer amounts of fertiliser, pesticides and energy inputs.
To give some sense of scale, globally the world currently uses 322million hectares (an area the size of India) to grow oil crops. If we sourced food oils only from the demonised oil palm we would need just 77million hectares – four times less, meaning there would have been far less deforestation – but were we to choose olive oil we’d need 660million hectares. That’s the equivalent of two Indias by landmass.
It may be hard to swallow for virtue signallers, but anyone wanting to protect the rainforest should be looking at the ingredients and rejecting other oils in preference to palm oil.
If there is a problem it is the amount of forest being cleared in Brazil to grow soy. Last year Brazil lost 2.8million/ha of primary forest (its second highest in 20 years) while Malaysia lost only 0.0689million/ha (its lowest in 20 years). In addition to this achievement, Malaysia’s ambitious reforestation target of planting 100million trees has already been met ahead of the 2025 deadline. China’s programme of 70million trees and Brazil’s 73million are not completed.
Were they able to, I’ve no doubt European farmers would be growing the oil palm too. That the EU seeks to place high tariffs on palm oil and subsidise sunflower and rapeseed cultivation has everything to do with protecting European farmers’ incomes and little to do with saving the planet or its rainforests.
The good news is deforestation from oil palm cultivation is trending down. There is a lot of work being done to ensure this economically vital crop can continue being produced without damage to the environment. For instance in Malaysia, 83 per cent of palm oil refining capacity is now certified as sustainable under a commitment to ‘No Deforestation, Peat and Exploitation (NDPE)’.
The fundamental point is if we did not cultivate oil palm but used other vegetable oil sources, their far-lower yields would require substantially more land, resulting in greater levels of deforestation.
So think carefully about it. Farmers make their choice not just because of climate, soil and price but also because of yield. The fact that in Southeast Asia farmers can choose palm oil has reduced the amount of global deforestation that might have taken place. We should be thankful to those farmers and happy to purchase any products that use sustainable palm oil instead of the alternatives.
This article appeared in Country Squire Magazine on June 25, 2025, and is republished by kind permission Conservative Woman
Indonesia's BRICS Ascension: A Pivot to Multipolar Growth in Agriculture, Infrastructure, and Sovereign Wealth
The global economic order is undergoing a seismic shift, with emerging markets like Indonesia leveraging strategic alliances to carve out new pathways for growth. As the first Southeast Asian nation to secure full BRICS membership in 2025, Indonesia has positioned itself as a linchpin in the bloc's ambition to reshape global trade, finance, and diplomacy. This move, coupled with its deepening strategic ties with Russia and the launch of its $2.8 billion Danantara sovereign wealth fund, presents a compelling case for investors to allocate capital to Indonesian equities and bonds. Below, we dissect the opportunities in agriculture, infrastructure, and financial innovation, while evaluating risks in a world of fragmented economic blocs.
The Growth Engine: GDP Projections and Structural Reforms
Indonesia's economy is projected to grow at an average annual rate of 4.8% through 2027, per World Bank estimates, with upside potential to 5.5% if structural reforms—such as simplifying bureaucratic processes and expanding trade corridors—are executed effectively. The government's 2029 target of 8% growth, while ambitious, underscores its confidence in sectors like construction, manufacturing, and digital infrastructure.
The data highlights Indonesia's convergence with BRICS peers, with its 2024 GDP of $1.47 trillion and a trajectory to surpass $2.1 trillion by 2030. This expansion is underpinned by its status as the world's fourth-largest population, a young workforce, and a strategic location in the Indo-Pacific.
Agriculture: A $1.5B Partnership with Russia
Indonesia and Russia have forged a robust agricultural alliance, driven by BRICS frameworks. Russian wheat exports to Indonesia surged 22% in 2024, while talks to open Indonesian markets to Russian beef and dairy products are advancing. A landmark 2025 Memorandum of Understanding on Halal certification—Indonesia's Muslim-majority market is a $200 billion opportunity—could further boost bilateral trade.
Investment opportunities abound in:
- Grain logistics: Companies like PT Bumi Resources (BMRI.JK) are expanding port facilities to handle Russian imports.
- Livestock production: Firms with certification capabilities, such as PT Sembcorp Pasific (SEMPROF.JK), may benefit from Russia's entry into Indonesia's meat market.
- Halal-compliant exports: Brands in dairy and poultry could leverage Russia's demand, supported by BRICS-backed trade finance.
Infrastructure: Ports, Palms, and Putin's Play
Indonesia's $3.8 billion annual housing program and infrastructure push are being amplified by Russian expertise. Russia's FESCO and Delo Group are spearheading projects such as:
- A palm oil terminal in Novorossiysk, leveraging Indonesia's role as the world's top palm producer.
- Expanded container routes linking Jakarta to Russia's Far East, reducing shipping times to Europe by 10 days.
The Danantara Sovereign Wealth Fund, designed to attract $2.8 billion in private capital, is already funding joint ventures with Russian firms in port modernization and renewable energy. Investors should monitor:
- Stocks tied to construction materials: Holcim Indonesia (HMSP.JK) and Semen Indonesia (SMGR.JK) are core to infrastructure projects.
- Maritime logistics: PT Pelindo (PELI.JK), which operates key ports, stands to gain from Russian trade partnerships. AINVEST
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Turning Waste into Watts: How Biogas is Powering Malaysia’s Climate Future
From afar, it looks like a dark, dome-shaped igloo — or maybe a croissant-shaped spacecraft — planted between rows of palm trees and dense forest. The structure stands out against the rural landscape, a quiet yet promising symbol of Malaysia’s shift toward renewable energy.
But this isn’t alien technology. It’s a biogas plant. And this isn’t science fiction — it’s science in action.
On the outskirts of Segari, Perak, Dindings Farms Sdn Bhd has been quietly tackling pollution, energy costs, and emissions for over a decade. The farm was among Malaysia’s earliest adopters of biogas technology in the livestock sector, converting pig waste into renewable electricity.
“We’ve been doing this for more than 10 years,” says Dindings Farms manager Yeong who has been working there since 2004. “It helps us manage our waste, cut our electricity bills, and reduce our emissions. With rising energy costs, we’re planning to do even more.”
Installed in 2011 at RM4 million, the plant generates up to 500 kilowatts of power — enough to run the entire operation — while saving around RM35,000 per month on electricity.
Dindings Farms has been managing a key environmental burden: animal waste that threatens nearby waterways.
The science: Anaerobic digestion explained
Biogas is a renewable fuel made mostly of methane (CH₄), a flammable gas released when organic waste breaks down without oxygen. Capturing and burning it can generate electricity or heat, much like natural gas, but without extracting fossil fuels.
This process, called anaerobic digestion, happens inside sealed tanks known as biodigesters. Think of it as a giant stomach, where natural microbes “eat” waste like manure, food scraps, or palm oil sludge and produce energy in the form of gas. What’s left behind is digestate — a nutrient-rich slurry that can be used as fertiliser.
“It’s a triple win,” says chartered chemical engineer Hong Wai Onn. “You manage waste, produce clean energy, and return nutrients to the soil.”
Kampung Selamat: A community hopes for change
In Kampung Selamat, Penang, pig farmers are hoping new technology will help them clean up long-standing waste issues — and possibly generate energy in the future. For decades, farms here have managed pig waste using traditional earthen ponds located within each farm compound.
But growing environmental concerns, particularly over water pollution, have pushed the community toward a shared solution. Under a state-led initiative, a company called HRB Q Tech Sdn Bhd has been appointed to manage farm effluent. So far, two farms have installed a treatment system known as Quantum Thermal Pyrolysis Cracking (an advanced method that breaks down organic waste at high temperatures without oxygen).
“We hope this system can solve the pollution problem in Kampung Selamat,” said Tang, a pig farmer part of the Federation of Livestock Farmers' Associations of Malaysia (FLFAM). “The cost is not cheap, but what matters is the outcome.”
The treated water is monitored daily by the Department of Veterinary Services (DVS) in Penang to evaluate its effectiveness. If proven successful, this model could become a blueprint for other farming communities grappling with environmental compliance and waste management.
While this system is currently focused on environmental protection, farmers are open to the possibility that technologies like biogas digesters could one day complement their operations, helping not just to treat waste, but also to generate renewable energy and reduce reliance on the grid.
What’s holding biogas back?
Malaysia’s biogas journey is one of immense potential and persistent barriers. In the palm oil sector, for example, fluctuations in palm oil mill effluent (POME) supply, which follow harvesting cycles, make it difficult to maintain stable biogas production. Smaller farms, particularly pig or cattle operations, often lack the scale or capital investment needed to make biogas systems financially viable.
Policy uncertainty compounds these issues. The national Feed-in Tariff (FiT) scheme — designed to pay producers for renewable electricity supplied to the grid — has seen inconsistent implementation, with variable tariff rates and competitive bidding introduced in 2017. Additionally, under current carbon market rules, credits are granted for methane capture but not for the renewable electricity generated from biogas, limiting financial incentives.
Still, there are signs of innovation. A palm oil mill in Sabah has successfully upgraded its biogas into bio-compressed natural gas (bio-CNG) to fuel its transport fleet, reducing reliance on diesel. Other projects are exploring cluster-based biogas hubs, where multiple farms or mills combine resources to share infrastructure and scale more efficiently.
Experts argue that policy and regulatory reforms are key. “The technology works,” says Hong, who is also a Fellow of the Institution of Chemical Engineers, the Royal Society of Chemistry, and the Malaysian Institute of Management. “What’s needed now is stable policy, better access to the grid, predictable tariffs, and carbon credits that reward both methane capture and energy production.”
The policy gap on methane
Malaysia’s pledge to reduce methane emissions by 30% by 2030 under the Global Methane Pledge (GMP) was a bold step, but actual implementation has lagged behind. A recent policy brief by Universiti Malaya, supported by CERAH and the Environmental Defense Fund, highlights the need for a clear national strategy.
According to the brief, Associate Professor of Environmental Politics at Universiti Malaya Dr. Helena Varkkey, said that Malaysia lacks a dedicated methane policy and that existing sector-specific regulations are either vague or inaccessible.
She and her team recommend integrating methane governance into the broader climate policy framework, especially as Malaysia updates its National Climate Change Policy and drafts a Climate Change Act.
The brief also points to a lack of transparency and public awareness. A survey conducted by Dr. Varkkey’s team found that 58% of Malaysians were unaware of methane as a greenhouse gas, despite its significant role in global warming and contribution to air pollution.
As the brief notes, methane is linked to the formation of ground-level ozone, which causes around 500,000 premature deaths globally each year.
By connecting methane reduction to public health and air quality benefits, and by strengthening corporate and civil society engagement, the brief argues that Malaysia could unlock both environmental and economic gains.
The way forward
From the early adopters at Dindings Farms, who have been steadily powering their operations with biogas for over a decade, to the community-driven effort in Kampung Selamat, Malaysia’s rural farming sector is proving that climate action and agricultural resilience can go hand in hand.
What’s needed next is clear: sustained policy support, financing mechanisms for smallholders, and public-private collaboration to scale successful models.
Malaysia already has the waste, from palm oil effluent, livestock manure, and food scraps — and the technology. With the right investments and incentives, much of what is currently flared, dumped, or left to rot could instead power homes, reduce emissions, and support livelihoods.
“Biogas isn’t a silver bullet,” adds Hong. “But it’s rare to find a solution that addresses waste, energy, and climate — all at once.”
And in a country racing toward its net-zero ambitions, the promise of rural biogas offers a hopeful path forward — not through megaprojects, but one biodigester, one farm at a time. Astro Awani
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Environmental compensation gains new momentum with Environmental Protection Quota (CPA), says president of Ideflor-Bio
The meeting at the Sectoral Chamber of Palm Oil brought together representatives from the productive and environmental sectors to discuss the impacts and opportunities of the new regulation, especially for rural landowners with consolidated environmental liabilities.
In a virtual presentation to the Sectoral Chamber of the Palm Oil Productive Chain, held on Thursday (26), the president of the Institute of Forest Development and Biodiversity of Pará (Ideflor-Bio), Nilson Pinto, highlighted the advances promoted by Ordinance No. 364/2025, which regulates the use of legal reserve compensation in conservation areas. The meeting brought together representatives from the productive and environmental sectors to discuss the impacts and opportunities of the new regulation, especially for rural landowners with consolidated environmental liabilities.
During the lecture, Nilson Pinto presented one of the main instruments of Pará's environmental policy: the Environmental Protection Quota (CPA). The mechanism allows rural properties with legal reserve liabilities up to July 2008 to regularize by acquiring quotas linked to state Conservation Units (UCs). “Economic production finances environmental protection. And environmental protection enables economic production. This is the logic of a policy that has the power to unite two historical interests of Pará: the development of the countryside and the conservation of the forest,” said the president.
Each CPA corresponds to one hectare of protected forest, valid for 15 years. The annual value of the compensatory quota is R$ 100, with a 40% discount for one-time payments of R$ 900. Non-compensatory quotas, aimed at voluntary donations, cost R$ 60 per hectare. According to Nilson Pinto, the expectation of the Government of Pará is to expand the permanent financing of the 29 state UCs based on this innovative model.
The president of Ideflor-Bio also emphasized the legal security of the CPAs. “The integrity of forest cover is guaranteed by the State, as well as the land tenure regularity of the areas linked to the CPAs. We are offering a solid, transparent, and digital path for rural producers to regularize their situation and, at the same time, contribute to the financing of environmental protection,” he highlighted. The entire process is conducted online, through the Ideflor-Bio website, with the issuance of a digital certificate at the end of the transaction.
With the certificate, the producer can approach the State Secretariat for the Environment and Sustainability (Semas) to formalize the compensation and advance in the environmental regularization process of the property. In addition to ensuring compliance with the Forest Code, the instrument can open access to rural credit, sustainable markets, and asset appreciation, unlocking historical bottlenecks in agricultural production.
At the end of the presentation, Nilson Pinto highlighted the importance of the CPA for Pará's climate policy, especially in the context of COP 30, which will be held in Belém. “We are delivering a concrete solution that transforms forest conservation into an environmental and economic asset. With this, the State positions itself as a national and international reference in climate and environmental governance,” he declared. Agencia Para
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Palm oil saves forests and ecosystems says Brian Monteith
LAST Sunday was World Rainforest Day – who knew? Not many, I suspect. Such is the plethora of special days, weeks and months that you cannot be expected to know them all. So don’t feel guilty about not knowing about World Rainforest Day. After all, I’m sure you’re already doing your bit to save the world’s rainforests by boycotting foods with palm oil listed as an ingredient.
In which case I need to break it to you that if you are avoiding palm oil, you are probably doing more harm to rainforests than you realise. Not all vegetable oils are the same and sustainable palm oil is far better for our environment than the standard alternatives of soybean, sunflower or rapeseed oil.
A big lie has been propagated by vested interests that the easy way to stop the clearance of rainforests for agricultural land is to inspect every processed food in the supermarket for palm oil and if it is listed put it back on the shelf. You might feel good for a nanosecond, but just as a butterfly flapping its wings in a Brazilian rainforest might cause someone to drive the wrong way down a one-way street (it’s Chaos Theory, check it out) rejecting your bakery favourite or that jar of curry sauce made with the help of palm oil can have consequences too – and they are bad. It will likely cause greater deforestation.
Research from Ferrero and Chester Zoo has revealed that public understanding of sustainable palm oil remains low. Although 62 per cent of Brits surveyed are aware of palm oil and its uses, only 11 per cent said they understood what sustainable palm oil is, and 39 per cent admitted to having just a vague idea. That explains why more than half of UK adults (58 per cent) report that they sometimes actively avoid products containing palm oil due to this confusion.
Fortunately the survey also found Brits are open to change, with 71 per cent saying that learning more about sustainable palm oil would influence their buying decisions and 74 per cent of those who are already aware of it say it’s important to choose it.
The reality is we have been seeking for decades (far longer if you include the arrival of margarine to replace butter) to find ingredients that make us healthier, cost less and use less land to cultivate. Farmers are no fools, and will always seek to grow crops that give them the best return for their investment, but the outcome varies depending on their climate (rainfall, temperatures etc), the nature of their soil and their ability to plant and harvest the crop. For Europe’s already cleared forests that has meant the use of oils made from seeds such as sunflowers, rape and soy.
In Southeast Asia the preference is palm oil and we should be thankful for that, for if it did not exist the deforestation in Malaysia, Indonesia and other neighbouring countries would be far, far greater. Some environmental zealots like to think of a world without palm oil but to produce the same amount of refined oil would require far more land, meaning more clearance of vegetation and fewer undisturbed animal habitats.
Consider some facts. Palm oil requires around one-ninth the land of substitutes such as rapeseed, olive and soybean. Because of its high yield, palm oil takes up just 0.38 per cent of global agricultural land but contributes over 56 per cent of global edible oils and fats exports. To keep pace with growing food demand would require cultivating an additional 36million hectares of oil palm, whereas soybean, the second most popular oil crop, would need 204million more hectares. On top of this, producing palm oil takes significantly fewer amounts of fertiliser, pesticides and energy inputs.
To give some sense of scale, globally the world currently uses 322million hectares (an area the size of India) to grow oil crops. If we sourced food oils only from the demonised oil palm we would need just 77million hectares – four times less, meaning there would have been far less deforestation – but were we to choose olive oil we’d need 660million hectares. That’s the equivalent of two Indias by landmass.
It may be hard to swallow for virtue signallers, but anyone wanting to protect the rainforest should be looking at the ingredients and rejecting other oils in preference to palm oil.
If there is a problem it is the amount of forest being cleared in Brazil to grow soy. Last year Brazil lost 2.8million/ha of primary forest (its second highest in 20 years) while Malaysia lost only 0.0689million/ha (its lowest in 20 years). In addition to this achievement, Malaysia’s ambitious reforestation target of planting 100million trees has already been met ahead of the 2025 deadline. China’s programme of 70million trees and Brazil’s 73million are not completed.
Were they able to, I’ve no doubt European farmers would be growing the oil palm too. That the EU seeks to place high tariffs on palm oil and subsidise sunflower and rapeseed cultivation has everything to do with protecting European farmers’ incomes and little to do with saving the planet or its rainforests.
The good news is deforestation from oil palm cultivation is trending down. There is a lot of work being done to ensure this economically vital crop can continue being produced without damage to the environment. For instance in Malaysia, 83 per cent of palm oil refining capacity is now certified as sustainable under a commitment to ‘No Deforestation, Peat and Exploitation (NDPE)’.
The fundamental point is if we did not cultivate oil palm but used other vegetable oil sources, their far-lower yields would require substantially more land, resulting in greater levels of deforestation.
So think carefully about it. Farmers make their choice not just because of climate, soil and price but also because of yield. The fact that in Southeast Asia farmers can choose palm oil has reduced the amount of global deforestation that might have taken place. We should be thankful to those farmers and happy to purchase any products that use sustainable palm oil instead of the alternatives.
This article appeared in Country Squire Magazine on June 25, 2025, and is republished by kind permission Conservative Woman
June 28, 2025
Malaysia targets 'low-risk' EU status to tackle deforestation rule
KUALA LUMPUR: Malaysia's newly established special committee on the European Union Deforestation Regulation (EUDR) is examining how countries like Thailand attained a low-risk classification.
This status allows them to export forest-based products to the EU with fewer restrictions.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the committee includes his ministry, the Natural Resources and Environmental Sustainability Ministry, and the Investment, Trade and Industry Ministry.
It will coordinate efforts to help Malaysia secure low-risk status for forest-based product exports.
"The first step is to review and understand why Malaysia is categorised as standard risk, while countries like Thailand have achieved a low-risk status.
"We need to identify the differences and work on improving them. Eventually, we too will attain a low-risk classification.
"At present, 30 per cent of our exports are subject to sampling and inspection.
"To facilitate exports, we must upgrade from standard risk to low-risk.
"Once we achieve low-risk status, our products will enter international markets more easily."
He said this after attending the Titiwangsa Umno delegates' meeting.
Johari, who chairs the committee, said that to attain low-risk status, Malaysia must align its forest governance, certification systems and monitoring practices with international standards.
He added that cooperation from state governments will be crucial, given their role in forest land management.
Asked when Malaysia might achieve low-risk status, Johari said: "If possible, as soon as possible, but we need to do it right."
"Some areas may have exceeded deforestation thresholds, so they will need to be reviewed carefully."
On June 26, the government formed a special committee to spearhead Malaysia's response to EUDR, aiming to maintain EU market access and strengthen sustainability compliance across key export sectors.
It held its first meeting in Putrajaya on June 26, bringing together officials and technical experts to align national policies, implementation strategies and data systems with EUDR requirements.
The committee will also serve as the central platform for Malaysia's engagement with the European Commission, including the submission of official datasets, policy updates, and participation in technical exchanges.
This whole-of-government effort underscores Malaysia's commitment to sustainability across key commodities — including palm oil, rubber, timber and cocoa — which collectively generated RM186 billion in export value last year. New Straits Times
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"Exploring the Uncharted Waters: Malaysian Palm Oil's Silent Entry into Egypt's Market Despite Strong Demand"
Malaysian palm oil, despite being a major global commodity and a key export product to Egypt, has not yet fully "gone public" or established a dominant direct presence in the Egyptian market in terms of local production or investment. Several factors explain this situation, rooted in economic, geopolitical, trade, and strategic considerations.
Economic and Market Dynamics
Egypt is a significant importer of palm oil, consuming about 1.2 million tonnes annually, with Malaysian palm oil accounting for over half of these imports. Palm oil is essential for Egyptian consumers due to its cost-effectiveness and wide use in cooking and processed foods, especially given Egypt’s low consumer purchasing power amid high inflation. Despite this strong demand, Malaysian palm oil mainly enters Egypt as an imported commodity rather than through local production or public market presence.
Trade Agreements and Market Access
Currently, Malaysia and Egypt are negotiating a Free Trade Agreement (FTA) that aims to strengthen bilateral trade, with palm oil as a key pillar. Egypt already participates in several multilateral trade agreements such as GAFTA, AfCFTA, and COMESA, facilitating regional trade but also complicating direct Malaysian market entry strategies due to existing trade frameworks. These agreements offer opportunities for Malaysian palm oil to expand regionally via Egypt as a hub but do not yet translate into Malaysian palm oil companies going public or establishing major local operations in Egypt.
Geopolitical and Regional Risks
Regional geopolitical tensions, such as the conflict in Gaza and disruptions in the Red Sea, pose risks to trade flows but have not significantly deterred Malaysian palm oil exports to Egypt, which remain resilient. However, these risks may contribute to cautious investment approaches by Malaysian companies in establishing local public enterprises or manufacturing bases in Egypt.
Investment and Collaboration Opportunities SEE
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CEVA Logistics makes HVO100 biofuel available across UK network
Third-party logistics provider CEVA Logistics has announced it is making HVO100 biofuel, the pure form of hydrotreated vegetable oil (HVO), available across its entire network in the UK.
To support this transition from diesel to HVO100, CEVA Logistics has confirmed it will be investing in strategically-placed biofuel infrastructure at 18 key locations across the UK.
CEVA Logistics currently operates around 200 HVO vehicles in the UK, and with this investment in infrastructure, it hopes to increase this number to 450 by the end of the year.
Made from recycled cooking oils, CEVA Logistics’ HVO100 fuel is ISCC certified, does not contain palm oil and ‘delivers approximately a 90% reduction in CO2e emissions from well to wheel’.
So far in 2025, CEVA Logistics has reduced CO2e emissions by 2,742 tons in the UK thanks to the use of more than one million litres of HVO.
More broadly across Europe, CEVA currently operates more than 550 trucks powered by HVO100 and B100 biofuels, which it says has led to an annual saving of nearly 14,000 tons of CO2e. Logistics Manager
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Seed Oil Free Certified Partners With RangeMe to Accelerate Growing Demand
BOCA RATON, Fla.--(BUSINESS WIRE)--The Seed Oil Free Alliance announced today that Seed Oil Free Certified™ is now a searchable attribute on RangeMe, the industry-leading product discovery platform used by Walmart, Kroger, Sprouts, Thrive Market, and other major national and regional retailers. This new feature enables retail buyers to easily identify and filter products that are Seed Oil Free Certified, aligning with a growing wave of consumer demand for transparently labelled, heat-stable, and seed-oil-free food options. Certified brands can now display the Seed Oil Free Certified Seal directly on their RangeMe profile, gaining visibility among thousands of retailers.
“Displaying the Seed Oil Free Certified Seal on RangeMe signals to retailers that Every Body Eat snacks, like our cookie bites, snack thins, and crackers, are made with real, high-quality ingredients like extra virgin olive oil and sustainably sourced palm oil,” said Trish Thomas, Co-Founder of Every Body Eat. “It helps us stand out to buyers who prioritize clean-label products and care about ingredient integrity as much as we do.”
RangeMe serves as a digital bridge between suppliers and retailers, streamlining the discovery and evaluation of new products. According to new retail data released this week from SPINS, sales of Seed Oil Free Certified products grew 216 percent in the first quarter of 2025 compared with the same period in 2024, driven by both natural and conventional retail channels. By integrating Seed Oil Free Certified into RangeMe’s searchable filters, retail buyers can act quickly on surging consumer demand and efficiently discover certified products that align with evolving ingredient preferences.
Seed Oil Free Certified brands can now:
Create a free profile on RangeMe.com
Select “Seed Oil Free Certified™” under the certifications section of their listing
Be discovered by buyers who are filtering for seed-oil-free products Business Wire
----------
Malaysia targets 'low-risk' EU status to tackle deforestation rule
KUALA LUMPUR: Malaysia's newly established special committee on the European Union Deforestation Regulation (EUDR) is examining how countries like Thailand attained a low-risk classification.
This status allows them to export forest-based products to the EU with fewer restrictions.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the committee includes his ministry, the Natural Resources and Environmental Sustainability Ministry, and the Investment, Trade and Industry Ministry.
It will coordinate efforts to help Malaysia secure low-risk status for forest-based product exports.
"The first step is to review and understand why Malaysia is categorised as standard risk, while countries like Thailand have achieved a low-risk status.
"We need to identify the differences and work on improving them. Eventually, we too will attain a low-risk classification.
"At present, 30 per cent of our exports are subject to sampling and inspection.
"To facilitate exports, we must upgrade from standard risk to low-risk.
"Once we achieve low-risk status, our products will enter international markets more easily."
He said this after attending the Titiwangsa Umno delegates' meeting.
Johari, who chairs the committee, said that to attain low-risk status, Malaysia must align its forest governance, certification systems and monitoring practices with international standards.
He added that cooperation from state governments will be crucial, given their role in forest land management.
Asked when Malaysia might achieve low-risk status, Johari said: "If possible, as soon as possible, but we need to do it right."
"Some areas may have exceeded deforestation thresholds, so they will need to be reviewed carefully."
On June 26, the government formed a special committee to spearhead Malaysia's response to EUDR, aiming to maintain EU market access and strengthen sustainability compliance across key export sectors.
It held its first meeting in Putrajaya on June 26, bringing together officials and technical experts to align national policies, implementation strategies and data systems with EUDR requirements.
The committee will also serve as the central platform for Malaysia's engagement with the European Commission, including the submission of official datasets, policy updates, and participation in technical exchanges.
This whole-of-government effort underscores Malaysia's commitment to sustainability across key commodities — including palm oil, rubber, timber and cocoa — which collectively generated RM186 billion in export value last year. New Straits Times
---------
"Exploring the Uncharted Waters: Malaysian Palm Oil's Silent Entry into Egypt's Market Despite Strong Demand"
Malaysian palm oil, despite being a major global commodity and a key export product to Egypt, has not yet fully "gone public" or established a dominant direct presence in the Egyptian market in terms of local production or investment. Several factors explain this situation, rooted in economic, geopolitical, trade, and strategic considerations.
Economic and Market Dynamics
Egypt is a significant importer of palm oil, consuming about 1.2 million tonnes annually, with Malaysian palm oil accounting for over half of these imports. Palm oil is essential for Egyptian consumers due to its cost-effectiveness and wide use in cooking and processed foods, especially given Egypt’s low consumer purchasing power amid high inflation. Despite this strong demand, Malaysian palm oil mainly enters Egypt as an imported commodity rather than through local production or public market presence.
Trade Agreements and Market Access
Currently, Malaysia and Egypt are negotiating a Free Trade Agreement (FTA) that aims to strengthen bilateral trade, with palm oil as a key pillar. Egypt already participates in several multilateral trade agreements such as GAFTA, AfCFTA, and COMESA, facilitating regional trade but also complicating direct Malaysian market entry strategies due to existing trade frameworks. These agreements offer opportunities for Malaysian palm oil to expand regionally via Egypt as a hub but do not yet translate into Malaysian palm oil companies going public or establishing major local operations in Egypt.
Geopolitical and Regional Risks
Regional geopolitical tensions, such as the conflict in Gaza and disruptions in the Red Sea, pose risks to trade flows but have not significantly deterred Malaysian palm oil exports to Egypt, which remain resilient. However, these risks may contribute to cautious investment approaches by Malaysian companies in establishing local public enterprises or manufacturing bases in Egypt.
Investment and Collaboration Opportunities SEE
---------
CEVA Logistics makes HVO100 biofuel available across UK network
Third-party logistics provider CEVA Logistics has announced it is making HVO100 biofuel, the pure form of hydrotreated vegetable oil (HVO), available across its entire network in the UK.
To support this transition from diesel to HVO100, CEVA Logistics has confirmed it will be investing in strategically-placed biofuel infrastructure at 18 key locations across the UK.
CEVA Logistics currently operates around 200 HVO vehicles in the UK, and with this investment in infrastructure, it hopes to increase this number to 450 by the end of the year.
Made from recycled cooking oils, CEVA Logistics’ HVO100 fuel is ISCC certified, does not contain palm oil and ‘delivers approximately a 90% reduction in CO2e emissions from well to wheel’.
So far in 2025, CEVA Logistics has reduced CO2e emissions by 2,742 tons in the UK thanks to the use of more than one million litres of HVO.
More broadly across Europe, CEVA currently operates more than 550 trucks powered by HVO100 and B100 biofuels, which it says has led to an annual saving of nearly 14,000 tons of CO2e. Logistics Manager
---------
Seed Oil Free Certified Partners With RangeMe to Accelerate Growing Demand
BOCA RATON, Fla.--(BUSINESS WIRE)--The Seed Oil Free Alliance announced today that Seed Oil Free Certified™ is now a searchable attribute on RangeMe, the industry-leading product discovery platform used by Walmart, Kroger, Sprouts, Thrive Market, and other major national and regional retailers. This new feature enables retail buyers to easily identify and filter products that are Seed Oil Free Certified, aligning with a growing wave of consumer demand for transparently labelled, heat-stable, and seed-oil-free food options. Certified brands can now display the Seed Oil Free Certified Seal directly on their RangeMe profile, gaining visibility among thousands of retailers.
“Displaying the Seed Oil Free Certified Seal on RangeMe signals to retailers that Every Body Eat snacks, like our cookie bites, snack thins, and crackers, are made with real, high-quality ingredients like extra virgin olive oil and sustainably sourced palm oil,” said Trish Thomas, Co-Founder of Every Body Eat. “It helps us stand out to buyers who prioritize clean-label products and care about ingredient integrity as much as we do.”
RangeMe serves as a digital bridge between suppliers and retailers, streamlining the discovery and evaluation of new products. According to new retail data released this week from SPINS, sales of Seed Oil Free Certified products grew 216 percent in the first quarter of 2025 compared with the same period in 2024, driven by both natural and conventional retail channels. By integrating Seed Oil Free Certified into RangeMe’s searchable filters, retail buyers can act quickly on surging consumer demand and efficiently discover certified products that align with evolving ingredient preferences.
Seed Oil Free Certified brands can now:
Create a free profile on RangeMe.com
Select “Seed Oil Free Certified™” under the certifications section of their listing
Be discovered by buyers who are filtering for seed-oil-free products Business Wire
----------
June 27, 2025
RSPO Connects Latin American Palm Growers with Key Buyers from the Americas to Strengthen Sustainable Supply Chains
BOGOTA, Colombia, June 26, 2025 /PRNewswire/ -- Sustainability representatives from leading consumer goods companies in the United States, Mexico, and Brazil, including Hershey's, The J.M. Smucker Company, Blommer Chocolate Company, Edgewell Personal Care, Natura, and Grupo Bimbo, recently traveled to the Ucayali region in the Peruvian Amazon as part of a tour carried out by the Roundtable on Sustainable Palm Oil (RSPO). The visit also brought together key local actors from Peru's sustainable palm oil sector, including the Association of Palm Growers of Monte Alegre in Neshuya (APROMAN), the Central Committee of Palm Growers of Ucayali (COCEPU), Oleaginosas Amazónicas S.A. (OLAMSA), and Agroindustrias Oleaginosas del Perú S.A. (AOPSA), highlighting the critical role of independent smallholders and local processors in advancing sustainability in the region.
The milestone tour provided downstream RSPO Members with a unique field experience and direct exposure to the sustainable palm oil production model adopted by certified independent smallholders in Peru, Colombia, Mexico and Honduras, setting a regional example of best practices in Latin America. Accompanied by experts from RSPO and Solidaridad Network, participants visited four key sites within Peru's sustainable palm oil landscape: an organic farm operated by COCEPU, the palm oil mill OLAMSA, the value-added palm products company AOPSA, and a farm belonging to APROMAN, the first group of independent smallholders in Peru to become eligible for RSPO certification.
In addition to strengthening connections between key growers and buyers in the sustainable palm oil supply chain, the tour provided valuable insights into how the Peruvian smallholder production model has transformed traditional agricultural practices into more sustainable and responsible approaches. These improvements have led to increased productivity and a more efficient use of natural resources.
"Collaborative strategies and tailored approaches based on a whole-supply-chain perspective can empower more producers to commit to a prosperous palm sector that safeguards the environment and fosters strong, resilient communities," emphasized Pedro Seijas Cárdenas, Technical Manager of APROMAN PR Newswire
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Regulation on oil palm expansion in Peru’s Amazon could endanger forests, say critics
Oil palm is a crop whose derivatives have multiple uses, resulting in staggering global demand. Because of this, Peru’s Ministry of Agrarian Development and Irrigation (MIDAGRI in Spanish) has developed a new regulation to boost oil palm production. On March 22, 2025, MIDAGRI published a ministerial resolution titled Policy Framework for the Sustainable Development of Oil Palm in Peru (2025–2034).
This document and its annex propose, among other things, expanding the agricultural frontier and increasing oil palm production, as well as improving competitiveness in the oil palm supply chain with a focus on sustainability. The projected expansion of oil palm cultivation outlined in the regulation would occur in the Amazon, which, according to the document, offers the optimal agro-climatic conditions for oil palm development.
In Peru, oil palm production has not been free from controversy, mainly because its expansion has often come at the expense of deforestation and has created conflict with Indigenous communities due to cases of irregular land appropriation. Oil palm is cultivated to obtain palm oil, which is used as a raw material in beauty products, toiletries, food and biodiesel.
According to MIDAGRI, the area currently cultivated with oil palm in Peru totals around 95,000 hectares (234,750 acres). Although the resolution does not specify how many hectares should be added nationwide, it does note that in the region of Ucayali, the regional oil palm development plan has identified “267,641 hectares (661,355 acres) with potential for oil palm production, mainly along the Federico Basadre Highway.”
“There are no more areas”
“It’s a set of regulations developed by the Ministry of Agriculture. First, it amended the Forestry Law to legalize all deforestation in the past 20 years. Second, there’s the promotion of oil palm, along with the Deforestation-Free Certificate approved last year which encouraged forest fires,” says Lucila Pautrat, director of the NGO Kené.
The amendment to the Forestry Law referred to by Pautrat was enacted in January 2024 amid criticism from various sectors that promote environmental protection. Some experts say that the law legalizes illegal deforestation.
Regarding the Deforestation-Free Certificate, this refers to a resolution approved by MIDAGRI in September 2024, which was revoked just a few days after its approval, following a complaint filed with the Public Prosecutor’s Office against the minister for agrarian development and irrigation, Ángel Manero, for authorizing the resolution. Mongabay
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Indonesia eyes 2026 for B50 fuel launch
Bojonegoro, East Java (ANTARA) - The Indonesian government remains committed to launching the Biodiesel 50 (B50) program in 2026, according to Deputy Minister of Energy and Mineral Resources Yuliot Tanjung.
B50 is a blended fuel containing 50 percent biofuel—mainly derived from palm oil—and 50 percent conventional diesel. Currently, the government is promoting B40, which consists of 40 percent biofuel and 60 percent diesel.
“We are evaluating B40 and planning to begin the implementation of the B50 program next year, in 2026,” Tanjung stated in Bojonegoro District, East Java, on Thursday (June 26).
However, he noted that the government had not ruled out the possibility of accelerating the B50 timeline, depending on the country’s capacity to produce sufficient fatty acid methyl esters (FAME)—a key biodiesel component derived from vegetable oils through transesterification.
“It is crucial to boost the production of FAME, as the supply must match the requirements of the B50 program. If possible, we will expedite its implementation,” he remarked.
Earlier, Agriculture Minister Andi Amran Sulaiman projected a rise in global crude palm oil (CPO) prices as a result of Indonesia’s shift toward B50.
Speaking in Jakarta in May, Sulaiman noted that the government plans to allocate around 5.3 million tons of CPO for B50 production in 2026.
“Last year, we exported 26 million tons of CPO. What will happen if we cut exports to 21 million tons? Prices will rise,” he explained.
He underlined that Indonesia currently supplies 65.94 percent of the world’s CPO, suggesting that reducing exports to support domestic biodiesel use would likely drive up global prices.
“A rise in CPO prices will mean better welfare for farmers, right? We will be pleased to see our farmers prosper,” he told reporters. Antara News
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Israel-Iran War Impetus for Indonesia to Use More Palm Oil Biodiesel
Tangerang. An analyst said Thursday that Iran’s looming blockade of the Strait of Hormuz could be a wake-up call for Indonesia to get its palm oil biodiesel policy in full swing.
The Israel-Iran war has sparked worries over oil supplies. The Iranian parliament recently backed a measure to close the Strait of Hormuz, a strategic waterway that facilitates the transport of more than a fifth of the world’s oil supply.
The planned closure, which didn't materialize, was a retaliation option that Tehran was considering after Israel’s most powerful ally, the United States, struck Iranian nuclear facilities.
Israel and Iran are currently on a fragile US-brokered ceasefire, but the 12-day war has shown how important it is for Indonesia to cut down on its oil imports and secure its domestic energy supplies. To this end, Indonesia should ramp up its palm oil biofuel production, according to energy expert Satya Widya Nugraha.
Indonesia has what it calls the B40 policy, which mandates a 40 percent mix of palm oil-based fuel in its biodiesel. The number corresponds to the percentage of palm oil content in the biodiesel. There are plans to further increase the mandatory blend, even up to B100 or having the biodiesel entirely derived from palm oil.
“President Prabowo Subianto has been pretty clear about his intentions on developing biomass. We also have the B40 policy, and plans are underway to raise it to B100 eventually. This is what we mean by moving towards energy self-reliance,” Satya said at the B-Universe Media Holdings office in Pantai Indah Kapuk 2, Tangerang.
Indonesia is the world’s largest palm oil producer; thus, the government’s choice to pick this commodity for its biodiesel mandate. The resource-rich nation has been raising its mandatory palm oil blend over the years, and aims to increase it to 50 percent in 2026. Indonesia has also allocated 15.6 million kiloliters of biodiesel for 2025 distribution.
The Indonesian Palm Oil Association (Gapki) data showed that nearly 4.1 million tons of the country’s palm oil had gone to domestic biodiesel consumption so far this year as of April. The country, however, did not export any biodiesel in January-April 2025 despite having sold 40,000 tons overseas over the same four-month period last year.
“The more we are less reliant on others, the smaller the impact of a regional or global-scale tension on our country,” Satya said. Jakarta Globe
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Proposed cap reduction on biofuels from cultivated biomass threatens feed protein supply
The decline in rapeseed meal exports has prompted the Union zur Förderung von Oel- und Proteinpflanzen e.V. (UFOP) to strongly oppose the proposed reduction of the cap on biofuels from cultivated biomass as outlined in the Federal Ministry for the Environment's draft bill.
The legislation is intended to implement the revised Renewable Energy Directive (Red III) at the national level and is under enormous time pressure, because Germany has already allowed the directive's implementation deadline to lapse.
The association has once again emphasised that the biodiesel market is by far the most important outlet for German and European rapeseed producers, as well as for German rapeseed mills, which have a combined processing capacity of approximately 10 million tonnes of seed.
The production of biofuels and the availability of domestic rapeseed meal are mutually dependent.
The UFOP has repeatedly pointed out this relationship as a prime example of an integrated bioeconomy.
The association has therefore called on the German Minister of Agriculture Alois Rainer to push for raising the cap to 5.3% during the ongoing interdepartmental coordination on the greenhouse gas quota legislation.
The increase would help compensate for the decline in overall energy demand in the transport sector resulting from the re-introduction of tax incentives for electromobility.
The association has also emphasised that biofuels make a significant contribution towards climate change mitigation - without placing a burden on the federal budget, since they are subject to full taxation.
According to data from the German Federal Statistical Office, Germany exported just over 1.4 million tonnes of rapeseed meal from July 2024 to April 2025. This was down 9% on the same period a year earlier.
Nearly all of this volume (around 1.3 tonnes) was delivered to EU member states. The largest share, 589,000 tonnes, went to the Netherlands, representing a decrease of almost 17% compared to the same period the previous year. Rapeseed meal deliveries to Sweden dropped 2%.
In contrast, exports to Denmark, Finland and France showed a positive trend. Denmark, Germany's second largest trading partner for rapeseed meal, ramped up its imports 2% to 184,000 tonnes.
Exports to France saw a remarkable rise. Due to a smaller domestic harvest, France strongly relied on imports, which climbed around 70% year-on-year to nearly 99,000 tonnes. Outside the EU, Switzerland remained the most important export destination, followed by the UK. Biofuels News
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Cross River Pledges Agriculture Support, Forest Conservation, Welcomes Dutch Investment
Cross River State Government has reiterated its commitment to agricultural transformation and environmental sustainability, calling on the Kingdom of the Netherlands to invest in the state’s thriving agriculture sector, particularly in oil palm processing and technology transfer.
Speaking during a courtesy visit by the Consul General of the Kingdom of the Netherlands, Mr. Michel Deelen, and his entourage on Tuesday, Governor Bassey Otu described the visit as a step toward deepening bilateral relations and expanding mutually beneficial partnerships.
“Our state is abundantly endowed with arable land and a favourable climate that supports year-round agriculture. Agriculture is our best foot forward in recalibrating our economy, and our policies are tailored to support both smallholder and large-scale farmers,” Governor Otu said.
He disclosed that his administration has implemented bold reforms in the agricultural sector, including a seven-year strategic cocoa and coffee development plan, the establishment of six new cocoa estates, free agronomic training, and processing hubs across viable zones.
He invited the Dutch Government and private sector to explore opportunities in oil palm processing, saying: “We welcome direct Dutch investments across the value chain of our oil palm industry. Cross River is not only a secure and investor-friendly state but also offers high returns on investment.”
He also emphasized the state’s advanced Digital Soil Mapping and Survey Database, which allows potential investors to remotely identify suitable farmlands by soil type and location.
Otu reiterated that Cross River is ready for responsible foreign investment and pledged full cooperation with partners who share the state’s vision of environmentally sustainable growth.
“Above all, we are a hospitable people, our doors are open to credible investors who are ready to make informed, ethical, and profitable investment choices in Cross River State.”
Responding, the Consul-General, Mr. Michel Deelen, commended the governor’s strong stance against illegal logging and described Cross River as “one of the most beautiful states” in Nigeria. He praised the clean and green environment of Calabar, and expressed delight in the constructive engagements with state officials.
“Illegal logging benefits no one but a few individuals, and we support your firm position against it,” he said. “However, we must also support communities and smallholder farmers who wish to expand production. That is why we are here, to assist in increasing yield without expanding farmland.”
Mr. Deelen emphasized the Netherlands’ focus on sustainable palm oil production through better seedlings, improved milling technology, and partnerships that protect forests while boosting income for local farmers.
He clarified that the Dutch position is not to impose restrictions but to collaborate in protecting global biodiversity. “We’re not here to tell you not to cut down trees. We understand the historical context. But we must all work together to preserve natural habitats for the common good,” he stated.
The visit comes as part of a broader collaboration in the area of sustainable agriculture and forest preservation. Cross River State, known for hosting one of the last remaining tropical rainforests in West Africa, is a focal point for international conservation efforts. Cross River Watch
RSPO Connects Latin American Palm Growers with Key Buyers from the Americas to Strengthen Sustainable Supply Chains
BOGOTA, Colombia, June 26, 2025 /PRNewswire/ -- Sustainability representatives from leading consumer goods companies in the United States, Mexico, and Brazil, including Hershey's, The J.M. Smucker Company, Blommer Chocolate Company, Edgewell Personal Care, Natura, and Grupo Bimbo, recently traveled to the Ucayali region in the Peruvian Amazon as part of a tour carried out by the Roundtable on Sustainable Palm Oil (RSPO). The visit also brought together key local actors from Peru's sustainable palm oil sector, including the Association of Palm Growers of Monte Alegre in Neshuya (APROMAN), the Central Committee of Palm Growers of Ucayali (COCEPU), Oleaginosas Amazónicas S.A. (OLAMSA), and Agroindustrias Oleaginosas del Perú S.A. (AOPSA), highlighting the critical role of independent smallholders and local processors in advancing sustainability in the region.
The milestone tour provided downstream RSPO Members with a unique field experience and direct exposure to the sustainable palm oil production model adopted by certified independent smallholders in Peru, Colombia, Mexico and Honduras, setting a regional example of best practices in Latin America. Accompanied by experts from RSPO and Solidaridad Network, participants visited four key sites within Peru's sustainable palm oil landscape: an organic farm operated by COCEPU, the palm oil mill OLAMSA, the value-added palm products company AOPSA, and a farm belonging to APROMAN, the first group of independent smallholders in Peru to become eligible for RSPO certification.
In addition to strengthening connections between key growers and buyers in the sustainable palm oil supply chain, the tour provided valuable insights into how the Peruvian smallholder production model has transformed traditional agricultural practices into more sustainable and responsible approaches. These improvements have led to increased productivity and a more efficient use of natural resources.
"Collaborative strategies and tailored approaches based on a whole-supply-chain perspective can empower more producers to commit to a prosperous palm sector that safeguards the environment and fosters strong, resilient communities," emphasized Pedro Seijas Cárdenas, Technical Manager of APROMAN PR Newswire
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Regulation on oil palm expansion in Peru’s Amazon could endanger forests, say critics
- A resolution issued by Peru’s Ministry of Agrarian Development and Irrigation (MIDAGRI) aims to boost the sustainable development of palm oil production in the country.
- Critics argue that it will lead to increased deforestation and that Indigenous organizations were excluded from the regulation’s drafting process.
- Oil palm is cultivated to obtain palm oil, which is used as a raw material in beauty products, toiletries, food and biodiesel.
- The regulation adds to at least two other recent measures by the Peruvian government with potential environmental impacts.
Oil palm is a crop whose derivatives have multiple uses, resulting in staggering global demand. Because of this, Peru’s Ministry of Agrarian Development and Irrigation (MIDAGRI in Spanish) has developed a new regulation to boost oil palm production. On March 22, 2025, MIDAGRI published a ministerial resolution titled Policy Framework for the Sustainable Development of Oil Palm in Peru (2025–2034).
This document and its annex propose, among other things, expanding the agricultural frontier and increasing oil palm production, as well as improving competitiveness in the oil palm supply chain with a focus on sustainability. The projected expansion of oil palm cultivation outlined in the regulation would occur in the Amazon, which, according to the document, offers the optimal agro-climatic conditions for oil palm development.
In Peru, oil palm production has not been free from controversy, mainly because its expansion has often come at the expense of deforestation and has created conflict with Indigenous communities due to cases of irregular land appropriation. Oil palm is cultivated to obtain palm oil, which is used as a raw material in beauty products, toiletries, food and biodiesel.
According to MIDAGRI, the area currently cultivated with oil palm in Peru totals around 95,000 hectares (234,750 acres). Although the resolution does not specify how many hectares should be added nationwide, it does note that in the region of Ucayali, the regional oil palm development plan has identified “267,641 hectares (661,355 acres) with potential for oil palm production, mainly along the Federico Basadre Highway.”
“There are no more areas”
“It’s a set of regulations developed by the Ministry of Agriculture. First, it amended the Forestry Law to legalize all deforestation in the past 20 years. Second, there’s the promotion of oil palm, along with the Deforestation-Free Certificate approved last year which encouraged forest fires,” says Lucila Pautrat, director of the NGO Kené.
The amendment to the Forestry Law referred to by Pautrat was enacted in January 2024 amid criticism from various sectors that promote environmental protection. Some experts say that the law legalizes illegal deforestation.
Regarding the Deforestation-Free Certificate, this refers to a resolution approved by MIDAGRI in September 2024, which was revoked just a few days after its approval, following a complaint filed with the Public Prosecutor’s Office against the minister for agrarian development and irrigation, Ángel Manero, for authorizing the resolution. Mongabay
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Indonesia eyes 2026 for B50 fuel launch
Bojonegoro, East Java (ANTARA) - The Indonesian government remains committed to launching the Biodiesel 50 (B50) program in 2026, according to Deputy Minister of Energy and Mineral Resources Yuliot Tanjung.
B50 is a blended fuel containing 50 percent biofuel—mainly derived from palm oil—and 50 percent conventional diesel. Currently, the government is promoting B40, which consists of 40 percent biofuel and 60 percent diesel.
“We are evaluating B40 and planning to begin the implementation of the B50 program next year, in 2026,” Tanjung stated in Bojonegoro District, East Java, on Thursday (June 26).
However, he noted that the government had not ruled out the possibility of accelerating the B50 timeline, depending on the country’s capacity to produce sufficient fatty acid methyl esters (FAME)—a key biodiesel component derived from vegetable oils through transesterification.
“It is crucial to boost the production of FAME, as the supply must match the requirements of the B50 program. If possible, we will expedite its implementation,” he remarked.
Earlier, Agriculture Minister Andi Amran Sulaiman projected a rise in global crude palm oil (CPO) prices as a result of Indonesia’s shift toward B50.
Speaking in Jakarta in May, Sulaiman noted that the government plans to allocate around 5.3 million tons of CPO for B50 production in 2026.
“Last year, we exported 26 million tons of CPO. What will happen if we cut exports to 21 million tons? Prices will rise,” he explained.
He underlined that Indonesia currently supplies 65.94 percent of the world’s CPO, suggesting that reducing exports to support domestic biodiesel use would likely drive up global prices.
“A rise in CPO prices will mean better welfare for farmers, right? We will be pleased to see our farmers prosper,” he told reporters. Antara News
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Israel-Iran War Impetus for Indonesia to Use More Palm Oil Biodiesel
Tangerang. An analyst said Thursday that Iran’s looming blockade of the Strait of Hormuz could be a wake-up call for Indonesia to get its palm oil biodiesel policy in full swing.
The Israel-Iran war has sparked worries over oil supplies. The Iranian parliament recently backed a measure to close the Strait of Hormuz, a strategic waterway that facilitates the transport of more than a fifth of the world’s oil supply.
The planned closure, which didn't materialize, was a retaliation option that Tehran was considering after Israel’s most powerful ally, the United States, struck Iranian nuclear facilities.
Israel and Iran are currently on a fragile US-brokered ceasefire, but the 12-day war has shown how important it is for Indonesia to cut down on its oil imports and secure its domestic energy supplies. To this end, Indonesia should ramp up its palm oil biofuel production, according to energy expert Satya Widya Nugraha.
Indonesia has what it calls the B40 policy, which mandates a 40 percent mix of palm oil-based fuel in its biodiesel. The number corresponds to the percentage of palm oil content in the biodiesel. There are plans to further increase the mandatory blend, even up to B100 or having the biodiesel entirely derived from palm oil.
“President Prabowo Subianto has been pretty clear about his intentions on developing biomass. We also have the B40 policy, and plans are underway to raise it to B100 eventually. This is what we mean by moving towards energy self-reliance,” Satya said at the B-Universe Media Holdings office in Pantai Indah Kapuk 2, Tangerang.
Indonesia is the world’s largest palm oil producer; thus, the government’s choice to pick this commodity for its biodiesel mandate. The resource-rich nation has been raising its mandatory palm oil blend over the years, and aims to increase it to 50 percent in 2026. Indonesia has also allocated 15.6 million kiloliters of biodiesel for 2025 distribution.
The Indonesian Palm Oil Association (Gapki) data showed that nearly 4.1 million tons of the country’s palm oil had gone to domestic biodiesel consumption so far this year as of April. The country, however, did not export any biodiesel in January-April 2025 despite having sold 40,000 tons overseas over the same four-month period last year.
“The more we are less reliant on others, the smaller the impact of a regional or global-scale tension on our country,” Satya said. Jakarta Globe
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Proposed cap reduction on biofuels from cultivated biomass threatens feed protein supply
The decline in rapeseed meal exports has prompted the Union zur Förderung von Oel- und Proteinpflanzen e.V. (UFOP) to strongly oppose the proposed reduction of the cap on biofuels from cultivated biomass as outlined in the Federal Ministry for the Environment's draft bill.
The legislation is intended to implement the revised Renewable Energy Directive (Red III) at the national level and is under enormous time pressure, because Germany has already allowed the directive's implementation deadline to lapse.
The association has once again emphasised that the biodiesel market is by far the most important outlet for German and European rapeseed producers, as well as for German rapeseed mills, which have a combined processing capacity of approximately 10 million tonnes of seed.
The production of biofuels and the availability of domestic rapeseed meal are mutually dependent.
The UFOP has repeatedly pointed out this relationship as a prime example of an integrated bioeconomy.
The association has therefore called on the German Minister of Agriculture Alois Rainer to push for raising the cap to 5.3% during the ongoing interdepartmental coordination on the greenhouse gas quota legislation.
The increase would help compensate for the decline in overall energy demand in the transport sector resulting from the re-introduction of tax incentives for electromobility.
The association has also emphasised that biofuels make a significant contribution towards climate change mitigation - without placing a burden on the federal budget, since they are subject to full taxation.
According to data from the German Federal Statistical Office, Germany exported just over 1.4 million tonnes of rapeseed meal from July 2024 to April 2025. This was down 9% on the same period a year earlier.
Nearly all of this volume (around 1.3 tonnes) was delivered to EU member states. The largest share, 589,000 tonnes, went to the Netherlands, representing a decrease of almost 17% compared to the same period the previous year. Rapeseed meal deliveries to Sweden dropped 2%.
In contrast, exports to Denmark, Finland and France showed a positive trend. Denmark, Germany's second largest trading partner for rapeseed meal, ramped up its imports 2% to 184,000 tonnes.
Exports to France saw a remarkable rise. Due to a smaller domestic harvest, France strongly relied on imports, which climbed around 70% year-on-year to nearly 99,000 tonnes. Outside the EU, Switzerland remained the most important export destination, followed by the UK. Biofuels News
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Cross River Pledges Agriculture Support, Forest Conservation, Welcomes Dutch Investment
Cross River State Government has reiterated its commitment to agricultural transformation and environmental sustainability, calling on the Kingdom of the Netherlands to invest in the state’s thriving agriculture sector, particularly in oil palm processing and technology transfer.
Speaking during a courtesy visit by the Consul General of the Kingdom of the Netherlands, Mr. Michel Deelen, and his entourage on Tuesday, Governor Bassey Otu described the visit as a step toward deepening bilateral relations and expanding mutually beneficial partnerships.
“Our state is abundantly endowed with arable land and a favourable climate that supports year-round agriculture. Agriculture is our best foot forward in recalibrating our economy, and our policies are tailored to support both smallholder and large-scale farmers,” Governor Otu said.
He disclosed that his administration has implemented bold reforms in the agricultural sector, including a seven-year strategic cocoa and coffee development plan, the establishment of six new cocoa estates, free agronomic training, and processing hubs across viable zones.
He invited the Dutch Government and private sector to explore opportunities in oil palm processing, saying: “We welcome direct Dutch investments across the value chain of our oil palm industry. Cross River is not only a secure and investor-friendly state but also offers high returns on investment.”
He also emphasized the state’s advanced Digital Soil Mapping and Survey Database, which allows potential investors to remotely identify suitable farmlands by soil type and location.
Otu reiterated that Cross River is ready for responsible foreign investment and pledged full cooperation with partners who share the state’s vision of environmentally sustainable growth.
“Above all, we are a hospitable people, our doors are open to credible investors who are ready to make informed, ethical, and profitable investment choices in Cross River State.”
Responding, the Consul-General, Mr. Michel Deelen, commended the governor’s strong stance against illegal logging and described Cross River as “one of the most beautiful states” in Nigeria. He praised the clean and green environment of Calabar, and expressed delight in the constructive engagements with state officials.
“Illegal logging benefits no one but a few individuals, and we support your firm position against it,” he said. “However, we must also support communities and smallholder farmers who wish to expand production. That is why we are here, to assist in increasing yield without expanding farmland.”
Mr. Deelen emphasized the Netherlands’ focus on sustainable palm oil production through better seedlings, improved milling technology, and partnerships that protect forests while boosting income for local farmers.
He clarified that the Dutch position is not to impose restrictions but to collaborate in protecting global biodiversity. “We’re not here to tell you not to cut down trees. We understand the historical context. But we must all work together to preserve natural habitats for the common good,” he stated.
The visit comes as part of a broader collaboration in the area of sustainable agriculture and forest preservation. Cross River State, known for hosting one of the last remaining tropical rainforests in West Africa, is a focal point for international conservation efforts. Cross River Watch
June 26, 2025
Malaysia gains preferential palm oil market access, recognition through agreement with Europe, says MPIC
KUALA LUMPUR (June 25): Malaysia has gained preferential market access and recognition for its sustainable palm oil following the signing of the Malaysia-European Free Trade Association (EFTA) Economic Partnership Agreement (MEEPA).
The Ministry of Plantation and Commodities (MPIC) said the agreement signed on Monday will benefit Malaysian palm oil through reduced import tariffs under a tariff rate quota mechanism, with tariff cuts ranging between 20% and 40%, depending on the product category.
“The Malaysian Sustainable Palm Oil (MSPO) certification is established as a prerequisite for accessing these reduced tariffs, positioning MSPO as a key enabler of improved market access for Malaysian palm oil exporters to EFTA member states, namely Switzerland, Norway, Iceland, and Liechtenstein,” the MPIC said in a statement.
MPIC Minister Datuk Seri Johari Abdul Ghani said the ministry views the agreement as an important reference point for Malaysia’s position in the ongoing Malaysia-European Union (EU) Free Trade Agreement negotiations with the 27 EU member states.
“Malaysia remains fully committed to driving global progress in sustainable, responsible, and deforestation-free palm oil trade, with MSPO at the centre of these efforts,” he said.
As part of the MEEPA, the ministry said both parties also adopted a Joint Statement on Sustainable Palm Oil, which enhances international recognition of Malaysia’s leadership in sustainable palm oil production and reinforces trust in MSPO-certified supply.
“The efforts of the Ministry of Investment, Trade and Industry, together with the MPIC, made this recognition by the EFTA countries possible,” it stated.
The MPIC said the MEEPA delivers three critical outcomes, namely providing tariff reductions for MSPO-certified palm oil, securing international recognition of MSPO as Malaysia’s national sustainability standard, and strengthening the commitment to greater transparency, traceability, and deforestation-free supply chains.
The MPIC noted that for Malaysia’s palm oil industry, this agreement provides a stronger platform to compete in global sustainability-driven markets, from smallholders to larger producers, while reinforcing market access and tariff advantages for MSPO-certified supply. The EdgeMY
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Palm oil to enjoy lower tariffs with new European trade deal
Ministry says the partnership agreement with the four-member European Free Trade Association will also secure international recognition of the MSPO certification.
PETALING JAYA: Malaysian palm oil will benefit from tariff reductions of between 20% and 40% under a newly signed agreement with the four European Free Trade Association (EFTA) member states, says the plantation and commodities ministry.
The ministry said the Malaysia-EFTA Economic Partnership Agreement (Meepa) will also secure international recognition of the Malaysian Sustainable Palm Oil (MSPO) certification as Malaysia’s national sustainability standard, and strengthen the commitment to greater transparency, traceability, and deforestation-free supply chains.
The EFTA was founded in 1960 and promotes free trade and economic integration among its four member nations – Switzerland, Norway, Iceland and Liechtenstein.
“For Malaysia’s palm oil industry, this agreement provides a stronger platform to compete in global sustainability-driven markets while reinforcing market access and tariff advantages for MSPO-certified supply,” the ministry said in a statement.
As part of Meepa, both Malaysia and EFTA also adopted a joint statement on sustainable palm oil, which enhances international recognition of Malaysia’s leadership in sustainable palm oil production and reinforces trust in MSPO-certified supply.
MSPO certification is a prerequisite for accessing the reduced tariffs, positioning MSPO as a key enabler of improved market access for Malaysian palm oil exporters to EFTA countries, said the ministry.
The MSPO scheme grades oil palm plantations, smallholdings and processing facilities to ensure there is no biodiversity loss, land conflict, deforestation and forced labour.
MSPO certification is a prerequisite for accessing the reduced tariffs, positioning MSPO as a key enabler of improved market access for Malaysian palm oil exporters to EFTA countries, said the ministry.
The MSPO scheme grades oil palm plantations, smallholdings and processing facilities to ensure there is no biodiversity loss, land conflict, deforestation and forced labour.
It was made mandatory for all oil palm operations in Malaysia, including plantations, independent and organised smallholdings, and processing facilities, starting Jan 1, 2020.
Plantation and commodities minister Johari Ghani said Meepa would be an important reference point in the ongoing Malaysia-EU Free Trade Agreement negotiations with the 27 EU member states.
He said his ministry will continue to work closely with the investment, trade and industry ministry to ensure that Malaysia’s sustainability leadership, through the MSPO, is fully reflected and protected in all future trade agreements, including with the EU. FMT
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Malaysia's sets up committee to strengthen response to EU's anti-deforestation law
KUALA LUMPUR, June 26 (Reuters) - Malaysia has set up a special committee to strengthen the country's response to the European Union's anti-deforestation law, the commodities ministry said on Thursday.
A key priority of the committee is to secure Malaysia's status as a low-risk country under the European Union's anti-deforestation framework and strengthen its traceability systems, the ministry said in a statement.
The law requires companies and traders importing soy, beef, cocoa, coffee, palm oil, timber, rubber and related products to prove their supply chains do not contribute to the destruction of the world's forests, or face hefty fines. Reuters
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Palm Oil has become a strategic commodity for Pakistan’s food security, nutrition, and sustainable growth
Palm oil remains a cornerstone of Pakistan’s edible oils and fats sector, supporting food security, industrial development, and nutritional access for millions. Experts emphasised its significance today, calling for greater awareness of its benefits, sustainability initiatives, and strategic importance.
With annual consumption exceeding 3 million tonnes, palm oil makes up over 96% of Pakistan’s edible oil imports. Its versatility and cost-efficiency make it indispensable for food manufacturers, particularly in producing vanaspati ghee, cooking oils, shortenings, margarine, and processed foods.
“Palm oil is a pillar of Pakistan’s oils and fats market,” said Nadar Ali Ghanghro, Marketing Officer, Consulate General of Malaysia, author of Palm Oil in Pakistan: A Pillar of the Oils and Fats Market and Its Impact on Food Security. “Its natural stability, long shelf life, and affordability make it critical for national nutrition and economic resilience, especially in rural regions.”
Palm oil is a cholesterol-free vegetable oil, naturally free of trans fats, and rich in antioxidants like tocotrienols and beta-carotene—components that contribute to cardiovascular health and overall well-being. Its balanced fatty acid profile makes it suitable for a range of food applications. When consumed in moderation as part of a balanced diet, it supports energy needs and nutrient absorption.
Dr. Ramle Moslim, Deputy Director-General (R&D), Malaysian Palm Oil Board, added that palm oil’s unique attributes make it not only a key dietary fat, but also a sustainable and economically vital crop. Palm oil is a versatile edible oil derived from the fruit of the oil palm tree. Its excellent stability at high temperatures, long shelf life, semi-solid state at room temperature, and high yield per hectare make it an ideal choice for food production—from margarine and baked goods to snacks and cooking oils,” he said.
He highlighted the critical role of palm oil in global food security, noting that oil palm yields 4 to 10 times more oil per hectare than other oilseeds, such as soybeans, sunflowers, or rapeseed. “This efficiency allows for higher output with less land, reducing pressure on natural ecosystems,” he said. “Malaysia alone has over 5.6 million hectares under cultivation, supporting over 500,000 smallholders and ensuring domestic and global food stability.”
He acknowledged concerns about deforestation and biodiversity loss linked to palm oil cultivation. Still, he emphasised that these challenges are being addressed through science-based policies, reforestation efforts, and collaborative governance that involves NGOs and state authorities. “Our goal is zero-waste, circular economy production that meets ESG criteria and consumer expectations,” he said.
Zafar Mahmood, Chief Executive Officer of NIMIR, further highlighted the industry’s shift towards sustainable sourcing. “Most multinationals operating in Pakistan now require RSPO-certified palm oil—whether Mass Balance, Segregated, or NDPE-compliant. This shift is transforming the supply chain toward greater transparency and environmental responsibility.”
Dr. Hammad Hassan, PhD, Assistant Professor at Aga Khan University, reiterated the importance of countering misinformation. “Palm oil is often misrepresented. The reality is it provides critical nutrients, supports livelihoods, and when produced responsibly, is a more sustainable option than many alternatives.”
Research is also advancing in palm-based nutritional innovations to help address micronutrient deficiencies. Red palm oil, for instance, is being studied for its use in healthcare and food interventions, particularly for vulnerable populations.
As palm oil continues to support Pakistan’s food industry, experts urged a multi-stakeholder approach—uniting science, policy, and public engagement—to strengthen its sustainability and global standing.
“With ongoing improvements in traceability, nutrition, and environmental standards, palm oil is positioned to remain a vital contributor to global food systems and national development,” said Dr. Ramle. “Let’s build a shared understanding and work together to support its responsible growth.” Trade Chronicle
Malaysia gains preferential palm oil market access, recognition through agreement with Europe, says MPIC
KUALA LUMPUR (June 25): Malaysia has gained preferential market access and recognition for its sustainable palm oil following the signing of the Malaysia-European Free Trade Association (EFTA) Economic Partnership Agreement (MEEPA).
The Ministry of Plantation and Commodities (MPIC) said the agreement signed on Monday will benefit Malaysian palm oil through reduced import tariffs under a tariff rate quota mechanism, with tariff cuts ranging between 20% and 40%, depending on the product category.
“The Malaysian Sustainable Palm Oil (MSPO) certification is established as a prerequisite for accessing these reduced tariffs, positioning MSPO as a key enabler of improved market access for Malaysian palm oil exporters to EFTA member states, namely Switzerland, Norway, Iceland, and Liechtenstein,” the MPIC said in a statement.
MPIC Minister Datuk Seri Johari Abdul Ghani said the ministry views the agreement as an important reference point for Malaysia’s position in the ongoing Malaysia-European Union (EU) Free Trade Agreement negotiations with the 27 EU member states.
“Malaysia remains fully committed to driving global progress in sustainable, responsible, and deforestation-free palm oil trade, with MSPO at the centre of these efforts,” he said.
As part of the MEEPA, the ministry said both parties also adopted a Joint Statement on Sustainable Palm Oil, which enhances international recognition of Malaysia’s leadership in sustainable palm oil production and reinforces trust in MSPO-certified supply.
“The efforts of the Ministry of Investment, Trade and Industry, together with the MPIC, made this recognition by the EFTA countries possible,” it stated.
The MPIC said the MEEPA delivers three critical outcomes, namely providing tariff reductions for MSPO-certified palm oil, securing international recognition of MSPO as Malaysia’s national sustainability standard, and strengthening the commitment to greater transparency, traceability, and deforestation-free supply chains.
The MPIC noted that for Malaysia’s palm oil industry, this agreement provides a stronger platform to compete in global sustainability-driven markets, from smallholders to larger producers, while reinforcing market access and tariff advantages for MSPO-certified supply. The EdgeMY
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Palm oil to enjoy lower tariffs with new European trade deal
Ministry says the partnership agreement with the four-member European Free Trade Association will also secure international recognition of the MSPO certification.
PETALING JAYA: Malaysian palm oil will benefit from tariff reductions of between 20% and 40% under a newly signed agreement with the four European Free Trade Association (EFTA) member states, says the plantation and commodities ministry.
The ministry said the Malaysia-EFTA Economic Partnership Agreement (Meepa) will also secure international recognition of the Malaysian Sustainable Palm Oil (MSPO) certification as Malaysia’s national sustainability standard, and strengthen the commitment to greater transparency, traceability, and deforestation-free supply chains.
The EFTA was founded in 1960 and promotes free trade and economic integration among its four member nations – Switzerland, Norway, Iceland and Liechtenstein.
“For Malaysia’s palm oil industry, this agreement provides a stronger platform to compete in global sustainability-driven markets while reinforcing market access and tariff advantages for MSPO-certified supply,” the ministry said in a statement.
As part of Meepa, both Malaysia and EFTA also adopted a joint statement on sustainable palm oil, which enhances international recognition of Malaysia’s leadership in sustainable palm oil production and reinforces trust in MSPO-certified supply.
MSPO certification is a prerequisite for accessing the reduced tariffs, positioning MSPO as a key enabler of improved market access for Malaysian palm oil exporters to EFTA countries, said the ministry.
The MSPO scheme grades oil palm plantations, smallholdings and processing facilities to ensure there is no biodiversity loss, land conflict, deforestation and forced labour.
MSPO certification is a prerequisite for accessing the reduced tariffs, positioning MSPO as a key enabler of improved market access for Malaysian palm oil exporters to EFTA countries, said the ministry.
The MSPO scheme grades oil palm plantations, smallholdings and processing facilities to ensure there is no biodiversity loss, land conflict, deforestation and forced labour.
It was made mandatory for all oil palm operations in Malaysia, including plantations, independent and organised smallholdings, and processing facilities, starting Jan 1, 2020.
Plantation and commodities minister Johari Ghani said Meepa would be an important reference point in the ongoing Malaysia-EU Free Trade Agreement negotiations with the 27 EU member states.
He said his ministry will continue to work closely with the investment, trade and industry ministry to ensure that Malaysia’s sustainability leadership, through the MSPO, is fully reflected and protected in all future trade agreements, including with the EU. FMT
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Malaysia's sets up committee to strengthen response to EU's anti-deforestation law
KUALA LUMPUR, June 26 (Reuters) - Malaysia has set up a special committee to strengthen the country's response to the European Union's anti-deforestation law, the commodities ministry said on Thursday.
A key priority of the committee is to secure Malaysia's status as a low-risk country under the European Union's anti-deforestation framework and strengthen its traceability systems, the ministry said in a statement.
The law requires companies and traders importing soy, beef, cocoa, coffee, palm oil, timber, rubber and related products to prove their supply chains do not contribute to the destruction of the world's forests, or face hefty fines. Reuters
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Palm Oil has become a strategic commodity for Pakistan’s food security, nutrition, and sustainable growth
Palm oil remains a cornerstone of Pakistan’s edible oils and fats sector, supporting food security, industrial development, and nutritional access for millions. Experts emphasised its significance today, calling for greater awareness of its benefits, sustainability initiatives, and strategic importance.
With annual consumption exceeding 3 million tonnes, palm oil makes up over 96% of Pakistan’s edible oil imports. Its versatility and cost-efficiency make it indispensable for food manufacturers, particularly in producing vanaspati ghee, cooking oils, shortenings, margarine, and processed foods.
“Palm oil is a pillar of Pakistan’s oils and fats market,” said Nadar Ali Ghanghro, Marketing Officer, Consulate General of Malaysia, author of Palm Oil in Pakistan: A Pillar of the Oils and Fats Market and Its Impact on Food Security. “Its natural stability, long shelf life, and affordability make it critical for national nutrition and economic resilience, especially in rural regions.”
Palm oil is a cholesterol-free vegetable oil, naturally free of trans fats, and rich in antioxidants like tocotrienols and beta-carotene—components that contribute to cardiovascular health and overall well-being. Its balanced fatty acid profile makes it suitable for a range of food applications. When consumed in moderation as part of a balanced diet, it supports energy needs and nutrient absorption.
Dr. Ramle Moslim, Deputy Director-General (R&D), Malaysian Palm Oil Board, added that palm oil’s unique attributes make it not only a key dietary fat, but also a sustainable and economically vital crop. Palm oil is a versatile edible oil derived from the fruit of the oil palm tree. Its excellent stability at high temperatures, long shelf life, semi-solid state at room temperature, and high yield per hectare make it an ideal choice for food production—from margarine and baked goods to snacks and cooking oils,” he said.
He highlighted the critical role of palm oil in global food security, noting that oil palm yields 4 to 10 times more oil per hectare than other oilseeds, such as soybeans, sunflowers, or rapeseed. “This efficiency allows for higher output with less land, reducing pressure on natural ecosystems,” he said. “Malaysia alone has over 5.6 million hectares under cultivation, supporting over 500,000 smallholders and ensuring domestic and global food stability.”
He acknowledged concerns about deforestation and biodiversity loss linked to palm oil cultivation. Still, he emphasised that these challenges are being addressed through science-based policies, reforestation efforts, and collaborative governance that involves NGOs and state authorities. “Our goal is zero-waste, circular economy production that meets ESG criteria and consumer expectations,” he said.
Zafar Mahmood, Chief Executive Officer of NIMIR, further highlighted the industry’s shift towards sustainable sourcing. “Most multinationals operating in Pakistan now require RSPO-certified palm oil—whether Mass Balance, Segregated, or NDPE-compliant. This shift is transforming the supply chain toward greater transparency and environmental responsibility.”
Dr. Hammad Hassan, PhD, Assistant Professor at Aga Khan University, reiterated the importance of countering misinformation. “Palm oil is often misrepresented. The reality is it provides critical nutrients, supports livelihoods, and when produced responsibly, is a more sustainable option than many alternatives.”
Research is also advancing in palm-based nutritional innovations to help address micronutrient deficiencies. Red palm oil, for instance, is being studied for its use in healthcare and food interventions, particularly for vulnerable populations.
As palm oil continues to support Pakistan’s food industry, experts urged a multi-stakeholder approach—uniting science, policy, and public engagement—to strengthen its sustainability and global standing.
“With ongoing improvements in traceability, nutrition, and environmental standards, palm oil is positioned to remain a vital contributor to global food systems and national development,” said Dr. Ramle. “Let’s build a shared understanding and work together to support its responsible growth.” Trade Chronicle
June 25, 2025
House Pushes to Boost Palm Oil Productivity to Support B40 Policy
KBRN, Jakarta: Indonesian House of Representatives Commission IV is urging an increase in domestic palm oil productivity to support the implementation of the B40 biodiesel mandate, a strategic measure aimed at strengthening national energy resilience and reducing reliance on fuel imports.
Commission IV Deputy Speaker Panggah Susanto said the B40 policy represents a crucial step in decreasing the country's dependency on imported diesel fuel.
“We have abundant palm oil resources, so we must maximize their management and utilization to realize the President’s vision for energy self-sufficiency,” he stated in Jakarta on Wednesday, June 25, 2025, as quoted by antaranews.com.
The government’s policy to increase the biodiesel blend from 35 percent to 40 percent in diesel fuel officially took effect on January 1, 2025, as outlined in Minister of Energy and Mineral Resources Decree No. 341.K/EK.01/MEM.E/2024. The policy mandates a 40 percent biodiesel mix, financed by the Palm Oil Plantation Fund Management Agency.
Panggah noted that the B40 program is set to be followed by a B50 mandate in 2026. He emphasized the importance of renewable energy use in light of escalating global geopolitical tensions, which could trigger an energy crisis.
“The shift from B35 to B40 and the broader use of renewable energy are highly relevant given the current global instability and ongoing conflicts around the world,” he said.
According to Panggah, the B40 policy requires an estimated 15.6 million kiloliters of crude palm oil (CPO) annually to supply the biodiesel program. As such, increasing palm oil productivity is essential to maintain supply stability for both the biodiesel mandate and public consumption needs such as cooking oil.
“We must enhance palm oil productivity so that the growing demand for biodiesel does not disrupt domestic needs for cooking oil and industrial raw materials. This will help keep prices stable and unaffected by biodiesel production demands,” he explained.
Panggah stressed the importance of inter-sectoral coordination, highlighting the need for synergy between upstream responsibilities under the Ministry of Agriculture and downstream implementation by the Ministry of Energy and Mineral Resources. RRI
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Posco International leads Korean traders’ pivot from brokerage to energy value chains
Marking the 50th anniversary of the General Trading Company Designation System, Korean trading companies are accelerating efforts to upgrade their business models beyond traditional trade brokerage, expanding into full-cycle energy value chains spanning development, transportation, processing and sales.
As part of the nation’s major export push during the economic growth era of the 1960s and 1970s, a total of 13 companies were designated as “general trading companies” and granted government tax and financial support. The designation system was abolished in 2009, as their role diminished with large conglomerates building their own overseas sales networks.
In response, trading companies began transforming their business models, reducing reliance on traditional trading and expanding into new sectors such as resources and energy. Posco International, the trading and energy arm of steel giant Posco Group, stands at the forefront of this shift.
Posco International has restructured its business portfolio around three sectors: energy, agro-resources and secondary battery materials.
Rather than focusing on trade brokerage-based revenue, the company has built end-to-end value chains in each sector, aiming for greater operational control and long-term resilience.
In 2024, its posted 32.34 trillion won ($23.7 billion) in revenue and 1.12 trillion won in operating profit, nearly 70 percent of which came from its three strategic sectors.
The company maintained its momentum into the first quarter of 2025, with operating profit reaching 270.2 billion won, roughly half of which came from the energy sector.
The energy business, now vertically integrated following a merger with Posco Energy in 2023, covers the full liquefied natural gas value chain.
This includes upstream operations in Myanmar and Australia, stable LNG procurement through long-term supply deals with US-based Cheniere Energy, and the use of dedicated LNG carriers. The company's Gwangyang LNG terminal is undergoing expansion to raise total storage capacity to 1.33 million kiloliters.
In agro-resources, the company focuses on both efficiency and sustainability. Its Indonesian palm oil subsidiary, PT. BIA, operates under the Roundtable on Sustainable Palm Oil certification and uses AI-powered smart farming systems.
A joint project with GS Caltex, a Korean energy and chemicals company, is expected to complete a 500,000-ton biofuel plant in East Kalimantan this year, enabling the production of next-generation fuels such as sustainable aviation fuel. The InvestorKR
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Netherlands publishes RED III biofuels draft
The Dutch government's updated draft legislation to transpose the EU's revised Renewable Energy Directive (RED III) notably proposes abolishing double-counting renewable energy contributions from Annex IX feedstocks.
The draft introduces a greenhouse gas (GHG) emission reduction mandate for land, inland shipping and maritime shipping, but excludes aviation — which was included in a previous draft. The RED III mandate will take effect in 2026.
Obligated parties have to fulfil the mandate by surrendering a sufficient amount of so-called emission reduction units (EREs) in each sector. The mandate's flexible credit allowance allows EREs generated in the land sector to be used to partly meet emission reduction obligations in inland and maritime shipping (see table), but EREs from inland and maritime shipping cannot be used by land sector suppliers to fulfil their compliance requirements.
Fuel suppliers with overall consumption of more than 500,000 l/yr will need to incorporate a 14.4pc share of renewable fuels in their annual deliveries in 2026. This increases linearly, to reach 27.1pc in 2030.
The amount of crop-based biofuels in the land sector will be limited to 1.4pc of the overall energy content of total consumption until 2030, and will not be accepted towards targets in maritime and inland shipping and aviation.
The amount of Annex IX Part B biofuels — such as used cooking oil (UCO) and animal fats categories 1 and 2 — that can be counted towards the mandate will be limited to 4.29pc in the land sector and 11.07pc in inland shipping. Obligated parties will be unable to claim EREs from Annex IX Part B fuels used in maritime shipping.
The draft also introduces a minimum share of emission reductions that have to be achieved by Annex IX Part A and renewable fuels of non-biological origin (RFNBO), for all sectors.
RED III mandates that 5.5pc of all fuels supplied must be advanced biofuels, including at least 1pc RFNBOs by 2030. The Netherlands' draft decouples these targets, to reduce investment uncertainty (see table).
Refineries that use renewable hydrogen in their production process can claim refinery reduction units — or RAREs — which can be used by a supplier to meet an RFNBO sub-target in various sectors.
Correction factor delay
The ministry will delay its plans to apply a "correction factor" of 0.4 to its "refinery route" stimulus for hydrogen demand, in order to ensure the measure does not undermine direct use of hydrogen in transport.
The correction factor means the value of emissions reductions credits generated through the use of renewable hydrogen for transport fuel production would be limited to a certain percentage of those generated through direct use of renewable hydrogen or derivatives in transport.
The government leaves the option open to impose a correction factor from 2030.
Although the EU Fuel Quality Directive increases the maximum share of bio-based components to 10pc in diesel, the Dutch government said fuel suppliers must continue to offer B7 — diesel with up to 7pc biodiesel — as a protection grade, because of the large number of cars incompatible with B10.
Companies will be able to carry forward any excess EREs to the next compliance year. Companies with an annual obligation can carry forward up to 10pc of the total amount of EREs needed to fulfil their obligation in a year, with registering companies allowed to carry forward 4pc. Dutch renewable fuel tickets (HBEs) carried into 2026 will be converted into EREs on 1 April 2026, the government said.
By Evelina Lungu and Anna Prokhorova/ Argus Media
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Chippenham Town Council moves to using HVO in its vehicle fleet
Chippenham Town Council aims to be carbon neutral by 2030, and a part of this commitment includes consideration of alternative fuel for its vehicle fleet.
Taking advice from a carbon appraisal consultant, the Town Council researched the viability of switching all currently owned diesel vehicles in its fleet to the greener fuel alternative of Hydrotreated Vegetable Oil (HVO), and a short trial took place to test its reliability and suitability.
At a meeting of the Amenities, Culture and Leisure Committee on 15 January 2025, it was discussed and agreed that Chippenham Town Council would make the transition from diesel to HVO for its vehicle fleet.
Using HVO creates up to 80% reduction in Carbon Dioxide emissions compared to diesel and gas oil and will help to reduce the Town Council’s carbon footprint as well as reducing air pollution in the town. Making this transition will help to create a future that is carbon neutral, environmentally sustainable, and resilient to the impact of climate change.
The HOV suppliers have confirmed the HVO genuinely comes from waste oil and does not contain palm oil grown from deforested land. It is ISCC certificated, and the supplier is part of the Renewable Fuels Assurance Scheme.
Chippenham Town Council already owns some electric-powered vehicles, the aim in the future is to transition to more electric-powered vehicles and suitable charging infrastructure installation but this will take time and is dependent on suitable and affordable technology. ChippenhamGOVUK
House Pushes to Boost Palm Oil Productivity to Support B40 Policy
KBRN, Jakarta: Indonesian House of Representatives Commission IV is urging an increase in domestic palm oil productivity to support the implementation of the B40 biodiesel mandate, a strategic measure aimed at strengthening national energy resilience and reducing reliance on fuel imports.
Commission IV Deputy Speaker Panggah Susanto said the B40 policy represents a crucial step in decreasing the country's dependency on imported diesel fuel.
“We have abundant palm oil resources, so we must maximize their management and utilization to realize the President’s vision for energy self-sufficiency,” he stated in Jakarta on Wednesday, June 25, 2025, as quoted by antaranews.com.
The government’s policy to increase the biodiesel blend from 35 percent to 40 percent in diesel fuel officially took effect on January 1, 2025, as outlined in Minister of Energy and Mineral Resources Decree No. 341.K/EK.01/MEM.E/2024. The policy mandates a 40 percent biodiesel mix, financed by the Palm Oil Plantation Fund Management Agency.
Panggah noted that the B40 program is set to be followed by a B50 mandate in 2026. He emphasized the importance of renewable energy use in light of escalating global geopolitical tensions, which could trigger an energy crisis.
“The shift from B35 to B40 and the broader use of renewable energy are highly relevant given the current global instability and ongoing conflicts around the world,” he said.
According to Panggah, the B40 policy requires an estimated 15.6 million kiloliters of crude palm oil (CPO) annually to supply the biodiesel program. As such, increasing palm oil productivity is essential to maintain supply stability for both the biodiesel mandate and public consumption needs such as cooking oil.
“We must enhance palm oil productivity so that the growing demand for biodiesel does not disrupt domestic needs for cooking oil and industrial raw materials. This will help keep prices stable and unaffected by biodiesel production demands,” he explained.
Panggah stressed the importance of inter-sectoral coordination, highlighting the need for synergy between upstream responsibilities under the Ministry of Agriculture and downstream implementation by the Ministry of Energy and Mineral Resources. RRI
---------
Posco International leads Korean traders’ pivot from brokerage to energy value chains
Marking the 50th anniversary of the General Trading Company Designation System, Korean trading companies are accelerating efforts to upgrade their business models beyond traditional trade brokerage, expanding into full-cycle energy value chains spanning development, transportation, processing and sales.
As part of the nation’s major export push during the economic growth era of the 1960s and 1970s, a total of 13 companies were designated as “general trading companies” and granted government tax and financial support. The designation system was abolished in 2009, as their role diminished with large conglomerates building their own overseas sales networks.
In response, trading companies began transforming their business models, reducing reliance on traditional trading and expanding into new sectors such as resources and energy. Posco International, the trading and energy arm of steel giant Posco Group, stands at the forefront of this shift.
Posco International has restructured its business portfolio around three sectors: energy, agro-resources and secondary battery materials.
Rather than focusing on trade brokerage-based revenue, the company has built end-to-end value chains in each sector, aiming for greater operational control and long-term resilience.
In 2024, its posted 32.34 trillion won ($23.7 billion) in revenue and 1.12 trillion won in operating profit, nearly 70 percent of which came from its three strategic sectors.
The company maintained its momentum into the first quarter of 2025, with operating profit reaching 270.2 billion won, roughly half of which came from the energy sector.
The energy business, now vertically integrated following a merger with Posco Energy in 2023, covers the full liquefied natural gas value chain.
This includes upstream operations in Myanmar and Australia, stable LNG procurement through long-term supply deals with US-based Cheniere Energy, and the use of dedicated LNG carriers. The company's Gwangyang LNG terminal is undergoing expansion to raise total storage capacity to 1.33 million kiloliters.
In agro-resources, the company focuses on both efficiency and sustainability. Its Indonesian palm oil subsidiary, PT. BIA, operates under the Roundtable on Sustainable Palm Oil certification and uses AI-powered smart farming systems.
A joint project with GS Caltex, a Korean energy and chemicals company, is expected to complete a 500,000-ton biofuel plant in East Kalimantan this year, enabling the production of next-generation fuels such as sustainable aviation fuel. The InvestorKR
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Netherlands publishes RED III biofuels draft
The Dutch government's updated draft legislation to transpose the EU's revised Renewable Energy Directive (RED III) notably proposes abolishing double-counting renewable energy contributions from Annex IX feedstocks.
The draft introduces a greenhouse gas (GHG) emission reduction mandate for land, inland shipping and maritime shipping, but excludes aviation — which was included in a previous draft. The RED III mandate will take effect in 2026.
Obligated parties have to fulfil the mandate by surrendering a sufficient amount of so-called emission reduction units (EREs) in each sector. The mandate's flexible credit allowance allows EREs generated in the land sector to be used to partly meet emission reduction obligations in inland and maritime shipping (see table), but EREs from inland and maritime shipping cannot be used by land sector suppliers to fulfil their compliance requirements.
Fuel suppliers with overall consumption of more than 500,000 l/yr will need to incorporate a 14.4pc share of renewable fuels in their annual deliveries in 2026. This increases linearly, to reach 27.1pc in 2030.
The amount of crop-based biofuels in the land sector will be limited to 1.4pc of the overall energy content of total consumption until 2030, and will not be accepted towards targets in maritime and inland shipping and aviation.
The amount of Annex IX Part B biofuels — such as used cooking oil (UCO) and animal fats categories 1 and 2 — that can be counted towards the mandate will be limited to 4.29pc in the land sector and 11.07pc in inland shipping. Obligated parties will be unable to claim EREs from Annex IX Part B fuels used in maritime shipping.
The draft also introduces a minimum share of emission reductions that have to be achieved by Annex IX Part A and renewable fuels of non-biological origin (RFNBO), for all sectors.
RED III mandates that 5.5pc of all fuels supplied must be advanced biofuels, including at least 1pc RFNBOs by 2030. The Netherlands' draft decouples these targets, to reduce investment uncertainty (see table).
Refineries that use renewable hydrogen in their production process can claim refinery reduction units — or RAREs — which can be used by a supplier to meet an RFNBO sub-target in various sectors.
Correction factor delay
The ministry will delay its plans to apply a "correction factor" of 0.4 to its "refinery route" stimulus for hydrogen demand, in order to ensure the measure does not undermine direct use of hydrogen in transport.
The correction factor means the value of emissions reductions credits generated through the use of renewable hydrogen for transport fuel production would be limited to a certain percentage of those generated through direct use of renewable hydrogen or derivatives in transport.
The government leaves the option open to impose a correction factor from 2030.
Although the EU Fuel Quality Directive increases the maximum share of bio-based components to 10pc in diesel, the Dutch government said fuel suppliers must continue to offer B7 — diesel with up to 7pc biodiesel — as a protection grade, because of the large number of cars incompatible with B10.
Companies will be able to carry forward any excess EREs to the next compliance year. Companies with an annual obligation can carry forward up to 10pc of the total amount of EREs needed to fulfil their obligation in a year, with registering companies allowed to carry forward 4pc. Dutch renewable fuel tickets (HBEs) carried into 2026 will be converted into EREs on 1 April 2026, the government said.
By Evelina Lungu and Anna Prokhorova/ Argus Media
---------
Chippenham Town Council moves to using HVO in its vehicle fleet
Chippenham Town Council aims to be carbon neutral by 2030, and a part of this commitment includes consideration of alternative fuel for its vehicle fleet.
Taking advice from a carbon appraisal consultant, the Town Council researched the viability of switching all currently owned diesel vehicles in its fleet to the greener fuel alternative of Hydrotreated Vegetable Oil (HVO), and a short trial took place to test its reliability and suitability.
At a meeting of the Amenities, Culture and Leisure Committee on 15 January 2025, it was discussed and agreed that Chippenham Town Council would make the transition from diesel to HVO for its vehicle fleet.
Using HVO creates up to 80% reduction in Carbon Dioxide emissions compared to diesel and gas oil and will help to reduce the Town Council’s carbon footprint as well as reducing air pollution in the town. Making this transition will help to create a future that is carbon neutral, environmentally sustainable, and resilient to the impact of climate change.
The HOV suppliers have confirmed the HVO genuinely comes from waste oil and does not contain palm oil grown from deforested land. It is ISCC certificated, and the supplier is part of the Renewable Fuels Assurance Scheme.
Chippenham Town Council already owns some electric-powered vehicles, the aim in the future is to transition to more electric-powered vehicles and suitable charging infrastructure installation but this will take time and is dependent on suitable and affordable technology. ChippenhamGOVUK
June 24, 2025
Indonesia palm oil stocks rise 50% in April after fall in exports
JAKARTA (June 24): Indonesia's palm oil inventory rose 50% on the month to reach 3.04 million metric tonnes by the end of April, its highest since May last year following a decline in exports, data from Gapki, Indonesia's palm oil association, showed on Tuesday.
Exports fell 38.14% month-on-month in April to 1.78 million tonnes due to a decline in demand from the European Union, India, United States, Pakistan and Bangladesh.
Crude palm oil output in April was 4.48 million tonnes, up from 4.39 million tonnes in March.
The data is in line with expectations as palm oil's premium over rival oils in April prompted buyers to switch to soyoil, a New Delhi-based dealer with a global trade house said.
In May, palm oil began trading at a discount, leading to a jump in exports from Indonesia, which may have brought down inventories by the end of the month, the trader said.
"Even in June, exports are expected to remain robust. Indonesia's move to lower export tax has been helping exports," he said. The Edge/ Reuters
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Indonesia’s Palm Oil Export Drops 39 Pct as EU Buys Less
Jakarta. Indonesia recorded a double-digit decline in its palm oil exports in April as European countries cut back on Jakarta’s top agricultural commodity, according to the producers association Gapki on Tuesday.
Indonesia only exported around 1.78 million tons of palm oil products in April, down 39.2 percent after it hit 2.88 million tons overseas the previous month. Gapki reported that processed palm oil exports fell 41.7 percent from 2.13 million tons to 1.24 million tons over the same period, making it the steepest decline among the different product categories. Oleochemical exports dropped 9.6 percent, only reaching 368,000 tons in April. Overall exports also went down 37 percent in dollar terms to $2.07 billion.
From a destination standpoint, the biggest decline in April exports came from the palm oil products that were going to the European Union (EU) market. Gapki did not say why the EU-bound export had gone down by 156,000 tons compared to March figures, although the European bloc’s relations with Jakarta have met some obstacles over palm oil-related deforestation concerns. Followed by India (-155,000 tons), the US (-113,000 tons), and Pakistan (-109,000 tons). Jakarta Globe
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GS Caltex to Recycle Palm Oil Wastewater in Indonesia
GS Caltex plans to recycle palm oil wastewater from palm oil factories in eastern Indonesia to secure bio-raw materials and reduce greenhouse gas emissions.
GS Caltex announced on June 24 that it has been selected as a project company for the “2025 International Greenhouse Gas Reduction Project Feasibility Study Support Project” promoted by the Ministry of Economy and Finance and the Export-Import Bank of Korea. This project is part of the government’s initiative to support companies’ overseas greenhouse gas reduction efforts, which has been promoted since 2023 to achieve the “2030 National Greenhouse Gas Reduction Target (NDC)”.
Indonesia, the world’s leading producer and exporter of palm oil, faces challenges in palm oil wastewater treatment. Palm oil wastewater is typically processed through several stages of open ponds for organic matter decomposition, during which large amounts of methane (CH4) are released into the atmosphere. According to the Intergovernmental Panel on Climate Change (IPCC), methane’s global warming potential (GWP) is 28 times higher than that of carbon dioxide over a 100-year period after emission.
GS Caltex is introducing Indonesia’s first palm oil wastewater evaporation concentration treatment facility. Through this, the company plans to suppress palm oil wastewater decomposition, reduce methane generation, and recover palm oil waste by recycling the wastewater. Palm oil waste can be used in biofuels such as Sustainable Aviation Fuel (SAF). Water and sediment recovered during the treatment process will be reused as water for palm plantations and compost. GS Caltex will conduct a six-month feasibility study to evaluate the greenhouse gas reduction effect and economic viability of the project, and if positive results are obtained, will determine the investment scale and timing.
When implementing the palm oil wastewater recycling project in Indonesia, it is expected that more than 120,000 tCO2eq of greenhouse gases will be reduced annually per evaporation concentration facility unit. This is equivalent to the amount of carbon dioxide absorbed annually by 13.95 million 30-year-old pine trees. The reduced greenhouse gas emissions can be recognized as carbon credits, contributing to the achievement of NDC targets for both Korea and Indonesia.
A GS Caltex official said, “Palm oil wastewater evaporation concentration treatment is easier than the existing methane capture method and has a greater methane reduction effect by preventing decomposition through immediate treatment of palm oil wastewater.” The official added, “Depending on the results of the feasibility study, we plan to consider implementing the project for palm plantations in Indonesia.”
출처 : Businesskorea(https://www.businesskorea.co.kr)
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Malaysia's palm oil: Navigating global trade challenges
[Branded] New regulations, market shifts, and geopolitical pressures are presenting unprecedented challenges for the palm oil industry . Here’s how the Malaysian Palm Oil Council (MPOC) is championing the growth of the local industry and ensuring the resilience of palm oil exports in a rapidly evolving global landscape.
Indonesia palm oil stocks rise 50% in April after fall in exports
JAKARTA (June 24): Indonesia's palm oil inventory rose 50% on the month to reach 3.04 million metric tonnes by the end of April, its highest since May last year following a decline in exports, data from Gapki, Indonesia's palm oil association, showed on Tuesday.
Exports fell 38.14% month-on-month in April to 1.78 million tonnes due to a decline in demand from the European Union, India, United States, Pakistan and Bangladesh.
Crude palm oil output in April was 4.48 million tonnes, up from 4.39 million tonnes in March.
The data is in line with expectations as palm oil's premium over rival oils in April prompted buyers to switch to soyoil, a New Delhi-based dealer with a global trade house said.
In May, palm oil began trading at a discount, leading to a jump in exports from Indonesia, which may have brought down inventories by the end of the month, the trader said.
"Even in June, exports are expected to remain robust. Indonesia's move to lower export tax has been helping exports," he said. The Edge/ Reuters
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Indonesia’s Palm Oil Export Drops 39 Pct as EU Buys Less
Jakarta. Indonesia recorded a double-digit decline in its palm oil exports in April as European countries cut back on Jakarta’s top agricultural commodity, according to the producers association Gapki on Tuesday.
Indonesia only exported around 1.78 million tons of palm oil products in April, down 39.2 percent after it hit 2.88 million tons overseas the previous month. Gapki reported that processed palm oil exports fell 41.7 percent from 2.13 million tons to 1.24 million tons over the same period, making it the steepest decline among the different product categories. Oleochemical exports dropped 9.6 percent, only reaching 368,000 tons in April. Overall exports also went down 37 percent in dollar terms to $2.07 billion.
From a destination standpoint, the biggest decline in April exports came from the palm oil products that were going to the European Union (EU) market. Gapki did not say why the EU-bound export had gone down by 156,000 tons compared to March figures, although the European bloc’s relations with Jakarta have met some obstacles over palm oil-related deforestation concerns. Followed by India (-155,000 tons), the US (-113,000 tons), and Pakistan (-109,000 tons). Jakarta Globe
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GS Caltex to Recycle Palm Oil Wastewater in Indonesia
GS Caltex plans to recycle palm oil wastewater from palm oil factories in eastern Indonesia to secure bio-raw materials and reduce greenhouse gas emissions.
GS Caltex announced on June 24 that it has been selected as a project company for the “2025 International Greenhouse Gas Reduction Project Feasibility Study Support Project” promoted by the Ministry of Economy and Finance and the Export-Import Bank of Korea. This project is part of the government’s initiative to support companies’ overseas greenhouse gas reduction efforts, which has been promoted since 2023 to achieve the “2030 National Greenhouse Gas Reduction Target (NDC)”.
Indonesia, the world’s leading producer and exporter of palm oil, faces challenges in palm oil wastewater treatment. Palm oil wastewater is typically processed through several stages of open ponds for organic matter decomposition, during which large amounts of methane (CH4) are released into the atmosphere. According to the Intergovernmental Panel on Climate Change (IPCC), methane’s global warming potential (GWP) is 28 times higher than that of carbon dioxide over a 100-year period after emission.
GS Caltex is introducing Indonesia’s first palm oil wastewater evaporation concentration treatment facility. Through this, the company plans to suppress palm oil wastewater decomposition, reduce methane generation, and recover palm oil waste by recycling the wastewater. Palm oil waste can be used in biofuels such as Sustainable Aviation Fuel (SAF). Water and sediment recovered during the treatment process will be reused as water for palm plantations and compost. GS Caltex will conduct a six-month feasibility study to evaluate the greenhouse gas reduction effect and economic viability of the project, and if positive results are obtained, will determine the investment scale and timing.
When implementing the palm oil wastewater recycling project in Indonesia, it is expected that more than 120,000 tCO2eq of greenhouse gases will be reduced annually per evaporation concentration facility unit. This is equivalent to the amount of carbon dioxide absorbed annually by 13.95 million 30-year-old pine trees. The reduced greenhouse gas emissions can be recognized as carbon credits, contributing to the achievement of NDC targets for both Korea and Indonesia.
A GS Caltex official said, “Palm oil wastewater evaporation concentration treatment is easier than the existing methane capture method and has a greater methane reduction effect by preventing decomposition through immediate treatment of palm oil wastewater.” The official added, “Depending on the results of the feasibility study, we plan to consider implementing the project for palm plantations in Indonesia.”
출처 : Businesskorea(https://www.businesskorea.co.kr)
---------
Malaysia's palm oil: Navigating global trade challenges
[Branded] New regulations, market shifts, and geopolitical pressures are presenting unprecedented challenges for the palm oil industry . Here’s how the Malaysian Palm Oil Council (MPOC) is championing the growth of the local industry and ensuring the resilience of palm oil exports in a rapidly evolving global landscape.
Nigeria imported $600m palm oil from Malaysia in 2024 -Envoy
The High Commissioner of Malaysia to Nigeria, Aiyub Omar, has said approximately 50 per cent of Malaysia’s exports to Nigeria consist of palm oil, contributing to an export figure of $600 million in 2024.
Omar who made this known on Sunday in Abuja added that the thriving palm oil trade between Malaysia and Nigeria has enhanced relations between the two countries.
He noted that the surge in trade signified a strong commitment to agricultural collaboration between Nigeria and Malaysia.
He added that this has also increased interest from foreign investors looking to capitalise on Nigeria’s agricultural potential.
The high commissioner recalled that during a visit to Calabar in May 2025, he met with members of the Malaysian Diaspora, many of whom were engaged in the palm oil sector. PM NewsNG
The High Commissioner of Malaysia to Nigeria, Aiyub Omar, has said approximately 50 per cent of Malaysia’s exports to Nigeria consist of palm oil, contributing to an export figure of $600 million in 2024.
Omar who made this known on Sunday in Abuja added that the thriving palm oil trade between Malaysia and Nigeria has enhanced relations between the two countries.
He noted that the surge in trade signified a strong commitment to agricultural collaboration between Nigeria and Malaysia.
He added that this has also increased interest from foreign investors looking to capitalise on Nigeria’s agricultural potential.
The high commissioner recalled that during a visit to Calabar in May 2025, he met with members of the Malaysian Diaspora, many of whom were engaged in the palm oil sector. PM NewsNG
June 22, 2025
Pulses, Oilseeds Production Rising in India as MPs Express Concern Over Imports
The government has told a parliamentary committee that domestic production of pulses and edible oils has risen at a greater pace in the last 10 years than the decade before, amid concerns raised by MPs over India's dependence on imports to meet demand.
A presentation to the Standing Committee on Agriculture, Animal Husbandry and Food Processing said imports at 15.66 million metric tonnes (MMT) accounted for 56 per cent of the domestic demand for edible oils in 2023-24 Sources said the agriculture ministry, however, in the meeting on June 20 emphasised the work being undertaken for self-sufficiency in the sector and noted that oilseeds production had risen by 55 per cent between 2014-15 and 2024-25, with third advance estimate pegging its production at 426.09 lakh tonnes in the last fiscal.
The corresponding increase was 13 per cent between 2004-05 and 2014-15.
With the country almost entirely dependent on imports to meet the palm oil demand, some MPs flagged health hazards associated with the relatively cheap edible oil, sources said.
The ministry said India's heavy dependence on edible oil imports is costing more Rs 80,000 crore annually.
Based on the 2023-24 figure shared by the ministry in its presentation, India's domestic production was sufficient to meet the requirement of mustard and groundnut oils but had to import 3.49 MMT of sunflower oil against the consumption of 3.55 MMT. It also imported more than 60 per cent of its soyabean oil consumption.
The presentation on pulses said their production rose by 47 per cent between 2014-15 and 2024-25, a period marked by the continuing BJP-led NDA government, against 31 per cent in 2004-14, when the Congress-led UPA was in power.
MPs in the meeting called for incentivising farmers growing paddy and wheat to shift to pulses and other crops.
The ministry spoke in detail about the government's roadmap to achieve 'aatmanirbharta' (self-reliance) in pulses and oilseeds production by 2030-31, programmes unveiled in this year's budget.
Among the challenges in boosting pulse production, the ministry noted that 75 per cent of these crops are rainfed and grown on marginal lands with low fertility by small and marginal farmers.
The sources said the presentation also touched on the nationwide campaign for "optimal utilization of edible oils and its health benefits" following Prime Minister Narendra Modi's call for a 10 per cent cut in their intake for overall fitness. Outlook Business
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3F Oil Palm’s plantation project in Assam
The plantation is being taken up on a 20-hectare plot owned by Maijen Hagjer, who practices sustainable agricultural practices
3F Oil Palm Private Limited, a palm oil producing company, has joined hands with the Assam government to launch the annual mega oil palm plantation drive under the National Mission on Edible Oils – Oil Palm (NMEO-OP) at Digandu Village 5 in Dima Hasao district on Friday.
“The plantation is being taken up on a 20-hectare plot owned by Maijen Hagjer, who practices sustainable agricultural practices,” the company said in a statement here on Saturday.
“We are playing a key role in the State’s oil palm development efforts. We believe that oil palm cultivation can be a transformative crop for the North-East. We will provide quality planting material and timely technical guidance,” Srinivasarao Kilari, Vice President of 3F Oil Palm, said. The Hindu Businessline
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Raw material ban drains Sri Lanka’s palm oil-based product earnings
Sri Lanka would incur a potential loss of around US$ 40 million due to the ban on the importation of crude palm oil (CPO), which is used in the production of bakery fats and margarine for export mainly to Indian market, companies operating under the Board of Investment (BOI) reiterated.
The CPO imports were banned during the 2021/2022 period under a policy decision taken by the administration of President Gotabaya Rajapaksa. The related gazette notification also restricted the issuance of import and export licenses for the commodity.
Additionally, the importation of palm-related raw materials such as crude palm olein (CPOL), palm stearin, and crude palm kernel oil has been brought under a licencing system.
Companies operating under the BOI, which manufacture goods for export to India, are now required to obtain special bulk shipment import licences for their raw materials. These companies have described this as a highly unfortunate situation.
Sri Lanka enjoys a 27 per cent cost advantage compared to other countries when exporting bakery fats and hydrogenated fats (vanaspati ghee) to India under the Indo-Sri Lanka Bilateral Trade Agreement.
Although palm oil imports were banned in 2022, the recent reduction of import tariffs in India over the past quarter presented a major opportunity for Sri Lankan companies. However, with India increasing its import tariffs by 32 per cent from April 2025, the competitive edge for Sri Lankan products has worsened.
The Indian government has allocated a quota of 250,000 metric tonnes to Sri Lanka, under which the Sri Lankan companies estimate they need to import at least 6,000 metric tonnes of palm oil monthly to meet production targets.
Unfortunately, even BOI-registered companies are barred from importing crude palm oil due to the gazette notification.
Amid Sri Lanka’s ongoing severe foreign exchange crisis, the government has yet to implement any positive or effective measures to facilitate the importation of essential raw materials without disruptions.
Despite the BOI granting approvals for import licences, companies have been forced to turn away already imported palm oil shipments at the port, unable to offload them due to the ban.
Manufacturers have also pointed out to the government that without this critical raw material, their overall production volume of value-added goods could drop by 25 per cent, while the value of primary products relying on the banned raw material may decline by as much as 75 per cent.
They claim that there is a complete lack of awareness or understanding of this issue among present government officials.
Sri Lanka would incur a potential loss of around US$ 40 million due to the ban on the importation of crude palm oil (CPO), which is used in the production of bakery fats and margarine for export mainly to Indian market, companies operating under the Board of Investment (BOI) reiterated.
The CPO imports were banned during the 2021/2022 period under a policy decision taken by the administration of President Gotabaya Rajapaksa. The related gazette notification also restricted the issuance of import and export licenses for the commodity.
Additionally, the importation of palm-related raw materials such as crude palm olein (CPOL), palm stearin, and crude palm kernel oil has been brought under a licencing system.
Companies operating under the BOI, which manufacture goods for export to India, are now required to obtain special bulk shipment import licences for their raw materials. These companies have described this as a highly unfortunate situation.
Sri Lanka enjoys a 27 per cent cost advantage compared to other countries when exporting bakery fats and hydrogenated fats (vanaspati ghee) to India under the Indo-Sri Lanka Bilateral Trade Agreement.
Although palm oil imports were banned in 2022, the recent reduction of import tariffs in India over the past quarter presented a major opportunity for Sri Lankan companies. However, with India increasing its import tariffs by 32 per cent from April 2025, the competitive edge for Sri Lankan products has worsened.
The Indian government has allocated a quota of 250,000 metric tonnes to Sri Lanka, under which the Sri Lankan companies estimate they need to import at least 6,000 metric tonnes of palm oil monthly to meet production targets.
Unfortunately, even BOI-registered companies are barred from importing crude palm oil due to the gazette notification.
Amid Sri Lanka’s ongoing severe foreign exchange crisis, the government has yet to implement any positive or effective measures to facilitate the importation of essential raw materials without disruptions.
Despite the BOI granting approvals for import licences, companies have been forced to turn away already imported palm oil shipments at the port, unable to offload them due to the ban.
Manufacturers have also pointed out to the government that without this critical raw material, their overall production volume of value-added goods could drop by 25 per cent, while the value of primary products relying on the banned raw material may decline by as much as 75 per cent.
They claim that there is a complete lack of awareness or understanding of this issue among present government officials.
Sri Lanka would incur a potential loss of around US$ 40 million due to the ban on the importation of crude palm oil (CPO), which is used in the production of bakery fats and margarine for export mainly to Indian market, companies operating under the Board of Investment (BOI) reiterated.
The CPO imports were banned during the 2021/2022 period under a policy decision taken by the administration of President Gotabaya Rajapaksa. The related gazette notification also restricted the issuance of import and export licenses for the commodity.
Additionally, the importation of palm-related raw materials such as crude palm olein (CPOL), palm stearin, and crude palm kernel oil has been brought under a licencing system.
Companies operating under the BOI, which manufacture goods for export to India, are now required to obtain special bulk shipment import licences for their raw materials. These companies have described this as a highly unfortunate situation.
Sri Lanka enjoys a 27 per cent cost advantage compared to other countries when exporting bakery fats and hydrogenated fats (vanaspati ghee) to India under the Indo-Sri Lanka Bilateral Trade Agreement.
Although palm oil imports were banned in 2022, the recent reduction of import tariffs in India over the past quarter presented a major opportunity for Sri Lankan companies. However, with India increasing its import tariffs by 32 per cent from April 2025, the competitive edge for Sri Lankan products has worsened.
The Indian government has allocated a quota of 250,000 metric tonnes to Sri Lanka, under which the Sri Lankan companies estimate they need to import at least 6,000 metric tonnes of palm oil monthly to meet production targets.
Unfortunately, even BOI-registered companies are barred from importing crude palm oil due to the gazette notification.
Amid Sri Lanka’s ongoing severe foreign exchange crisis, the government has yet to implement any positive or effective measures to facilitate the importation of essential raw materials without disruptions.
Despite the BOI granting approvals for import licences, companies have been forced to turn away already imported palm oil shipments at the port, unable to offload them due to the ban.
Manufacturers have also pointed out to the government that without this critical raw material, their overall production volume of value-added goods could drop by 25 per cent, while the value of primary products relying on the banned raw material may decline by as much as 75 per cent.
They claim that there is a complete lack of awareness or understanding of this issue among present government officials. Sunday TimesLK
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Russia Invites Indonesia as Partner Country for INNOPROM Industrial Exhibition
St. Petersburg, Russia. The Russian government has officially invited Indonesia to become the partner country for the 2025 INNOPROM Industrial Exhibition, to be held in Yekaterinburg.
The invitation was extended by Russian First Deputy Prime Minister Denis Manturov during the Russia-Indonesia Business Dialogue, which took place last Friday in St. Petersburg and was attended by Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto.
The business dialogue was part of the St. Petersburg International Economic Forum (SPIEF) and also marked the 75th anniversary of diplomatic relations between Indonesia and Russia.
Manturov noted that the event was a follow-up to the Indonesia-Russia Business Forum held in Jakarta in April 2025.
“As stated in April, Russia is eager to deepen strategic cooperation with Indonesia across various sectors, including sovereign wealth funds, transportation, energy, fertilizers, food security, and digital health. We are also exploring greater collaboration in renewable energy and support for infrastructure projects in Indonesia,” said Manturov.
Russia also expressed satisfaction with the substantive conclusion of negotiations on the Indonesia-Eurasian Economic Union (I-EAEU) Free Trade Agreement, and hopes the agreement will be signed before the end of this year.
“We have invited Indonesia to attend INNOPROM 2025 in Yekaterinburg as our guest. Indonesia will serve as the official partner country for the 2026 edition of the exhibition, an initiative that has received full support from President Prabowo Subianto,” Manturov added.
Minister Airlangga welcomed the invitation and emphasized the strategic importance of SPIEF as a platform for strengthening economic partnerships, high-level dialogue, and generating inclusive, sustainable investment opportunities.
“SPIEF is one of the world’s leading economic forums. Indonesia is open to comprehensive discussions on enhancing cooperation with Russia in banking, finance, retail, and payment systems,” Airlangga said. Jakarta Globe
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Warning: Reusing cooking oil twice could cause cancer
Things are hard, and the cost of living is climbing daily. Food prices have gone through the roof, and everyone is trying to make the most out of the little they have.
In many Nigerian homes, families are cutting back on expenses and managing resources like never before. One of the most commonly managed kitchen items is cooking oil. It’s not unusual to find people frying akara in the morning, using the same oil to fry plantain in the afternoon, and then reusing it the next day for fish before finally using it for stew.
Some even go as far as reusing cooking oil up to four or five times just to make ends meet. But the truth is, reusing cooking oil more than twice is dangerous, and it could lead to cancer. We're already doing our best to survive, but you shouldn't trade your health for it.
When cooking oil is heated repeatedly, it undergoes a chemical transformation. At high temperatures, especially during frying, oils start to break down. This breakdown process produces harmful compounds such as free radicals, acrolein, and polycyclic aromatic hydrocarbons (PAHs). These compounds are known to be carcinogenic, meaning they can cause cancer.
The more you heat the oil, the more these dangerous substances accumulate. If you're using oil that has darkened in colour, smells burnt, or has thick residue at the bottom, it is very dangerous! PulseNG
Pulses, Oilseeds Production Rising in India as MPs Express Concern Over Imports
The government has told a parliamentary committee that domestic production of pulses and edible oils has risen at a greater pace in the last 10 years than the decade before, amid concerns raised by MPs over India's dependence on imports to meet demand.
A presentation to the Standing Committee on Agriculture, Animal Husbandry and Food Processing said imports at 15.66 million metric tonnes (MMT) accounted for 56 per cent of the domestic demand for edible oils in 2023-24 Sources said the agriculture ministry, however, in the meeting on June 20 emphasised the work being undertaken for self-sufficiency in the sector and noted that oilseeds production had risen by 55 per cent between 2014-15 and 2024-25, with third advance estimate pegging its production at 426.09 lakh tonnes in the last fiscal.
The corresponding increase was 13 per cent between 2004-05 and 2014-15.
With the country almost entirely dependent on imports to meet the palm oil demand, some MPs flagged health hazards associated with the relatively cheap edible oil, sources said.
The ministry said India's heavy dependence on edible oil imports is costing more Rs 80,000 crore annually.
Based on the 2023-24 figure shared by the ministry in its presentation, India's domestic production was sufficient to meet the requirement of mustard and groundnut oils but had to import 3.49 MMT of sunflower oil against the consumption of 3.55 MMT. It also imported more than 60 per cent of its soyabean oil consumption.
The presentation on pulses said their production rose by 47 per cent between 2014-15 and 2024-25, a period marked by the continuing BJP-led NDA government, against 31 per cent in 2004-14, when the Congress-led UPA was in power.
MPs in the meeting called for incentivising farmers growing paddy and wheat to shift to pulses and other crops.
The ministry spoke in detail about the government's roadmap to achieve 'aatmanirbharta' (self-reliance) in pulses and oilseeds production by 2030-31, programmes unveiled in this year's budget.
Among the challenges in boosting pulse production, the ministry noted that 75 per cent of these crops are rainfed and grown on marginal lands with low fertility by small and marginal farmers.
The sources said the presentation also touched on the nationwide campaign for "optimal utilization of edible oils and its health benefits" following Prime Minister Narendra Modi's call for a 10 per cent cut in their intake for overall fitness. Outlook Business
---------
3F Oil Palm’s plantation project in Assam
The plantation is being taken up on a 20-hectare plot owned by Maijen Hagjer, who practices sustainable agricultural practices
3F Oil Palm Private Limited, a palm oil producing company, has joined hands with the Assam government to launch the annual mega oil palm plantation drive under the National Mission on Edible Oils – Oil Palm (NMEO-OP) at Digandu Village 5 in Dima Hasao district on Friday.
“The plantation is being taken up on a 20-hectare plot owned by Maijen Hagjer, who practices sustainable agricultural practices,” the company said in a statement here on Saturday.
“We are playing a key role in the State’s oil palm development efforts. We believe that oil palm cultivation can be a transformative crop for the North-East. We will provide quality planting material and timely technical guidance,” Srinivasarao Kilari, Vice President of 3F Oil Palm, said. The Hindu Businessline
---------
Raw material ban drains Sri Lanka’s palm oil-based product earnings
Sri Lanka would incur a potential loss of around US$ 40 million due to the ban on the importation of crude palm oil (CPO), which is used in the production of bakery fats and margarine for export mainly to Indian market, companies operating under the Board of Investment (BOI) reiterated.
The CPO imports were banned during the 2021/2022 period under a policy decision taken by the administration of President Gotabaya Rajapaksa. The related gazette notification also restricted the issuance of import and export licenses for the commodity.
Additionally, the importation of palm-related raw materials such as crude palm olein (CPOL), palm stearin, and crude palm kernel oil has been brought under a licencing system.
Companies operating under the BOI, which manufacture goods for export to India, are now required to obtain special bulk shipment import licences for their raw materials. These companies have described this as a highly unfortunate situation.
Sri Lanka enjoys a 27 per cent cost advantage compared to other countries when exporting bakery fats and hydrogenated fats (vanaspati ghee) to India under the Indo-Sri Lanka Bilateral Trade Agreement.
Although palm oil imports were banned in 2022, the recent reduction of import tariffs in India over the past quarter presented a major opportunity for Sri Lankan companies. However, with India increasing its import tariffs by 32 per cent from April 2025, the competitive edge for Sri Lankan products has worsened.
The Indian government has allocated a quota of 250,000 metric tonnes to Sri Lanka, under which the Sri Lankan companies estimate they need to import at least 6,000 metric tonnes of palm oil monthly to meet production targets.
Unfortunately, even BOI-registered companies are barred from importing crude palm oil due to the gazette notification.
Amid Sri Lanka’s ongoing severe foreign exchange crisis, the government has yet to implement any positive or effective measures to facilitate the importation of essential raw materials without disruptions.
Despite the BOI granting approvals for import licences, companies have been forced to turn away already imported palm oil shipments at the port, unable to offload them due to the ban.
Manufacturers have also pointed out to the government that without this critical raw material, their overall production volume of value-added goods could drop by 25 per cent, while the value of primary products relying on the banned raw material may decline by as much as 75 per cent.
They claim that there is a complete lack of awareness or understanding of this issue among present government officials.
Sri Lanka would incur a potential loss of around US$ 40 million due to the ban on the importation of crude palm oil (CPO), which is used in the production of bakery fats and margarine for export mainly to Indian market, companies operating under the Board of Investment (BOI) reiterated.
The CPO imports were banned during the 2021/2022 period under a policy decision taken by the administration of President Gotabaya Rajapaksa. The related gazette notification also restricted the issuance of import and export licenses for the commodity.
Additionally, the importation of palm-related raw materials such as crude palm olein (CPOL), palm stearin, and crude palm kernel oil has been brought under a licencing system.
Companies operating under the BOI, which manufacture goods for export to India, are now required to obtain special bulk shipment import licences for their raw materials. These companies have described this as a highly unfortunate situation.
Sri Lanka enjoys a 27 per cent cost advantage compared to other countries when exporting bakery fats and hydrogenated fats (vanaspati ghee) to India under the Indo-Sri Lanka Bilateral Trade Agreement.
Although palm oil imports were banned in 2022, the recent reduction of import tariffs in India over the past quarter presented a major opportunity for Sri Lankan companies. However, with India increasing its import tariffs by 32 per cent from April 2025, the competitive edge for Sri Lankan products has worsened.
The Indian government has allocated a quota of 250,000 metric tonnes to Sri Lanka, under which the Sri Lankan companies estimate they need to import at least 6,000 metric tonnes of palm oil monthly to meet production targets.
Unfortunately, even BOI-registered companies are barred from importing crude palm oil due to the gazette notification.
Amid Sri Lanka’s ongoing severe foreign exchange crisis, the government has yet to implement any positive or effective measures to facilitate the importation of essential raw materials without disruptions.
Despite the BOI granting approvals for import licences, companies have been forced to turn away already imported palm oil shipments at the port, unable to offload them due to the ban.
Manufacturers have also pointed out to the government that without this critical raw material, their overall production volume of value-added goods could drop by 25 per cent, while the value of primary products relying on the banned raw material may decline by as much as 75 per cent.
They claim that there is a complete lack of awareness or understanding of this issue among present government officials.
Sri Lanka would incur a potential loss of around US$ 40 million due to the ban on the importation of crude palm oil (CPO), which is used in the production of bakery fats and margarine for export mainly to Indian market, companies operating under the Board of Investment (BOI) reiterated.
The CPO imports were banned during the 2021/2022 period under a policy decision taken by the administration of President Gotabaya Rajapaksa. The related gazette notification also restricted the issuance of import and export licenses for the commodity.
Additionally, the importation of palm-related raw materials such as crude palm olein (CPOL), palm stearin, and crude palm kernel oil has been brought under a licencing system.
Companies operating under the BOI, which manufacture goods for export to India, are now required to obtain special bulk shipment import licences for their raw materials. These companies have described this as a highly unfortunate situation.
Sri Lanka enjoys a 27 per cent cost advantage compared to other countries when exporting bakery fats and hydrogenated fats (vanaspati ghee) to India under the Indo-Sri Lanka Bilateral Trade Agreement.
Although palm oil imports were banned in 2022, the recent reduction of import tariffs in India over the past quarter presented a major opportunity for Sri Lankan companies. However, with India increasing its import tariffs by 32 per cent from April 2025, the competitive edge for Sri Lankan products has worsened.
The Indian government has allocated a quota of 250,000 metric tonnes to Sri Lanka, under which the Sri Lankan companies estimate they need to import at least 6,000 metric tonnes of palm oil monthly to meet production targets.
Unfortunately, even BOI-registered companies are barred from importing crude palm oil due to the gazette notification.
Amid Sri Lanka’s ongoing severe foreign exchange crisis, the government has yet to implement any positive or effective measures to facilitate the importation of essential raw materials without disruptions.
Despite the BOI granting approvals for import licences, companies have been forced to turn away already imported palm oil shipments at the port, unable to offload them due to the ban.
Manufacturers have also pointed out to the government that without this critical raw material, their overall production volume of value-added goods could drop by 25 per cent, while the value of primary products relying on the banned raw material may decline by as much as 75 per cent.
They claim that there is a complete lack of awareness or understanding of this issue among present government officials. Sunday TimesLK
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Russia Invites Indonesia as Partner Country for INNOPROM Industrial Exhibition
St. Petersburg, Russia. The Russian government has officially invited Indonesia to become the partner country for the 2025 INNOPROM Industrial Exhibition, to be held in Yekaterinburg.
The invitation was extended by Russian First Deputy Prime Minister Denis Manturov during the Russia-Indonesia Business Dialogue, which took place last Friday in St. Petersburg and was attended by Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto.
The business dialogue was part of the St. Petersburg International Economic Forum (SPIEF) and also marked the 75th anniversary of diplomatic relations between Indonesia and Russia.
Manturov noted that the event was a follow-up to the Indonesia-Russia Business Forum held in Jakarta in April 2025.
“As stated in April, Russia is eager to deepen strategic cooperation with Indonesia across various sectors, including sovereign wealth funds, transportation, energy, fertilizers, food security, and digital health. We are also exploring greater collaboration in renewable energy and support for infrastructure projects in Indonesia,” said Manturov.
Russia also expressed satisfaction with the substantive conclusion of negotiations on the Indonesia-Eurasian Economic Union (I-EAEU) Free Trade Agreement, and hopes the agreement will be signed before the end of this year.
“We have invited Indonesia to attend INNOPROM 2025 in Yekaterinburg as our guest. Indonesia will serve as the official partner country for the 2026 edition of the exhibition, an initiative that has received full support from President Prabowo Subianto,” Manturov added.
Minister Airlangga welcomed the invitation and emphasized the strategic importance of SPIEF as a platform for strengthening economic partnerships, high-level dialogue, and generating inclusive, sustainable investment opportunities.
“SPIEF is one of the world’s leading economic forums. Indonesia is open to comprehensive discussions on enhancing cooperation with Russia in banking, finance, retail, and payment systems,” Airlangga said. Jakarta Globe
---------
Warning: Reusing cooking oil twice could cause cancer
Things are hard, and the cost of living is climbing daily. Food prices have gone through the roof, and everyone is trying to make the most out of the little they have.
In many Nigerian homes, families are cutting back on expenses and managing resources like never before. One of the most commonly managed kitchen items is cooking oil. It’s not unusual to find people frying akara in the morning, using the same oil to fry plantain in the afternoon, and then reusing it the next day for fish before finally using it for stew.
Some even go as far as reusing cooking oil up to four or five times just to make ends meet. But the truth is, reusing cooking oil more than twice is dangerous, and it could lead to cancer. We're already doing our best to survive, but you shouldn't trade your health for it.
When cooking oil is heated repeatedly, it undergoes a chemical transformation. At high temperatures, especially during frying, oils start to break down. This breakdown process produces harmful compounds such as free radicals, acrolein, and polycyclic aromatic hydrocarbons (PAHs). These compounds are known to be carcinogenic, meaning they can cause cancer.
The more you heat the oil, the more these dangerous substances accumulate. If you're using oil that has darkened in colour, smells burnt, or has thick residue at the bottom, it is very dangerous! PulseNG
June 21, 2025
Ministry of Industry Accelerates Palm Oil Downstream Digitalization via Siprosatu Platform
PALMOILMAGAZINE, JAKARTA – In line with the Making Indonesia 4.0 roadmap, the Ministry of Industry (Kemenperin) is ramping up digital transformation within the national manufacturing sector, particularly in the palm oil downstream industry.
To support this initiative, the Directorate General of Agro Industry has developed the Sistem Informasi Produk Sawit dan Turunannya (Siprosatu) — a digital platform designed for real-time reporting of material and product mass balance.
“Siprosatu will serve as a backbone for monitoring and controlling the palm oil industry by regulators,” said Director General of Agro Industry, Putu Juli Ardika, in an official statement on Friday (June 13).
Beyond its role as a regulatory tool, Siprosatu is also intended to trace the palm oil product supply chain from upstream to end consumers, enhancing transparency and supporting accountability in state revenue from the sector. Key products to be monitored include palm cooking oil, oleofood, and biodiesel derived from CPO and RFM (Refinery, Fractionation, Modification) industries.
Putu noted that Siprosatu is designed with flexibility in mind and can be integrated with platforms operated by other ministries and agencies. One of the future plans includes integrating it with the ISPO (Indonesian Sustainable Palm Oil) Information System to support sustainable palm oil certification.
Kemenperin is receiving support from PT Siemens Indonesia in the development of the platform. Siemens has provided technical training to human resources from palm oil companies, focusing on Making Indonesia 4.0 principles, digital business process transformation, and platform integration. Siemens also played a role in designing the Siprosatu platform to ensure a robust digital ecosystem — including hardware, software, technology, information, and skilled workforce.
Putu expressed confidence that this digital initiative will strengthen the performance of Indonesia’s agro-industrial sector, which remains a key contributor to the national economy. In Q1 2025, the agro industry grew by 4.69%, with investment realization reaching IDR 38.72 trillion — consisting of IDR 21.33 trillion in foreign investment and IDR 17.39 trillion in domestic investment.
The agro industry also contributed 52.17% to the non-oil and gas industrial GDP and employed 9.37 million workers. “These figures clearly show that the agro sector is a vital pillar for job creation and improving community welfare,” Putu emphasized. Palm Oil Magazine
---------
Malaysia plans new steps in fight against forced labour
Stakeholders meet in Kuala Lumpur to review progress and shape a stronger, more coordinated National Action Plan on Forced Labour.
Kuala Lumpur (ILO News) - Malaysia is stepping up its efforts to eradicate forced labour through the development of a renewed National Action Plan on Forced Labour (NAPFL) with the support of the International Labour Organization.
Over 70 representatives from government agencies, employers’ and workers’ organizations as well as civil society gathered in Kuala Lumpur 18–19 June 2025 to discuss the preliminary findings of an assessment of the existing NAPFL and lay the foundation for the next phase.
“Let the delivery of the national action plan be comprehensive, practical and most importantly sustainable and adaptable in the rapidly changing world of work,” said YB Puan Norzawatil Amali binti Alias, Undersecretary of the Policy Division at the Ministry of Human Resources.
The current NAPFL 2021–2025 serves as a national framework to eliminate all forms of forced labour by 2030. It is structured around four strategic goals—awareness, enforcement, protection and partnership—and seeks to strengthen institutional capacity, ensure victim-centred responses and promote inclusive stakeholder collaboration.
Participants reviewed the preliminary findings of an ILO-supported assessment of the current NAPFL 2021-2025. The assessment emphasized the need to strengthen coordination across overlapping national action plans addressing forced labour, trafficking in persons and business and human rights. Key priorities included clarifying institutional roles, harmonizing data systems, reinforcing results-based management frameworks and establishing joint mechanisms for monitoring and evidence-based action.
A roadmap was outlined for the coming three to six months to guide the drafting of the new NAPFL, with a focus on alignment with international standards and strengthening inter-agency coordination. ILO
---------
MSPO-ASSC deal to drive demand for Malaysia's sustainable palm oil in Japan
PUTRAJAYA: The Malaysian Sustainable Palm Oil (MSPO), formerly the Malaysian Palm Oil Certification Council, has signed a memorandum of understanding with Japan’s Global Alliance for Sustainable Supply Chain (ASSC) to boost demand and expand market access for MSPO-certified palm oil across Japan’s premium industrial sectors.
According to a statement from the Plantation and Commodities Ministry, the collaboration is significant in Malaysia’s efforts to strengthen the global positioning of its sustainable palm oil industry.
"This partnership is expected to unlock new opportunities in Japan’s high-value industries and enhance Malaysia’s presence in global sustainable supply chains,” the statement said.
The partnership positions the MSPO at the centre of Japan’s sustainable procurement ecosystem, providing Malaysian producers with direct access to buyers who prioritise responsible sourcing, the ministry said.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said: "This strategic partnership marks a significant milestone in Malaysia’s efforts to champion sustainable palm oil on the global stage. It reflects growing international recognition of MSPO as a credible and inclusive certification that meets the highest environmental and social standards.
"At its core, MSPO is not just about markets, it is about people. This collaboration opens up real opportunities for our smallholders, empowers our workers, and uplifts rural communities by ensuring that their palm oil can reach high-value, sustainability-conscious markets like Japan,” he said.
The ministry said the partnership builds on the outcome of a comprehensive human rights impact assessment (HRIA) conducted in 2023 by Ajinomoto Co Inc and ASSC which validated the MSPO framework as robust, inclusive and well-aligned with international expectations, particularly in safeguarding smallholder livelihoods and protecting workers’ rights. The StarMY
---------
Platts to update Malaysia POME assessment laycan and specifications
Platts, part of S&P Global Commodity Insights, will update its Asia Palm Oil Mill Effluent (POME) FOB Malaysia assessment (APOMB00), effective July 1, 2025, to reflect the recent quality and loading laycan of POME traded in the spot market.
The decision follows a period of market feedback and alongside Platts observation that the maximum free fatty acids (FFA) value for Asia POME has been falling. This is due to the market practice of collecting fresher POME with a lower FFA value from palm oil mills. Therefore, Platts will update its POME FOB Malaysia assessment to reflect a FFA of maximum 50%.
Other quality specifications will remain unchanged.
Platts will also narrow the loading period for its POME, FOB Malaysia assessment to better reflect changed trading norms.
The assessment will reflect POME cargoes loading during a 45-day period covering three half months, starting 15 days forward from the date of publication. The assessment laycan will roll over to the next 45 days on the 1st and 16th of each month, or the first publishing day after if they fall on the weekend or a public holiday.
For example, on Aug. 1, 2025, the Platts POME FOB Malaysia assessment will reflect cargoes loading Aug. 16 to Sept. 30, reflecting H2 August, H1 September and H2 September. On Aug. 18, 2025, the assessment will reflect cargoes loading in H1 September, H2 September and H1 October.
The updates to the assessment laycan and quality specifications are summarized in the table below:
Asia POME FOB Malaysia (APOMB00) SPGLOBAL
---------
Turbulence ahead: How used cooking oil could hinder aviation’s green fuel hopes
A joint investigation by The Straits Times and Climate Home News reveals how soaring demand for this key ingredient in sustainable aviation fuel has led to ‘ridiculous’ data and suspected fraud – undermining the industry’s climate goals.
MELAKA, Malaysia – This is the starting point for the world’s – and especially Europe’s – lofty dreams of greener air travel: a collection point for plastic bottles filled with discarded frying oil in Malaysia.
One Saturday morning in May 2025 in the city of Melaka, volunteers in green T-shirts rushed over as Ms Adibah Rahim and her husband drove into the central square, eager to unpack, weigh and register her consignment of used cooking oil (UCO) – the “liquid gold” in European and Asian plans to ramp up production of sustainable aviation fuel (SAF).
Ms Rahim, a housewife, told The Straits Times it was her first time selling used oil, which she had collected over five to six months. She left the collection point RM90 (S$27) richer: At RM3 per litre of oil, it is a welcome boost to her family’s household budget.
“We usually collect UCO from around 200 members of the public,” said Mr Michael Andrew, sales manager for Evergreen Oil & Feed, the company running the Melaka collection with the local council. Evergreen, which runs similar collection drives elsewhere in Malaysia, supplies leading European SAF producers such as Spain’s Repsol, UK-based Shell and Finland’s Neste, the operator of SAF refineries in Europe and Singapore.
The aviation industry and many governments, including Singapore’s, are pinning their hopes on SAF as a way to cut the sector’s greenhouse gas emissions, which are set to increase as demand for flying grows.
And fuel suppliers around the world are scrambling for raw materials to meet new legal SAF blending quotas in Europe and growing demand elsewhere. Read more Straits Times
Ministry of Industry Accelerates Palm Oil Downstream Digitalization via Siprosatu Platform
PALMOILMAGAZINE, JAKARTA – In line with the Making Indonesia 4.0 roadmap, the Ministry of Industry (Kemenperin) is ramping up digital transformation within the national manufacturing sector, particularly in the palm oil downstream industry.
To support this initiative, the Directorate General of Agro Industry has developed the Sistem Informasi Produk Sawit dan Turunannya (Siprosatu) — a digital platform designed for real-time reporting of material and product mass balance.
“Siprosatu will serve as a backbone for monitoring and controlling the palm oil industry by regulators,” said Director General of Agro Industry, Putu Juli Ardika, in an official statement on Friday (June 13).
Beyond its role as a regulatory tool, Siprosatu is also intended to trace the palm oil product supply chain from upstream to end consumers, enhancing transparency and supporting accountability in state revenue from the sector. Key products to be monitored include palm cooking oil, oleofood, and biodiesel derived from CPO and RFM (Refinery, Fractionation, Modification) industries.
Putu noted that Siprosatu is designed with flexibility in mind and can be integrated with platforms operated by other ministries and agencies. One of the future plans includes integrating it with the ISPO (Indonesian Sustainable Palm Oil) Information System to support sustainable palm oil certification.
Kemenperin is receiving support from PT Siemens Indonesia in the development of the platform. Siemens has provided technical training to human resources from palm oil companies, focusing on Making Indonesia 4.0 principles, digital business process transformation, and platform integration. Siemens also played a role in designing the Siprosatu platform to ensure a robust digital ecosystem — including hardware, software, technology, information, and skilled workforce.
Putu expressed confidence that this digital initiative will strengthen the performance of Indonesia’s agro-industrial sector, which remains a key contributor to the national economy. In Q1 2025, the agro industry grew by 4.69%, with investment realization reaching IDR 38.72 trillion — consisting of IDR 21.33 trillion in foreign investment and IDR 17.39 trillion in domestic investment.
The agro industry also contributed 52.17% to the non-oil and gas industrial GDP and employed 9.37 million workers. “These figures clearly show that the agro sector is a vital pillar for job creation and improving community welfare,” Putu emphasized. Palm Oil Magazine
---------
Malaysia plans new steps in fight against forced labour
Stakeholders meet in Kuala Lumpur to review progress and shape a stronger, more coordinated National Action Plan on Forced Labour.
Kuala Lumpur (ILO News) - Malaysia is stepping up its efforts to eradicate forced labour through the development of a renewed National Action Plan on Forced Labour (NAPFL) with the support of the International Labour Organization.
Over 70 representatives from government agencies, employers’ and workers’ organizations as well as civil society gathered in Kuala Lumpur 18–19 June 2025 to discuss the preliminary findings of an assessment of the existing NAPFL and lay the foundation for the next phase.
“Let the delivery of the national action plan be comprehensive, practical and most importantly sustainable and adaptable in the rapidly changing world of work,” said YB Puan Norzawatil Amali binti Alias, Undersecretary of the Policy Division at the Ministry of Human Resources.
The current NAPFL 2021–2025 serves as a national framework to eliminate all forms of forced labour by 2030. It is structured around four strategic goals—awareness, enforcement, protection and partnership—and seeks to strengthen institutional capacity, ensure victim-centred responses and promote inclusive stakeholder collaboration.
Participants reviewed the preliminary findings of an ILO-supported assessment of the current NAPFL 2021-2025. The assessment emphasized the need to strengthen coordination across overlapping national action plans addressing forced labour, trafficking in persons and business and human rights. Key priorities included clarifying institutional roles, harmonizing data systems, reinforcing results-based management frameworks and establishing joint mechanisms for monitoring and evidence-based action.
A roadmap was outlined for the coming three to six months to guide the drafting of the new NAPFL, with a focus on alignment with international standards and strengthening inter-agency coordination. ILO
---------
MSPO-ASSC deal to drive demand for Malaysia's sustainable palm oil in Japan
PUTRAJAYA: The Malaysian Sustainable Palm Oil (MSPO), formerly the Malaysian Palm Oil Certification Council, has signed a memorandum of understanding with Japan’s Global Alliance for Sustainable Supply Chain (ASSC) to boost demand and expand market access for MSPO-certified palm oil across Japan’s premium industrial sectors.
According to a statement from the Plantation and Commodities Ministry, the collaboration is significant in Malaysia’s efforts to strengthen the global positioning of its sustainable palm oil industry.
"This partnership is expected to unlock new opportunities in Japan’s high-value industries and enhance Malaysia’s presence in global sustainable supply chains,” the statement said.
The partnership positions the MSPO at the centre of Japan’s sustainable procurement ecosystem, providing Malaysian producers with direct access to buyers who prioritise responsible sourcing, the ministry said.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said: "This strategic partnership marks a significant milestone in Malaysia’s efforts to champion sustainable palm oil on the global stage. It reflects growing international recognition of MSPO as a credible and inclusive certification that meets the highest environmental and social standards.
"At its core, MSPO is not just about markets, it is about people. This collaboration opens up real opportunities for our smallholders, empowers our workers, and uplifts rural communities by ensuring that their palm oil can reach high-value, sustainability-conscious markets like Japan,” he said.
The ministry said the partnership builds on the outcome of a comprehensive human rights impact assessment (HRIA) conducted in 2023 by Ajinomoto Co Inc and ASSC which validated the MSPO framework as robust, inclusive and well-aligned with international expectations, particularly in safeguarding smallholder livelihoods and protecting workers’ rights. The StarMY
---------
Platts to update Malaysia POME assessment laycan and specifications
Platts, part of S&P Global Commodity Insights, will update its Asia Palm Oil Mill Effluent (POME) FOB Malaysia assessment (APOMB00), effective July 1, 2025, to reflect the recent quality and loading laycan of POME traded in the spot market.
The decision follows a period of market feedback and alongside Platts observation that the maximum free fatty acids (FFA) value for Asia POME has been falling. This is due to the market practice of collecting fresher POME with a lower FFA value from palm oil mills. Therefore, Platts will update its POME FOB Malaysia assessment to reflect a FFA of maximum 50%.
Other quality specifications will remain unchanged.
Platts will also narrow the loading period for its POME, FOB Malaysia assessment to better reflect changed trading norms.
The assessment will reflect POME cargoes loading during a 45-day period covering three half months, starting 15 days forward from the date of publication. The assessment laycan will roll over to the next 45 days on the 1st and 16th of each month, or the first publishing day after if they fall on the weekend or a public holiday.
For example, on Aug. 1, 2025, the Platts POME FOB Malaysia assessment will reflect cargoes loading Aug. 16 to Sept. 30, reflecting H2 August, H1 September and H2 September. On Aug. 18, 2025, the assessment will reflect cargoes loading in H1 September, H2 September and H1 October.
The updates to the assessment laycan and quality specifications are summarized in the table below:
Asia POME FOB Malaysia (APOMB00) SPGLOBAL
---------
Turbulence ahead: How used cooking oil could hinder aviation’s green fuel hopes
A joint investigation by The Straits Times and Climate Home News reveals how soaring demand for this key ingredient in sustainable aviation fuel has led to ‘ridiculous’ data and suspected fraud – undermining the industry’s climate goals.
MELAKA, Malaysia – This is the starting point for the world’s – and especially Europe’s – lofty dreams of greener air travel: a collection point for plastic bottles filled with discarded frying oil in Malaysia.
One Saturday morning in May 2025 in the city of Melaka, volunteers in green T-shirts rushed over as Ms Adibah Rahim and her husband drove into the central square, eager to unpack, weigh and register her consignment of used cooking oil (UCO) – the “liquid gold” in European and Asian plans to ramp up production of sustainable aviation fuel (SAF).
Ms Rahim, a housewife, told The Straits Times it was her first time selling used oil, which she had collected over five to six months. She left the collection point RM90 (S$27) richer: At RM3 per litre of oil, it is a welcome boost to her family’s household budget.
“We usually collect UCO from around 200 members of the public,” said Mr Michael Andrew, sales manager for Evergreen Oil & Feed, the company running the Melaka collection with the local council. Evergreen, which runs similar collection drives elsewhere in Malaysia, supplies leading European SAF producers such as Spain’s Repsol, UK-based Shell and Finland’s Neste, the operator of SAF refineries in Europe and Singapore.
The aviation industry and many governments, including Singapore’s, are pinning their hopes on SAF as a way to cut the sector’s greenhouse gas emissions, which are set to increase as demand for flying grows.
And fuel suppliers around the world are scrambling for raw materials to meet new legal SAF blending quotas in Europe and growing demand elsewhere. Read more Straits Times
June 20, 2025
Indonesia expects to sign free trade deal with Russia-led union this year, minister says
JAKARTA, June 20 (Reuters) - Indonesia expects to sign a free trade agreement with the Russian-led Eurasian Economic Union (EAEU) this year in a move likely to boost demand for its commodity exports, its senior economic minister said in a statement released on Friday.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the agreement would open up new opportunities for commodities including crude palm oil, coffee and natural rubber.
Both parties announced on Thursday they had completed substantive talks for the agreement.
"I hope both parties can immediately follow this up by completing all the necessary stages of the process so that this agreement can be signed this year," Airlangga said.
As of March, the value of trade between Indonesia and the EAEU stood at $1.6 billion, 85% more than the same period last year, Indonesia's coordinating ministry for economic affairs said.
The EAEU is already one of Indonesia's biggest palm oil buyers, with imports valued at $544.64 million in 2023. The EAEU's main exports to the Southeast Asian nation include fertilisers and ferro-alloys.
The completion of Indonesia-EAEU FTA talks was announced on Thursday during President Prabowo Subianto's visit to Russia this week for a meeting with Russian President Vladimir Putin.
The EAEU has five members: Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. Reuters
---------
Pertamina and ReNikola partner to develop biogas projects in Indonesia
Indonesian state-owned energy company Pertamina, through its subsidiary PT Pertamina Gas (Pertagas), has signed a memorandum of understanding (MoU) with Malaysian renewable energy developer reNIKOLA Holdings.
The companies will collaborate on the development of biogas and biomethane projects in Indonesia.
The partnership aims to convert organic waste, particularly from palm oil production, into renewable gas for local and regional energy supply.
The agreement was formalised during the Pipelines and Energy Summit in Jakarta.
Under the MoU, the companies will jointly explore opportunities to build and operate biogas facilities in Sumatra and Kalimantan, two regions with significant palm oil processing activity and existing infrastructure challenges.
The planned facilities will use palm oil mill effluent (POME) and other organic waste streams to produce biogas, which will then be upgraded into biomethane and distributed through Pertagas’s pipeline network.
Pertagas President Director Gamal Imam Santoso said the partnership reflects Pertamina's ongoing commitment to expanding the use of alternative energy sources and decarbonising Indonesia’s energy mix.
He noted that the collaboration aligns well with Pertagas’s infrastructure capabilities and reNIKOLA’s experience in renewable project development, especially in compressed biogas systems.
Dr Mohd Amran Mohd Yusof, CEO of reNIKOLA Primer Energi, the company’s Indonesian unit, highlighted that the joint projects are designed to create new energy options for communities in remote and semi-rural areas.
He added that leveraging biogas production from palm oil waste could simultaneously advance environmental goals and support economic development in agricultural regions.
The MoU builds on recent regional momentum in biogas development.
In May 2025, reNIKOLA signed a similar agreement with Japan’s Sumitomo Corporation, targeting biomethane production in both Malaysia and Indonesia.
Earlier in the year, the company also entered into a build-own-operate-transfer agreement for a compressed biogas facility in North Sumatra, representing a US$6 million investment with the potential to offset approximately 40,000 tonnes of CO₂ emissions annually.
reNIKOLA has publicly committed to investing over US$240 million to develop as many as 40 compressed biomethane projects across Indonesia in the coming years.
The initiative is part of a broader strategy to contribute to the country’s goal of reaching 26 percent renewable energy in its national mix by 2030.
Although regulatory and logistical challenges remain - particularly around feedstock sourcing, permitting and integration with national gas infrastructure - both parties expressed confidence that this partnership represents a meaningful step forward in Indonesia’s renewable energy transition Bioenergy News
---------
Malaysian biomass transport cost to rise on subsidy cut
The cost of transporting biomass products could surge in Malaysia in the second half of 2025 because of fuel subsidy cuts by the government, potentially pushing up market prices.
The Malaysian government is expected to reduce petrol and diesel subsidies in July, according to market sources. Malaysia first announced plans to reduce fuel subsidies in October 2024, mainly targeting businesses, high income earners, and foreigners, with the subsidy to be removed entirely for these groups. This will inevitably lead to rising costs of procuring biomass in Malaysia, namely palm kernel shells (PKS) and wood pellets.
PKS collection takes place at crude palm oil (CPO) mills, and the cargoes are then loaded on trucks, transported inland to loading ports, and exported to key buyers such as Japan. Wood residue is also sent to pellet manufacturing plants via trucks to be converted into wood pellets, before being delivered to loading ports. Cutting fuel subsidies that logistic firms currently enjoy will push up operational and transport costs, inflating the overall price of biomass exports from Malaysia. The subsidy cut may result in a $5-10/t hike in prices for Malaysian biomass, several market participants told Argus.
This comes during a period of weak demand for Malaysian PKS, because prices of Indonesian PKS have fallen since the start of June to almost level with that of Malaysian products. Buyers are switching to Indonesian PKS because it has higher calorific value and quality.
Meanwhile, demand for Malaysian wood pellets has been gradually increasing in 2025 because of higher buying interest from major wood-pellet consuming countries like South Korea and Japan, who are diversifying their sources. But higher prices caused by the reduction in fuel subsidies could still weigh on demand for Malaysian biomass in the coming months.
By Joshua Sim/ Argus Media
---------
Indonesia expects to sign free trade deal with Russia-led union this year, minister says
JAKARTA, June 20 (Reuters) - Indonesia expects to sign a free trade agreement with the Russian-led Eurasian Economic Union (EAEU) this year in a move likely to boost demand for its commodity exports, its senior economic minister said in a statement released on Friday.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the agreement would open up new opportunities for commodities including crude palm oil, coffee and natural rubber.
Both parties announced on Thursday they had completed substantive talks for the agreement.
"I hope both parties can immediately follow this up by completing all the necessary stages of the process so that this agreement can be signed this year," Airlangga said.
As of March, the value of trade between Indonesia and the EAEU stood at $1.6 billion, 85% more than the same period last year, Indonesia's coordinating ministry for economic affairs said.
The EAEU is already one of Indonesia's biggest palm oil buyers, with imports valued at $544.64 million in 2023. The EAEU's main exports to the Southeast Asian nation include fertilisers and ferro-alloys.
The completion of Indonesia-EAEU FTA talks was announced on Thursday during President Prabowo Subianto's visit to Russia this week for a meeting with Russian President Vladimir Putin.
The EAEU has five members: Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. Reuters
---------
Pertamina and ReNikola partner to develop biogas projects in Indonesia
Indonesian state-owned energy company Pertamina, through its subsidiary PT Pertamina Gas (Pertagas), has signed a memorandum of understanding (MoU) with Malaysian renewable energy developer reNIKOLA Holdings.
The companies will collaborate on the development of biogas and biomethane projects in Indonesia.
The partnership aims to convert organic waste, particularly from palm oil production, into renewable gas for local and regional energy supply.
The agreement was formalised during the Pipelines and Energy Summit in Jakarta.
Under the MoU, the companies will jointly explore opportunities to build and operate biogas facilities in Sumatra and Kalimantan, two regions with significant palm oil processing activity and existing infrastructure challenges.
The planned facilities will use palm oil mill effluent (POME) and other organic waste streams to produce biogas, which will then be upgraded into biomethane and distributed through Pertagas’s pipeline network.
Pertagas President Director Gamal Imam Santoso said the partnership reflects Pertamina's ongoing commitment to expanding the use of alternative energy sources and decarbonising Indonesia’s energy mix.
He noted that the collaboration aligns well with Pertagas’s infrastructure capabilities and reNIKOLA’s experience in renewable project development, especially in compressed biogas systems.
Dr Mohd Amran Mohd Yusof, CEO of reNIKOLA Primer Energi, the company’s Indonesian unit, highlighted that the joint projects are designed to create new energy options for communities in remote and semi-rural areas.
He added that leveraging biogas production from palm oil waste could simultaneously advance environmental goals and support economic development in agricultural regions.
The MoU builds on recent regional momentum in biogas development.
In May 2025, reNIKOLA signed a similar agreement with Japan’s Sumitomo Corporation, targeting biomethane production in both Malaysia and Indonesia.
Earlier in the year, the company also entered into a build-own-operate-transfer agreement for a compressed biogas facility in North Sumatra, representing a US$6 million investment with the potential to offset approximately 40,000 tonnes of CO₂ emissions annually.
reNIKOLA has publicly committed to investing over US$240 million to develop as many as 40 compressed biomethane projects across Indonesia in the coming years.
The initiative is part of a broader strategy to contribute to the country’s goal of reaching 26 percent renewable energy in its national mix by 2030.
Although regulatory and logistical challenges remain - particularly around feedstock sourcing, permitting and integration with national gas infrastructure - both parties expressed confidence that this partnership represents a meaningful step forward in Indonesia’s renewable energy transition Bioenergy News
---------
Malaysian biomass transport cost to rise on subsidy cut
The cost of transporting biomass products could surge in Malaysia in the second half of 2025 because of fuel subsidy cuts by the government, potentially pushing up market prices.
The Malaysian government is expected to reduce petrol and diesel subsidies in July, according to market sources. Malaysia first announced plans to reduce fuel subsidies in October 2024, mainly targeting businesses, high income earners, and foreigners, with the subsidy to be removed entirely for these groups. This will inevitably lead to rising costs of procuring biomass in Malaysia, namely palm kernel shells (PKS) and wood pellets.
PKS collection takes place at crude palm oil (CPO) mills, and the cargoes are then loaded on trucks, transported inland to loading ports, and exported to key buyers such as Japan. Wood residue is also sent to pellet manufacturing plants via trucks to be converted into wood pellets, before being delivered to loading ports. Cutting fuel subsidies that logistic firms currently enjoy will push up operational and transport costs, inflating the overall price of biomass exports from Malaysia. The subsidy cut may result in a $5-10/t hike in prices for Malaysian biomass, several market participants told Argus.
This comes during a period of weak demand for Malaysian PKS, because prices of Indonesian PKS have fallen since the start of June to almost level with that of Malaysian products. Buyers are switching to Indonesian PKS because it has higher calorific value and quality.
Meanwhile, demand for Malaysian wood pellets has been gradually increasing in 2025 because of higher buying interest from major wood-pellet consuming countries like South Korea and Japan, who are diversifying their sources. But higher prices caused by the reduction in fuel subsidies could still weigh on demand for Malaysian biomass in the coming months.
By Joshua Sim/ Argus Media
---------
June 19, 2025
Asset Owners With $9.5 Trillion Call for Stopping Deforestation
A coalition of pension funds and insurance companies holding a combined $9.5 trillion of assets has called on investors to ensure their portfolios aren’t supporting or enabling deforestation.
The Net-Zero Asset Owner Alliance, whose signatories include Allianz SE and the California Public Employees’ Retirement System, said in a report published Wednesday that investors should make certain they have a firm grasp of their exposure to deforestation and take steps to “phase out” any harms to forests stemming from their investments in commodities such as beef, cocoa and palm oil by 2030.
The clearing of the world’s forests, which continues at an alarming pace despite global commitments to halt the practice, is a major contributor to global warming. In November, financing forest protection will be a central theme at the United Nations COP30 climate summit in Brazil.
Tamsin Ballard, chief investor initiatives officer at the Principles for Responsible Investment, which co-convened the NZAOA, said in an interview that the group’s new report is intended to highlight “the absolute linkage between climate change and deforestation.” For investors, there’s a clear fiduciary duty to identify the associated risks, she said.
“It’s drawing the pieces together to say, ‘hey, come on, investors can act, there’s enough on the table to be working on this,'” Ballard said. “Let’s not forget the costs and implications if we don’t address this.”
The NZAOA said investors are exposed to transition and physical risks via their investments, services and loans to companies with so-called forest-risk commodities in their operations and supply chains. To mitigate these risks, investors should assess their exposure to deforestation and accompanying human-rights abuses, with a particular focus on the value chains of forest-risk commodities, including beef, coffee, soya, palm oil, rubber and timber.
Investors should use “reasonable efforts” to phase out deforestation associated with forest-risk commodities in their portfolios by 2030, NZAOA said. They should take steps such as engaging directly with portfolio companies and policymakers, and issuing reports on the progress they’re making.
“Forests have an outsize positive influence on protecting our planetary boundaries and securing economic prosperity,” said Jan Kaeraa Rasmussen, head of sustainability at PensionDanmark. “Conversely, failing to safeguard these ecosystems will be highly destructive, not only to our forests, but to our financial markets.” Insurance Journal
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Brazilian firm Grupo BBF behind SAF plan found growing oil palm on deforested Amazon land
Discovery of illegal palm crops comes as Grupo BBF grapples with financial problems sparked by warnings over its human rights record
Located in the heart of the Amazon, it has been billed as Brazil’s first sustainable aviation fuel (SAF) project, but the palm oil producer behind a planned biorefinery in Manaus is now grappling with a financial crisis triggered by concern over possible rights abuses.
Reporting in the region by Brazilian news outlet InfoAmazonia in partnership with Climate Home News, has also found that the company – São Paulo-based Brasil BioFuels (Grupo BBF) – is growing oil palm on three areas subject to sanctions by Brazil’s Ibama environmental agency over illegal deforestation.
The embargoed plots lie in São João da Baliza, a sparsely populated district strung along the highway where former grazing pasture and biodiversity-rich scrubland have steadily been replaced by neat rows of oil palms. Signs hanging on fences say the crop will be used to make SAF.
Aviation’s Green Dream: Read our investigative series on Sustainable Aviation Fuel
While many locals living in the district’s towns welcome the jobs and economic boost provided by BBF’s palm plantations, Indigenous people and environmentalists see them as a threat to nature, traditional ways of life and the rainforest.
“If these areas are completely replaced by crops for biofuel production, we will lose unique species, many of which are still little known to science,” said Lucas Ferrante, a researcher from the zoology postgraduate programme at the Federal University of Amazonas (UFAM).
BBF, which announced its plans for the Manaus SAF project back in 2022, makes much of the fact that – in line with Brazil’s strict environmental laws – it only grows oil palm on land that was degraded before 2007, rather than freshly deforested land.
Stressing the company’s green credentials in an interview with Brazilian newspaper Valor Econômico last year, CEO Milton Steagall said the firm – which grows palm on about 75,000 hectares (185,000 acres) in the northern Amazon states of Pará and Roraima – “only cultivates the plant in the areas permitted by law”.
“Our sustainable palm cultivation recovers areas already degraded by deforestation and contributes to keeping the Amazon rainforest standing,” he said. Climate Change News
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Record seizure of 11.8 trillion rupiah from Wilmar marks Indonesia’s deepening crackdown on palm oil graft
The case also shows the challenges multinational companies face in maintaining governance and ethical standards across jurisdictions
[JAKARTA] The Indonesian authorities’ seizure of 11.8 trillion rupiah (S$928 million) from agri-giant Wilmar Group is not only the country’s largest asset confiscation, but also unprecedented for the company voluntarily handing the amount over in cash – a move legal experts say enables prosecutors to sidestep the complexities of liquidating seized property.
The move throws a spotlight on Jakarta’s stepped-up efforts to root out graft in the palm oil sector, following allegations of misconduct during a severe shortage of cooking oil in late 2021 to early 2022, which exposed governance lapses in one of Indonesia’s most vital industries.
Harli Siregar, the spokesperson for the Attorney-General’s Office (AGO), told The Business Times: “This was the largest seizure of funds in the history of ongoing cases.” More at Business Times
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Inside Wilmar’s graft probe: How a cooking oil crisis led to a multitrillion rupiah corruption scandal
The group stands accused of earning unauthorised profits by evading state-imposed export controls during a nationwide palm oil shortage
[SINGAPORE] Indonesian authorities in late May seized 11.8 trillion rupiah (S$928 million) from global palm oil company Wilmar : F34 -0.68% as part of an ongoing corruption case involving allegations of bribery to obtain palm oil export permits in 2022.
The company, founded by Singaporean tycoon Kuok Khoon Hong, stands accused of earning unauthorised profits by evading state-imposed export controls that sought to curb a cooking oil crisis and domestic palm oil shortage that rocked Indonesia in 2021 and 2022.
Wilmar was initially acquitted by a lower court in March, but the case is back in the limelight as the Indonesian Supreme Court reviews the earlier ruling.
The Business Times traces the events that led up to Wilmar’s corruption probe and its multitrillion rupiah asset seizure.
Jan 18, 2022: Indonesian officials announce that palm oil exporters will be required to obtain permits for exports and to declare how much palm oil they plan to sell domestically.
Jan 19, 2022: A cap limiting cooking oil prices to 14,000 rupiah per litre takes effect. The move is part of government efforts to curb the rise in domestic cooking oil prices, which had shot up as much as 40 per cent from a year earlier, in line with a global palm oil price surge. More at Business Times
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PZ Cussons Sells $70M Stake in Nigerian Palm Oil to Wilmar
PZ Cussons Plc has reached an agreement to sell its 50 per cent stake in PZ Wilmar Limited to its joint venture partner, Wilmar International Limited, for a cash consideration of $70 million.
This move marks PZ Cussons’ complete divestment from the Nigerian palm oil business it co-founded in 2010.
The transaction is contingent on regulatory approvals and is anticipated to conclude by the last quarter of 2025.
Upon finalisation, Wilmar International will assume full ownership of PZ Wilmar, the producer of well-known household cooking oil brands like Mamador and Devon King’s. A statement released on Wednesday, June 18, confirmed the definitive terms of the sale.
Jonathan Myers, Chief Executive Officer of PZ Cussons Plc, commented on the development, acknowledging the “long-term and rewarding partnership” with Wilmar.
He extended gratitude to Wilmar’s leadership and PZ Wilmar employees for their contributions, stating that PZ Wilmar is now “in the best possible hands to build further on its market-leading position, while PZ Cussons continues to invest in and grow its core business.” News Central Africa
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Malaysia's CIMB Seeks to Reshape Global Palm Oil: ESG Currents
"Exiting or reducing financing for palm oil is something we're absolutely not trying to do. Instead we're trying to support sustainable palm oil, without deforestation and planting on peat or exploitation," says Luanne Sieh, group chief sustainability officer at Malaysia's CIMB Group. On this ESG Currents episode, Sieh and Conrad Tan, Bloomberg Intelligence ESG integration analyst for APAC, explore the bank's efforts guided by science to curb destructive practices and bad actors in the palm industry while supporting its key role in providing jobs, food security and dietary access in the developing world. They also discuss the importance of uplifting smallholders at risk of being cut out of global supply chains. Listen to this episode on Apple Podcasts and Spotify. This episode was recorded on May 30, 2025.
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Indian refiners cancel palm oil orders for July-Sept as prices surge
Indian refiners have cancelled orders for 65,000 metric tons of crude palm oil due to a sudden surge in Malaysian prices. This decision, impacting deliveries from July to September, was driven by refiners seeking to secure profits amidst market volatility.
Indian refiners cancelled orders for 65,000 metric tons of crude palm oil (CPO) scheduled for delivery from July to September following a sudden surge in benchmark Malaysian prices, four trade sources told Reuters.
Refiners in the world's largest palm oil importer cancelled the orders in the past three days after Malaysian palm oil futures rose more than 6%, hedging their risk against the prospect of falling prices by locking in a profit.
"There is a lot of volatility in the market. There was more margin in cancelling bought CPO than in importing, refining, and selling refined palm oil in the local market," said an Indian buyer who operates a refinery on the west coast and cancelled shipments for July delivery.
Read more at:
https://economictimes.indiatimes.com/news/economy/foreign-trade/indian-refiners-cancel-palm-oil-orders-for-july-sept-as-prices-surge/articleshow/121933262.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst ..
Asset Owners With $9.5 Trillion Call for Stopping Deforestation
A coalition of pension funds and insurance companies holding a combined $9.5 trillion of assets has called on investors to ensure their portfolios aren’t supporting or enabling deforestation.
The Net-Zero Asset Owner Alliance, whose signatories include Allianz SE and the California Public Employees’ Retirement System, said in a report published Wednesday that investors should make certain they have a firm grasp of their exposure to deforestation and take steps to “phase out” any harms to forests stemming from their investments in commodities such as beef, cocoa and palm oil by 2030.
The clearing of the world’s forests, which continues at an alarming pace despite global commitments to halt the practice, is a major contributor to global warming. In November, financing forest protection will be a central theme at the United Nations COP30 climate summit in Brazil.
Tamsin Ballard, chief investor initiatives officer at the Principles for Responsible Investment, which co-convened the NZAOA, said in an interview that the group’s new report is intended to highlight “the absolute linkage between climate change and deforestation.” For investors, there’s a clear fiduciary duty to identify the associated risks, she said.
“It’s drawing the pieces together to say, ‘hey, come on, investors can act, there’s enough on the table to be working on this,'” Ballard said. “Let’s not forget the costs and implications if we don’t address this.”
The NZAOA said investors are exposed to transition and physical risks via their investments, services and loans to companies with so-called forest-risk commodities in their operations and supply chains. To mitigate these risks, investors should assess their exposure to deforestation and accompanying human-rights abuses, with a particular focus on the value chains of forest-risk commodities, including beef, coffee, soya, palm oil, rubber and timber.
Investors should use “reasonable efforts” to phase out deforestation associated with forest-risk commodities in their portfolios by 2030, NZAOA said. They should take steps such as engaging directly with portfolio companies and policymakers, and issuing reports on the progress they’re making.
“Forests have an outsize positive influence on protecting our planetary boundaries and securing economic prosperity,” said Jan Kaeraa Rasmussen, head of sustainability at PensionDanmark. “Conversely, failing to safeguard these ecosystems will be highly destructive, not only to our forests, but to our financial markets.” Insurance Journal
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Brazilian firm Grupo BBF behind SAF plan found growing oil palm on deforested Amazon land
Discovery of illegal palm crops comes as Grupo BBF grapples with financial problems sparked by warnings over its human rights record
Located in the heart of the Amazon, it has been billed as Brazil’s first sustainable aviation fuel (SAF) project, but the palm oil producer behind a planned biorefinery in Manaus is now grappling with a financial crisis triggered by concern over possible rights abuses.
Reporting in the region by Brazilian news outlet InfoAmazonia in partnership with Climate Home News, has also found that the company – São Paulo-based Brasil BioFuels (Grupo BBF) – is growing oil palm on three areas subject to sanctions by Brazil’s Ibama environmental agency over illegal deforestation.
The embargoed plots lie in São João da Baliza, a sparsely populated district strung along the highway where former grazing pasture and biodiversity-rich scrubland have steadily been replaced by neat rows of oil palms. Signs hanging on fences say the crop will be used to make SAF.
Aviation’s Green Dream: Read our investigative series on Sustainable Aviation Fuel
While many locals living in the district’s towns welcome the jobs and economic boost provided by BBF’s palm plantations, Indigenous people and environmentalists see them as a threat to nature, traditional ways of life and the rainforest.
“If these areas are completely replaced by crops for biofuel production, we will lose unique species, many of which are still little known to science,” said Lucas Ferrante, a researcher from the zoology postgraduate programme at the Federal University of Amazonas (UFAM).
BBF, which announced its plans for the Manaus SAF project back in 2022, makes much of the fact that – in line with Brazil’s strict environmental laws – it only grows oil palm on land that was degraded before 2007, rather than freshly deforested land.
Stressing the company’s green credentials in an interview with Brazilian newspaper Valor Econômico last year, CEO Milton Steagall said the firm – which grows palm on about 75,000 hectares (185,000 acres) in the northern Amazon states of Pará and Roraima – “only cultivates the plant in the areas permitted by law”.
“Our sustainable palm cultivation recovers areas already degraded by deforestation and contributes to keeping the Amazon rainforest standing,” he said. Climate Change News
---------
Record seizure of 11.8 trillion rupiah from Wilmar marks Indonesia’s deepening crackdown on palm oil graft
The case also shows the challenges multinational companies face in maintaining governance and ethical standards across jurisdictions
[JAKARTA] The Indonesian authorities’ seizure of 11.8 trillion rupiah (S$928 million) from agri-giant Wilmar Group is not only the country’s largest asset confiscation, but also unprecedented for the company voluntarily handing the amount over in cash – a move legal experts say enables prosecutors to sidestep the complexities of liquidating seized property.
The move throws a spotlight on Jakarta’s stepped-up efforts to root out graft in the palm oil sector, following allegations of misconduct during a severe shortage of cooking oil in late 2021 to early 2022, which exposed governance lapses in one of Indonesia’s most vital industries.
Harli Siregar, the spokesperson for the Attorney-General’s Office (AGO), told The Business Times: “This was the largest seizure of funds in the history of ongoing cases.” More at Business Times
---------
Inside Wilmar’s graft probe: How a cooking oil crisis led to a multitrillion rupiah corruption scandal
The group stands accused of earning unauthorised profits by evading state-imposed export controls during a nationwide palm oil shortage
[SINGAPORE] Indonesian authorities in late May seized 11.8 trillion rupiah (S$928 million) from global palm oil company Wilmar : F34 -0.68% as part of an ongoing corruption case involving allegations of bribery to obtain palm oil export permits in 2022.
The company, founded by Singaporean tycoon Kuok Khoon Hong, stands accused of earning unauthorised profits by evading state-imposed export controls that sought to curb a cooking oil crisis and domestic palm oil shortage that rocked Indonesia in 2021 and 2022.
Wilmar was initially acquitted by a lower court in March, but the case is back in the limelight as the Indonesian Supreme Court reviews the earlier ruling.
The Business Times traces the events that led up to Wilmar’s corruption probe and its multitrillion rupiah asset seizure.
Jan 18, 2022: Indonesian officials announce that palm oil exporters will be required to obtain permits for exports and to declare how much palm oil they plan to sell domestically.
Jan 19, 2022: A cap limiting cooking oil prices to 14,000 rupiah per litre takes effect. The move is part of government efforts to curb the rise in domestic cooking oil prices, which had shot up as much as 40 per cent from a year earlier, in line with a global palm oil price surge. More at Business Times
---------
PZ Cussons Sells $70M Stake in Nigerian Palm Oil to Wilmar
PZ Cussons Plc has reached an agreement to sell its 50 per cent stake in PZ Wilmar Limited to its joint venture partner, Wilmar International Limited, for a cash consideration of $70 million.
This move marks PZ Cussons’ complete divestment from the Nigerian palm oil business it co-founded in 2010.
The transaction is contingent on regulatory approvals and is anticipated to conclude by the last quarter of 2025.
Upon finalisation, Wilmar International will assume full ownership of PZ Wilmar, the producer of well-known household cooking oil brands like Mamador and Devon King’s. A statement released on Wednesday, June 18, confirmed the definitive terms of the sale.
Jonathan Myers, Chief Executive Officer of PZ Cussons Plc, commented on the development, acknowledging the “long-term and rewarding partnership” with Wilmar.
He extended gratitude to Wilmar’s leadership and PZ Wilmar employees for their contributions, stating that PZ Wilmar is now “in the best possible hands to build further on its market-leading position, while PZ Cussons continues to invest in and grow its core business.” News Central Africa
---------
Malaysia's CIMB Seeks to Reshape Global Palm Oil: ESG Currents
"Exiting or reducing financing for palm oil is something we're absolutely not trying to do. Instead we're trying to support sustainable palm oil, without deforestation and planting on peat or exploitation," says Luanne Sieh, group chief sustainability officer at Malaysia's CIMB Group. On this ESG Currents episode, Sieh and Conrad Tan, Bloomberg Intelligence ESG integration analyst for APAC, explore the bank's efforts guided by science to curb destructive practices and bad actors in the palm industry while supporting its key role in providing jobs, food security and dietary access in the developing world. They also discuss the importance of uplifting smallholders at risk of being cut out of global supply chains. Listen to this episode on Apple Podcasts and Spotify. This episode was recorded on May 30, 2025.
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Indian refiners cancel palm oil orders for July-Sept as prices surge
Indian refiners have cancelled orders for 65,000 metric tons of crude palm oil due to a sudden surge in Malaysian prices. This decision, impacting deliveries from July to September, was driven by refiners seeking to secure profits amidst market volatility.
Indian refiners cancelled orders for 65,000 metric tons of crude palm oil (CPO) scheduled for delivery from July to September following a sudden surge in benchmark Malaysian prices, four trade sources told Reuters.
Refiners in the world's largest palm oil importer cancelled the orders in the past three days after Malaysian palm oil futures rose more than 6%, hedging their risk against the prospect of falling prices by locking in a profit.
"There is a lot of volatility in the market. There was more margin in cancelling bought CPO than in importing, refining, and selling refined palm oil in the local market," said an Indian buyer who operates a refinery on the west coast and cancelled shipments for July delivery.
Read more at:
https://economictimes.indiatimes.com/news/economy/foreign-trade/indian-refiners-cancel-palm-oil-orders-for-july-sept-as-prices-surge/articleshow/121933262.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst ..
June 17, 2025
Palm oil nations are struggling to balance environmental concerns with economic risks
Environmentalists have raised red flags about cultivating palm oil. Malaysia and Indonesia are addressing these concerns, but they risk damaging a major economic sector in doing so.
This article is part of our special report Palm Oil: Balancing sustainability, livelihoods, and global demand.
Palm oil cultivation, a cornerstone of the agricultural sectors in Malaysia and Indonesia - two of the world's largest producers - has been beset with controversies over the past two decades due to the indirect land use change that its cultivation can cause.
The governments of these two countries have faced a challenging task in addressing environmental and social concerns while not harming the economic actors who depend on palm oil for their livelihoods.
In Malaysia and Indonesia, smallholder farmers play a crucial role in the palm oil industry, often relying solely on this crop for their income. It provides a relatively affordable means of farming that can yield substantial income, especially for rural communities where alternative employment opportunities are limited.
Of the total land area used for palm oil cultivation, 42% is owned by smallholders, who account for 34% of Indonesian palm oil production. The palm oil sector also generates significant revenue, contributing billions of dollars to national economies annually.
It creates numerous jobs, directly in plantations and processing facilities, and indirectly through related industries such as transportation and retail. For many small-scale farmers, cultivating palm oil has become a pathway out of poverty, offering a stable income and improved standard of living. In Malaysia, palm oil accounts for around 5-7% of GDP.
Employment dynamics
The Indonesian Ministry of Agriculture estimates that as of 2024, oil palm plantations in that country have around 16.5 million workers. Of these workers, 9.7 million are employed directly in the palm oil value chain: 5,2 million as smallholders, 4.5 million working at state and private companies. The remaining 6.8 million are indirect workers working in the transportation of palm oil, or suppliers of plantations’ tools and equipment.
Diana Chalil, a professor at Universitas Sumatera Utara, says palm oil production contributes a substantial amount to Indonesia’s economy, and this amount has been growing over the past decade. Smallholders’ contribution, she notes, has been increasing over this time.
“This is the main income source for around 16.5 million Indonesian households, with each having an average of four to six members,” she says. “Most of them are in the rural areas, thus this industry supports changes the development of rural areas.”
“The total production values of the palm oil industry in 2023, both from the national and global market, are estimated at around $62.9 million,” she said. “In 2024, the palm oil export values reached around $10.8 billion, contributing more than 70% of the Indonesian agricultural export values.”
The reasons for the increase over the past decade are myriad, she notes. “The government increased the replanting funding for smallholders to improve their productivity by using the illegitimate seedlings. This also increased partnerships between smallholders and companies that provide Good Agricultural Practices training and supervision.”
Addressing the Controversies
While palm oil production brings economic benefits, it has also been the subject of widespread debate concerning deforestation, habitat loss, and social displacement. Critics argue that unsustainable farming practices have led to environmental degradation, threatening biodiversity and indigenous rights.
Nonetheless, many producers and governments are increasingly committed to sustainable practices.
Malaysia and Indonesia have both signed up to the United Nations Sustainable Development Goals, which set ambitious targets for 2030, both for increasing sustainability and eradicating poverty. Efforts to improve palm oil cultivation can address eradicating poverty (goal one), ensuring decent work and economic growth (goal eight), and promoting responsible consumption and production (goal 12).
For rural farmers in Malaysia and Indonesia, palm oil cultivation remains a critical livelihood. Its short cycle and relatively high productivity make it an effective tool for poverty reduction when managed sustainably.
But to meet the aspirations of the SDGs, the sector must adopt responsible practices. Certification schemes, environmental safeguards, and respect for indigenous rights are essential to ensure that economic gains do not come at the expense of ecological and social well-being.
What it would mean to lose it
Chalil says that losing the palm oil sector would have big economic consequences, and not just for Indonesia and Malaysia.
According to a report by Chain Reaction Research, the fast-moving consumer goods (FMCG) industry and retail generate 66% of the gross profit and 52% of the operating profit in the palm oil value chain.
“With more than 80% of the world market, losing this sector [in Indonesia and Malaysia] could also impact other countries that use palm oil as the raw materials,” says Chalil.
“The top five FMCGs use 3.4 million metric tons, or 6% of palm oil embedded in food, and contribute 11% of gross profit in the group.” Since Malaysia and Indonesia are major suppliers, their withdrawal from the global palm oil market could cause supply shortages, influencing global food prices and the availability of products containing palm oil.
This could also accelerate the search for alternative oils, with uncertain environmental and economic repercussions.
The immediate impact of losing palm oil would be a drastic reduction in income for farmers and workers involved in planting, harvesting, processing and distribution.
Smallholders, who often depend entirely on palm oil, would face unemployment and increased poverty. Urban and rural economies reliant on related industries, such as the manufacturing of oleochemicals (those derived industrially from animal or vegetable fats) and biodiesel, would also suffer.
Export revenue risk
The long-term effect would be the loss of export revenue. Both countries heavily depend on palm oil exports. A sudden loss would lead to a decline in foreign exchange earnings, affecting their trade balances and currency stability. This could increase their reliance on imports, impacting inflation and the cost of living. Many rural communities would experience increased poverty and displacement.
Though efforts are underway to diversify these economies away from commodities, palm oil remains a core pillar. Its absence could slow national economic growth, weaken farmer communities, and destabilise associated sectors like downstream processing, logistics, and research.
While the loss of palm oil would pose serious challenges in the short term, these countries could look towards diversification strategies, investing in other agricultural commodities, manufacturing, tourism or digital economies. However, such transitions take time and require substantial policy support, infrastructure and investment.
While sustainability concerns are prompting reforms within the industry, completely losing palm oil would significantly impact economic development, social stability, and the global supply chain. Balancing sustainable practices with economic reliance on palm oil remains will thus be important going forward.
[Edited By Brian Maguire | Euractiv's Advocacy Lab ]
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Easing off the green squeeze doesn’t make the EU a development hero
Delaying and simplifying regulations on deforestation is a limited help for emerging market exporters
It’s been a rare weekend without a shock-and-awe Donald Trump news announcement on trade, the main fare from the administration these days being an endless stream of wrong predictions that deals over the bogus “reciprocal tariffs” are going to happen at any minute. So let’s talk about something else. Today’s newsletter is on a topic that’s been brewing for a while, if that’s the right metaphor — the EU retreating from (“rationalising”, if you prefer) its various wheezes to impose more environmental and human rights standards on imports. Charted Waters, where we look at the data behind world trade, is on global oil prices.
Trade takes on a lighter shade of green
The EU loves, I mean loves, the idea that trade isn’t just about grubby mercantile gain but is also about exporting European values. Over the past decade, pressure from campaigners, sometimes bolstered by sneaky protectionism, has given European importers and hence foreign exporters a bunch of responsibilities, creating a grab-bag full of exciting new abbreviations.
Chief among them are CBAM, the carbon border adjustment mechanism to stop emissions-heavy imports undercutting carbon-taxed EU production; EUDR, the deforestation regulation that bans the sale of products, including palm oil, coffee and beef, raised on recently cleared land; and CSDDD, the corporate sustainability due diligence directive, which holds companies responsible for environmental and labour abuses in their global supply chains.
Whatever the intentions, they’ve all created a lot of bureaucracy and resentment, especially among low- and middle-income countries, which say they’re basically neo-imperialism in a progressive wrapper. To certify, say, an Indonesian smallholder oil palm grower, of whom there are several million, can mean an inspector armed with geolocation data has to turn up to each and every farm. (This at the behest of European countries that flattened their own forests centuries ago.)
Recently there’s been a rethink thanks to the apparent fragility of global trade, threats of punishment tariffs from Trump, who regards such standards as protectionism, and a general backlash against environmental regulations. The EU decided last year to delay the introduction of EUDR by one year until 2026, and in April issued new guidance which considerably simplified (some would say weakened) the regulation.
Recently French President Emmanuel Macron joined forces with Germany to argue for scrapping the due diligence directive, which at the least seems likely to end with it too being watered down. Given that France was one of the main progenitors, that’s quite the reversal.
Pragmatism but not partnership
So the EU has listened to developing countries’ concerns and a new era of mutual trade and prosperity can begin, right? Ish, verging on no. Lobbying from European business associations was almost certainly more influential in delaying and watering down the EUDR than protests from emerging markets (EM).
And, critically, as Jodie Keane from the ODI Global think-tank said in a recent letter to the FT, there’s little sign the EU has developed a joined-up policy towards trade and development, particularly given the damage climate change can wreak on growth.
If you’re in the right place, the view from some developing countries currently doesn’t look too bad. I talked recently to Odrek Rwabwogo, an economic adviser to Ugandan President Yoweri Museveni. Uganda has long exported unprocessed coffee beans to the EU and has struggled to move up the value chain, he says, because the big international coffee-roasting companies are reluctant to set up there.
The EUDR created a threat even to Uganda’s existing exports, but that seems to have diminished with the pushing back of deadlines and easing of compliance standards. “There’s not much noise any more on this from the EU and we hope it ends well,” Rwabwogo told me. “We don’t hear the demands for workshops and ultimata on deadlines that we were suffering from about six, seven months ago. Out of two million households that grow coffee, we now have around 970,000 that are [EUDR] compliant.”
Rwabwogo also says Ugandan agriculture luckily seems so far to have been spared the dislocations from floods and wildfires induced by climate change that have hit other coffee-producing countries. Although the big coffee processors still aren’t moving production to Uganda, the country has attracted some smaller ones. It has also diversified into other products, such as avocados for the European market, with the help of development assistance from the UK, traditionally a big aid donor. Exports have been boosted by direct flights to London, which restarted last month for the first time in a decade.
There are, however, big buts and missed opportunities. Complying with the EUDR doesn’t mean the EU is helping Uganda build a value chain. “The discussion is on traceability,” Rwabwogo says. “It’s very, very extractive. If the EU said it would leave 50 per cent of the value chain in our country, it wouldn’t need to order us to do something like the EUDR because it would be in our enlightened self-interest.”
Rwabwogo says there are no signs of aid drying up as yet. But the UK has savaged its overseas development assistance (ODA) budget to 0.3 per cent of gross national income from an already reduced 0.5 per cent, within which it dishonestly counts the costs of processing asylum seekers in Britain as aid. The EU has, in effect, redirected aid from supporting development in sub-Saharan African countries to aiding a horrendously abusive detention system for migrants in Libya and Tunisia.
European politicians still sometimes talk about partnership with developing countries in Africa, but usually it doesn’t mean much any more. Easing off on the EUDR is welcome to low- and middle-income countries, but imposing and then removing an obstacle to EM exports to Europe doesn’t constitute an enlightened use of trade to support development.
Charted waters
Global oil prices predictably shot up as Israel attacked Iran. But it’s worth noting that, unlike during previous episodes of war in the Middle East, fracking has made the US a net exporter of oil and gas, consequently changing its direct incentives to get heavily involved in the region.
Alan Beattie in FT
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Patanjali gets 1.5 mn palm oil seeds from Malaysian state agency under 5-year deal
Sawit Kinabalu Group, a Malaysian state agency, has supplied 1.5 million palm oil seeds to India's Patanjali Group under a five-year contract aimed at supporting India's domestic palm oil cultivation efforts. This deal marks the first time a Malaysian state agency has engaged in supplying palm oil seeds, aligning with India's goal to reduce import dependence.
Malaysian state agency Sawit Kinabalu Group said on Tuesday it has supplied 1.5 million palm oil seeds to Indian consumer goods firm Patanjali Group as part of a five-year contract ending in 2027.
Malaysia is one of the major suppliers of palm oil to India, but this marks the first time a state agency has struck a deal for supplying palm oil seeds.
The move comes as India encourages domestic cultivation of palm oil to reduce its import dependence.
The contract was signed by Sawit Kinabalu Group's seeds subsidiary, which has an annual capacity to process 10 million palm oil seeds.
"We have a five-year contract signed with Patanjali Group for supplying 4 million palm oil seeds. We have delivered 1.5 million seeds so far," said Zurainy, General Manager of the group's seeds unit. Economic Times
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US Senate bill would shrink tax credit for biofuels made from foreign feedstocks
WASHINGTON, June 16 (Reuters) - U.S. Senate Republicans on Monday proposed a tax bill that would extend a clean fuel tax credit through 2031, but trim 20% of the value of the credit for biofuels made from feedstocks produced outside of the United States.
The tax credit, established by former President Joe Biden's Inflation Reduction Act but not finalized during his tenure, could prove lucrative for oil and biofuel producers who can demonstrate lower carbon intensity of their fuels.
The House tax and spending bill passed in May also extends the tax credit, known as 45Z, through 2031, but bans most foreign feedstocks from being eligible for credits.
Both the House and Senate bills would exclude emissions generated from the expansion of agricultural land due to the growth of feedstocks like corn and soy, called indirect land use change, from the calculation of a biofuel's credit value.
That change would make it easier for corn-based ethanol to qualify for the credits.
But the requirement to calculate those indirect emissions was a key environmental guard rail of the original tax credit, said Sarah Lutz, senior climate campaigner at environmental group Friends of the Earth.
"This reckless proposal means dirtier fuel and higher food prices," Lutz said.
Both bills also make transportation fuels derived from farm animal manure eligible for the tax credit, a boost to biogas producers who argue that capturing methane from manure and other waste can help cut transportation emissions. Reuters
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AGO Seizes $728 Million from Wilmar in Palm Oil Graft Case
Jakarta. The Attorney General’s Office (AGO) has seized more than Rp 11.88 trillion (around $728 million) from five subsidiaries of Singapore-based agribusiness giant Wilmar Group in connection with a corruption case involving crude palm oil (CPO) export permits.
The seized funds were returned by the following companies: Multimas Nabati Asahan, Multi Nabati Sulawesi, Sinar Alam Permai, Wilmar Bioenergi Indonesia, and Wilmar Nabati Indonesia. The announcement was made Tuesday by Sutikno, Director of Prosecution at the AGO’s Special Crimes Unit.
In a dramatic display of law enforcement, the AGO showcased the confiscated money—piles of Rp 100,000 banknotes stacked high around a table where eight AGO officials sat—during a press conference at its Special Crimes Unit headquarters in Jakarta. The companies handed over the Rp 11.8 trillion as restitution for the alleged damage to state finances and the national economy.
The case centers on alleged abuse of export permits during a 2022 government-imposed ban on palm oil shipments, enacted to address a domestic cooking oil shortage. Prosecutors charged the companies under Indonesia’s anti-corruption law, accusing them of reaping illegal profits during the restriction period.
Despite these allegations, the Central Jakarta Corruption Court in March acquitted the five companies of all charges. The AGO has since appealed the ruling to the Supreme Court, where the case remains under review.
An audit by the Financial and Development Supervisory Agency (BPKP), along with a separate study by Gadjah Mada University’s Faculty of Economics and Business, estimated state losses at Rp 11.88 trillion, including direct financial damage and broader economic losses.
Breakdowns of the estimated losses per company include: Read more at Jakarta Globe
Palm oil nations are struggling to balance environmental concerns with economic risks
Environmentalists have raised red flags about cultivating palm oil. Malaysia and Indonesia are addressing these concerns, but they risk damaging a major economic sector in doing so.
This article is part of our special report Palm Oil: Balancing sustainability, livelihoods, and global demand.
Palm oil cultivation, a cornerstone of the agricultural sectors in Malaysia and Indonesia - two of the world's largest producers - has been beset with controversies over the past two decades due to the indirect land use change that its cultivation can cause.
The governments of these two countries have faced a challenging task in addressing environmental and social concerns while not harming the economic actors who depend on palm oil for their livelihoods.
In Malaysia and Indonesia, smallholder farmers play a crucial role in the palm oil industry, often relying solely on this crop for their income. It provides a relatively affordable means of farming that can yield substantial income, especially for rural communities where alternative employment opportunities are limited.
Of the total land area used for palm oil cultivation, 42% is owned by smallholders, who account for 34% of Indonesian palm oil production. The palm oil sector also generates significant revenue, contributing billions of dollars to national economies annually.
It creates numerous jobs, directly in plantations and processing facilities, and indirectly through related industries such as transportation and retail. For many small-scale farmers, cultivating palm oil has become a pathway out of poverty, offering a stable income and improved standard of living. In Malaysia, palm oil accounts for around 5-7% of GDP.
Employment dynamics
The Indonesian Ministry of Agriculture estimates that as of 2024, oil palm plantations in that country have around 16.5 million workers. Of these workers, 9.7 million are employed directly in the palm oil value chain: 5,2 million as smallholders, 4.5 million working at state and private companies. The remaining 6.8 million are indirect workers working in the transportation of palm oil, or suppliers of plantations’ tools and equipment.
Diana Chalil, a professor at Universitas Sumatera Utara, says palm oil production contributes a substantial amount to Indonesia’s economy, and this amount has been growing over the past decade. Smallholders’ contribution, she notes, has been increasing over this time.
“This is the main income source for around 16.5 million Indonesian households, with each having an average of four to six members,” she says. “Most of them are in the rural areas, thus this industry supports changes the development of rural areas.”
“The total production values of the palm oil industry in 2023, both from the national and global market, are estimated at around $62.9 million,” she said. “In 2024, the palm oil export values reached around $10.8 billion, contributing more than 70% of the Indonesian agricultural export values.”
The reasons for the increase over the past decade are myriad, she notes. “The government increased the replanting funding for smallholders to improve their productivity by using the illegitimate seedlings. This also increased partnerships between smallholders and companies that provide Good Agricultural Practices training and supervision.”
Addressing the Controversies
While palm oil production brings economic benefits, it has also been the subject of widespread debate concerning deforestation, habitat loss, and social displacement. Critics argue that unsustainable farming practices have led to environmental degradation, threatening biodiversity and indigenous rights.
Nonetheless, many producers and governments are increasingly committed to sustainable practices.
Malaysia and Indonesia have both signed up to the United Nations Sustainable Development Goals, which set ambitious targets for 2030, both for increasing sustainability and eradicating poverty. Efforts to improve palm oil cultivation can address eradicating poverty (goal one), ensuring decent work and economic growth (goal eight), and promoting responsible consumption and production (goal 12).
For rural farmers in Malaysia and Indonesia, palm oil cultivation remains a critical livelihood. Its short cycle and relatively high productivity make it an effective tool for poverty reduction when managed sustainably.
But to meet the aspirations of the SDGs, the sector must adopt responsible practices. Certification schemes, environmental safeguards, and respect for indigenous rights are essential to ensure that economic gains do not come at the expense of ecological and social well-being.
What it would mean to lose it
Chalil says that losing the palm oil sector would have big economic consequences, and not just for Indonesia and Malaysia.
According to a report by Chain Reaction Research, the fast-moving consumer goods (FMCG) industry and retail generate 66% of the gross profit and 52% of the operating profit in the palm oil value chain.
“With more than 80% of the world market, losing this sector [in Indonesia and Malaysia] could also impact other countries that use palm oil as the raw materials,” says Chalil.
“The top five FMCGs use 3.4 million metric tons, or 6% of palm oil embedded in food, and contribute 11% of gross profit in the group.” Since Malaysia and Indonesia are major suppliers, their withdrawal from the global palm oil market could cause supply shortages, influencing global food prices and the availability of products containing palm oil.
This could also accelerate the search for alternative oils, with uncertain environmental and economic repercussions.
The immediate impact of losing palm oil would be a drastic reduction in income for farmers and workers involved in planting, harvesting, processing and distribution.
Smallholders, who often depend entirely on palm oil, would face unemployment and increased poverty. Urban and rural economies reliant on related industries, such as the manufacturing of oleochemicals (those derived industrially from animal or vegetable fats) and biodiesel, would also suffer.
Export revenue risk
The long-term effect would be the loss of export revenue. Both countries heavily depend on palm oil exports. A sudden loss would lead to a decline in foreign exchange earnings, affecting their trade balances and currency stability. This could increase their reliance on imports, impacting inflation and the cost of living. Many rural communities would experience increased poverty and displacement.
Though efforts are underway to diversify these economies away from commodities, palm oil remains a core pillar. Its absence could slow national economic growth, weaken farmer communities, and destabilise associated sectors like downstream processing, logistics, and research.
While the loss of palm oil would pose serious challenges in the short term, these countries could look towards diversification strategies, investing in other agricultural commodities, manufacturing, tourism or digital economies. However, such transitions take time and require substantial policy support, infrastructure and investment.
While sustainability concerns are prompting reforms within the industry, completely losing palm oil would significantly impact economic development, social stability, and the global supply chain. Balancing sustainable practices with economic reliance on palm oil remains will thus be important going forward.
[Edited By Brian Maguire | Euractiv's Advocacy Lab ]
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Easing off the green squeeze doesn’t make the EU a development hero
Delaying and simplifying regulations on deforestation is a limited help for emerging market exporters
It’s been a rare weekend without a shock-and-awe Donald Trump news announcement on trade, the main fare from the administration these days being an endless stream of wrong predictions that deals over the bogus “reciprocal tariffs” are going to happen at any minute. So let’s talk about something else. Today’s newsletter is on a topic that’s been brewing for a while, if that’s the right metaphor — the EU retreating from (“rationalising”, if you prefer) its various wheezes to impose more environmental and human rights standards on imports. Charted Waters, where we look at the data behind world trade, is on global oil prices.
Trade takes on a lighter shade of green
The EU loves, I mean loves, the idea that trade isn’t just about grubby mercantile gain but is also about exporting European values. Over the past decade, pressure from campaigners, sometimes bolstered by sneaky protectionism, has given European importers and hence foreign exporters a bunch of responsibilities, creating a grab-bag full of exciting new abbreviations.
Chief among them are CBAM, the carbon border adjustment mechanism to stop emissions-heavy imports undercutting carbon-taxed EU production; EUDR, the deforestation regulation that bans the sale of products, including palm oil, coffee and beef, raised on recently cleared land; and CSDDD, the corporate sustainability due diligence directive, which holds companies responsible for environmental and labour abuses in their global supply chains.
Whatever the intentions, they’ve all created a lot of bureaucracy and resentment, especially among low- and middle-income countries, which say they’re basically neo-imperialism in a progressive wrapper. To certify, say, an Indonesian smallholder oil palm grower, of whom there are several million, can mean an inspector armed with geolocation data has to turn up to each and every farm. (This at the behest of European countries that flattened their own forests centuries ago.)
Recently there’s been a rethink thanks to the apparent fragility of global trade, threats of punishment tariffs from Trump, who regards such standards as protectionism, and a general backlash against environmental regulations. The EU decided last year to delay the introduction of EUDR by one year until 2026, and in April issued new guidance which considerably simplified (some would say weakened) the regulation.
Recently French President Emmanuel Macron joined forces with Germany to argue for scrapping the due diligence directive, which at the least seems likely to end with it too being watered down. Given that France was one of the main progenitors, that’s quite the reversal.
Pragmatism but not partnership
So the EU has listened to developing countries’ concerns and a new era of mutual trade and prosperity can begin, right? Ish, verging on no. Lobbying from European business associations was almost certainly more influential in delaying and watering down the EUDR than protests from emerging markets (EM).
And, critically, as Jodie Keane from the ODI Global think-tank said in a recent letter to the FT, there’s little sign the EU has developed a joined-up policy towards trade and development, particularly given the damage climate change can wreak on growth.
If you’re in the right place, the view from some developing countries currently doesn’t look too bad. I talked recently to Odrek Rwabwogo, an economic adviser to Ugandan President Yoweri Museveni. Uganda has long exported unprocessed coffee beans to the EU and has struggled to move up the value chain, he says, because the big international coffee-roasting companies are reluctant to set up there.
The EUDR created a threat even to Uganda’s existing exports, but that seems to have diminished with the pushing back of deadlines and easing of compliance standards. “There’s not much noise any more on this from the EU and we hope it ends well,” Rwabwogo told me. “We don’t hear the demands for workshops and ultimata on deadlines that we were suffering from about six, seven months ago. Out of two million households that grow coffee, we now have around 970,000 that are [EUDR] compliant.”
Rwabwogo also says Ugandan agriculture luckily seems so far to have been spared the dislocations from floods and wildfires induced by climate change that have hit other coffee-producing countries. Although the big coffee processors still aren’t moving production to Uganda, the country has attracted some smaller ones. It has also diversified into other products, such as avocados for the European market, with the help of development assistance from the UK, traditionally a big aid donor. Exports have been boosted by direct flights to London, which restarted last month for the first time in a decade.
There are, however, big buts and missed opportunities. Complying with the EUDR doesn’t mean the EU is helping Uganda build a value chain. “The discussion is on traceability,” Rwabwogo says. “It’s very, very extractive. If the EU said it would leave 50 per cent of the value chain in our country, it wouldn’t need to order us to do something like the EUDR because it would be in our enlightened self-interest.”
Rwabwogo says there are no signs of aid drying up as yet. But the UK has savaged its overseas development assistance (ODA) budget to 0.3 per cent of gross national income from an already reduced 0.5 per cent, within which it dishonestly counts the costs of processing asylum seekers in Britain as aid. The EU has, in effect, redirected aid from supporting development in sub-Saharan African countries to aiding a horrendously abusive detention system for migrants in Libya and Tunisia.
European politicians still sometimes talk about partnership with developing countries in Africa, but usually it doesn’t mean much any more. Easing off on the EUDR is welcome to low- and middle-income countries, but imposing and then removing an obstacle to EM exports to Europe doesn’t constitute an enlightened use of trade to support development.
Charted waters
Global oil prices predictably shot up as Israel attacked Iran. But it’s worth noting that, unlike during previous episodes of war in the Middle East, fracking has made the US a net exporter of oil and gas, consequently changing its direct incentives to get heavily involved in the region.
Alan Beattie in FT
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Patanjali gets 1.5 mn palm oil seeds from Malaysian state agency under 5-year deal
Sawit Kinabalu Group, a Malaysian state agency, has supplied 1.5 million palm oil seeds to India's Patanjali Group under a five-year contract aimed at supporting India's domestic palm oil cultivation efforts. This deal marks the first time a Malaysian state agency has engaged in supplying palm oil seeds, aligning with India's goal to reduce import dependence.
Malaysian state agency Sawit Kinabalu Group said on Tuesday it has supplied 1.5 million palm oil seeds to Indian consumer goods firm Patanjali Group as part of a five-year contract ending in 2027.
Malaysia is one of the major suppliers of palm oil to India, but this marks the first time a state agency has struck a deal for supplying palm oil seeds.
The move comes as India encourages domestic cultivation of palm oil to reduce its import dependence.
The contract was signed by Sawit Kinabalu Group's seeds subsidiary, which has an annual capacity to process 10 million palm oil seeds.
"We have a five-year contract signed with Patanjali Group for supplying 4 million palm oil seeds. We have delivered 1.5 million seeds so far," said Zurainy, General Manager of the group's seeds unit. Economic Times
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US Senate bill would shrink tax credit for biofuels made from foreign feedstocks
WASHINGTON, June 16 (Reuters) - U.S. Senate Republicans on Monday proposed a tax bill that would extend a clean fuel tax credit through 2031, but trim 20% of the value of the credit for biofuels made from feedstocks produced outside of the United States.
The tax credit, established by former President Joe Biden's Inflation Reduction Act but not finalized during his tenure, could prove lucrative for oil and biofuel producers who can demonstrate lower carbon intensity of their fuels.
The House tax and spending bill passed in May also extends the tax credit, known as 45Z, through 2031, but bans most foreign feedstocks from being eligible for credits.
Both the House and Senate bills would exclude emissions generated from the expansion of agricultural land due to the growth of feedstocks like corn and soy, called indirect land use change, from the calculation of a biofuel's credit value.
That change would make it easier for corn-based ethanol to qualify for the credits.
But the requirement to calculate those indirect emissions was a key environmental guard rail of the original tax credit, said Sarah Lutz, senior climate campaigner at environmental group Friends of the Earth.
"This reckless proposal means dirtier fuel and higher food prices," Lutz said.
Both bills also make transportation fuels derived from farm animal manure eligible for the tax credit, a boost to biogas producers who argue that capturing methane from manure and other waste can help cut transportation emissions. Reuters
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AGO Seizes $728 Million from Wilmar in Palm Oil Graft Case
Jakarta. The Attorney General’s Office (AGO) has seized more than Rp 11.88 trillion (around $728 million) from five subsidiaries of Singapore-based agribusiness giant Wilmar Group in connection with a corruption case involving crude palm oil (CPO) export permits.
The seized funds were returned by the following companies: Multimas Nabati Asahan, Multi Nabati Sulawesi, Sinar Alam Permai, Wilmar Bioenergi Indonesia, and Wilmar Nabati Indonesia. The announcement was made Tuesday by Sutikno, Director of Prosecution at the AGO’s Special Crimes Unit.
In a dramatic display of law enforcement, the AGO showcased the confiscated money—piles of Rp 100,000 banknotes stacked high around a table where eight AGO officials sat—during a press conference at its Special Crimes Unit headquarters in Jakarta. The companies handed over the Rp 11.8 trillion as restitution for the alleged damage to state finances and the national economy.
The case centers on alleged abuse of export permits during a 2022 government-imposed ban on palm oil shipments, enacted to address a domestic cooking oil shortage. Prosecutors charged the companies under Indonesia’s anti-corruption law, accusing them of reaping illegal profits during the restriction period.
Despite these allegations, the Central Jakarta Corruption Court in March acquitted the five companies of all charges. The AGO has since appealed the ruling to the Supreme Court, where the case remains under review.
An audit by the Financial and Development Supervisory Agency (BPKP), along with a separate study by Gadjah Mada University’s Faculty of Economics and Business, estimated state losses at Rp 11.88 trillion, including direct financial damage and broader economic losses.
Breakdowns of the estimated losses per company include: Read more at Jakarta Globe
June 16, 2025
Indonesia and EU near major trade deal, promising zero tariffs on key exports
The Indonesian government has announced significant progress in finalizing a trade agreement with the European Union that could lead to zero tariffs on key Indonesian exports such as textiles, fishery products, footwear, and crude palm oil (CPO).
The agreement, officially known as the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU CEPA), is now 90 percent legally drafted, according to Coordinating Minister for the Economy Airlangga Hartarto.
“Indonesia hopes this can be fast-tracked. If all documents are finalized by September, ratification could be completed within a year in each country. However, full implementation can only occur once all 27 EU member states have ratified it,” Airlangga told a press conference in Jakarta on Friday, June 14, 2025.
He emphasized that the agreement’s enforcement cannot be done unilaterally − every EU member state must approve it based on their respective legal systems. The Indonesian government has already laid out a roadmap for the agreement’s implementation, beginning with domestic procedures in each country from September 2025 through Q2 2026.
The official signing is targeted between Q2 and Q3 of 2026, with Indonesia’s parliament expected to ratify it between Q2 and Q4 of 2026. Full implementation is projected to begin in Q1 of 2027.
On the same occasion, Director General of International Trade Negotiations at the Ministry of Trade, Djatmiko Bris Witjaksono, said that the EU has been committed to granting special tariff treatment for nearly all Indonesian goods once the deal is enacted.
Both parties have agreed to a broad liberalization of tariffs. Indonesia will reduce import duties on 97.75 percent of its national tariff lines, covering 98.14 percent of its imports from the EU. In return, the EU will offer duty-free access on 98.61 percent of its tariff lines, which will cover nearly 99 percent of Indonesian exports to the EU market.
“The EU will provide preferential treatment on around 98.61 percent of their total tariff lines. Essentially, 100 percent of Indonesia’s exports to the EU will enjoy special tariffs, with approximately 99 percent benefiting from zero tariffs. Some will be duty-free from day one, while others will follow in the second or third year. But eventually, God willing, they will all reach zero,” Djatmiko said on Friday, June 14, 2025.
Although tariff reductions will be phased in, nearly all Indonesian products will eventually be exempt from import duties. The government anticipates that the IEU CEPA could boost Indonesia’s exports to the EU by as much as 50 percent within three years of full implementation. This deal is expected to significantly enhance Indonesia’s trade competitiveness and deepen its economic ties with one of the world’s largest trading blocs. Indonesia Business Post
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Japan to Import 640,000 Tons of Indonesian Biomass Products to Meet Energy Needs
TEMPO.CO, Jakarta - Indonesian biomass products such as palm kernel shells and wood pellets were in high demand at the business forum organized by the Ministry of Trade in Osaka, Japan, on Wednesday, June 11, 2025. Japanese companies signed commitments to import 640 thousand tons of both commodities. The transaction value reached Rp1.04 trillion.
The Director General of National Export Development at the Ministry of Trade, Fajarini Puntodewi, stated that Japan needs these biomass products to meet their energy resources. Japan has set a target to make new passenger vehicles electric by 2035 to achieve net zero emissions by 2050.
"Therefore, the automotive industry in Japan must transition to renewable energy to support the shift towards electric vehicles and reduce greenhouse gas emissions," she said in a statement in Jakarta on Sunday, June 15, 2025, as quoted by Antara.
Puntodewi continued that renewable energy products derived from palm, such as palm kernel shells, empty fruit bunches, and oil palm trunks, have very low gas emissions. She noted that every ton of palm kernel shells used as fuel in factories can contribute to reducing carbon dioxide by 0.94 tons.
According to Puntodewi, the domestic demand for biomass products is still small, making exports a more profitable option. She cited that the current production of palm kernel shells is around 14 million tons, with 35 percent of the commodity's availability in the country being exported.
Indonesia's export of palm kernel shells to Japan currently reaches 4.5 million tons per year. The Ministry of Trade estimates that Japan's biomass market demand in 2025-2026 will increase to 7 million tons per year. Palm kernel shells and wood pellets are essential for Japan's needs.
Specifically for palm kernel shells, Puntodewi stated that they are not only used for vehicle fuel but can also be used for low carbon emission thermal power plant fuel, making it suitable for the industry. Furthermore, palm kernel shells are used as high-performance activated carbon that can be used to recover solvents, purify air, and clean water.
The Secretary General of the Indonesian Biomass Energy Producers Association (Aprebi), Dikki Akhmar, supports the Indonesian government's efforts to ensure that Sustainable Palm Oil (ISPO) palm kernel shell products are accepted by the Japanese government. He also advocates for more extensive socialization of the Timber Legality Verification System (SVLK). The SVLK plays a role in certifying biomass products from forests such as wood pellets and wood chips for export.
"The growing awareness of sustainable aspects and the increasing concept of green economy make many countries compete to present environmentally friendly products," said Dikki. Therefore, this is a golden opportunity for Indonesia to innovate and develop high-quality and standardized renewable energy products. Tempo
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Indonesia to strengthen ISPO for downstream industries
JAKARTA – The ministry of industry (Kemenperin) is drafting a ministerial regulation as an implementing regulation of the newly-issued presidential regulation (Perpres) No.16/2025 on certification of Indonesian Sustainable Palm Oil (ISPO) for Indonesia’s downstream palm oil industries. The expansion and improvement of the ISPO certification is expected to spur the development of palm oil industries in the country.
Kemenperin’s Agroindustry Director General Putu Juli Ardika said that his ministry is now in a process of drafting a ministerial regulation on technical guidelines of ISPO certification for downstream palm industries.
The ministerial regulation will function as an implementing regulation to the Perpres No.16/2025 on certification system of ISPO in Indonesia. “The Perpres has been issued. Now, we’re preparing its implementing regulation on the ISPO certification. It’s still under process,” said Putu.
He said that as part of efforts to strengthen the ISPO certification system, they are developing an information system of palm oil products and derivatives, which can provide real time information on products and transactions in domestic palm oil markets. “Hopefully, in the future that system will provide us with accurate and reliable data. We will be also able to help raising productivity of industrial companies. The system should also become an important instrument for realizing transparency and efficiency in the palm oil supply chain,” he said.
The ISPO certification is legally based on the law (UU) No.39/ 2014 on plantations, whose implementation is stipulated in Perpres No.44/ 2020 that has been revised with the Perpres No.16/2025.
Previously, Head of the Substance Group for Implementation and Supervision of Plantation Product Quality at the agriculture ministry (Kementan), Ratna Sariati said that ISPO certification stands as a system to ensure that palm oil businesses are properly conducted from the perspective of economy, socio-culture, environment, and prevailing regulations.
The policy revision covers the expansion of obligation of ISPO certification from just upstream to downstream, including the processing industry and bioenergy. “Based on the policy revision, ISPO certification is not only the responsibility of Kementan, but also Kemenperin for downstream palm products and ministry of energy and mineral resources (KESDM) for bioenergy,” she said.
The expansion of certification obligation is accompanied by institutional restructuration and new scheme of financing. “The certification of ISPO for growers can be financed through APBN (state budget), APBD (regional budget), and the Plantation Fund Management Board (BPDP),” she said. GAPKI
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How Malaysia’s palm oil industry is cultivating a greener tomorrow
Observed annually on June 5, World Environment Day is a pivotal global platform, with its recurring calls for individuals, communities and industries to rally together to solve pressing environmental challenges.
While this year’s theme casts the spotlight on plastic pollution, its overarching message is to safeguard our planet. Embracing the call for collective action, Malaysia’s palm oil sector has proactively embarked on a transformative journey, demonstrating unwavering commitment to environmental and climate stewardship.
Taking collective responsibility for the planet
The significance of Malaysia’s palm oil industry cannot be overstated. This is a sector that serves as a crucial economic backbone for the nation, not least its more than 450,000 smallholders. This means the industry does not only contribute a large percentage to Malaysia’s gross domestic product (GDP) and export earnings, but also directly supports the livelihoods of a vast number of rural families.
Crucially, this economic powerhouse is confronting its environmental responsibilities. Recognising the industry’s considerable environmental footprint, Malaysian plantation players have united to collectively take responsibility for the industry’s environmental impact and drive its sustainable transformation. This commitment echoes the sentiment expressed by British explorer and environmental activist Robert Swan, who famously said over a decade ago, “The greatest threat to our planet is the belief that someone else will save it.” This powerful truth resonates strongly even today, motivating the industry to adopt a more forward-thinking vision for the planet.
A pivotal effort is the mandatory Malaysian Sustainable Palm Oil (MSPO) certification scheme, now in its second iteration. With more stringent requirements, MSPO 2.0 is capable of meeting the deforestation free demands laid out by the European Union Deforestation Regulation (EUDR). For instance, MSPO 2.0 mandates that there will be no conversion of natural forests, protected areas, and High Conservation Value (HCV) areas into oil palm plantations after Dec 31, 2019 — a full year prior to the EUDR’s stipulation.
Actively tackling climate change
To curb their carbon footprint, some Malaysian palm oil players are implementing methane capture technologies. This innovative method manages biogas from palm oil mill effluent (POME), processing wastewater and converting it into renewable energy at facilities like Cenergi SEA’s Langkap Biogas Plant. Solid palm biomass offers similar potential.
During the April visit of Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani to the Cenergi Sua Betong Biogas Plant in Port Dickson, Negeri Sembilan, he highlighted that since January 2014, all new or expanding mills are required to install biogas capture systems. By December 2024, 170 (38%) of the 446 operating mills had implemented these facilities, surpassing the National Agricommodity Policy 2025 target of 155 mills. This contributed to a reduction of greenhouse gas (GHG) emissions by 4.9 million tonnes of carbon dioxide, he said.
These efforts align with Malaysia’s commitment to reach net zero GHG emissions by 2050, despite only contributing about 0.8% to global GHG. Initially articulated in the 12th Malaysia Plan (2021-2025), this commitment is reinforced by the National Energy Transition Roadmap (NETR). Still, the widespread adoption of methane capture has faced hurdles due to significant practical and financial challenges for mills, highlighting the need for stronger, collaborative government support.
According to Johari, Malaysia produced 63.5 million tonnes of POME in 2022, which could have generated 1.8 billion cu m of biogas. This is capable of producing an average of 1.22GW of energy per year.
Beyond cutting emissions
The industry’s commitment to sustainability extends beyond emission reduction. Beyond adherence to the stringent No Deforestation, No Peat, No Exploitation (NDPE) policy, palm oil players are actively stepping up their biodiversity conservation efforts, demonstrating a comprehensive approach to environmental stewardship.
For instance, Tawau-based Sabah Softwood Berhad (SSB) established a 1,067ha wildlife corridor in 2013 to connect fragmented forest areas. This 14km corridor actively links two major forest reserves, Ulu Kalumpang and Ulu Segama, facilitating safe passage for wildlife — particularly Borneo elephants — and significantly reducing human-wildlife conflict.
Similarly, IOI Corporation Berhad’s practices include conserving trees, flora and fauna in buffer zones and steep areas unsuitable for oil palm planting, and setting up a sanctuary for proboscis monkeys at one of its estates. IOI also conducts biodiversity studies of flora and fauna species across its plantations, having identified 337 flora and 227 fauna endemic species to date, and is a strategic partner in the Malua Wildlife Conservation Initiative.
Harnessing technology for positive change
To bolster its environmental and biodiversity protection efforts, the Malaysian palm oil industry is increasingly leveraging innovation and technology to make a difference. Digital traceability solutions — such as e-MSPO, a digital system that monitors the certification process, and MSPO Trace, a traceability system designed to track palm oil products along the supply chain — enhance supply chain transparency, which is vital for consumers and markets demanding sustainably sourced products. This transparency directly aids in verifying NDPE compliance.
Concurrently, plantations are embracing mechanisation and automation. These advancements are largely spearheaded by research and development facilitated by entities like MARCOP (Mechanisation and Automation Research Consortium of Oil Palm), which operates as a platform for government-industry collaboration offering matching grants to drive related research.
This shift towards drones, robots and sensors not only boosts operational efficiency but also plays a crucial role in reducing the environmental footprint of palm oil cultivation. SD Guthrie, for instance, utilises drones equipped with Global Positioning System (GPS) and artificial intelligence (AI) to apply fertilisers and pesticides precisely where needed. This approach substantially cuts the overall volume of chemicals used, thus preventing widespread contamination of soil and water and minimising harm to non-target flora and fauna. Meanwhile, Genting Plantations deploys drones to pinpoint fires in remote and inaccessible locations.
Painting a hopeful picture
On World Environment Day, Malaysia’s palm oil industry stands as a testament to collective action. The proactive steps taken — from its updated MSPO certification scheme to its commitment to transparency — underscore a clear vision for sustainability and demonstrates that economic growth and ecological responsibility can converge, cultivating a genuinely greener tomorrow. The Edge
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China-Malaysia joint lab for palm oil highlights growing tech partnership under BRI
The inaugural meeting of the China-Malaysia joint laboratory on oils and fats processing and safety, under the Belt and Road Initiative (BRI), was held recently, the Science and Technology Daily reported on Sunday. This first-of-its-kind laboratory between China and Malaysia within the BRI framework is expected to bolster the palm oil trade and enhance broader industrial cooperation between the two countries.
Palm oil is an important sector within the agricultural trade cooperation between China and Malaysia. Malaysia is one of the world's top producers of palm oil, while China has become an important export market for Malaysian palm oil. This trade not only bolsters the bilateral economy but also contributes positively to the stability and development of the global supply chain.
According to an article on the website of the Malaysian Palm Oil Council (MPOC), its CEO Belvinder Sron stated that in 2023, Malaysia exported 3.05 million tons of palm products to China, predominantly palm oil and oleochemicals. Collaboration between the two countries spans the entire industry chain, from crude palm oil exports to downstream processing.
The establishment of the joint laboratory is expected to enhance the ability to address the technical challenges in the ongoing process of industrial development. In recent years, as the industry has evolved, there has been a continuous need for technological innovation to meet the ever-changing demands of the market. For instance, with the Chinese market becoming more sophisticated and its consumers increasingly prioritizing health, the MPOC reportedly anticipates a shift in demand from traditional palm oil products, such as RBD palm olein and palm stearin, to higher-value alternatives. These include carotene-rich red palm oil, specialty fats, and hydrotreated vegetable oil, which align with emerging demand trends.
The technological collaboration between China and Malaysia is poised to propel advancements in palm oil technology. According to the Science and Technology Daily, the establishment of the joint laboratory will leverage biomanufacturing technologies to boost the nutritional value and add industrial value to palm oil. This initiative is designed to bolster Malaysia's sustainable development and enhance China's food oil security and public health. Moreover, it will strengthen the partnership between China and Malaysia in edible oil processing and safety, establishing an international platform for scientific and technological cooperation and exchanges. This will promote international collaboration and foster talent development between the two countries.
In an interview earlier this year with the Xinhua News Agency, Malaysia's Deputy Minister of Plantation and Commodities, Datuk Chan Foong Hin, stated that China has been Malaysia's largest trading partner for 16 consecutive years. More than half of Malaysia's exports to China consist of palm oil and related products. China's advancements in smart farming, precision management, and supply chain integration serve as valuable references for Malaysia's palm oil and other agricultural industries.
The collaboration on palm oil technology between China and Malaysia is just one facet of the wider technological cooperation within the BRI. An article in the overseas edition of the People's Daily reported earlier this month that China and countries participating in the BRI have initiated the establishment of more than 70 joint laboratories under the BRI framework, spanning sectors like agriculture, new energy, health and wellness. This effort highlights the BRI's broad commitment to promoting international scientific collaboration and innovation.
Technology is an important component of BRI cooperation. The joint laboratory between China and Malaysia serves as a concrete example of how this pragmatic technological collaboration is playing a multifaceted role, including but not limited to promoting trade and industrial chain development. This is beneficial for the economies and livelihoods of all parties involved.
Technological advancement is a global issue, and open collaboration is the only right path forward. Over the past decade, the BRI has played a positive role in promoting trade and the development of industrial chains. With the addition of technological cooperation, it is expected to further leverage these partnerships, unlocking the potential for growth in trade and investment, and generating exponential benefits. Global Times
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Indonesia and EU near major trade deal, promising zero tariffs on key exports
The Indonesian government has announced significant progress in finalizing a trade agreement with the European Union that could lead to zero tariffs on key Indonesian exports such as textiles, fishery products, footwear, and crude palm oil (CPO).
The agreement, officially known as the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU CEPA), is now 90 percent legally drafted, according to Coordinating Minister for the Economy Airlangga Hartarto.
“Indonesia hopes this can be fast-tracked. If all documents are finalized by September, ratification could be completed within a year in each country. However, full implementation can only occur once all 27 EU member states have ratified it,” Airlangga told a press conference in Jakarta on Friday, June 14, 2025.
He emphasized that the agreement’s enforcement cannot be done unilaterally − every EU member state must approve it based on their respective legal systems. The Indonesian government has already laid out a roadmap for the agreement’s implementation, beginning with domestic procedures in each country from September 2025 through Q2 2026.
The official signing is targeted between Q2 and Q3 of 2026, with Indonesia’s parliament expected to ratify it between Q2 and Q4 of 2026. Full implementation is projected to begin in Q1 of 2027.
On the same occasion, Director General of International Trade Negotiations at the Ministry of Trade, Djatmiko Bris Witjaksono, said that the EU has been committed to granting special tariff treatment for nearly all Indonesian goods once the deal is enacted.
Both parties have agreed to a broad liberalization of tariffs. Indonesia will reduce import duties on 97.75 percent of its national tariff lines, covering 98.14 percent of its imports from the EU. In return, the EU will offer duty-free access on 98.61 percent of its tariff lines, which will cover nearly 99 percent of Indonesian exports to the EU market.
“The EU will provide preferential treatment on around 98.61 percent of their total tariff lines. Essentially, 100 percent of Indonesia’s exports to the EU will enjoy special tariffs, with approximately 99 percent benefiting from zero tariffs. Some will be duty-free from day one, while others will follow in the second or third year. But eventually, God willing, they will all reach zero,” Djatmiko said on Friday, June 14, 2025.
Although tariff reductions will be phased in, nearly all Indonesian products will eventually be exempt from import duties. The government anticipates that the IEU CEPA could boost Indonesia’s exports to the EU by as much as 50 percent within three years of full implementation. This deal is expected to significantly enhance Indonesia’s trade competitiveness and deepen its economic ties with one of the world’s largest trading blocs. Indonesia Business Post
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Japan to Import 640,000 Tons of Indonesian Biomass Products to Meet Energy Needs
TEMPO.CO, Jakarta - Indonesian biomass products such as palm kernel shells and wood pellets were in high demand at the business forum organized by the Ministry of Trade in Osaka, Japan, on Wednesday, June 11, 2025. Japanese companies signed commitments to import 640 thousand tons of both commodities. The transaction value reached Rp1.04 trillion.
The Director General of National Export Development at the Ministry of Trade, Fajarini Puntodewi, stated that Japan needs these biomass products to meet their energy resources. Japan has set a target to make new passenger vehicles electric by 2035 to achieve net zero emissions by 2050.
"Therefore, the automotive industry in Japan must transition to renewable energy to support the shift towards electric vehicles and reduce greenhouse gas emissions," she said in a statement in Jakarta on Sunday, June 15, 2025, as quoted by Antara.
Puntodewi continued that renewable energy products derived from palm, such as palm kernel shells, empty fruit bunches, and oil palm trunks, have very low gas emissions. She noted that every ton of palm kernel shells used as fuel in factories can contribute to reducing carbon dioxide by 0.94 tons.
According to Puntodewi, the domestic demand for biomass products is still small, making exports a more profitable option. She cited that the current production of palm kernel shells is around 14 million tons, with 35 percent of the commodity's availability in the country being exported.
Indonesia's export of palm kernel shells to Japan currently reaches 4.5 million tons per year. The Ministry of Trade estimates that Japan's biomass market demand in 2025-2026 will increase to 7 million tons per year. Palm kernel shells and wood pellets are essential for Japan's needs.
Specifically for palm kernel shells, Puntodewi stated that they are not only used for vehicle fuel but can also be used for low carbon emission thermal power plant fuel, making it suitable for the industry. Furthermore, palm kernel shells are used as high-performance activated carbon that can be used to recover solvents, purify air, and clean water.
The Secretary General of the Indonesian Biomass Energy Producers Association (Aprebi), Dikki Akhmar, supports the Indonesian government's efforts to ensure that Sustainable Palm Oil (ISPO) palm kernel shell products are accepted by the Japanese government. He also advocates for more extensive socialization of the Timber Legality Verification System (SVLK). The SVLK plays a role in certifying biomass products from forests such as wood pellets and wood chips for export.
"The growing awareness of sustainable aspects and the increasing concept of green economy make many countries compete to present environmentally friendly products," said Dikki. Therefore, this is a golden opportunity for Indonesia to innovate and develop high-quality and standardized renewable energy products. Tempo
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Indonesia to strengthen ISPO for downstream industries
JAKARTA – The ministry of industry (Kemenperin) is drafting a ministerial regulation as an implementing regulation of the newly-issued presidential regulation (Perpres) No.16/2025 on certification of Indonesian Sustainable Palm Oil (ISPO) for Indonesia’s downstream palm oil industries. The expansion and improvement of the ISPO certification is expected to spur the development of palm oil industries in the country.
Kemenperin’s Agroindustry Director General Putu Juli Ardika said that his ministry is now in a process of drafting a ministerial regulation on technical guidelines of ISPO certification for downstream palm industries.
The ministerial regulation will function as an implementing regulation to the Perpres No.16/2025 on certification system of ISPO in Indonesia. “The Perpres has been issued. Now, we’re preparing its implementing regulation on the ISPO certification. It’s still under process,” said Putu.
He said that as part of efforts to strengthen the ISPO certification system, they are developing an information system of palm oil products and derivatives, which can provide real time information on products and transactions in domestic palm oil markets. “Hopefully, in the future that system will provide us with accurate and reliable data. We will be also able to help raising productivity of industrial companies. The system should also become an important instrument for realizing transparency and efficiency in the palm oil supply chain,” he said.
The ISPO certification is legally based on the law (UU) No.39/ 2014 on plantations, whose implementation is stipulated in Perpres No.44/ 2020 that has been revised with the Perpres No.16/2025.
Previously, Head of the Substance Group for Implementation and Supervision of Plantation Product Quality at the agriculture ministry (Kementan), Ratna Sariati said that ISPO certification stands as a system to ensure that palm oil businesses are properly conducted from the perspective of economy, socio-culture, environment, and prevailing regulations.
The policy revision covers the expansion of obligation of ISPO certification from just upstream to downstream, including the processing industry and bioenergy. “Based on the policy revision, ISPO certification is not only the responsibility of Kementan, but also Kemenperin for downstream palm products and ministry of energy and mineral resources (KESDM) for bioenergy,” she said.
The expansion of certification obligation is accompanied by institutional restructuration and new scheme of financing. “The certification of ISPO for growers can be financed through APBN (state budget), APBD (regional budget), and the Plantation Fund Management Board (BPDP),” she said. GAPKI
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How Malaysia’s palm oil industry is cultivating a greener tomorrow
Observed annually on June 5, World Environment Day is a pivotal global platform, with its recurring calls for individuals, communities and industries to rally together to solve pressing environmental challenges.
While this year’s theme casts the spotlight on plastic pollution, its overarching message is to safeguard our planet. Embracing the call for collective action, Malaysia’s palm oil sector has proactively embarked on a transformative journey, demonstrating unwavering commitment to environmental and climate stewardship.
Taking collective responsibility for the planet
The significance of Malaysia’s palm oil industry cannot be overstated. This is a sector that serves as a crucial economic backbone for the nation, not least its more than 450,000 smallholders. This means the industry does not only contribute a large percentage to Malaysia’s gross domestic product (GDP) and export earnings, but also directly supports the livelihoods of a vast number of rural families.
Crucially, this economic powerhouse is confronting its environmental responsibilities. Recognising the industry’s considerable environmental footprint, Malaysian plantation players have united to collectively take responsibility for the industry’s environmental impact and drive its sustainable transformation. This commitment echoes the sentiment expressed by British explorer and environmental activist Robert Swan, who famously said over a decade ago, “The greatest threat to our planet is the belief that someone else will save it.” This powerful truth resonates strongly even today, motivating the industry to adopt a more forward-thinking vision for the planet.
A pivotal effort is the mandatory Malaysian Sustainable Palm Oil (MSPO) certification scheme, now in its second iteration. With more stringent requirements, MSPO 2.0 is capable of meeting the deforestation free demands laid out by the European Union Deforestation Regulation (EUDR). For instance, MSPO 2.0 mandates that there will be no conversion of natural forests, protected areas, and High Conservation Value (HCV) areas into oil palm plantations after Dec 31, 2019 — a full year prior to the EUDR’s stipulation.
Actively tackling climate change
To curb their carbon footprint, some Malaysian palm oil players are implementing methane capture technologies. This innovative method manages biogas from palm oil mill effluent (POME), processing wastewater and converting it into renewable energy at facilities like Cenergi SEA’s Langkap Biogas Plant. Solid palm biomass offers similar potential.
During the April visit of Minister of Plantation and Commodities Datuk Seri Johari Abdul Ghani to the Cenergi Sua Betong Biogas Plant in Port Dickson, Negeri Sembilan, he highlighted that since January 2014, all new or expanding mills are required to install biogas capture systems. By December 2024, 170 (38%) of the 446 operating mills had implemented these facilities, surpassing the National Agricommodity Policy 2025 target of 155 mills. This contributed to a reduction of greenhouse gas (GHG) emissions by 4.9 million tonnes of carbon dioxide, he said.
These efforts align with Malaysia’s commitment to reach net zero GHG emissions by 2050, despite only contributing about 0.8% to global GHG. Initially articulated in the 12th Malaysia Plan (2021-2025), this commitment is reinforced by the National Energy Transition Roadmap (NETR). Still, the widespread adoption of methane capture has faced hurdles due to significant practical and financial challenges for mills, highlighting the need for stronger, collaborative government support.
According to Johari, Malaysia produced 63.5 million tonnes of POME in 2022, which could have generated 1.8 billion cu m of biogas. This is capable of producing an average of 1.22GW of energy per year.
Beyond cutting emissions
The industry’s commitment to sustainability extends beyond emission reduction. Beyond adherence to the stringent No Deforestation, No Peat, No Exploitation (NDPE) policy, palm oil players are actively stepping up their biodiversity conservation efforts, demonstrating a comprehensive approach to environmental stewardship.
For instance, Tawau-based Sabah Softwood Berhad (SSB) established a 1,067ha wildlife corridor in 2013 to connect fragmented forest areas. This 14km corridor actively links two major forest reserves, Ulu Kalumpang and Ulu Segama, facilitating safe passage for wildlife — particularly Borneo elephants — and significantly reducing human-wildlife conflict.
Similarly, IOI Corporation Berhad’s practices include conserving trees, flora and fauna in buffer zones and steep areas unsuitable for oil palm planting, and setting up a sanctuary for proboscis monkeys at one of its estates. IOI also conducts biodiversity studies of flora and fauna species across its plantations, having identified 337 flora and 227 fauna endemic species to date, and is a strategic partner in the Malua Wildlife Conservation Initiative.
Harnessing technology for positive change
To bolster its environmental and biodiversity protection efforts, the Malaysian palm oil industry is increasingly leveraging innovation and technology to make a difference. Digital traceability solutions — such as e-MSPO, a digital system that monitors the certification process, and MSPO Trace, a traceability system designed to track palm oil products along the supply chain — enhance supply chain transparency, which is vital for consumers and markets demanding sustainably sourced products. This transparency directly aids in verifying NDPE compliance.
Concurrently, plantations are embracing mechanisation and automation. These advancements are largely spearheaded by research and development facilitated by entities like MARCOP (Mechanisation and Automation Research Consortium of Oil Palm), which operates as a platform for government-industry collaboration offering matching grants to drive related research.
This shift towards drones, robots and sensors not only boosts operational efficiency but also plays a crucial role in reducing the environmental footprint of palm oil cultivation. SD Guthrie, for instance, utilises drones equipped with Global Positioning System (GPS) and artificial intelligence (AI) to apply fertilisers and pesticides precisely where needed. This approach substantially cuts the overall volume of chemicals used, thus preventing widespread contamination of soil and water and minimising harm to non-target flora and fauna. Meanwhile, Genting Plantations deploys drones to pinpoint fires in remote and inaccessible locations.
Painting a hopeful picture
On World Environment Day, Malaysia’s palm oil industry stands as a testament to collective action. The proactive steps taken — from its updated MSPO certification scheme to its commitment to transparency — underscore a clear vision for sustainability and demonstrates that economic growth and ecological responsibility can converge, cultivating a genuinely greener tomorrow. The Edge
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China-Malaysia joint lab for palm oil highlights growing tech partnership under BRI
The inaugural meeting of the China-Malaysia joint laboratory on oils and fats processing and safety, under the Belt and Road Initiative (BRI), was held recently, the Science and Technology Daily reported on Sunday. This first-of-its-kind laboratory between China and Malaysia within the BRI framework is expected to bolster the palm oil trade and enhance broader industrial cooperation between the two countries.
Palm oil is an important sector within the agricultural trade cooperation between China and Malaysia. Malaysia is one of the world's top producers of palm oil, while China has become an important export market for Malaysian palm oil. This trade not only bolsters the bilateral economy but also contributes positively to the stability and development of the global supply chain.
According to an article on the website of the Malaysian Palm Oil Council (MPOC), its CEO Belvinder Sron stated that in 2023, Malaysia exported 3.05 million tons of palm products to China, predominantly palm oil and oleochemicals. Collaboration between the two countries spans the entire industry chain, from crude palm oil exports to downstream processing.
The establishment of the joint laboratory is expected to enhance the ability to address the technical challenges in the ongoing process of industrial development. In recent years, as the industry has evolved, there has been a continuous need for technological innovation to meet the ever-changing demands of the market. For instance, with the Chinese market becoming more sophisticated and its consumers increasingly prioritizing health, the MPOC reportedly anticipates a shift in demand from traditional palm oil products, such as RBD palm olein and palm stearin, to higher-value alternatives. These include carotene-rich red palm oil, specialty fats, and hydrotreated vegetable oil, which align with emerging demand trends.
The technological collaboration between China and Malaysia is poised to propel advancements in palm oil technology. According to the Science and Technology Daily, the establishment of the joint laboratory will leverage biomanufacturing technologies to boost the nutritional value and add industrial value to palm oil. This initiative is designed to bolster Malaysia's sustainable development and enhance China's food oil security and public health. Moreover, it will strengthen the partnership between China and Malaysia in edible oil processing and safety, establishing an international platform for scientific and technological cooperation and exchanges. This will promote international collaboration and foster talent development between the two countries.
In an interview earlier this year with the Xinhua News Agency, Malaysia's Deputy Minister of Plantation and Commodities, Datuk Chan Foong Hin, stated that China has been Malaysia's largest trading partner for 16 consecutive years. More than half of Malaysia's exports to China consist of palm oil and related products. China's advancements in smart farming, precision management, and supply chain integration serve as valuable references for Malaysia's palm oil and other agricultural industries.
The collaboration on palm oil technology between China and Malaysia is just one facet of the wider technological cooperation within the BRI. An article in the overseas edition of the People's Daily reported earlier this month that China and countries participating in the BRI have initiated the establishment of more than 70 joint laboratories under the BRI framework, spanning sectors like agriculture, new energy, health and wellness. This effort highlights the BRI's broad commitment to promoting international scientific collaboration and innovation.
Technology is an important component of BRI cooperation. The joint laboratory between China and Malaysia serves as a concrete example of how this pragmatic technological collaboration is playing a multifaceted role, including but not limited to promoting trade and industrial chain development. This is beneficial for the economies and livelihoods of all parties involved.
Technological advancement is a global issue, and open collaboration is the only right path forward. Over the past decade, the BRI has played a positive role in promoting trade and the development of industrial chains. With the addition of technological cooperation, it is expected to further leverage these partnerships, unlocking the potential for growth in trade and investment, and generating exponential benefits. Global Times
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June 15, 2025
FTA with India brings 'genuine' competitive advantage, UK Parliament told
The UK-India Free Trade Agreement (FTA) is poised to give the UK a significant competitive edge in manufacturing, particularly in the automotive and machinery sectors. UK Business and Trade Secretary Jonathan Reynolds highlighted the deal as India's best offer to date, projecting a substantial increase in bilateral trade.
London, The Free Trade Agreement (FTA) negotiations concluded with India places the UK at a "genuine" competitive advantage in the manufacturing sector, the House of Commons was told this week.
During a debate on the bilateral FTA agreed last month, UK Business and Trade Secretary Jonathan Reynolds fielded a series of questions on the advantages of the deal which has been pegged to increase bilateral trade by GBP 25.5 billion annually in the long term.
Reynolds reiterated that the pact marked a huge economic win for the UK as the "best deal that India has ever offered". Economic Times
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Cross River State Government signs agreement with Wilmar subsidiary to revive plantation assets
The Cross River State Government has signed an asset sale agreement with Biase Plantations Limited, a subsidiary of Wilmar International, to revive dormant plantation assets.
The agreement, signed at the Executive Council Chamber of the Governor’s Office in Calabar, transfers ownership of over 8,500 hectares of land and assets, formerly managed by Enghuat Industries Limited under the defunct Cross River Estates Limited, to Wilmar for rehabilitation and productive use.
Governor Bassey Otu described the event as a “historic day,” reaffirming his administration’s commitment to restoring legacy investments and placing them in the hands of competent professionals.
“It’s clear that the government is not suited to manage businesses. We want to restore value to these assets, and Wilmar has demonstrated the expertise and integrity required for this partnership,” Otu said. GuardianNG
FTA with India brings 'genuine' competitive advantage, UK Parliament told
The UK-India Free Trade Agreement (FTA) is poised to give the UK a significant competitive edge in manufacturing, particularly in the automotive and machinery sectors. UK Business and Trade Secretary Jonathan Reynolds highlighted the deal as India's best offer to date, projecting a substantial increase in bilateral trade.
London, The Free Trade Agreement (FTA) negotiations concluded with India places the UK at a "genuine" competitive advantage in the manufacturing sector, the House of Commons was told this week.
During a debate on the bilateral FTA agreed last month, UK Business and Trade Secretary Jonathan Reynolds fielded a series of questions on the advantages of the deal which has been pegged to increase bilateral trade by GBP 25.5 billion annually in the long term.
Reynolds reiterated that the pact marked a huge economic win for the UK as the "best deal that India has ever offered". Economic Times
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Cross River State Government signs agreement with Wilmar subsidiary to revive plantation assets
The Cross River State Government has signed an asset sale agreement with Biase Plantations Limited, a subsidiary of Wilmar International, to revive dormant plantation assets.
The agreement, signed at the Executive Council Chamber of the Governor’s Office in Calabar, transfers ownership of over 8,500 hectares of land and assets, formerly managed by Enghuat Industries Limited under the defunct Cross River Estates Limited, to Wilmar for rehabilitation and productive use.
Governor Bassey Otu described the event as a “historic day,” reaffirming his administration’s commitment to restoring legacy investments and placing them in the hands of competent professionals.
“It’s clear that the government is not suited to manage businesses. We want to restore value to these assets, and Wilmar has demonstrated the expertise and integrity required for this partnership,” Otu said. GuardianNG
June 13, 2025
CPOPC Strengthens China Ties for a Greener Palm Oil Future
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 including 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 instance, 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,” emphasized 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 aims to seal EU free trade agreement in 2026, official says
JAKARTA, June 13 (Reuters) - Indonesia aims to seal a free trade agreement with the European Union in 2026, Indonesian trade ministry official Djatmiko Bris Witjaksono said on Friday, after the two sides completed their latest round of negotiations.
Indonesia and the EU have been in discussions on the agreement for about nine years, and are aiming to sign and ratify it by next year, Djatmiko told reporters, adding it could come into effect by late 2026 or early 2027.
The EU has committed to provide market access to priority Indonesian products such as palm oil, textiles, footwear and seafood, Djatmiko said.
Indonesia and the EU have previously clashed on tougher EU trade rules for products with potential links to deforestation, which could have an impact on shipments of Indonesian palm oil.
In turn, Indonesia has also pledged to increase market access for agricultural and manufactured goods from the EU, Djatmiko said.
EU ambassador to Indonesia Denis Chaibi said negotiations are ongoing and "substance will determine timing."
The main benefits of the free trade deal for Indonesia include increased foreign direct investment from the EU in sectors like renewables, semiconductors, and mineral derivatives, a presentation slide presented by Djatmiko showed.
The deal could increase exports by 5.4%, according to an internal benefit analysis, but senior economic minister Airlangga Hartarto said this was a conservative estimate and he targets a 50% increase in three years.
In 2024, the EU invested $1.1 billion in Indonesia, a drop of more than 50% from the previous year.
Indonesia's exports to the EU last year were worth $17.3 billion, while imports from the EU were worth $12.8 billion, Indonesian government data showed. Reuters
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ISPO Revisions Provide Opportunity for EU to Support Smallholders
Extending on Jokowi-era regulations, the new decree expands certification requirements to cover the entire palm oil value chain—from upstream plantations to downstream processing industries and bioenergy producers.
Butthe most significant development is new support for smallholder farmers, who manage approximately 6.94 million hectares of palm oil plantations across Indonesia.
The government has introduced a comprehensive funding mechanism where Indonesia’s Palm Oil Plantation Fund Management Agency (BPDPKS), along with national and regional budgets, will now cover certification costs for smallholders. This funding extends to costs for business registrations, training, technical assistance and certification and inspection fees. Mandatory certification for smallholders still won’t take effect until 2029.
The expanded ISPO framework has received mixed reactions from smallholders. Sawitku Masa Depanku (Samade), a farmers’ association, has voiced support for the regulation, welcoming the new financing opportunities.
However, APKASINDO (Indonesian Oil Palm Farmers Association) has raised questions about requiring downstream certification when upstream operations are already certified.
The revisions and new funding sources should set conditions to accelerate ISPO certification across Indonesia for smallholders in the lead-up to 2029. This has been a crucial point made in stakeholder consultations that took place across Indonesia last week.
MSPO, Malaysia’s national mandatory certification scheme, provides significant financial support for smallholders, with around 80 per cent of smallholders already certified.
GAPKI, the Indonesian Palm Oil Association, is hopeful that the new revised regulations will provide additional support for secretariat functions for ISPO in order to ensure certification processes take place efficiently.
The new scope also provides an opportunity for aid agencies and particularly the European Union to provide additional financial support for certification, particularly so smallholder farmers can comply with the requirements of the European Union Deforestation Regulation (EUDR).
The costs of legality and traceability requirements for smallholders will likely exclude smallholders – particularly independent smallholders – from supplying EU markets once the regulation takes effect. Indonesia Palm Oil Facts
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Ireland keeps double counting for Pome biofuels
The Irish transport ministry has signed an amended regulation that will continue to allow for biofuels made from palm oil mill effluent (Pome) oil to be counted twice towards domestic mandates, but prevent the granting of additional renewable fuel certificates to biofuels made from the waste feedstock from 1 July.
Irish biofuels legislation allows for two renewable fuel certificates to be generated per megajoule for fuels made from feedstocks listed in Annex IX of the EU's Renewable Energy Directive (RED), which includes Pome oil. This is known as double counting. A second piece of legislation, the National Oil Reserves Agency Act 2007 (Additional Certificates for Renewable Transport Fuel) Regulations, allows for extra certificates to be generated for fuels from Annex IX feedstocks on top of double counting.
The amended regulation will prevent the additional generation of 0.5 certificates per megajoule of hydrotreated vegetable oil, 0.4 certificates per megajoule of fuel supplied into the aviation sector and 0.4 certificates for megajoule of fuel supplied into the marine sector, if produced from Pome oil. Biofuels produced from other feedstocks listed in Annex IX will still be eligible for this.
The National Oil Reserves Agency, which administers Ireland's biofuels mandate, reviewed Pome oil consumption data last year and recommended excluding Pome oil-based fuels from double counting, along with an exclusion from additional certificate generation. It also suggested implementing a Pome oil cap for the mandate, but acknowledged administrative barriers.
Ireland was one of four member states that last year approached the European Commission to ask for its support in the analysis of Pome oil-based biofuel usage. The commission responded by saying it would be launching a working group with member states on sustainability and fraud in the lead-up to states transposing the recast RED III.
By Simone Burgin/ Argus Media
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East Midlands Airport converts vehicle fleet to renewable fuel
Used cooking oil will be used to power vehicles at East Midlands Airport - helping slash carbon emissions by up to 90%.
More than 60 vehicles involved in airport operations are now running on biodiesel instead of fossil-based diesel. These include airfield operations and security team vehicles, fire trucks and snow clearing vehicles.
The airport has worked with biodiesel supplier YourNRG to bring about the change, which comes as its parent company, Manchester Airports Group (MAG), launches its five-year Sustainability Strategy, Creating a sustainable future for all.
The airport’s biodiesel is produced from waste vegetable oils and fats which undergo a hydrogen treatment to be turned into renewable fuel which reduces carbon emissions by up to 90% compared to fossil diesel. It also drastically lowers particulate emissions and is biodegradable, making it safer for the environment than traditional diesel.
East Midlands Airport’s managing director, Steve Griffiths, said: “We are always looking at ways to reduce our impact on the environment, with the aim of hitting Manchester Airport Group’s target of achieving net-zero operations by 2038.
“Working with YourNRG to convert our fleet of ground vehicles is a great step forward, with significant emissions reductions and other environmental benefits.”
Lee Reason, commercial director at Your NRG, said: "We're proud to support East Midlands Airport on its journey toward decarbonisation. By transitioning their operational fleet to HVO Fuel, they've taken a major step in reducing emissions without compromising on performance.
“It's a powerful example of how sustainable alternatives can deliver real impact today. As more organisations commit to ambitious climate goals, HVO Fuel offers a practical, low-carbon solution to help get them there faster." Biofuels News
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Malaysia eyes Japanese market with sustainable palm-based products under MSPO 2.0
KUALA LUMPUR (June 13): Malaysia aims to expand the reach of its downstream and value-added palm-based products to Japan, particularly specialty fats, tocotrienols, red palm oil, and palm biomass-based medium-density fibreboard for housing and furniture applications.
In a statement on Friday, the Ministry of Investment, Trade and Industry (Miti) said Malaysia is accelerating its position as a global leader in sustainable commodity certification through the implementation of Malaysian Sustainable Palm Oil (MSPO) 2.0, a strengthened standard under the MSPO certification scheme.
Recently spotlighted at Expo 2025 Osaka during the Ministry of Plantation and Commodities’ (KPK) promotional programme, Miti said MSPO 2.0 underscores Malaysia’s commitment to positioning sustainable agriculture as a core pillar of future trade and economic diplomacy.
KPK Minister Datuk Seri Johari Abdul Ghani said MSPO 2.0 represents Malaysia’s firm declaration to the world that the country is serious about transforming its commodity sector, in line with global sustainability standards.
“We are embedding sustainability at every level, from smallholder farms to export shelves, and raising the integrity of our entire ecosystem. Not only that, we aim for the MSPO model to be replicated across all commodities,” he added.
During KPK Week at Expo 2025 Osaka, five strategic memoranda of understanding (MOUs) were signed across key commodity sectors — from palm-based biomass to sustainable pepper, kenaf innovation, and cacao exports — reflecting Malaysia’s multi-sectoral push for sustainable, high-value commodity development.
Miti added that Malaysia’s export credibility received a further boost this week through a newly formalised collaboration between MSPO and AEON Japan, representing a clear step towards enhancing certified product visibility in consumer-facing retail, with MSPO-labelled palm-based products already gaining shelf presence.
Meanwhile, Miti said the Malaysian Palm Oil Board (MPOB) — a research and development, as well as licensing agency under KPK — has also inked agreements and explored business opportunities for the oil palm agri-commodity sector at the expo, to advance trade development in Japan and the wider Asian region.
Currently, 86% of Malaysia’s palm oil cultivation is MSPO-certified, with the country targeting 95% certification by the end of 2025.
Under Budget 2025, RM50 million has been allocated to support MSPO implementation nationwide, including technical assistance, audit support, and traceability tools to help independent smallholders adapt more effectively.
Malaysia’s participation at Expo 2025 — led by Miti and involving MSPO, alongside over 21 ministries and 70 agencies under a unified national narrative — will see the Malaysia Pavilion hosting forums, product showcases, business matching sessions, and MOU signings throughout the 26-week event, positioning the country as a future-ready trade and investment partner.
To date, Malaysia has achieved 68% of its RM13 billion target in trade and investment leads for Expo 2025.
Uploaded by Liza Shireen Koshy/ The Edge
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Malaysia is trying to convince the European Union to amend new environmental regulations, which it believes unfairly penalizes its exports of palm oil.
The country is the world’s second biggest producer of the oil, which has been blamed for deforestation in many parts of the world.
Al Jazeera’s Rob McBride reports from Kuala Lumpur, Malaysia.
CPOPC Strengthens China Ties for a Greener Palm Oil Future
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 including 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 instance, 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,” emphasized 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 aims to seal EU free trade agreement in 2026, official says
JAKARTA, June 13 (Reuters) - Indonesia aims to seal a free trade agreement with the European Union in 2026, Indonesian trade ministry official Djatmiko Bris Witjaksono said on Friday, after the two sides completed their latest round of negotiations.
Indonesia and the EU have been in discussions on the agreement for about nine years, and are aiming to sign and ratify it by next year, Djatmiko told reporters, adding it could come into effect by late 2026 or early 2027.
The EU has committed to provide market access to priority Indonesian products such as palm oil, textiles, footwear and seafood, Djatmiko said.
Indonesia and the EU have previously clashed on tougher EU trade rules for products with potential links to deforestation, which could have an impact on shipments of Indonesian palm oil.
In turn, Indonesia has also pledged to increase market access for agricultural and manufactured goods from the EU, Djatmiko said.
EU ambassador to Indonesia Denis Chaibi said negotiations are ongoing and "substance will determine timing."
The main benefits of the free trade deal for Indonesia include increased foreign direct investment from the EU in sectors like renewables, semiconductors, and mineral derivatives, a presentation slide presented by Djatmiko showed.
The deal could increase exports by 5.4%, according to an internal benefit analysis, but senior economic minister Airlangga Hartarto said this was a conservative estimate and he targets a 50% increase in three years.
In 2024, the EU invested $1.1 billion in Indonesia, a drop of more than 50% from the previous year.
Indonesia's exports to the EU last year were worth $17.3 billion, while imports from the EU were worth $12.8 billion, Indonesian government data showed. Reuters
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ISPO Revisions Provide Opportunity for EU to Support Smallholders
- President Prabowo’s new regulation on ISPO will broaden and strengthen sustainability requirements, encompassing downstream industries;
- The revisions can also be oriented towards accelerating certification for smallholders;
- Farmers can receive financial support from government and other sources – providing an opportunity for the EU to support farmers directly.
Extending on Jokowi-era regulations, the new decree expands certification requirements to cover the entire palm oil value chain—from upstream plantations to downstream processing industries and bioenergy producers.
Butthe most significant development is new support for smallholder farmers, who manage approximately 6.94 million hectares of palm oil plantations across Indonesia.
The government has introduced a comprehensive funding mechanism where Indonesia’s Palm Oil Plantation Fund Management Agency (BPDPKS), along with national and regional budgets, will now cover certification costs for smallholders. This funding extends to costs for business registrations, training, technical assistance and certification and inspection fees. Mandatory certification for smallholders still won’t take effect until 2029.
The expanded ISPO framework has received mixed reactions from smallholders. Sawitku Masa Depanku (Samade), a farmers’ association, has voiced support for the regulation, welcoming the new financing opportunities.
However, APKASINDO (Indonesian Oil Palm Farmers Association) has raised questions about requiring downstream certification when upstream operations are already certified.
The revisions and new funding sources should set conditions to accelerate ISPO certification across Indonesia for smallholders in the lead-up to 2029. This has been a crucial point made in stakeholder consultations that took place across Indonesia last week.
MSPO, Malaysia’s national mandatory certification scheme, provides significant financial support for smallholders, with around 80 per cent of smallholders already certified.
GAPKI, the Indonesian Palm Oil Association, is hopeful that the new revised regulations will provide additional support for secretariat functions for ISPO in order to ensure certification processes take place efficiently.
The new scope also provides an opportunity for aid agencies and particularly the European Union to provide additional financial support for certification, particularly so smallholder farmers can comply with the requirements of the European Union Deforestation Regulation (EUDR).
The costs of legality and traceability requirements for smallholders will likely exclude smallholders – particularly independent smallholders – from supplying EU markets once the regulation takes effect. Indonesia Palm Oil Facts
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Ireland keeps double counting for Pome biofuels
The Irish transport ministry has signed an amended regulation that will continue to allow for biofuels made from palm oil mill effluent (Pome) oil to be counted twice towards domestic mandates, but prevent the granting of additional renewable fuel certificates to biofuels made from the waste feedstock from 1 July.
Irish biofuels legislation allows for two renewable fuel certificates to be generated per megajoule for fuels made from feedstocks listed in Annex IX of the EU's Renewable Energy Directive (RED), which includes Pome oil. This is known as double counting. A second piece of legislation, the National Oil Reserves Agency Act 2007 (Additional Certificates for Renewable Transport Fuel) Regulations, allows for extra certificates to be generated for fuels from Annex IX feedstocks on top of double counting.
The amended regulation will prevent the additional generation of 0.5 certificates per megajoule of hydrotreated vegetable oil, 0.4 certificates per megajoule of fuel supplied into the aviation sector and 0.4 certificates for megajoule of fuel supplied into the marine sector, if produced from Pome oil. Biofuels produced from other feedstocks listed in Annex IX will still be eligible for this.
The National Oil Reserves Agency, which administers Ireland's biofuels mandate, reviewed Pome oil consumption data last year and recommended excluding Pome oil-based fuels from double counting, along with an exclusion from additional certificate generation. It also suggested implementing a Pome oil cap for the mandate, but acknowledged administrative barriers.
Ireland was one of four member states that last year approached the European Commission to ask for its support in the analysis of Pome oil-based biofuel usage. The commission responded by saying it would be launching a working group with member states on sustainability and fraud in the lead-up to states transposing the recast RED III.
By Simone Burgin/ Argus Media
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East Midlands Airport converts vehicle fleet to renewable fuel
Used cooking oil will be used to power vehicles at East Midlands Airport - helping slash carbon emissions by up to 90%.
More than 60 vehicles involved in airport operations are now running on biodiesel instead of fossil-based diesel. These include airfield operations and security team vehicles, fire trucks and snow clearing vehicles.
The airport has worked with biodiesel supplier YourNRG to bring about the change, which comes as its parent company, Manchester Airports Group (MAG), launches its five-year Sustainability Strategy, Creating a sustainable future for all.
The airport’s biodiesel is produced from waste vegetable oils and fats which undergo a hydrogen treatment to be turned into renewable fuel which reduces carbon emissions by up to 90% compared to fossil diesel. It also drastically lowers particulate emissions and is biodegradable, making it safer for the environment than traditional diesel.
East Midlands Airport’s managing director, Steve Griffiths, said: “We are always looking at ways to reduce our impact on the environment, with the aim of hitting Manchester Airport Group’s target of achieving net-zero operations by 2038.
“Working with YourNRG to convert our fleet of ground vehicles is a great step forward, with significant emissions reductions and other environmental benefits.”
Lee Reason, commercial director at Your NRG, said: "We're proud to support East Midlands Airport on its journey toward decarbonisation. By transitioning their operational fleet to HVO Fuel, they've taken a major step in reducing emissions without compromising on performance.
“It's a powerful example of how sustainable alternatives can deliver real impact today. As more organisations commit to ambitious climate goals, HVO Fuel offers a practical, low-carbon solution to help get them there faster." Biofuels News
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Malaysia eyes Japanese market with sustainable palm-based products under MSPO 2.0
KUALA LUMPUR (June 13): Malaysia aims to expand the reach of its downstream and value-added palm-based products to Japan, particularly specialty fats, tocotrienols, red palm oil, and palm biomass-based medium-density fibreboard for housing and furniture applications.
In a statement on Friday, the Ministry of Investment, Trade and Industry (Miti) said Malaysia is accelerating its position as a global leader in sustainable commodity certification through the implementation of Malaysian Sustainable Palm Oil (MSPO) 2.0, a strengthened standard under the MSPO certification scheme.
Recently spotlighted at Expo 2025 Osaka during the Ministry of Plantation and Commodities’ (KPK) promotional programme, Miti said MSPO 2.0 underscores Malaysia’s commitment to positioning sustainable agriculture as a core pillar of future trade and economic diplomacy.
KPK Minister Datuk Seri Johari Abdul Ghani said MSPO 2.0 represents Malaysia’s firm declaration to the world that the country is serious about transforming its commodity sector, in line with global sustainability standards.
“We are embedding sustainability at every level, from smallholder farms to export shelves, and raising the integrity of our entire ecosystem. Not only that, we aim for the MSPO model to be replicated across all commodities,” he added.
During KPK Week at Expo 2025 Osaka, five strategic memoranda of understanding (MOUs) were signed across key commodity sectors — from palm-based biomass to sustainable pepper, kenaf innovation, and cacao exports — reflecting Malaysia’s multi-sectoral push for sustainable, high-value commodity development.
Miti added that Malaysia’s export credibility received a further boost this week through a newly formalised collaboration between MSPO and AEON Japan, representing a clear step towards enhancing certified product visibility in consumer-facing retail, with MSPO-labelled palm-based products already gaining shelf presence.
Meanwhile, Miti said the Malaysian Palm Oil Board (MPOB) — a research and development, as well as licensing agency under KPK — has also inked agreements and explored business opportunities for the oil palm agri-commodity sector at the expo, to advance trade development in Japan and the wider Asian region.
Currently, 86% of Malaysia’s palm oil cultivation is MSPO-certified, with the country targeting 95% certification by the end of 2025.
Under Budget 2025, RM50 million has been allocated to support MSPO implementation nationwide, including technical assistance, audit support, and traceability tools to help independent smallholders adapt more effectively.
Malaysia’s participation at Expo 2025 — led by Miti and involving MSPO, alongside over 21 ministries and 70 agencies under a unified national narrative — will see the Malaysia Pavilion hosting forums, product showcases, business matching sessions, and MOU signings throughout the 26-week event, positioning the country as a future-ready trade and investment partner.
To date, Malaysia has achieved 68% of its RM13 billion target in trade and investment leads for Expo 2025.
Uploaded by Liza Shireen Koshy/ The Edge
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Malaysia is trying to convince the European Union to amend new environmental regulations, which it believes unfairly penalizes its exports of palm oil.
The country is the world’s second biggest producer of the oil, which has been blamed for deforestation in many parts of the world.
Al Jazeera’s Rob McBride reports from Kuala Lumpur, Malaysia.
Organisations warn of ongoing child labour in Sabah’s palm oil plantations
ILO, UNICEF and the EU say thousands of children remain vulnerable, urging Malaysia to sustain pressure against exploitative labour practices
THOUSANDS of children in Sabah’s palm oil estates remain vulnerable to exploitation despite progress in reducing child labour in the sector, several international organisations have warned.
The International Labour Organization (ILO), the United Nations Children’s Fund (UNICEF) and the European Union (EU) issued a joint call for intensified and sustained action to protect children’s rights — particularly their right to education and a life free from exploitation as it mark the World Day Against Child Labour on June 12.
The coalition said poverty and limited access to education were key drivers behind child labour in Sabah.
Malaysia’s latest available estimates in 2018, 60% or approximately 20,000 of the 33,600 children between the ages of 5 and 17 work in the palm oil industry in Sabah.
“Child labour denies children their right to safety and education and threatens their future. This day serves as a reminder that no child should be left behind,” said EU head of cooperation at the EU Delegation to Thailand Tom Corrie.
He said this during the World Day Against Child Labour observed in Tawau in the east coast of Sabah.
ILO and UNICEF are now piloting a series of integrated community programmes in Sabah backed by EU funding.
In Tawau alone, over 150 children and youth have taken part in vocational training and life skills programmes to widen their employment options beyond plantation work.
Additionally, 228 smallholder farmers have joined outreach sessions discussing the challenges children face in accessing education and protection services.
The organisations also launched a social narrative campaign — the Tuai Cerita Fellowship — to counter harmful norms and amplify children’s voices.
Fifteen local content creators were trained under this initiative in partnership with Project Liber8, ANAK, and Global Shepherds.
A separate policy study, conducted with the Social Policy Research Institute (SPRI), is underway to identify barriers to basic services such as education — with findings expected to shape the next phase of government-industry-civil society collaboration.
Such efforts are proof that Malaysia is not tolerating to any form of child labour, said ILO Deputy Regional Director for Asia and the Pacific, Tuomo Poutiainen.
“But progress can only be sustained through stronger family support systems, dignified employment for adults, and private sector responsibility across supply chains,” he said.
The organisations stressed that the issue is far from over — and urged deeper investments in social protection, stronger child welfare systems, and universal access to education, especially in rural and underserved areas.
UNICEF representative to Malaysia Robert Gass said Child labour is a fundamental violation of a child’s right to simply be a child.
“Often rooted in outdated beliefs and economic desperation, it deprives children of their voice, education, and potential. We aim to change that — through empathy, awareness, and firm action.”
This year also marks the 30th anniversary of Malaysia’s ratification of the UN Convention on the Rights of the Child.
The milestone, the organisations said, should serve as a renewed commitment to uphold every child’s right to education, protection, and opportunity. The Vibes
June 11, 2025
Exporting extinction: How the Rich World Is Driving Global Biodiversity Loss
Western imports are driving deforestation in the global south, reveals a new report
When we think of deforestation, Indonesia’s palm oil plantations or Brazil’s cattle pastures might spring to mind. But a new study from Princeton University reveals that much of the destruction is being outsourced — by wealthy nations. These countries, while appearing green at home, are driving devastating biodiversity loss abroad through their insatiable demand for commodities.
By analysing trade data, species range maps, and deforestation rates from 2001–2015, the researchers found that 24 high-income countries are directly linked to habitat destruction across more than 7,500 forest species. Shockingly, some of these countries are responsible for up to 15 times more habitat loss overseas than within their own borders.
The researchers used the concept of species range equivalents (SREs) — a metric expressing how much of a species’ range is lost as a result of deforestation. For some countries, this impact was measured in the tens of thousands of lost range units — a devastating toll for biodiversity.
The study links specific commodities — including soy, palm oil, timber, cocoa, and beef — to biodiversity losses in producing regions. The biodiversity footprint of our consumption isn’t abstract. It’s palm oil from Borneo, soy from Brazil, cocoa from Côte d’Ivoire — each hectare cleared chips away at the homes of forest elephants, lemurs, and hundreds of lesser-known species.
Despite its small size, the UK punches far above its weight when it comes to imported deforestation. A WWF and RSPB report revealed that British imports of just seven high-risk commodities — soy (used mainly in animal feed), cocoa, palm oil, beef and leather, paper, rubber, and timber — require land roughly the size of 88 per cent of the UK each year. Much of this comes from countries with high deforestation risk and weak environmental protections.
Hotspots and vanilla booms
Madagascar, Papua New Guinea, and parts of Southeast Asia (especially Borneo and Sumatra) emerged as primary hotspots of biodiversity loss caused by trade from wealthier countries. Madagascar is one of the starkest examples of this trend. Nearly half of all habitat losses traced to wealthy nations occurred there, largely driven by a boom in vanilla farming. The price surge in 2014 was a financial lifeline for local communities, but came at a steep ecological cost: widespread deforestation across the island.
Why this matters
A whopping 90 per cent of global habitat loss is driven by agricultural expansion. And 75 per cent of developed countries contribute more to biodiversity loss abroad than at home. If we don’t address the global consequences of our consumption patterns, efforts to protect nature locally may be undermined entirely.
Conservation paradox
In a paradox highlighted by a University of Cambridge study, efforts to rewild land in Europe — including the UK — could be making the situation worse. When cropland is returned to nature in Europe, it shifts food and timber demand to parts of the world with fewer environmental protections, often in biodiversity-rich regions such as South America and Africa.
‘Areas of much greater importance for nature are likely to pay the price for conservation efforts in wealthy nations,’ warns Professor Andrew Balmford, the study’s lead author. GeographicalUK
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India, China seen aggressively buying palm oil in short term, industry expert says
By Reuters
JAKARTA (Reuters) -Demand for palm oil from India and China is expected to increase in coming months as recent price corrections provide attractive entry points for the big buyers, an industry expert said on Tuesday.
Prices of palm oil in Malaysia gained nearly 20% last year, but shed around 12% so far this year as the high prices led to palm oil losing some competitive edge to rival oils such as soyoil.
"We feel in the short term, those markets will come back. We see heavy buying from India, China," Julian McGill, managing director of advisory firm Glenauk Economics, said.
"We're not worried for the next year about a build up in stocks," he told participants at a palm oil forum in Jakarta.
He noted Indian buyers, who have been cutting palm oil imports since December, are coming back strongly with purchase for June to August as prices of palmolein are at a discount compared to rival oils.
He said China's physical palm oil importers were also actively buying for June to August deliveries.
"The Chinese buyers may stock up quite a lot because their stocks are relatively low," McGill said.
The demand would help keep palm oil prices between 3,900 ringgit and 4,200 ringgit per metric ton in the coming six months, he said.
The main palm oil contract in Malaysian bourse closed at 3,864 ringgit per ton on Tuesday.
The sustainability of the demand would continue to depend on palm price competitiveness against other oils, with peak export volumes seen around August, McGill added. Reuters
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Market Diversification Showing Tangible Results for Malaysian Palm Oil
Over the past five years, Malaysian palm oil exports to its top three markets have faced numerous challenges including health-related concerns, regulatory hurdles and intensified price competition from soft oils.
In 2024, European Union member states (EU27) imported five million tonnes of palm oil, of which 2.7 million were used in the energy sector. However, with the EU Deforestation Regulation (EUDR) scheduled to take effect in December this year and the EU set to phase out palm oil for energy use by 2030 under the Renewable Energy Directive, Malaysian palm oil exports to the region are projected to decline, potentially falling below one million tonnes.
In response to these shifting dynamics, the Malaysian Palm Oil Council (MPOC) launched a five-year road map in 2023 to diversify Malaysian palm oil exports beyond traditional markets by targeting growth markets in Sub-Saharan Africa (SSA), the Middle East and North Africa (Mena) and Asean. The strategy focuses on increasing consumer and public awareness while strengthening engagement with manufacturers and palm oil importers to build trust and long-term partnerships. MPOC sees significant potential for growth in palm oil consumption and demand across these three regions.
To complement this strategic shift, MPOC has realigned its promotional efforts by concentrating its resources on hosting targeted events, business-matching sessions and trade exhibitions across priority regions. Since 2023, MPOC’s flagship event, the Malaysian Palm Oil Forum (MPOF), has been held in Kenya and Egypt, underscoring the council’s commitment to expanding its footprint in SSA and Mena. In 2024, the Malaysian Palm Oil Forum and Trade Networking Visit was organised in Kuala Lumpur, bringing together buyers from SSA, Mena and Asean. The forum drew participation from over 100 buyers representing 30 countries and generated potential sales valued at RM1.24 billion, with most trade enquiries originating from the African continent. The EdgeMY
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Turning waste into fuel and chemicals ― Practical application through collaboration with Indonesia
Professor OGINO Chiaki, Graduate School of Engineering
Creating fuel and chemicals from agricultural waste to revolutionize the industrial structure, that’s the aim of the cutting-edge biomanufacturing research activity based at Kobe University. One key player in this research is Professor OGINO Chiaki, a bioproduction engineering expert at Kobe University’s Graduate School of Engineering. Efforts in a joint research project with agriculture giant Indonesia to attempt to ease climate change and achieve clean energy are gathering attention. We asked Ogino about his ambitions regarding his research and his outlook on social implementation.
Our research aims to change biomass (organic, renewable materials originating from living organisms) into biofuel and chemicals through the power of microorganisms to establish a bio-circular economy. While we are considering using various agricultural waste as raw materials, we’re particularly focused on research and commercialization using wastewater gathered in the extraction process of palm oil. By harnessing the power of microorganisms, we can create biofuel, chemicals and plastic raw materials.
We’ll eventually exhaust our petroleum resources, and certain chemical manufacturing processes release greenhouse gases, a factor for global warming. There will definitely come a turning point where we break free of our current dependency on petroleum resources and focus our efforts on developing a sustainable society. Thus, I strongly believe that research using biomass is exceedingly important.
Technology and manufacturing that can create various products from biomass are called “biorefineries.” Our goal is to transform oil refineries into biorefineries, and we’re looking to create new chemical manufacturing and establish a bio-circular economy. Kobe University
Exporting extinction: How the Rich World Is Driving Global Biodiversity Loss
Western imports are driving deforestation in the global south, reveals a new report
When we think of deforestation, Indonesia’s palm oil plantations or Brazil’s cattle pastures might spring to mind. But a new study from Princeton University reveals that much of the destruction is being outsourced — by wealthy nations. These countries, while appearing green at home, are driving devastating biodiversity loss abroad through their insatiable demand for commodities.
By analysing trade data, species range maps, and deforestation rates from 2001–2015, the researchers found that 24 high-income countries are directly linked to habitat destruction across more than 7,500 forest species. Shockingly, some of these countries are responsible for up to 15 times more habitat loss overseas than within their own borders.
The researchers used the concept of species range equivalents (SREs) — a metric expressing how much of a species’ range is lost as a result of deforestation. For some countries, this impact was measured in the tens of thousands of lost range units — a devastating toll for biodiversity.
The study links specific commodities — including soy, palm oil, timber, cocoa, and beef — to biodiversity losses in producing regions. The biodiversity footprint of our consumption isn’t abstract. It’s palm oil from Borneo, soy from Brazil, cocoa from Côte d’Ivoire — each hectare cleared chips away at the homes of forest elephants, lemurs, and hundreds of lesser-known species.
Despite its small size, the UK punches far above its weight when it comes to imported deforestation. A WWF and RSPB report revealed that British imports of just seven high-risk commodities — soy (used mainly in animal feed), cocoa, palm oil, beef and leather, paper, rubber, and timber — require land roughly the size of 88 per cent of the UK each year. Much of this comes from countries with high deforestation risk and weak environmental protections.
Hotspots and vanilla booms
Madagascar, Papua New Guinea, and parts of Southeast Asia (especially Borneo and Sumatra) emerged as primary hotspots of biodiversity loss caused by trade from wealthier countries. Madagascar is one of the starkest examples of this trend. Nearly half of all habitat losses traced to wealthy nations occurred there, largely driven by a boom in vanilla farming. The price surge in 2014 was a financial lifeline for local communities, but came at a steep ecological cost: widespread deforestation across the island.
Why this matters
A whopping 90 per cent of global habitat loss is driven by agricultural expansion. And 75 per cent of developed countries contribute more to biodiversity loss abroad than at home. If we don’t address the global consequences of our consumption patterns, efforts to protect nature locally may be undermined entirely.
Conservation paradox
In a paradox highlighted by a University of Cambridge study, efforts to rewild land in Europe — including the UK — could be making the situation worse. When cropland is returned to nature in Europe, it shifts food and timber demand to parts of the world with fewer environmental protections, often in biodiversity-rich regions such as South America and Africa.
‘Areas of much greater importance for nature are likely to pay the price for conservation efforts in wealthy nations,’ warns Professor Andrew Balmford, the study’s lead author. GeographicalUK
---------
India, China seen aggressively buying palm oil in short term, industry expert says
By Reuters
JAKARTA (Reuters) -Demand for palm oil from India and China is expected to increase in coming months as recent price corrections provide attractive entry points for the big buyers, an industry expert said on Tuesday.
Prices of palm oil in Malaysia gained nearly 20% last year, but shed around 12% so far this year as the high prices led to palm oil losing some competitive edge to rival oils such as soyoil.
"We feel in the short term, those markets will come back. We see heavy buying from India, China," Julian McGill, managing director of advisory firm Glenauk Economics, said.
"We're not worried for the next year about a build up in stocks," he told participants at a palm oil forum in Jakarta.
He noted Indian buyers, who have been cutting palm oil imports since December, are coming back strongly with purchase for June to August as prices of palmolein are at a discount compared to rival oils.
He said China's physical palm oil importers were also actively buying for June to August deliveries.
"The Chinese buyers may stock up quite a lot because their stocks are relatively low," McGill said.
The demand would help keep palm oil prices between 3,900 ringgit and 4,200 ringgit per metric ton in the coming six months, he said.
The main palm oil contract in Malaysian bourse closed at 3,864 ringgit per ton on Tuesday.
The sustainability of the demand would continue to depend on palm price competitiveness against other oils, with peak export volumes seen around August, McGill added. Reuters
---------
Market Diversification Showing Tangible Results for Malaysian Palm Oil
Over the past five years, Malaysian palm oil exports to its top three markets have faced numerous challenges including health-related concerns, regulatory hurdles and intensified price competition from soft oils.
In 2024, European Union member states (EU27) imported five million tonnes of palm oil, of which 2.7 million were used in the energy sector. However, with the EU Deforestation Regulation (EUDR) scheduled to take effect in December this year and the EU set to phase out palm oil for energy use by 2030 under the Renewable Energy Directive, Malaysian palm oil exports to the region are projected to decline, potentially falling below one million tonnes.
In response to these shifting dynamics, the Malaysian Palm Oil Council (MPOC) launched a five-year road map in 2023 to diversify Malaysian palm oil exports beyond traditional markets by targeting growth markets in Sub-Saharan Africa (SSA), the Middle East and North Africa (Mena) and Asean. The strategy focuses on increasing consumer and public awareness while strengthening engagement with manufacturers and palm oil importers to build trust and long-term partnerships. MPOC sees significant potential for growth in palm oil consumption and demand across these three regions.
To complement this strategic shift, MPOC has realigned its promotional efforts by concentrating its resources on hosting targeted events, business-matching sessions and trade exhibitions across priority regions. Since 2023, MPOC’s flagship event, the Malaysian Palm Oil Forum (MPOF), has been held in Kenya and Egypt, underscoring the council’s commitment to expanding its footprint in SSA and Mena. In 2024, the Malaysian Palm Oil Forum and Trade Networking Visit was organised in Kuala Lumpur, bringing together buyers from SSA, Mena and Asean. The forum drew participation from over 100 buyers representing 30 countries and generated potential sales valued at RM1.24 billion, with most trade enquiries originating from the African continent. The EdgeMY
---------
Turning waste into fuel and chemicals ― Practical application through collaboration with Indonesia
Professor OGINO Chiaki, Graduate School of Engineering
Creating fuel and chemicals from agricultural waste to revolutionize the industrial structure, that’s the aim of the cutting-edge biomanufacturing research activity based at Kobe University. One key player in this research is Professor OGINO Chiaki, a bioproduction engineering expert at Kobe University’s Graduate School of Engineering. Efforts in a joint research project with agriculture giant Indonesia to attempt to ease climate change and achieve clean energy are gathering attention. We asked Ogino about his ambitions regarding his research and his outlook on social implementation.
Our research aims to change biomass (organic, renewable materials originating from living organisms) into biofuel and chemicals through the power of microorganisms to establish a bio-circular economy. While we are considering using various agricultural waste as raw materials, we’re particularly focused on research and commercialization using wastewater gathered in the extraction process of palm oil. By harnessing the power of microorganisms, we can create biofuel, chemicals and plastic raw materials.
We’ll eventually exhaust our petroleum resources, and certain chemical manufacturing processes release greenhouse gases, a factor for global warming. There will definitely come a turning point where we break free of our current dependency on petroleum resources and focus our efforts on developing a sustainable society. Thus, I strongly believe that research using biomass is exceedingly important.
Technology and manufacturing that can create various products from biomass are called “biorefineries.” Our goal is to transform oil refineries into biorefineries, and we’re looking to create new chemical manufacturing and establish a bio-circular economy. Kobe University
June 10, 2025
Trade Breakthrough Ahead: Indonesia–EU CEPA
Nearly nine years since talks first began, Indonesia and the European Union are finally on the verge of concluding the Indonesia–EU Comprehensive Economic Partnership Agreement (IEU-CEPA). The free trade agreement, which has gone through 19 rounds of negotiations, is now in its final stage, with both parties expecting a formal conclusion by the end of June 2025.
For Indonesia, the deal represents a critical step in diversifying its trade partners, while for the EU, it offers a new foothold in one of Southeast Asia’s most important economies.
Timeline of negotiations: 2016 to 2025
Talks for the Indonesia–EU CEPA began in July 2016 after a joint scoping exercise identified shared priorities in trade and investment. Initial progress was slow due to differences on palm oil, investment protections, and local content rules. By 2020, negotiations had reached core technical chapters, including rules of origin and dispute settlement.
Following delays during the pandemic, momentum resumed in 2023, with significant breakthroughs in automotive access and critical mineral provisions. The 19th negotiation round in July 2024 addressed final issues on market access and public procurement. As of June 2025, both sides are in the finalization phase, with the agreement expected to be concluded by the end of the month before entering legal review and ratification.
A comprehensive agreement with strategic depth
The CEPA offers a broad framework for liberalizing trade in goods and services, improving investment protections, and enhancing regulatory cooperation. Approximately 80 percent of Indonesia’s exports to the EU, especially apparel, footwear, palm oil, fisheries, and automotive components, will receive immediate or phased zero-tariff treatment. The EU, in turn, gains improved access for its machinery, chemicals, and manufactured goods.
Under the agreement, Indonesia’s textile and footwear exports will see tariff eliminations on day one, while processed palm oil and EV battery components will be liberalized gradually over five years. These measures are expected to significantly lower costs for Indonesian exporters and increase EU access to affordable raw materials and consumer goods.
Expanding Indonesia’s export performance and industrial development
For Indonesia, the IEU-CEPA supports both short-term trade growth and long-term industrial advancement. With EU investors expected to scale up operations in electric vehicles, critical minerals, and digital infrastructure, the agreement will help Indonesia shift toward higher-value industrial development. Exporters will benefit from tariff eliminations and streamlined customs procedures, particularly in labor-intensive sectors like apparel and seafood.
Indonesia’s trade surplus with the EU increased from US$2.5 billion in 2023 to US$4.5 billion in 2024, and government projections suggest exports to the EU could rise by more than 50 percent within the first three to four years of implementation.
This aligns with the country’s strategy of boosting downstream processing in nickel and other mineral-based industries.
New opportunities for European companies in a strategic market
European businesses will benefit from preferential trade terms and stronger investment protections in Indonesia’s expanding economy. The CEPA opens access to key service sectors, including logistics, telecommunications, and financial services, with commitments to reduce equity restrictions and grant national treatment to EU firms. Investment protections are also strengthened through binding dispute resolution mechanisms, offering greater legal certainty for European investors.
In 2024, total FDI inflows into Indonesia reached US$55.3 billion — a 21 percent increase over the previous year. During the final quarter of 2024 alone, Indonesia attracted US$3.4 billion in base metals investment, US$2.1 billion in paper, and US$1.3 billion in mining. EU FDI stock in Indonesia totaled €25.1 billion by the end of 2023, with investors particularly active in high-value manufacturing and infrastructure development.
Major European firms such as BASF, Unilever, and TotalEnergies already operate in Indonesia and are expected to expand their presence under the improved legal environment. On the Indonesian side, textile manufacturers, seafood exporters, and companies in the nickel processing sector stand to gain faster, more predictable access to the EU market.
Policy gaps and regulatory risks remain
Despite the momentum, several structural concerns remain unresolved. Indonesia seeks to retain control over local content rules, import licensing systems, and resource management frameworks. At the same time, the EU continues to push for improved investment protection, regulatory clarity, and transparency.
The agreement includes commitments on licensing procedures and data transparency, but does not fully address EU concerns over localization requirements in areas such as EV batteries or cloud computing. Previous Indonesian restrictions on imports of horticultural and animal products had led to WTO disputes, and similar issues may reemerge if CEPA provisions are not properly implemented.
Legal certainty and dispute enforcement also remain sensitive areas. While CEPA offers investor–state dispute mechanisms, some EU stakeholders remain cautious about overlapping regulatory authorities and the unpredictability of Indonesia’s subnational governance environment.
A defining moment for ASEAN–EU trade relations
If concluded and ratified, the IEU-CEPA will become one of the EU’s most comprehensive trade agreements with an ASEAN country. It sets a high standard for regional engagement and opens early-mover advantages for businesses on both sides. The agreement also reflects a shifting global trade landscape — one where strategic bilateralism is reshaping regional integration. ASEAN Briefing
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Indonesia’s Defense Minister Signals Strategic Energy Shift with South Papua Biodiesel Project
by Senaman (West Papua Voice) On a mission that blends national energy ambition with regional development, Indonesia’s Minister of Defense, Prabowo Subianto, visited South Papua to inspect the progress of the palm-oil-based biodiesel program—an initiative seen as central to transforming the province into a future energy powerhouse.
The inspection, which took place in early June 2025, brought together government officials, private sector leaders, and local community representatives in a collaborative review of the region’s rapidly evolving palm oil sector. At the center of the visit was a large-scale biodiesel pilot project in Merauke, which aims to turn palm oil into a strategic energy resource while boosting local economic development.
Strategic Energy Imperative
Speaking to reporters during his tour, Prabowo emphasized that Indonesia must accelerate its efforts toward energy self-reliance. “Biodiesel is a strategic step to ensure energy sovereignty,” he stated. “We cannot rely indefinitely on fossil fuels or imports. What we’re developing here in South Papua is part of a long-term national vision.”
The government is reportedly targeting the region as one of the primary sources of raw materials for biodiesel production, especially as global energy dynamics shift and sustainability becomes a more urgent priority. The biodiesel project in South Papua, backed by both state and private investments, is seen as a pilot that could serve as a blueprint for replication in other biodiverse and underdeveloped regions of the country.
Palm Oil as a Power Source
Indonesia is already the world’s largest producer of palm oil, but until now, its downstream utilization—particularly for biofuel—has remained under-leveraged. The initiative in South Papua seeks to address this by establishing a full-cycle production system: from plantation and processing to distribution and commercial use.
The facility visited by the minister includes a biodiesel processing plant equipped with advanced refining capabilities, allowing for efficient conversion of crude palm oil (CPO) into high-quality biodiesel. The project also integrates smallholder farmers, encouraging inclusive growth and sustainable agriculture practices.
The project also benefits from the regulatory push under Indonesia’s national biodiesel mandate, which currently requires a mix of at least 35% biofuel in all diesel products (B35), with higher targets anticipated in the future.
National Security Lens
Interestingly, Prabowo’s presence in the region wasn’t just symbolic. As Defense Minister, his involvement underscores a growing recognition in Indonesia that energy security is an essential pillar of national security.
Sources close to the Ministry indicated that the South Papua biodiesel project is being viewed as a dual-use strategic asset—reducing Indonesia’s reliance on imported oil while also serving as a critical reserve in case of energy disruptions.
Moreover, the Defense Ministry is studying ways to integrate biofuel into military operations, from logistics to tactical field applications, particularly in remote and border regions.
Challenges and Criticism
Despite the optimism, the project is not without critics. Environmental groups have raised concerns about the impact of large-scale palm oil plantations on forest cover and indigenous land rights. Some also warn of potential over-dependence on monoculture crops in ecologically sensitive areas.
The idea resonates with broader development plans that seek to decentralize growth and shift focus from overcrowded Java to the archipelago’s eastern frontiers.
In that sense, the biodiesel project is more than just an energy experiment. It is a test case for a new development model—one that fuses national strategy, local empowerment, and global sustainability standards.
The program represents not only a national energy initiative but also a blueprint for sustainable, inclusive development in remote regions. While offering strong economic and security potential, its long-term success hinges on environmental stewardship, fair land use, and robust infrastructure. If managed well, South Papua could emerge as a key player in Indonesia’s green energy future. READ MORE
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Malaysian agencies, Japanese firms sign MOUs on commodities sector’s sustainability
KUALA LUMPUR, June 9 — Malaysian agencies have entered into five memoranda of understanding (MoUs) with Japanese companies in conjunction with the Plantation and Commodities Ministry (KPK) Week, held at the Malaysia Pavilion of Expo 2025 Osaka, to advance sustainability, innovation, and market access across key commodities sectors.
In a statement today, the Investment, Trade, and Industry Ministry (Miti) said the MOU signings signal growing bilateral cooperation and shared ambitions for sustainable development
In his opening remarks for KPK Week, KPK deputy secretary-general (strategic planning and management) Datuk Abdul Hadi Omar said these MOUs reflect Malaysia’s leadership in sustainable and value-added commodities.
“The MOUs also pave the way for innovative cross-border collaborations with Japan’s forward-looking business community,” he said.
Miti noted that a key highlight of the day’s signings was the MOU between MSPO and Japan-based Global Alliance for Sustainable Supply Chain (ASSC), aimed at raising awareness of MSPO certification and sustainable palm oil practices among Japanese companies.
This includes promoting deforestation-free supply chains and upholding human rights standards.
“ASSC will advocate MSPO to its wide corporate network in Japan, offering MSPO access to members such as Ajinomoto, Nissin Foods, AEON, Shiseido, Meiji Holdings, and KAO, further strengthening market linkages,” it said.
Meanwhile, MPOB and Panasonic Housing Solutions Co Ltd signed an agreement to jointly conduct research and consultancy on the development of insulation boards made from oil palm biomass, specifically empty fruit bunch fibres.
The project aimed to transform agricultural waste into valuable and environmentally friendly building materials, contributing to circular economy objectives within Malaysia’s palm oil sector.
Additionally, MPOB entered into a collaborative agreement with Japan’s Asano Gear Factory Co Ltd to advance mechanisation technologies for Malaysia’s palm oil industry.
“The collaboration is expected to generate a minimum of RM5 million per year in potential value through the budgeted sales volume of technology and spare parts, as well as direct investment into Malaysia,” Miti said.
Running from June 9 to June 14, KPK Week will feature a series of business forums, business-to-business networking sessions, product showcases, and cultural engagements aimed at deepening collaboration between Malaysia and Japan in key commodity sectors. Selangor Journal
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Malaysia allocates RM100 million for smallholder replanting scheme
NABAWAN: The Government has allocated RM100 million to support oil palm smallholders nationwide through the latest Replanting Financing Incentive Scheme for Oil Palm Smallholders (TSPKS 2.0).
Under this scheme, the Malaysian Palm Oil Board (MPOB), in collaboration with Agrobank, aims to see over 1,500 smallholders benefit from replanting activities across nearly 6,000 hectares.
Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said the initiative is crucial to boosting productivity and income, particularly among smallholders in Sabah.
He added that the Government, through MPOB, also provides various forms of support to help smallholders obtain the Malaysian Sustainable Palm Oil (MSPO) certification. These include certification fees, training on Good Agricultural Practices (GAP), personal protective equipment (PPE) and chemical storage racks.
“To date, 571 applications have been approved in Sabah, covering more than 2,500 hectares of oil palm plantations,” he said.
He was speaking to the media after officiating at the MSPO Strengthening Programme and TSPKS 2.0 at the District Council open hall here on Monday. Also present were Deputy Agriculture and Food Security Minister Datuk Arthur Joseph Kurup, who is also Pensiangan MP; Sabah Land Development Board (SLDB) Chairman Datuk Abdul Ghani Mohamed Yassin, who is also Nabawan Assemblyman; and Nabawan District Officer Marshal Anthony.
Chan fears, that Malaysia’s palm oil industry is currently facing major challenges, including accusations by external parties linking palm oil cultivation to environmental destruction, deforestation and loss of natural habitats.
He said such issues have, to some extent, affected Malaysia’s palm oil image and marketability on the international stage.
“To counter these negative perceptions, the Government introduced and implemented the MSPO certification as a strategic measure to ensure Malaysia’s palm oil production is sustainable and complies with global standards,” he said.
According to him, the MSPO scheme not only enhances global market acceptance but also benefits smallholders through improved GAP, environmental conservation and increased product quality –ultimately leading to higher incomes.
As of April 30 2025, a total of 30,768 smallholders in Sabah have obtained MSPO certification, covering 191,204.27 hectares – representing 97.62 per cent of the certification rate in the State. For the Sustainable Palm Oil Cluster (SPOC) S11 (Pensiangan) cluster, 1,211 smallholders have been certified, covering 7,679.41 hectares.
The MSPO scheme also includes support and guidance from MPOB’s Tunas officers, the provision of plantation signage and a RM200 incentive to assist with land title amendment applications.
This initiative aims to ensure compliance with MSPO standards and enhance the international market acceptance of smallholder-produced palm oil.
At the same time, Chan highlighted the important role of cooperatives formed under the SPOC in uniting smallholders, enabling joint economic and social activities that benefit members. To date, 162 SPOCs have been established nationwide, demonstrating the Government’s commitment to strengthening the palm oil sector at the grassroots level.
Additionally, the Government through MPOB has introduced the Crop Integration with Oil Palm Incentive Scheme (ITa), aimed at increasing smallholders’ income by integrating cash crops such as bananas, maize, watermelon, papaya and pineapple. The scheme has been further enhanced to include lemongrass and mushrooms.
“In parallel, the Government via MPOB has also implemented the Livestock Integration with Oil Palm Incentive Scheme (ITe), which aims to diversify smallholders’ income sources,” he said.
As of April 30 this year, a total of 430 livestock integration projects and 83 crop integration projects have been approved in Sabah, including a pineapple planting project in Pensiangan.
To further support smallholders’ socioeconomic sustainability, Chan said MPOB is promoting the establishment of Sustainable Oil Palm Growers’ Cooperatives (KPSM) to unify and empower independent smallholders, while encouraging cooperation to boost incomes.
To date, 70 KPSMs have been formed with a total membership of 8,811 nationwide. Of these, 28 are based in Sabah, with nearly 2,853 members.
He said KPSMs have successfully undertaken income-generating activities such as selling downstream products, fertilisers and fresh fruit bunches (FFB) directly to palm oil mills in bulk.
As of April 30 this year, total FFB sales by the 70 KPSMs nationwide have reached 87,124.03 metric tonnes.
Chan also presented mock cheques for the TSPKS scheme, MSPO certificates, and oil palm smallholder licences. Daily Express
Trade Breakthrough Ahead: Indonesia–EU CEPA
Nearly nine years since talks first began, Indonesia and the European Union are finally on the verge of concluding the Indonesia–EU Comprehensive Economic Partnership Agreement (IEU-CEPA). The free trade agreement, which has gone through 19 rounds of negotiations, is now in its final stage, with both parties expecting a formal conclusion by the end of June 2025.
For Indonesia, the deal represents a critical step in diversifying its trade partners, while for the EU, it offers a new foothold in one of Southeast Asia’s most important economies.
Timeline of negotiations: 2016 to 2025
Talks for the Indonesia–EU CEPA began in July 2016 after a joint scoping exercise identified shared priorities in trade and investment. Initial progress was slow due to differences on palm oil, investment protections, and local content rules. By 2020, negotiations had reached core technical chapters, including rules of origin and dispute settlement.
Following delays during the pandemic, momentum resumed in 2023, with significant breakthroughs in automotive access and critical mineral provisions. The 19th negotiation round in July 2024 addressed final issues on market access and public procurement. As of June 2025, both sides are in the finalization phase, with the agreement expected to be concluded by the end of the month before entering legal review and ratification.
A comprehensive agreement with strategic depth
The CEPA offers a broad framework for liberalizing trade in goods and services, improving investment protections, and enhancing regulatory cooperation. Approximately 80 percent of Indonesia’s exports to the EU, especially apparel, footwear, palm oil, fisheries, and automotive components, will receive immediate or phased zero-tariff treatment. The EU, in turn, gains improved access for its machinery, chemicals, and manufactured goods.
Under the agreement, Indonesia’s textile and footwear exports will see tariff eliminations on day one, while processed palm oil and EV battery components will be liberalized gradually over five years. These measures are expected to significantly lower costs for Indonesian exporters and increase EU access to affordable raw materials and consumer goods.
Expanding Indonesia’s export performance and industrial development
For Indonesia, the IEU-CEPA supports both short-term trade growth and long-term industrial advancement. With EU investors expected to scale up operations in electric vehicles, critical minerals, and digital infrastructure, the agreement will help Indonesia shift toward higher-value industrial development. Exporters will benefit from tariff eliminations and streamlined customs procedures, particularly in labor-intensive sectors like apparel and seafood.
Indonesia’s trade surplus with the EU increased from US$2.5 billion in 2023 to US$4.5 billion in 2024, and government projections suggest exports to the EU could rise by more than 50 percent within the first three to four years of implementation.
This aligns with the country’s strategy of boosting downstream processing in nickel and other mineral-based industries.
New opportunities for European companies in a strategic market
European businesses will benefit from preferential trade terms and stronger investment protections in Indonesia’s expanding economy. The CEPA opens access to key service sectors, including logistics, telecommunications, and financial services, with commitments to reduce equity restrictions and grant national treatment to EU firms. Investment protections are also strengthened through binding dispute resolution mechanisms, offering greater legal certainty for European investors.
In 2024, total FDI inflows into Indonesia reached US$55.3 billion — a 21 percent increase over the previous year. During the final quarter of 2024 alone, Indonesia attracted US$3.4 billion in base metals investment, US$2.1 billion in paper, and US$1.3 billion in mining. EU FDI stock in Indonesia totaled €25.1 billion by the end of 2023, with investors particularly active in high-value manufacturing and infrastructure development.
Major European firms such as BASF, Unilever, and TotalEnergies already operate in Indonesia and are expected to expand their presence under the improved legal environment. On the Indonesian side, textile manufacturers, seafood exporters, and companies in the nickel processing sector stand to gain faster, more predictable access to the EU market.
Policy gaps and regulatory risks remain
Despite the momentum, several structural concerns remain unresolved. Indonesia seeks to retain control over local content rules, import licensing systems, and resource management frameworks. At the same time, the EU continues to push for improved investment protection, regulatory clarity, and transparency.
The agreement includes commitments on licensing procedures and data transparency, but does not fully address EU concerns over localization requirements in areas such as EV batteries or cloud computing. Previous Indonesian restrictions on imports of horticultural and animal products had led to WTO disputes, and similar issues may reemerge if CEPA provisions are not properly implemented.
Legal certainty and dispute enforcement also remain sensitive areas. While CEPA offers investor–state dispute mechanisms, some EU stakeholders remain cautious about overlapping regulatory authorities and the unpredictability of Indonesia’s subnational governance environment.
A defining moment for ASEAN–EU trade relations
If concluded and ratified, the IEU-CEPA will become one of the EU’s most comprehensive trade agreements with an ASEAN country. It sets a high standard for regional engagement and opens early-mover advantages for businesses on both sides. The agreement also reflects a shifting global trade landscape — one where strategic bilateralism is reshaping regional integration. ASEAN Briefing
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Indonesia’s Defense Minister Signals Strategic Energy Shift with South Papua Biodiesel Project
by Senaman (West Papua Voice) On a mission that blends national energy ambition with regional development, Indonesia’s Minister of Defense, Prabowo Subianto, visited South Papua to inspect the progress of the palm-oil-based biodiesel program—an initiative seen as central to transforming the province into a future energy powerhouse.
The inspection, which took place in early June 2025, brought together government officials, private sector leaders, and local community representatives in a collaborative review of the region’s rapidly evolving palm oil sector. At the center of the visit was a large-scale biodiesel pilot project in Merauke, which aims to turn palm oil into a strategic energy resource while boosting local economic development.
Strategic Energy Imperative
Speaking to reporters during his tour, Prabowo emphasized that Indonesia must accelerate its efforts toward energy self-reliance. “Biodiesel is a strategic step to ensure energy sovereignty,” he stated. “We cannot rely indefinitely on fossil fuels or imports. What we’re developing here in South Papua is part of a long-term national vision.”
The government is reportedly targeting the region as one of the primary sources of raw materials for biodiesel production, especially as global energy dynamics shift and sustainability becomes a more urgent priority. The biodiesel project in South Papua, backed by both state and private investments, is seen as a pilot that could serve as a blueprint for replication in other biodiverse and underdeveloped regions of the country.
Palm Oil as a Power Source
Indonesia is already the world’s largest producer of palm oil, but until now, its downstream utilization—particularly for biofuel—has remained under-leveraged. The initiative in South Papua seeks to address this by establishing a full-cycle production system: from plantation and processing to distribution and commercial use.
The facility visited by the minister includes a biodiesel processing plant equipped with advanced refining capabilities, allowing for efficient conversion of crude palm oil (CPO) into high-quality biodiesel. The project also integrates smallholder farmers, encouraging inclusive growth and sustainable agriculture practices.
The project also benefits from the regulatory push under Indonesia’s national biodiesel mandate, which currently requires a mix of at least 35% biofuel in all diesel products (B35), with higher targets anticipated in the future.
National Security Lens
Interestingly, Prabowo’s presence in the region wasn’t just symbolic. As Defense Minister, his involvement underscores a growing recognition in Indonesia that energy security is an essential pillar of national security.
Sources close to the Ministry indicated that the South Papua biodiesel project is being viewed as a dual-use strategic asset—reducing Indonesia’s reliance on imported oil while also serving as a critical reserve in case of energy disruptions.
Moreover, the Defense Ministry is studying ways to integrate biofuel into military operations, from logistics to tactical field applications, particularly in remote and border regions.
Challenges and Criticism
Despite the optimism, the project is not without critics. Environmental groups have raised concerns about the impact of large-scale palm oil plantations on forest cover and indigenous land rights. Some also warn of potential over-dependence on monoculture crops in ecologically sensitive areas.
The idea resonates with broader development plans that seek to decentralize growth and shift focus from overcrowded Java to the archipelago’s eastern frontiers.
In that sense, the biodiesel project is more than just an energy experiment. It is a test case for a new development model—one that fuses national strategy, local empowerment, and global sustainability standards.
The program represents not only a national energy initiative but also a blueprint for sustainable, inclusive development in remote regions. While offering strong economic and security potential, its long-term success hinges on environmental stewardship, fair land use, and robust infrastructure. If managed well, South Papua could emerge as a key player in Indonesia’s green energy future. READ MORE
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Malaysian agencies, Japanese firms sign MOUs on commodities sector’s sustainability
KUALA LUMPUR, June 9 — Malaysian agencies have entered into five memoranda of understanding (MoUs) with Japanese companies in conjunction with the Plantation and Commodities Ministry (KPK) Week, held at the Malaysia Pavilion of Expo 2025 Osaka, to advance sustainability, innovation, and market access across key commodities sectors.
In a statement today, the Investment, Trade, and Industry Ministry (Miti) said the MOU signings signal growing bilateral cooperation and shared ambitions for sustainable development
In his opening remarks for KPK Week, KPK deputy secretary-general (strategic planning and management) Datuk Abdul Hadi Omar said these MOUs reflect Malaysia’s leadership in sustainable and value-added commodities.
“The MOUs also pave the way for innovative cross-border collaborations with Japan’s forward-looking business community,” he said.
Miti noted that a key highlight of the day’s signings was the MOU between MSPO and Japan-based Global Alliance for Sustainable Supply Chain (ASSC), aimed at raising awareness of MSPO certification and sustainable palm oil practices among Japanese companies.
This includes promoting deforestation-free supply chains and upholding human rights standards.
“ASSC will advocate MSPO to its wide corporate network in Japan, offering MSPO access to members such as Ajinomoto, Nissin Foods, AEON, Shiseido, Meiji Holdings, and KAO, further strengthening market linkages,” it said.
Meanwhile, MPOB and Panasonic Housing Solutions Co Ltd signed an agreement to jointly conduct research and consultancy on the development of insulation boards made from oil palm biomass, specifically empty fruit bunch fibres.
The project aimed to transform agricultural waste into valuable and environmentally friendly building materials, contributing to circular economy objectives within Malaysia’s palm oil sector.
Additionally, MPOB entered into a collaborative agreement with Japan’s Asano Gear Factory Co Ltd to advance mechanisation technologies for Malaysia’s palm oil industry.
“The collaboration is expected to generate a minimum of RM5 million per year in potential value through the budgeted sales volume of technology and spare parts, as well as direct investment into Malaysia,” Miti said.
Running from June 9 to June 14, KPK Week will feature a series of business forums, business-to-business networking sessions, product showcases, and cultural engagements aimed at deepening collaboration between Malaysia and Japan in key commodity sectors. Selangor Journal
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Malaysia allocates RM100 million for smallholder replanting scheme
NABAWAN: The Government has allocated RM100 million to support oil palm smallholders nationwide through the latest Replanting Financing Incentive Scheme for Oil Palm Smallholders (TSPKS 2.0).
Under this scheme, the Malaysian Palm Oil Board (MPOB), in collaboration with Agrobank, aims to see over 1,500 smallholders benefit from replanting activities across nearly 6,000 hectares.
Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said the initiative is crucial to boosting productivity and income, particularly among smallholders in Sabah.
He added that the Government, through MPOB, also provides various forms of support to help smallholders obtain the Malaysian Sustainable Palm Oil (MSPO) certification. These include certification fees, training on Good Agricultural Practices (GAP), personal protective equipment (PPE) and chemical storage racks.
“To date, 571 applications have been approved in Sabah, covering more than 2,500 hectares of oil palm plantations,” he said.
He was speaking to the media after officiating at the MSPO Strengthening Programme and TSPKS 2.0 at the District Council open hall here on Monday. Also present were Deputy Agriculture and Food Security Minister Datuk Arthur Joseph Kurup, who is also Pensiangan MP; Sabah Land Development Board (SLDB) Chairman Datuk Abdul Ghani Mohamed Yassin, who is also Nabawan Assemblyman; and Nabawan District Officer Marshal Anthony.
Chan fears, that Malaysia’s palm oil industry is currently facing major challenges, including accusations by external parties linking palm oil cultivation to environmental destruction, deforestation and loss of natural habitats.
He said such issues have, to some extent, affected Malaysia’s palm oil image and marketability on the international stage.
“To counter these negative perceptions, the Government introduced and implemented the MSPO certification as a strategic measure to ensure Malaysia’s palm oil production is sustainable and complies with global standards,” he said.
According to him, the MSPO scheme not only enhances global market acceptance but also benefits smallholders through improved GAP, environmental conservation and increased product quality –ultimately leading to higher incomes.
As of April 30 2025, a total of 30,768 smallholders in Sabah have obtained MSPO certification, covering 191,204.27 hectares – representing 97.62 per cent of the certification rate in the State. For the Sustainable Palm Oil Cluster (SPOC) S11 (Pensiangan) cluster, 1,211 smallholders have been certified, covering 7,679.41 hectares.
The MSPO scheme also includes support and guidance from MPOB’s Tunas officers, the provision of plantation signage and a RM200 incentive to assist with land title amendment applications.
This initiative aims to ensure compliance with MSPO standards and enhance the international market acceptance of smallholder-produced palm oil.
At the same time, Chan highlighted the important role of cooperatives formed under the SPOC in uniting smallholders, enabling joint economic and social activities that benefit members. To date, 162 SPOCs have been established nationwide, demonstrating the Government’s commitment to strengthening the palm oil sector at the grassroots level.
Additionally, the Government through MPOB has introduced the Crop Integration with Oil Palm Incentive Scheme (ITa), aimed at increasing smallholders’ income by integrating cash crops such as bananas, maize, watermelon, papaya and pineapple. The scheme has been further enhanced to include lemongrass and mushrooms.
“In parallel, the Government via MPOB has also implemented the Livestock Integration with Oil Palm Incentive Scheme (ITe), which aims to diversify smallholders’ income sources,” he said.
As of April 30 this year, a total of 430 livestock integration projects and 83 crop integration projects have been approved in Sabah, including a pineapple planting project in Pensiangan.
To further support smallholders’ socioeconomic sustainability, Chan said MPOB is promoting the establishment of Sustainable Oil Palm Growers’ Cooperatives (KPSM) to unify and empower independent smallholders, while encouraging cooperation to boost incomes.
To date, 70 KPSMs have been formed with a total membership of 8,811 nationwide. Of these, 28 are based in Sabah, with nearly 2,853 members.
He said KPSMs have successfully undertaken income-generating activities such as selling downstream products, fertilisers and fresh fruit bunches (FFB) directly to palm oil mills in bulk.
As of April 30 this year, total FFB sales by the 70 KPSMs nationwide have reached 87,124.03 metric tonnes.
Chan also presented mock cheques for the TSPKS scheme, MSPO certificates, and oil palm smallholder licences. Daily Express
June 09, 2025
Indonesia to conclude 9 years of free trade negotiations with the EU
Indonesia will get zero tariffs for 80 per cent of its exports and removal of non-tariff barriers as it pushes for market access
JAKARTA, June 7 (Reuters) - Indonesia said on Saturday that free trade negotiations with the European Union, which have been ongoing for nine years, are expected to be concluded by the end of June.
Airlangga Hartarto, the chief economic minister for Southeast Asia's biggest economy, met with EU Commissioner for Trade Maros Sefcovic in Brussels on Friday.
"Indonesia and the European Union have agreed to conclude outstanding issues and we are ready to announce a conclusion of substantial negotiations by the end of June 2025," Airlangga Hartarto said in a statement.
Indonesia will get zero tariffs for 80% of its export products to the EU and removal of non-tariff barriers, as it pushes for bigger market access for footwear, garments, palm oil and fishery products, Airlanga told a press conference later on Saturday.
The EU has discussed Jakarta's rules on mandatory use of local content in products sold in Indonesian market, the automotive industry, trade of critical minerals and investment facilities, Airlangga said.
Indonesia and the EU have previously disagreed on EU trade rules for products with potential links to deforestation that could affect Indonesian palm oil.
Airlangga said the bloc's deforestation rules were not part of the free trade negotiations, but Sefcovic had "promised to provide special treatment towards Indonesia regarding deforestation." He did not elaborate.
Denis Chaibi, EU ambassador to Indonesia, said that talks were ongoing and "we will communicate in details when we have an outcome." Chaibi did not respond to a question about the special treatment.
The EU is Indonesia's fifth-biggest trade partner, with total trade between the two reaching 27.3 billion euros ($31.11 billion) last year, according to the EU. Exports from the bloc were worth 9.7 billion euros in 2024, and it imported 17.5 billion euros' worth from Indonesia.
Indonesian exports to the bloc could increase by more than 50% within three to four years after the trade deal takes effect, Airlangga said. Reuters
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Why its watering down of sustainability rules is classic EU fudge
Last month the Commission placed all 27 countries in a ‘low risk’ category for deforestation – a classic EU fudge paying lip service to the fight against climate change at a time of widespread forest degradation and illegal logging in Europe.
For new legislation bearing all the hallmarks of those words ‘Classic EU Fudge’ it’s hard to beat the trading bloc’s sustainability laws, which just keep getting watered down.
Consider the sheer chutzpah of calls last week by Emmanuel Macron and Friedrich Merz to scrap due diligence rules requiring companies to monitor their global supply chain for human rights abuses and environmental damage.
The French and German leaders are repeating demands first spouted by the far right for the legislation to the scrapped – along with the rest of the EU’s Green Deal.
Strange bedfellows indeed but an indication of how Europe has tilted right and moved the goalposts with the Omnibus Simplification Package's less ambitious environmental targets.
The starkest example of this backing away from its lofty, earlier commitments is the EU’s anti-deforestation laws. These didn’t just get watered down. They aren’t even getting off the ground, having been postponed at the eleventh hour in December and now facing calls for a further delay.
The EU is also being accused of favouritism towards member states while penalising Asian countries who say they have been marked down as drivers of deforestation based on outdated data.
The EU Deforestation-free Regulation (EUDR) was passed with great fanfare two years ago, hailed by environmentalists for its pledge to cut global deforestation by 10%. It would ensure that commodities such as cocoa, coffee, palm oil, cattle, soy, rubber and wood could not be sold on the EU market if they had been sourced from deforested land after 2020.
Since the December delay, when member states as well as suppliers complained they weren’t ready for the bureaucracy (despite having 18 months to prepare), the European Commission has set about making everything more palatable.
In March, its Omnibus bill watered down rules on corporate sustainability reporting and supply chain transparency to make the bloc more competitive with the US and China. This would save Europe’s SME’s €6.3 billion in admin costs they would have incurred meeting sustainability information requests and excluded 80% of companies from the Corporate Sustainability Reporting Directive (CSRD).
Last month, in a sop to reluctant member states, the Commission placed all 27 countries in a ‘low risk’ category for deforestation despite some, like Sweden and Finland, having appalling records for chopping trees down.
Sweden has the most ‘old growth’ forests in Europe, covering 70% of its territory, but these are getting torn down faster than the Amazon, while Finland has faced €7 billion in EU fines for deforestation.
It led to palm oil-producing Malaysia – which reduced primary forest loss by 65% between 2014 and 2023 with a further drop of 13% in 2024 alone – accusing the EU of ‘favouritism’ after it was placed in a ‘standard risk’ category.
The benchmarking determines the amount of costly and bureaucratic due diligence reporting which will be required for goods coming into the EU. Malaysia’s Commodities Minister Johari Ghani said its ‘standard risk’ rating was based on outdated data from 2020, since when the country has introduced measures to justify a ‘low risk’ rating. He asked the EU to come and see for themselves, which they are going to do.
As well as fudging things to keep member states onside, the European Commission stands accused of a lack of transparency, with crucial decisions being made behind closed doors in Brussels.
Just four countries – Belarus (where IKEA has been exposed for sourcing wood for its furniture), Russia, Myanmar and North Korea – have been categorised as ‘high risk’; 140 were labelled ‘low risk’ and 50 ‘standard risk’, but with no explanation of how the ratings were determined.
For some member states, even ‘low risk’ is still too high. At least 11 of them, including Finland, want a ‘no risk’ category to eliminate checks altogether, while 19 are pushing for more watering down of EUDR and even a second postponement.
These efforts, framed as attempts to ease the administrative burden on business, are effectively dismantling one of the EU’s most important environmental laws.
It’s classic EU fudge paying lip service to the fight against climate change at a time of widespread forest degradation and illegal logging in Europe when the trading bloc wants to remain credible as a global environmental leader. Euractiv
---------
From Plantation To Feedlot: Sarawak Eyes Palm Waste As Key To Sustainable Livestock Feed
Sarawak is gearing up to unveil a transformative agricultural strategy that will repurpose palm oil waste into sustainable livestock feed, Premier Tan Sri Abang Johari Tun Openg announced today.
The plan, set to be revealed by the end of the year, aims to boost agricultural incomes and reduce the state’s dependence on imported animal feed, a significant cost driver in livestock farming.
Speaking after attending an Aidiladha event, Abang Johari said the idea was sparked after he saw potential in turning agricultural waste into value.
“Rather than discarding palm waste, we can process it into biomass-based feed, enrich it with napier grass and use it to raise livestock more efficiently,” he said.
The strategy involves converting existing oil palm plantations into integrated feedlot centres, where livestock can be raised using locally produced feed made from palm byproducts. This move aligns with Sarawak’s long-term goal of strengthening food security and building a more self-reliant agricultural sector.
“If we can produce quality livestock feed locally using palm waste and napier grass, our cattle will have access to a more nutritious diet, and we’ll reduce the need to import expensive feedstock,” Abang Johari added.
The initiative is part of the state government’s broader push toward sustainable and circular agricultural practices. It also supports Sarawak’s economic agenda to increase rural incomes and create new revenue streams within existing plantation frameworks.
However, he did not disclose further details but indicated that the full strategy, including implementation mechanisms and stakeholder involvement, would be announced later this year. Business Today
Indonesia to conclude 9 years of free trade negotiations with the EU
Indonesia will get zero tariffs for 80 per cent of its exports and removal of non-tariff barriers as it pushes for market access
JAKARTA, June 7 (Reuters) - Indonesia said on Saturday that free trade negotiations with the European Union, which have been ongoing for nine years, are expected to be concluded by the end of June.
Airlangga Hartarto, the chief economic minister for Southeast Asia's biggest economy, met with EU Commissioner for Trade Maros Sefcovic in Brussels on Friday.
"Indonesia and the European Union have agreed to conclude outstanding issues and we are ready to announce a conclusion of substantial negotiations by the end of June 2025," Airlangga Hartarto said in a statement.
Indonesia will get zero tariffs for 80% of its export products to the EU and removal of non-tariff barriers, as it pushes for bigger market access for footwear, garments, palm oil and fishery products, Airlanga told a press conference later on Saturday.
The EU has discussed Jakarta's rules on mandatory use of local content in products sold in Indonesian market, the automotive industry, trade of critical minerals and investment facilities, Airlangga said.
Indonesia and the EU have previously disagreed on EU trade rules for products with potential links to deforestation that could affect Indonesian palm oil.
Airlangga said the bloc's deforestation rules were not part of the free trade negotiations, but Sefcovic had "promised to provide special treatment towards Indonesia regarding deforestation." He did not elaborate.
Denis Chaibi, EU ambassador to Indonesia, said that talks were ongoing and "we will communicate in details when we have an outcome." Chaibi did not respond to a question about the special treatment.
The EU is Indonesia's fifth-biggest trade partner, with total trade between the two reaching 27.3 billion euros ($31.11 billion) last year, according to the EU. Exports from the bloc were worth 9.7 billion euros in 2024, and it imported 17.5 billion euros' worth from Indonesia.
Indonesian exports to the bloc could increase by more than 50% within three to four years after the trade deal takes effect, Airlangga said. Reuters
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Why its watering down of sustainability rules is classic EU fudge
Last month the Commission placed all 27 countries in a ‘low risk’ category for deforestation – a classic EU fudge paying lip service to the fight against climate change at a time of widespread forest degradation and illegal logging in Europe.
For new legislation bearing all the hallmarks of those words ‘Classic EU Fudge’ it’s hard to beat the trading bloc’s sustainability laws, which just keep getting watered down.
Consider the sheer chutzpah of calls last week by Emmanuel Macron and Friedrich Merz to scrap due diligence rules requiring companies to monitor their global supply chain for human rights abuses and environmental damage.
The French and German leaders are repeating demands first spouted by the far right for the legislation to the scrapped – along with the rest of the EU’s Green Deal.
Strange bedfellows indeed but an indication of how Europe has tilted right and moved the goalposts with the Omnibus Simplification Package's less ambitious environmental targets.
The starkest example of this backing away from its lofty, earlier commitments is the EU’s anti-deforestation laws. These didn’t just get watered down. They aren’t even getting off the ground, having been postponed at the eleventh hour in December and now facing calls for a further delay.
The EU is also being accused of favouritism towards member states while penalising Asian countries who say they have been marked down as drivers of deforestation based on outdated data.
The EU Deforestation-free Regulation (EUDR) was passed with great fanfare two years ago, hailed by environmentalists for its pledge to cut global deforestation by 10%. It would ensure that commodities such as cocoa, coffee, palm oil, cattle, soy, rubber and wood could not be sold on the EU market if they had been sourced from deforested land after 2020.
Since the December delay, when member states as well as suppliers complained they weren’t ready for the bureaucracy (despite having 18 months to prepare), the European Commission has set about making everything more palatable.
In March, its Omnibus bill watered down rules on corporate sustainability reporting and supply chain transparency to make the bloc more competitive with the US and China. This would save Europe’s SME’s €6.3 billion in admin costs they would have incurred meeting sustainability information requests and excluded 80% of companies from the Corporate Sustainability Reporting Directive (CSRD).
Last month, in a sop to reluctant member states, the Commission placed all 27 countries in a ‘low risk’ category for deforestation despite some, like Sweden and Finland, having appalling records for chopping trees down.
Sweden has the most ‘old growth’ forests in Europe, covering 70% of its territory, but these are getting torn down faster than the Amazon, while Finland has faced €7 billion in EU fines for deforestation.
It led to palm oil-producing Malaysia – which reduced primary forest loss by 65% between 2014 and 2023 with a further drop of 13% in 2024 alone – accusing the EU of ‘favouritism’ after it was placed in a ‘standard risk’ category.
The benchmarking determines the amount of costly and bureaucratic due diligence reporting which will be required for goods coming into the EU. Malaysia’s Commodities Minister Johari Ghani said its ‘standard risk’ rating was based on outdated data from 2020, since when the country has introduced measures to justify a ‘low risk’ rating. He asked the EU to come and see for themselves, which they are going to do.
As well as fudging things to keep member states onside, the European Commission stands accused of a lack of transparency, with crucial decisions being made behind closed doors in Brussels.
Just four countries – Belarus (where IKEA has been exposed for sourcing wood for its furniture), Russia, Myanmar and North Korea – have been categorised as ‘high risk’; 140 were labelled ‘low risk’ and 50 ‘standard risk’, but with no explanation of how the ratings were determined.
For some member states, even ‘low risk’ is still too high. At least 11 of them, including Finland, want a ‘no risk’ category to eliminate checks altogether, while 19 are pushing for more watering down of EUDR and even a second postponement.
These efforts, framed as attempts to ease the administrative burden on business, are effectively dismantling one of the EU’s most important environmental laws.
It’s classic EU fudge paying lip service to the fight against climate change at a time of widespread forest degradation and illegal logging in Europe when the trading bloc wants to remain credible as a global environmental leader. Euractiv
---------
From Plantation To Feedlot: Sarawak Eyes Palm Waste As Key To Sustainable Livestock Feed
Sarawak is gearing up to unveil a transformative agricultural strategy that will repurpose palm oil waste into sustainable livestock feed, Premier Tan Sri Abang Johari Tun Openg announced today.
The plan, set to be revealed by the end of the year, aims to boost agricultural incomes and reduce the state’s dependence on imported animal feed, a significant cost driver in livestock farming.
Speaking after attending an Aidiladha event, Abang Johari said the idea was sparked after he saw potential in turning agricultural waste into value.
“Rather than discarding palm waste, we can process it into biomass-based feed, enrich it with napier grass and use it to raise livestock more efficiently,” he said.
The strategy involves converting existing oil palm plantations into integrated feedlot centres, where livestock can be raised using locally produced feed made from palm byproducts. This move aligns with Sarawak’s long-term goal of strengthening food security and building a more self-reliant agricultural sector.
“If we can produce quality livestock feed locally using palm waste and napier grass, our cattle will have access to a more nutritious diet, and we’ll reduce the need to import expensive feedstock,” Abang Johari added.
The initiative is part of the state government’s broader push toward sustainable and circular agricultural practices. It also supports Sarawak’s economic agenda to increase rural incomes and create new revenue streams within existing plantation frameworks.
However, he did not disclose further details but indicated that the full strategy, including implementation mechanisms and stakeholder involvement, would be announced later this year. Business Today
June 07, 2025
Indonesia expects to conclude free trade talks with EU by end of June
Indonesia said on Saturday that free trade negotiations with the European Union, which have been going on for nine years, are expected to finish by the end of June.
Airlangga Hartarto, the chief economic minister for Southeast Asia’s biggest economy, met with EU Commissioner for Trade Maros Sefcovic in Brussels on Friday.
“Indonesia and the European Union have agreed to conclude outstanding issues and we are ready to announce a conclusion of substantial negotiations by the end of June 2025,” Airlangga Hartarto said in a statement.
He did not disclose details about what agreements may have been reached.
Representatives for the EU in Jakarta did not respond to a request for comment.
The EU is Indonesia’s fifth biggest trade partner, with total trade between the two reaching $30.1 billion last year. Indonesia had a $4.5 billion trade surplus, Airlangga said.
Indonesia and the EU have previously disagreed on the EU’s trade rules for products with potential links to deforestation, which could affect Indonesian palm oil, as well as Jakarta’s ban on exports of raw minerals.
Indonesian officials have been motivated to accelerate talks on free trade agreements, keen to diversify the country’s export destinations as they deal with U.S. tariff challenges.
Seeking to end U.S. trade deficits worldwide, U.S. President Donald Trump announced sweeping “reciprocal” tariffs that have since been paused until July. Indonesia is facing a 32% tariff rate. CNBC
---------
Cross River partners Malaysia to boost agricultural development
Wilmar expands presence in Nigeria
In a move to strengthen international cooperation and agricultural growth, Cross River State Governor, Senator Bassey Otu, has hosted the Malaysian High Commissioner to Nigeria, His Excellency Aiyub Bin Omar, in Calabar.
The high-level diplomatic engagement focused on enhancing bilateral trade and deepening collaboration in the agricultural sector, particularly in oil palm development.
Welcoming the delegation at the Governor’s Office, Governor Otu highlighted the historical agricultural link between Nigeria and Malaysia, noting that Malaysia’s globally successful palm oil industry originated from West Africa.
“We are not shy to say you’ve done very well,” Otu remarked, commending Malaysia’s transformation of palm oil into a global economic driver.
“Now that the whole world is going green, it’s very clear that palm oil remains a major player in that transition.”
Otu pointed to ongoing partnerships with companies such as Wilmar and JD Farms as examples of successful foreign investments.
He revealed that an additional 8,000 hectares of land had recently been allocated to Wilmar and encouraged more local processing through plant development in the state.
He also mentioned the state’s port infrastructure project aimed at easing export logistics.
“We are creating a friendly environment for investment and expanding local capacity. We’re also looking to establish a research center dedicated to palm cultivation and sustainability,” the governor said, calling for more technical exchanges and academic collaborations with Malaysian institutions.
Reaffirming the state’s commitment to investment-friendly policies, Governor Otu added: “We welcome all partnerships and will continue to work closely with you to build something transformative for both our people.”
In his response, Malaysian High Commissioner Aiyub Bin Omar praised Cross River’s lush landscape and strong agricultural potential. “When I landed, I was struck by the greenery. Your national park is an incredible natural asset,” he said.
He acknowledged the long-standing Malaysian business presence in the region, particularly AgriNexus, which has operated in Cross River since 2017 and currently manages JD Farms, employing over 1,000 locals.
“Malaysia is the second-largest producer of palm oil in the world, and we are committed to helping Nigeria revitalize its own agricultural sector,” Omar stated. He also emphasized Malaysia’s continued support through training programmes and scholarships in agriculture, diplomacy, and economic development.
Dr. Shermal Perera, Group Managing Director of JB Farms and AgriNexus International, elaborated on the impact of Malaysian investment in Cross River.
“We revived a dilapidated farm in Oban, and today JD Farms is the fourth-largest oil palm plantation in Nigeria—and the largest indigenous one,” he revealed, noting that the farm contributes roughly ₦200 million in annual taxes to the state.
Perera also introduced the Incorporated Society of Planters Africa (ISPA), an initiative to professionalize agriculture through structured education and training.
“Our vision is to build ‘Agri-Unity’ across Africa by developing expertise and local capacity for sustainable agriculture,” he said.
The meeting ended with renewed commitments to deepen collaboration, foster investment, and drive agricultural innovation in Cross River and beyond. GuardianNG
---------
From drones to filters, Southeast Asian startups make the most of palm
Ventures devise new uses for readily available raw material
TOKYO -- Startups across Southeast Asia are finding new ways to recycle waste from the region's many palm fruits into environmentally friendly materials.
Terra Drone, a Japanese maker of unmanned aerial vehicles, in late May replaced conventional plastic airframe covers with a new biocomposite material. Fibers for making the material come from dregs left over from extracting palm oil from fruit.
The new covers shield sensitive electronics, such as sensors and cameras. They are now being used in drones that spray pesticides in Indonesia and Malaysia. Terra Drone developed the cover material with Malaysian startup Midwest Composites.
Plastics are prone to cracking and warping when exposed to the strong tropical sunlight. But the biocomposite material made by mixing jute and kenaf with palm dregs is strong and has a relatively smaller environmental impact, according to Terra Drone.
Midwest is also manufacturing components for automobiles, solar power generation equipment and wind power generation equipment. This is being done through technical collaborations with state-owned Malaysian energy major Petronas and the National University of Singapore.
"Although there are global competitors, such as those in the U.S. and Canada, we can demonstrate our strength by tapping raw materials in Asia," Midwest CEO Sethu Raaj said.
Ravelware Technology Indonesia also looks to make use of Asia's wealth of palm trees, specifically coconut trees. The company has come up with a way to make graphene, a carbon material, from discarded coconut shells. Graphene has a wide range of potential applications, including in electronic components.
Graphene is usually made from graphite. But not only is graphite expensive, but mining and refining the raw material exacts an enormous environmental toll. In addition, the final steps for processing graphite are concentrated in China.
Ravelware takes discarded coconut shells off the hands of local food-processing plants and others, using the shells as a raw material for making graphene.
"It's friendly to the environment, and the manufacturing costs are low," CEO Randy Budi Wicaksono said.
In Indonesia, Ravelware has started supplying graphene for use in road-paving blocks. Graphene is said to be effective at preventing floods by accelerating the absorption of water into the ground.
Ravelware exports graphene to the Middle East and Europe for use in batteries and other applications. The company plans to expand sales to Japan and elsewhere. The goal is to raise sales from less than $200,000 in 2023 to at least $7.5 million by 2030.
Cambodian startup SUDrain manufactures filters for water purification systems using coconut shells. Cellulose in coconut fiber has the effect of absorbing bacteria and fungi and can filter industrial and domestic wastewater, purifying it through the activity of microorganisms. Nikkei Asia
Indonesia expects to conclude free trade talks with EU by end of June
Indonesia said on Saturday that free trade negotiations with the European Union, which have been going on for nine years, are expected to finish by the end of June.
Airlangga Hartarto, the chief economic minister for Southeast Asia’s biggest economy, met with EU Commissioner for Trade Maros Sefcovic in Brussels on Friday.
“Indonesia and the European Union have agreed to conclude outstanding issues and we are ready to announce a conclusion of substantial negotiations by the end of June 2025,” Airlangga Hartarto said in a statement.
He did not disclose details about what agreements may have been reached.
Representatives for the EU in Jakarta did not respond to a request for comment.
The EU is Indonesia’s fifth biggest trade partner, with total trade between the two reaching $30.1 billion last year. Indonesia had a $4.5 billion trade surplus, Airlangga said.
Indonesia and the EU have previously disagreed on the EU’s trade rules for products with potential links to deforestation, which could affect Indonesian palm oil, as well as Jakarta’s ban on exports of raw minerals.
Indonesian officials have been motivated to accelerate talks on free trade agreements, keen to diversify the country’s export destinations as they deal with U.S. tariff challenges.
Seeking to end U.S. trade deficits worldwide, U.S. President Donald Trump announced sweeping “reciprocal” tariffs that have since been paused until July. Indonesia is facing a 32% tariff rate. CNBC
---------
Cross River partners Malaysia to boost agricultural development
Wilmar expands presence in Nigeria
In a move to strengthen international cooperation and agricultural growth, Cross River State Governor, Senator Bassey Otu, has hosted the Malaysian High Commissioner to Nigeria, His Excellency Aiyub Bin Omar, in Calabar.
The high-level diplomatic engagement focused on enhancing bilateral trade and deepening collaboration in the agricultural sector, particularly in oil palm development.
Welcoming the delegation at the Governor’s Office, Governor Otu highlighted the historical agricultural link between Nigeria and Malaysia, noting that Malaysia’s globally successful palm oil industry originated from West Africa.
“We are not shy to say you’ve done very well,” Otu remarked, commending Malaysia’s transformation of palm oil into a global economic driver.
“Now that the whole world is going green, it’s very clear that palm oil remains a major player in that transition.”
Otu pointed to ongoing partnerships with companies such as Wilmar and JD Farms as examples of successful foreign investments.
He revealed that an additional 8,000 hectares of land had recently been allocated to Wilmar and encouraged more local processing through plant development in the state.
He also mentioned the state’s port infrastructure project aimed at easing export logistics.
“We are creating a friendly environment for investment and expanding local capacity. We’re also looking to establish a research center dedicated to palm cultivation and sustainability,” the governor said, calling for more technical exchanges and academic collaborations with Malaysian institutions.
Reaffirming the state’s commitment to investment-friendly policies, Governor Otu added: “We welcome all partnerships and will continue to work closely with you to build something transformative for both our people.”
In his response, Malaysian High Commissioner Aiyub Bin Omar praised Cross River’s lush landscape and strong agricultural potential. “When I landed, I was struck by the greenery. Your national park is an incredible natural asset,” he said.
He acknowledged the long-standing Malaysian business presence in the region, particularly AgriNexus, which has operated in Cross River since 2017 and currently manages JD Farms, employing over 1,000 locals.
“Malaysia is the second-largest producer of palm oil in the world, and we are committed to helping Nigeria revitalize its own agricultural sector,” Omar stated. He also emphasized Malaysia’s continued support through training programmes and scholarships in agriculture, diplomacy, and economic development.
Dr. Shermal Perera, Group Managing Director of JB Farms and AgriNexus International, elaborated on the impact of Malaysian investment in Cross River.
“We revived a dilapidated farm in Oban, and today JD Farms is the fourth-largest oil palm plantation in Nigeria—and the largest indigenous one,” he revealed, noting that the farm contributes roughly ₦200 million in annual taxes to the state.
Perera also introduced the Incorporated Society of Planters Africa (ISPA), an initiative to professionalize agriculture through structured education and training.
“Our vision is to build ‘Agri-Unity’ across Africa by developing expertise and local capacity for sustainable agriculture,” he said.
The meeting ended with renewed commitments to deepen collaboration, foster investment, and drive agricultural innovation in Cross River and beyond. GuardianNG
---------
From drones to filters, Southeast Asian startups make the most of palm
Ventures devise new uses for readily available raw material
TOKYO -- Startups across Southeast Asia are finding new ways to recycle waste from the region's many palm fruits into environmentally friendly materials.
Terra Drone, a Japanese maker of unmanned aerial vehicles, in late May replaced conventional plastic airframe covers with a new biocomposite material. Fibers for making the material come from dregs left over from extracting palm oil from fruit.
The new covers shield sensitive electronics, such as sensors and cameras. They are now being used in drones that spray pesticides in Indonesia and Malaysia. Terra Drone developed the cover material with Malaysian startup Midwest Composites.
Plastics are prone to cracking and warping when exposed to the strong tropical sunlight. But the biocomposite material made by mixing jute and kenaf with palm dregs is strong and has a relatively smaller environmental impact, according to Terra Drone.
Midwest is also manufacturing components for automobiles, solar power generation equipment and wind power generation equipment. This is being done through technical collaborations with state-owned Malaysian energy major Petronas and the National University of Singapore.
"Although there are global competitors, such as those in the U.S. and Canada, we can demonstrate our strength by tapping raw materials in Asia," Midwest CEO Sethu Raaj said.
Ravelware Technology Indonesia also looks to make use of Asia's wealth of palm trees, specifically coconut trees. The company has come up with a way to make graphene, a carbon material, from discarded coconut shells. Graphene has a wide range of potential applications, including in electronic components.
Graphene is usually made from graphite. But not only is graphite expensive, but mining and refining the raw material exacts an enormous environmental toll. In addition, the final steps for processing graphite are concentrated in China.
Ravelware takes discarded coconut shells off the hands of local food-processing plants and others, using the shells as a raw material for making graphene.
"It's friendly to the environment, and the manufacturing costs are low," CEO Randy Budi Wicaksono said.
In Indonesia, Ravelware has started supplying graphene for use in road-paving blocks. Graphene is said to be effective at preventing floods by accelerating the absorption of water into the ground.
Ravelware exports graphene to the Middle East and Europe for use in batteries and other applications. The company plans to expand sales to Japan and elsewhere. The goal is to raise sales from less than $200,000 in 2023 to at least $7.5 million by 2030.
Cambodian startup SUDrain manufactures filters for water purification systems using coconut shells. Cellulose in coconut fiber has the effect of absorbing bacteria and fungi and can filter industrial and domestic wastewater, purifying it through the activity of microorganisms. Nikkei Asia
June 06, 2025
Indonesia eyes EU free trade deal following its classification as “standard-risk” under EU deforestation regulation
Indonesia’s classification as “standard-risk” under the European Union (EU)’s deforestation regulation (the EUDR) could be an opportunity for the country to seal a long-delayed free trade deal with the bloc, The Star reported.
The country’s “standard risk” classification was seen by businesses as a signal that could boost exports of palm oil, coffee, cacao and other commodities, the 28 May report said.
Trade Minister Budi Santoso said the EU’s move emerged during the final talks to conclude the Indonesia-EU Comprehensive Economic Partnership Agreement, which was expected to be finalised by the middle of this year after being negotiated by the two parties since 2016.
“We’re in the middle of finalisation, and the EU seems to be easing now as we near the final stage,” Trade Minister Budi Santoso was quoted as saying on 21 May.
Indonesia, the world’s largest palm oil producer, has raised concerns over EU law banning imports of commodities linked to deforestation after 2020, as well as requiring traceability and geolocation coordinates of commodities subject to the regulation, effective for large companies from the end of this year.
The country was placed among standard-risk countries with only Russia, Belarus, North Korea and Myanmar placed in the high-risk category, Reuters reported on 23 May.
Under the EUDR’s benchmarking system, countries are classified nations as low, standard or high risk to minimise the EU’s role in global deforestation, with lighter checks for low-risk countries.
The decision to categorise only four countries as “high-risk” has been criticised by environmental groups, with a coalition of 40 non-governmental organisations warning the European Commission in an open letter that “premature conclusions could politicise the benchmarking process,” according to the report.
Although Indonesia’s exclusion from the high-risk group was welcomed by businesses, many said the “low-risk” classification would ease due diligence and cut export costs, particularly for small players, The Star wrote. OFI Magazine
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Irony of the Palm Oil Country: People Have Difficulty Getting Cheap Cooking Oil
Indonesia is the world's largest palm oil producer. However, people still have difficulty getting cooking oil at a cheap price, at least according to the HET provisions.
Cooking oil is a basic necessity in almost every household in Indonesia. From simple kitchens to large restaurants, cooking oil is a primary ingredient for cooking. However, amidst the public's dependence on cooking oil, there exists a significant irony: Indonesia is the world's largest producer of palm oil, yet the price of cooking oil often fluctuates and is difficult to obtain at a reasonable price.
Since mid-2024, the price of Minyakita, a simple packaged cooking oil intended for the public, has continued to rise. The product, which should be sold at a maximum retail price (HET) of IDR 15,700 per liter, is now widely found at prices ranging from IDR 17,000 to IDR 20,000 per liter in various regions.
In Pasuruan, East Java, for example, Minyakita is being sold at a price of IDR 20,000 per liter because distributors have set a price of IDR 18,000 per liter for retailers. This increase has forced many families to allocate a larger budget for their kitchen needs, while small traders have had to raise selling prices or reduce portions of their goods in order to survive.
The government has made efforts to reduce cooking oil prices through various policies, including market operations and the threat of license revocation for distributors selling above the ceiling price. However, the reality on the ground shows that these policies have not been able to significantly lower prices.
Although Minyakita's stock is claimed to be sufficient, prices continue to soar. The long distribution chain, bundling practices by distributors, and alleged repackaging of Minyakita into premium or bulk cooking oil have worsened the situation.
Indonesia actually has abundant crude palm oil (CPO) production. In 2024, CPO production will reach more than 48 million tons, most of which will be exported abroad. However, the domestic market obligation (DMO) policy that requires exporters to set aside part of their production for domestic needs does not necessarily make people's cooking oil cheaper.
The fluctuating price of CPO often causes the production costs of cooking oil to exceed the government-mandated retail price ceiling. As a result, producers are reluctant to sell at low prices and instead prefer to find loopholes to maintain profitability. One of the methods is by reducing the contents of the packaging or increasing prices through intermediaries.
Not only that, the distribution of Minyakita, which was supposed to be straightforward, has instead become increasingly complex. Second-line distributors (D2), who were supposed to supply directly to retailers, ended up selling in large quantities to well-capitalized retailers, who then raised the prices before reselling them.
In addition, several distributors have implemented a bundled purchasing system, where retailers are required to buy Minyakita along with other products at higher prices. This phenomenon has made it increasingly difficult for small retailers to obtain Minyakita at a reasonable price, ultimately leading them to sell it to consumers at prices far above the government-regulated price ceiling. Kompas
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Malaysian plantation sector neutral amid EU ‘standard risk’ classification
KUALA LUMPUR, June 6 — AmInvestment Bank Bhd has maintained its neutral rating on the plantation sector amid the recent “standard risk” classification by the European Commission.
The risk classification determines the amount of documentation and compliance required to facilitate the implementation of the European Union Deforestation Regulation (EUDR), which will take place on December 30.
The investment bank said in a note that although the Malaysian Palm Oil Council is challenging the EU’s benchmarking methodology, the impact on large Malaysian palm exporters is not expected to be significant.
“They are prepared for the EUDR and have been sending trial shipments of EUDR-compliant palm products.
“The next benchmarking review will take place in the 2026 forecast. Malaysia can submit updated data to the EU for the next review,” it said. Selangor Journal
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Danone and Nestlé hit back after new report accuses Big Food of ‘corporate greenwashing.’
The world’s largest food companies are overstating their climate progress by “relying on carbon removals and weak certifications” while failing to cut emissions at source, claims a new report accusing firms of “corporate greenwashing.”
According to the Corporate Climate Responsibility Monitor 2025, relying on land-based carbon dioxide removal (CDR) to meet sustainability targets via carbon insetting or offsetting initiatives such as soil carbon sequestration or reforestation distracts from the need to reduce emissions at source.
According to the report, penned by nonprofits NewClimate Institute and Carbon Market Watch, “This focus on CDR distracts distracts from their lack of commitments to deep, structural emission reductions, especially regarding methane.
“While the draft GHG Protocol Land Sector and Removals Guidance recommends setting separate targets for emissions reductions and removals, the current SBTi FLAG guidance appears to allow companies to count removals toward their reduction targets. Danone, Nestlé and PepsiCo seem to be taking this approach.” AgFunderNews
Indonesia eyes EU free trade deal following its classification as “standard-risk” under EU deforestation regulation
Indonesia’s classification as “standard-risk” under the European Union (EU)’s deforestation regulation (the EUDR) could be an opportunity for the country to seal a long-delayed free trade deal with the bloc, The Star reported.
The country’s “standard risk” classification was seen by businesses as a signal that could boost exports of palm oil, coffee, cacao and other commodities, the 28 May report said.
Trade Minister Budi Santoso said the EU’s move emerged during the final talks to conclude the Indonesia-EU Comprehensive Economic Partnership Agreement, which was expected to be finalised by the middle of this year after being negotiated by the two parties since 2016.
“We’re in the middle of finalisation, and the EU seems to be easing now as we near the final stage,” Trade Minister Budi Santoso was quoted as saying on 21 May.
Indonesia, the world’s largest palm oil producer, has raised concerns over EU law banning imports of commodities linked to deforestation after 2020, as well as requiring traceability and geolocation coordinates of commodities subject to the regulation, effective for large companies from the end of this year.
The country was placed among standard-risk countries with only Russia, Belarus, North Korea and Myanmar placed in the high-risk category, Reuters reported on 23 May.
Under the EUDR’s benchmarking system, countries are classified nations as low, standard or high risk to minimise the EU’s role in global deforestation, with lighter checks for low-risk countries.
The decision to categorise only four countries as “high-risk” has been criticised by environmental groups, with a coalition of 40 non-governmental organisations warning the European Commission in an open letter that “premature conclusions could politicise the benchmarking process,” according to the report.
Although Indonesia’s exclusion from the high-risk group was welcomed by businesses, many said the “low-risk” classification would ease due diligence and cut export costs, particularly for small players, The Star wrote. OFI Magazine
---------
Irony of the Palm Oil Country: People Have Difficulty Getting Cheap Cooking Oil
Indonesia is the world's largest palm oil producer. However, people still have difficulty getting cooking oil at a cheap price, at least according to the HET provisions.
Cooking oil is a basic necessity in almost every household in Indonesia. From simple kitchens to large restaurants, cooking oil is a primary ingredient for cooking. However, amidst the public's dependence on cooking oil, there exists a significant irony: Indonesia is the world's largest producer of palm oil, yet the price of cooking oil often fluctuates and is difficult to obtain at a reasonable price.
Since mid-2024, the price of Minyakita, a simple packaged cooking oil intended for the public, has continued to rise. The product, which should be sold at a maximum retail price (HET) of IDR 15,700 per liter, is now widely found at prices ranging from IDR 17,000 to IDR 20,000 per liter in various regions.
In Pasuruan, East Java, for example, Minyakita is being sold at a price of IDR 20,000 per liter because distributors have set a price of IDR 18,000 per liter for retailers. This increase has forced many families to allocate a larger budget for their kitchen needs, while small traders have had to raise selling prices or reduce portions of their goods in order to survive.
The government has made efforts to reduce cooking oil prices through various policies, including market operations and the threat of license revocation for distributors selling above the ceiling price. However, the reality on the ground shows that these policies have not been able to significantly lower prices.
Although Minyakita's stock is claimed to be sufficient, prices continue to soar. The long distribution chain, bundling practices by distributors, and alleged repackaging of Minyakita into premium or bulk cooking oil have worsened the situation.
Indonesia actually has abundant crude palm oil (CPO) production. In 2024, CPO production will reach more than 48 million tons, most of which will be exported abroad. However, the domestic market obligation (DMO) policy that requires exporters to set aside part of their production for domestic needs does not necessarily make people's cooking oil cheaper.
The fluctuating price of CPO often causes the production costs of cooking oil to exceed the government-mandated retail price ceiling. As a result, producers are reluctant to sell at low prices and instead prefer to find loopholes to maintain profitability. One of the methods is by reducing the contents of the packaging or increasing prices through intermediaries.
Not only that, the distribution of Minyakita, which was supposed to be straightforward, has instead become increasingly complex. Second-line distributors (D2), who were supposed to supply directly to retailers, ended up selling in large quantities to well-capitalized retailers, who then raised the prices before reselling them.
In addition, several distributors have implemented a bundled purchasing system, where retailers are required to buy Minyakita along with other products at higher prices. This phenomenon has made it increasingly difficult for small retailers to obtain Minyakita at a reasonable price, ultimately leading them to sell it to consumers at prices far above the government-regulated price ceiling. Kompas
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Malaysian plantation sector neutral amid EU ‘standard risk’ classification
KUALA LUMPUR, June 6 — AmInvestment Bank Bhd has maintained its neutral rating on the plantation sector amid the recent “standard risk” classification by the European Commission.
The risk classification determines the amount of documentation and compliance required to facilitate the implementation of the European Union Deforestation Regulation (EUDR), which will take place on December 30.
The investment bank said in a note that although the Malaysian Palm Oil Council is challenging the EU’s benchmarking methodology, the impact on large Malaysian palm exporters is not expected to be significant.
“They are prepared for the EUDR and have been sending trial shipments of EUDR-compliant palm products.
“The next benchmarking review will take place in the 2026 forecast. Malaysia can submit updated data to the EU for the next review,” it said. Selangor Journal
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Danone and Nestlé hit back after new report accuses Big Food of ‘corporate greenwashing.’
The world’s largest food companies are overstating their climate progress by “relying on carbon removals and weak certifications” while failing to cut emissions at source, claims a new report accusing firms of “corporate greenwashing.”
According to the Corporate Climate Responsibility Monitor 2025, relying on land-based carbon dioxide removal (CDR) to meet sustainability targets via carbon insetting or offsetting initiatives such as soil carbon sequestration or reforestation distracts from the need to reduce emissions at source.
According to the report, penned by nonprofits NewClimate Institute and Carbon Market Watch, “This focus on CDR distracts distracts from their lack of commitments to deep, structural emission reductions, especially regarding methane.
“While the draft GHG Protocol Land Sector and Removals Guidance recommends setting separate targets for emissions reductions and removals, the current SBTi FLAG guidance appears to allow companies to count removals toward their reduction targets. Danone, Nestlé and PepsiCo seem to be taking this approach.” AgFunderNews
June 05, 2025
EU wants to tackle global deforestation but meets resistance at home
As forests around the globe vanish at alarming rates, the EU is promoting tough new rules to curb deforestation and products linked to it. But political pressure is mounting at home to water them down, with heavy bureaucracy a primary concern.
The world's forests are under threat: hundreds of millions of hectares of forest have been cleared in recent decades. The European Union wants to slow this trend - but calls to delay new rules are growing louder.
Every minute of every hour of every day, the equivalent of eighteen football pitches of tropical rainforest was destroyed last year, according to data from the University of Maryland and the World Resources Institute (WRI).
Tally it all up and the world lost 67,000 square kilometres of precious primary tropical forest in one year alone, an area twice the size of Belgium or Taiwan.
Tropical forests, which harbour the highest concentrations of biodiversity, are the most threatened of any forest biomes on the planet. They are also sponges for CO2, helping to prevent global temperatures from rising even faster than they have.
'In 2025, governments must take bold action to get on track,' a coalition of nearly 40 non-governmental organisations, think-tanks and forest research bodies have urged in a document outlining policy proposals.
To minimise its contribution to world-wide deforestation and promote more sustainable practices among companies operating in the bloc, the EU has so far brought forward the Deforestation Regulation (EUDR).
However, as part of a wider push against the EU's Green Deal - its cornerstone climate strategy to make Europe climate-neutral by 2050 - member states are calling for further delays to the application of the law.
What does the EUDR stand for?
The EUDR's goal is to stop products from entering or leaving the European market if they are made by cutting down trees. Under this law, cattle, cocoa, coffee, palm oil, rubber, soya and wood may only be sold in the EU if no forests have been cleared for them after 2020.
Firms importing the merchandise in question to the 27-nation bloc will be responsible for tracking their supply chains to prove goods did not originate from deforested zones, relying on geolocation and satellite data.
Anyone who fails to comply with the regulations faces heavy fines of at least 4 percent of annual turnover in the EU. Satellite and DNA analysis will be used to verify the origin of the products and whether the requirements are being met.
In the EU, Spain for example has a 'special responsibility' to reduce deforestation as it is the largest European importer of soybeans, according to a warning issued last year by the NGO Alianza Cero Deforestación.
Companies are however far from meeting this tracking requirement. In Germany, for example, Environmental Action Germany (DUH) found that out of 32 surveyed companies across the meat, poultry, dairy, and feed industries - as well as system catering, wholesale, and retail sectors - only four could trace their soy, and just three their palm oil, back to the original cultivation area.
Taking into account the production and use of the seven listed raw materials, the European Commission last month unveiled its first benchmark that classifies countries based on the level of deforestation risk of producing commodities that are not deforestation-free.
Russia, Belarus, North Korea and Myanmar are the only four countries considered to be at high risk of deforestation, while Brazil and Indonesia - in the past often criticised for their extensive deforestation of rainforests - are currently placed in the medium risk category.
The list raised eyebrows among EU member states and environmental groups. Read more Agerpres
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Indonesia reaffirms commitment to multilateral trade at WTO
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto reaffirmed Indonesia's commitment to the multilateral trading system during a meeting with World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala in Paris on Tuesday, local time.
"The WTO has a key and irreplaceable role in promoting and strengthening the rules-based multilateral trading system," he noted in a statement on Wednesday.
He also discussed several developments in the national agenda with the WTO, including issues related to agriculture, fisheries, and trade in electronic systems.
The WTO serves as a forum for negotiating international trade agreements and includes a dispute settlement mechanism. The organization currently has 166 member countries, with some three-quarters being developing countries.
Indonesia's membership in the WTO is governed by Law Number 7 of 1994, which concerns the Agreement on the Establishment of the World Trade Organization.
Through its membership, Indonesia has benefited significantly in expanding international trade by utilizing principles and facilitation measures such as National Treatment, Most Favored Nations (MFN), Special and Differential Treatment (SDT), and capacity-building programs.
Related news: Indonesia backs WTO efforts to ease trade tensions
In addition to his meeting with the WTO Director General, Minister Hartarto attended an informal gathering of WTO ministers later that day to discuss the WTO reform agenda.
Hartarto departed for Paris, France, to attend a series of meetings, especially the 2025 Ministerial Council Meeting of the Organization for Economic Co-operation and Development (OECD) from June 3 to 4.
During the meeting, he is scheduled to officially submit an Initial Memorandum (IM) to the OECD Secretary-General, Mathias Cormann.
The IM is a key document in Indonesia's OECD accession process, providing an independent assessment of the alignment between national regulations, standards, and practices with OECD norms and standards.
According to the Accession Roadmap, Indonesia's IM consists of 32 chapters covering 240 OECD legal instruments. Antara News
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Indonesia Cements Status as China’s Top ASEAN Partner with Historic Currency Pact – EBC Financial Group Insights
With bilateral trade projected to hit USD160B in 2025, Indonesia’s Yuan-Rupiah pact with China for de-dollarisation and reshapes ASEAN’s financial future.
JAKARTA, INDONESIA - Media OutReach Newswire - 5 June 2025 - As one of China's largest ASEAN trading partners, with bilateral commerce reaching USD147.80 billion in 2024 (6.1% YoY growth), Indonesia has solidified its economic ties with China. During Chinese Premier Li Qiang's state visit ahead of the ASEAN-GCC-China Summit, the two nations signed four new MoUs—most critically, an upgraded Local Currency Settlement (LCS) pact between Bank Indonesia (BI) and the People's Bank of China (PBOC). EBC Financial Group (EBC), a leading brokerage firm, examines how this agreement redefines Indonesia's economic resilience.
Sectoral Wins: The Foundation for Deeper Ties
The accords support Indonesia's LCS framework across key sectors. Trade and tourism will benefit from streamlined visa policies, targeting 2 million Chinese visitors in 2025. A USD5 billion commitment for twin industrial parks (Fujian-Batang SEZ) will create over 100,000 jobs. Soft power initiatives, like joint TB vaccine research and media collaboration, strengthen people-to-people ties.
The LCS Breakthrough: Financial Sovereignty in Action
The BI-PBOC agreement enables Rupiah-Yuan use in capital accounts, offering three advantages:
ASEAN's New Template: Unity Amid Global Realignments
China-ASEAN trade hit USD330B (Jan-Apr 2025, +9.2% YoY), with Indonesia leading regional integration. The upgraded CAFTA 3.0 and ASEAN-GCC-China Summit highlight diversified economic partnerships. As Barrett notes, "Indonesia is crafting a blueprint for monetary diversification. The Local Currency Settlement (LCS) deal illustrates how mid-sized economies can reduce overreliance on a single dominant currency, balancing regional cohesion with global standards." Media Outreach
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Malaysia seeks strategic ties with China's Anhui in digital, green tech, palm oil
HUANGSHAN: Malaysia is seeking to forge strategic partnerships with China's Anhui Province in the digital economy, green technology and palm oil sectors under the Regional Comprehensive Economic Partnership (RCEP) framework to expand future-oriented regional cooperation.
Malaysia's former Special Envoy to China, Tan Kok Wai, said the RCEP has created a conducive platform for deeper bilateral engagement, particularly in innovation-led industries such as e-commerce, electric vehicles (EVs), clean energy and digital infrastructure.
"Malaysia is ready to collaborate with Anhui's forward-looking enterprises to shape the next chapter of high-quality development," he said at the 2025 RCEP Local Governments and Friendship Cities Cooperation (Huangshan) Forum held here today.
Digital and clean energy cooperation in focus
Highlighting Malaysia's efforts to grow its digital economy, Tan said Malaysia welcomes participation from Anhui's top firms, including Sungrow Power and iFlytek, in projects related to green data centres and smart city development.
"Penang and Malacca are currently being developed as pilot smart cities, and Malaysia also aims to position itself as an ASEAN data hub – a move that could benefit from technological collaboration with Chinese innovators," he said. NST
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Make America Healthy Again legislation in Louisiana. See the nutrition and ingredient changes
Louisiana legislators have passed Senate Bill 14 (SB14), which is a measure aimed at reforming how schools, food manufacturers and restaurants label nutrition and ingredients.
The bill will now go to Gov. Jeff Landry's desk for signature and, after receiving signature, the legislation will go into effect.
This legislation is in alignment with the "Make America Healthy Again" initiative, which is backed by U.S. Department of Health and Human Services Secretary Robert F. Kennedy Jr.
Louisiana passes Make America Healthy Again bill. How will nutrition be reformed?
Senate Bill 14 stipulates that certain foods be served in schools, education continue for certain healthcare providers, manufacturers disclose certain ingredients and that food establishments disclose usage of seed oils, according to the bill's text.
How will school food change under SB14?
Under the legislation, public schools will not serve students any food or beverage containing prohibited ingredients, and non-public schools that receive state funding will also not serve any food or beverage containing a prohibited ingredient. This provision applies to breakfasts and lunches served to students on school campuses during regular school hours, however, food in vending machines and concession stands are exempt from this provision, according to SB14.
The prohibited ingredients listed in SB14 include: Read more at Shreveport Times
EU wants to tackle global deforestation but meets resistance at home
As forests around the globe vanish at alarming rates, the EU is promoting tough new rules to curb deforestation and products linked to it. But political pressure is mounting at home to water them down, with heavy bureaucracy a primary concern.
The world's forests are under threat: hundreds of millions of hectares of forest have been cleared in recent decades. The European Union wants to slow this trend - but calls to delay new rules are growing louder.
Every minute of every hour of every day, the equivalent of eighteen football pitches of tropical rainforest was destroyed last year, according to data from the University of Maryland and the World Resources Institute (WRI).
Tally it all up and the world lost 67,000 square kilometres of precious primary tropical forest in one year alone, an area twice the size of Belgium or Taiwan.
Tropical forests, which harbour the highest concentrations of biodiversity, are the most threatened of any forest biomes on the planet. They are also sponges for CO2, helping to prevent global temperatures from rising even faster than they have.
'In 2025, governments must take bold action to get on track,' a coalition of nearly 40 non-governmental organisations, think-tanks and forest research bodies have urged in a document outlining policy proposals.
To minimise its contribution to world-wide deforestation and promote more sustainable practices among companies operating in the bloc, the EU has so far brought forward the Deforestation Regulation (EUDR).
However, as part of a wider push against the EU's Green Deal - its cornerstone climate strategy to make Europe climate-neutral by 2050 - member states are calling for further delays to the application of the law.
What does the EUDR stand for?
The EUDR's goal is to stop products from entering or leaving the European market if they are made by cutting down trees. Under this law, cattle, cocoa, coffee, palm oil, rubber, soya and wood may only be sold in the EU if no forests have been cleared for them after 2020.
Firms importing the merchandise in question to the 27-nation bloc will be responsible for tracking their supply chains to prove goods did not originate from deforested zones, relying on geolocation and satellite data.
Anyone who fails to comply with the regulations faces heavy fines of at least 4 percent of annual turnover in the EU. Satellite and DNA analysis will be used to verify the origin of the products and whether the requirements are being met.
In the EU, Spain for example has a 'special responsibility' to reduce deforestation as it is the largest European importer of soybeans, according to a warning issued last year by the NGO Alianza Cero Deforestación.
Companies are however far from meeting this tracking requirement. In Germany, for example, Environmental Action Germany (DUH) found that out of 32 surveyed companies across the meat, poultry, dairy, and feed industries - as well as system catering, wholesale, and retail sectors - only four could trace their soy, and just three their palm oil, back to the original cultivation area.
Taking into account the production and use of the seven listed raw materials, the European Commission last month unveiled its first benchmark that classifies countries based on the level of deforestation risk of producing commodities that are not deforestation-free.
Russia, Belarus, North Korea and Myanmar are the only four countries considered to be at high risk of deforestation, while Brazil and Indonesia - in the past often criticised for their extensive deforestation of rainforests - are currently placed in the medium risk category.
The list raised eyebrows among EU member states and environmental groups. Read more Agerpres
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Indonesia reaffirms commitment to multilateral trade at WTO
Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto reaffirmed Indonesia's commitment to the multilateral trading system during a meeting with World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala in Paris on Tuesday, local time.
"The WTO has a key and irreplaceable role in promoting and strengthening the rules-based multilateral trading system," he noted in a statement on Wednesday.
He also discussed several developments in the national agenda with the WTO, including issues related to agriculture, fisheries, and trade in electronic systems.
The WTO serves as a forum for negotiating international trade agreements and includes a dispute settlement mechanism. The organization currently has 166 member countries, with some three-quarters being developing countries.
Indonesia's membership in the WTO is governed by Law Number 7 of 1994, which concerns the Agreement on the Establishment of the World Trade Organization.
Through its membership, Indonesia has benefited significantly in expanding international trade by utilizing principles and facilitation measures such as National Treatment, Most Favored Nations (MFN), Special and Differential Treatment (SDT), and capacity-building programs.
Related news: Indonesia backs WTO efforts to ease trade tensions
In addition to his meeting with the WTO Director General, Minister Hartarto attended an informal gathering of WTO ministers later that day to discuss the WTO reform agenda.
Hartarto departed for Paris, France, to attend a series of meetings, especially the 2025 Ministerial Council Meeting of the Organization for Economic Co-operation and Development (OECD) from June 3 to 4.
During the meeting, he is scheduled to officially submit an Initial Memorandum (IM) to the OECD Secretary-General, Mathias Cormann.
The IM is a key document in Indonesia's OECD accession process, providing an independent assessment of the alignment between national regulations, standards, and practices with OECD norms and standards.
According to the Accession Roadmap, Indonesia's IM consists of 32 chapters covering 240 OECD legal instruments. Antara News
---------
Indonesia Cements Status as China’s Top ASEAN Partner with Historic Currency Pact – EBC Financial Group Insights
With bilateral trade projected to hit USD160B in 2025, Indonesia’s Yuan-Rupiah pact with China for de-dollarisation and reshapes ASEAN’s financial future.
JAKARTA, INDONESIA - Media OutReach Newswire - 5 June 2025 - As one of China's largest ASEAN trading partners, with bilateral commerce reaching USD147.80 billion in 2024 (6.1% YoY growth), Indonesia has solidified its economic ties with China. During Chinese Premier Li Qiang's state visit ahead of the ASEAN-GCC-China Summit, the two nations signed four new MoUs—most critically, an upgraded Local Currency Settlement (LCS) pact between Bank Indonesia (BI) and the People's Bank of China (PBOC). EBC Financial Group (EBC), a leading brokerage firm, examines how this agreement redefines Indonesia's economic resilience.
Sectoral Wins: The Foundation for Deeper Ties
The accords support Indonesia's LCS framework across key sectors. Trade and tourism will benefit from streamlined visa policies, targeting 2 million Chinese visitors in 2025. A USD5 billion commitment for twin industrial parks (Fujian-Batang SEZ) will create over 100,000 jobs. Soft power initiatives, like joint TB vaccine research and media collaboration, strengthen people-to-people ties.
The LCS Breakthrough: Financial Sovereignty in Action
The BI-PBOC agreement enables Rupiah-Yuan use in capital accounts, offering three advantages:
- Trade Shield: Bilateral trade (USD147.80B in 2024, +6.1% YoY) avoids costly USD conversions for exports like palm oil and nickel.
- Rate Cut Buffer: BI gains flexibility with 5.3% of reserves in yuan, easing policy without destabilising the Rupiah.
- BRICS Leverage: Access to New Development Bank funding supports President Prabowo's USD20B infrastructure agenda, reducing dollar reliance.
ASEAN's New Template: Unity Amid Global Realignments
China-ASEAN trade hit USD330B (Jan-Apr 2025, +9.2% YoY), with Indonesia leading regional integration. The upgraded CAFTA 3.0 and ASEAN-GCC-China Summit highlight diversified economic partnerships. As Barrett notes, "Indonesia is crafting a blueprint for monetary diversification. The Local Currency Settlement (LCS) deal illustrates how mid-sized economies can reduce overreliance on a single dominant currency, balancing regional cohesion with global standards." Media Outreach
---------
Malaysia seeks strategic ties with China's Anhui in digital, green tech, palm oil
HUANGSHAN: Malaysia is seeking to forge strategic partnerships with China's Anhui Province in the digital economy, green technology and palm oil sectors under the Regional Comprehensive Economic Partnership (RCEP) framework to expand future-oriented regional cooperation.
Malaysia's former Special Envoy to China, Tan Kok Wai, said the RCEP has created a conducive platform for deeper bilateral engagement, particularly in innovation-led industries such as e-commerce, electric vehicles (EVs), clean energy and digital infrastructure.
"Malaysia is ready to collaborate with Anhui's forward-looking enterprises to shape the next chapter of high-quality development," he said at the 2025 RCEP Local Governments and Friendship Cities Cooperation (Huangshan) Forum held here today.
Digital and clean energy cooperation in focus
Highlighting Malaysia's efforts to grow its digital economy, Tan said Malaysia welcomes participation from Anhui's top firms, including Sungrow Power and iFlytek, in projects related to green data centres and smart city development.
"Penang and Malacca are currently being developed as pilot smart cities, and Malaysia also aims to position itself as an ASEAN data hub – a move that could benefit from technological collaboration with Chinese innovators," he said. NST
---------
Make America Healthy Again legislation in Louisiana. See the nutrition and ingredient changes
Louisiana legislators have passed Senate Bill 14 (SB14), which is a measure aimed at reforming how schools, food manufacturers and restaurants label nutrition and ingredients.
The bill will now go to Gov. Jeff Landry's desk for signature and, after receiving signature, the legislation will go into effect.
This legislation is in alignment with the "Make America Healthy Again" initiative, which is backed by U.S. Department of Health and Human Services Secretary Robert F. Kennedy Jr.
Louisiana passes Make America Healthy Again bill. How will nutrition be reformed?
Senate Bill 14 stipulates that certain foods be served in schools, education continue for certain healthcare providers, manufacturers disclose certain ingredients and that food establishments disclose usage of seed oils, according to the bill's text.
How will school food change under SB14?
Under the legislation, public schools will not serve students any food or beverage containing prohibited ingredients, and non-public schools that receive state funding will also not serve any food or beverage containing a prohibited ingredient. This provision applies to breakfasts and lunches served to students on school campuses during regular school hours, however, food in vending machines and concession stands are exempt from this provision, according to SB14.
The prohibited ingredients listed in SB14 include: Read more at Shreveport Times
June 04, 2025
Indonesia and Malaysia at the Forefront of Sustainable Aviation Fuels
By: Suci Haryati, Senior Staff for Communication at the Council of Palm Oil Producing Countries.
At the Sustainable Aviation Futures Congress 2025, held on 7–8 May in Amsterdam, the Netherlands, the global aviation industry convened to advance innovation, certification, and policy alignment for sustainable aviation fuels (SAF). This congress, however, took place amidst challenging against the European Union (EU) regulations—namely RED II, RED III, and the ReFuelEU Aviation Regulation—which exclude palm oil and its derivatives from approved SAF feedstocks, citing concerns over indirect land-use change (ILUC).
This exclusion challenges the credibility of global sustainability efforts, particularly for developing countries that possess vast low-emission feedstock resources. In this complex policy landscape, Indonesia and Malaysia—home to the world’s largest palm oil industries—have a crucial role to play. By advocating for inclusive SAF standards and scaling production based on certified sustainable residues, they are uniquely positioned to lead a more effective transition to net-zero aviation.
Indonesia and Malaysia have launched strategically aligned SAF initiatives, reflecting their commitment to climate goals while aligning with national capabilities and global expectations. Indonesia unveiled its SAF Roadmap at the 2024 Bali International Airshow. The national mandate requires international flights to use 1 percent SAF by 2027, rising to 2.5 percent by 2030 and 50 percent by 2060. These developments position Indonesia as a future key player in the global SAF market.
Meanwhile Malaysia launched the Malaysia Aviation Decarbonization Blueprint (MADB) last year, targeting net-zero emissions by 2050. Policy mandates will begin as early as 2027, requiring an initial SAF blend for international flights, with progressive targets set thereafter.
The Blending Target for SAF in Indonesia, Malaysia, and Other Countries
Potentials and Challenges in SAF Production
Indonesia holds a strategic advantage through its diverse feedstock availability and preparedness in SAF production. As the world’s largest producer of crude palm oil (CPO), contributing over 50 percent of global supply, Indonesia is well-positioned to tap into renewable feedstock streams such as palm kernel oil (PKO), palm fatty acid distillate (PFAD), and used cooking oil (UCO). In 2023, the estimated domestic availability of UCO reached 3.9 million tons per year, underscoring the scale of this potential. Pertamina’s SAF production capacity is projected to reach 306 million liters annually by 2027, primarily via co-processing technologies using these feedstocks. The Cilacap Refinery, owned by PT Pertamina, is set to produce ISCC-certified SAF from UCO starting in Q1 2025, with an estimated annual capacity of 300,000 kiloliters.
Malaysia’s access to diverse and abundant feedstock resources underpins its potential in advancing SAF development. With over 18 million tons of crude palm oil produced annually, it offers a solid base for SAF production via Hydroprocessed Esters and Fatty Acids (HEFA) pathways. Other feedstocks, including PKO, PFAD, and UCO, are available. Malaysia’s SAF production is expected to begin in 2027, targeting an initial capacity of one million metric tons per year. This initiative is supported by a consortium involving EcoCeres Renewable Fuels Sdn Bhd, Petronas, Enilive, and Euglena, which plans to build two SAF refineries with capacities of 350,000 and 650,000 metric tons per year, respectively. Malaysia’s SAF blending mandate starts at 1 percent in 2027 and is set to rise to 47 percent by 2043.
However, both countries share not only a mutual interest in unlocking SAF’s potential to reduce aviation emissions, create green jobs, and elevate regional competitiveness, but also common challenges. In Indonesia, the primary hurdle stems from an underdeveloped SAF ecosystem which currently relies heavily on HEFA-based production using Palm Kernel Oil (PKO). While the national roadmap acknowledges alternatives such as PFAD and UCO, both are not yet fully optimized for domestic use, in part due to the evolving collection systems and the current orientation toward export markets.
Malaysia confronts similar barriers. A key issue is the need for a robust policy framework that mandates SAF blending or incentivizes SAF investments. Feedstock aggregation also remains a logistical barrier, with UCO and other biomass streams requiring traceability upgrades to meet international standards. Nonetheless, scaling SAF in both countries will depend heavily on their ability to navigate challenges related to sustainability certification, feedstock logistics, technological readiness, regulatory clarity, and market demand. If these barriers can be addressed with coordinated regional and international support, both Indonesia and Malaysia are well-positioned to become key players in the global SAF transition.
Advancing Climate Commitments
To facilitate the coordinated regional and international support, the Council of Palm Oil Producing Countries (CPOPC), established by Indonesia and Malaysia in 2015, held bilateral talks with the representative of the International Civil Aviation Organization (ICAO) during the SAF Congress. The dialogue emphasized the palm oil’s strategic potential in addressing energy security challenges. Both parties agreed to treat the conversation as a starting point for deeper communication. CPOPC also was encouraged to leverage ICAO’s platform for stronger advocacy on palm oil-based SAF.
The ICAO, through its Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), recognizes that SAF derived from waste and residue feedstocks—such as used cooking oil (UCO) and palm fatty acid distillate (PFAD)—can significantly reduce lifecycle greenhouse gas (GHG) emissions in comparison to traditional fossil-based jet fuels. They suggest possible emission reductions of roughly 84 percent and 77 percent, respectively.
Both Indonesia and Malaysia have pledged ambitious climate targets under their Nationally Determined Contributions (NDCs) to the Paris Agreement. Indonesia aims to cut greenhouse gas emissions by 43.2 percent by 2030 with international support, while Malaysia commits to reducing emissions intensity of GDP by 45 percent by 2030, also with external support. SAF deployment offers a tangible pathway to meet these targets—particularly in the hard-to-abate aviation sector.
For instance, Indonesia’s aviation sector emits approximately 12 million tons of CO annually (pre-COVID), and a 5 percent SAF blend could reduce this by nearly 500,000 tons each year. Malaysia’s aviation emissions are around 6 million tons annually; a similar SAF adoption could cut these by 250,000 tons per year.
The broader recognition of palm oil-based residues and waste is one of priorities for CPOPC’s advocacy. Through SAF collaboration, Indonesia and Malaysia can significantly contribute to ICAO’s target of zero carbon emissions in aviation by 2050. This reinforces their roles as key partners in global climate mitigation efforts and aligns with their active participation in international forums such as the UNFCCC and COP.
Driving Market Expansion
Transitioning to SAF not only strengthens climate action but also enables Indonesia and Malaysia to showcase sustainable innovation that supports rural development and energy resilience. However, challenges persist. The EU’s Renewable Energy Directives (RED II and III) and the ReFuelEU Aviation regulation have excluded palm oil and its derivatives (e.g., PFAD) from the list of approved SAF feedstocks, citing concerns about indirect land-use change (ILUC). This exclusion restricts access to the EU SAF market and raises concerns over climate justice, as developing countries that are actively participating in the energy transition are not granted equal recognition for their locally sourced, low-emission feedstocks.
Nonetheless, global SAF market growth offers new opportunities. By 2025, Asia-Pacific SAF production capacity is projected to reach 3.5 million metric tons annually. While regional demand remains limited due to insufficient policy support and the higher cost of SAF, this could enable Indonesia and Malaysia to become net SAF exporters, particularly to markets like Japan, South Korea, Australia, China, and North America.
To seize this opportunity, Indonesia and Malaysia should work hand in hand to advance scientific evidence supporting the certification of PKE as a residual feedstock under CORSIA; harmonizing ISPO and MSPO with global certification standards such as ISCC; facilitating pilot projects with Pertamina and Petronas; and advocating for the important role of the Global South in energy security and climate justice within the global SAF dialogue. Together, they can consolidate their respective advantages—Indonesia’s raw material supply and early production capacity, and Malaysia’s infrastructure and investment networks—to build a credible and scalable SAF supply chain.
As the world accelerates toward net-zero emissions, Indonesia and Malaysia are well-positioned to lead emerging economies in providing real climate solutions. Their joint SAF collaboration can shape the future of low-emission aviation while reinforcing international solidarity in the face of climate change. Their leadership in pioneering SAF strategies represents the next chapter in equitable and sustainable air travel. Tempo
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Platts proposes updates to Malaysia POME assessment laycan and specifications
Platts, part of S&P Global Commodity Insights, is proposing to update its Asia Palm Oil Mill Effluent (POME) FOB Malaysia assessment (APOMB00), effective July 1, 2025, to better reflect the typical quality and loading laycan of POME currently traded in the spot market.
Platts has observed the maximum free fatty acids (FFA) value for Asia POME has been trending lower due to the market practice of collecting fresher POME with a lower FFA value from palm oil mills. Therefore, Platts is proposing to update its POME FOB Malaysia assessment to reflect a FFA of maximum 50%.
Other quality specifications reflected would remain unchanged.
Platts is also proposing to narrow the loading period for its POME FOB Malaysia assessment to better reflect typical trading norms.
Platts proposes to reflect POME cargoes loading during a 45-day period covering three half months, starting 15 days forward from the date of publication. The assessment laycan would roll over to the next 45 days on the 1st and 16th of each month, or the first publishing day after if they fall on weekends or a public holiday.
For example, on Aug. 1, 2025, the Platts POME FOB Malaysia assessment would reflect cargoes loading Aug 16 to Sept. 30 reflecting H2 August, H1 September and H2 September. On Aug. 18, 2025, the assessment would reflect cargoes loading in H1 September, H2 September and H1 October.
The proposed changes to assessment laycan and quality specifications are listed in the table below:
Asia POME FOB Malaysia (APOMB00) SP Global
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Platts proposes to launch Indonesia domestic POME assessment, Aug 1
Platts, part of S&P Global Commodity Insights, is proposing to launch a daily assessment for Indonesia domestic palm oil mill effluent, effective Aug. 1, 2025.
Indonesia produces about 2 million mt/year of POME, according to data from S&P Global Commodity Insights. As the country increases the biodiesel blend in road transportation, it has largely reduced the export of POME and kept its production for the domestic market. Indonesia's domestic biodiesel demand is expected to grow further in the near term. The proposed assessment will reflect domestic POME spot prices in this important market.
The proposed Indonesia POME domestic assessment would reflect a free fatty acid (FFA) value of a maximum of 50%, a moisture content of a maximum of 3% and a total fatty matter of a minimum of 95%.
The assessment would reflect a cargo size of 100-2,000 mt, loading one to seven days forward from the date of publication on a delivered-at-place (DAP) Dumai, Sumatra Island, basis. The assessment would also consider cargoes delivering to other locations in the Sumatra Island, including Belawan, Palembang, Lampung and Aceh, by normalizing back to the basis location of Dumai. Other volumes may also be considered by normalizing back to the stated volume specifications. The proposed assessment would reflect cargo values inclusive of 12% value-added tax.
The proposed assessment would have the following specifications:
The proposed assessment would be published in Indonesian Rupiah/kg (IDR/kg), and converted to a US dollar/mt equivalence using the Platts assessed US dollar IDR exchange rate (IDRUS00).
The exchange rate follows the Singapore publishing calendar; Platts will use the last published exchange rate to derive the US$/mt conversion during Singapore holidays.
The proposed daily assessment would be published on Platts Biofuels Alert pages 2310, 2311 and 2312, in the daily Platts Biofuelscan and the Weekly Biomass-Based Diesel Report.
The proposed daily Indonesia POME domestic assessment would reflect a 4:30 pm Penang time market close and follow the Penang publishing schedule.
Platts invites feedback, comments and questions on this proposal by June 27 to [email protected] and [email protected].
For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request. SP Global
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Indonesia and Malaysia at the Forefront of Sustainable Aviation Fuels
By: Suci Haryati, Senior Staff for Communication at the Council of Palm Oil Producing Countries.
At the Sustainable Aviation Futures Congress 2025, held on 7–8 May in Amsterdam, the Netherlands, the global aviation industry convened to advance innovation, certification, and policy alignment for sustainable aviation fuels (SAF). This congress, however, took place amidst challenging against the European Union (EU) regulations—namely RED II, RED III, and the ReFuelEU Aviation Regulation—which exclude palm oil and its derivatives from approved SAF feedstocks, citing concerns over indirect land-use change (ILUC).
This exclusion challenges the credibility of global sustainability efforts, particularly for developing countries that possess vast low-emission feedstock resources. In this complex policy landscape, Indonesia and Malaysia—home to the world’s largest palm oil industries—have a crucial role to play. By advocating for inclusive SAF standards and scaling production based on certified sustainable residues, they are uniquely positioned to lead a more effective transition to net-zero aviation.
Indonesia and Malaysia have launched strategically aligned SAF initiatives, reflecting their commitment to climate goals while aligning with national capabilities and global expectations. Indonesia unveiled its SAF Roadmap at the 2024 Bali International Airshow. The national mandate requires international flights to use 1 percent SAF by 2027, rising to 2.5 percent by 2030 and 50 percent by 2060. These developments position Indonesia as a future key player in the global SAF market.
Meanwhile Malaysia launched the Malaysia Aviation Decarbonization Blueprint (MADB) last year, targeting net-zero emissions by 2050. Policy mandates will begin as early as 2027, requiring an initial SAF blend for international flights, with progressive targets set thereafter.
The Blending Target for SAF in Indonesia, Malaysia, and Other Countries
Potentials and Challenges in SAF Production
Indonesia holds a strategic advantage through its diverse feedstock availability and preparedness in SAF production. As the world’s largest producer of crude palm oil (CPO), contributing over 50 percent of global supply, Indonesia is well-positioned to tap into renewable feedstock streams such as palm kernel oil (PKO), palm fatty acid distillate (PFAD), and used cooking oil (UCO). In 2023, the estimated domestic availability of UCO reached 3.9 million tons per year, underscoring the scale of this potential. Pertamina’s SAF production capacity is projected to reach 306 million liters annually by 2027, primarily via co-processing technologies using these feedstocks. The Cilacap Refinery, owned by PT Pertamina, is set to produce ISCC-certified SAF from UCO starting in Q1 2025, with an estimated annual capacity of 300,000 kiloliters.
Malaysia’s access to diverse and abundant feedstock resources underpins its potential in advancing SAF development. With over 18 million tons of crude palm oil produced annually, it offers a solid base for SAF production via Hydroprocessed Esters and Fatty Acids (HEFA) pathways. Other feedstocks, including PKO, PFAD, and UCO, are available. Malaysia’s SAF production is expected to begin in 2027, targeting an initial capacity of one million metric tons per year. This initiative is supported by a consortium involving EcoCeres Renewable Fuels Sdn Bhd, Petronas, Enilive, and Euglena, which plans to build two SAF refineries with capacities of 350,000 and 650,000 metric tons per year, respectively. Malaysia’s SAF blending mandate starts at 1 percent in 2027 and is set to rise to 47 percent by 2043.
However, both countries share not only a mutual interest in unlocking SAF’s potential to reduce aviation emissions, create green jobs, and elevate regional competitiveness, but also common challenges. In Indonesia, the primary hurdle stems from an underdeveloped SAF ecosystem which currently relies heavily on HEFA-based production using Palm Kernel Oil (PKO). While the national roadmap acknowledges alternatives such as PFAD and UCO, both are not yet fully optimized for domestic use, in part due to the evolving collection systems and the current orientation toward export markets.
Malaysia confronts similar barriers. A key issue is the need for a robust policy framework that mandates SAF blending or incentivizes SAF investments. Feedstock aggregation also remains a logistical barrier, with UCO and other biomass streams requiring traceability upgrades to meet international standards. Nonetheless, scaling SAF in both countries will depend heavily on their ability to navigate challenges related to sustainability certification, feedstock logistics, technological readiness, regulatory clarity, and market demand. If these barriers can be addressed with coordinated regional and international support, both Indonesia and Malaysia are well-positioned to become key players in the global SAF transition.
Advancing Climate Commitments
To facilitate the coordinated regional and international support, the Council of Palm Oil Producing Countries (CPOPC), established by Indonesia and Malaysia in 2015, held bilateral talks with the representative of the International Civil Aviation Organization (ICAO) during the SAF Congress. The dialogue emphasized the palm oil’s strategic potential in addressing energy security challenges. Both parties agreed to treat the conversation as a starting point for deeper communication. CPOPC also was encouraged to leverage ICAO’s platform for stronger advocacy on palm oil-based SAF.
The ICAO, through its Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), recognizes that SAF derived from waste and residue feedstocks—such as used cooking oil (UCO) and palm fatty acid distillate (PFAD)—can significantly reduce lifecycle greenhouse gas (GHG) emissions in comparison to traditional fossil-based jet fuels. They suggest possible emission reductions of roughly 84 percent and 77 percent, respectively.
Both Indonesia and Malaysia have pledged ambitious climate targets under their Nationally Determined Contributions (NDCs) to the Paris Agreement. Indonesia aims to cut greenhouse gas emissions by 43.2 percent by 2030 with international support, while Malaysia commits to reducing emissions intensity of GDP by 45 percent by 2030, also with external support. SAF deployment offers a tangible pathway to meet these targets—particularly in the hard-to-abate aviation sector.
For instance, Indonesia’s aviation sector emits approximately 12 million tons of CO annually (pre-COVID), and a 5 percent SAF blend could reduce this by nearly 500,000 tons each year. Malaysia’s aviation emissions are around 6 million tons annually; a similar SAF adoption could cut these by 250,000 tons per year.
The broader recognition of palm oil-based residues and waste is one of priorities for CPOPC’s advocacy. Through SAF collaboration, Indonesia and Malaysia can significantly contribute to ICAO’s target of zero carbon emissions in aviation by 2050. This reinforces their roles as key partners in global climate mitigation efforts and aligns with their active participation in international forums such as the UNFCCC and COP.
Driving Market Expansion
Transitioning to SAF not only strengthens climate action but also enables Indonesia and Malaysia to showcase sustainable innovation that supports rural development and energy resilience. However, challenges persist. The EU’s Renewable Energy Directives (RED II and III) and the ReFuelEU Aviation regulation have excluded palm oil and its derivatives (e.g., PFAD) from the list of approved SAF feedstocks, citing concerns about indirect land-use change (ILUC). This exclusion restricts access to the EU SAF market and raises concerns over climate justice, as developing countries that are actively participating in the energy transition are not granted equal recognition for their locally sourced, low-emission feedstocks.
Nonetheless, global SAF market growth offers new opportunities. By 2025, Asia-Pacific SAF production capacity is projected to reach 3.5 million metric tons annually. While regional demand remains limited due to insufficient policy support and the higher cost of SAF, this could enable Indonesia and Malaysia to become net SAF exporters, particularly to markets like Japan, South Korea, Australia, China, and North America.
To seize this opportunity, Indonesia and Malaysia should work hand in hand to advance scientific evidence supporting the certification of PKE as a residual feedstock under CORSIA; harmonizing ISPO and MSPO with global certification standards such as ISCC; facilitating pilot projects with Pertamina and Petronas; and advocating for the important role of the Global South in energy security and climate justice within the global SAF dialogue. Together, they can consolidate their respective advantages—Indonesia’s raw material supply and early production capacity, and Malaysia’s infrastructure and investment networks—to build a credible and scalable SAF supply chain.
As the world accelerates toward net-zero emissions, Indonesia and Malaysia are well-positioned to lead emerging economies in providing real climate solutions. Their joint SAF collaboration can shape the future of low-emission aviation while reinforcing international solidarity in the face of climate change. Their leadership in pioneering SAF strategies represents the next chapter in equitable and sustainable air travel. Tempo
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Platts proposes updates to Malaysia POME assessment laycan and specifications
Platts, part of S&P Global Commodity Insights, is proposing to update its Asia Palm Oil Mill Effluent (POME) FOB Malaysia assessment (APOMB00), effective July 1, 2025, to better reflect the typical quality and loading laycan of POME currently traded in the spot market.
Platts has observed the maximum free fatty acids (FFA) value for Asia POME has been trending lower due to the market practice of collecting fresher POME with a lower FFA value from palm oil mills. Therefore, Platts is proposing to update its POME FOB Malaysia assessment to reflect a FFA of maximum 50%.
Other quality specifications reflected would remain unchanged.
Platts is also proposing to narrow the loading period for its POME FOB Malaysia assessment to better reflect typical trading norms.
Platts proposes to reflect POME cargoes loading during a 45-day period covering three half months, starting 15 days forward from the date of publication. The assessment laycan would roll over to the next 45 days on the 1st and 16th of each month, or the first publishing day after if they fall on weekends or a public holiday.
For example, on Aug. 1, 2025, the Platts POME FOB Malaysia assessment would reflect cargoes loading Aug 16 to Sept. 30 reflecting H2 August, H1 September and H2 September. On Aug. 18, 2025, the assessment would reflect cargoes loading in H1 September, H2 September and H1 October.
The proposed changes to assessment laycan and quality specifications are listed in the table below:
Asia POME FOB Malaysia (APOMB00) SP Global
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Platts proposes to launch Indonesia domestic POME assessment, Aug 1
Platts, part of S&P Global Commodity Insights, is proposing to launch a daily assessment for Indonesia domestic palm oil mill effluent, effective Aug. 1, 2025.
Indonesia produces about 2 million mt/year of POME, according to data from S&P Global Commodity Insights. As the country increases the biodiesel blend in road transportation, it has largely reduced the export of POME and kept its production for the domestic market. Indonesia's domestic biodiesel demand is expected to grow further in the near term. The proposed assessment will reflect domestic POME spot prices in this important market.
The proposed Indonesia POME domestic assessment would reflect a free fatty acid (FFA) value of a maximum of 50%, a moisture content of a maximum of 3% and a total fatty matter of a minimum of 95%.
The assessment would reflect a cargo size of 100-2,000 mt, loading one to seven days forward from the date of publication on a delivered-at-place (DAP) Dumai, Sumatra Island, basis. The assessment would also consider cargoes delivering to other locations in the Sumatra Island, including Belawan, Palembang, Lampung and Aceh, by normalizing back to the basis location of Dumai. Other volumes may also be considered by normalizing back to the stated volume specifications. The proposed assessment would reflect cargo values inclusive of 12% value-added tax.
The proposed assessment would have the following specifications:
The proposed assessment would be published in Indonesian Rupiah/kg (IDR/kg), and converted to a US dollar/mt equivalence using the Platts assessed US dollar IDR exchange rate (IDRUS00).
The exchange rate follows the Singapore publishing calendar; Platts will use the last published exchange rate to derive the US$/mt conversion during Singapore holidays.
The proposed daily assessment would be published on Platts Biofuels Alert pages 2310, 2311 and 2312, in the daily Platts Biofuelscan and the Weekly Biomass-Based Diesel Report.
The proposed daily Indonesia POME domestic assessment would reflect a 4:30 pm Penang time market close and follow the Penang publishing schedule.
Platts invites feedback, comments and questions on this proposal by June 27 to [email protected] and [email protected].
For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request. SP Global
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June 03, 2025
How much deforestation do EUDR ‘high-risk’ countries actually have?
03-Jun-2025 by Augustus Bambridge-Sutton
The four countries have varying levels of forest cover loss
https://www.foodnavigator.com/Article/2025/06/03/eudrs-high-risk-countries-deforestation-risk-reviewed/
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Palm remains world’s most important vegetable oil in terms of production
According to the US Department of Agriculture (USDA), global production of vegetable oils in 2025/26 is expected to reach 234.5 million tonnes.
This represents a 6.7 million tonne rise compared to 2024/25. In other words, production could fully cover the projected demand of 228.9 million tonnes.
According to research by Agrarmarkt Informations-Gesellschaft, palm oil is set to remain the world's most important vegetable oil in terms of production and consumption, with global output estimated at a record 80.4 million tonnes. This translates to a 2.2 million tonne increase over 2024/25.
Indonesia remains the largest producer with an output of 47.5 million tonnes, followed by Malaysia with 19.2 million tonnes and Thailand with just under 3.4 million tonnes.
Soybean oil production is expected to grow just under 2.2 million tonnes to 70.8 million tonnes in the coming crop year, potentially setting a new record. China, by far the largest importer of soybeans, remains the main producer of soybean oil with 20.5 million tonnes, followed by the US with just over 13.3 million tonnes. Production of rapeseed oil is projected to rise 617,000 tonnes to a total of 34.5 million tonnes in 2025/26. Sunflower seed oil output is seen to grow around 1.8 million tonnes to 21.9 million tonnes, primarily due to higher production in Ukraine and the EU-27. Biofuels International
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Palm oil expansion in India key to achieving self sufficiency
India is the fourth-largest oilseed producer in the world. It has 20.8 per cent of the total area under cultivation globally, accounting for 10 per cent of global production. The country relies heavily on imports, which account for 57 per cent of its domestic demand for edible oil. In 2022-23, India imported 16.5 million tonne of edible oils. Domestic production fulfilled only 40-45 per cent of the country’s requirements. The NITI Aayog recently estimated that the national supply of edible oil is projected to increase to 16 MT by 2030 and 26.7 MT by 2047 under a Business-As-Usual (BAU) scenario. The edible oil seed production industry is struggling with a set of challenges such as limited access to good quality seeds, poor irrigation facilities in main oilseed-growing areas, Insufficient price support, lack of strong supply chains and lack of awareness about modern and sustainable farming methods among farmers. With favourable policies for oilseed production, use of new agri technologies and sustainable farming methods, modern storage and processing technologies and adoption of the Public-Private partnership model, the edible oil production industry is looking forward to cutting edible oil imports in future.
India depends heavily on edible oil imports due to several basic and policy-related challenges in oilseed farming. Some key issues include small and scattered landholdings that make mechanisation tough, limited access to good-quality seeds, and poor irrigation facilities in the main oilseed-growing areas. Further, many farmers find oilseeds less profitable compared to crops like rice, wheat or fruits, so they grow less of them. Moreover, there isn’t enough price support, strong supply chains, or awareness about modern farming methods. Without government support and strong partnerships with private players, India’s self-reliance in edible oil could be an uphill task.
It’s eye-opening to realise that India is the world’s largest importer of palm oil, consuming around 13 per cent of global production. Yet, only about 4 per cent of what Indian consumers use is grown domestically. The efforts towards increasing palm oil production are much needed as Palm produces up to 10 times more oil per hectare than crops like soyabean or sunflower, making it a highly efficient choice for making self-sufficient India in edible oil production. That’s precisely why the government‘s National Mission on Edible Oils – Oilseeds (NMEO-OP) is prioritising palm cultivation, with a target of growing oil palm on 6.5 lakh hectares by 2025-26.
To read more, click : https://agrospectrumindia.com/e-magazine
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Empowering Oil Palm Farmers: 3F Oil Palm and AP Govt. launch awareness campaign in 50 villages
02 June 2025, Hyderabad: 3F Oil Palm Pvt. Ltd., in collaboration with the Department of Horticulture, Andhra Pradesh, has initiated an extensive farmer awareness program aimed at promoting sustainable oil palm cultivation across the state. The initiative is being conducted in Eluru, West Godavari, and East Godavari districts, covering a total of 50 villages.
The program focuses on educating farmers about best practices in oil palm farming, including agronomy techniques, input management, disease control, and sustainable harvesting methods. Through interactive sessions, demonstrations, and expert consultations, the campaign seeks to empower farmers with the knowledge and tools necessary to increase productivity and profitability.
India currently imports over 60% of its edible oil requirements, with annual imports exceeding 13 million tonnes. To counter this, the Government of India launched the National Mission on Edible Oils–Oil Palm (NMEO-OP) with the goal of bringing an additional 6.5 lakh hectares under oil palm cultivation by 2025–26.
Andhra Pradesh plays a pivotal role in this mission, contributing more than 60% of India’s total oil palm cultivation. With over 1.5 lakh hectares currently under oil palm, the state is a key driver in reducing dependency on imports and enhancing domestic production. Krishak Jagat
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Indonesia targets US$618 B in sustainable downstream investment: BKPM
Indonesia is setting its sights on becoming a global hub for sustainable industrial development, with an investment roadmap worth up to US$618 billion in downstream sectors by 2040.
Addressing the ESG Forum 2025 on Monday, June 2, 2025, Deputy for Investment Implementation Control at the Ministry of Investment/Investment Coordinating Board (BKPM), Eddy Junaedi, said that the country’s economic strategy is now inseparable from environmental, social, and governance (ESG) principles.
He highlighted that President Prabowo Subianto’s medium-term development plan for 2025–2029 targets 8 percent annual economic growth and total investment of over Rp13,000 trillion. At the heart of this strategy is downstream industrialization − especially in mining and metal-based industries − which aims to add value to Indonesia’s natural resources while ensuring long-term sustainability.
Indonesia already leads the world in nickel production and ranks among the top producers of tin, bauxite, palm oil, and rubber. These resources are now being processed domestically into high-value products like electric vehicle (EV) batteries and stainless steel. Eddy cited that Indonesia’s goal is to become one of the world’s top five EV battery producers and the second-largest stainless steel exporter by 2040.
“ The country’s investment momentum is strong. In the first quarter of 2025, Indonesia recorded Rp465.2 trillion in investment realization − 24.4 percent of its annual target − with nearly 30 percent of that flowing into downstream sectors. This trend follows the ban on raw nickel exports under Law No. 3/2020, which spurred a rapid expansion of domestic processing. Today, 194 businesses are operating or in development, including 188 nickel smelters and six EV battery production facilities,” he said.
He, however, noted that growth must be paired with responsibility. “Environmental and social concerns are no longer just ideals − they are market requirements,” he said.
Global demand for sustainable, low-emission raw materials is reshaping investment priorities and compelling mining and industrial sectors to implement ESG-compliant practices.
To support this shift, the Indonesian government has introduced several policy instruments, including the Sustainable Investment Guidelines (SIG), launched at the G20 Summit in Bali in 2022. These guidelines, formalized in Ministerial Decree No. 223/2022, provide a national framework to help investors and businesses align with international sustainability standards.
“ESG is not just a policy checkbox − it is a strategic imperative,” Eddy emphasized.
He added that Indonesia’s mineral processing capacity plays a vital role in the global energy transition and in achieving the country’s 2060 net-zero emission target.
Closing his remarks, Eddy called for greater synergy between government agencies, businesses, and international partners. “Let us work together to build an investment climate that is competitive, inclusive, and sustainable. The ESG Forum 2025 should be a turning point in aligning investment with long-term environmental and economic goals,” he said. Indonesia Business Post
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Southeast Asia: Total & RGE's Low-Carbon Energy Integration
TotalEnergies and RGE to deliver 1 GW of renewable electricity from Indonesia to Singapore, strengthening Southeast Asia's low-carbon energy integration
A major cross-border energy development is moving ahead in Southeast Asia as TotalEnergies and Royal Golden Eagle (RGE) commit to supplying 1GW of clean electricity from Indonesia to Singapore.
The conditional licence, granted by Singapore’s Energy Market Authority (EMA), enables the import of clean firm power from Indonesia and the supply of electricity to industrial users in Riau Province.
A regional clean power partnership
The announcement took place in the presence of French President Emmanuel Macron and Indonesian President Prabowo Subianto, the project reflects both political will and private sector ambition.
Through their joint venture, Singa Renewables, TotalEnergies and RGE secured the support of Singapore’s EMA and confirmed their strategy to support clean power integration across borders.
The partners signed a Memorandum of Understanding with Singapore Energy Interconnections (SGEI) to jointly develop the subsea interconnector, enabling electricity imports from Indonesia to Singapore.
The partners also signed a Co-Investment Agreement to develop, build and operate a hybrid renewable power plant comprising a solar farm, Battery Energy Storage System (BESS) and a subsea cable in Indonesia.
By mixing solar with storage, the system offers what’s known as clean firm power — renewable electricity that remains reliable even when the sun isn’t shining.
This is key to replacing fossil fuel baseload sources in both domestic and exported supply.
“We are doing our part to accelerate the region’s clean energy transition,” said Imelda Tanoto, Managing Director at RGE. Energy Digital
How much deforestation do EUDR ‘high-risk’ countries actually have?
03-Jun-2025 by Augustus Bambridge-Sutton
The four countries have varying levels of forest cover loss
https://www.foodnavigator.com/Article/2025/06/03/eudrs-high-risk-countries-deforestation-risk-reviewed/
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Palm remains world’s most important vegetable oil in terms of production
According to the US Department of Agriculture (USDA), global production of vegetable oils in 2025/26 is expected to reach 234.5 million tonnes.
This represents a 6.7 million tonne rise compared to 2024/25. In other words, production could fully cover the projected demand of 228.9 million tonnes.
According to research by Agrarmarkt Informations-Gesellschaft, palm oil is set to remain the world's most important vegetable oil in terms of production and consumption, with global output estimated at a record 80.4 million tonnes. This translates to a 2.2 million tonne increase over 2024/25.
Indonesia remains the largest producer with an output of 47.5 million tonnes, followed by Malaysia with 19.2 million tonnes and Thailand with just under 3.4 million tonnes.
Soybean oil production is expected to grow just under 2.2 million tonnes to 70.8 million tonnes in the coming crop year, potentially setting a new record. China, by far the largest importer of soybeans, remains the main producer of soybean oil with 20.5 million tonnes, followed by the US with just over 13.3 million tonnes. Production of rapeseed oil is projected to rise 617,000 tonnes to a total of 34.5 million tonnes in 2025/26. Sunflower seed oil output is seen to grow around 1.8 million tonnes to 21.9 million tonnes, primarily due to higher production in Ukraine and the EU-27. Biofuels International
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Palm oil expansion in India key to achieving self sufficiency
India is the fourth-largest oilseed producer in the world. It has 20.8 per cent of the total area under cultivation globally, accounting for 10 per cent of global production. The country relies heavily on imports, which account for 57 per cent of its domestic demand for edible oil. In 2022-23, India imported 16.5 million tonne of edible oils. Domestic production fulfilled only 40-45 per cent of the country’s requirements. The NITI Aayog recently estimated that the national supply of edible oil is projected to increase to 16 MT by 2030 and 26.7 MT by 2047 under a Business-As-Usual (BAU) scenario. The edible oil seed production industry is struggling with a set of challenges such as limited access to good quality seeds, poor irrigation facilities in main oilseed-growing areas, Insufficient price support, lack of strong supply chains and lack of awareness about modern and sustainable farming methods among farmers. With favourable policies for oilseed production, use of new agri technologies and sustainable farming methods, modern storage and processing technologies and adoption of the Public-Private partnership model, the edible oil production industry is looking forward to cutting edible oil imports in future.
India depends heavily on edible oil imports due to several basic and policy-related challenges in oilseed farming. Some key issues include small and scattered landholdings that make mechanisation tough, limited access to good-quality seeds, and poor irrigation facilities in the main oilseed-growing areas. Further, many farmers find oilseeds less profitable compared to crops like rice, wheat or fruits, so they grow less of them. Moreover, there isn’t enough price support, strong supply chains, or awareness about modern farming methods. Without government support and strong partnerships with private players, India’s self-reliance in edible oil could be an uphill task.
It’s eye-opening to realise that India is the world’s largest importer of palm oil, consuming around 13 per cent of global production. Yet, only about 4 per cent of what Indian consumers use is grown domestically. The efforts towards increasing palm oil production are much needed as Palm produces up to 10 times more oil per hectare than crops like soyabean or sunflower, making it a highly efficient choice for making self-sufficient India in edible oil production. That’s precisely why the government‘s National Mission on Edible Oils – Oilseeds (NMEO-OP) is prioritising palm cultivation, with a target of growing oil palm on 6.5 lakh hectares by 2025-26.
To read more, click : https://agrospectrumindia.com/e-magazine
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Empowering Oil Palm Farmers: 3F Oil Palm and AP Govt. launch awareness campaign in 50 villages
02 June 2025, Hyderabad: 3F Oil Palm Pvt. Ltd., in collaboration with the Department of Horticulture, Andhra Pradesh, has initiated an extensive farmer awareness program aimed at promoting sustainable oil palm cultivation across the state. The initiative is being conducted in Eluru, West Godavari, and East Godavari districts, covering a total of 50 villages.
The program focuses on educating farmers about best practices in oil palm farming, including agronomy techniques, input management, disease control, and sustainable harvesting methods. Through interactive sessions, demonstrations, and expert consultations, the campaign seeks to empower farmers with the knowledge and tools necessary to increase productivity and profitability.
India currently imports over 60% of its edible oil requirements, with annual imports exceeding 13 million tonnes. To counter this, the Government of India launched the National Mission on Edible Oils–Oil Palm (NMEO-OP) with the goal of bringing an additional 6.5 lakh hectares under oil palm cultivation by 2025–26.
Andhra Pradesh plays a pivotal role in this mission, contributing more than 60% of India’s total oil palm cultivation. With over 1.5 lakh hectares currently under oil palm, the state is a key driver in reducing dependency on imports and enhancing domestic production. Krishak Jagat
---------
Indonesia targets US$618 B in sustainable downstream investment: BKPM
Indonesia is setting its sights on becoming a global hub for sustainable industrial development, with an investment roadmap worth up to US$618 billion in downstream sectors by 2040.
Addressing the ESG Forum 2025 on Monday, June 2, 2025, Deputy for Investment Implementation Control at the Ministry of Investment/Investment Coordinating Board (BKPM), Eddy Junaedi, said that the country’s economic strategy is now inseparable from environmental, social, and governance (ESG) principles.
He highlighted that President Prabowo Subianto’s medium-term development plan for 2025–2029 targets 8 percent annual economic growth and total investment of over Rp13,000 trillion. At the heart of this strategy is downstream industrialization − especially in mining and metal-based industries − which aims to add value to Indonesia’s natural resources while ensuring long-term sustainability.
Indonesia already leads the world in nickel production and ranks among the top producers of tin, bauxite, palm oil, and rubber. These resources are now being processed domestically into high-value products like electric vehicle (EV) batteries and stainless steel. Eddy cited that Indonesia’s goal is to become one of the world’s top five EV battery producers and the second-largest stainless steel exporter by 2040.
“ The country’s investment momentum is strong. In the first quarter of 2025, Indonesia recorded Rp465.2 trillion in investment realization − 24.4 percent of its annual target − with nearly 30 percent of that flowing into downstream sectors. This trend follows the ban on raw nickel exports under Law No. 3/2020, which spurred a rapid expansion of domestic processing. Today, 194 businesses are operating or in development, including 188 nickel smelters and six EV battery production facilities,” he said.
He, however, noted that growth must be paired with responsibility. “Environmental and social concerns are no longer just ideals − they are market requirements,” he said.
Global demand for sustainable, low-emission raw materials is reshaping investment priorities and compelling mining and industrial sectors to implement ESG-compliant practices.
To support this shift, the Indonesian government has introduced several policy instruments, including the Sustainable Investment Guidelines (SIG), launched at the G20 Summit in Bali in 2022. These guidelines, formalized in Ministerial Decree No. 223/2022, provide a national framework to help investors and businesses align with international sustainability standards.
“ESG is not just a policy checkbox − it is a strategic imperative,” Eddy emphasized.
He added that Indonesia’s mineral processing capacity plays a vital role in the global energy transition and in achieving the country’s 2060 net-zero emission target.
Closing his remarks, Eddy called for greater synergy between government agencies, businesses, and international partners. “Let us work together to build an investment climate that is competitive, inclusive, and sustainable. The ESG Forum 2025 should be a turning point in aligning investment with long-term environmental and economic goals,” he said. Indonesia Business Post
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Southeast Asia: Total & RGE's Low-Carbon Energy Integration
TotalEnergies and RGE to deliver 1 GW of renewable electricity from Indonesia to Singapore, strengthening Southeast Asia's low-carbon energy integration
A major cross-border energy development is moving ahead in Southeast Asia as TotalEnergies and Royal Golden Eagle (RGE) commit to supplying 1GW of clean electricity from Indonesia to Singapore.
The conditional licence, granted by Singapore’s Energy Market Authority (EMA), enables the import of clean firm power from Indonesia and the supply of electricity to industrial users in Riau Province.
A regional clean power partnership
The announcement took place in the presence of French President Emmanuel Macron and Indonesian President Prabowo Subianto, the project reflects both political will and private sector ambition.
Through their joint venture, Singa Renewables, TotalEnergies and RGE secured the support of Singapore’s EMA and confirmed their strategy to support clean power integration across borders.
The partners signed a Memorandum of Understanding with Singapore Energy Interconnections (SGEI) to jointly develop the subsea interconnector, enabling electricity imports from Indonesia to Singapore.
The partners also signed a Co-Investment Agreement to develop, build and operate a hybrid renewable power plant comprising a solar farm, Battery Energy Storage System (BESS) and a subsea cable in Indonesia.
By mixing solar with storage, the system offers what’s known as clean firm power — renewable electricity that remains reliable even when the sun isn’t shining.
This is key to replacing fossil fuel baseload sources in both domestic and exported supply.
“We are doing our part to accelerate the region’s clean energy transition,” said Imelda Tanoto, Managing Director at RGE. Energy Digital
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Palm oil news. CSPO Watch June 2025