Palm oil news July 2025
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July 31, 2025
Malaysia-Indonesia pact sets stage for energy, labour protections, strategic halal and palm oil leadership
JAKARTA, July 31 — Indonesian President Prabowo Subianto and Malaysian Prime Minister Datuk Seri Anwar Ibrahim have agreed to strengthen bilateral cooperation in trade, investment, energy, and cross-border connectivity, while supporting efforts to expand opportunities in strategic sectors.
In a joint statement following the 13th Annual Consultation in Jakarta on Tuesday, both leaders welcomed the convening of the First Malaysia-Indonesia Investment Cooperation Working Group on September 2, 2024 in Indonesia, aimed at enhancing trade and investment ties.
“Both leaders noted new investment prospects in sectors such as infrastructure, electronics, pharmaceuticals, and medical devices, and pledged greater collaboration on food security and sustainability initiatives, including carbon trading,” stated the statement released by Malaysia’s Foreign Ministry on Wednesday night.
Prabowo welcomed continued Malaysian investment in Indonesia’s new Nusantara capital city (IKN), particularly in renewable energy and hydrogen development.
Both sides agreed to explore cross-border low-carbon energy trade between Peninsular Malaysia and Sumatra, including a direct interconnection to enhance regional integration.
The leaders also urged the swift convening of the Fourth Meeting of the Joint Trade and Investment Committee this year and called for expedited efforts to normalise trade at the Tebedu-Entikong border.
On the halal industry, Indonesia and Malaysia are committed to facilitating market access and regulatory alignment and aiming to strengthen Asean’s global halal competitiveness.
Acknowledging long-standing discussions since 2018, the leaders expressed hope that the MoU on counter-terrorism can be finalised and agreed to explore the technical aspects of transferring sentenced persons, pending relevant legal developments in Indonesia.
The leaders also reiterated commitments to protect Indonesian migrant workers and expand Indonesia’s Community Learning Centres (CLCs) in Malaysia in line with international commitments to children’s rights.
As co-founders of the Council of Palm Oil Producing Countries (CPOPC), Malaysia and Indonesia reaffirmed cooperation on sustainable palm oil as well as counter negative global campaigns targeting the commodity, the statement said. — Bernama/ Malay Mail
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Forest and Land Fires Resurge in Indonesia, Palm Oil Companies Face Firm Action
Forest and land fires are rife again, not only on community land but also on land owned by palm oil companies.
JAKARTA, KOMPAS – Forest and land fires have once again struck several regions that have been prone to such incidents. In the last 24 hours, at least 130 hot spots were detected in Riau Province, 180 in Central Kalimantan, and 1,810 in West Kalimantan. Furthermore, four palm oil plantation companies have also been sealed by the government due to their land being on fire.
Based on data from the Ministry of Forestry's SiPongi forest and land fire monitoring system, there have been at least 3,506 hotspots in the past 24 hours across Indonesia. These hotspots are divided into three scales: small, medium, and large. Each scale has its own level of confidence. The higher the scale number, the greater the likelihood of a hotspot becoming a fire.
The data was obtained from satellite imaging by Terra/Aqua, SNPP, and NOAA accessed on Wednesday (30/7/2025) afternoon. In a media statement from the Ministry of Environment/Environmental Control Agency (KLH/BPLH), the agency has taken decisive action in addressing the issue of land fires, particularly in Riau. Fires in the province have increasingly spread since early July 2025 to the present. Kompas
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Biogas Biomass & Bioenergy Forum 2025 Malaysia Focus
On 2 May 2024, Malaysia took a significant step forward in its commitment to sustainable energy with a focus on palm-based biomass, following the National Biomass Action Plan 2023-2030. Bioenergy acts as a key enabler to support energy transition. Given this, NETR outlines the target to increase biomass and biogas power generation capacity to 1.4 GW by 2050 to support energy transition. On 17th October 2024, The Sustainable Energy Development Authority (SEDA) allocated a 190MW feed-in tariff (FiT) quota for 2025, covering biogas, biomass and mini hydro projects, as well as 50MW specifically for biogas and 40MW for biomass.
Plantation and Commodities Minister, Datuk Seri Johari Abdul Ghani, called upon all palm oil millers to immediately develop the biogas industry. Last year, a total of 170 out of 446 palm oil mills installed biogas facilities, exceeding the National Agrocommodity Policy (NAPC) 2025 target of 155 mills and contributing to a reduction of greenhouse gas (GHG) emissions by 4.9 million tonnes of carbon dioxide (CO₂).
To support Malaysia’s goal of net-zero carbon emissions by 2050, the 9th Biogas Biomass & Bioenergy Forum 2025 Malaysia Focus, Series event of ASEAN Energy Transition & Decarbonisation Summit, held on Sept. 24th - 26th, 2025, in Courtyard by Marriott Kuala Lumpur South Hotel, will bring together palm oil mills, paper mills, food& beverage companies, biogas & renewable energy developers, biomass producer…etc. to unveil exciting opportunities in biogas and bioenergy, showcasing Malaysia’s potential leadership in rthe enewable energy sector.
This event is expecting more than 350 industry leaders and specialists from across the world and covers a wide spectrum of important topics on Investment in Biogas Power Plant, Bio-CNG, Desulfurisation, Membrane Upgrading, , Palm Oil Mill Effluent (POME) Treatment, Combined Heat and Power Engines (CHP), Empty Fruit Bunches (EFB), Landfill, Organic Waste, Anaerobic Digestion, Municipal Solid Waste (MSW), Agricultural Residues, Food Processing Waste, Composting, Bio-fertiliser, PKS, Wood Pellet, Biomass Power Plant, Pellet Plant, Decarbonisation, Energy Transition, Net Zero…etc.
Highlights about the conference have Methane Biogas Production in Malaysia: Challenge and Future Plan, Feed in Tariff Electrification via Renewable Energy Sourcing from Palm Oil Mill Effluent for Environmental Sustainability, CNG Pilot Projects in Malaysia: Biomethane Injection hub for Industrial Decarbonisation, Biomass Trading Trend in Malaysia Biomass Energy in Malaysia: Current Scenario, Policies, and Implementation Challenge, Biomass Supply Chain Resilience & Feedstock Availability in Malaysia (e.g. agricultural waste palm EFB, rice husks, PKS, coconuts, baboo, forestry residues…) and so on.
Please see below the latest planning of our Biogas Biomass & Bioenergy Forum 2025, Series events of ASEAN Energy Transition & Decarbonisation Summit. Sept. 24th -26th, 2025, Kuala Lumpur, Malaysia; Dec. 3rd -5th, 2025, Jakarta, Indonesia
Sponsor/exhibitor contact
Jerry Wu
[email protected]
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Malaysian Palm Oil Exports To The US Rise 51.8 Pct To 93,000 Tonnes For January To May 2025 -- KPK
KUALA LUMPUR, July 30 (Bernama) -- Malaysia’s palm oil exports to the United States (US) increased by 51.8 per cent to 93,000 metric tonnes from January to May 2025, compared to 61,000 metric tonnes during the same period last year.
The Ministry of Plantation and Commodities (KPK) said that 65 per cent of the nation’s palm oil exports to the US in 2024 were certified sustainable products used in high-value goods, while another 19 per cent consisted of palm stearin, a key ingredient in the food and personal care industries.
Although the US is not Malaysia’s main export market for palm oil, the ministry emphasised that the government is paying attention to the 25 per cent tariff imposed by the US on Malaysian goods, which takes effect on Aug 1, 2025, to ensure that the country’s market position is not adversely affected.
“The ministry is always vigilant and proactive in monitoring developments in international trade policies to safeguard the country’s palm oil exports,” KPK said in a written response posted on the Parliament’s website today.
KPK was responding to Datuk Siti Aminah Aching (BN-Beaufort), who inquired about the impact of the 25 per cent tariff imposed by the US on Malaysia, its effect on global demand for Malaysian palm oil, and the ministry’s efforts to mitigate any negative consequences on exports.
The ministry highlighted that together with the Ministry of Investment, Trade and Industry (MITI), it is continuing to engage in ongoing negotiations with the US to ensure fair, open, and mutually beneficial trade relations.
It added that various integrated initiatives are underway to ensure that Malaysia’s palm oil exports remain unaffected and sustainable.
“These include promoting the transformation of the palm oil sector toward high-technology downstream products such as oleochemicals, processed food ingredients, and biofuels,” it said.
KPK said it is strengthening efforts to implement the Malaysian Sustainable Palm Oil (MSPO) 2.0 certification to ensure Malaysian palm oil meets international standards, particularly in environmental, social, and governance (ESG) aspects.
“The introduction of the Sawit Intelligent Management System (SIMS) enables full traceability at the plantation level for all palm oil produced,” it said.
KPK said that the signing of two new free trade agreements (FTAs), the Malaysia–UAE Comprehensive Economic Partnership Agreement (Jan 14, 2025) and the Malaysia-EFTA Economic Partnership Agreement (MEEPA) (June 23, 2025), allows for broader market access for downstream palm oil products, help reduce tariffs, overcome non-tariff barriers, and encourage foreign investment in the commodity sector.
“Overall, the comprehensive measures taken by KPK and related agencies aim to ensure that the country’s palm oil industry remains competitive, boosts exports, and maintains Malaysia’s reputation as a sustainable, transparent, and ethical palm oil producer.
“This is crucial to continue attracting interest from developed countries like the US to import Malaysian palm oil,” it added.
-- BERNAMA
Malaysia-Indonesia pact sets stage for energy, labour protections, strategic halal and palm oil leadership
JAKARTA, July 31 — Indonesian President Prabowo Subianto and Malaysian Prime Minister Datuk Seri Anwar Ibrahim have agreed to strengthen bilateral cooperation in trade, investment, energy, and cross-border connectivity, while supporting efforts to expand opportunities in strategic sectors.
In a joint statement following the 13th Annual Consultation in Jakarta on Tuesday, both leaders welcomed the convening of the First Malaysia-Indonesia Investment Cooperation Working Group on September 2, 2024 in Indonesia, aimed at enhancing trade and investment ties.
“Both leaders noted new investment prospects in sectors such as infrastructure, electronics, pharmaceuticals, and medical devices, and pledged greater collaboration on food security and sustainability initiatives, including carbon trading,” stated the statement released by Malaysia’s Foreign Ministry on Wednesday night.
Prabowo welcomed continued Malaysian investment in Indonesia’s new Nusantara capital city (IKN), particularly in renewable energy and hydrogen development.
Both sides agreed to explore cross-border low-carbon energy trade between Peninsular Malaysia and Sumatra, including a direct interconnection to enhance regional integration.
The leaders also urged the swift convening of the Fourth Meeting of the Joint Trade and Investment Committee this year and called for expedited efforts to normalise trade at the Tebedu-Entikong border.
On the halal industry, Indonesia and Malaysia are committed to facilitating market access and regulatory alignment and aiming to strengthen Asean’s global halal competitiveness.
Acknowledging long-standing discussions since 2018, the leaders expressed hope that the MoU on counter-terrorism can be finalised and agreed to explore the technical aspects of transferring sentenced persons, pending relevant legal developments in Indonesia.
The leaders also reiterated commitments to protect Indonesian migrant workers and expand Indonesia’s Community Learning Centres (CLCs) in Malaysia in line with international commitments to children’s rights.
As co-founders of the Council of Palm Oil Producing Countries (CPOPC), Malaysia and Indonesia reaffirmed cooperation on sustainable palm oil as well as counter negative global campaigns targeting the commodity, the statement said. — Bernama/ Malay Mail
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Forest and Land Fires Resurge in Indonesia, Palm Oil Companies Face Firm Action
Forest and land fires are rife again, not only on community land but also on land owned by palm oil companies.
JAKARTA, KOMPAS – Forest and land fires have once again struck several regions that have been prone to such incidents. In the last 24 hours, at least 130 hot spots were detected in Riau Province, 180 in Central Kalimantan, and 1,810 in West Kalimantan. Furthermore, four palm oil plantation companies have also been sealed by the government due to their land being on fire.
Based on data from the Ministry of Forestry's SiPongi forest and land fire monitoring system, there have been at least 3,506 hotspots in the past 24 hours across Indonesia. These hotspots are divided into three scales: small, medium, and large. Each scale has its own level of confidence. The higher the scale number, the greater the likelihood of a hotspot becoming a fire.
The data was obtained from satellite imaging by Terra/Aqua, SNPP, and NOAA accessed on Wednesday (30/7/2025) afternoon. In a media statement from the Ministry of Environment/Environmental Control Agency (KLH/BPLH), the agency has taken decisive action in addressing the issue of land fires, particularly in Riau. Fires in the province have increasingly spread since early July 2025 to the present. Kompas
---------
Biogas Biomass & Bioenergy Forum 2025 Malaysia Focus
On 2 May 2024, Malaysia took a significant step forward in its commitment to sustainable energy with a focus on palm-based biomass, following the National Biomass Action Plan 2023-2030. Bioenergy acts as a key enabler to support energy transition. Given this, NETR outlines the target to increase biomass and biogas power generation capacity to 1.4 GW by 2050 to support energy transition. On 17th October 2024, The Sustainable Energy Development Authority (SEDA) allocated a 190MW feed-in tariff (FiT) quota for 2025, covering biogas, biomass and mini hydro projects, as well as 50MW specifically for biogas and 40MW for biomass.
Plantation and Commodities Minister, Datuk Seri Johari Abdul Ghani, called upon all palm oil millers to immediately develop the biogas industry. Last year, a total of 170 out of 446 palm oil mills installed biogas facilities, exceeding the National Agrocommodity Policy (NAPC) 2025 target of 155 mills and contributing to a reduction of greenhouse gas (GHG) emissions by 4.9 million tonnes of carbon dioxide (CO₂).
To support Malaysia’s goal of net-zero carbon emissions by 2050, the 9th Biogas Biomass & Bioenergy Forum 2025 Malaysia Focus, Series event of ASEAN Energy Transition & Decarbonisation Summit, held on Sept. 24th - 26th, 2025, in Courtyard by Marriott Kuala Lumpur South Hotel, will bring together palm oil mills, paper mills, food& beverage companies, biogas & renewable energy developers, biomass producer…etc. to unveil exciting opportunities in biogas and bioenergy, showcasing Malaysia’s potential leadership in rthe enewable energy sector.
This event is expecting more than 350 industry leaders and specialists from across the world and covers a wide spectrum of important topics on Investment in Biogas Power Plant, Bio-CNG, Desulfurisation, Membrane Upgrading, , Palm Oil Mill Effluent (POME) Treatment, Combined Heat and Power Engines (CHP), Empty Fruit Bunches (EFB), Landfill, Organic Waste, Anaerobic Digestion, Municipal Solid Waste (MSW), Agricultural Residues, Food Processing Waste, Composting, Bio-fertiliser, PKS, Wood Pellet, Biomass Power Plant, Pellet Plant, Decarbonisation, Energy Transition, Net Zero…etc.
Highlights about the conference have Methane Biogas Production in Malaysia: Challenge and Future Plan, Feed in Tariff Electrification via Renewable Energy Sourcing from Palm Oil Mill Effluent for Environmental Sustainability, CNG Pilot Projects in Malaysia: Biomethane Injection hub for Industrial Decarbonisation, Biomass Trading Trend in Malaysia Biomass Energy in Malaysia: Current Scenario, Policies, and Implementation Challenge, Biomass Supply Chain Resilience & Feedstock Availability in Malaysia (e.g. agricultural waste palm EFB, rice husks, PKS, coconuts, baboo, forestry residues…) and so on.
Please see below the latest planning of our Biogas Biomass & Bioenergy Forum 2025, Series events of ASEAN Energy Transition & Decarbonisation Summit. Sept. 24th -26th, 2025, Kuala Lumpur, Malaysia; Dec. 3rd -5th, 2025, Jakarta, Indonesia
Sponsor/exhibitor contact
Jerry Wu
[email protected]
---------
Malaysian Palm Oil Exports To The US Rise 51.8 Pct To 93,000 Tonnes For January To May 2025 -- KPK
KUALA LUMPUR, July 30 (Bernama) -- Malaysia’s palm oil exports to the United States (US) increased by 51.8 per cent to 93,000 metric tonnes from January to May 2025, compared to 61,000 metric tonnes during the same period last year.
The Ministry of Plantation and Commodities (KPK) said that 65 per cent of the nation’s palm oil exports to the US in 2024 were certified sustainable products used in high-value goods, while another 19 per cent consisted of palm stearin, a key ingredient in the food and personal care industries.
Although the US is not Malaysia’s main export market for palm oil, the ministry emphasised that the government is paying attention to the 25 per cent tariff imposed by the US on Malaysian goods, which takes effect on Aug 1, 2025, to ensure that the country’s market position is not adversely affected.
“The ministry is always vigilant and proactive in monitoring developments in international trade policies to safeguard the country’s palm oil exports,” KPK said in a written response posted on the Parliament’s website today.
KPK was responding to Datuk Siti Aminah Aching (BN-Beaufort), who inquired about the impact of the 25 per cent tariff imposed by the US on Malaysia, its effect on global demand for Malaysian palm oil, and the ministry’s efforts to mitigate any negative consequences on exports.
The ministry highlighted that together with the Ministry of Investment, Trade and Industry (MITI), it is continuing to engage in ongoing negotiations with the US to ensure fair, open, and mutually beneficial trade relations.
It added that various integrated initiatives are underway to ensure that Malaysia’s palm oil exports remain unaffected and sustainable.
“These include promoting the transformation of the palm oil sector toward high-technology downstream products such as oleochemicals, processed food ingredients, and biofuels,” it said.
KPK said it is strengthening efforts to implement the Malaysian Sustainable Palm Oil (MSPO) 2.0 certification to ensure Malaysian palm oil meets international standards, particularly in environmental, social, and governance (ESG) aspects.
“The introduction of the Sawit Intelligent Management System (SIMS) enables full traceability at the plantation level for all palm oil produced,” it said.
KPK said that the signing of two new free trade agreements (FTAs), the Malaysia–UAE Comprehensive Economic Partnership Agreement (Jan 14, 2025) and the Malaysia-EFTA Economic Partnership Agreement (MEEPA) (June 23, 2025), allows for broader market access for downstream palm oil products, help reduce tariffs, overcome non-tariff barriers, and encourage foreign investment in the commodity sector.
“Overall, the comprehensive measures taken by KPK and related agencies aim to ensure that the country’s palm oil industry remains competitive, boosts exports, and maintains Malaysia’s reputation as a sustainable, transparent, and ethical palm oil producer.
“This is crucial to continue attracting interest from developed countries like the US to import Malaysian palm oil,” it added.
-- BERNAMA
July 29, 2025
EU to Let Indonesian Palm Oil Enter Its Market at 0 Pct Tariff
Jakarta. Chief Economic Affairs Minister Airlangga Hartarto said Monday that Europe would let Indonesia sell its palm oil at 0 percent tariff as part of a last-minute trade deal negotiation.
The European Union (EU) and Indonesia recently struck a political agreement to advance the Comprehensive Economic Partnership Agreement (CEPA). Palm oil trade has caused a setback in their relations, especially after Indonesia’s top export commodity faced regulatory obstacles. The EU has decided to restrict palm oil imports by requiring traders to prove their products do not come from deforested land. This law, dubbed as the EUDR, will come into effect starting by the end of this year for large and medium companies. Jakarta revealed that the EU had agreed to bring its levies on Indonesian palm oil down to 0 percent under the yet-to-be-signed CEPA.
“The last rounds of CEPA negotiations focused on palm oil. The EU initially refused to include palm oil at all in the agreement. That’s why they came up with the EUDR, but it turns out they really do need our palm oil,” Airlangga told the Investor Daily Roundtable forum in Jakarta.
“And so, they have agreed to have the tariffs on Indonesian palm oil at zero percent.”
According to Airlangga, both sides have agreed on a tariff-rate quota approach in palm oil trade. This system will set a certain quota of the volumes of the EU-bound palm oil that are eligible for the 0 percent tariffs. However, any palm oil imports above that limit will face a 3 percent tariff when entering the European market.
“The EU has asked us to implement such systems on crude palm oil and palm kernel oil. … A 3 percent tariff is certainly lower than the 19 percent [levy that the US will impose on us],” the senior minister said.
Airlangga claimed that the EU will simplify the ratification process for this much-awaited pact as Jakarta hoped that the agreement could take into effect next year. The CEPA will have 80 percent of Indonesia’s EU-bound exports subject to zero tariffs. The EU's trade in goods with Indonesia amounted to 27.3 billion euros (around $31.9 billion) in 2024, the bloc’s data showed. Europe had imported around 17.5 billion euros from Indonesia over the said period.
The EUDR requires palm oil traders to submit geological coordinates of where the agricultural commodity is grown, a requirement that Indonesia had admitted to be taxing on its smallholders. The world’s largest palm oil supplier has been nudging the EU to recognize its sustainability standards. The government mandates the country’s palm oil producers, including those involved in the industrial processing and bioenergy production, to secure the Indonesia Sustainable Palm Oil (ISPO) certificates. Airlangga alluded that the EU had agreed to recognize the ISPO, saying that Indonesia had “already settled the geolocation issues”.
The latest advancements in the Indonesia-EU CEPA became good news amidst the tariff war waged by US President Donald Trump. European Commission President Ursula von der Leyen admitted that the bloc sought to diversify its markets following Trump’s latest trade policy.
“So this big and important political agreement on a free trade agreement with Indonesia today is a huge milestone forward. It shows that we are looking for a new and open market,” von der Leyen said a few weeks ago when hosting President Prabowo Subianto in Brussels. Jakarta Globejakartaglobe.id/business/eu-to-let-indonesian-palm-oil-enter-its-market-at-0-pct-tariff
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Indonesia-EU free trade agreement: good faith and equal treatment
The recent announcement by Indonesian president Prabowo Subianto and European Commission president Ursula von der Leyen of a "political agreement" on the Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA) marks a significant milestone after nine years of negotiations.
This breakthrough is both an economic opportunity and a chance to rebuild trust between strategic partners at a time when global trade faces unprecedented challenges.
Indonesia and the EU have both recognised that strengthening economic ties is essential in today's global trading environment. Indonesia has been actively diversifying its trade relationships through bilateral and multilateral frameworks like ASEAN, while the EU seeks to expand export markets and enhance competitiveness.
The path to this point has been marked by numerous roadblocks, with agricultural trade — particularly palm oil — at the centre of disputes.
The EU's Renewable Energy Directive (RED) II, which effectively excluded palm oil from renewable energy targets, led Indonesia to file a WTO complaint in 2019. The EU Deforestation Regulation (EUDR) has created additional tensions.
However, these challenges have created opportunities for constructive dialogue and mutual understanding.
Despite the political agreement, some important issues remain to be resolved, but there are clear pathways forward.
The January 2025 WTO ruling on the RED vindicated Indonesia's position, finding that while the EU has the right to pursue environmental objectives, certain aspects of RED II's implementation discriminated against palm oil in violation of international trade rules.
This ruling provides a clear framework for bringing RED measures into WTO compliance, creating a foundation for more equitable trade relations.
Opportunities for collaboration
The EUDR presents opportunities for collaboration.
Indonesia has consistently advocated for four key elements: greater smallholder inclusion, recognition of Indonesian Sustainable Palm Oil (ISPO) certification, acknowledgement of Indonesia's substantial deforestation reduction efforts, and recognition of Indonesian data for risk benchmarking.
These represent practical steps toward achieving shared environmental objectives while ensuring fair treatment for Indonesia's 2.7 million smallholder farmers, who deserve access to global markets.
The EU has the opportunity to demonstrate leadership by providing concrete assistance and capacity building for small farmers. Supporting the development of a compliance module for ISPO certification would help Indonesian producers meet EU standards while strengthening environmental protections—a win-win outcome.
The EU's own farmers recognise the importance of practical compliance solutions, and this shared understanding can bridge the gap with developing country producers.
EPP solutions
The EU's internal disagreements over the EUDR reflects growing recognition of these realities: the European People's Party's proposals for implementation timelines and introduction of a "negligible risk" category, supported by agriculture ministers from member states, show a willingness to find new solutions.
An additional delay would provide valuable time for Indonesian smallholders to prepare while allowing meaningful EU support to materialise.
A "negligible risk" category could drive wholesale improvement of the EU's risk benchmarking approach, creating more nuanced and technically sound criteria. This presents the commission with an excellent opportunity to simplify procedures for farmers while ensuring equal treatment for all countries and firms — moving beyond geographic preferences toward merit-based assessments.
The EU has correctly maintained that the FTA and EUDR operate on separate tracks.
However, regulations affecting Indonesia's largest exports — palm oil, coffee, cocoa, and rubber — present opportunities for innovative solutions that serve both trade and environmental objectives.
Indonesia-EU relations have overcome challenges before and can do so again. The foundation for success lies in principled approaches based on good faith negotiation and non-discriminatory treatment.
Šefčovič's 'special treatment'
EU trade commissioner Maroš Šefčovič's recent commitment that Indonesian products will receive special treatment is a promising start. The real success will come through collaborative implementation of trade rules and environmental regulations that work for all stakeholders. EU Observer
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India’s tariff cuts on Indonesian palm oil import to boost trade
: Indonesia expects palm oil exports to India to exceed the 5 million-tonnes mark in 2025, up from 4.8 million tonnes in 2024
India’s decision to cut import tariffs on Indonesian palm oil may increase the latter’s oil imports to cross the 5-million-tonne-mark, said an Indonesia industry official.
India, the world’s largest importer and consumer of edible oils, imported 4.8 million tonnes of palm oil from Indonesia in 2024 from 6 million tonnes in 2023. Indonesia remains the world’s top palm oil producer.
India is ramping up palm seed imports as part of its National Mission on Edible Oils–Oil Palm (NMEO-OP), which aims to expand cultivation from the current 350,000 hectares to 1 million hectares by 2025-26.
Indonesia shipped 100,000 germinated palm seeds to India this year to support its mission, informed Eddy Martono, chairman of Indonesia Palm Oil Council (IPOC), as against 500,000 seeds shipped in 2023 and 2024 combined.
“After the decrease in import tariffs, Indonesia palm oil imports will increase in 2025. I expect it to be more than 5 million tonnes,” he said.
Basic customs duty on crude palm oil was lowered by India from 20 per cent to 10 per cent, as part of efforts to boost domestic edible oil availability and control prices. News Arena India
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Palm Oil: The Full Truth Behind the Fear and the Facts
You’ve probably come across food packages stamped with bold claims like “No Palm Oil” or “Palm Oil Free.” These labels are often interpreted as markers of a healthier product — as if avoiding palm oil is automatically a better choice. But is that really the case?
Over the years, palm oil has gained a bad reputation, often labeled as a dietary villain responsible for everything from heart disease to deforestation. This has led many people to view products containing palm oil with suspicion. However, recent insights from the Indian Food and Beverage Association (IFBA) suggest that much of this fear may be exaggerated or misunderstood.
This article breaks down the real story behind palm oil — where it comes from, how it’s used, its potential health impacts, why some countries have banned it, and whether it deserves the negative press. We’ve also included a doctor’s perspective on how much is safe to consume and what to keep in mind if palm oil is part of your daily diet.
What Is Palm Oil and Where Does It Come From?
Palm oil is a type of vegetable oil extracted from the fruit of the oil palm tree. These trees, which grow as tall as date palms, produce bunches of reddish-orange fruits. When crushed, these fruits yield a reddish crude oil rich in beta-carotene, a compound that gives carrots their color too.
But here’s the catch: most of the palm oil used commercially is refined. During this refining process, the oil is heated to around 200°C, which strips away much of its color and nutrients, turning it into a transparent or pale oil used in everyday products.
Where Is Palm Oil Found?
Palm oil is far more common than you might realize. It’s not just in fast food — it’s everywhere:
Restaurants & Fast Food Chains: Many of them fry and cook food in palm oil because it’s cheaper than other oils and has a long shelf life. My Pune Pulse
EU to Let Indonesian Palm Oil Enter Its Market at 0 Pct Tariff
Jakarta. Chief Economic Affairs Minister Airlangga Hartarto said Monday that Europe would let Indonesia sell its palm oil at 0 percent tariff as part of a last-minute trade deal negotiation.
The European Union (EU) and Indonesia recently struck a political agreement to advance the Comprehensive Economic Partnership Agreement (CEPA). Palm oil trade has caused a setback in their relations, especially after Indonesia’s top export commodity faced regulatory obstacles. The EU has decided to restrict palm oil imports by requiring traders to prove their products do not come from deforested land. This law, dubbed as the EUDR, will come into effect starting by the end of this year for large and medium companies. Jakarta revealed that the EU had agreed to bring its levies on Indonesian palm oil down to 0 percent under the yet-to-be-signed CEPA.
“The last rounds of CEPA negotiations focused on palm oil. The EU initially refused to include palm oil at all in the agreement. That’s why they came up with the EUDR, but it turns out they really do need our palm oil,” Airlangga told the Investor Daily Roundtable forum in Jakarta.
“And so, they have agreed to have the tariffs on Indonesian palm oil at zero percent.”
According to Airlangga, both sides have agreed on a tariff-rate quota approach in palm oil trade. This system will set a certain quota of the volumes of the EU-bound palm oil that are eligible for the 0 percent tariffs. However, any palm oil imports above that limit will face a 3 percent tariff when entering the European market.
“The EU has asked us to implement such systems on crude palm oil and palm kernel oil. … A 3 percent tariff is certainly lower than the 19 percent [levy that the US will impose on us],” the senior minister said.
Airlangga claimed that the EU will simplify the ratification process for this much-awaited pact as Jakarta hoped that the agreement could take into effect next year. The CEPA will have 80 percent of Indonesia’s EU-bound exports subject to zero tariffs. The EU's trade in goods with Indonesia amounted to 27.3 billion euros (around $31.9 billion) in 2024, the bloc’s data showed. Europe had imported around 17.5 billion euros from Indonesia over the said period.
The EUDR requires palm oil traders to submit geological coordinates of where the agricultural commodity is grown, a requirement that Indonesia had admitted to be taxing on its smallholders. The world’s largest palm oil supplier has been nudging the EU to recognize its sustainability standards. The government mandates the country’s palm oil producers, including those involved in the industrial processing and bioenergy production, to secure the Indonesia Sustainable Palm Oil (ISPO) certificates. Airlangga alluded that the EU had agreed to recognize the ISPO, saying that Indonesia had “already settled the geolocation issues”.
The latest advancements in the Indonesia-EU CEPA became good news amidst the tariff war waged by US President Donald Trump. European Commission President Ursula von der Leyen admitted that the bloc sought to diversify its markets following Trump’s latest trade policy.
“So this big and important political agreement on a free trade agreement with Indonesia today is a huge milestone forward. It shows that we are looking for a new and open market,” von der Leyen said a few weeks ago when hosting President Prabowo Subianto in Brussels. Jakarta Globejakartaglobe.id/business/eu-to-let-indonesian-palm-oil-enter-its-market-at-0-pct-tariff
---------
Indonesia-EU free trade agreement: good faith and equal treatment
The recent announcement by Indonesian president Prabowo Subianto and European Commission president Ursula von der Leyen of a "political agreement" on the Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA) marks a significant milestone after nine years of negotiations.
This breakthrough is both an economic opportunity and a chance to rebuild trust between strategic partners at a time when global trade faces unprecedented challenges.
Indonesia and the EU have both recognised that strengthening economic ties is essential in today's global trading environment. Indonesia has been actively diversifying its trade relationships through bilateral and multilateral frameworks like ASEAN, while the EU seeks to expand export markets and enhance competitiveness.
The path to this point has been marked by numerous roadblocks, with agricultural trade — particularly palm oil — at the centre of disputes.
The EU's Renewable Energy Directive (RED) II, which effectively excluded palm oil from renewable energy targets, led Indonesia to file a WTO complaint in 2019. The EU Deforestation Regulation (EUDR) has created additional tensions.
However, these challenges have created opportunities for constructive dialogue and mutual understanding.
Despite the political agreement, some important issues remain to be resolved, but there are clear pathways forward.
The January 2025 WTO ruling on the RED vindicated Indonesia's position, finding that while the EU has the right to pursue environmental objectives, certain aspects of RED II's implementation discriminated against palm oil in violation of international trade rules.
This ruling provides a clear framework for bringing RED measures into WTO compliance, creating a foundation for more equitable trade relations.
Opportunities for collaboration
The EUDR presents opportunities for collaboration.
Indonesia has consistently advocated for four key elements: greater smallholder inclusion, recognition of Indonesian Sustainable Palm Oil (ISPO) certification, acknowledgement of Indonesia's substantial deforestation reduction efforts, and recognition of Indonesian data for risk benchmarking.
These represent practical steps toward achieving shared environmental objectives while ensuring fair treatment for Indonesia's 2.7 million smallholder farmers, who deserve access to global markets.
The EU has the opportunity to demonstrate leadership by providing concrete assistance and capacity building for small farmers. Supporting the development of a compliance module for ISPO certification would help Indonesian producers meet EU standards while strengthening environmental protections—a win-win outcome.
The EU's own farmers recognise the importance of practical compliance solutions, and this shared understanding can bridge the gap with developing country producers.
EPP solutions
The EU's internal disagreements over the EUDR reflects growing recognition of these realities: the European People's Party's proposals for implementation timelines and introduction of a "negligible risk" category, supported by agriculture ministers from member states, show a willingness to find new solutions.
An additional delay would provide valuable time for Indonesian smallholders to prepare while allowing meaningful EU support to materialise.
A "negligible risk" category could drive wholesale improvement of the EU's risk benchmarking approach, creating more nuanced and technically sound criteria. This presents the commission with an excellent opportunity to simplify procedures for farmers while ensuring equal treatment for all countries and firms — moving beyond geographic preferences toward merit-based assessments.
The EU has correctly maintained that the FTA and EUDR operate on separate tracks.
However, regulations affecting Indonesia's largest exports — palm oil, coffee, cocoa, and rubber — present opportunities for innovative solutions that serve both trade and environmental objectives.
Indonesia-EU relations have overcome challenges before and can do so again. The foundation for success lies in principled approaches based on good faith negotiation and non-discriminatory treatment.
Šefčovič's 'special treatment'
EU trade commissioner Maroš Šefčovič's recent commitment that Indonesian products will receive special treatment is a promising start. The real success will come through collaborative implementation of trade rules and environmental regulations that work for all stakeholders. EU Observer
---------
India’s tariff cuts on Indonesian palm oil import to boost trade
: Indonesia expects palm oil exports to India to exceed the 5 million-tonnes mark in 2025, up from 4.8 million tonnes in 2024
India’s decision to cut import tariffs on Indonesian palm oil may increase the latter’s oil imports to cross the 5-million-tonne-mark, said an Indonesia industry official.
India, the world’s largest importer and consumer of edible oils, imported 4.8 million tonnes of palm oil from Indonesia in 2024 from 6 million tonnes in 2023. Indonesia remains the world’s top palm oil producer.
India is ramping up palm seed imports as part of its National Mission on Edible Oils–Oil Palm (NMEO-OP), which aims to expand cultivation from the current 350,000 hectares to 1 million hectares by 2025-26.
Indonesia shipped 100,000 germinated palm seeds to India this year to support its mission, informed Eddy Martono, chairman of Indonesia Palm Oil Council (IPOC), as against 500,000 seeds shipped in 2023 and 2024 combined.
“After the decrease in import tariffs, Indonesia palm oil imports will increase in 2025. I expect it to be more than 5 million tonnes,” he said.
Basic customs duty on crude palm oil was lowered by India from 20 per cent to 10 per cent, as part of efforts to boost domestic edible oil availability and control prices. News Arena India
---------
Palm Oil: The Full Truth Behind the Fear and the Facts
You’ve probably come across food packages stamped with bold claims like “No Palm Oil” or “Palm Oil Free.” These labels are often interpreted as markers of a healthier product — as if avoiding palm oil is automatically a better choice. But is that really the case?
Over the years, palm oil has gained a bad reputation, often labeled as a dietary villain responsible for everything from heart disease to deforestation. This has led many people to view products containing palm oil with suspicion. However, recent insights from the Indian Food and Beverage Association (IFBA) suggest that much of this fear may be exaggerated or misunderstood.
This article breaks down the real story behind palm oil — where it comes from, how it’s used, its potential health impacts, why some countries have banned it, and whether it deserves the negative press. We’ve also included a doctor’s perspective on how much is safe to consume and what to keep in mind if palm oil is part of your daily diet.
What Is Palm Oil and Where Does It Come From?
Palm oil is a type of vegetable oil extracted from the fruit of the oil palm tree. These trees, which grow as tall as date palms, produce bunches of reddish-orange fruits. When crushed, these fruits yield a reddish crude oil rich in beta-carotene, a compound that gives carrots their color too.
But here’s the catch: most of the palm oil used commercially is refined. During this refining process, the oil is heated to around 200°C, which strips away much of its color and nutrients, turning it into a transparent or pale oil used in everyday products.
Where Is Palm Oil Found?
Palm oil is far more common than you might realize. It’s not just in fast food — it’s everywhere:
Restaurants & Fast Food Chains: Many of them fry and cook food in palm oil because it’s cheaper than other oils and has a long shelf life. My Pune Pulse
July 28, 2025
Driving the energy transition: How PETRONAS is powering progress with biofuels
As the global push for decarbonisation gains momentum, Petroliam Nasional Bhd (PETRONAS) is reshaping its downstream portfolio in support of its goal of achieving net zero carbon emissions by 2050. The national oil company is driving several catalyst projects in carbon capture and storage (CCS), hydrogen and biofuels, with the latter viewed as a crucial transitional fuel for hard-to-abate sectors like aviation and transport.
Among the options, biofuels such as sustainable aviation fuel (SAF) — derived from renewable feedstocks like used cooking oil, agricultural residue and municipal waste — offer a cleaner alternative to conventional jet fuel. This aligns with the International Civil Aviation Organisation’s (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which is aimed at reducing the aviation sector’s carbon footprint and supporting carbon-neutral growth. Starting 2027, all ICAO member states’ airlines will be subjected to offsetting requirements for international flights.
To meet the anticipated surge in demand from the global aviation and logistics industries, PETRONAS announced in July last year that it had reached a final investment decision (FID) with Italy-based Enilive SpA and Japan-based Euglena Co Ltd to jointly develop a US$1.3 billion (RM5.6 billion) bio-refinery in Pengerang, Johor. Located in the Pengerang Integrated Complex (PIC), the facility will produce SAF and other biofuels, including renewable diesel, also known as hydrotreated vegetable oil (HVO). Construction is slated to begin in the fourth quarter of this year, with operations targeted to commence by the second half of 2028.
According to Ahmad Adly Alias, Vice-President for Refining, Marketing and Trading at PETRONAS, the Pengerang facility will process up to 650,000 tonnes of feedstock annually, primarily comprising waste-based materials such as used cooking oil, palm fatty acid distillates (a by-product of crude palm oil refining), palm oil mill effluent and tallow (animal fat). The facility is expected to produce about 12,500 barrels of bio-based products per day.
“What’s interesting about this biofuels project is that we tend to get good financing because banks and lenders are now focused on sustainable investments,” he tells The Edge in an interview.
“We intend for it to be project-financed, and we have agreed on an equity structure, partly funded through creditors. Project financing is now more attractive as banks look for sustainable investments, which is why this biofuels project secures good funding.”
Addressing hurdles
One of the main global challenges for SAF lies in its cost, which is currently two to three times higher than conventional jet fuel, says Ahmad Adly. To overcome this, he stresses the need for continuous technological advancement to bring production costs down.
“Take the solar panels. A few years ago, they were expensive, but advancement in technology has helped to reduce costs significantly. Now, installing solar panels on rooftops is financially viable — something unthinkable five years ago,” he says.
“That’s why ongoing innovation is key to making SAF more affordable. The question is: How do we keep driving those costs even lower?”
Equally important is policy support, which can come in the form of incentives such as tax waivers and capital investment, or disincentives like carbon pricing, tariffs and penalties. Mandates also play a vital role, but they come with trade-offs.
“Oftentimes, the associated costs are typically managed by businesses, either through absorption or distribution to consumers. Robust and supportive policies play a crucial role in ensuring sustainability as well as accelerating the growth of the biofuels industry,” says Ahmad Adly.
Malaysia, under its 2023 National Energy Transition Roadmap, is targeting a 47% SAF blend by 2050. With the right policy support and realistic targets, this goal can drive sustainable growth for both consumers and industry participants.
“We’re helping to determine what’s realistic for Malaysia. If we move too fast, we risk breaking the industry — the supply chain, feedstock availability, refining capacity and logistics may not yet be ready. But if we move too slowly, we risk missing our 2050 net zero target,” he says.
Positioning in the global market The Edge
----------
President Mahama to roll out Comprehensive Oil Palm Policy to transform Ghana’s Economy
President John Dramani Mahama is set to introduce a comprehensive national policy on oil palm to drive economic transformation and position Ghana's crude palm oil as globally competitive, the Chief Executive Officer of the Tree Crops Development Authority (TCDA), Dr Andy Okra, has disclosed.
Dr Okra made the announcement at the third Annual General Meeting of the Oil Palm Development Association of Ghana (OPDAG) held under the theme: “The Oil Palm Value Chain at the Crossroads: The Role of Policy Alignment and Regulatory Enforcement for Productivity, Competitiveness, Inclusive Growth and Development.”
According to him, President Mahama has identified oil palm, one of six strategic crops under the remit of the TCDA, as the game-changer in reviving Ghana's agro-industrial sector.
He added that a technical committee had already been constituted, in collaboration with the Ministry of Finance, to design the national oil palm policy framework.
“The oil palm sector in Ghana stands at a critical juncture. We must decisively transition from fragmented efforts to a coordinated, policy-driven and regulated ecosystem that delivers value to every actor along the chain, from smallholder farmers to large-scale processors, and from rural communities to the national economy,” Dr Okra said.
He emphasised that the TCDA was strategically positioned to lead this transformation through regulatory enforcement, policy alignment, and inclusive growth interventions.
Dr Okra underscored the need to harmonise disjointed national policies in agriculture, trade, environment, and land use that have long hampered the sector's development.
He explained that the proposed oil palm policy aligned with Mahama's Feed Ghana initiative, which targets 50,000 hectares of oil palm cultivation over the next four years.
He also mentioned that the policy would also complement the government's 24-hour economy vision by supporting export-oriented processing that enhances foreign exchange earnings.
“We are working closely with the Ministries of Food and Agriculture, Industry, Finance, and Local Government, as well as partners such as OPDAG, Solidaridad, and the Ghana Private Sector Competitiveness Program II (GPSCP II) to synchronise interventions and reduce duplication,” he added.
He further revealed that a policy dialogue later this year would bring together relevant institutions to ensure coherence in programmes and regulatory frameworks for the sector.
Dr Okra highlighted enforcement as key to achieving global competitiveness, citing challenges such as the illicit importation of vegetable oil, lack of quality assurance, land governance issues, and environmental concerns. Modern Ghana
---------
Only half of the calories produced on croplands are available for human consumption
Paul C. West,
1,2 James S. Gerber,1,2 Emily S. Cassidy,2 and Samuel Stiffman3
1University of Minnesota, 2Project Drawdown, 3Independent
Corresponding author: [email protected]
Abstract
Managing limited agricultural land to feed a growing population with changing diets
requires understanding and managing tradeoffs associated with how crops are utilized.
Here, we quantify the impact of how 50 crops are used for food, livestock feed, biofuels,
and other non-food uses on available calories from 2010 to 2020. We find that, although
total calorie production increased by 23.9% from 2010 to 2020, the available calories in
the food system increased by only 16.6%. This decrease in efficiency was driven by
increases in the changes in calories used for livestock feed (31.2%) and non-food uses
(36.2%). Calories used for biofuel production, a subset of non-food uses, increased
27.9% and accounted for 5.3% of all calorie production in 2020. In comparison, crops
consumed directly as food increased by only 14.9%. In 2020, half (50.1%) of calories
produced on croplands were available for people to eat. The calories ‘lost’ to inefficiency
of the food system (49.9%) is equivalent to 7.22 x 1015 calories per year, enough to
support 7.2 billion people. 39.7% of the lost calories are from beef production, which requires 33 calories of feed for every calorie of boneless meat. If excess beef consumption were reduced to healthy quantities, as defined by the EAT Lancet diet, and
substituted with chicken in forty-eight higher income countries, the number lost calories
avoided would be enough to meet the caloric needs of 850 million people. The results
presented here demonstrate that a few commodities, particularly beef and pork, are
primarily responsible for the current inefficiencies in how croplands are used to produce
food for people. Further, these inefficiencies are concentrated in a small set of
countries. Targeting actions and policies for these commodities and countries can have
an outsized impact on improving food security, health, and the environment.
keywords: food security, diet, agriculture, biofuels Research Gate
Driving the energy transition: How PETRONAS is powering progress with biofuels
As the global push for decarbonisation gains momentum, Petroliam Nasional Bhd (PETRONAS) is reshaping its downstream portfolio in support of its goal of achieving net zero carbon emissions by 2050. The national oil company is driving several catalyst projects in carbon capture and storage (CCS), hydrogen and biofuels, with the latter viewed as a crucial transitional fuel for hard-to-abate sectors like aviation and transport.
Among the options, biofuels such as sustainable aviation fuel (SAF) — derived from renewable feedstocks like used cooking oil, agricultural residue and municipal waste — offer a cleaner alternative to conventional jet fuel. This aligns with the International Civil Aviation Organisation’s (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which is aimed at reducing the aviation sector’s carbon footprint and supporting carbon-neutral growth. Starting 2027, all ICAO member states’ airlines will be subjected to offsetting requirements for international flights.
To meet the anticipated surge in demand from the global aviation and logistics industries, PETRONAS announced in July last year that it had reached a final investment decision (FID) with Italy-based Enilive SpA and Japan-based Euglena Co Ltd to jointly develop a US$1.3 billion (RM5.6 billion) bio-refinery in Pengerang, Johor. Located in the Pengerang Integrated Complex (PIC), the facility will produce SAF and other biofuels, including renewable diesel, also known as hydrotreated vegetable oil (HVO). Construction is slated to begin in the fourth quarter of this year, with operations targeted to commence by the second half of 2028.
According to Ahmad Adly Alias, Vice-President for Refining, Marketing and Trading at PETRONAS, the Pengerang facility will process up to 650,000 tonnes of feedstock annually, primarily comprising waste-based materials such as used cooking oil, palm fatty acid distillates (a by-product of crude palm oil refining), palm oil mill effluent and tallow (animal fat). The facility is expected to produce about 12,500 barrels of bio-based products per day.
“What’s interesting about this biofuels project is that we tend to get good financing because banks and lenders are now focused on sustainable investments,” he tells The Edge in an interview.
“We intend for it to be project-financed, and we have agreed on an equity structure, partly funded through creditors. Project financing is now more attractive as banks look for sustainable investments, which is why this biofuels project secures good funding.”
Addressing hurdles
One of the main global challenges for SAF lies in its cost, which is currently two to three times higher than conventional jet fuel, says Ahmad Adly. To overcome this, he stresses the need for continuous technological advancement to bring production costs down.
“Take the solar panels. A few years ago, they were expensive, but advancement in technology has helped to reduce costs significantly. Now, installing solar panels on rooftops is financially viable — something unthinkable five years ago,” he says.
“That’s why ongoing innovation is key to making SAF more affordable. The question is: How do we keep driving those costs even lower?”
Equally important is policy support, which can come in the form of incentives such as tax waivers and capital investment, or disincentives like carbon pricing, tariffs and penalties. Mandates also play a vital role, but they come with trade-offs.
“Oftentimes, the associated costs are typically managed by businesses, either through absorption or distribution to consumers. Robust and supportive policies play a crucial role in ensuring sustainability as well as accelerating the growth of the biofuels industry,” says Ahmad Adly.
Malaysia, under its 2023 National Energy Transition Roadmap, is targeting a 47% SAF blend by 2050. With the right policy support and realistic targets, this goal can drive sustainable growth for both consumers and industry participants.
“We’re helping to determine what’s realistic for Malaysia. If we move too fast, we risk breaking the industry — the supply chain, feedstock availability, refining capacity and logistics may not yet be ready. But if we move too slowly, we risk missing our 2050 net zero target,” he says.
Positioning in the global market The Edge
----------
President Mahama to roll out Comprehensive Oil Palm Policy to transform Ghana’s Economy
President John Dramani Mahama is set to introduce a comprehensive national policy on oil palm to drive economic transformation and position Ghana's crude palm oil as globally competitive, the Chief Executive Officer of the Tree Crops Development Authority (TCDA), Dr Andy Okra, has disclosed.
Dr Okra made the announcement at the third Annual General Meeting of the Oil Palm Development Association of Ghana (OPDAG) held under the theme: “The Oil Palm Value Chain at the Crossroads: The Role of Policy Alignment and Regulatory Enforcement for Productivity, Competitiveness, Inclusive Growth and Development.”
According to him, President Mahama has identified oil palm, one of six strategic crops under the remit of the TCDA, as the game-changer in reviving Ghana's agro-industrial sector.
He added that a technical committee had already been constituted, in collaboration with the Ministry of Finance, to design the national oil palm policy framework.
“The oil palm sector in Ghana stands at a critical juncture. We must decisively transition from fragmented efforts to a coordinated, policy-driven and regulated ecosystem that delivers value to every actor along the chain, from smallholder farmers to large-scale processors, and from rural communities to the national economy,” Dr Okra said.
He emphasised that the TCDA was strategically positioned to lead this transformation through regulatory enforcement, policy alignment, and inclusive growth interventions.
Dr Okra underscored the need to harmonise disjointed national policies in agriculture, trade, environment, and land use that have long hampered the sector's development.
He explained that the proposed oil palm policy aligned with Mahama's Feed Ghana initiative, which targets 50,000 hectares of oil palm cultivation over the next four years.
He also mentioned that the policy would also complement the government's 24-hour economy vision by supporting export-oriented processing that enhances foreign exchange earnings.
“We are working closely with the Ministries of Food and Agriculture, Industry, Finance, and Local Government, as well as partners such as OPDAG, Solidaridad, and the Ghana Private Sector Competitiveness Program II (GPSCP II) to synchronise interventions and reduce duplication,” he added.
He further revealed that a policy dialogue later this year would bring together relevant institutions to ensure coherence in programmes and regulatory frameworks for the sector.
Dr Okra highlighted enforcement as key to achieving global competitiveness, citing challenges such as the illicit importation of vegetable oil, lack of quality assurance, land governance issues, and environmental concerns. Modern Ghana
---------
Only half of the calories produced on croplands are available for human consumption
Paul C. West,
1,2 James S. Gerber,1,2 Emily S. Cassidy,2 and Samuel Stiffman3
1University of Minnesota, 2Project Drawdown, 3Independent
Corresponding author: [email protected]
Abstract
Managing limited agricultural land to feed a growing population with changing diets
requires understanding and managing tradeoffs associated with how crops are utilized.
Here, we quantify the impact of how 50 crops are used for food, livestock feed, biofuels,
and other non-food uses on available calories from 2010 to 2020. We find that, although
total calorie production increased by 23.9% from 2010 to 2020, the available calories in
the food system increased by only 16.6%. This decrease in efficiency was driven by
increases in the changes in calories used for livestock feed (31.2%) and non-food uses
(36.2%). Calories used for biofuel production, a subset of non-food uses, increased
27.9% and accounted for 5.3% of all calorie production in 2020. In comparison, crops
consumed directly as food increased by only 14.9%. In 2020, half (50.1%) of calories
produced on croplands were available for people to eat. The calories ‘lost’ to inefficiency
of the food system (49.9%) is equivalent to 7.22 x 1015 calories per year, enough to
support 7.2 billion people. 39.7% of the lost calories are from beef production, which requires 33 calories of feed for every calorie of boneless meat. If excess beef consumption were reduced to healthy quantities, as defined by the EAT Lancet diet, and
substituted with chicken in forty-eight higher income countries, the number lost calories
avoided would be enough to meet the caloric needs of 850 million people. The results
presented here demonstrate that a few commodities, particularly beef and pork, are
primarily responsible for the current inefficiencies in how croplands are used to produce
food for people. Further, these inefficiencies are concentrated in a small set of
countries. Targeting actions and policies for these commodities and countries can have
an outsized impact on improving food security, health, and the environment.
keywords: food security, diet, agriculture, biofuels Research Gate
July 27, 2025
Indonesia rushing to complete trade deals with Europe, Canada as a hedge against looming US tariff
A top Indonesian official said South-east Asia’s largest economy is seeking 0 per cent tariff from trade deals with the European Union, which has 27 member countries.
It is also seeking a separate agreement with the Eurasian Economic Union, said Mr Susiwijono Moegiarso, the most senior bureaucrat at Indonesia’s Coordinating Ministry for Economic Affairs.
The members of the Eurasian grouping are Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia.
Indonesia is, additionally, accelerating to ratify a December 2024 comprehensive economic partnership agreement (Cepa) with Canada, he told a panel discussion in Jakarta on July 22, organised by Bank UOB Indonesia.
“We are rushing now to complete trade deals as part of our effort to expand markets,” Mr Susiwijono said, when asked by The Straits Times during the panel discussion.
“In the past two weeks, we have been travelling to a number of countries... and we have achieved concrete results,” he had said at the session. The Straits Times
---------
Coordinating Ministry Pushes for More Comprehensive ISPO, from Upstream to Downstream
InfoSAWIT, JAKARTA – The Indonesian Sustainable Palm Oil (ISPO) certification continues to be developed to cover the entire palm oil supply chain, from upstream to downstream products used daily. This was conveyed by Dida Gardera, Expert Staff for Connectivity and Service Development at the Coordinating Ministry for Economic Affairs, at a recent seminar.
Dida revealed that several plantations are still undergoing ISPO certification, but are located within forest areas. He believes this situation warrants serious government attention to ensure the certification process adheres to land legality principles.
"Several locations currently in the process of obtaining ISPO certification are still located within forest areas. We must ensure that all data from the Ministry of Forestry, the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), and various related parties is complete and verified. The goal is to ensure that the land is truly outside forest areas and in accordance with regulations," Dida explained, as quoted by InfoSAWIT, while attending an event in Bandung in mid-July 2025.
READ ALSO: 84 Acehnese Palm Oil Farmers Receive Technical Cultivation Training, Ready to Produce Booming Harvests
He further stated that the strengthening of the ISPO system is currently not only focused on the cultivation aspect in the plantation sector, but has also touched the downstream sector, such as palm oil derivative products used by the public every day, ranging from cooking oil and shampoo to soap.
"Going forward, ISPO certification must encompass sustainability aspects across all sectors, including ensuring where the product originates, whether it's from female farmers, and how it impacts society and the environment," he said.
Dida also emphasized the importance of innovation in the national palm oil sector, both in terms of technology and human resource development, so that this commodity continues to have added value and high competitiveness in the global market.
READ ALSO: Central Bangka Regency Government Intensifies ISPO Certification Outreach for Palm Oil Farmers
"Palm oil is Indonesia's leading commodity. Therefore, technological and human resource development must continue to be enhanced so that this industry can make a greater economic contribution," he stressed.
On the occasion, Dida also expressed his appreciation for the event, which focused on sustainability and strengthening the palm oil industry. He stated that forums like this should be held regularly to strengthen coordination between stakeholders.
Regarding global trade relations, particularly with the United States, Dida stated that the government continues to maintain communication and is ready to face various possible scenarios.
"We continue to communicate within the framework of international trade, including with the United States. While we are still awaiting their official response, Indonesia is clearly prepared for any eventuality," he concluded. (T2) Info Sawit
---------
New EU laws brew trouble for Kenya's smallholder coffee farmers
Kenya's coffee industry is racing against time to comply with the European Union Deforestation-Free Regulation (EUDR), a stringent new trade requirement that could lock smallholder farmers out of one of their most lucrative markets if unmet by January 1, 2026.
With over 55 per cent of Kenya’s coffee exports destined for the European Union, failure to align with these new standards could trigger a market crisis with wide-reaching economic consequences.
The EUDR mandates that all agricultural products entering the EU—including coffee—must be traceable to land that has not been deforested after December 31, 2020.
The regulation applies to seven key commodities—coffee, cacao, cattle, soy, timber, palm oil, and rubber—and seeks to reduce global deforestation driven by international trade.
“This is not just a Kenyan issue,” said Program Manager at the Global Coffee Platform George Watene.
“Countries across the globe are feeling the pressure. But for Kenya, where smallholder farmers dominate the coffee sector, the compliance challenge is particularly acute.”
“This is a regulatory shock,” said Senior Manager for Technology Integration at the Alliance of Bioversity International and CIAT Brian King.
“Just like a drought or pest outbreak, the EUDR is one more shock that farmers must now learn to navigate. And our job is to ensure that their livelihoods do not suffer as a result.”
According to King, the Alliance is working with both government and non-state actors to mitigate unintended consequences of the regulation and avoid the exclusion of smallholder farmers from the EU market.
He emphasised the importance of a unified response, stating, “This statement we’re working on—endorsed by 30 organizations—signals a convergence of public, private, and nonprofit efforts to provide both technological and policy solutions to the EUDR challenge.” Standard Media
---------
Exclusive: Ferrero sustainability report claims key environmental and social rights gains
A renewed focus on reducing environmental impact, supporting social rights and tackling child labour have formed core targets for Ferrero in its latest major sustainability report, writes Neill Barston.
The company’s 16th annual report, covering its performance during 2024, with its in-depth analysis reaffirming backing for the swift introduction of the corporate due diligence and EUDR landmark deforestation legislation. Notably, the latter has controversially seen pushback from right wing parties and also from some quarters within the confectionery sector in seeking even further delays to its implementation.
Among the core attainments, the company, which is due to play a key role in our fifth World Confectionery Conference, this year being staged in Brussels on 11 September, (register at this link), has reported that it is in fact already applying the standards laid down by EUDR requirements ahead of its official introduction planned for this December – which has already suffered a setback of a year due to political lobbying that saw its original start date of the beginning of 2025 pushed back.
Linked to this, the global confectionery and snacking group has reported that 97% of its supply chains for cocoa are now traceable, with the same figure being achieved for its palm oil supplies.
Hazelnut supplies are close behind, gaining 94% traceability in its global operations, which has followed specific initiatives to engage with the sector to improve social rights and operating standards governing the segment.
Tackling child labour
As the company noted, it has continued its work with Save the Children to the Centre for Child Rights and Business, we have developed Guidelines on Child Labour Prevention and Remediation in cocoa in Ivory Coast and Ghana.
The Guidelines build upon its Human Rights Policy Statement, Supplier Code and Cocoa Charter. They are also based on the UNGPs and the Children’s Rights and Business Principles, they are developed to protect
the best interests of children in its cocoa supply chain.
The Guidelines provide practical guidance and outline our expectations, roles and responsibilities for our supply chain partners to combat child labour in a holistic way. Confectionery Production
Indonesia rushing to complete trade deals with Europe, Canada as a hedge against looming US tariff
- Indonesia speeds up trade deals, including one with the EU, to counter a new 19 per cent US tariff.
- The Indonesia-European Union Cepa (IEU Cepa) deal, expected in 2026, will boost exports such as shoes, palm oil and coffee.
- Indonesia seeks quicker trade deal ratification with Canada, following the Australia Cepa model for effective trade and investment.
A top Indonesian official said South-east Asia’s largest economy is seeking 0 per cent tariff from trade deals with the European Union, which has 27 member countries.
It is also seeking a separate agreement with the Eurasian Economic Union, said Mr Susiwijono Moegiarso, the most senior bureaucrat at Indonesia’s Coordinating Ministry for Economic Affairs.
The members of the Eurasian grouping are Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia.
Indonesia is, additionally, accelerating to ratify a December 2024 comprehensive economic partnership agreement (Cepa) with Canada, he told a panel discussion in Jakarta on July 22, organised by Bank UOB Indonesia.
“We are rushing now to complete trade deals as part of our effort to expand markets,” Mr Susiwijono said, when asked by The Straits Times during the panel discussion.
“In the past two weeks, we have been travelling to a number of countries... and we have achieved concrete results,” he had said at the session. The Straits Times
---------
Coordinating Ministry Pushes for More Comprehensive ISPO, from Upstream to Downstream
InfoSAWIT, JAKARTA – The Indonesian Sustainable Palm Oil (ISPO) certification continues to be developed to cover the entire palm oil supply chain, from upstream to downstream products used daily. This was conveyed by Dida Gardera, Expert Staff for Connectivity and Service Development at the Coordinating Ministry for Economic Affairs, at a recent seminar.
Dida revealed that several plantations are still undergoing ISPO certification, but are located within forest areas. He believes this situation warrants serious government attention to ensure the certification process adheres to land legality principles.
"Several locations currently in the process of obtaining ISPO certification are still located within forest areas. We must ensure that all data from the Ministry of Forestry, the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), and various related parties is complete and verified. The goal is to ensure that the land is truly outside forest areas and in accordance with regulations," Dida explained, as quoted by InfoSAWIT, while attending an event in Bandung in mid-July 2025.
READ ALSO: 84 Acehnese Palm Oil Farmers Receive Technical Cultivation Training, Ready to Produce Booming Harvests
He further stated that the strengthening of the ISPO system is currently not only focused on the cultivation aspect in the plantation sector, but has also touched the downstream sector, such as palm oil derivative products used by the public every day, ranging from cooking oil and shampoo to soap.
"Going forward, ISPO certification must encompass sustainability aspects across all sectors, including ensuring where the product originates, whether it's from female farmers, and how it impacts society and the environment," he said.
Dida also emphasized the importance of innovation in the national palm oil sector, both in terms of technology and human resource development, so that this commodity continues to have added value and high competitiveness in the global market.
READ ALSO: Central Bangka Regency Government Intensifies ISPO Certification Outreach for Palm Oil Farmers
"Palm oil is Indonesia's leading commodity. Therefore, technological and human resource development must continue to be enhanced so that this industry can make a greater economic contribution," he stressed.
On the occasion, Dida also expressed his appreciation for the event, which focused on sustainability and strengthening the palm oil industry. He stated that forums like this should be held regularly to strengthen coordination between stakeholders.
Regarding global trade relations, particularly with the United States, Dida stated that the government continues to maintain communication and is ready to face various possible scenarios.
"We continue to communicate within the framework of international trade, including with the United States. While we are still awaiting their official response, Indonesia is clearly prepared for any eventuality," he concluded. (T2) Info Sawit
---------
New EU laws brew trouble for Kenya's smallholder coffee farmers
Kenya's coffee industry is racing against time to comply with the European Union Deforestation-Free Regulation (EUDR), a stringent new trade requirement that could lock smallholder farmers out of one of their most lucrative markets if unmet by January 1, 2026.
With over 55 per cent of Kenya’s coffee exports destined for the European Union, failure to align with these new standards could trigger a market crisis with wide-reaching economic consequences.
The EUDR mandates that all agricultural products entering the EU—including coffee—must be traceable to land that has not been deforested after December 31, 2020.
The regulation applies to seven key commodities—coffee, cacao, cattle, soy, timber, palm oil, and rubber—and seeks to reduce global deforestation driven by international trade.
“This is not just a Kenyan issue,” said Program Manager at the Global Coffee Platform George Watene.
“Countries across the globe are feeling the pressure. But for Kenya, where smallholder farmers dominate the coffee sector, the compliance challenge is particularly acute.”
“This is a regulatory shock,” said Senior Manager for Technology Integration at the Alliance of Bioversity International and CIAT Brian King.
“Just like a drought or pest outbreak, the EUDR is one more shock that farmers must now learn to navigate. And our job is to ensure that their livelihoods do not suffer as a result.”
According to King, the Alliance is working with both government and non-state actors to mitigate unintended consequences of the regulation and avoid the exclusion of smallholder farmers from the EU market.
He emphasised the importance of a unified response, stating, “This statement we’re working on—endorsed by 30 organizations—signals a convergence of public, private, and nonprofit efforts to provide both technological and policy solutions to the EUDR challenge.” Standard Media
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Exclusive: Ferrero sustainability report claims key environmental and social rights gains
A renewed focus on reducing environmental impact, supporting social rights and tackling child labour have formed core targets for Ferrero in its latest major sustainability report, writes Neill Barston.
The company’s 16th annual report, covering its performance during 2024, with its in-depth analysis reaffirming backing for the swift introduction of the corporate due diligence and EUDR landmark deforestation legislation. Notably, the latter has controversially seen pushback from right wing parties and also from some quarters within the confectionery sector in seeking even further delays to its implementation.
Among the core attainments, the company, which is due to play a key role in our fifth World Confectionery Conference, this year being staged in Brussels on 11 September, (register at this link), has reported that it is in fact already applying the standards laid down by EUDR requirements ahead of its official introduction planned for this December – which has already suffered a setback of a year due to political lobbying that saw its original start date of the beginning of 2025 pushed back.
Linked to this, the global confectionery and snacking group has reported that 97% of its supply chains for cocoa are now traceable, with the same figure being achieved for its palm oil supplies.
Hazelnut supplies are close behind, gaining 94% traceability in its global operations, which has followed specific initiatives to engage with the sector to improve social rights and operating standards governing the segment.
Tackling child labour
As the company noted, it has continued its work with Save the Children to the Centre for Child Rights and Business, we have developed Guidelines on Child Labour Prevention and Remediation in cocoa in Ivory Coast and Ghana.
The Guidelines build upon its Human Rights Policy Statement, Supplier Code and Cocoa Charter. They are also based on the UNGPs and the Children’s Rights and Business Principles, they are developed to protect
the best interests of children in its cocoa supply chain.
The Guidelines provide practical guidance and outline our expectations, roles and responsibilities for our supply chain partners to combat child labour in a holistic way. Confectionery Production
July 26, 2025
India And Indonesia Join Forces To Secure Palm Oil Supply And Boost Trade Ties
India imports over 60 per cent of its edible oil requirements, with Indonesia serving as its largest palm oil supplier for more than a decade, according to industry body SEA India
The Indian Vegetable Oil Producers' Association (IVPA) and Indonesian Palm Oil Association (IPOA) on Thursday signed a three-year pact here to deepen economic ties and ensure food security.
The memorandum of understanding aims to strengthen collaboration in the palm oil sector, which forms the backbone of the edible oil trade between the two nations.
India imports over 60 per cent of its edible oil requirements, with Indonesia serving as its largest palm oil supplier for more than a decade, according to industry body SEA India.
The agreement formalises this relationship, while focusing on sustainable practices and stable supply chains.
"Today's MoU signals our shared commitment to a future-ready, transparent palm oil supply chain that benefits consumers and producers alike," said Sudhakar Desai, President, IVPA, at the signing ceremony.
The agreement outlines five key areas of cooperation -- technical exchange and research & development, sustainability initiatives, policy coordination, food security measures, and market intelligence sharing. Both associations will focus on promoting certified sustainable palm oil while including smallholder farmers in the value chain.
M Fadhil Hasan, Head of Foreign Affairs, IPOA, emphasised Indonesia's commitment to supporting India's food security goals.
"We look forward to advancing India's food security and climate goals through a reliable, responsibly sourced palm oil supply," he said. ADP Live
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Malaysia’s palm oil share in India jumps to 35% in H1 2025; Diwali restocking and duty cut to fuel momentum
Palm oil exports from Malaysia rebound as price advantage and festive season demand lift volumes; industry bodies partner for joint regulatory outreach and consumer campaigns
Malaysia has consolidated its position in India's edible oil market, raising its share of palm oil to 35 per cent during the first half of 2025, MPOC stated. The council put this steep increase down to greater demand, price competitiveness, and a rebound in monthly export volumes.
Malaysia sent around 2.5 million metric tonnes (MT) of palm oil to India every year for the last five years. In May and June 2025, exports for the months returned to 2,50,000 MT following a slight decline after reaching its October 2024 high, MPOC CEO Belvinder Sron said at a roundtable organized by the Indian Vegetable Oil Producers' Association (IVPA). ZEE Biz
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Nigeria Prepares Palm Oil Tracking to Meet Global Standards
Nigeria aims to establish a national traceability system for its palm oil sector. To support this goal, Agriculture Minister Abubakar Kyari inaugurated an interministerial committee on July 23 to oversee its implementation.
According to Kyari, this expert group is mandated to coordinate efforts among federal and state government agencies, private sector stakeholders, producer cooperatives, processors, market associations, development partners, and donors.
Authorities seek to combat fraudulent practices such as adulteration and poor packaging, build consumer trust, and ensure compliance with both national and international quality standards. “The establishment of a national traceability system for palm oil is a clear demonstration of our determination to modernize agricultural value chains, enhance global competitiveness, and promote responsible production and sourcing throughout Nigeria’s oil palm sector,” Kyari said.
A lever for attracting more investment?
Implementing a traceability system could also become a key lever for attracting more investment into the industry. Traceability serves as concrete evidence of compliance with environmental, social, and governance (ESG) criteria, which international financial institutions prioritize in investment projects.
This is especially strategic as Nigeria’s palm oil sector increasingly relies on foreign investment to expand its production capacity. In December 2024, the National Palm Produce Association of Nigeria (NPPAN) announced its intention to attract $315.5 million in investments from Germany, Italy, France, Belgium, and Malaysia by 2026. The goal at the time was to diversify industrial production beyond crude palm oil and expand into other value added segments such as palm wine or biogas production from by-products, mainly for export.
The sector’s appeal to investors should also help accelerate the rollout of the National Palm Oil Development Strategy announced by the Oil Palm Growers Association of Nigeria (OPGAN) in April. As part of this five-year roadmap, OPGAN plans to replant 1.5 million hectares of oil palm across the country’s 27 producing states by 2030, aiming to revive the local industry.
Nigeria still relies on imports for about 20% of its palm oil consumption needs, which total nearly 2 million tons per year. According to the latest projections from the U.S. Department of Agriculture, local production is expected to remain flat at 1.5 million tons this year. Ecofin Agency
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1.7 EUROPEAN UNION AND CERTAIN MEMBER STATES – CERTAIN MEASURES CONCERNING PALM OIL AND OIL PALM CROP-BASED BIOFUELS: STATUS REPORT BY THE EUROPEAN UNION (WT/DS600/12)
The European Union is working on the implementation of the DSB recommendations and rulings in this dispute and is making its best efforts to complete the implementation before the expiry of the agreed reasonable period of time on 1 January 2026.
First, the European Union has already adopted Commission Implementing Regulation (EU) 2022/996 of 14 June 2022 on rules to verify sustainability and greenhouse gas emissions saving criteria and low indirect land-use change-risk criteria. This addresses the DSB recommendations and rulings relating to the design and implementation of the low Indirect Land Use Change (ILUC) criteria and certification procedure.
Second, the European Union is preparing the necessary actions to secure the review of the data used to determine which biofuels are high-Indirect Land Use Change risk.
Third, work is currently ongoing to address the DSB recommendations and rulings relating to the French TIRIB (Taxe Incitative Relative à l'Incorporation de Biocarburant) as part of a larger legislative reform. Europa
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Food vs fuel debate may emerge again, fears edible oil industry
Indonesia’s palm oil body apprehends exports and biodiesel programme may come under pressure
The bullish trend in global edible oil prices is likely to trigger a food versus fuel debate soon, said industry leaders at a global edible oil conference on Friday. Industry leaders from India’s largest palm oil trading partner, Indonesia, said while prices will remain stable around $1,000-1,100 per tonne, the country’s exportable surplus may reduce in the coming years mainly on diversion towards biodiesel.
“There may be another debate of food versus fuel soon, the way edible oil prices are rising globally and countries diverting vegetable oil for biodiesel programme may be under pressure from the global community,” said a panelist at the concluding day of the conference, organised by Indian Vegetable Oil Producers’ Association (IVPA) in New Delhi.
Speaking to businessline separately, Eddy Martono, Chairman of Indonesian Palm Oil Association (IPOA), said the domestic consumption of palm oil in Indonesia is estimated at 25-26 million tonnes (mt), including 15 mt diversion towards biodiesel, leaving a surplus of 25 mt as production is likely to be 50 mt. The palm oil export in 2024 was 29 mt, he said. The Hindu Businessline
India And Indonesia Join Forces To Secure Palm Oil Supply And Boost Trade Ties
India imports over 60 per cent of its edible oil requirements, with Indonesia serving as its largest palm oil supplier for more than a decade, according to industry body SEA India
The Indian Vegetable Oil Producers' Association (IVPA) and Indonesian Palm Oil Association (IPOA) on Thursday signed a three-year pact here to deepen economic ties and ensure food security.
The memorandum of understanding aims to strengthen collaboration in the palm oil sector, which forms the backbone of the edible oil trade between the two nations.
India imports over 60 per cent of its edible oil requirements, with Indonesia serving as its largest palm oil supplier for more than a decade, according to industry body SEA India.
The agreement formalises this relationship, while focusing on sustainable practices and stable supply chains.
"Today's MoU signals our shared commitment to a future-ready, transparent palm oil supply chain that benefits consumers and producers alike," said Sudhakar Desai, President, IVPA, at the signing ceremony.
The agreement outlines five key areas of cooperation -- technical exchange and research & development, sustainability initiatives, policy coordination, food security measures, and market intelligence sharing. Both associations will focus on promoting certified sustainable palm oil while including smallholder farmers in the value chain.
M Fadhil Hasan, Head of Foreign Affairs, IPOA, emphasised Indonesia's commitment to supporting India's food security goals.
"We look forward to advancing India's food security and climate goals through a reliable, responsibly sourced palm oil supply," he said. ADP Live
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Malaysia’s palm oil share in India jumps to 35% in H1 2025; Diwali restocking and duty cut to fuel momentum
Palm oil exports from Malaysia rebound as price advantage and festive season demand lift volumes; industry bodies partner for joint regulatory outreach and consumer campaigns
Malaysia has consolidated its position in India's edible oil market, raising its share of palm oil to 35 per cent during the first half of 2025, MPOC stated. The council put this steep increase down to greater demand, price competitiveness, and a rebound in monthly export volumes.
Malaysia sent around 2.5 million metric tonnes (MT) of palm oil to India every year for the last five years. In May and June 2025, exports for the months returned to 2,50,000 MT following a slight decline after reaching its October 2024 high, MPOC CEO Belvinder Sron said at a roundtable organized by the Indian Vegetable Oil Producers' Association (IVPA). ZEE Biz
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Nigeria Prepares Palm Oil Tracking to Meet Global Standards
- Nigeria set up expert group for an oil palm traceability system to fight fraud and meet global standards
- Aims to attract $315.5M in foreign investment by proving ESG compliance.
- Plans to replant 1.5M hectares by 2030 to cut 20% import reliance.
Nigeria aims to establish a national traceability system for its palm oil sector. To support this goal, Agriculture Minister Abubakar Kyari inaugurated an interministerial committee on July 23 to oversee its implementation.
According to Kyari, this expert group is mandated to coordinate efforts among federal and state government agencies, private sector stakeholders, producer cooperatives, processors, market associations, development partners, and donors.
Authorities seek to combat fraudulent practices such as adulteration and poor packaging, build consumer trust, and ensure compliance with both national and international quality standards. “The establishment of a national traceability system for palm oil is a clear demonstration of our determination to modernize agricultural value chains, enhance global competitiveness, and promote responsible production and sourcing throughout Nigeria’s oil palm sector,” Kyari said.
A lever for attracting more investment?
Implementing a traceability system could also become a key lever for attracting more investment into the industry. Traceability serves as concrete evidence of compliance with environmental, social, and governance (ESG) criteria, which international financial institutions prioritize in investment projects.
This is especially strategic as Nigeria’s palm oil sector increasingly relies on foreign investment to expand its production capacity. In December 2024, the National Palm Produce Association of Nigeria (NPPAN) announced its intention to attract $315.5 million in investments from Germany, Italy, France, Belgium, and Malaysia by 2026. The goal at the time was to diversify industrial production beyond crude palm oil and expand into other value added segments such as palm wine or biogas production from by-products, mainly for export.
The sector’s appeal to investors should also help accelerate the rollout of the National Palm Oil Development Strategy announced by the Oil Palm Growers Association of Nigeria (OPGAN) in April. As part of this five-year roadmap, OPGAN plans to replant 1.5 million hectares of oil palm across the country’s 27 producing states by 2030, aiming to revive the local industry.
Nigeria still relies on imports for about 20% of its palm oil consumption needs, which total nearly 2 million tons per year. According to the latest projections from the U.S. Department of Agriculture, local production is expected to remain flat at 1.5 million tons this year. Ecofin Agency
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1.7 EUROPEAN UNION AND CERTAIN MEMBER STATES – CERTAIN MEASURES CONCERNING PALM OIL AND OIL PALM CROP-BASED BIOFUELS: STATUS REPORT BY THE EUROPEAN UNION (WT/DS600/12)
The European Union is working on the implementation of the DSB recommendations and rulings in this dispute and is making its best efforts to complete the implementation before the expiry of the agreed reasonable period of time on 1 January 2026.
First, the European Union has already adopted Commission Implementing Regulation (EU) 2022/996 of 14 June 2022 on rules to verify sustainability and greenhouse gas emissions saving criteria and low indirect land-use change-risk criteria. This addresses the DSB recommendations and rulings relating to the design and implementation of the low Indirect Land Use Change (ILUC) criteria and certification procedure.
Second, the European Union is preparing the necessary actions to secure the review of the data used to determine which biofuels are high-Indirect Land Use Change risk.
Third, work is currently ongoing to address the DSB recommendations and rulings relating to the French TIRIB (Taxe Incitative Relative à l'Incorporation de Biocarburant) as part of a larger legislative reform. Europa
---------
Food vs fuel debate may emerge again, fears edible oil industry
Indonesia’s palm oil body apprehends exports and biodiesel programme may come under pressure
The bullish trend in global edible oil prices is likely to trigger a food versus fuel debate soon, said industry leaders at a global edible oil conference on Friday. Industry leaders from India’s largest palm oil trading partner, Indonesia, said while prices will remain stable around $1,000-1,100 per tonne, the country’s exportable surplus may reduce in the coming years mainly on diversion towards biodiesel.
“There may be another debate of food versus fuel soon, the way edible oil prices are rising globally and countries diverting vegetable oil for biodiesel programme may be under pressure from the global community,” said a panelist at the concluding day of the conference, organised by Indian Vegetable Oil Producers’ Association (IVPA) in New Delhi.
Speaking to businessline separately, Eddy Martono, Chairman of Indonesian Palm Oil Association (IPOA), said the domestic consumption of palm oil in Indonesia is estimated at 25-26 million tonnes (mt), including 15 mt diversion towards biodiesel, leaving a surplus of 25 mt as production is likely to be 50 mt. The palm oil export in 2024 was 29 mt, he said. The Hindu Businessline
July 25, 2025
US, Indonesia sign framework deal to boost agricultural products, biofuels trade
The US and Indonesia announced on July 22 a reciprocal trade framework agreement that promises to slash tariffs and remove regulatory barriers, unlocking billions of dollars in US exports of agricultural commodities, biofuels, animal proteins, refined products and aircraft.
The joint statement, released by the White House, outlines sweeping market access commitments, tariff cuts and billions of dollars in planned commercial deals, but leaving final details to be negotiated in the coming weeks.
The framework follows US President Donald Trump's July 15 remarks claiming Jakarta had pledged $4.5 billion in US food and agricultural imports, $15 billion in energy purchases, and 50 Boeing jets, in exchange for a cut in US tariffs on Indonesian goods to 19% from 32%.
Under the framework agreement, Indonesia committed to eliminate nearly all tariff barriers on US grains, soybeans, wheat, cotton, beef, pork and dairy, as well as ethanol feedstocks and industrial goods, while the US will cut its reciprocal tariff rate on Indonesian-origin goods to 19% from 32%, with further reductions possible.
For US exporters of soybeans, wheat, ethanol and meat facing rising competition from Brazil and Australia, the deal is expected to cement Indonesia's position as a critical growth market for agriculture and biofuel feedstocks.
Key provisions
According to the July 22 joint statement, Indonesia agreed to eliminate around 99% of tariff barriers on US food, agriculture, and industrial goods.
In return, the US will lower the tariff on Indonesian-origin goods to 19%, with the possibility of further reductions for commodities "not naturally available or produced" domestically. SP Global
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Trump’s Trade Deal With Indonesia, Explained
Indonesian exports to the U.S. will be subject to a 19 percent tariff – for now – but otherwise there is a lot that could change.
Last week, after threatening Indonesia with a 32 percent tariff, U.S. President Donald Trump announced that he had spoken directly with Indonesian President Prabowo Subianto and that they agreed on the basic outline of a trade deal. This week the United States and Indonesia released a joint statement providing a bit more detail, although we should keep in mind these terms may very well change.
For now, taken at face value, it appears that Indonesian exports to the United States will be subject to a 19 percent tariff, while most U.S. exports to Indonesia will face no tariff barriers. Indonesia also committed to buying Boeing aircraft, increasing imports of U.S. agriculture and energy products, and reducing non-tariff barriers like cumbersome licensing requirements.
In assessing this deal, it should be noted that the U.S. is not a huge export market for Indonesia, especially compared to other countries in the region like Vietnam. According to the Atlas of Economic Complexity, Indonesian exports totaled $287 billion in 2023 and around $22 billion, or 8 percent, of that went to the U.S. Most of this was from textiles ($8 billion), electronics ($3 billion), and palm oil ($1.5 billion).
At first glance, Indonesian textile exporters look to be getting the worst of this deal. Indonesia’s textile industry, especially firms with a lot of international exposure, have already been facing intense pressure thanks to weak global demand. The industry has been grappling with thousands of layoffs and at least one blockbuster bankruptcy. A 19 percent tariff on Indonesian textile exports to the U.S. is unlikely to help matters.
But the long-term outlook is harder to parse. If Nike and other companies feel it makes financial sense to relocate production from Indonesia to another country, they might do so. But relocating manufacturing on that scale is both expensive and time-consuming, so companies will probably wait for a while and see if the tariff scheme changes again, or if they can carve out an exemption. This is why trade policy is usually made in a more measured and consistent way, so that firms have time to adjust and respond to clear market signals rather than ad hoc announcements.
Palm oil is a bit different. Malaysia and Indonesia produce the vast majority of the world’s palm oil. The U.S. can certainly tariff Indonesian palm oil if it wants to, but there aren’t many other places where importers can get it. For this reason, the joint statement noted that “certain commodities that are not naturally available or domestically produced in the United States [may be considered] for a further reduction in the reciprocal tariff rate.” This gives the U.S. wiggle room to exempt things like palm oil, for which there are limited domestic substitutes. James Guild/ The Diplomat
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Indonesia is Seeking Zero Import Tariff For Palm Oil Entering USA
JAKARTA – The Indonesian government is seeking further negotiations with the USA government to get import tariff of 0% for a number of main commodities. Previously, the USA had decided to charge 19% import tariff for Indonesian commodities entering the country.
The economic coordinating ministry’s Secretary Susiwijono Moegiarso said that President Donald Trump had recently decided the reciprocal tariff for Indonesian goods at 19%, but there is still a possibility for further negotiations. “The negotiations can be further pursued for commodities that are really needed by the USA but cannot be produced there,” he said.
“Yesterday, President Prabowo Subianto had informed that the reciprocal tariff decided by President Trump for Indonesia is 19%. But there is still room to negotiate. We have several commodities that are really needed by the USA but could not be produced there. We can export the commodities to the country. It’s for those commodities that we’re seeking zero (0%) tariff,” Susiwijono was quoted by Antara as saying in Jakarta on Friday (18/7/2025).
Susiwijono said that the main commodities being proposed by Indonesian government to get zero tariff from USA are crude palm oil (CPO), coffee, cocoa, and nickel. He said that there are many commodities being offered, which have high competitiveness and could become strategic products for the Uncle Sam market.
According to him, negotiation process was still proceeding between the Indonesian team led by Economic Coordinating Minister Airlangga Hartarto and the team of USA trade representative office (USTR).
He said that all details of bilateral agreement between Indonesia and USA will be contained in a document of joint statement. “The joint statement will cover all points of bilateral agreement, from import tariff to solution of non-tariff barriers, and to their commitment of bilateral trade and investments. We’ve prepared final document,” Susiwijono said. GAPKI
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Indonesia To Push Up Palm Exports To EU, Capitalizing On IEU-CEPA
JAKARTA – The Indonesian government is preparing a strategic step to increase exports of palm oil and derivative products to European Union (EU). It is in line with the expectation that Indonesia and EU are about to finalize the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).
The finance ministry’s Strategic Economy and Fiscal Director General Febrio Kacaribu said that the export of palm oil products is one of main agenda in the trade agreement. The agreement is expected to push up the volume of exports to Europe, and increase national economic growth during the second semester of 2025 to about 5.0 percent.
“In cooperation with EU, the palm oil has been always one of our main interests. There is a trade agreement under the framework of IEU-CEPA, which will provide an opportunity to expand our exports,” Febrio said in Jakarta on Monday (21/07/2025).
He said that the increase of exports will become one of main drivers to national economic growth from the side of foreign trade.
“Not only to EU, the government is also targeting the USA market. We’ll push the exports of various products such as electronic equipment, textiles and textile products (TPT), and furniture for the sake of expanding market and increasing the performance of national industries.
He said that it is part of efforts to maximize the momentum of reaching a new trade deal with the USA, in which the import tariff imposed by the USA for Indonesian export products is lowered from 32% to only 19%. “That way our exports that had been growing by double digit during the first semester will continue during the second semester 2025. This is a very positive news. Hopefully, we can maximize this momentum,” he said.
The Indonesian Palm Oil Association (GAPKI) had previously reported that the export of CPO and derivative products saw a decrease of 39% to 1.77 million tons in April 2025, compared to that in March at 2.87 million tons.
The largest export decrease was seen by processed palm oil to 1.24 million tons or a decrease of 41% compared to that of the previous month at 2.12 million tons.
“Based on country of destination, the largest decrease of exports was seen to European Union (-156 thousand tons), India (-155 thousand tons), USA (-113 thousand tons) Pakistan (-109 thousand tons), Bangladesh (-86 thousand tons),” GAPKI Executive Director Mukti Sardjono said in a press release last month. (*) GAPKI
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USDA forecast higher Malaysian palm oil production and exports
Malaysia palm oil production and exports are expected to be higher in 2025/26, according to a report by the US Department of Agriculture (USDA).
The increased estimate for Malaysian palm oil production in 2025/26 to 19.4M tonnes was driven by expectations of normal weather conditions and a forecast expansion of the planted area, the USDA’s 10 July Foreign Agricultural Service (FAS)’s Malaysia: Oilseeds and Products Update said.
The increase in the projected planted area to 5.15M ha for both 2024/25 and 2025/26 was in line with Malaysian Palm Oil Board (MPOB) data and accounted for areas cultivated by smallholders who were not registered with the MPOB, representing between 1%-2% of all areas harvested.
The palm oil export estimate for 2025/26 was revised from 15.3M tonnes to 16M tonnes due to an increase in production estimates and a maintained consumption estimate.
Palm oil is forecast to be at a price discount in 2025/26 as prices had recently settled to average levels, increasing the oil’s price competitiveness compared to other vegetable oils, the report said.
“Since its peak in December 2024, palm oil prices have been on a downward trend, with May prices at the lowest since August 2024. The price reduction is mainly attributed to improved supply conditions and rising competition from other edible oils,” the USDA said. OFI Magazine
US, Indonesia sign framework deal to boost agricultural products, biofuels trade
The US and Indonesia announced on July 22 a reciprocal trade framework agreement that promises to slash tariffs and remove regulatory barriers, unlocking billions of dollars in US exports of agricultural commodities, biofuels, animal proteins, refined products and aircraft.
The joint statement, released by the White House, outlines sweeping market access commitments, tariff cuts and billions of dollars in planned commercial deals, but leaving final details to be negotiated in the coming weeks.
The framework follows US President Donald Trump's July 15 remarks claiming Jakarta had pledged $4.5 billion in US food and agricultural imports, $15 billion in energy purchases, and 50 Boeing jets, in exchange for a cut in US tariffs on Indonesian goods to 19% from 32%.
Under the framework agreement, Indonesia committed to eliminate nearly all tariff barriers on US grains, soybeans, wheat, cotton, beef, pork and dairy, as well as ethanol feedstocks and industrial goods, while the US will cut its reciprocal tariff rate on Indonesian-origin goods to 19% from 32%, with further reductions possible.
For US exporters of soybeans, wheat, ethanol and meat facing rising competition from Brazil and Australia, the deal is expected to cement Indonesia's position as a critical growth market for agriculture and biofuel feedstocks.
Key provisions
According to the July 22 joint statement, Indonesia agreed to eliminate around 99% of tariff barriers on US food, agriculture, and industrial goods.
In return, the US will lower the tariff on Indonesian-origin goods to 19%, with the possibility of further reductions for commodities "not naturally available or produced" domestically. SP Global
---------
Trump’s Trade Deal With Indonesia, Explained
Indonesian exports to the U.S. will be subject to a 19 percent tariff – for now – but otherwise there is a lot that could change.
Last week, after threatening Indonesia with a 32 percent tariff, U.S. President Donald Trump announced that he had spoken directly with Indonesian President Prabowo Subianto and that they agreed on the basic outline of a trade deal. This week the United States and Indonesia released a joint statement providing a bit more detail, although we should keep in mind these terms may very well change.
For now, taken at face value, it appears that Indonesian exports to the United States will be subject to a 19 percent tariff, while most U.S. exports to Indonesia will face no tariff barriers. Indonesia also committed to buying Boeing aircraft, increasing imports of U.S. agriculture and energy products, and reducing non-tariff barriers like cumbersome licensing requirements.
In assessing this deal, it should be noted that the U.S. is not a huge export market for Indonesia, especially compared to other countries in the region like Vietnam. According to the Atlas of Economic Complexity, Indonesian exports totaled $287 billion in 2023 and around $22 billion, or 8 percent, of that went to the U.S. Most of this was from textiles ($8 billion), electronics ($3 billion), and palm oil ($1.5 billion).
At first glance, Indonesian textile exporters look to be getting the worst of this deal. Indonesia’s textile industry, especially firms with a lot of international exposure, have already been facing intense pressure thanks to weak global demand. The industry has been grappling with thousands of layoffs and at least one blockbuster bankruptcy. A 19 percent tariff on Indonesian textile exports to the U.S. is unlikely to help matters.
But the long-term outlook is harder to parse. If Nike and other companies feel it makes financial sense to relocate production from Indonesia to another country, they might do so. But relocating manufacturing on that scale is both expensive and time-consuming, so companies will probably wait for a while and see if the tariff scheme changes again, or if they can carve out an exemption. This is why trade policy is usually made in a more measured and consistent way, so that firms have time to adjust and respond to clear market signals rather than ad hoc announcements.
Palm oil is a bit different. Malaysia and Indonesia produce the vast majority of the world’s palm oil. The U.S. can certainly tariff Indonesian palm oil if it wants to, but there aren’t many other places where importers can get it. For this reason, the joint statement noted that “certain commodities that are not naturally available or domestically produced in the United States [may be considered] for a further reduction in the reciprocal tariff rate.” This gives the U.S. wiggle room to exempt things like palm oil, for which there are limited domestic substitutes. James Guild/ The Diplomat
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Indonesia is Seeking Zero Import Tariff For Palm Oil Entering USA
JAKARTA – The Indonesian government is seeking further negotiations with the USA government to get import tariff of 0% for a number of main commodities. Previously, the USA had decided to charge 19% import tariff for Indonesian commodities entering the country.
The economic coordinating ministry’s Secretary Susiwijono Moegiarso said that President Donald Trump had recently decided the reciprocal tariff for Indonesian goods at 19%, but there is still a possibility for further negotiations. “The negotiations can be further pursued for commodities that are really needed by the USA but cannot be produced there,” he said.
“Yesterday, President Prabowo Subianto had informed that the reciprocal tariff decided by President Trump for Indonesia is 19%. But there is still room to negotiate. We have several commodities that are really needed by the USA but could not be produced there. We can export the commodities to the country. It’s for those commodities that we’re seeking zero (0%) tariff,” Susiwijono was quoted by Antara as saying in Jakarta on Friday (18/7/2025).
Susiwijono said that the main commodities being proposed by Indonesian government to get zero tariff from USA are crude palm oil (CPO), coffee, cocoa, and nickel. He said that there are many commodities being offered, which have high competitiveness and could become strategic products for the Uncle Sam market.
According to him, negotiation process was still proceeding between the Indonesian team led by Economic Coordinating Minister Airlangga Hartarto and the team of USA trade representative office (USTR).
He said that all details of bilateral agreement between Indonesia and USA will be contained in a document of joint statement. “The joint statement will cover all points of bilateral agreement, from import tariff to solution of non-tariff barriers, and to their commitment of bilateral trade and investments. We’ve prepared final document,” Susiwijono said. GAPKI
---------
Indonesia To Push Up Palm Exports To EU, Capitalizing On IEU-CEPA
JAKARTA – The Indonesian government is preparing a strategic step to increase exports of palm oil and derivative products to European Union (EU). It is in line with the expectation that Indonesia and EU are about to finalize the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).
The finance ministry’s Strategic Economy and Fiscal Director General Febrio Kacaribu said that the export of palm oil products is one of main agenda in the trade agreement. The agreement is expected to push up the volume of exports to Europe, and increase national economic growth during the second semester of 2025 to about 5.0 percent.
“In cooperation with EU, the palm oil has been always one of our main interests. There is a trade agreement under the framework of IEU-CEPA, which will provide an opportunity to expand our exports,” Febrio said in Jakarta on Monday (21/07/2025).
He said that the increase of exports will become one of main drivers to national economic growth from the side of foreign trade.
“Not only to EU, the government is also targeting the USA market. We’ll push the exports of various products such as electronic equipment, textiles and textile products (TPT), and furniture for the sake of expanding market and increasing the performance of national industries.
He said that it is part of efforts to maximize the momentum of reaching a new trade deal with the USA, in which the import tariff imposed by the USA for Indonesian export products is lowered from 32% to only 19%. “That way our exports that had been growing by double digit during the first semester will continue during the second semester 2025. This is a very positive news. Hopefully, we can maximize this momentum,” he said.
The Indonesian Palm Oil Association (GAPKI) had previously reported that the export of CPO and derivative products saw a decrease of 39% to 1.77 million tons in April 2025, compared to that in March at 2.87 million tons.
The largest export decrease was seen by processed palm oil to 1.24 million tons or a decrease of 41% compared to that of the previous month at 2.12 million tons.
“Based on country of destination, the largest decrease of exports was seen to European Union (-156 thousand tons), India (-155 thousand tons), USA (-113 thousand tons) Pakistan (-109 thousand tons), Bangladesh (-86 thousand tons),” GAPKI Executive Director Mukti Sardjono said in a press release last month. (*) GAPKI
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USDA forecast higher Malaysian palm oil production and exports
Malaysia palm oil production and exports are expected to be higher in 2025/26, according to a report by the US Department of Agriculture (USDA).
The increased estimate for Malaysian palm oil production in 2025/26 to 19.4M tonnes was driven by expectations of normal weather conditions and a forecast expansion of the planted area, the USDA’s 10 July Foreign Agricultural Service (FAS)’s Malaysia: Oilseeds and Products Update said.
The increase in the projected planted area to 5.15M ha for both 2024/25 and 2025/26 was in line with Malaysian Palm Oil Board (MPOB) data and accounted for areas cultivated by smallholders who were not registered with the MPOB, representing between 1%-2% of all areas harvested.
The palm oil export estimate for 2025/26 was revised from 15.3M tonnes to 16M tonnes due to an increase in production estimates and a maintained consumption estimate.
Palm oil is forecast to be at a price discount in 2025/26 as prices had recently settled to average levels, increasing the oil’s price competitiveness compared to other vegetable oils, the report said.
“Since its peak in December 2024, palm oil prices have been on a downward trend, with May prices at the lowest since August 2024. The price reduction is mainly attributed to improved supply conditions and rising competition from other edible oils,” the USDA said. OFI Magazine
July 24, 2025
EU palm oil imports decline significantly
Palm oil imports into the European Union (EU) declined significantly in 2024/25 compared to the previous year, according to a report by Germany’s Union for the Promotion of Plants and Protein (UFOP).
Declining demand from Spain and Italy had a particularly high impact on total figures, the 11 July report said.
From July 2024 to the end of June 2025, the EU-27 imported around 2.8M tonnes of palm oil, a decline of around 692,000 tonnes or 20%, compared to the previous year.
Although the Netherlands was the main recipient, the country’s imports fell 2% from the previous year’s volume, reaching 959,000 tonnes.
The report noted that ports such as Rotterdam or Amsterdam were central destinations for overseas imports and served as ports of entry into the EU from where palm oil was shipped on to other EU member states.
The Netherlands is also an important European location for biofuel production, particularly hydrotreated vegetable oil (HVO), according to the report.
With a volume of 835,000 tonnes – a 28% year-on-year decline – Italy was the second largest EU importer.
According to research by Agrarmarkt Informations-Gesellschaft, the decrease in palm oil imports to Spain was even more pronounced, with shipments to the country dropping by around 40% to 289,000 tonnes compared to the same period the previous year. OFI Magazine
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Indonesia's May palm oil stocks decline as exports surge
JAKARTA (July 23): Indonesia’s palm oil stocks at the end of May had contracted by 4.27% from the previous month to 2.9 million metric tonnes, after a surge in exports, data from the Indonesia Palm Oil Association (Gapki) showed on Wednesday.
Indonesia, the world’s largest palm oil producer, exported 2.66 million tonnes of palm oil, including refined products, in May, jumping nearly 50% compared to April, as a result of rising demand from India and China.
Outbound palm oil shipments rose 35.64% annually.
Crude palm oil output stood at 4.17 million tonnes in May, down from 4.48 million tonnes in the previous month, but up 7.2% annually. The Edge
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Palm oil exports remain elevated at 1.26m tonnes in June
KUALA LUMPUR — Malaysia’s palm oil exports in June 2025 remained higher year-on-year at 1.26 million tonnes, exceeding the 1.21 million tonnes in June 2024, said the Malaysian Palm Oil Council (MPOC).
For the same month in 2022 and 2023, the palm oil exports stood at 1.19 million tonnes and 1.17 million tonnes respectively, it said in a statement today.
“In the first half of 2025, Kenya ranked as Malaysia’s second-largest palm oil buyer, overtaking the EU27 countries by 21,000 tonnes and China by 117,000 tonnes. Kenya accounted for 30 per cent of Malaysia’s total palm oil exports to Sub-Saharan Africa, with full-year imports from Malaysia projected to reach 1.3 million tonnes,” the council said.
It added that Kenya remained a key growth market, driven by rising domestic consumption, with over 90 per cent of its palm oil imports used in food applications.
Meanwhile, the MPOC said the palm oil inventories rose to an 18-month high of 2.03 million tonnes during the same month.
Looking ahead, crude palm oil (CPO) prices are expected to stay firm, trading between RM4,100 and RM4,300 per tonne in the coming month, supported by festive demand from India and elevated US soybean oil prices.
“However, any rally in vegetable oil prices may be capped by abundant global oilseed supplies, particularly soybeans, as there is currently no shortage of oilseeds in the market,” it said.
Meanwhile, it said global vegetable oil prices have rebounded from early-year losses, led by a 19 per cent surge in soybean oil since January. This outpaced gains in rapeseed oil (6.6 per cent) and palm oil (3.7 per cent), while sunflower oil rose a modest 1.7 per cent.
“Soybean oil remains the top-performing vegetable oil year-to-date, supported by the US biofuel policy announced in mid-June, which is expected to spur demand for domestically produced feedstocks. Strong soybean oil prices have improved the price competitiveness of palm oil,” the council said.
As a result, MPOC said Malaysian palm oil exports to India have rebounded significantly since April, narrowing the cumulative decline seen in the first quarter (1Q) of 2025.
“India’s monthly imports of Malaysian palm oil remained consistently above 250,000 tonnes in both May and June. This positive momentum is expected to extend into 3Q, supported by restocking ahead of the Diwali festival in mid-October and favourable prices,” said MPOC. The Malaysian Reserve
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Kenya becomes top buyer of Malaysian palm oil, overtaking EU and China
Malaysia’s palm oil exports in June 2025 remained higher than the previous year at 1.26 million tonnes, up from 1.21 million tonnes in June 2024, the Malaysia Palm Oil Council (MPOC) said. In 2022 and 2023, palm oil exports stood at 1.19 million tonnes and 1.17 million tonnes, respectively.
In the first half of 2025, Kenya was the second-largest purchaser of palm oil from Malaysia, ahead of the EU27 at 21,000 tonnes and China at 117,000 tonnes. Kenya accounted for 30% of Malaysia’s total palm oil exports to Africa, with annual imports from Malaysia forecast to reach 1.3 million tonnes.
The document also said that Kenya remained a key growth market, supported by rising domestic consumption, with more than 90% of its palm oil imports used for food purposes.
Malaysian palm oil exports to India have increased significantly, exceeding 250,000 tonnes in both May and June. This positive momentum is expected to continue in the third quarter. India is expected to import around 2.9 million tonnes of palm oil in the third quarter to meet festive season demand, providing further support to prices.
Looking ahead, crude palm oil (CPO) prices are expected to remain stable in the range of 4,100 to 4,300 ringgit per tonne ($970-980) next month, supported by festive demand from India and high soybean oil prices in the US. However, any upside in vegetable oil prices could be limited by ample global supplies of oilseeds, especially soybeans, as there is currently no shortage in the market.
Meanwhile, according to the council, global vegetable oil prices have recovered from a fall earlier this year, thanks to a 19% increase in soybean oil prices since January. This is ahead of the rise in rapeseed oil (6.6%) and palm oil (3.7%), while sunflower oil prices have risen by only 1.7%.
Earlier, the Agroexport think tank noted that palm oil will set the tone for alternative oils in the second half of the summer. Since the beginning of this month, external palm oil prices in Indonesia have risen by $25 per tonne, while Malaysia has seen a more significant increase of $56.
According to OleoScope, on 22/07/2025, the price of palm oil (FOB Malaysia) for delivery in July was $1,029.83/t, which is $12.44/t higher than the previous value from 21/07/2025 ($1,017.39/t) UKR Agra Consult
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Malaysia continues to engage EU, global organisations on EUDR ‘standard risk’ classification, says minister
KUALA LUMPUR (July 24): The government will continue to hold engagement sessions with the European Union (EU) and global organisations to remove Malaysia from “standard risk” status under the benchmarking system of the European Union Deforestation Regulation (EUDR).
Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said that among matters discussed was the accuracy of the country’s latest forest data, which will be submitted to the Food and Agriculture Organisation (FAO) of the United Nations for the Global Forest Resources Assessment report, for Malaysia’s classification process under the EUDR.
“The government will continue to pursue this engagement method or approach, until we are removed from the standard risk (status),” he said during Thursday’s Dewan Rakyat sitting.
Chan was responding to a supplementary question from Syed Saddiq Syed Abdul Rahman (Muda-Muar) regarding the diplomatic, technical, and policy approaches the government has undertaken to negotiate with the EU, and mitigate the impact of non-tariff barriers on Malaysia’s smallholders.
He said the “standard risk” classification by the EUDR does not reflect the actual progress made by Malaysia.
The country’s sustainable palm oil certification (MSPO) has already reached 85%, while its forest coverage is also over 54% compared to the EU’s, which is only around 39%, he said.
Meanwhile, Chan said that to mitigate the impact on smallholders, further efforts have been made via the establishment of a special committee for implementing the EUDR at the national level, which involves several ministries and related agencies.
He said additional efforts include the establishment of an ad-hoc joint task force involving the participation of the Indonesian and EU governments, to discuss the best implementation methods for meeting the requirements of the EUDR.
Additionally, he said that Malaysia has discussed the impact of implementing the EUDR among commodity-producing countries through cooperation platforms, specifically the Council of Palm Oil Producing Countries (CPOPC), the International Tripartite Rubber Council, and the International Cocoa Organisation.
Chan also said that the government is enhancing the competitiveness of the agricommodity (agricultural commodity) industry, including expanding the use of agricommodity products among consumers in importing countries through bilateral, multilateral or regional free trade agreements.
“These programmes are implemented to strengthen sustainable agricultural practices, and ensure that smallholders are not left out of the supply chain for the European market.
“The Ministry of Plantation and Commodities will continue to carry out consultations with all affected stakeholders, to ensure that the implementation of the EUDR will not have a negative impact on the country’s agricommodity sector.
In addition, he said new market potential will continue to be explored, while strengthening the country’s share in existing traditional markets. The Edge
EU palm oil imports decline significantly
Palm oil imports into the European Union (EU) declined significantly in 2024/25 compared to the previous year, according to a report by Germany’s Union for the Promotion of Plants and Protein (UFOP).
Declining demand from Spain and Italy had a particularly high impact on total figures, the 11 July report said.
From July 2024 to the end of June 2025, the EU-27 imported around 2.8M tonnes of palm oil, a decline of around 692,000 tonnes or 20%, compared to the previous year.
Although the Netherlands was the main recipient, the country’s imports fell 2% from the previous year’s volume, reaching 959,000 tonnes.
The report noted that ports such as Rotterdam or Amsterdam were central destinations for overseas imports and served as ports of entry into the EU from where palm oil was shipped on to other EU member states.
The Netherlands is also an important European location for biofuel production, particularly hydrotreated vegetable oil (HVO), according to the report.
With a volume of 835,000 tonnes – a 28% year-on-year decline – Italy was the second largest EU importer.
According to research by Agrarmarkt Informations-Gesellschaft, the decrease in palm oil imports to Spain was even more pronounced, with shipments to the country dropping by around 40% to 289,000 tonnes compared to the same period the previous year. OFI Magazine
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Indonesia's May palm oil stocks decline as exports surge
JAKARTA (July 23): Indonesia’s palm oil stocks at the end of May had contracted by 4.27% from the previous month to 2.9 million metric tonnes, after a surge in exports, data from the Indonesia Palm Oil Association (Gapki) showed on Wednesday.
Indonesia, the world’s largest palm oil producer, exported 2.66 million tonnes of palm oil, including refined products, in May, jumping nearly 50% compared to April, as a result of rising demand from India and China.
Outbound palm oil shipments rose 35.64% annually.
Crude palm oil output stood at 4.17 million tonnes in May, down from 4.48 million tonnes in the previous month, but up 7.2% annually. The Edge
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Palm oil exports remain elevated at 1.26m tonnes in June
KUALA LUMPUR — Malaysia’s palm oil exports in June 2025 remained higher year-on-year at 1.26 million tonnes, exceeding the 1.21 million tonnes in June 2024, said the Malaysian Palm Oil Council (MPOC).
For the same month in 2022 and 2023, the palm oil exports stood at 1.19 million tonnes and 1.17 million tonnes respectively, it said in a statement today.
“In the first half of 2025, Kenya ranked as Malaysia’s second-largest palm oil buyer, overtaking the EU27 countries by 21,000 tonnes and China by 117,000 tonnes. Kenya accounted for 30 per cent of Malaysia’s total palm oil exports to Sub-Saharan Africa, with full-year imports from Malaysia projected to reach 1.3 million tonnes,” the council said.
It added that Kenya remained a key growth market, driven by rising domestic consumption, with over 90 per cent of its palm oil imports used in food applications.
Meanwhile, the MPOC said the palm oil inventories rose to an 18-month high of 2.03 million tonnes during the same month.
Looking ahead, crude palm oil (CPO) prices are expected to stay firm, trading between RM4,100 and RM4,300 per tonne in the coming month, supported by festive demand from India and elevated US soybean oil prices.
“However, any rally in vegetable oil prices may be capped by abundant global oilseed supplies, particularly soybeans, as there is currently no shortage of oilseeds in the market,” it said.
Meanwhile, it said global vegetable oil prices have rebounded from early-year losses, led by a 19 per cent surge in soybean oil since January. This outpaced gains in rapeseed oil (6.6 per cent) and palm oil (3.7 per cent), while sunflower oil rose a modest 1.7 per cent.
“Soybean oil remains the top-performing vegetable oil year-to-date, supported by the US biofuel policy announced in mid-June, which is expected to spur demand for domestically produced feedstocks. Strong soybean oil prices have improved the price competitiveness of palm oil,” the council said.
As a result, MPOC said Malaysian palm oil exports to India have rebounded significantly since April, narrowing the cumulative decline seen in the first quarter (1Q) of 2025.
“India’s monthly imports of Malaysian palm oil remained consistently above 250,000 tonnes in both May and June. This positive momentum is expected to extend into 3Q, supported by restocking ahead of the Diwali festival in mid-October and favourable prices,” said MPOC. The Malaysian Reserve
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Kenya becomes top buyer of Malaysian palm oil, overtaking EU and China
Malaysia’s palm oil exports in June 2025 remained higher than the previous year at 1.26 million tonnes, up from 1.21 million tonnes in June 2024, the Malaysia Palm Oil Council (MPOC) said. In 2022 and 2023, palm oil exports stood at 1.19 million tonnes and 1.17 million tonnes, respectively.
In the first half of 2025, Kenya was the second-largest purchaser of palm oil from Malaysia, ahead of the EU27 at 21,000 tonnes and China at 117,000 tonnes. Kenya accounted for 30% of Malaysia’s total palm oil exports to Africa, with annual imports from Malaysia forecast to reach 1.3 million tonnes.
The document also said that Kenya remained a key growth market, supported by rising domestic consumption, with more than 90% of its palm oil imports used for food purposes.
Malaysian palm oil exports to India have increased significantly, exceeding 250,000 tonnes in both May and June. This positive momentum is expected to continue in the third quarter. India is expected to import around 2.9 million tonnes of palm oil in the third quarter to meet festive season demand, providing further support to prices.
Looking ahead, crude palm oil (CPO) prices are expected to remain stable in the range of 4,100 to 4,300 ringgit per tonne ($970-980) next month, supported by festive demand from India and high soybean oil prices in the US. However, any upside in vegetable oil prices could be limited by ample global supplies of oilseeds, especially soybeans, as there is currently no shortage in the market.
Meanwhile, according to the council, global vegetable oil prices have recovered from a fall earlier this year, thanks to a 19% increase in soybean oil prices since January. This is ahead of the rise in rapeseed oil (6.6%) and palm oil (3.7%), while sunflower oil prices have risen by only 1.7%.
Earlier, the Agroexport think tank noted that palm oil will set the tone for alternative oils in the second half of the summer. Since the beginning of this month, external palm oil prices in Indonesia have risen by $25 per tonne, while Malaysia has seen a more significant increase of $56.
According to OleoScope, on 22/07/2025, the price of palm oil (FOB Malaysia) for delivery in July was $1,029.83/t, which is $12.44/t higher than the previous value from 21/07/2025 ($1,017.39/t) UKR Agra Consult
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Malaysia continues to engage EU, global organisations on EUDR ‘standard risk’ classification, says minister
KUALA LUMPUR (July 24): The government will continue to hold engagement sessions with the European Union (EU) and global organisations to remove Malaysia from “standard risk” status under the benchmarking system of the European Union Deforestation Regulation (EUDR).
Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said that among matters discussed was the accuracy of the country’s latest forest data, which will be submitted to the Food and Agriculture Organisation (FAO) of the United Nations for the Global Forest Resources Assessment report, for Malaysia’s classification process under the EUDR.
“The government will continue to pursue this engagement method or approach, until we are removed from the standard risk (status),” he said during Thursday’s Dewan Rakyat sitting.
Chan was responding to a supplementary question from Syed Saddiq Syed Abdul Rahman (Muda-Muar) regarding the diplomatic, technical, and policy approaches the government has undertaken to negotiate with the EU, and mitigate the impact of non-tariff barriers on Malaysia’s smallholders.
He said the “standard risk” classification by the EUDR does not reflect the actual progress made by Malaysia.
The country’s sustainable palm oil certification (MSPO) has already reached 85%, while its forest coverage is also over 54% compared to the EU’s, which is only around 39%, he said.
Meanwhile, Chan said that to mitigate the impact on smallholders, further efforts have been made via the establishment of a special committee for implementing the EUDR at the national level, which involves several ministries and related agencies.
He said additional efforts include the establishment of an ad-hoc joint task force involving the participation of the Indonesian and EU governments, to discuss the best implementation methods for meeting the requirements of the EUDR.
Additionally, he said that Malaysia has discussed the impact of implementing the EUDR among commodity-producing countries through cooperation platforms, specifically the Council of Palm Oil Producing Countries (CPOPC), the International Tripartite Rubber Council, and the International Cocoa Organisation.
Chan also said that the government is enhancing the competitiveness of the agricommodity (agricultural commodity) industry, including expanding the use of agricommodity products among consumers in importing countries through bilateral, multilateral or regional free trade agreements.
“These programmes are implemented to strengthen sustainable agricultural practices, and ensure that smallholders are not left out of the supply chain for the European market.
“The Ministry of Plantation and Commodities will continue to carry out consultations with all affected stakeholders, to ensure that the implementation of the EUDR will not have a negative impact on the country’s agricommodity sector.
In addition, he said new market potential will continue to be explored, while strengthening the country’s share in existing traditional markets. The Edge
July 23, 2025
Palm oil prices to stay firm next month on India demand, soybean prices, says industry council
KUALA LUMPUR (July 22): Palm oil prices are expected to remain firm next month, supported by firm festive demand from India and elevated US soybean oil prices, the Malaysian Palm Oil Council said on Tuesday.
Crude palm oil may trade between RM4,100 and RM4,300 per tonne, according to forecasts from the industry council also known as MPOC. However, any rally in vegetable oil prices may be capped by abundant global oilseed supply, particularly soybeans, the key substitute for palm oil, MPOC said.
“Rising US demand alone is insufficient to offset the anticipated surge in global soybean supply,” the council noted.
Prices of the edible oil used in everything from infant formula to biodiesel have remained above the RM4,000 per tonne mark in recent months amid concerns over output following unfavourable weather conditions and floods in several key producing states in recent months.
Current forecast calls for South American soybean production to increase to 245 million tonnes in 2026. The ample supply is expected to weigh on soybean prices, with US inventories projected to double from 2023 levels due to high carry-over and a steep decline in exports to China.
A US biofuel policy announced in mid-June is expected to spur demand for domestically produced feedstocks, MPOC said.
The strong soybean oil prices have improved the price competitiveness of palm oil, significantly boosting Malaysian palm oil exports to India, the world’s top edible oil importer, since April and remained consistently above 250,000 tonnes in both May and June.
The momentum is expected to extend into the third quarter, supported by restocking ahead of the Diwali festival in mid-October, the council said, noting that India is projected to import around 2.9 million tonnes of palm oil to meet festive season demand in the third quarter. The Edge
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India’s palm oil ambitions sprout in Malaysian nurseries
India has emerged as the largest importer of Malaysian oil palm seeds, signaling a new chapter in agri-commercial cooperation between the two nations. In 2024 alone, India imported 3.03 million tonnes of palm oil from Malaysia—17.9 per cent of Malaysia’s total palm oil exports—making it the top global destination. But beyond refined product flows, India’s expanding footprint as a buyer of germinated oil palm seeds underscores a deeper structural shift: the acceleration of domestic palm oil cultivation to reduce edible oil import dependency.
Driven by the National Mission on Edible Oils–Oil Palm (NMEO-OP), India aims to bring one million hectares under oil palm by 2025–26 and ramp up domestic crude palm oil production to 2.8 million tonnes by 2029–30. Current estimates suggest about 370,000 hectares are already under cultivation, with the northeast and island territories emerging as focal points of this agro-industrial transformation. As acreage expands, so too does the demand for quality planting material—making Malaysia, a global leader in oil palm R&D, a strategic seed supplier.
The seed trade, however, remains fragmented and largely informal. Transactions are mostly ad hoc, driven by business-to-business channels without long-term procurement frameworks. Still, the consistent flow of consignments and technical collaboration reflects India’s growing trust in Malaysia’s breeding expertise and seed quality. The Malaysian Palm Oil Board (MPOB), with its history of varietal innovation, is supporting Indian growers with high-performing planting materials and agronomic know-how tailored for tropical zones with sufficient rainfall.
This collaboration comes at a time when Malaysia’s palm oil exports to India have seen modest moderation, partly due to New Delhi’s calibrated tariff reductions on crude palm oil. These adjustments are aimed at enhancing domestic refining capacity and managing inflationary pressures on edible oils. Yet, while bulk oil flows recalibrate, the long-term partnership on planting materials is poised to deepen—anchored in a shared goal of building resilient, sustainable supply chains.
Malaysia continues to invest in upstream R&D, unveiling new high-yield oil palm varieties that deliver over 30 tonnes of fresh fruit bunches per hectare—nearly double the national average of 15.5 to 16.7 tonnes recorded between 2020 and 2023. These next-generation hybrids not only promise greater productivity but also exhibit slower vertical growth, extending plantation lifecycles and improving labor efficiency. While still in development, climate-resilient strains with drought tolerance are also on the research horizon, offering future-proof options for regions grappling with erratic rainfall.
Malaysia’s palm oil innovation ecosystem is aligning with India’s strategic cultivation goals, presenting opportunities for structured seed diplomacy. As India scales its oil palm landscape, the challenge ahead lies in formalizing the seed supply chain, embedding quality assurance mechanisms, and translating varietal potential into farmer profitability. For now, India’s role as the top buyer of Malaysian oil palm seeds signals more than just a trade statistic—it reflects a maturing bilateral value chain poised for long-term impact. Agro Spectrum India
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Malaysia moves to secure low-risk status under EU deforestation rules
KUALA LUMPUR: Malaysia is rolling out coordinated strategies to secure its status as a low-risk country under the EU's deforestation rules, with efforts spanning forest monitoring, regulatory compliance, and sustainable land management.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said one of the key strategies is coordinating the implementation of the EU Deforestation Regulation (EUDR) across multiple ministries and agencies.
These include forest data management, enforcement and sustainable forest governance, he said.
The European Union has unveiled the "country benchmarking system" under the EUDR.
It will divide countries into one of three tiers: "low", "standard" or "high" risk, with escalating due diligence and compliance obligations aimed at minimising EU's contributions to global deforestation and forest degradation.
It requires seven commodities and their derivatives — cattle, cocoa, coffee, palm oil, rubber, soyabean and wood — entering the EU market to be deforestation-free, legally produced and covered by a due diligence statement.
Johari (BN–Titiwangsa) said that his ministry is also working to ensure that Malaysia's agri-commodity products exported to the EU meet EUDR requirements through the adoption of sustainable certification schemes such as the Malaysian Sustainable Palm Oil Certification Scheme, the Malaysian Timber Certification Scheme, and the Malaysian Sustainable Natural Rubber Guidelines.
"Relevant issues that may affect the accuracy of Malaysia's latest forest data submitted for the Global Forest Resources Assessment report to the Food and Agriculture Organisation, which is used in the EUDR risk classification process, are also discussed," he said in a written parliamentary reply.
Johari also said recommendations would be submitted to the government regarding compliance measures that need to be implemented by the relevant ministries and agencies.
"These strategies reflect our proactive efforts to ensure Malaysia is classified as a low-risk country and demonstrate the Ministry's commitment to keeping the country's agri-commodity products competitive in the EU market," he said. New Straits Times
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Can palm oil go net zero? Inside the push to cut climate impact
The world’s most widely used vegetable oil is at the heart of a decades-long battle between economic development and environmental damage. More can be done.
Palm oil is one of the most ubiquitous substances in the goods we consume, found in everything from chocolate to cosmetics. It’s in nearly 50% of the packaged products we see in supermarkets, and it’s also used in animal feed and as a biofuel in many parts of the world.
The reason is that it’s an extremely versatile oil with numerous properties and functions. It is semi-solid at room temperature, making it suitable for use in food, and it’s resistant to oxidation, which can extend the shelf life of products. It’s also odourless and colourless, so it doesn’t alter the look or smell of food products. It would therefore be very difficult to replace with another ingredient.
But palm oil has long been linked to deforestation, fires and greenhouse gas emissions. The forest loss, together with the conversion of carbon-rich peat soils, has caused millions of tonnes of greenhouse gases to escape into the atmosphere.
Still, could there be a way to reap the benefits of palm oil without contributing to climate change?
Today, producing countries, major brands, and local farmers are betting that new technology and rules can rewrite that story - and even push palm oil toward net-zero emissions.
The biggest challenge is stopping indirect land use change (ILUC), the hidden climate cost when forests are cleared elsewhere to make room for crops that have been displaced by palm oil cultivation. For Indonesia and Malaysia, the two biggest producers of palm oil, these efforts have been particularly important.
“In Malaysia, palm oil is produced in accordance with sustainable principles and criteria under the Malaysian Sustainable Palm Oil (MSPO) certification scheme, which has been implemented on a mandatory basis from January 2020,” says Dr. Ahmad Parveez Ghulam Kadir, Director-General of the Malaysian Palm Oil Board. “The MPSO certification has a deforestation cut-off date of 31 December 2019, which strengthened the requirements for new planting.”
Satellite eyes in the sky
Over the past two decades, pressure from consumers and regulators has motivated palm oil giants to clean up their supply chains. At the heart of this effort is traceability - proving exactly where each tonne of palm oil comes from.
Multinational companies like Unilever, Ferrero, Nestlé, and Kao now monitor vast plantations with high-resolution satellite imagery and AI detection tools. Ferrero, for example, has tracked 100% of its palm oil to the plantation level since 2016 and uses Starling satellite monitoring to flag forest loss in real time. Unilever’s NDPE (No Deforestation, No Peat, No Exploitation) dashboard tracks 20 million hectares globally.
Meanwhile, producing countries are tightening the rules. Indonesia has launched its e-STDB traceability platform, which requires farmers and companies to register their palm plantations on a national blockchain-based database.
Malaysia is developing the National Oil Palm Traceability System, to establish full traceability across the supply chain. “This system is anchored by the Sawit Intelligent Management System (SIMS) for traceability data and will be integrated with GeoSawit and e-MSPO, two important platforms that support geospatial mapping and sustainability certification, respectively,” says Ahmad Parveez.
He said, “The integrated approach enables the tracking of the origin of palm products along the supply chain from the plantation and smallholders. The traceability system is crucial in the context of sustainability and climate commitments, including monitoring, management and reporting of emissions, among others.”
These advances are being supercharged by technology.
New satellite monitoring systems - like Earthqualizer, Palmoil.io, and Global Forest Watch - use AI to spot illegal land clearing, even under cloud cover. This surveillance is giving companies and governments near real-time alerts when new plantations appear on high-carbon peatlands or primary forests.
Changes on the ground
Palm oil emissions don’t just come from clearing forests, but also from methane leaking from palm oil mills.
Malaysia’s Sustainable Palm Oil Roadmap encourages mills to capture methane and turn it into biogas, cutting emissions by nearly 40% per tonne of crude palm oil, according to a 2023 industry report.
Meanwhile, projects like PALMSTEP in Central Kalimantan, funded by the European Union, help smallholder farmers get certified and access digital tools for traceability and regenerative farming, reducing the pressure to expand into forests.
Palm oil mills emit methane from wastewater and CO₂ from energy use. Methane-capture biogas systems, together with switching to renewable energy, can reduce mill CO₂e intensity by around 40%, according to experts. Energy-efficient mills coupled with zero-burning policies can also help combat both direct emissions and ILUC pressures.
“The cooperation among countries in Southeast Asia has continued to ensure conservation of forest and biodiversity as well as reduce impact on the environment and contribute to climate action,” says Parveez.
“One of the examples is the Heart of Borneo, a trilateral cooperation between Brunei, Indonesia and Malaysia covering an area of over 20 million hectares that help to strengthen the world’s resilience to climate change by conserving carbon sinks and creating a huge green lung for the world, and at the same time protecting the livelihoods of the forest dependent communities.”
He noted that in addition, Malaysia has the Central Forest Spine initiative that covers 5.3 million hectares in Peninsular Malaysia as part of the conservation efforts at the national level.
Is it working? More at Euractiv
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Small-scale Farmers and the Sustainability Imperative in Palm Oil
Small-scale farmers are key to sustainable palm oil, but without support to meet rising standards, they risk exclusion from global supply chains.
In global commodity value chains, small-scale farmers play a critical role. They contribute around 35 percent of the global food production and account for 84 percent of the total farms worldwide. Small-scale farmers are responsible for producing 70 percent of the food being consumed in low- and middle-income countries. Nonetheless, they do not dominate the sustainability story. Instead, they are on the margins, struggling to cope with the impacts of climate change due to lack of access to information, training, and markets, which hinders their ability to improve productivity, build climate resilience, and enhance the quality of livelihoods.
Sustainability initiatives have ignored and even failed to recognise small-scale farmers. This is despite small-scale farms being traditionally known to practice polyculture (as against monoculture by big industrial plantations) and protect biodiversity. A relatively easy indicator would be the number of small-scale farmers certified against a sustainability standard. Nearly 2 percent of small-scale farmers in low-income countries are certified.
Furthermore, with consumer markets in the United States (US), Europe—and with early trends visible in Asia as well—moving towards sustainable, deforestation-free produce, small-scale farmers are uniquely positioned to cater to this shift. For instance, in palm oil production, studies have shown that as zero-deforestation commitments by companies and moratorium on large-scale palm plantations in Indonesia continue, the area and production under small-scale farms will increase.
While the demand for sustainable palm is expected to grow each year, large-scale plantations alone will not be able to fulfil it. Sustainable palm—which is compliant with a sustainability standard—accounts for only 17 percent of the overall production. The segment that needs to be included and mainstreamed to improve the share of sustainable palm globally is the small-scale farmers.
Small Farmers, Big Stakes: Where Do They Stand?
Palm oil accounts for 40 percent of the vegetable oil traded globally. It is almost ubiquitous: it can be found in instant noodles, ice creams, chocolates, cookies, packaged bread and more. Roughly 7 million small-scale palm oil farmers are responsible for 25-30 percent of the total palm oil supply.
In Indonesia, which is the largest producer of palm oil globally, nearly 35 percent of the crude palm oil comes from small-scale farms. It is critical to poverty alleviation and corroborates why many small farmers have transitioned from growing rubber to palm in the past two decades. Simultaneously, the footprint of small-scale farmer-managed plantations in Indonesia has expanded from 1.6 million hectares in 2001 to 5.8 million hectares by 2018. In 2025, the crop serves as a source of livelihood for 2.6 million small-scale farmers. In both Malaysia and Indonesia, research indicates that small-scale farmers in palm have experienced notable improvements in living standards compared to the past generation.
While its role in securing livelihoods is established, the palm oil sector is increasingly facing pressure to demonstrate environmental and social responsibility—especially as concerns over deforestation, biodiversity loss, and labour rights violations have gained global traction. The European Union Deforestation Regulation (EUDR) is set to take effect at the end of 2025. Micro and small enterprises have received an extension until May 2026. The regulation aims to encourage the consumption of deforestation-free products while addressing deforestation caused by the expansion of agricultural land. In other words, companies supplying to the European Union (EU) will have to prove that their products don’t come from deforested land. Palm oil is one of the key commodities this legislation aims to cover.
Small-scale farmers are at the risk of exclusion by default. They are bound to find it difficult to meet the regulatory requirements effectively without adequate administrative and financial support. Globally, certification is becoming the determining factor for export-readiness on the producer’s end, especially in light of regulations demanding traceability. With only about 0.3 percent of the land managed by small-scale farmers certified against the Indonesian Sustainable Palm Oil (ISPO) standard, small-scale farmers growing palm are looking at an uncertain future.
Green Labels, Red Margins – The High Cost of Compliance
However, certification is not an easily attainable goal for small-scale farmers. First, it does not come cheap. For small-scale farmers operating on razor-thin margins, the costs of maintaining compliance—which include land legality verification, traceability audits, and better farm inputs—can eat up to 50 percent of their annual income. Second, incentives for certified palm oil often fail to trickle down to them. Intermediaries and processors capture most of the value. Small-scale farmers in the value chain remain price takers, with little negotiation power in a market dominated by mills and traders. Although certification promises better incomes, the reality is rather stark: for many, the math simply does not work. The Palm Oil Barometer 2025 notes that price incentives are inconsistent and rarely offset the cost of compliance. Without these, small-scale farmers bear the burden of sustainability certifications without receiving a share of the resulting benefits. ORF Online
Palm oil prices to stay firm next month on India demand, soybean prices, says industry council
KUALA LUMPUR (July 22): Palm oil prices are expected to remain firm next month, supported by firm festive demand from India and elevated US soybean oil prices, the Malaysian Palm Oil Council said on Tuesday.
Crude palm oil may trade between RM4,100 and RM4,300 per tonne, according to forecasts from the industry council also known as MPOC. However, any rally in vegetable oil prices may be capped by abundant global oilseed supply, particularly soybeans, the key substitute for palm oil, MPOC said.
“Rising US demand alone is insufficient to offset the anticipated surge in global soybean supply,” the council noted.
Prices of the edible oil used in everything from infant formula to biodiesel have remained above the RM4,000 per tonne mark in recent months amid concerns over output following unfavourable weather conditions and floods in several key producing states in recent months.
Current forecast calls for South American soybean production to increase to 245 million tonnes in 2026. The ample supply is expected to weigh on soybean prices, with US inventories projected to double from 2023 levels due to high carry-over and a steep decline in exports to China.
A US biofuel policy announced in mid-June is expected to spur demand for domestically produced feedstocks, MPOC said.
The strong soybean oil prices have improved the price competitiveness of palm oil, significantly boosting Malaysian palm oil exports to India, the world’s top edible oil importer, since April and remained consistently above 250,000 tonnes in both May and June.
The momentum is expected to extend into the third quarter, supported by restocking ahead of the Diwali festival in mid-October, the council said, noting that India is projected to import around 2.9 million tonnes of palm oil to meet festive season demand in the third quarter. The Edge
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India’s palm oil ambitions sprout in Malaysian nurseries
India has emerged as the largest importer of Malaysian oil palm seeds, signaling a new chapter in agri-commercial cooperation between the two nations. In 2024 alone, India imported 3.03 million tonnes of palm oil from Malaysia—17.9 per cent of Malaysia’s total palm oil exports—making it the top global destination. But beyond refined product flows, India’s expanding footprint as a buyer of germinated oil palm seeds underscores a deeper structural shift: the acceleration of domestic palm oil cultivation to reduce edible oil import dependency.
Driven by the National Mission on Edible Oils–Oil Palm (NMEO-OP), India aims to bring one million hectares under oil palm by 2025–26 and ramp up domestic crude palm oil production to 2.8 million tonnes by 2029–30. Current estimates suggest about 370,000 hectares are already under cultivation, with the northeast and island territories emerging as focal points of this agro-industrial transformation. As acreage expands, so too does the demand for quality planting material—making Malaysia, a global leader in oil palm R&D, a strategic seed supplier.
The seed trade, however, remains fragmented and largely informal. Transactions are mostly ad hoc, driven by business-to-business channels without long-term procurement frameworks. Still, the consistent flow of consignments and technical collaboration reflects India’s growing trust in Malaysia’s breeding expertise and seed quality. The Malaysian Palm Oil Board (MPOB), with its history of varietal innovation, is supporting Indian growers with high-performing planting materials and agronomic know-how tailored for tropical zones with sufficient rainfall.
This collaboration comes at a time when Malaysia’s palm oil exports to India have seen modest moderation, partly due to New Delhi’s calibrated tariff reductions on crude palm oil. These adjustments are aimed at enhancing domestic refining capacity and managing inflationary pressures on edible oils. Yet, while bulk oil flows recalibrate, the long-term partnership on planting materials is poised to deepen—anchored in a shared goal of building resilient, sustainable supply chains.
Malaysia continues to invest in upstream R&D, unveiling new high-yield oil palm varieties that deliver over 30 tonnes of fresh fruit bunches per hectare—nearly double the national average of 15.5 to 16.7 tonnes recorded between 2020 and 2023. These next-generation hybrids not only promise greater productivity but also exhibit slower vertical growth, extending plantation lifecycles and improving labor efficiency. While still in development, climate-resilient strains with drought tolerance are also on the research horizon, offering future-proof options for regions grappling with erratic rainfall.
Malaysia’s palm oil innovation ecosystem is aligning with India’s strategic cultivation goals, presenting opportunities for structured seed diplomacy. As India scales its oil palm landscape, the challenge ahead lies in formalizing the seed supply chain, embedding quality assurance mechanisms, and translating varietal potential into farmer profitability. For now, India’s role as the top buyer of Malaysian oil palm seeds signals more than just a trade statistic—it reflects a maturing bilateral value chain poised for long-term impact. Agro Spectrum India
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Malaysia moves to secure low-risk status under EU deforestation rules
KUALA LUMPUR: Malaysia is rolling out coordinated strategies to secure its status as a low-risk country under the EU's deforestation rules, with efforts spanning forest monitoring, regulatory compliance, and sustainable land management.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said one of the key strategies is coordinating the implementation of the EU Deforestation Regulation (EUDR) across multiple ministries and agencies.
These include forest data management, enforcement and sustainable forest governance, he said.
The European Union has unveiled the "country benchmarking system" under the EUDR.
It will divide countries into one of three tiers: "low", "standard" or "high" risk, with escalating due diligence and compliance obligations aimed at minimising EU's contributions to global deforestation and forest degradation.
It requires seven commodities and their derivatives — cattle, cocoa, coffee, palm oil, rubber, soyabean and wood — entering the EU market to be deforestation-free, legally produced and covered by a due diligence statement.
Johari (BN–Titiwangsa) said that his ministry is also working to ensure that Malaysia's agri-commodity products exported to the EU meet EUDR requirements through the adoption of sustainable certification schemes such as the Malaysian Sustainable Palm Oil Certification Scheme, the Malaysian Timber Certification Scheme, and the Malaysian Sustainable Natural Rubber Guidelines.
"Relevant issues that may affect the accuracy of Malaysia's latest forest data submitted for the Global Forest Resources Assessment report to the Food and Agriculture Organisation, which is used in the EUDR risk classification process, are also discussed," he said in a written parliamentary reply.
Johari also said recommendations would be submitted to the government regarding compliance measures that need to be implemented by the relevant ministries and agencies.
"These strategies reflect our proactive efforts to ensure Malaysia is classified as a low-risk country and demonstrate the Ministry's commitment to keeping the country's agri-commodity products competitive in the EU market," he said. New Straits Times
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Can palm oil go net zero? Inside the push to cut climate impact
The world’s most widely used vegetable oil is at the heart of a decades-long battle between economic development and environmental damage. More can be done.
Palm oil is one of the most ubiquitous substances in the goods we consume, found in everything from chocolate to cosmetics. It’s in nearly 50% of the packaged products we see in supermarkets, and it’s also used in animal feed and as a biofuel in many parts of the world.
The reason is that it’s an extremely versatile oil with numerous properties and functions. It is semi-solid at room temperature, making it suitable for use in food, and it’s resistant to oxidation, which can extend the shelf life of products. It’s also odourless and colourless, so it doesn’t alter the look or smell of food products. It would therefore be very difficult to replace with another ingredient.
But palm oil has long been linked to deforestation, fires and greenhouse gas emissions. The forest loss, together with the conversion of carbon-rich peat soils, has caused millions of tonnes of greenhouse gases to escape into the atmosphere.
Still, could there be a way to reap the benefits of palm oil without contributing to climate change?
Today, producing countries, major brands, and local farmers are betting that new technology and rules can rewrite that story - and even push palm oil toward net-zero emissions.
The biggest challenge is stopping indirect land use change (ILUC), the hidden climate cost when forests are cleared elsewhere to make room for crops that have been displaced by palm oil cultivation. For Indonesia and Malaysia, the two biggest producers of palm oil, these efforts have been particularly important.
“In Malaysia, palm oil is produced in accordance with sustainable principles and criteria under the Malaysian Sustainable Palm Oil (MSPO) certification scheme, which has been implemented on a mandatory basis from January 2020,” says Dr. Ahmad Parveez Ghulam Kadir, Director-General of the Malaysian Palm Oil Board. “The MPSO certification has a deforestation cut-off date of 31 December 2019, which strengthened the requirements for new planting.”
Satellite eyes in the sky
Over the past two decades, pressure from consumers and regulators has motivated palm oil giants to clean up their supply chains. At the heart of this effort is traceability - proving exactly where each tonne of palm oil comes from.
Multinational companies like Unilever, Ferrero, Nestlé, and Kao now monitor vast plantations with high-resolution satellite imagery and AI detection tools. Ferrero, for example, has tracked 100% of its palm oil to the plantation level since 2016 and uses Starling satellite monitoring to flag forest loss in real time. Unilever’s NDPE (No Deforestation, No Peat, No Exploitation) dashboard tracks 20 million hectares globally.
Meanwhile, producing countries are tightening the rules. Indonesia has launched its e-STDB traceability platform, which requires farmers and companies to register their palm plantations on a national blockchain-based database.
Malaysia is developing the National Oil Palm Traceability System, to establish full traceability across the supply chain. “This system is anchored by the Sawit Intelligent Management System (SIMS) for traceability data and will be integrated with GeoSawit and e-MSPO, two important platforms that support geospatial mapping and sustainability certification, respectively,” says Ahmad Parveez.
He said, “The integrated approach enables the tracking of the origin of palm products along the supply chain from the plantation and smallholders. The traceability system is crucial in the context of sustainability and climate commitments, including monitoring, management and reporting of emissions, among others.”
These advances are being supercharged by technology.
New satellite monitoring systems - like Earthqualizer, Palmoil.io, and Global Forest Watch - use AI to spot illegal land clearing, even under cloud cover. This surveillance is giving companies and governments near real-time alerts when new plantations appear on high-carbon peatlands or primary forests.
Changes on the ground
Palm oil emissions don’t just come from clearing forests, but also from methane leaking from palm oil mills.
Malaysia’s Sustainable Palm Oil Roadmap encourages mills to capture methane and turn it into biogas, cutting emissions by nearly 40% per tonne of crude palm oil, according to a 2023 industry report.
Meanwhile, projects like PALMSTEP in Central Kalimantan, funded by the European Union, help smallholder farmers get certified and access digital tools for traceability and regenerative farming, reducing the pressure to expand into forests.
Palm oil mills emit methane from wastewater and CO₂ from energy use. Methane-capture biogas systems, together with switching to renewable energy, can reduce mill CO₂e intensity by around 40%, according to experts. Energy-efficient mills coupled with zero-burning policies can also help combat both direct emissions and ILUC pressures.
“The cooperation among countries in Southeast Asia has continued to ensure conservation of forest and biodiversity as well as reduce impact on the environment and contribute to climate action,” says Parveez.
“One of the examples is the Heart of Borneo, a trilateral cooperation between Brunei, Indonesia and Malaysia covering an area of over 20 million hectares that help to strengthen the world’s resilience to climate change by conserving carbon sinks and creating a huge green lung for the world, and at the same time protecting the livelihoods of the forest dependent communities.”
He noted that in addition, Malaysia has the Central Forest Spine initiative that covers 5.3 million hectares in Peninsular Malaysia as part of the conservation efforts at the national level.
Is it working? More at Euractiv
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Small-scale Farmers and the Sustainability Imperative in Palm Oil
Small-scale farmers are key to sustainable palm oil, but without support to meet rising standards, they risk exclusion from global supply chains.
In global commodity value chains, small-scale farmers play a critical role. They contribute around 35 percent of the global food production and account for 84 percent of the total farms worldwide. Small-scale farmers are responsible for producing 70 percent of the food being consumed in low- and middle-income countries. Nonetheless, they do not dominate the sustainability story. Instead, they are on the margins, struggling to cope with the impacts of climate change due to lack of access to information, training, and markets, which hinders their ability to improve productivity, build climate resilience, and enhance the quality of livelihoods.
Sustainability initiatives have ignored and even failed to recognise small-scale farmers. This is despite small-scale farms being traditionally known to practice polyculture (as against monoculture by big industrial plantations) and protect biodiversity. A relatively easy indicator would be the number of small-scale farmers certified against a sustainability standard. Nearly 2 percent of small-scale farmers in low-income countries are certified.
Furthermore, with consumer markets in the United States (US), Europe—and with early trends visible in Asia as well—moving towards sustainable, deforestation-free produce, small-scale farmers are uniquely positioned to cater to this shift. For instance, in palm oil production, studies have shown that as zero-deforestation commitments by companies and moratorium on large-scale palm plantations in Indonesia continue, the area and production under small-scale farms will increase.
While the demand for sustainable palm is expected to grow each year, large-scale plantations alone will not be able to fulfil it. Sustainable palm—which is compliant with a sustainability standard—accounts for only 17 percent of the overall production. The segment that needs to be included and mainstreamed to improve the share of sustainable palm globally is the small-scale farmers.
Small Farmers, Big Stakes: Where Do They Stand?
Palm oil accounts for 40 percent of the vegetable oil traded globally. It is almost ubiquitous: it can be found in instant noodles, ice creams, chocolates, cookies, packaged bread and more. Roughly 7 million small-scale palm oil farmers are responsible for 25-30 percent of the total palm oil supply.
In Indonesia, which is the largest producer of palm oil globally, nearly 35 percent of the crude palm oil comes from small-scale farms. It is critical to poverty alleviation and corroborates why many small farmers have transitioned from growing rubber to palm in the past two decades. Simultaneously, the footprint of small-scale farmer-managed plantations in Indonesia has expanded from 1.6 million hectares in 2001 to 5.8 million hectares by 2018. In 2025, the crop serves as a source of livelihood for 2.6 million small-scale farmers. In both Malaysia and Indonesia, research indicates that small-scale farmers in palm have experienced notable improvements in living standards compared to the past generation.
While its role in securing livelihoods is established, the palm oil sector is increasingly facing pressure to demonstrate environmental and social responsibility—especially as concerns over deforestation, biodiversity loss, and labour rights violations have gained global traction. The European Union Deforestation Regulation (EUDR) is set to take effect at the end of 2025. Micro and small enterprises have received an extension until May 2026. The regulation aims to encourage the consumption of deforestation-free products while addressing deforestation caused by the expansion of agricultural land. In other words, companies supplying to the European Union (EU) will have to prove that their products don’t come from deforested land. Palm oil is one of the key commodities this legislation aims to cover.
Small-scale farmers are at the risk of exclusion by default. They are bound to find it difficult to meet the regulatory requirements effectively without adequate administrative and financial support. Globally, certification is becoming the determining factor for export-readiness on the producer’s end, especially in light of regulations demanding traceability. With only about 0.3 percent of the land managed by small-scale farmers certified against the Indonesian Sustainable Palm Oil (ISPO) standard, small-scale farmers growing palm are looking at an uncertain future.
Green Labels, Red Margins – The High Cost of Compliance
However, certification is not an easily attainable goal for small-scale farmers. First, it does not come cheap. For small-scale farmers operating on razor-thin margins, the costs of maintaining compliance—which include land legality verification, traceability audits, and better farm inputs—can eat up to 50 percent of their annual income. Second, incentives for certified palm oil often fail to trickle down to them. Intermediaries and processors capture most of the value. Small-scale farmers in the value chain remain price takers, with little negotiation power in a market dominated by mills and traders. Although certification promises better incomes, the reality is rather stark: for many, the math simply does not work. The Palm Oil Barometer 2025 notes that price incentives are inconsistent and rarely offset the cost of compliance. Without these, small-scale farmers bear the burden of sustainability certifications without receiving a share of the resulting benefits. ORF Online
July 21, 2025
Prabowo Reports to Jokowi After Sealing Landmark EU Trade Deal
Solo, Central Java. Indonesian President Prabowo Subianto paid a visit to his predecessor Joko “Jokowi” Widodo on Sunday to personally report a diplomatic milestone: the conclusion of a decade-long free trade negotiation with the European Union.
The meeting took place one week after Prabowo and European Commission President Ursula von der Leyen jointly announced in Brussels that the Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA) had finally been reached -- ten years after talks first began under Jokowi’s administration.
“I just returned from an overseas tour and updated Mr. Jokowi on several breakthroughs, especially the EU deal. After 10 years of negotiations, we’ve finally secured the agreement,” Prabowo said at Jokowi’s residence in Solo, Central Java.
The CEPA will eliminate EU import tariffs on approximately 80 percent of Indonesian goods, a major step in boosting Indonesia’s export competitiveness in Europe.
During his two-week diplomatic tour, Prabowo also attended the BRICS Summit in Brazil and held bilateral talks with Brazilian President Luiz Inácio Lula da Silva. He then traveled to Paris as guest of honor for France’s Bastille Day celebrations and held a phone call with US President Donald Trump. The United States agreed to reduce import tariffs on Indonesian products from 32 percent to 19 percent following the call. He also made a stop in Belarus before returning to Indonesia.
“Traveling the world can be exhausting, but personal diplomacy between leaders matters -- it builds trust,” Prabowo said. “We’re welcomed by all sides because we maintain neutrality, respect every nation, and avoid interfering in others’ domestic affairs.”
While in Solo, Prabowo also attended the national congress of the Indonesian Solidarity Party (PSI). Jakarta Globe
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Indonesia still negotiating details, exemptions on US tariff deal, official says
JAKARTA. — Indonesia is still negotiating details of its recently-reached trade deal with the United States after Washington lowered tariff rates on the Southeast Asian country, and is pursuing exemptions for its exports of palm oil and nickel, an official said on Friday.
The two countries reached a trade dealthis week that led to a reduction in the threatened US proposed tariff rate to 19 percent from 32 percent. The deal was one of only a handful reached so far by the Trump administration ahead of the August 1 negotiation deadline with numerous countries.
Susiwijono Moegiarso, a senior official at the country’s economic ministry, told reporters that the two sides were still negotiating the finer details of the agreement, adding that the 19 percent rate will be imposed on top of existing sectoral tariffs.
Indonesia has asked the United States to exempt its exports of cocoa, rubber, crude palm oil, coffee and nickel from the levy, he said, adding that US technology products will also be exempted from Indonesia’s “local content” rules, which require companies to use locally-made components in its manufacturing.
Indonesia is the world’s biggest palm oil producer and the biggest supplier to the United States, accounting for 85 percent of its total imports in 2024. Malaya
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Negotiating Zero Percent Tariffs on Several Commodities: Indonesia and the US Could Both Benefit
Indonesia must position itself strategically by emphasizing the importance of Indonesia's leading commodities to the US.
JAKARTA, KOMPAS – Business actors have welcomed the ongoing negotiation efforts between the Government of Indonesia and the United States to reduce import tariffs on several key commodities from Indonesia. Low to zero percent tariffs are not only an advantage for Indonesia but also for the United States, which requires a stable and sustainable supply.
The plan for further negotiations was first conveyed by the Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, last week. He emphasized that although the reciprocal tariff for products originating from Indonesia has been agreed upon at 19 percent, negotiations between the Government of the Republic of Indonesia and the United States are still ongoing. Kompas
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Indonesia expects IEU-CEPA to be implemented soon: deputy minister
Indonesia hopes that the Indonesia-European Union Comprehensive Partnership Agreement (IEU-CEPA) will be ratified and implemented soon, according to Deputy Foreign Minister Arif Havas Oegroseno.
After attending a public discussion hosted by the Presidential Communications Office (PCO) here on Saturday (July 19), the deputy minister highlighted that IEU-CEPA needed nine years before it could finally be concluded.
"The next duty for our colleagues in government ministries is to draft the technical documents. We hope (the IEU-CEPA) can be ratified and implemented very soon," Oegroseno said.
He stated that the trade agreement will open trade access for the combined 840 million population of Indonesia and the European Union.
It will also expand market access for Indonesia-made products to economically developed European Union countries where they will enjoy zero percent import tariffs, he added.
The Foreign Ministry had earlier described the completion of the IEU-CEPA as a strategic achievement amid ongoing geopolitical volatility.
“As consensus reached on IEU-CEPA, it has become a momentum of strategic economic achievements for the two sides to expand market access amidst the increasingly complex geopolitical and geoeconomic dynamics,” Foreign Ministry spokesperson Rolliansyah Soemirat said in his written remarks on Monday (July 14).
US tariff
Meanwhile, responding to the 19-percent import tariff imposed by the United States on Indonesian-made products as reached in the recent bilateral trade deal, Oegroseno said that a tariff imposition cannot be viewed in a black-and-white way of thinking.
"The assessment must be detailed since we are talking about our balance sheets or the trade values for particular commodities," he said.
The deputy minister also said that most of the products consumed by Indonesians are not produced in the United States but in other countries such as China. Antara
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Trump says BRICS would end quickly if they ever form in a meaningful way
WASHINGTON, July 18 (Reuters) - U.S. President Donald Trump on Friday repeated his threat to slap a 10% tariff on imports from members of the BRICS group of developing nations and said the group would end very quickly if they ever formed in a meaningful way.
"When I heard about this group from BRICS, six countries, basically, I hit them very, very hard. And if they ever really form in a meaningful way, it will end very quickly," Trump said without naming the countries. "We can never let anyone play games with us."
Trump also said he was committed to preserving the dollar's global status as a reserve currency and pledged to never allow the creation of a central bank digital currency in America.
Trump announced the new tariff on July 6, saying it would apply to any countries aligning themselves with what he called the "Anti-American policies" of the BRICS group.
With forums such as the G7 and G20 groups of major economies hamstrung by divisions and the disruptive "America First" approach of the U.S. president, the BRICS group is presenting itself as a haven for multilateral diplomacy.
Since issuing the threat, Trump has repeatedly claimed without evidence that the group was set up to hurt the United States and the dollar's role as the world's reserve currency. Reuters
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Indonesia not taking anti-West stance after joining BRICS: Deputy FM
Jakarta (ANTARA) - Deputy Foreign Minister Arif Havas Oegroseno emphasized that Indonesia is not taking an anti-West stance after joining BRICS, an economic cooperation group consisting of 10 countries, including India, Iran, Russia, and China.
He made the statement during the event “Double Check: President Prabowo’s Gains from Visiting the International World", organized by the Presidential Communication Office here on Saturday (July 19).
Oegroseno explained that India, one of the founding members of BRICS, sent its foreign minister to attend the inauguration of Donald Trump as President of the United States. India is also a member of the Quad, alongside Japan, Australia, and the US.
Therefore, he emphasized that Indonesia is not anti-West, as it maintains good relations with India, including through BRICS.
He underlined that Indonesia has gained positive benefits by joining BRICS, especially regarding fair and sustainable vegetable oil standards.
“With BRICS, we can engage in discussions about new (vegetable oil) standards, because when we talk about sustainability, it comes down to standards. Europe has its own standards, and we have ours,” Oegroseno said.
He also noted that BRICS recently held a meeting of countries producing critical raw minerals.
According to him, all of these mineral-producing countries are developing nations that generally lack the capacity to fully benefit from their resources without foreign investment.
During the meeting, he said, many participants asked Indonesia about its downstreaming policy and how the country balances economic gains with social and environmental responsibilities.
“This was a new kind of meeting, and we hope that in the coming years it will evolve into a new kind of grouping,” he added. Antara News
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Can Indonesia stay non-aligned while joining BRICS?
Bloc membership could enhance Indonesia’s standing as a principled neutral actor or erode it by tilting closer to China and Russia
When Indonesia joined this year’s BRICS Summit as a full member in Rio de Janeiro, it was stepping into a long-anticipated role. The Southeast Asian nation has long aspired to be more than a leading regional actor; it seeks to be a global leader, and BRICS membership offered the symbolism of arrival.
President Prabowo Subianto leveraged the moment to call for a revitalized multilateral order, greater South–South cooperation and fairer global governance. He invoked the spirit of Bandung — the 1955 conference Indonesia famously convened to unite newly independent nations under the banner of peace, solidarity and nonalignment.
But for all the talk of balance, Indonesia’s BRICS debut also raised fresh concerns about tilt as questions arise about whether Prabowo’s Indonesia is drifting into China and Russia’s orbit and away from the West.
The evidence is not conclusive, but the optics are striking. In one of his first diplomatic moves after winning the presidency, Prabowo flew to Beijing — even before formally taking office. He later signed a joint statement with China, which many in the region saw as overly conciliatory, particularly regarding the South China Sea, where the two nations have overlapping claims.
Meanwhile, at the St Petersburg International Economic Forum, Prabowo praised China and Russia as countries “without double standards,” raising eyebrows given both countries’ questionable records on sovereignty, repression and international norms. His absence from the G7 summit only deepened the perception of lean.
Indonesia has good reasons to challenge the dominance of Western institutions. Western powers have long wielded influence in ways that often ignore or exploit the interests of the Global South. The failures are real — from broken climate finance promises, to selective outrage over territorial violations, to a rules-based order applied unequally. Indonesia is right to demand reform.
But opposing Western hypocrisy should not mean excusing the same behaviors when they come from elsewhere.
This is the core danger of being seen as part of an “anti-Western axis”: it casts foreign policy not as a principled stand, but as an act of alignment — the very thing Indonesia’s bebas aktif doctrine was designed to avoid.
That doctrine, which has guided Indonesia since the Cold War, rests on two pillars: independence and active engagement. It allowed Indonesia to work with all sides without serving any. It’s what gave Jakarta the credibility to lead the Non-Aligned Movement and host the Bandung Conference. And it remains one of Indonesia’s most strategic diplomatic assets.
But independence is not neutrality. And active engagement means speaking up, especially when it’s inconvenient.
Indonesia’s foreign policy cannot succeed if it avoids difficult conversations. Jakarta must be willing to call out abuses of power wherever they occur: in the West, yes, but also in China, Russia and other BRICS members. Remaining silent on Russia’s invasion of Ukraine or downplaying China’s human rights violations in Xinjiang doesn’t look like independent diplomacy. It looks like avoidance.
Indonesia’s power lies in its ability to serve as a bridge — between the developed and developing world, between major powers and emerging ones. But bridges require trust. And trust comes from consistency.
Right now, that consistency is in question. If Indonesia speaks forcefully against Western double standards but not against the violations of its new BRICS partners, it risks being seen as selective rather than principled.
Indonesia should engage the West and the non-West. It should deepen cooperation with China and maintain strong ties with the US, Europe and Japan. It should continue playing an active role in ASEAN and take full advantage of its BRICS membership to promote reform of global governance.
But with every new partnership comes a harder obligation: the obligation to hold partners accountable. This is especially critical as BRICS – now expanded to include Brazil, Russia, India, China, South Africa, Egypt, Iran, the UAE and Indonesia, thus representing more than half the world’s population – itself evolves. Dr. Muhammad Zulfikar Rakhmat/ Asia Times
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Confiscated oil palm land in Indonesia transferred to Agrinas for green energy production
July 20, 2025 | Juan Pedro Tomas
In Indonesia, Indonesia Business Post reported that Indonesian state-owned palm oil company PT Agrinas Palma Nusantara has targeted the confiscated land it manages to produce at least 25 tons per hectare of palm oil per year, with a focus in the production of biofuels.
Agrinas manages oil palm land, which had been confiscated by the Attorney General’s Office (AGO) as evidence from the investigation into a corruption case involving oil palm plantation of PT Duta Palma Group. The oil palm plantation was handed over by the AGO to the Ministry of State-Owned Enterprises (SOEs) to be managed by Agrinas Palma Nusantara.
It is still uncertain if the management of the confiscated land will be carried out entirely by Agrinas or whether there will be cooperation with other parties, such as State-owned plantation company PT Perkebunan Nusantara IV, according to the report. Biofuels Digest
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IATA Chief talks about tariff uncertainties, EU’s sustainable aviation fuel and low cost carrier model
The director-general of the International Air Transport Association (IATA), Willie Walsh, was in Singapore recently where he talked about strategic and significant issues facing the aviation industry. These include the uncertainties surrounding the impending U.S tariffs and the viability of low cost carrier models upon the exit of Qantas’ owned Jetstar. He also heavily criticised the EU’s sustainable aviation fuel (SAF).
U.S. tariffs may cause airlines to refuse delivery of aircraft
Airlines may be reluctant to take delivery of aircraft due to the ongoing uncertainty around U.S. tariffs and their impact on the cost of the planes, Walsh said, as reported by Reuters.
“It’s not just going to be a major Boeing and Airbus issue. It’ll impact all aspects of the aerospace industry and have an impact on most, if not all, airlines as well,” he said.
The 50% tariff that U.S. President Donald Trump plans to impose on Brazilian exports starting in August could hammer the revenue of planemaker Embraer like the COVID-19 pandemic did, its CEO Francisco Gomes Neto, warned last week, flagging risks to U.S. partners.
Neto said the tariffs would amount to a trade embargo on the regional jets it supplies to U.S. airlines and could trigger order cancellations, deferred deliveries and tough consequences for Embraer’s U.S. suppliers.
EU’s green fuel mandate costly, not helping environment
IATA also stepped up criticism of the European Union’s sustainable aviation fuel (SAF) mandate as a costly initiative that is not helping the environment as regional supplies there remain low.
“The idea that you’re buying sustainable fuel and then transporting it to use in Europe isn’t the right way to do it, because you’re clearly increasing the carbon footprint of that fuel as a result of the transportation costs,” Walsh said.
IATA estimated in June that production of SAF, which is considered a low carbon replacement for traditional jet fuel is expected to reach two million tonnes, or 0.7 per cent of airlines’ fuel consumption, in 2025.
“Mandating the use of a product that isn’t available doesn’t lead to any environmental benefit,” Walsh said, adding that fuel companies that have an obligation to produce SAF are also increasing the cost of traditional jet fuel.
By IATA’s assessment, he said “the cost that they’re charging is way in excess of the actual cost of the limited supplies of sustainable fuel”.
“The EU in effect has facilitated monopoly suppliers to increase prices with no environmental benefit,” said Walsh, adding that the region needs to re-evaluate its SAF targets.
Under the ReFuelEU Aviation requirement, airlines need to have a six per cent SAF blend in their jet fuel usage by 2030. The EU is offering some subsidies for SAF purchases by airlines, Reuters reported in June.
On the supply front, at least five SAF projects in Asia, outside of China, have started up or are earmarked to start production in 2025, targeting exports regionally and to Europe. Singapore is among key exporters of the green fuel to the EU.
Walsh also questioned the use of palm oil as a means to produce sustainable fuel.
“I think that you could argue there is sustainable palm oil and there is palm oil that wouldn’t be considered sustainable, and I think in some parts of the world there it’s too black and white,” Walsh said.
We need to have a much more “nuanced approach” to the usage of palm oil as a feedstock and “much re detailed assessment of the sustainability of the feedstock”, he added. FTN News
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Malaysia Sees Surge In Palm Oil Seed Exports To India
Malaysia sees rising demand from India for its germinated oil palm seeds as New Delhi accelerates efforts to expand domestic palm oil production under its National Mission on Edible Oils–Oil Palm (NMEO-OP), the Malaysian Palm Oil Board (MPOB) said.
India imported 3.03 million tonne of palm oil from Malaysia in 2024, accounting for 17.9 per cent of Malaysia’s total palm oil exports, making it the largest market for the commodity. The country is now also the top destination for Malaysian oil palm seeds, a development MPOB Director General Ahmad Parveez Ghulam Kadir told news agency PTI, which reflects “confidence in the quality of our seeds and our longstanding partnership with India.”
New Delhi aims to increase palm oil cultivation to 1 million hectares by 2025–26 and produce nearly 2.8 million tonne of crude palm oil domestically by 2029–30. As of mid-2025, about 370,000 hectares are already under cultivation, with northeastern states and island territories emerging as key growing regions.
The surge in demand for Malaysian seeds comes as Malaysia’s overall palm oil exports to India moderate following a tariff cut on crude palm oil imports by New Delhi. Despite this, Malaysia is working to strengthen its presence in India’s food manufacturing and hospitality sectors, where demand for palm oil remains robust.
To support this, Malaysia is promoting sustainably certified palm oil under the Malaysian Sustainable Palm Oil (MSPO) standard and enhancing productivity through research and development. Kadir told PTI that the MPOB has developed high-yield palm varieties through selective breeding capable of producing over 30 tonne of fresh fruit bunches (FFB) per hectare annually. This is nearly double Malaysia’s national average yield of 15.47 to 16.73 tonne per hectare recorded between 2020 and 2023.
These new varieties also grow more slowly in height, extending their economic lifespan beyond the typical 25 years to over 30 years and making harvesting easier. Research is also underway on climate-resilient strains with improved drought tolerance, although no such varieties have yet been released commercially, Kadir added.
The developments underline how Malaysia’s seed exports and technology are becoming integral to India’s efforts to reduce reliance on imported edible oils, even as bilateral trade ties adapt to shifting tariff regimes. Business World
Prabowo Reports to Jokowi After Sealing Landmark EU Trade Deal
Solo, Central Java. Indonesian President Prabowo Subianto paid a visit to his predecessor Joko “Jokowi” Widodo on Sunday to personally report a diplomatic milestone: the conclusion of a decade-long free trade negotiation with the European Union.
The meeting took place one week after Prabowo and European Commission President Ursula von der Leyen jointly announced in Brussels that the Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA) had finally been reached -- ten years after talks first began under Jokowi’s administration.
“I just returned from an overseas tour and updated Mr. Jokowi on several breakthroughs, especially the EU deal. After 10 years of negotiations, we’ve finally secured the agreement,” Prabowo said at Jokowi’s residence in Solo, Central Java.
The CEPA will eliminate EU import tariffs on approximately 80 percent of Indonesian goods, a major step in boosting Indonesia’s export competitiveness in Europe.
During his two-week diplomatic tour, Prabowo also attended the BRICS Summit in Brazil and held bilateral talks with Brazilian President Luiz Inácio Lula da Silva. He then traveled to Paris as guest of honor for France’s Bastille Day celebrations and held a phone call with US President Donald Trump. The United States agreed to reduce import tariffs on Indonesian products from 32 percent to 19 percent following the call. He also made a stop in Belarus before returning to Indonesia.
“Traveling the world can be exhausting, but personal diplomacy between leaders matters -- it builds trust,” Prabowo said. “We’re welcomed by all sides because we maintain neutrality, respect every nation, and avoid interfering in others’ domestic affairs.”
While in Solo, Prabowo also attended the national congress of the Indonesian Solidarity Party (PSI). Jakarta Globe
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Indonesia still negotiating details, exemptions on US tariff deal, official says
JAKARTA. — Indonesia is still negotiating details of its recently-reached trade deal with the United States after Washington lowered tariff rates on the Southeast Asian country, and is pursuing exemptions for its exports of palm oil and nickel, an official said on Friday.
The two countries reached a trade dealthis week that led to a reduction in the threatened US proposed tariff rate to 19 percent from 32 percent. The deal was one of only a handful reached so far by the Trump administration ahead of the August 1 negotiation deadline with numerous countries.
Susiwijono Moegiarso, a senior official at the country’s economic ministry, told reporters that the two sides were still negotiating the finer details of the agreement, adding that the 19 percent rate will be imposed on top of existing sectoral tariffs.
Indonesia has asked the United States to exempt its exports of cocoa, rubber, crude palm oil, coffee and nickel from the levy, he said, adding that US technology products will also be exempted from Indonesia’s “local content” rules, which require companies to use locally-made components in its manufacturing.
Indonesia is the world’s biggest palm oil producer and the biggest supplier to the United States, accounting for 85 percent of its total imports in 2024. Malaya
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Negotiating Zero Percent Tariffs on Several Commodities: Indonesia and the US Could Both Benefit
Indonesia must position itself strategically by emphasizing the importance of Indonesia's leading commodities to the US.
JAKARTA, KOMPAS – Business actors have welcomed the ongoing negotiation efforts between the Government of Indonesia and the United States to reduce import tariffs on several key commodities from Indonesia. Low to zero percent tariffs are not only an advantage for Indonesia but also for the United States, which requires a stable and sustainable supply.
The plan for further negotiations was first conveyed by the Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, last week. He emphasized that although the reciprocal tariff for products originating from Indonesia has been agreed upon at 19 percent, negotiations between the Government of the Republic of Indonesia and the United States are still ongoing. Kompas
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Indonesia expects IEU-CEPA to be implemented soon: deputy minister
Indonesia hopes that the Indonesia-European Union Comprehensive Partnership Agreement (IEU-CEPA) will be ratified and implemented soon, according to Deputy Foreign Minister Arif Havas Oegroseno.
After attending a public discussion hosted by the Presidential Communications Office (PCO) here on Saturday (July 19), the deputy minister highlighted that IEU-CEPA needed nine years before it could finally be concluded.
"The next duty for our colleagues in government ministries is to draft the technical documents. We hope (the IEU-CEPA) can be ratified and implemented very soon," Oegroseno said.
He stated that the trade agreement will open trade access for the combined 840 million population of Indonesia and the European Union.
It will also expand market access for Indonesia-made products to economically developed European Union countries where they will enjoy zero percent import tariffs, he added.
The Foreign Ministry had earlier described the completion of the IEU-CEPA as a strategic achievement amid ongoing geopolitical volatility.
“As consensus reached on IEU-CEPA, it has become a momentum of strategic economic achievements for the two sides to expand market access amidst the increasingly complex geopolitical and geoeconomic dynamics,” Foreign Ministry spokesperson Rolliansyah Soemirat said in his written remarks on Monday (July 14).
US tariff
Meanwhile, responding to the 19-percent import tariff imposed by the United States on Indonesian-made products as reached in the recent bilateral trade deal, Oegroseno said that a tariff imposition cannot be viewed in a black-and-white way of thinking.
"The assessment must be detailed since we are talking about our balance sheets or the trade values for particular commodities," he said.
The deputy minister also said that most of the products consumed by Indonesians are not produced in the United States but in other countries such as China. Antara
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Trump says BRICS would end quickly if they ever form in a meaningful way
WASHINGTON, July 18 (Reuters) - U.S. President Donald Trump on Friday repeated his threat to slap a 10% tariff on imports from members of the BRICS group of developing nations and said the group would end very quickly if they ever formed in a meaningful way.
"When I heard about this group from BRICS, six countries, basically, I hit them very, very hard. And if they ever really form in a meaningful way, it will end very quickly," Trump said without naming the countries. "We can never let anyone play games with us."
Trump also said he was committed to preserving the dollar's global status as a reserve currency and pledged to never allow the creation of a central bank digital currency in America.
Trump announced the new tariff on July 6, saying it would apply to any countries aligning themselves with what he called the "Anti-American policies" of the BRICS group.
With forums such as the G7 and G20 groups of major economies hamstrung by divisions and the disruptive "America First" approach of the U.S. president, the BRICS group is presenting itself as a haven for multilateral diplomacy.
Since issuing the threat, Trump has repeatedly claimed without evidence that the group was set up to hurt the United States and the dollar's role as the world's reserve currency. Reuters
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Indonesia not taking anti-West stance after joining BRICS: Deputy FM
Jakarta (ANTARA) - Deputy Foreign Minister Arif Havas Oegroseno emphasized that Indonesia is not taking an anti-West stance after joining BRICS, an economic cooperation group consisting of 10 countries, including India, Iran, Russia, and China.
He made the statement during the event “Double Check: President Prabowo’s Gains from Visiting the International World", organized by the Presidential Communication Office here on Saturday (July 19).
Oegroseno explained that India, one of the founding members of BRICS, sent its foreign minister to attend the inauguration of Donald Trump as President of the United States. India is also a member of the Quad, alongside Japan, Australia, and the US.
Therefore, he emphasized that Indonesia is not anti-West, as it maintains good relations with India, including through BRICS.
He underlined that Indonesia has gained positive benefits by joining BRICS, especially regarding fair and sustainable vegetable oil standards.
“With BRICS, we can engage in discussions about new (vegetable oil) standards, because when we talk about sustainability, it comes down to standards. Europe has its own standards, and we have ours,” Oegroseno said.
He also noted that BRICS recently held a meeting of countries producing critical raw minerals.
According to him, all of these mineral-producing countries are developing nations that generally lack the capacity to fully benefit from their resources without foreign investment.
During the meeting, he said, many participants asked Indonesia about its downstreaming policy and how the country balances economic gains with social and environmental responsibilities.
“This was a new kind of meeting, and we hope that in the coming years it will evolve into a new kind of grouping,” he added. Antara News
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Can Indonesia stay non-aligned while joining BRICS?
Bloc membership could enhance Indonesia’s standing as a principled neutral actor or erode it by tilting closer to China and Russia
When Indonesia joined this year’s BRICS Summit as a full member in Rio de Janeiro, it was stepping into a long-anticipated role. The Southeast Asian nation has long aspired to be more than a leading regional actor; it seeks to be a global leader, and BRICS membership offered the symbolism of arrival.
President Prabowo Subianto leveraged the moment to call for a revitalized multilateral order, greater South–South cooperation and fairer global governance. He invoked the spirit of Bandung — the 1955 conference Indonesia famously convened to unite newly independent nations under the banner of peace, solidarity and nonalignment.
But for all the talk of balance, Indonesia’s BRICS debut also raised fresh concerns about tilt as questions arise about whether Prabowo’s Indonesia is drifting into China and Russia’s orbit and away from the West.
The evidence is not conclusive, but the optics are striking. In one of his first diplomatic moves after winning the presidency, Prabowo flew to Beijing — even before formally taking office. He later signed a joint statement with China, which many in the region saw as overly conciliatory, particularly regarding the South China Sea, where the two nations have overlapping claims.
Meanwhile, at the St Petersburg International Economic Forum, Prabowo praised China and Russia as countries “without double standards,” raising eyebrows given both countries’ questionable records on sovereignty, repression and international norms. His absence from the G7 summit only deepened the perception of lean.
Indonesia has good reasons to challenge the dominance of Western institutions. Western powers have long wielded influence in ways that often ignore or exploit the interests of the Global South. The failures are real — from broken climate finance promises, to selective outrage over territorial violations, to a rules-based order applied unequally. Indonesia is right to demand reform.
But opposing Western hypocrisy should not mean excusing the same behaviors when they come from elsewhere.
This is the core danger of being seen as part of an “anti-Western axis”: it casts foreign policy not as a principled stand, but as an act of alignment — the very thing Indonesia’s bebas aktif doctrine was designed to avoid.
That doctrine, which has guided Indonesia since the Cold War, rests on two pillars: independence and active engagement. It allowed Indonesia to work with all sides without serving any. It’s what gave Jakarta the credibility to lead the Non-Aligned Movement and host the Bandung Conference. And it remains one of Indonesia’s most strategic diplomatic assets.
But independence is not neutrality. And active engagement means speaking up, especially when it’s inconvenient.
Indonesia’s foreign policy cannot succeed if it avoids difficult conversations. Jakarta must be willing to call out abuses of power wherever they occur: in the West, yes, but also in China, Russia and other BRICS members. Remaining silent on Russia’s invasion of Ukraine or downplaying China’s human rights violations in Xinjiang doesn’t look like independent diplomacy. It looks like avoidance.
Indonesia’s power lies in its ability to serve as a bridge — between the developed and developing world, between major powers and emerging ones. But bridges require trust. And trust comes from consistency.
Right now, that consistency is in question. If Indonesia speaks forcefully against Western double standards but not against the violations of its new BRICS partners, it risks being seen as selective rather than principled.
Indonesia should engage the West and the non-West. It should deepen cooperation with China and maintain strong ties with the US, Europe and Japan. It should continue playing an active role in ASEAN and take full advantage of its BRICS membership to promote reform of global governance.
But with every new partnership comes a harder obligation: the obligation to hold partners accountable. This is especially critical as BRICS – now expanded to include Brazil, Russia, India, China, South Africa, Egypt, Iran, the UAE and Indonesia, thus representing more than half the world’s population – itself evolves. Dr. Muhammad Zulfikar Rakhmat/ Asia Times
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Confiscated oil palm land in Indonesia transferred to Agrinas for green energy production
July 20, 2025 | Juan Pedro Tomas
In Indonesia, Indonesia Business Post reported that Indonesian state-owned palm oil company PT Agrinas Palma Nusantara has targeted the confiscated land it manages to produce at least 25 tons per hectare of palm oil per year, with a focus in the production of biofuels.
Agrinas manages oil palm land, which had been confiscated by the Attorney General’s Office (AGO) as evidence from the investigation into a corruption case involving oil palm plantation of PT Duta Palma Group. The oil palm plantation was handed over by the AGO to the Ministry of State-Owned Enterprises (SOEs) to be managed by Agrinas Palma Nusantara.
It is still uncertain if the management of the confiscated land will be carried out entirely by Agrinas or whether there will be cooperation with other parties, such as State-owned plantation company PT Perkebunan Nusantara IV, according to the report. Biofuels Digest
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IATA Chief talks about tariff uncertainties, EU’s sustainable aviation fuel and low cost carrier model
The director-general of the International Air Transport Association (IATA), Willie Walsh, was in Singapore recently where he talked about strategic and significant issues facing the aviation industry. These include the uncertainties surrounding the impending U.S tariffs and the viability of low cost carrier models upon the exit of Qantas’ owned Jetstar. He also heavily criticised the EU’s sustainable aviation fuel (SAF).
U.S. tariffs may cause airlines to refuse delivery of aircraft
Airlines may be reluctant to take delivery of aircraft due to the ongoing uncertainty around U.S. tariffs and their impact on the cost of the planes, Walsh said, as reported by Reuters.
“It’s not just going to be a major Boeing and Airbus issue. It’ll impact all aspects of the aerospace industry and have an impact on most, if not all, airlines as well,” he said.
The 50% tariff that U.S. President Donald Trump plans to impose on Brazilian exports starting in August could hammer the revenue of planemaker Embraer like the COVID-19 pandemic did, its CEO Francisco Gomes Neto, warned last week, flagging risks to U.S. partners.
Neto said the tariffs would amount to a trade embargo on the regional jets it supplies to U.S. airlines and could trigger order cancellations, deferred deliveries and tough consequences for Embraer’s U.S. suppliers.
EU’s green fuel mandate costly, not helping environment
IATA also stepped up criticism of the European Union’s sustainable aviation fuel (SAF) mandate as a costly initiative that is not helping the environment as regional supplies there remain low.
“The idea that you’re buying sustainable fuel and then transporting it to use in Europe isn’t the right way to do it, because you’re clearly increasing the carbon footprint of that fuel as a result of the transportation costs,” Walsh said.
IATA estimated in June that production of SAF, which is considered a low carbon replacement for traditional jet fuel is expected to reach two million tonnes, or 0.7 per cent of airlines’ fuel consumption, in 2025.
“Mandating the use of a product that isn’t available doesn’t lead to any environmental benefit,” Walsh said, adding that fuel companies that have an obligation to produce SAF are also increasing the cost of traditional jet fuel.
By IATA’s assessment, he said “the cost that they’re charging is way in excess of the actual cost of the limited supplies of sustainable fuel”.
“The EU in effect has facilitated monopoly suppliers to increase prices with no environmental benefit,” said Walsh, adding that the region needs to re-evaluate its SAF targets.
Under the ReFuelEU Aviation requirement, airlines need to have a six per cent SAF blend in their jet fuel usage by 2030. The EU is offering some subsidies for SAF purchases by airlines, Reuters reported in June.
On the supply front, at least five SAF projects in Asia, outside of China, have started up or are earmarked to start production in 2025, targeting exports regionally and to Europe. Singapore is among key exporters of the green fuel to the EU.
Walsh also questioned the use of palm oil as a means to produce sustainable fuel.
“I think that you could argue there is sustainable palm oil and there is palm oil that wouldn’t be considered sustainable, and I think in some parts of the world there it’s too black and white,” Walsh said.
We need to have a much more “nuanced approach” to the usage of palm oil as a feedstock and “much re detailed assessment of the sustainability of the feedstock”, he added. FTN News
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Malaysia Sees Surge In Palm Oil Seed Exports To India
Malaysia sees rising demand from India for its germinated oil palm seeds as New Delhi accelerates efforts to expand domestic palm oil production under its National Mission on Edible Oils–Oil Palm (NMEO-OP), the Malaysian Palm Oil Board (MPOB) said.
India imported 3.03 million tonne of palm oil from Malaysia in 2024, accounting for 17.9 per cent of Malaysia’s total palm oil exports, making it the largest market for the commodity. The country is now also the top destination for Malaysian oil palm seeds, a development MPOB Director General Ahmad Parveez Ghulam Kadir told news agency PTI, which reflects “confidence in the quality of our seeds and our longstanding partnership with India.”
New Delhi aims to increase palm oil cultivation to 1 million hectares by 2025–26 and produce nearly 2.8 million tonne of crude palm oil domestically by 2029–30. As of mid-2025, about 370,000 hectares are already under cultivation, with northeastern states and island territories emerging as key growing regions.
The surge in demand for Malaysian seeds comes as Malaysia’s overall palm oil exports to India moderate following a tariff cut on crude palm oil imports by New Delhi. Despite this, Malaysia is working to strengthen its presence in India’s food manufacturing and hospitality sectors, where demand for palm oil remains robust.
To support this, Malaysia is promoting sustainably certified palm oil under the Malaysian Sustainable Palm Oil (MSPO) standard and enhancing productivity through research and development. Kadir told PTI that the MPOB has developed high-yield palm varieties through selective breeding capable of producing over 30 tonne of fresh fruit bunches (FFB) per hectare annually. This is nearly double Malaysia’s national average yield of 15.47 to 16.73 tonne per hectare recorded between 2020 and 2023.
These new varieties also grow more slowly in height, extending their economic lifespan beyond the typical 25 years to over 30 years and making harvesting easier. Research is also underway on climate-resilient strains with improved drought tolerance, although no such varieties have yet been released commercially, Kadir added.
The developments underline how Malaysia’s seed exports and technology are becoming integral to India’s efforts to reduce reliance on imported edible oils, even as bilateral trade ties adapt to shifting tariff regimes. Business World
July 20, 2025
Trump’s 19% Tariffs: How Should We (Indonesia) Respond?
Iman Pambagyo
The week of 14th July 2025 stands out as a pivotal time in Indonesia’s diplomatic and trade relations history. After delicate conversations between Washington and Jakarta, President Trump announced a temporary decision: nearly all Indonesian products entering the United States will face a 19 percent tariff, down from the initial 32 percent We still need to see the final details before knowing if this new rate gives our exports an edge over similar products from other countries also hit by Trump’s so-called “reciprocal” tariffs -- which is more accurately “unilateral” than “reciprocal.”
We should give credit to Indonesia’s negotiating team for their efforts. This marks the first time in our trade history that the highest leaders from both sides have been directly involved in hammering out a tariff deal. For Indonesia, this is about protecting millions of jobs in sectors like shoes, garments (both knitted and not), seafood (including frozen shrimp, tuna, skipjack, lobster, shellfish), palm oil products, and plantation goods like rubber (including gloves and tires). These are crucial steps -- and here’s why.
Trump’s negotiating methods may seem common at first. There is a classic tactic of negotiations called “door-in-the-face” (DITF), described by psychologist Robert B. Cialdini back in 1978. This is how it works: The first party starts by making a huge, likely unreasonable demand. When that’s rejected, they come back with a smaller, more reasonable request -- which was their real goal all along. The other side, feeling the urge to reciprocate, naturally agrees. It is social psychology in action.
In Trump’s case, the playbook takes different flows: first, roll out the high tariffs, backed by his annual US National Trade Estimate Report on Foreign Trade Barriers (NTER) listing grievances against US trading partners. Before the US even submits formal demands, Indonesia scrambled to respond to the tariff and non-tariff complaints and try to soften the blow. Read more Jakarta Globe
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Prabowo-Trump Tariff Deal: Who Wins and Who Loses?
Hendrik Khoirul Muhid
RESEARCHER and economics lecturer from the Islamic University of Indonesia (UII), Listya Endang Artiani, stated that there is a striking imbalance in the import tariff agreement between Indonesia and the United States, negotiated by President Prabowo Subianto with U.S. President Donald Trump. According to Listya, the agreement tends to favor the U.S. rather than being mutually beneficial.
"One of the most crucial aspects of the trade agreement between President Prabowo and U.S. President Donald Trump is the imbalance in the agreed tariff structure," Listya told Tempo in a statement on Friday, July 18, 2025.
Prabowo, through his Instagram post on Wednesday, June 16, 2025, admitted to negotiating with Trump over the phone. Following Trump's announcement in early April regarding reciprocal import tariffs with U.S. trading partners, Indonesia was initially subjected to a 32 percent import tariff. Now, Prabowo's lobbying has reportedly resulted in a reduction of Indonesia's import tariff to 19 percent.
However, this negotiation comes with conditions. Import tariffs from the U.S. to Indonesia, on the other hand, will become 0 percent, or tariff-free.
Moreover, through his platform Truth Social on Tuesday, July 15, 2025, Trump stated that Indonesia agreed to purchase energy from the U.S. worth US$15 billion, agricultural products worth US$4.5 billion, and 50 Boeing aircraft, mostly Boeing 777s.
Imbalance in the Agreement: Who Actually Benefits?
According to Listya, at first glance, this agreement appears to be a positive achievement, potentially boosting the competitiveness of Indonesian products in the U.S. market. However, upon closer examination, a very striking imbalance emerges: products from the United States will enter the Indonesian market without tariffs and non-tariff barriers. Tempo
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Prabowo’s economic agenda faces a fiscal stress test
Manggi Habir, Siwage Dharma Negara
ISEAS-Yusof Ishak Institute
Indonesian President Prabowo Subianto’s first several months in office have reflected a shift towards economic policy driven by national security concerns and ambitious populist programs. Drawing on his military background, Prabowo has adopted a centralised, top-down approach to governance, with large fiscal commitments aimed at achieving food and energy self-sufficiency.
But slowing growth and narrowing fiscal space raise concerns that the government might ignore fiscal prudence, risking long-term investment and economic growth. Prabowo’s ambitious populist programs and nationalistic tendencies may lead Indonesia towards a more state-directed and fiscally fragile development path.
Central to Prabowo’s populist agenda is the Free Nutritious Meals program, launched in January 2025. The government has allocated IDR 121 trillion (US$7.5 billion), equivalent to 4.5 per cent of the 2025 state budget, for the program which aims to provide free school meals nationwide. The policy is partly designed to garner political support while boosting short-term consumption. But it also underestimates fiscal risk and implementation difficulties.
This is only part of a broader fiscal expansion that includes rice aid to 18.3 million low-income families, electricity discounts for 79.3 million households and income tax exemptions for workers earning up to IDR 10 million (US$606) per month. In June 2025, the government announced additional economic stimulus measures to boost consumer purchasing power and revive economic activity after sluggish first quarter growth.
These populist measures deliver much-needed short-term economic relief, particularly as real wages remain stagnant and the middle class has yet to fully recover from the pandemic. But the fiscal trade-off is also intensifying. While subsidies and tax exemptions can act as counter-cyclical policies amid global uncertainty, they become problematic when pursued without considering long-term efficiency gains.
Weak tax revenue growth, partly due to limiting the planned VAT hike to only luxury goods, is straining the budget. Maintaining the deficit ceiling of 3 per cent of GDP has required extensive budget cuts and reallocations, and may prove difficult if expenditures continue to escalate. East Asia Forum
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CIMB Foresees Indonesia Meeting Its 2025 Biodiesel Target
Indonesia is making steady progress on its ambitious B40 biodiesel program, which mandates a 40% palm-based biodiesel blend, with nearly half of its annual allocation already consumed. As of July 16, the nation had utilized approximately 7.42 million kiloliters (kls) of biodiesel, representing 48% of the total 15.62 million kls allocated for 2025.
Eniya Listiani Dewi, Director General for New and Renewable Energy at Indonesia’s Ministry of Energy and Mineral Resources, confirmed the consumption figures and indicated that the government is actively evaluating the feasibility of increasing the blend to 50% under a B50 program. While no firm decision has been made for 2025 implementation, consultations with experts and assessments of feedstock availability and processing capacity are underway. The ministry noted that five additional biodiesel plants would be required to support a B50 mandate, with three already in development.
Eddy Abdurrachman, head of the state plantation fund management agency (BPDPKS), reported that subsidized biodiesel consumption in the first half of 2025 reached an estimated 3.5 million kls. He expressed confidence in the agency’s ability to support the B40 rollout, expecting to collect IDR30 trillion (US$1.8–1.9 billion) from palm oil export levies in 2025. Additionally, BPDPKS aims to replant around 50,000 hectares of smallholder plantations this year.
CIMB Research maintains a positive outlook on Indonesia’s B40 implementation, anticipating it will meet its 2025 biodiesel target. This is expected to boost Indonesia’s domestic palm oil consumption by 2 million tonnes and consequently reduce its exportable surplus. The availability of funding for biodiesel subsidies is also seen as encouraging. Of the 15.62 million kls allocated for B40, 7.55 million kls (48%) is earmarked for Public Service Obligation (PSO) sectors, such as public transport, and is fully subsidized, explaining why subsidized consumption (3.5 million kls) is lower than total consumption.
B50: A Game Changer for Palm Oil Prices in 2026? Business Today
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Ministry to step in as high costs stall land conversion from rubber to oil palm for 50,000 farmers in Malaysia
BANTING: Some 50,000 smallholders have yet to convert their land status from rubber to oil palm plantations because of the high costs involved, says Datuk Seri Johari Abdul Ghani.
The Plantation and Commodities Minister said his ministry was currently discussing with state governments to help the smallholders convert the status of their lands.
“I want state governments to re-evaluate some of the land planted with oil palm, which is still classified as rubber plantation land,” Johari told reporters after launching SD Guthrie Bhd’s B30 biodiesel pilot project in Carey Island yesterday.
Johari said it was crucial to aptly convert the land status according to what was being cultivated in order to obtain the Malaysian Sustainable Palm Oil (MSPO) certification in line with the European Union Deforestation Regulation standards.
“The smallholders have to pay the state governments a premium sometimes ranging from RM30,000 to RM40,000 and this does not include penalties for the delay in converting the land status,” Johari explained.
In order to help the smallholders to overcome the stumbling block, Johari said negotiations would be held with the state governments involved seeking financial solutions as well as possible penalty waivers.
“Perhaps I can negotiate a waiver of the penalty charges given that the palm oil industry is very important,” said Johari, adding that a list was being compiled to identify smallholders who have yet to convert their land status.
On another matter, Johari, who is also acting Natural Resources and Environmental Sustainability Minister, said amendments were being made to the National Climate Change Bill.
“It is still in draft form and I have not brought it to the Cabinet yet,” he said, adding that it is expected to be tabled in Parliament this year.
According to Johari, the Bill will include every aspect of climate change.
Johari said the proposed Bill will include incentives for companies that complied with climate change efforts. The StarMY
Trump’s 19% Tariffs: How Should We (Indonesia) Respond?
Iman Pambagyo
The week of 14th July 2025 stands out as a pivotal time in Indonesia’s diplomatic and trade relations history. After delicate conversations between Washington and Jakarta, President Trump announced a temporary decision: nearly all Indonesian products entering the United States will face a 19 percent tariff, down from the initial 32 percent We still need to see the final details before knowing if this new rate gives our exports an edge over similar products from other countries also hit by Trump’s so-called “reciprocal” tariffs -- which is more accurately “unilateral” than “reciprocal.”
We should give credit to Indonesia’s negotiating team for their efforts. This marks the first time in our trade history that the highest leaders from both sides have been directly involved in hammering out a tariff deal. For Indonesia, this is about protecting millions of jobs in sectors like shoes, garments (both knitted and not), seafood (including frozen shrimp, tuna, skipjack, lobster, shellfish), palm oil products, and plantation goods like rubber (including gloves and tires). These are crucial steps -- and here’s why.
Trump’s negotiating methods may seem common at first. There is a classic tactic of negotiations called “door-in-the-face” (DITF), described by psychologist Robert B. Cialdini back in 1978. This is how it works: The first party starts by making a huge, likely unreasonable demand. When that’s rejected, they come back with a smaller, more reasonable request -- which was their real goal all along. The other side, feeling the urge to reciprocate, naturally agrees. It is social psychology in action.
In Trump’s case, the playbook takes different flows: first, roll out the high tariffs, backed by his annual US National Trade Estimate Report on Foreign Trade Barriers (NTER) listing grievances against US trading partners. Before the US even submits formal demands, Indonesia scrambled to respond to the tariff and non-tariff complaints and try to soften the blow. Read more Jakarta Globe
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Prabowo-Trump Tariff Deal: Who Wins and Who Loses?
Hendrik Khoirul Muhid
RESEARCHER and economics lecturer from the Islamic University of Indonesia (UII), Listya Endang Artiani, stated that there is a striking imbalance in the import tariff agreement between Indonesia and the United States, negotiated by President Prabowo Subianto with U.S. President Donald Trump. According to Listya, the agreement tends to favor the U.S. rather than being mutually beneficial.
"One of the most crucial aspects of the trade agreement between President Prabowo and U.S. President Donald Trump is the imbalance in the agreed tariff structure," Listya told Tempo in a statement on Friday, July 18, 2025.
Prabowo, through his Instagram post on Wednesday, June 16, 2025, admitted to negotiating with Trump over the phone. Following Trump's announcement in early April regarding reciprocal import tariffs with U.S. trading partners, Indonesia was initially subjected to a 32 percent import tariff. Now, Prabowo's lobbying has reportedly resulted in a reduction of Indonesia's import tariff to 19 percent.
However, this negotiation comes with conditions. Import tariffs from the U.S. to Indonesia, on the other hand, will become 0 percent, or tariff-free.
Moreover, through his platform Truth Social on Tuesday, July 15, 2025, Trump stated that Indonesia agreed to purchase energy from the U.S. worth US$15 billion, agricultural products worth US$4.5 billion, and 50 Boeing aircraft, mostly Boeing 777s.
Imbalance in the Agreement: Who Actually Benefits?
According to Listya, at first glance, this agreement appears to be a positive achievement, potentially boosting the competitiveness of Indonesian products in the U.S. market. However, upon closer examination, a very striking imbalance emerges: products from the United States will enter the Indonesian market without tariffs and non-tariff barriers. Tempo
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Prabowo’s economic agenda faces a fiscal stress test
Manggi Habir, Siwage Dharma Negara
ISEAS-Yusof Ishak Institute
Indonesian President Prabowo Subianto’s first several months in office have reflected a shift towards economic policy driven by national security concerns and ambitious populist programs. Drawing on his military background, Prabowo has adopted a centralised, top-down approach to governance, with large fiscal commitments aimed at achieving food and energy self-sufficiency.
But slowing growth and narrowing fiscal space raise concerns that the government might ignore fiscal prudence, risking long-term investment and economic growth. Prabowo’s ambitious populist programs and nationalistic tendencies may lead Indonesia towards a more state-directed and fiscally fragile development path.
Central to Prabowo’s populist agenda is the Free Nutritious Meals program, launched in January 2025. The government has allocated IDR 121 trillion (US$7.5 billion), equivalent to 4.5 per cent of the 2025 state budget, for the program which aims to provide free school meals nationwide. The policy is partly designed to garner political support while boosting short-term consumption. But it also underestimates fiscal risk and implementation difficulties.
This is only part of a broader fiscal expansion that includes rice aid to 18.3 million low-income families, electricity discounts for 79.3 million households and income tax exemptions for workers earning up to IDR 10 million (US$606) per month. In June 2025, the government announced additional economic stimulus measures to boost consumer purchasing power and revive economic activity after sluggish first quarter growth.
These populist measures deliver much-needed short-term economic relief, particularly as real wages remain stagnant and the middle class has yet to fully recover from the pandemic. But the fiscal trade-off is also intensifying. While subsidies and tax exemptions can act as counter-cyclical policies amid global uncertainty, they become problematic when pursued without considering long-term efficiency gains.
Weak tax revenue growth, partly due to limiting the planned VAT hike to only luxury goods, is straining the budget. Maintaining the deficit ceiling of 3 per cent of GDP has required extensive budget cuts and reallocations, and may prove difficult if expenditures continue to escalate. East Asia Forum
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CIMB Foresees Indonesia Meeting Its 2025 Biodiesel Target
Indonesia is making steady progress on its ambitious B40 biodiesel program, which mandates a 40% palm-based biodiesel blend, with nearly half of its annual allocation already consumed. As of July 16, the nation had utilized approximately 7.42 million kiloliters (kls) of biodiesel, representing 48% of the total 15.62 million kls allocated for 2025.
Eniya Listiani Dewi, Director General for New and Renewable Energy at Indonesia’s Ministry of Energy and Mineral Resources, confirmed the consumption figures and indicated that the government is actively evaluating the feasibility of increasing the blend to 50% under a B50 program. While no firm decision has been made for 2025 implementation, consultations with experts and assessments of feedstock availability and processing capacity are underway. The ministry noted that five additional biodiesel plants would be required to support a B50 mandate, with three already in development.
Eddy Abdurrachman, head of the state plantation fund management agency (BPDPKS), reported that subsidized biodiesel consumption in the first half of 2025 reached an estimated 3.5 million kls. He expressed confidence in the agency’s ability to support the B40 rollout, expecting to collect IDR30 trillion (US$1.8–1.9 billion) from palm oil export levies in 2025. Additionally, BPDPKS aims to replant around 50,000 hectares of smallholder plantations this year.
CIMB Research maintains a positive outlook on Indonesia’s B40 implementation, anticipating it will meet its 2025 biodiesel target. This is expected to boost Indonesia’s domestic palm oil consumption by 2 million tonnes and consequently reduce its exportable surplus. The availability of funding for biodiesel subsidies is also seen as encouraging. Of the 15.62 million kls allocated for B40, 7.55 million kls (48%) is earmarked for Public Service Obligation (PSO) sectors, such as public transport, and is fully subsidized, explaining why subsidized consumption (3.5 million kls) is lower than total consumption.
B50: A Game Changer for Palm Oil Prices in 2026? Business Today
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Ministry to step in as high costs stall land conversion from rubber to oil palm for 50,000 farmers in Malaysia
BANTING: Some 50,000 smallholders have yet to convert their land status from rubber to oil palm plantations because of the high costs involved, says Datuk Seri Johari Abdul Ghani.
The Plantation and Commodities Minister said his ministry was currently discussing with state governments to help the smallholders convert the status of their lands.
“I want state governments to re-evaluate some of the land planted with oil palm, which is still classified as rubber plantation land,” Johari told reporters after launching SD Guthrie Bhd’s B30 biodiesel pilot project in Carey Island yesterday.
Johari said it was crucial to aptly convert the land status according to what was being cultivated in order to obtain the Malaysian Sustainable Palm Oil (MSPO) certification in line with the European Union Deforestation Regulation standards.
“The smallholders have to pay the state governments a premium sometimes ranging from RM30,000 to RM40,000 and this does not include penalties for the delay in converting the land status,” Johari explained.
In order to help the smallholders to overcome the stumbling block, Johari said negotiations would be held with the state governments involved seeking financial solutions as well as possible penalty waivers.
“Perhaps I can negotiate a waiver of the penalty charges given that the palm oil industry is very important,” said Johari, adding that a list was being compiled to identify smallholders who have yet to convert their land status.
On another matter, Johari, who is also acting Natural Resources and Environmental Sustainability Minister, said amendments were being made to the National Climate Change Bill.
“It is still in draft form and I have not brought it to the Cabinet yet,” he said, adding that it is expected to be tabled in Parliament this year.
According to Johari, the Bill will include every aspect of climate change.
Johari said the proposed Bill will include incentives for companies that complied with climate change efforts. The StarMY
July 19, 2025
SD Guthrie’s B30 pilot project to set national benchmark for biodiesel use
THE launch of Malaysia’s first B30 biodiesel pilot project in Carey Island is expected to serve as a national model for reducing carbon emissions and reshaping sustainability standards in the agro-business sector.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the initiative by SD Guthrie Bhd demonstrates how targeted collaboration between government, industry and research institutions can lead to impactful decarbonisation in the palm oil value chain.
“I am confident this B30 pilot project in Carey Island will become a national model for other plantation companies to further reduce carbon emissions and set new benchmarks for the agro-business sector,” he said when officiating the launch at SD Guthrie’s Golden Hope Academy today.
Johari said the transition to B30 biodiesel — a blend of 30% palm-based biodiesel and 70% petroleum diesel — supports the country’s broader ambition to achieve net-zero emissions by 2050.
The pilot will cover all plantation vehicles and operational machinery at SD Guthrie’s Carey Island estates.
“The use of palm biodiesel will not only reduce dependency on fossil fuels but also empower smallholders and local communities involved in palm oil production,” he added.
Johari said initiatives like this demonstrates Malaysia’s commitment to clean energy as well as improves the reputation of palm oil as a legitimate part of the climate solution.
“It will also continue to show how palm oil can be part of the climate change solution, further strengthening the image and reputation of palm oil globally,” he said.
He noted that Malaysia’s biodiesel journey began in 2011 with B5, followed by phased expansions to B7, B10 and B20.
The B30 pilot now marks the country’s most ambitious step forward in palm biodiesel usage.
Johari credited the close collaboration between SD Guthrie, the Malaysian Palm Oil Board (MPOB) and Petronas Dagangan Bhd (PDB) for bringing the project to fruition.
“This initiative reflects the strong collaboration between the public and private sectors in enhancing the competitiveness of Malaysia’s palm oil industry through high-impact innovation,” he said.
He added that the B30 rollout also provides a blueprint for emission reductions across multiple sectors, aligning plantation decarbonisation efforts with Malaysia’s wider energy transition agenda.
“This pilot project is a significant step towards realising the nation’s commitment to the global sustainability agenda,” he said.
The Malaysian Reserve
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HINA - Sustainable aviation fuel produced at Rijeka Oil Refinery
ZAGREB, 17 July (Hina) - Sustainable aviation fuel (SAF), an alternative fuel that reduces emissions from air transportation, has been produced at the Rijeka Oil Refinery for the first time, the INA company stated.
As part of efforts to reduce its carbon footprint and align with EU renewable energy regulations, INA successfully completed a pilot project processing bio-feedstock at its hydrocracking unit. In addition to SAF, a significant quantity of renewable diesel fuel (HVO – Hydrotreated Vegetable Oil) was also produced.
The European Union’s Renewable Energy Directive mandates ambitious targets to cut greenhouse gas emissions and increase the share of renewable sources in transport.
By 2030, member states must ensure a specific share of renewables in the transport sector, with a particular focus on advanced biofuels and sustainable aviation fuel, both of which are key to decarbonising the aviation industry.
In response, INA plans to complete all preparatory activities and be ready for continuous market supply of SAF by 2029.
The project was carried out in cooperation with the refinery’s technology licensor, Chevron Lummus Global (CLG), with the goal of testing the processing of 5% POME (Palm Oil Mill Effluent - a by-product of palm oil production) mixed with fossil feedstocks.
The pilot project was run from 5 to 13 May 2025, during which 1,000 tonnes of bio-feedstock were processed.
The entire process was certified by independent auditor Bureau Veritas, in accordance with the ISCC (International Sustainability and Carbon Certification) standard for sustainable biofuels. AMAN Alliance
---------
Developing a robust biofuels industry for Nepal
As global efforts increase to combat climate change and secure sustainable energy sources, biofuels have emerged as a critical factor in the energy transition.
For Nepal, a nation heavily reliant on imported fossil fuels, adopting biofuels is not just an environmental requirement, but it is an economic imperative. The Nepalese government is now prioritising the development of a robust biofuel industry, leveraging international collaborations like the Global Biofuel Alliance (GBA) to accelerate this transition and secure a sustainable energy future.
The case for biofuels in Nepal
Nepal’s energy sector is characterised by a heavy dependence on fossil fuels, which accounts for a significant portion of the country’s energy consumption. This reliance burdens the nation’s foreign exchange reserves and exposes the economy to the volatility of global oil markets.
Developing a domestic biofuel industry will be a game-changer in a country where energy security is risky. By reducing dependence on imported fuels, biofuels can enhance national energy security, stabilise the economy and insulate it from the shocks of global...Biofuels News
---------
ASEAN accelerates de-dollarisation
Whenever he travels around the Southeast Asian region or to China, Malaysian private equity investor Ian Yoong Kah Yin always uses his e-wallet to settle all payments. Yoong, a former investment banker, seldom travels with a big chunk of cash, preferring to use an app he downloaded on his phone so he can use a QR code to pay in Malaysian ringgit or any local currency.
Yoong said using a QR code is not only convenient but also cuts transaction costs as he does not need to convert ringgit to US dollar first and then to another local currency, avoiding double currency conversion rates.
The reduced role of the US dollar and the growing role of the Chinese yuan and local currencies used by members of the Association of Southeast Asian Nations is "inevitable", according to Yoong, who noted there are about 100 banks in the ASEAN region that are part of the yuan-based Cross-border Interbank Payment System, or CIPS.
"ASEAN economies are accelerating the move away from the US dollar as geopolitical uncertainties, monetary shifts and increasing currency volatility prompt de-dollarisation in the region," Yoong told China Daily. He said Washington's "erratic trade policy decisions" combined with the recent "sharp underperformance" of the US dollar are fueling a rapid shift to other currencies.
Yoong's personal experience and insights on using more Chinese and ASEAN currencies in cross-border transactions reflect how ASEAN countries are gradually reducing their dependence on the US dollar to cut transaction costs, enhance efficiency and mitigate the impact of foreign exchange fluctuations.
ASEAN leaders have committed to promoting local currency settlements, as stated in the ASEAN Economic Community Strategic Plan 2026-2030 adopted at the 46th ASEAN Summit held on May 26 in the Malaysian capital city Kuala Lumpur. The regional bloc aims to deepen financial integration and inclusion through several measures such as liberalising capital accounts to facilitate seamless cross-border investments and financing, strengthening regional payment connectivity and promoting local currency settlements. Enhancing payment connectivity is also seen as aiding trade and investments in the region.
The strategic plan was formulated at a time when the US dollar, which has long dominated global trade and investment, was sinking to multi-year lows. On April 21, for example, the US Dollar Index fell to a three-year low following US President Donald Trump's criticism of Federal Reserve Chair Jerome Powell. The StarMY
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Collateral damage? Focus on the principle, not the fallout
Among his many defects, Donald Trump is a vengeful obsessive. Which is why poor Indonesians (that’s about 40 million of the 285 million rice-eaters) could soon be paying more for their essential starches.
President Prabowo Subianto, 73, has just joined BRICS, a troupe of traders hated by the US president because China leads it and it has more members.
So he’s hitting the wee folk next door to us — originally with a 32% tariff, now apparently down to 19% – with Trump claiming, “the US would pay no tariffs to Indonesia as part of a trade deal".
“Great deal, for everybody, just made with Indonesia. I dealt directly with their highly respected President. DETAILS TO FOLLOW!!!”
Indonesia is the world’s largest exporter of palm oil – 46 million tonnes last year. It also sells coffee, tea, along with broadcast equipment. Coconut production has almost doubled to US$114 million in the past two years with China as the big buyer.
Meanwhile, Prabowo has been in Brazil echoing President Luiz Inácio Lula da Silva’s call to reform the UN, advocating for greater representation of emerging countries and consolidating the BRICSI deal.
Imagine two big clubs that loathe each other and are continually slanging off. One calls itself the G7. Although its headquarters depend on the meeting place (the leaders’ summit was held last month in Alberta), its putative boss is Washington. The BRICSI show is based in Shanghai.
The names reflect the membership: Canada, France, Germany, Italy, Japan, the UK, and the US are in the G7; the others are Brazil, Russia, India, China, and South Africa. Both have minor states like Australia hanging around – but Indonesia joined this year creating the cumbersome BRICSI.
That’s quite a coup because the archipelago nation is already the tenth largest economy in the world and rocketing fast. BRICSI is bigger with 35% of the world’s GDP compared to 30% in the G7.
Had Indonesia been in the older outfit, it would be top dog, and has already been invited to take a look by the Canadians. But the other members who’ve been around for half a century tend to sneer at upstarts from the Asian region.
Some commentators claim Prabowo has joined BRICSI because he wants to lead the Global South. Maybe, but he’s also vengeful.
Late last century as an army general he was banned from the US for almost two decades under Clinton, Bush and Obama — blacklisted for his alleged roles in human rights abuses in Papua, East Timor and Jakarta — robustly denied and never charged.
Prabowo was discharged as head of Kopassus, Indonesia’s special forces command; he fled to exile in Jordan, a history rarely mentioned in his homeland.
The bans have been lifted but the wound kept suppurating, particularly as the bonds of his formative years were made in the US.
Prabowo graduated from the American School in London, where his family lived in exile. He got special forces training, at what’s now Fort Moore, in the 1980s.
These years he exercises by striding China’s red carpets. In 2024, he went to Russia after touring China, Japan, France, Serbia, and Turkey. Places visited, status of hands shaken and in which order are the punctuation points of foreign policy. Also noted by protocol staff are the names of places overflown and faces overlooked.
Apart from Paris, Western capitals were off the list. International policy analyst Dr Dafri Agus Salim vacillated:
“This visit seems to signal or indicate that our political orientation might be shifting slightly. Previously, it was somewhat West-oriented, but now we might be leaning more towards the East … to countries that are not always on friendly terms with Western countries, especially the US.”
Because of its size and geographical location, Indonesia has been wooed by world powers since its independence from the Dutch 80 years ago. First president Soekarno steered the Republic towards Russia, terrifying the UK and the US.
His successor Soeharto brought back Western love after the mass murder of real or imagined Reds in 1965 and 1966 with applause from Australia. In Washington, then prime minister Harold Holt said:
“With 500,000 to a million communist sympathisers knocked off, I think it is safe to assume a reorientation has taken place.” This drew the comment that Australia was “an accomplice to brutality”.
Successive presidents have enlarged their language about neutrality into three dimensions: “Choosing a free and active, non-aligned path”, “sailing between two reefs” and getting airborne “between the Dragon and Eagle.”
Said Prabowo last year: “Indonesia will not join any military pacts and will opt for a friendly approach with all countries,” adding the rider: “Nevertheless, Indonesia maintains an anti-colonialism principle."
In Beijing, speaking in Mandarin, he repeated the tired cliché of “a thousand friends are too few, one enemy is too many”, adding that he’d learned much from Chinese philosophers, embracing the principle of fostering friendships over rivalry. Perhaps a message here for the Australian Strategic Policy Institute hawks.
The notion behind G7 and BRICSI is that they should separately get together now and again and sort out trade hassles amicably.
That ideal is now off the agenda because Trump doesn’t want tariffs against his country, but enjoys using them to bash others. These are taxes on imports to raise revenue, protect domestic industries, or exert political leverage.
Canberra and most balanced economists prefer free trade because tariffs are a blunt economic weapon usually delivering higher consumer prices and setting nations at each other’s throats.
How much further towards the East will Prabowo take the Republic? Maybe unintended, but it should have been foreseen: Getting a shove from Trump helps move the Indonesian compass away from the Land of the Free. Duncan Graham/ John Menadue
SD Guthrie’s B30 pilot project to set national benchmark for biodiesel use
THE launch of Malaysia’s first B30 biodiesel pilot project in Carey Island is expected to serve as a national model for reducing carbon emissions and reshaping sustainability standards in the agro-business sector.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the initiative by SD Guthrie Bhd demonstrates how targeted collaboration between government, industry and research institutions can lead to impactful decarbonisation in the palm oil value chain.
“I am confident this B30 pilot project in Carey Island will become a national model for other plantation companies to further reduce carbon emissions and set new benchmarks for the agro-business sector,” he said when officiating the launch at SD Guthrie’s Golden Hope Academy today.
Johari said the transition to B30 biodiesel — a blend of 30% palm-based biodiesel and 70% petroleum diesel — supports the country’s broader ambition to achieve net-zero emissions by 2050.
The pilot will cover all plantation vehicles and operational machinery at SD Guthrie’s Carey Island estates.
“The use of palm biodiesel will not only reduce dependency on fossil fuels but also empower smallholders and local communities involved in palm oil production,” he added.
Johari said initiatives like this demonstrates Malaysia’s commitment to clean energy as well as improves the reputation of palm oil as a legitimate part of the climate solution.
“It will also continue to show how palm oil can be part of the climate change solution, further strengthening the image and reputation of palm oil globally,” he said.
He noted that Malaysia’s biodiesel journey began in 2011 with B5, followed by phased expansions to B7, B10 and B20.
The B30 pilot now marks the country’s most ambitious step forward in palm biodiesel usage.
Johari credited the close collaboration between SD Guthrie, the Malaysian Palm Oil Board (MPOB) and Petronas Dagangan Bhd (PDB) for bringing the project to fruition.
“This initiative reflects the strong collaboration between the public and private sectors in enhancing the competitiveness of Malaysia’s palm oil industry through high-impact innovation,” he said.
He added that the B30 rollout also provides a blueprint for emission reductions across multiple sectors, aligning plantation decarbonisation efforts with Malaysia’s wider energy transition agenda.
“This pilot project is a significant step towards realising the nation’s commitment to the global sustainability agenda,” he said.
The Malaysian Reserve
---------
HINA - Sustainable aviation fuel produced at Rijeka Oil Refinery
ZAGREB, 17 July (Hina) - Sustainable aviation fuel (SAF), an alternative fuel that reduces emissions from air transportation, has been produced at the Rijeka Oil Refinery for the first time, the INA company stated.
As part of efforts to reduce its carbon footprint and align with EU renewable energy regulations, INA successfully completed a pilot project processing bio-feedstock at its hydrocracking unit. In addition to SAF, a significant quantity of renewable diesel fuel (HVO – Hydrotreated Vegetable Oil) was also produced.
The European Union’s Renewable Energy Directive mandates ambitious targets to cut greenhouse gas emissions and increase the share of renewable sources in transport.
By 2030, member states must ensure a specific share of renewables in the transport sector, with a particular focus on advanced biofuels and sustainable aviation fuel, both of which are key to decarbonising the aviation industry.
In response, INA plans to complete all preparatory activities and be ready for continuous market supply of SAF by 2029.
The project was carried out in cooperation with the refinery’s technology licensor, Chevron Lummus Global (CLG), with the goal of testing the processing of 5% POME (Palm Oil Mill Effluent - a by-product of palm oil production) mixed with fossil feedstocks.
The pilot project was run from 5 to 13 May 2025, during which 1,000 tonnes of bio-feedstock were processed.
The entire process was certified by independent auditor Bureau Veritas, in accordance with the ISCC (International Sustainability and Carbon Certification) standard for sustainable biofuels. AMAN Alliance
---------
Developing a robust biofuels industry for Nepal
As global efforts increase to combat climate change and secure sustainable energy sources, biofuels have emerged as a critical factor in the energy transition.
For Nepal, a nation heavily reliant on imported fossil fuels, adopting biofuels is not just an environmental requirement, but it is an economic imperative. The Nepalese government is now prioritising the development of a robust biofuel industry, leveraging international collaborations like the Global Biofuel Alliance (GBA) to accelerate this transition and secure a sustainable energy future.
The case for biofuels in Nepal
Nepal’s energy sector is characterised by a heavy dependence on fossil fuels, which accounts for a significant portion of the country’s energy consumption. This reliance burdens the nation’s foreign exchange reserves and exposes the economy to the volatility of global oil markets.
Developing a domestic biofuel industry will be a game-changer in a country where energy security is risky. By reducing dependence on imported fuels, biofuels can enhance national energy security, stabilise the economy and insulate it from the shocks of global...Biofuels News
---------
ASEAN accelerates de-dollarisation
Whenever he travels around the Southeast Asian region or to China, Malaysian private equity investor Ian Yoong Kah Yin always uses his e-wallet to settle all payments. Yoong, a former investment banker, seldom travels with a big chunk of cash, preferring to use an app he downloaded on his phone so he can use a QR code to pay in Malaysian ringgit or any local currency.
Yoong said using a QR code is not only convenient but also cuts transaction costs as he does not need to convert ringgit to US dollar first and then to another local currency, avoiding double currency conversion rates.
The reduced role of the US dollar and the growing role of the Chinese yuan and local currencies used by members of the Association of Southeast Asian Nations is "inevitable", according to Yoong, who noted there are about 100 banks in the ASEAN region that are part of the yuan-based Cross-border Interbank Payment System, or CIPS.
"ASEAN economies are accelerating the move away from the US dollar as geopolitical uncertainties, monetary shifts and increasing currency volatility prompt de-dollarisation in the region," Yoong told China Daily. He said Washington's "erratic trade policy decisions" combined with the recent "sharp underperformance" of the US dollar are fueling a rapid shift to other currencies.
Yoong's personal experience and insights on using more Chinese and ASEAN currencies in cross-border transactions reflect how ASEAN countries are gradually reducing their dependence on the US dollar to cut transaction costs, enhance efficiency and mitigate the impact of foreign exchange fluctuations.
ASEAN leaders have committed to promoting local currency settlements, as stated in the ASEAN Economic Community Strategic Plan 2026-2030 adopted at the 46th ASEAN Summit held on May 26 in the Malaysian capital city Kuala Lumpur. The regional bloc aims to deepen financial integration and inclusion through several measures such as liberalising capital accounts to facilitate seamless cross-border investments and financing, strengthening regional payment connectivity and promoting local currency settlements. Enhancing payment connectivity is also seen as aiding trade and investments in the region.
The strategic plan was formulated at a time when the US dollar, which has long dominated global trade and investment, was sinking to multi-year lows. On April 21, for example, the US Dollar Index fell to a three-year low following US President Donald Trump's criticism of Federal Reserve Chair Jerome Powell. The StarMY
---------
Collateral damage? Focus on the principle, not the fallout
Among his many defects, Donald Trump is a vengeful obsessive. Which is why poor Indonesians (that’s about 40 million of the 285 million rice-eaters) could soon be paying more for their essential starches.
President Prabowo Subianto, 73, has just joined BRICS, a troupe of traders hated by the US president because China leads it and it has more members.
So he’s hitting the wee folk next door to us — originally with a 32% tariff, now apparently down to 19% – with Trump claiming, “the US would pay no tariffs to Indonesia as part of a trade deal".
“Great deal, for everybody, just made with Indonesia. I dealt directly with their highly respected President. DETAILS TO FOLLOW!!!”
Indonesia is the world’s largest exporter of palm oil – 46 million tonnes last year. It also sells coffee, tea, along with broadcast equipment. Coconut production has almost doubled to US$114 million in the past two years with China as the big buyer.
Meanwhile, Prabowo has been in Brazil echoing President Luiz Inácio Lula da Silva’s call to reform the UN, advocating for greater representation of emerging countries and consolidating the BRICSI deal.
Imagine two big clubs that loathe each other and are continually slanging off. One calls itself the G7. Although its headquarters depend on the meeting place (the leaders’ summit was held last month in Alberta), its putative boss is Washington. The BRICSI show is based in Shanghai.
The names reflect the membership: Canada, France, Germany, Italy, Japan, the UK, and the US are in the G7; the others are Brazil, Russia, India, China, and South Africa. Both have minor states like Australia hanging around – but Indonesia joined this year creating the cumbersome BRICSI.
That’s quite a coup because the archipelago nation is already the tenth largest economy in the world and rocketing fast. BRICSI is bigger with 35% of the world’s GDP compared to 30% in the G7.
Had Indonesia been in the older outfit, it would be top dog, and has already been invited to take a look by the Canadians. But the other members who’ve been around for half a century tend to sneer at upstarts from the Asian region.
Some commentators claim Prabowo has joined BRICSI because he wants to lead the Global South. Maybe, but he’s also vengeful.
Late last century as an army general he was banned from the US for almost two decades under Clinton, Bush and Obama — blacklisted for his alleged roles in human rights abuses in Papua, East Timor and Jakarta — robustly denied and never charged.
Prabowo was discharged as head of Kopassus, Indonesia’s special forces command; he fled to exile in Jordan, a history rarely mentioned in his homeland.
The bans have been lifted but the wound kept suppurating, particularly as the bonds of his formative years were made in the US.
Prabowo graduated from the American School in London, where his family lived in exile. He got special forces training, at what’s now Fort Moore, in the 1980s.
These years he exercises by striding China’s red carpets. In 2024, he went to Russia after touring China, Japan, France, Serbia, and Turkey. Places visited, status of hands shaken and in which order are the punctuation points of foreign policy. Also noted by protocol staff are the names of places overflown and faces overlooked.
Apart from Paris, Western capitals were off the list. International policy analyst Dr Dafri Agus Salim vacillated:
“This visit seems to signal or indicate that our political orientation might be shifting slightly. Previously, it was somewhat West-oriented, but now we might be leaning more towards the East … to countries that are not always on friendly terms with Western countries, especially the US.”
Because of its size and geographical location, Indonesia has been wooed by world powers since its independence from the Dutch 80 years ago. First president Soekarno steered the Republic towards Russia, terrifying the UK and the US.
His successor Soeharto brought back Western love after the mass murder of real or imagined Reds in 1965 and 1966 with applause from Australia. In Washington, then prime minister Harold Holt said:
“With 500,000 to a million communist sympathisers knocked off, I think it is safe to assume a reorientation has taken place.” This drew the comment that Australia was “an accomplice to brutality”.
Successive presidents have enlarged their language about neutrality into three dimensions: “Choosing a free and active, non-aligned path”, “sailing between two reefs” and getting airborne “between the Dragon and Eagle.”
Said Prabowo last year: “Indonesia will not join any military pacts and will opt for a friendly approach with all countries,” adding the rider: “Nevertheless, Indonesia maintains an anti-colonialism principle."
In Beijing, speaking in Mandarin, he repeated the tired cliché of “a thousand friends are too few, one enemy is too many”, adding that he’d learned much from Chinese philosophers, embracing the principle of fostering friendships over rivalry. Perhaps a message here for the Australian Strategic Policy Institute hawks.
The notion behind G7 and BRICSI is that they should separately get together now and again and sort out trade hassles amicably.
That ideal is now off the agenda because Trump doesn’t want tariffs against his country, but enjoys using them to bash others. These are taxes on imports to raise revenue, protect domestic industries, or exert political leverage.
Canberra and most balanced economists prefer free trade because tariffs are a blunt economic weapon usually delivering higher consumer prices and setting nations at each other’s throats.
How much further towards the East will Prabowo take the Republic? Maybe unintended, but it should have been foreseen: Getting a shove from Trump helps move the Indonesian compass away from the Land of the Free. Duncan Graham/ John Menadue
July 18, 2025
Indonesia still negotiating details, exemptions on US tariff deal, official says
JAKARTA, July 18 (Reuters) - Indonesia is still negotiating details of its recently-reached trade deal with the United States after Washington lowered tariff rates on the Southeast Asian country, and is pursuing exemptions for its exports of palm oil and nickel, an official said on Friday.
The two countries reached a trade deal this week that led to a reduction in the threatened U.S. proposed tariff rate to 19% from 32%. The deal was one of only a handful reached so far by the Trump administration ahead of the August 1 negotiation deadline with numerous countries.
Susiwijono Moegiarso, a senior official at the country's economic ministry, told reporters that the two sides were still negotiating the finer details of the agreement, adding that the 19% rate will be imposed on top of existing sectoral tariffs.
Indonesia has asked the United States to exempt its exports of cocoa, rubber, crude palm oil, coffee and nickel from the levy, he said, adding that U.S. technology products will also be exempted from Indonesia's "local content" rules, which require companies to use locally-made components in its manufacturing.
Indonesia is the world's biggest palm oil producer and the biggest supplier to the United States, accounting for 85% of its total imports in 2024.
"This is a good opportunity, this will become a good factor for us," Susiwijono said. "The deal should be good to support our exports."
Indonesia will also buy jets for its flag carrier Garuda Indonesia (GIAA.JK), opens new tab from Boeing, and its state energy firm Pertamina (PERTM.UL) will also import energy from the United States, subject to business reviews, Susiwijono said.
He added that all U.S. goods imported into Indonesia will face zero tariffs, with the exception of alcoholic drinks and pork, and some U.S. goods will be exempted from import quota rules.
A statement from Indonesia's economic ministry said the trade deal with U.S. included agreement of easier import permits for U.S. goods, protection of intellectual property rights, and for Indonesia to comply with international standard on export and import of goods with nuclear components. Reuters
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Indonesia Pushes for Tariff Exemptions on Palm Oil, Coffee Exports to US
Jakarta. Indonesia is pushing for zero tariffs on key export commodities to the United States despite Washington’s 19 percent import tariff on Indonesian products, a senior official said.
Susiwijono Moegiarso, secretary of the Coordinating Ministry for Economic Affairs, said there remains room for negotiation on reciprocal tariffs, with palm oil, nickel, coffee, and cocoa among the products Jakarta hopes can enter the US without duties.
“President has stated that the 19 percent reciprocal tariff from the Trump administration has been set, but there is still room to negotiate,” Susiwijono told reporters on Friday. “Some of our exports are needed by the US and cannot be produced there, so we will negotiate to get the tariff down to zero.”
Indonesia is still finalizing its list of commodities for the talks but is prioritizing products with strong US demand that are difficult to source domestically.
At the same time, Indonesia will maintain import duties on certain US goods despite agreeing to zero tariffs on the vast majority of American imports. From 11,552 tariff lines under the Harmonized System, Indonesia has agreed to exempt 11,474 lines, or approximately 99 percent of US products, from import duties. The remainder, including alcoholic beverages and pork, is expected to continue facing tariffs.
“There are some products we are discussing that will not receive zero-tariff treatment,” Susiwijono said, adding that discussions on product classification are ongoing.
According to the United Nations COMTRADE database, the United States exported goods worth $10.2 billion to Indonesia in 2024. Top American exports to Indonesia include mineral fuels and oils, oilseeds such as soybeans, machinery, organic chemicals, aircraft, and electronic equipment, reflecting Indonesia’s growing demand for US energy, agricultural, and high-tech products.
Indonesia’s tariff exemptions align with its commitments under various free trade agreements, including the ASEAN Trade in Goods Agreement and deals with Australia, New Zealand, and Japan. The country recently concluded a comprehensive economic partnership agreement with the European Union that will allow nearly all Indonesian products to enter Europe duty-free. Jakarta Globe
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Indonesia reaches tariff deal with Donald Trump, but is it a win-win?
Indonesia has become the second Asian nation to reach an agreement with the US, following President Donald Trump's launch of his tariff war on the world in April.
The US would pay no tariffs to Indonesia under the deal, while goods from the South-east Asian nation would face a 19 per cent levy.
Mr Trump had threatened Jakarta with a 32 per cent tariff rate, effective August 1, in a letter sent to Indonesian President Prabowo Subianto last week.
Indonesia runs a trade surplus with Washington, meaning the value of the goods it sells to the US (footwear, clothing, palm oil and rubber) brings in more money than what Indonesia pays to America for things such as oil and gas, electronic products, aircraft components, cereals and pharmaceuticals.
In 2024, the difference was close to $US18 billion in Indonesia’s favour.
What's in the new deal?
In exchange for the tariff reduction, Mr Trump said Indonesia agreed to purchase 50 Boeing aircraft, primarily from the 777 series.
Furthermore, the Indonesian government plans to import US energy commodities valued at $US15 billion and US agricultural products worth $US4.5 billion.
"For the first time ever, our Ranchers, Farmers, and Fishermen will have Complete and Total Access to the Indonesian Market of over 280 million people... U.S. Exports to Indonesia will be Tariff and Non-Tariff Barrier Free," Mr Trump declared.
Is it a good deal for Indonesia?
Mr Prabowo hailed a "new era of mutual benefit" while Indonesian Trade Minister Budi Santoso said the new tariff has the potential to attract significant investment to Indonesia.
He said this week: "We have two things that we can gain: investment inflow, and secondly, an increase in our exports."
However, Bhima Yudhistira, Executive Director of the Centre of Economic and Law Studies (Celios), told Tempo news website that the agreement disadvantages Indonesia.
"[It] actually carries a high risk for Indonesia's trade balance," he said, adding that while exports would benefit, there was a danger American imports could increase dramatically.
He said the agreement didn’t compare well to Vietnam’s deal signed on July 3.
“The difference between Indonesia’s and Vietnam’s tariffs is only 1 per cent, but Vietnam’s manufacturing competitiveness is superior. In this case, we lose,” he told The South China Morning Post.
A win-win was unlikely
Poppy S Winanti, Professor of International Relations at Universitas Gadjah Mada in Yogyakarta, said the current deal on the surface seemed favourable, especially given the initial 32 per cent threat.
“At 19 per cent, Indonesia's tariffs are among the lowest in ASEAN and are competitive with main rivals in the US market, such as Vietnam," she said.
“However, for Indonesian producers, any additional tariffs above previous levels are already burdensome.
“Still, we should recognise that since negotiations began, a win-win outcome was unlikely.
“The Indonesian government’s aim was probably to minimise damages, complemented by efforts to mitigate impacts in the short, medium, and long term. In the short term, support should go to domestic producers directly affected, while medium- and long-term strategies include strengthening regional cooperation through Regional Comprehensive Economic Partnership Agreement and expanding Indonesia's market to other countries.’’ ABC AU
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Indonesia pushes for global palm oil standards to counter EU Deforestation Law
Deputy Foreign Minister Arif Havas Oegroseno has announced that Indonesia, in collaboration with relevant stakeholders, is preparing a global standard for palm oil management and trade, aimed at countering the European Union Deforestation Regulation (EUDR), which poses challenges for small-scale farmers in Indonesia − particularly those in palm oil, rubber, cocoa, and coffee sectors.
“The European Union has created its own standards without any alternative benchmark. So, we must create our own benchmark outside the EU. We need to establish national or international standards under platforms like CPOPC, BRICS, and FAO,” Arif told the Bioenergy Industry Opportunities and Challenges Seminar in Jakarta on Thursday, July 17, 2025.
Indonesia's initiative has gained traction within the BRICS bloc, where member countries agreed to oppose the EUDR and support the creation of sustainable vegetable oil trade standards. These standards will be developed at a minilateral level and involve the Council of Palm Oil Producing Countries (CPOPC) for regional implementation and the Food and Agriculture Organization (FAO) for global-level standardization.
Arif emphasized Indonesia’s role as a leading global vegetable oil producer and exporter, saying the country must be proactive in setting its own trade standards. An initial discussion with FAO on sustainable vegetable oil trade will take place at the end of July.
“This marks a strategic shift. Indonesia will no longer just react to global rules, it will take the lead in shaping them,” he said.
The EUDR seeks to curb deforestation by ensuring that products entering the EU are not linked to deforested or degraded land. It requires detailed traceability of product origins, which has proven difficult for smallholder farmers and cooperatives in Indonesia.
Arif stressed that palm oil, cocoa, rubber, and coffee producers are particularly vulnerable, as they often lack the capacity to comply with the regulation’s stringent traceability demands. Indonesia Business Post
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Indonesia's B50 mandate could boost palm oil demand by 3mil tonnes: CIMB Securities
KUALA LUMPUR: Domestic palm oil consumption in Indonesia could surge by about three million tonnes should the government implement its B50 biodiesel mandate, CIMB Securities Sdn Bhd said.
The firm noted that this potential increase accounts for about 6.2 per cent of Indonesia's estimated 2024 crude palm oil (CPO) production of 48.2 million tonnes, based on figures from the Indonesian Palm Oil Association (GAPKI).
"We believe that if Indonesia implements B50, it would be supportive of CPO prices in 2026, as the additional demand would likely offset any negative impact from the higher US import tariffs on palm oil (19 per cent for Indonesia and 25 per cent for Malaysia, effective Aug 1, 2025)," it added.
Eniya Listiani Dewi, director general of new and renewable energy at Indonesia's Ministry of Energy and Mineral Resources, said the government is evaluating the feasibility of raising the biodiesel blend to 50 per cent under the B50 programme.
However, no firm decision has been made to implement B50 in 2025, as the government is still consulting experts and assessing feedstock availability and processing capacity. To support the potential rollout, the ministry indicated that five additional biodiesel plants will be needed, with three currently under construction.
CIMB Securities said it is positive on the implementation of B40 in Indonesia, which appears to be on track to meet its 2025 biodiesel target.
The firm said this is anticipated to boost Indonesia's domestic palm oil consumption by two million tonnes and reduce its exportable surplus.
"We are also encouraged by the availability of funding for biodiesel subsidies. To recap, out of the 15.62 million kilolitres (kls) allocated, 7.55 million kls, or 48 per cent, is earmarked for public service obligation (PSO) sectors such as public transport and is fully subsidised.
"The remaining 8.07 million kls will be sold at market prices without subsidy, which explains why subsidised biodiesel consumption of 3.5 million kls is lower than total biodiesel consumption," it noted.
CIMB Securities believes the potential implementation of B50 is a key factor to watch, as it could tighten palm oil exports from Indonesia in 2026.
"The Indonesian Biofuel Producers Association (APROBI) projects that B50 would raise annual biodiesel demand from 15.6 million kls (B40) to approximately 19 million kls, while the Indonesian Ministry of Energy similarly estimates a need for about 19.7 million kls of biodiesel to run B50.
"To achieve this, Indonesia will need to add new plants as current installed capacity stands at around 19.6 million kls," it noted.
Meanwhile, CIMB Securities said Malaysia has set the August gazetted CPO price at RM3,864 per tonne, resulting in an increase in the CPO export tax to nine per cent compared to 8.5 per cent in July.
It added that the combination of a higher Malaysian export tax and the upcoming increase in US import duties from 10 per cent to 25 per cent could boost palm oil exports in July.
This could support CPO prices in the near term, the firm said.
"We maintain our average CPO price forecast of RM4,200 per tonne for 2025 and continue to favour IOI Corporation Bhd and Hap Seng Plantations Holdings Bhd as our top picks in the plantation sector," it said. New Straits Times
Indonesia still negotiating details, exemptions on US tariff deal, official says
JAKARTA, July 18 (Reuters) - Indonesia is still negotiating details of its recently-reached trade deal with the United States after Washington lowered tariff rates on the Southeast Asian country, and is pursuing exemptions for its exports of palm oil and nickel, an official said on Friday.
The two countries reached a trade deal this week that led to a reduction in the threatened U.S. proposed tariff rate to 19% from 32%. The deal was one of only a handful reached so far by the Trump administration ahead of the August 1 negotiation deadline with numerous countries.
Susiwijono Moegiarso, a senior official at the country's economic ministry, told reporters that the two sides were still negotiating the finer details of the agreement, adding that the 19% rate will be imposed on top of existing sectoral tariffs.
Indonesia has asked the United States to exempt its exports of cocoa, rubber, crude palm oil, coffee and nickel from the levy, he said, adding that U.S. technology products will also be exempted from Indonesia's "local content" rules, which require companies to use locally-made components in its manufacturing.
Indonesia is the world's biggest palm oil producer and the biggest supplier to the United States, accounting for 85% of its total imports in 2024.
"This is a good opportunity, this will become a good factor for us," Susiwijono said. "The deal should be good to support our exports."
Indonesia will also buy jets for its flag carrier Garuda Indonesia (GIAA.JK), opens new tab from Boeing, and its state energy firm Pertamina (PERTM.UL) will also import energy from the United States, subject to business reviews, Susiwijono said.
He added that all U.S. goods imported into Indonesia will face zero tariffs, with the exception of alcoholic drinks and pork, and some U.S. goods will be exempted from import quota rules.
A statement from Indonesia's economic ministry said the trade deal with U.S. included agreement of easier import permits for U.S. goods, protection of intellectual property rights, and for Indonesia to comply with international standard on export and import of goods with nuclear components. Reuters
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Indonesia Pushes for Tariff Exemptions on Palm Oil, Coffee Exports to US
Jakarta. Indonesia is pushing for zero tariffs on key export commodities to the United States despite Washington’s 19 percent import tariff on Indonesian products, a senior official said.
Susiwijono Moegiarso, secretary of the Coordinating Ministry for Economic Affairs, said there remains room for negotiation on reciprocal tariffs, with palm oil, nickel, coffee, and cocoa among the products Jakarta hopes can enter the US without duties.
“President has stated that the 19 percent reciprocal tariff from the Trump administration has been set, but there is still room to negotiate,” Susiwijono told reporters on Friday. “Some of our exports are needed by the US and cannot be produced there, so we will negotiate to get the tariff down to zero.”
Indonesia is still finalizing its list of commodities for the talks but is prioritizing products with strong US demand that are difficult to source domestically.
At the same time, Indonesia will maintain import duties on certain US goods despite agreeing to zero tariffs on the vast majority of American imports. From 11,552 tariff lines under the Harmonized System, Indonesia has agreed to exempt 11,474 lines, or approximately 99 percent of US products, from import duties. The remainder, including alcoholic beverages and pork, is expected to continue facing tariffs.
“There are some products we are discussing that will not receive zero-tariff treatment,” Susiwijono said, adding that discussions on product classification are ongoing.
According to the United Nations COMTRADE database, the United States exported goods worth $10.2 billion to Indonesia in 2024. Top American exports to Indonesia include mineral fuels and oils, oilseeds such as soybeans, machinery, organic chemicals, aircraft, and electronic equipment, reflecting Indonesia’s growing demand for US energy, agricultural, and high-tech products.
Indonesia’s tariff exemptions align with its commitments under various free trade agreements, including the ASEAN Trade in Goods Agreement and deals with Australia, New Zealand, and Japan. The country recently concluded a comprehensive economic partnership agreement with the European Union that will allow nearly all Indonesian products to enter Europe duty-free. Jakarta Globe
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Indonesia reaches tariff deal with Donald Trump, but is it a win-win?
Indonesia has become the second Asian nation to reach an agreement with the US, following President Donald Trump's launch of his tariff war on the world in April.
The US would pay no tariffs to Indonesia under the deal, while goods from the South-east Asian nation would face a 19 per cent levy.
Mr Trump had threatened Jakarta with a 32 per cent tariff rate, effective August 1, in a letter sent to Indonesian President Prabowo Subianto last week.
Indonesia runs a trade surplus with Washington, meaning the value of the goods it sells to the US (footwear, clothing, palm oil and rubber) brings in more money than what Indonesia pays to America for things such as oil and gas, electronic products, aircraft components, cereals and pharmaceuticals.
In 2024, the difference was close to $US18 billion in Indonesia’s favour.
What's in the new deal?
In exchange for the tariff reduction, Mr Trump said Indonesia agreed to purchase 50 Boeing aircraft, primarily from the 777 series.
Furthermore, the Indonesian government plans to import US energy commodities valued at $US15 billion and US agricultural products worth $US4.5 billion.
"For the first time ever, our Ranchers, Farmers, and Fishermen will have Complete and Total Access to the Indonesian Market of over 280 million people... U.S. Exports to Indonesia will be Tariff and Non-Tariff Barrier Free," Mr Trump declared.
Is it a good deal for Indonesia?
Mr Prabowo hailed a "new era of mutual benefit" while Indonesian Trade Minister Budi Santoso said the new tariff has the potential to attract significant investment to Indonesia.
He said this week: "We have two things that we can gain: investment inflow, and secondly, an increase in our exports."
However, Bhima Yudhistira, Executive Director of the Centre of Economic and Law Studies (Celios), told Tempo news website that the agreement disadvantages Indonesia.
"[It] actually carries a high risk for Indonesia's trade balance," he said, adding that while exports would benefit, there was a danger American imports could increase dramatically.
He said the agreement didn’t compare well to Vietnam’s deal signed on July 3.
“The difference between Indonesia’s and Vietnam’s tariffs is only 1 per cent, but Vietnam’s manufacturing competitiveness is superior. In this case, we lose,” he told The South China Morning Post.
A win-win was unlikely
Poppy S Winanti, Professor of International Relations at Universitas Gadjah Mada in Yogyakarta, said the current deal on the surface seemed favourable, especially given the initial 32 per cent threat.
“At 19 per cent, Indonesia's tariffs are among the lowest in ASEAN and are competitive with main rivals in the US market, such as Vietnam," she said.
“However, for Indonesian producers, any additional tariffs above previous levels are already burdensome.
“Still, we should recognise that since negotiations began, a win-win outcome was unlikely.
“The Indonesian government’s aim was probably to minimise damages, complemented by efforts to mitigate impacts in the short, medium, and long term. In the short term, support should go to domestic producers directly affected, while medium- and long-term strategies include strengthening regional cooperation through Regional Comprehensive Economic Partnership Agreement and expanding Indonesia's market to other countries.’’ ABC AU
---------
Indonesia pushes for global palm oil standards to counter EU Deforestation Law
Deputy Foreign Minister Arif Havas Oegroseno has announced that Indonesia, in collaboration with relevant stakeholders, is preparing a global standard for palm oil management and trade, aimed at countering the European Union Deforestation Regulation (EUDR), which poses challenges for small-scale farmers in Indonesia − particularly those in palm oil, rubber, cocoa, and coffee sectors.
“The European Union has created its own standards without any alternative benchmark. So, we must create our own benchmark outside the EU. We need to establish national or international standards under platforms like CPOPC, BRICS, and FAO,” Arif told the Bioenergy Industry Opportunities and Challenges Seminar in Jakarta on Thursday, July 17, 2025.
Indonesia's initiative has gained traction within the BRICS bloc, where member countries agreed to oppose the EUDR and support the creation of sustainable vegetable oil trade standards. These standards will be developed at a minilateral level and involve the Council of Palm Oil Producing Countries (CPOPC) for regional implementation and the Food and Agriculture Organization (FAO) for global-level standardization.
Arif emphasized Indonesia’s role as a leading global vegetable oil producer and exporter, saying the country must be proactive in setting its own trade standards. An initial discussion with FAO on sustainable vegetable oil trade will take place at the end of July.
“This marks a strategic shift. Indonesia will no longer just react to global rules, it will take the lead in shaping them,” he said.
The EUDR seeks to curb deforestation by ensuring that products entering the EU are not linked to deforested or degraded land. It requires detailed traceability of product origins, which has proven difficult for smallholder farmers and cooperatives in Indonesia.
Arif stressed that palm oil, cocoa, rubber, and coffee producers are particularly vulnerable, as they often lack the capacity to comply with the regulation’s stringent traceability demands. Indonesia Business Post
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Indonesia's B50 mandate could boost palm oil demand by 3mil tonnes: CIMB Securities
KUALA LUMPUR: Domestic palm oil consumption in Indonesia could surge by about three million tonnes should the government implement its B50 biodiesel mandate, CIMB Securities Sdn Bhd said.
The firm noted that this potential increase accounts for about 6.2 per cent of Indonesia's estimated 2024 crude palm oil (CPO) production of 48.2 million tonnes, based on figures from the Indonesian Palm Oil Association (GAPKI).
"We believe that if Indonesia implements B50, it would be supportive of CPO prices in 2026, as the additional demand would likely offset any negative impact from the higher US import tariffs on palm oil (19 per cent for Indonesia and 25 per cent for Malaysia, effective Aug 1, 2025)," it added.
Eniya Listiani Dewi, director general of new and renewable energy at Indonesia's Ministry of Energy and Mineral Resources, said the government is evaluating the feasibility of raising the biodiesel blend to 50 per cent under the B50 programme.
However, no firm decision has been made to implement B50 in 2025, as the government is still consulting experts and assessing feedstock availability and processing capacity. To support the potential rollout, the ministry indicated that five additional biodiesel plants will be needed, with three currently under construction.
CIMB Securities said it is positive on the implementation of B40 in Indonesia, which appears to be on track to meet its 2025 biodiesel target.
The firm said this is anticipated to boost Indonesia's domestic palm oil consumption by two million tonnes and reduce its exportable surplus.
"We are also encouraged by the availability of funding for biodiesel subsidies. To recap, out of the 15.62 million kilolitres (kls) allocated, 7.55 million kls, or 48 per cent, is earmarked for public service obligation (PSO) sectors such as public transport and is fully subsidised.
"The remaining 8.07 million kls will be sold at market prices without subsidy, which explains why subsidised biodiesel consumption of 3.5 million kls is lower than total biodiesel consumption," it noted.
CIMB Securities believes the potential implementation of B50 is a key factor to watch, as it could tighten palm oil exports from Indonesia in 2026.
"The Indonesian Biofuel Producers Association (APROBI) projects that B50 would raise annual biodiesel demand from 15.6 million kls (B40) to approximately 19 million kls, while the Indonesian Ministry of Energy similarly estimates a need for about 19.7 million kls of biodiesel to run B50.
"To achieve this, Indonesia will need to add new plants as current installed capacity stands at around 19.6 million kls," it noted.
Meanwhile, CIMB Securities said Malaysia has set the August gazetted CPO price at RM3,864 per tonne, resulting in an increase in the CPO export tax to nine per cent compared to 8.5 per cent in July.
It added that the combination of a higher Malaysian export tax and the upcoming increase in US import duties from 10 per cent to 25 per cent could boost palm oil exports in July.
This could support CPO prices in the near term, the firm said.
"We maintain our average CPO price forecast of RM4,200 per tonne for 2025 and continue to favour IOI Corporation Bhd and Hap Seng Plantations Holdings Bhd as our top picks in the plantation sector," it said. New Straits Times
July 17, 2025
US Tariff Cut Gives Indonesia Edge Over Vietnam, Bangladesh in Textile Exports
Jakarta. Indonesia’s textile industry has welcomed the United States’ decision to lower additional import tariffs on Indonesian textile products from a planned 32 percent to 19 percent, a move seen as strengthening the country’s competitiveness in the American market.
“This is already very good, and we appreciate the government’s maximum efforts,” Redma Gita Wirawasta, chairman of the Indonesian Filament Yarn and Fiber Producers Association (Apsyfi), told The Jakarta Globe on Wednesday.
While acknowledging that the 19 percent tariff remains a burden for exporters, Redma said Indonesia’s position is now much more favorable compared to its competitors. He pointed out that Vietnam and Bangladesh face higher tariffs of around 20 percent and 35 percent, respectively, giving Indonesia an edge in the US market.
“The additional 19 percent tariff is burdensome, but at least we can still compete with Vietnam, and even more so with Bangladesh, whose tariff remains at 35 percent. This is quite a relief,” Redma said.
Redma also said the reduced tariff could help protect jobs in Indonesia’s labor-intensive textile industry. “We are grateful that this tariff adjustment can help save many jobs,” he said.
The Indonesian Textile Association (API) had estimated that between 50,000 and 70,000 workers could lose their jobs if the higher 32 percent tariff remained in place.
Looking ahead, Redma urged the government and industry players to remain vigilant about the potential influx of cheap textile products from China if the US. imposes high tariffs on Chinese goods. Such a move could lead China to divert exports to markets like Indonesia, increasing competition for domestic producers.
After US President Donald Trump imposed tariffs of up to 245 percent on imports from China and Beijing responded with its own steep import duties, the two sides agreed to a truce to allow time for talks.
“What needs to be anticipated is how much tariff will be imposed on China. If China faces high tariffs, they may flood other countries, including Indonesia, with cheap products,” Redma warned.
Ready-made garments are among Indonesia’s largest export goods to the US, valued at $1.27 billion between January and May 2025, according to Berita Satu Research. Other top exports include sports shoes, palm oil, knitwear, and footwear.
The tariff reduction is part of a trade agreement announced by US President Donald Trump on Tuesday, under which the US will cut tariffs on Indonesian goods in exchange for Indonesia providing tariff-free access for American products. Trump stated on his Truth Social platform that Indonesia has committed to purchasing $15 billion worth of American energy products, $4.5 billion in agricultural goods, and 50 Boeing aircraft, including Boeing 777 wide-body jets, although he did not specify the timeline for these purchases. Jakarta Globe
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Malaysia forms committee on EU deforestation rule
The Malaysian government has formed a special committee to lead the country’s response to the European Union Deforestation Regulation (EUDR), the New Straits Times reported.
Aimed at ensuring continued access to the European Union (EU) market and strengthening sustainability compliance across key export sectors, the committee’s main priority would be to secure Malaysia's classification as a low-risk country under the EUDR framework, the 26 June report said.
The EUDR requires companies selling or exporting seven commodities – cocoa, coffee, palm oil, soyabean, cattle, rubber and timber – in the EU to ensure they are deforestation-free and legally sourced.
Under the EUDR’s benchmarking system, countries are classified as low, standard or high risk to minimise the EU’s role in global deforestation, with lighter checks for low-risk countries.
Chaired by Plantation and Commodities minister Johari Abdul Ghani, the committee comprised three key ministries: the Ministry of Plantation and Commodities (MPC); and the Ministry of Natural Resources and Environmental Sustainability (NRES); and Ministry of Investment, Trade and Industry (MITI).
As part of its work, the committee was examining how countries like Thailand had attained a low-risk classification, a separate New Straits Times report on 28 June said.
“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,” Abdul Ghani was quoted as saying.
“We need to identify the differences and work on improving them. Eventually, we too will attain a low-risk classification.”
To attain low-risk status, Johari said Malaysia must align its forest governance, certification systems and monitoring practices with international standards.
Cooperation from state governments would be crucial, given their role in forest land management, he added.
Asked about when Malaysia might achieve low-risk status, Johari said some areas “may have exceeded deforestation thresholds, so they will need to be reviewed carefully”.
The government effort underscored Malaysia’s commitment to sustainability across key commodities, including palm oil, rubber, timber and cocoa, which collectively generated MYR186bn (US$43.76bn) in export value last year, the report said. OFI Magazine
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Greater oversight needed in Malaysia over used cooking oil
PETALING JAYA: As more Malaysians turn to selling used cooking oil (UCO) for extra income, stakeholders have raised concerns over how some may exploit this trend by selling new, unused oil as UCO.
The government too is tightening oversight of UCO exports to reinforce governance, prevent fraud and maintain Malaysia’s credibility as a trusted supplier.
UCO collecters say there have been cases where some individuals try to sell new cooking oil under the guise of used oil.
“We have encountered a few suspicious cases in the past,” said Hillton Lee, co-founder of Recircle, a company that simplifies recycling items, such as UCO, through a digital app.
“Such cases usually come through our customer service touchpoints or directly from collection partners.”
In these instances, individuals inquire about buy-back rates and provide information for collection.
“As part of our evaluation process, we request images for verification. Some submissions clearly showed packaged or unused oil, raising immediate red flags,” Lee said.
These requests are rejected as they violate industry regulations.
“Attempting to pass off new oil as used undermines the sustainability goals we’re working to achieve. We take these matters seriously to ensure the transparency and credibility of the buy-back system,” she said.
Subsidised cooking oil is sold at RM2.50 per 1kg packet, which could see some individuals resell it for up to RM3.50 per kilo to UCO collectors.
According to the Association of Used Cooking Oil Development Malaysia, UCO is typically sold in bulk to collectors who transport it to depots for pretreatment by licensed companies. After pretreatment, the UCO is sent to biodiesel manufacturers for conversion into biodiesel.
The International Sustainability Carbon Certification (ISCC) guidance notes that the degraded properties of UCO makes it particularly suitable for specific biodiesel conversion processes.
In contrast, virgin cooking oil is not classified as waste, and its use undermines the sustainability goal of transforming waste into energy. It also competes with the food supply and increases land-use emissions, counteracting the waste-to-energy conversion purpose.
Dr Chatichai Chong, Arus Oil’s chief marketing officer, noted that UCO generally looks darker and has higher acidity compared to virgin oil.
“However, certain oil grades also have a darker tone,” he said.
Arus Oil’s main UCO collections come from households, restaurants and processing factories.
“However, we have yet to encounter fraudulent cases ourselves,” Chong said.
Arus Oil is licensed under the ISCC, requiring them to declare each point of origin for the used cooking oils.
“We also declare our monthly volume with the Malaysian Palm Oil Board (MPOB),” he added.
As part of measures to prevent fraud, government agency MPOB is increasing oversight of UCO exports to strengthen governance.
“The board is reviewing standards and policies to better distinguish UCO from by-products like sludge palm oil (SPO), focusing on export integrity,” said MPOB director-general Datuk Dr Ahmad Parveez Ghulam Kadir.
A key initiative is the Sawit Intelligent Management System (SIMS), a digital platform enhancing traceability from collection to export through real-time data logging and source verification.
“It helps detect irregularities and supports enforcement,” Ahmad Parveez said.
Exporters must meet international certification standards, such as ISCC or equivalent frameworks.
Misuse of subsidised cooking oil, including its diversion into the UCO export stream, is strictly prohibited under MPOB regulations, with offenders facing penalties.
When contacted, Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said it is critical to review UCO and SPO policies to avoid discrepancies and meet strict sustainability demands from overseas buyers. He added that MPOB continues to work with other regulators to monitor the industry closely. The StarMY
US Tariff Cut Gives Indonesia Edge Over Vietnam, Bangladesh in Textile Exports
Jakarta. Indonesia’s textile industry has welcomed the United States’ decision to lower additional import tariffs on Indonesian textile products from a planned 32 percent to 19 percent, a move seen as strengthening the country’s competitiveness in the American market.
“This is already very good, and we appreciate the government’s maximum efforts,” Redma Gita Wirawasta, chairman of the Indonesian Filament Yarn and Fiber Producers Association (Apsyfi), told The Jakarta Globe on Wednesday.
While acknowledging that the 19 percent tariff remains a burden for exporters, Redma said Indonesia’s position is now much more favorable compared to its competitors. He pointed out that Vietnam and Bangladesh face higher tariffs of around 20 percent and 35 percent, respectively, giving Indonesia an edge in the US market.
“The additional 19 percent tariff is burdensome, but at least we can still compete with Vietnam, and even more so with Bangladesh, whose tariff remains at 35 percent. This is quite a relief,” Redma said.
Redma also said the reduced tariff could help protect jobs in Indonesia’s labor-intensive textile industry. “We are grateful that this tariff adjustment can help save many jobs,” he said.
The Indonesian Textile Association (API) had estimated that between 50,000 and 70,000 workers could lose their jobs if the higher 32 percent tariff remained in place.
Looking ahead, Redma urged the government and industry players to remain vigilant about the potential influx of cheap textile products from China if the US. imposes high tariffs on Chinese goods. Such a move could lead China to divert exports to markets like Indonesia, increasing competition for domestic producers.
After US President Donald Trump imposed tariffs of up to 245 percent on imports from China and Beijing responded with its own steep import duties, the two sides agreed to a truce to allow time for talks.
“What needs to be anticipated is how much tariff will be imposed on China. If China faces high tariffs, they may flood other countries, including Indonesia, with cheap products,” Redma warned.
Ready-made garments are among Indonesia’s largest export goods to the US, valued at $1.27 billion between January and May 2025, according to Berita Satu Research. Other top exports include sports shoes, palm oil, knitwear, and footwear.
The tariff reduction is part of a trade agreement announced by US President Donald Trump on Tuesday, under which the US will cut tariffs on Indonesian goods in exchange for Indonesia providing tariff-free access for American products. Trump stated on his Truth Social platform that Indonesia has committed to purchasing $15 billion worth of American energy products, $4.5 billion in agricultural goods, and 50 Boeing aircraft, including Boeing 777 wide-body jets, although he did not specify the timeline for these purchases. Jakarta Globe
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Malaysia forms committee on EU deforestation rule
The Malaysian government has formed a special committee to lead the country’s response to the European Union Deforestation Regulation (EUDR), the New Straits Times reported.
Aimed at ensuring continued access to the European Union (EU) market and strengthening sustainability compliance across key export sectors, the committee’s main priority would be to secure Malaysia's classification as a low-risk country under the EUDR framework, the 26 June report said.
The EUDR requires companies selling or exporting seven commodities – cocoa, coffee, palm oil, soyabean, cattle, rubber and timber – in the EU to ensure they are deforestation-free and legally sourced.
Under the EUDR’s benchmarking system, countries are classified as low, standard or high risk to minimise the EU’s role in global deforestation, with lighter checks for low-risk countries.
Chaired by Plantation and Commodities minister Johari Abdul Ghani, the committee comprised three key ministries: the Ministry of Plantation and Commodities (MPC); and the Ministry of Natural Resources and Environmental Sustainability (NRES); and Ministry of Investment, Trade and Industry (MITI).
As part of its work, the committee was examining how countries like Thailand had attained a low-risk classification, a separate New Straits Times report on 28 June said.
“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,” Abdul Ghani was quoted as saying.
“We need to identify the differences and work on improving them. Eventually, we too will attain a low-risk classification.”
To attain low-risk status, Johari said Malaysia must align its forest governance, certification systems and monitoring practices with international standards.
Cooperation from state governments would be crucial, given their role in forest land management, he added.
Asked about when Malaysia might achieve low-risk status, Johari said some areas “may have exceeded deforestation thresholds, so they will need to be reviewed carefully”.
The government effort underscored Malaysia’s commitment to sustainability across key commodities, including palm oil, rubber, timber and cocoa, which collectively generated MYR186bn (US$43.76bn) in export value last year, the report said. OFI Magazine
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Greater oversight needed in Malaysia over used cooking oil
PETALING JAYA: As more Malaysians turn to selling used cooking oil (UCO) for extra income, stakeholders have raised concerns over how some may exploit this trend by selling new, unused oil as UCO.
The government too is tightening oversight of UCO exports to reinforce governance, prevent fraud and maintain Malaysia’s credibility as a trusted supplier.
UCO collecters say there have been cases where some individuals try to sell new cooking oil under the guise of used oil.
“We have encountered a few suspicious cases in the past,” said Hillton Lee, co-founder of Recircle, a company that simplifies recycling items, such as UCO, through a digital app.
“Such cases usually come through our customer service touchpoints or directly from collection partners.”
In these instances, individuals inquire about buy-back rates and provide information for collection.
“As part of our evaluation process, we request images for verification. Some submissions clearly showed packaged or unused oil, raising immediate red flags,” Lee said.
These requests are rejected as they violate industry regulations.
“Attempting to pass off new oil as used undermines the sustainability goals we’re working to achieve. We take these matters seriously to ensure the transparency and credibility of the buy-back system,” she said.
Subsidised cooking oil is sold at RM2.50 per 1kg packet, which could see some individuals resell it for up to RM3.50 per kilo to UCO collectors.
According to the Association of Used Cooking Oil Development Malaysia, UCO is typically sold in bulk to collectors who transport it to depots for pretreatment by licensed companies. After pretreatment, the UCO is sent to biodiesel manufacturers for conversion into biodiesel.
The International Sustainability Carbon Certification (ISCC) guidance notes that the degraded properties of UCO makes it particularly suitable for specific biodiesel conversion processes.
In contrast, virgin cooking oil is not classified as waste, and its use undermines the sustainability goal of transforming waste into energy. It also competes with the food supply and increases land-use emissions, counteracting the waste-to-energy conversion purpose.
Dr Chatichai Chong, Arus Oil’s chief marketing officer, noted that UCO generally looks darker and has higher acidity compared to virgin oil.
“However, certain oil grades also have a darker tone,” he said.
Arus Oil’s main UCO collections come from households, restaurants and processing factories.
“However, we have yet to encounter fraudulent cases ourselves,” Chong said.
Arus Oil is licensed under the ISCC, requiring them to declare each point of origin for the used cooking oils.
“We also declare our monthly volume with the Malaysian Palm Oil Board (MPOB),” he added.
As part of measures to prevent fraud, government agency MPOB is increasing oversight of UCO exports to strengthen governance.
“The board is reviewing standards and policies to better distinguish UCO from by-products like sludge palm oil (SPO), focusing on export integrity,” said MPOB director-general Datuk Dr Ahmad Parveez Ghulam Kadir.
A key initiative is the Sawit Intelligent Management System (SIMS), a digital platform enhancing traceability from collection to export through real-time data logging and source verification.
“It helps detect irregularities and supports enforcement,” Ahmad Parveez said.
Exporters must meet international certification standards, such as ISCC or equivalent frameworks.
Misuse of subsidised cooking oil, including its diversion into the UCO export stream, is strictly prohibited under MPOB regulations, with offenders facing penalties.
When contacted, Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said it is critical to review UCO and SPO policies to avoid discrepancies and meet strict sustainability demands from overseas buyers. He added that MPOB continues to work with other regulators to monitor the industry closely. The StarMY
July 16, 2025
Trump tariffs live updates: Trump signals drug tariffs may come by Aug. 1, announces deal with Indonesia
President Trump has flagged that US tariffs on pharmaceutical imports are likely to kick in on Aug. 1, with duties on semiconductors also in line for implementation then too.
“Probably at the end of the month, and we’re going to start off with a low tariff and give the pharmaceutical companies a year or so to build, and then we’re going to make it a very high tariff,” Trump told reportes on Tuesday.
The timing means the drug and chip levies would come in alongside the paused "reciprocal" tariffs laid out in April, as well as planned tariffs on copper imports.
Also on Tuesday, Trump said his team has struck a trade deal with Indonesia that will see goods from the country face a 19% tariff.
The announcement comes after Trump unveiled a new batch of letters to over 20 trade partners outlining tariffs on goods imported from their countries beginning in August. The letters set new baseline tariff levels at 20% to 40% — except for a 50% levy on goods from Brazil in a move that waded into the country's domestic politics.
Last week, Trump announced a 35% tariff on Canadian goods and followed that up with promises of 30% duties on Mexico and the EU. The EU has been preparing an extensive list of counter-tariffs that would affect $84 billion of American products should talks fail. Yahoo News
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Latam, Fedepalma ink deal to promote SAF produced using palm oil
In Colombia, La Republica reported that LATAM Airlines Colombia and the National Federation of Palm Oil Growers (Fedepalma) signed a cooperation agreement to work together to promote and develop sustainable aviation fuel, produced from raw materials such as palm oil. The agreement will be valid for five years. The organizations have committed to developing joint initiatives that showcase the potential for producing SAF with criteria of sustainability, traceability, and economic viability. They will also participate in specialized events, design training spaces for decision-makers, visit technical operations, and create collaborative content on SAF. Andrés Felipe García, Director of Sustainability and Market Access at Fedepalmas, said: “The Colombian palm oil sector has significant potential to contribute to the aviation energy transition. This partnership with LATAM allows us to connect the work we’ve done in agriculture with a shared vision of sustainability and productive transformation toward low-carbon products.” Biofuels Digest
----------
Cross River reclaims, hands over rubber plantation to firm for oil palm production
The Cross River State Government has officially handed over the defunct Cross River Rubber Estate Limited (CREL) to Biase Plantations Limited, describing it as a symbol of renewal and economic transformation.
Speaking during the handover ceremony in Uyangha, Akamkpa Local Government Area (LGA) on Tuesday, July 15, 2025, Gov, Bassey Otu said that the state regained control of 8,521-hectare rubber estate through a high court judgement.
Represented by Mr. Johnson Ebokpo, the state Commissioner for Agriculture and Irrigation Development, Otu explained that a High Court in Calabar issued the consent judgment on the estate.
He described the move as “a major step towards reviving the state’s agricultural sector” and thanked all the parties involved, especially the state Attorney General and the legal teams for facilitating the smooth transition.
He said that the new operators planed to turn the estate into a large-scale oil palm plantation, generate jobs, boost rural economies, and increase the state’s Gross Domestic Product (GDP).
He urged Biase Plantations to prioritise local employment, uphold Corporate Social Responsibility (CSR) and maintain peaceful relationship with host communities.
In his remarks, Mr. Arumugam Ananth, General Manager of Biase Plantations Ltd, a subsidiary of Wilmar International, said that it had renamed the rubber estate to “Uyangha Oil Palm Estate”.
He appreciated the state’s trust and pledged to restore the estate, while announcing plans to reopen the estate’s school, establish a training center, and create jobs for the locals.
On his part, the Paramount Ruler of Akamkpa, HRM Ophot Agbor Ebani, lauded the initiative while calling on the company to fulfill its promises. Enviro News Nigeria
Trump tariffs live updates: Trump signals drug tariffs may come by Aug. 1, announces deal with Indonesia
President Trump has flagged that US tariffs on pharmaceutical imports are likely to kick in on Aug. 1, with duties on semiconductors also in line for implementation then too.
“Probably at the end of the month, and we’re going to start off with a low tariff and give the pharmaceutical companies a year or so to build, and then we’re going to make it a very high tariff,” Trump told reportes on Tuesday.
The timing means the drug and chip levies would come in alongside the paused "reciprocal" tariffs laid out in April, as well as planned tariffs on copper imports.
Also on Tuesday, Trump said his team has struck a trade deal with Indonesia that will see goods from the country face a 19% tariff.
The announcement comes after Trump unveiled a new batch of letters to over 20 trade partners outlining tariffs on goods imported from their countries beginning in August. The letters set new baseline tariff levels at 20% to 40% — except for a 50% levy on goods from Brazil in a move that waded into the country's domestic politics.
Last week, Trump announced a 35% tariff on Canadian goods and followed that up with promises of 30% duties on Mexico and the EU. The EU has been preparing an extensive list of counter-tariffs that would affect $84 billion of American products should talks fail. Yahoo News
---------
Latam, Fedepalma ink deal to promote SAF produced using palm oil
In Colombia, La Republica reported that LATAM Airlines Colombia and the National Federation of Palm Oil Growers (Fedepalma) signed a cooperation agreement to work together to promote and develop sustainable aviation fuel, produced from raw materials such as palm oil. The agreement will be valid for five years. The organizations have committed to developing joint initiatives that showcase the potential for producing SAF with criteria of sustainability, traceability, and economic viability. They will also participate in specialized events, design training spaces for decision-makers, visit technical operations, and create collaborative content on SAF. Andrés Felipe García, Director of Sustainability and Market Access at Fedepalmas, said: “The Colombian palm oil sector has significant potential to contribute to the aviation energy transition. This partnership with LATAM allows us to connect the work we’ve done in agriculture with a shared vision of sustainability and productive transformation toward low-carbon products.” Biofuels Digest
----------
Cross River reclaims, hands over rubber plantation to firm for oil palm production
The Cross River State Government has officially handed over the defunct Cross River Rubber Estate Limited (CREL) to Biase Plantations Limited, describing it as a symbol of renewal and economic transformation.
Speaking during the handover ceremony in Uyangha, Akamkpa Local Government Area (LGA) on Tuesday, July 15, 2025, Gov, Bassey Otu said that the state regained control of 8,521-hectare rubber estate through a high court judgement.
Represented by Mr. Johnson Ebokpo, the state Commissioner for Agriculture and Irrigation Development, Otu explained that a High Court in Calabar issued the consent judgment on the estate.
He described the move as “a major step towards reviving the state’s agricultural sector” and thanked all the parties involved, especially the state Attorney General and the legal teams for facilitating the smooth transition.
He said that the new operators planed to turn the estate into a large-scale oil palm plantation, generate jobs, boost rural economies, and increase the state’s Gross Domestic Product (GDP).
He urged Biase Plantations to prioritise local employment, uphold Corporate Social Responsibility (CSR) and maintain peaceful relationship with host communities.
In his remarks, Mr. Arumugam Ananth, General Manager of Biase Plantations Ltd, a subsidiary of Wilmar International, said that it had renamed the rubber estate to “Uyangha Oil Palm Estate”.
He appreciated the state’s trust and pledged to restore the estate, while announcing plans to reopen the estate’s school, establish a training center, and create jobs for the locals.
On his part, the Paramount Ruler of Akamkpa, HRM Ophot Agbor Ebani, lauded the initiative while calling on the company to fulfill its promises. Enviro News Nigeria
July 15, 2025
Will landmark EUDR frameworks buckle under the weight of political pressure?
This past week, the European Union’s flagship deforestation legislation known as the EUDR appeared under greater pressure from those opposed to its introduction than ever.
The stakes remain unbelievably high, in that having spent years in thrashing out the details of a landmark policy that would for the first time compel businesses to maintain mandatory environmental performance standards, it seems the tide is turning against these critical frameworks.
While the cocoa trade, and other key agricultural sectors are far from the only offenders in terms of negatively contributing to forest loss, there’s no denying that they have been part of the problem over the past five decades, along with a tide of other issues, including major logging operations, and the ever-concerning march of illegal gold mining in the West African regions of Ghana and Ivory Coast.
As Confectionery Production reported recently, significant concern has already been raised by industry observers and environmental groups including Mighty Earth, as well as many major players within the confectionery sector, that urgent introduction of clear policies designed to foster greater environmental policies, alongside ensuring heightened social rights for all within commodities value chains, including farmers, had to be delivered without any further political wrangling.
However, a huge spanner in the works was unleashed with (an albeit non-binding) European Parliament vote that appeared to set the process back significantly, through demonstrating that there was now a narrow, very vocal majority in favour of seeking yet further amendments to the much-anticipated EUDR frameworks – which have already been delayed by a year after intense political and industrial lobbying.
A further twist emerged when Mondelez declared that it was seeking to extend the already delayed process for a further year on the grounds “that it could damage a €70 billion industry’s competitiveness” which in truth seems at odds with its stated aims on sustainability policies of targeting environmental gains in its supply chains. It has since claimed that it does still back the introduction of the legislation, but argues that more time is needed on the ground for its implementation. But in truth, there will never be a politically or economically ideal moment to bring this mega legislation into being.
Indeed, its move places it at odds with other major companies including Mars and Nestle that had recently signed a letter urging the legislation to be moved forward as soon as possible without additional delays.
Clearly, the fly in the ointment in this situation is the unwelcome arrival of US tariffs within the past six months that have left many countries and corporations around the world particularly nervous about precisely what they will be left to pick up the tab with in terms of additional costs of operating.
As I’ve noted before, the introduction of the EUDR and its parallel due diligence frameworks (which are also facing delays in the EU Parliament), was intended to create a far more level playing field for the entire industry, not just the elite privileged few.
However, the consistent chipping away at the EU Commission’s frameworks from right wing political groups in the EU, as well as from a limited number of industrial groups, has seen the whole EUDR initiative being underlined – perhaps fatally if any further pushbacks on its proposed timelines are successfully lobbied for by groups that have prioritised profits over the planet and its people. The next couple of months are going to be especially crucial on this – will the Commission hold firm, or will it bow to commercial pressures. For the environment’s sake, let us hope it is the former.
Neill Barston, editor, Confectionery Production magazine
---------
Malaysians show strong support for sustainable palm oil, MSPO: Trada survey
PETALING JAYA: Malaysians strongly support sustainably produced palm oil and place high trust in the Malaysian Sustainable Palm Oil (MSPO) certification scheme.
A national survey commissioned by Dayak Transformation Association (Trada) showed that persistent misconceptions on palm oil and health should be addressed, particularly among younger Malaysians, who will shape the future of the industry.
Trada president Joseph Janting welcomed the findings, noting the growing public trust in sustainable palm oil and Malaysia’s leadership in responsible production.
Business
Malaysians show strong support for sustainable palm oil, MSPO: Trada survey
SunBiz
2025-07-14 07:22 PM
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Joseph says misconceptions on palm oil and health should be addressed.
Joseph says misconceptions on palm oil and health should be addressed.
PETALING JAYA: Malaysians strongly support sustainably produced palm oil and place high trust in the Malaysian Sustainable Palm Oil (MSPO) certification scheme.
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A national survey commissioned by Dayak Transformation Association (Trada) showed that persistent misconceptions on palm oil and health should be addressed, particularly among younger Malaysians, who will shape the future of the industry.
Trada president Joseph Janting welcomed the findings, noting the growing public trust in sustainable palm oil and Malaysia’s leadership in responsible production.
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“This survey shows that Malaysians understand the importance of sustainability, and that MSPO plays a key role in building trust. It is encouraging to see continued public support for strengthening industry standards,” he said in a statement.
Conducted in 2024 by the independent research firm Green Zebras Sdn Bhd, the survey engaged 1,000 respondents aged 18 to 50 across Peninsular and East Malaysia. The results showed that 62% of Malaysians believe palm oil is produced in an environmentally friendly manner.
Among those who were aware of the MSPO certification, 96% agreed that independent certification is essential.
Additionally, 99% believed MSPO supports fair labour practices, while 75% said the government is prioritising sustainability.
However, Joseph expressed concern over lingering health misconceptions.
While 54% considered palm oil to be healthy, 37% still associated it with high cholesterol.
“It is surprising that although most Malaysians use palm oil in their everyday cooking, many are still unsure whether it is suitable for their health. This shows that more needs to be done to help people understand the real facts,” he said.
He stressed the importance of involving youth in public education efforts, particularly in regions like Sarawak, where many young people are directly connected to agricultural communities.
“Young Malaysians, especially those in East Malaysia, have a personal stake in the future of the palm oil industry.
“They are the next generation of consumers, communicators and producers. It is crucial that they are equipped with accurate, science-based knowledge so they can speak with confidence about what this industry truly represents,” he added.
Trada is calling for a coordinated national effort to improve understanding of palm oil’s health profile, sustainability standards and contribution to the economy.
This includes collaboration with ministries, universities, youth groups, health experts and NGOs to deliver accurate and accessible information through education platforms, social media and community outreach.
Joseph said MSPO’s role in strengthening sustainable practices must be matched by better public awareness.
“MSPO has helped raise the bar for how palm oil is produced in Malaysia. But to sustain that progress, Malaysians, and especially the youth, must know why MSPO matters. They must feel confident that palm oil is not only produced responsibly, but also beneficial to consume.”
Trada urged all stakeholders to build a future-ready national narrative which connects sustainability, health, and national pride, By equipping the next generation with knowledge and clarity, Malaysia can continue to lead globally, not only in production but also in transparency, accountability and public trust. The SunMY
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The hidden power in your kitchen: Why scientists are studying palm oil's secret vitamin
We all know vitamin E - it's that friendly ingredient found in moisturizers and supplement bottles. But did you know there's a powerful form of vitamin E, tucked away in palm oil, that scientists across the globe have been studying for its anti-inflammatory and antioxidant properties?
Meet tocotrienols, a lesser-known form of vitamin E that research from around the world has shown can support brain and heart health and liver function. Vitamin E comes in eight forms, but only two families matter most: tocopherols (the kind you will usually see in supplements) and tocotrienols. They may sound similar, but their effects can be dramatically different.
Tocotrienols are up to 40-60 timesmore powerful as antioxidants compared to tocopherols and thanks to their unique molecular shape, tocotrienols are able to travel more quickly and deeply into cell membranes, enabling them to neutralize harmful free radicals more efficiently.
Palm oil is especially rich in tocotrienols. The distribution of vitamin E in palm oil is 30% tocopherols and 70% tocotrienols. In contrast, other commonly used dietary vegetable oils, including corn, olive, peanut, sesame, soybean, and sunflower, contain tocopherols exclusively. This explains some of palm oil’s health benefits, from neuroprotection against Alzheimer's to supporting cardiovascular health and even exhibiting anti-cancer properties.
Tocotrienols act as scavenger molecules, neutralizing harmful free radicals that damage cells5. The natural tocotrienols and beta-carotene6 compounds found in palm oil have been linked to improved cardiovascular health and reducing the risk of age-related neurodegenerative diseases. By incorporating palm oil into a balanced diet, positive strides can be made towards supporting heart health.
Leading nutrition experts are taking notice of this established research. Dr. Barrie Tan, a trailblazer and the world’s foremost expert on vitamin E, has been researching tocotrienols since the 1990s. His work helped identify sources of this compound in palm oil, rice bran, and annatto seeds. He believes tocotrienols are one of the most exciting discoveries in nutrition science today, especially for their effects in fatty organs like the brain and liver.
Closer to home, Dr. Eman Gamal, a Clinical Nutrition Specialist practicing in Riyadh, shares this perspective: "Tocotrienols are an exciting area of nutritional science, especially given their potential antioxidant and anti-inflammatory properties. Research has linked vitamin E forms like tocotrienols to better heart health, brain function, and protection of liver cells. These compounds also play a role in supporting skin health and may help slow aspects of the aging process. Including natural sources of vitamin E as part of a balanced diet is one way to support overall wellness."
Scientific reviews have documented tocotrienols' role in reducing inflammation, an underlying factor in many chronic conditions. A 2022 study published in the Journal of Functional Foods, examined how tocotrienols interact with inflammation pathways. The researchers found that tocotrienols significantly reduced markers of inflammation in preclinical studies.
Another comprehensive review, published by researchers in Oxidative Medicine and Cellular Longevity, documented tocotrienols' benefits for brain function, cardiovascular health, and even skin aging. Importantly, they noted that tocotrienols showed no recognized adverse effects in the clinical studies they reviewed, making them a safe and promising area for continued research.
A particularly revealing Swedish study conducted by the Karolinska Institute4 found that individuals with Alzheimer's disease or mild cognitive impairment had lower levels of tocotrienols and tocopherols in their blood compared to healthy individuals, establishing a clear link between vitamin E forms and cognitive health.
The consistent findings demonstrate that tocotrienols deliver measurable health benefits. With documented effects on inflammation, brain health, and cardiovascular wellness, and with no known side effects, tocotrienols have earned their place in serious nutritional research.
As research continues to build on these established benefits, it's remarkable to consider how compounds in everyday ingredients can contribute to better health. The growing body of evidence shows that sometimes the most powerful nutrients are hiding in plain sight, quietly supporting our wellbeing through ingredients we use every day. The science is clear: these lesser-known nutrients have been delivering real benefits all along. Saudi Gazette
Will landmark EUDR frameworks buckle under the weight of political pressure?
This past week, the European Union’s flagship deforestation legislation known as the EUDR appeared under greater pressure from those opposed to its introduction than ever.
The stakes remain unbelievably high, in that having spent years in thrashing out the details of a landmark policy that would for the first time compel businesses to maintain mandatory environmental performance standards, it seems the tide is turning against these critical frameworks.
While the cocoa trade, and other key agricultural sectors are far from the only offenders in terms of negatively contributing to forest loss, there’s no denying that they have been part of the problem over the past five decades, along with a tide of other issues, including major logging operations, and the ever-concerning march of illegal gold mining in the West African regions of Ghana and Ivory Coast.
As Confectionery Production reported recently, significant concern has already been raised by industry observers and environmental groups including Mighty Earth, as well as many major players within the confectionery sector, that urgent introduction of clear policies designed to foster greater environmental policies, alongside ensuring heightened social rights for all within commodities value chains, including farmers, had to be delivered without any further political wrangling.
However, a huge spanner in the works was unleashed with (an albeit non-binding) European Parliament vote that appeared to set the process back significantly, through demonstrating that there was now a narrow, very vocal majority in favour of seeking yet further amendments to the much-anticipated EUDR frameworks – which have already been delayed by a year after intense political and industrial lobbying.
A further twist emerged when Mondelez declared that it was seeking to extend the already delayed process for a further year on the grounds “that it could damage a €70 billion industry’s competitiveness” which in truth seems at odds with its stated aims on sustainability policies of targeting environmental gains in its supply chains. It has since claimed that it does still back the introduction of the legislation, but argues that more time is needed on the ground for its implementation. But in truth, there will never be a politically or economically ideal moment to bring this mega legislation into being.
Indeed, its move places it at odds with other major companies including Mars and Nestle that had recently signed a letter urging the legislation to be moved forward as soon as possible without additional delays.
Clearly, the fly in the ointment in this situation is the unwelcome arrival of US tariffs within the past six months that have left many countries and corporations around the world particularly nervous about precisely what they will be left to pick up the tab with in terms of additional costs of operating.
As I’ve noted before, the introduction of the EUDR and its parallel due diligence frameworks (which are also facing delays in the EU Parliament), was intended to create a far more level playing field for the entire industry, not just the elite privileged few.
However, the consistent chipping away at the EU Commission’s frameworks from right wing political groups in the EU, as well as from a limited number of industrial groups, has seen the whole EUDR initiative being underlined – perhaps fatally if any further pushbacks on its proposed timelines are successfully lobbied for by groups that have prioritised profits over the planet and its people. The next couple of months are going to be especially crucial on this – will the Commission hold firm, or will it bow to commercial pressures. For the environment’s sake, let us hope it is the former.
Neill Barston, editor, Confectionery Production magazine
---------
Malaysians show strong support for sustainable palm oil, MSPO: Trada survey
PETALING JAYA: Malaysians strongly support sustainably produced palm oil and place high trust in the Malaysian Sustainable Palm Oil (MSPO) certification scheme.
A national survey commissioned by Dayak Transformation Association (Trada) showed that persistent misconceptions on palm oil and health should be addressed, particularly among younger Malaysians, who will shape the future of the industry.
Trada president Joseph Janting welcomed the findings, noting the growing public trust in sustainable palm oil and Malaysia’s leadership in responsible production.
Business
Malaysians show strong support for sustainable palm oil, MSPO: Trada survey
SunBiz
2025-07-14 07:22 PM
facebook sharing buttontwitter sharing buttonwhatsapp sharing buttontelegram sharing buttonemail sharing buttonprint sharing button
Joseph says misconceptions on palm oil and health should be addressed.
Joseph says misconceptions on palm oil and health should be addressed.
PETALING JAYA: Malaysians strongly support sustainably produced palm oil and place high trust in the Malaysian Sustainable Palm Oil (MSPO) certification scheme.
recommended by
A national survey commissioned by Dayak Transformation Association (Trada) showed that persistent misconceptions on palm oil and health should be addressed, particularly among younger Malaysians, who will shape the future of the industry.
Trada president Joseph Janting welcomed the findings, noting the growing public trust in sustainable palm oil and Malaysia’s leadership in responsible production.
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“This survey shows that Malaysians understand the importance of sustainability, and that MSPO plays a key role in building trust. It is encouraging to see continued public support for strengthening industry standards,” he said in a statement.
Conducted in 2024 by the independent research firm Green Zebras Sdn Bhd, the survey engaged 1,000 respondents aged 18 to 50 across Peninsular and East Malaysia. The results showed that 62% of Malaysians believe palm oil is produced in an environmentally friendly manner.
Among those who were aware of the MSPO certification, 96% agreed that independent certification is essential.
Additionally, 99% believed MSPO supports fair labour practices, while 75% said the government is prioritising sustainability.
However, Joseph expressed concern over lingering health misconceptions.
While 54% considered palm oil to be healthy, 37% still associated it with high cholesterol.
“It is surprising that although most Malaysians use palm oil in their everyday cooking, many are still unsure whether it is suitable for their health. This shows that more needs to be done to help people understand the real facts,” he said.
He stressed the importance of involving youth in public education efforts, particularly in regions like Sarawak, where many young people are directly connected to agricultural communities.
“Young Malaysians, especially those in East Malaysia, have a personal stake in the future of the palm oil industry.
“They are the next generation of consumers, communicators and producers. It is crucial that they are equipped with accurate, science-based knowledge so they can speak with confidence about what this industry truly represents,” he added.
Trada is calling for a coordinated national effort to improve understanding of palm oil’s health profile, sustainability standards and contribution to the economy.
This includes collaboration with ministries, universities, youth groups, health experts and NGOs to deliver accurate and accessible information through education platforms, social media and community outreach.
Joseph said MSPO’s role in strengthening sustainable practices must be matched by better public awareness.
“MSPO has helped raise the bar for how palm oil is produced in Malaysia. But to sustain that progress, Malaysians, and especially the youth, must know why MSPO matters. They must feel confident that palm oil is not only produced responsibly, but also beneficial to consume.”
Trada urged all stakeholders to build a future-ready national narrative which connects sustainability, health, and national pride, By equipping the next generation with knowledge and clarity, Malaysia can continue to lead globally, not only in production but also in transparency, accountability and public trust. The SunMY
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The hidden power in your kitchen: Why scientists are studying palm oil's secret vitamin
We all know vitamin E - it's that friendly ingredient found in moisturizers and supplement bottles. But did you know there's a powerful form of vitamin E, tucked away in palm oil, that scientists across the globe have been studying for its anti-inflammatory and antioxidant properties?
Meet tocotrienols, a lesser-known form of vitamin E that research from around the world has shown can support brain and heart health and liver function. Vitamin E comes in eight forms, but only two families matter most: tocopherols (the kind you will usually see in supplements) and tocotrienols. They may sound similar, but their effects can be dramatically different.
Tocotrienols are up to 40-60 timesmore powerful as antioxidants compared to tocopherols and thanks to their unique molecular shape, tocotrienols are able to travel more quickly and deeply into cell membranes, enabling them to neutralize harmful free radicals more efficiently.
Palm oil is especially rich in tocotrienols. The distribution of vitamin E in palm oil is 30% tocopherols and 70% tocotrienols. In contrast, other commonly used dietary vegetable oils, including corn, olive, peanut, sesame, soybean, and sunflower, contain tocopherols exclusively. This explains some of palm oil’s health benefits, from neuroprotection against Alzheimer's to supporting cardiovascular health and even exhibiting anti-cancer properties.
Tocotrienols act as scavenger molecules, neutralizing harmful free radicals that damage cells5. The natural tocotrienols and beta-carotene6 compounds found in palm oil have been linked to improved cardiovascular health and reducing the risk of age-related neurodegenerative diseases. By incorporating palm oil into a balanced diet, positive strides can be made towards supporting heart health.
Leading nutrition experts are taking notice of this established research. Dr. Barrie Tan, a trailblazer and the world’s foremost expert on vitamin E, has been researching tocotrienols since the 1990s. His work helped identify sources of this compound in palm oil, rice bran, and annatto seeds. He believes tocotrienols are one of the most exciting discoveries in nutrition science today, especially for their effects in fatty organs like the brain and liver.
Closer to home, Dr. Eman Gamal, a Clinical Nutrition Specialist practicing in Riyadh, shares this perspective: "Tocotrienols are an exciting area of nutritional science, especially given their potential antioxidant and anti-inflammatory properties. Research has linked vitamin E forms like tocotrienols to better heart health, brain function, and protection of liver cells. These compounds also play a role in supporting skin health and may help slow aspects of the aging process. Including natural sources of vitamin E as part of a balanced diet is one way to support overall wellness."
Scientific reviews have documented tocotrienols' role in reducing inflammation, an underlying factor in many chronic conditions. A 2022 study published in the Journal of Functional Foods, examined how tocotrienols interact with inflammation pathways. The researchers found that tocotrienols significantly reduced markers of inflammation in preclinical studies.
Another comprehensive review, published by researchers in Oxidative Medicine and Cellular Longevity, documented tocotrienols' benefits for brain function, cardiovascular health, and even skin aging. Importantly, they noted that tocotrienols showed no recognized adverse effects in the clinical studies they reviewed, making them a safe and promising area for continued research.
A particularly revealing Swedish study conducted by the Karolinska Institute4 found that individuals with Alzheimer's disease or mild cognitive impairment had lower levels of tocotrienols and tocopherols in their blood compared to healthy individuals, establishing a clear link between vitamin E forms and cognitive health.
The consistent findings demonstrate that tocotrienols deliver measurable health benefits. With documented effects on inflammation, brain health, and cardiovascular wellness, and with no known side effects, tocotrienols have earned their place in serious nutritional research.
As research continues to build on these established benefits, it's remarkable to consider how compounds in everyday ingredients can contribute to better health. The growing body of evidence shows that sometimes the most powerful nutrients are hiding in plain sight, quietly supporting our wellbeing through ingredients we use every day. The science is clear: these lesser-known nutrients have been delivering real benefits all along. Saudi Gazette
July 14, 2025
EU strikes deal with Indonesia to strengthen trade ties
The long-awaited pact comes as the U.S. imposes tariffs on trade partners.
The European Union and Indonesia reached an agreement on Sunday to move ahead on a trade deal, marking a major breakthrough between two of the world’s largest economies against the backdrop of global trade tensions.
The two sides “reached a political agreement to advance the trade agreement," European Commission President Ursula von der Leyen said in a statement Sunday.
"In a volatile world, this is the strength of partnerships,” she said ahead of a joint appearance with Indonesian President Prabowo Subianto.
Subianto arrived in Brussels over the weekend for talks in a bid to secure tariff-free access to the EU for Indonesian goods under the Comprehensive Economic Partnership Agreement (CEPA). While a deal had been under development, one key sticking point had been trade in palm oil products, which conflict with the EU’s anti-deforestation policies.
"We are living in turbulent times and, when economic uncertainty meets geopolitical volatility, partners like us must come closer together," von der Leyen said in a joint press conference. "So today we're taking a big step forward in this partnership."
The move comes just a day after U.S. President Donald Trump sent a letter to Brussels declaring EU exports to the country would be subject to 30 percent tariffs starting Aug. 1, despite Brussels having scrambled to reach a deal with Washington. Two diplomats told POLITICO that they hoped the grace period gave additional time to negotiate an exemption.
“For Indonesia, CEPA is not only about trade, it is about fairness, respect, and building a strong future together,” said Subianto. “The agreement must support our efforts to grow our industries, create jobs, and strengthen our sustainable development goals," he said.
"We are ready to finalize it soon, in a way that benefits both our peoples,” Subianto said. Politico
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Prabowo Urges Stronger EU Investment as Landmark Free Trade Deal Nears Ratification
Brussels. President Prabowo Subianto on Sunday called on European countries to increase their investment and technological cooperation with Indonesia, as both sides move toward finalizing a landmark free trade agreement.
Speaking alongside European Commission President Ursula von der Leyen in Brussels, Prabowo lauded the European Union’s leadership in science, technology, and finance, highlighting the potential of a deeper partnership with Indonesia.
“On the other hand, we have critical resources and a key part of ASEAN. So, the partnership between Europe and Indonesia will make a very important contribution to the economic and geopolitical stability in the world,” Prabowo said. “We’d like to see more European presence and participation in our economy.”
Indonesia and the EU have concluded a decade of negotiations for the Comprehensive Economic Partnership Agreement (CEPA), which is slated for ratification later this year.
European Way
Von der Leyen thanked Prabowo for his leadership in bringing the long-awaited trade deal to a conclusion but stressed Europe’s commitment to sustainable and responsible business practices.
“Europe wants not only a secure supply, but also a responsible supply,” von der Leyen said. “That means respect for the environment, respect for the local communities, and a clear focus on good jobs and local value creation. This is the European way of doing business, and you can count on us.”
he described Indonesia as a key economic partner whose potential has yet to be fully tapped.
“Indonesia is one of the largest economies in the world, with a GDP of 1.2 trillion euros. It is a leading supplier of goods that are vital for the digital and green transition, and it represents a growing market of over 287 million people. Together, we represent a market of 730 million people,” von der Leyen said.
Despite this, Indonesia remains only the EU’s fifth-largest trading partner and fifth-biggest recipient of foreign direct investment among ASEAN countries.
“So, there's a lot of untapped potential in our trade relationship, and therefore, this agreement comes at the right time. The new agreement will open new markets. It will create more opportunities in key industries. Business activities in agriculture, automotive, and services will massively benefit from it,” she said.
The CEPA is also expected to strengthen supply chains for critical raw materials essential to Europe’s clean energy and digital transition. Under CEPA, 80 percent of Indonesia’s exports to the EU are expected to enjoy zero tariffs within one to two years of implementation, benefiting labor-intensive industries such as footwear, textiles, garments, palm oil, fisheries, renewable energy, and electric vehicles.
Throughout negotiations, the EU raised concerns about local content requirements (TKDN), automotive sector access, critical minerals, and investment incentives. Indonesia, meanwhile, pushed for fairer treatment of its fishery exports, seeking parity with ASEAN neighbors like Thailand and the Philippines. The two sides ultimately agreed to ensure a level playing field for Indonesian fishery products.
The Indonesian government estimates CEPA could boost its exports to the EU by over 50 percent within three to four years by improving market access and eliminating trade barriers.
The EU is Indonesia’s fifth-largest trading partner, with bilateral trade reaching $30.1 billion in 2024. Indonesia posted a $4.5 billion trade surplus with the bloc last year.
Cabinet Secretary Teddy Indra Wijaya described the president's visit as a new milestone in Indonesia's economic diplomacy because it opens the way for expanded market access in developed nations for Indonesian goods. Teddy also said Prabowo will make a courtesy call on Belgium's King Philippe after he meets with EU leaders.
“The upcoming meeting seeks to strengthen bilateral ties and explore potential collaborations in various sectors between Indonesia and Belgium,” Teddy said. Jakarta Globe
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RSPO closes GVL complaint
Sinoe County – The Roundtable on Sustainable Palm Oil (RSPO) has closed the long-standing complaint against Golden Veroleum Liberia (GVL), following a final directive from the RSPO Complaints Panel. This move ends restrictions on new developments in Butaw and Tarjuowon that had been paused during the complaint period.
The complaint alleged that GVL did not fully follow Free, Prior and Informed Consent (FPIC) principles in its developments, and was first filed by Green Advocates on behalf of communities in Sinoe.
Following the complaint, the RSPO asked GVL to cease all land development in Butaw and Tarjuowon until the matter was resolved.
To address these grievances, GVL engaged the services of The Forest Trust (now Earthworm Foundation) to conduct ground investigations and advise the company on improved implementation of FPIC processes.
GVL also launched its Sustainability Action Plan to further strengthen its social and environmental protections and ensure continued compliance with RSPO Principles and Criteria and other sustainability commitments.
GVL welcomes the ongoing efforts of the Government of Liberia, host communities and all stakeholders, including its staff, that have led to this resolution. GVL remains committed to fulfilling the obligations contained in its Concession Agreement and the Principles and Criteria of RSPO. New Dawn Liberia
EU strikes deal with Indonesia to strengthen trade ties
The long-awaited pact comes as the U.S. imposes tariffs on trade partners.
The European Union and Indonesia reached an agreement on Sunday to move ahead on a trade deal, marking a major breakthrough between two of the world’s largest economies against the backdrop of global trade tensions.
The two sides “reached a political agreement to advance the trade agreement," European Commission President Ursula von der Leyen said in a statement Sunday.
"In a volatile world, this is the strength of partnerships,” she said ahead of a joint appearance with Indonesian President Prabowo Subianto.
Subianto arrived in Brussels over the weekend for talks in a bid to secure tariff-free access to the EU for Indonesian goods under the Comprehensive Economic Partnership Agreement (CEPA). While a deal had been under development, one key sticking point had been trade in palm oil products, which conflict with the EU’s anti-deforestation policies.
"We are living in turbulent times and, when economic uncertainty meets geopolitical volatility, partners like us must come closer together," von der Leyen said in a joint press conference. "So today we're taking a big step forward in this partnership."
The move comes just a day after U.S. President Donald Trump sent a letter to Brussels declaring EU exports to the country would be subject to 30 percent tariffs starting Aug. 1, despite Brussels having scrambled to reach a deal with Washington. Two diplomats told POLITICO that they hoped the grace period gave additional time to negotiate an exemption.
“For Indonesia, CEPA is not only about trade, it is about fairness, respect, and building a strong future together,” said Subianto. “The agreement must support our efforts to grow our industries, create jobs, and strengthen our sustainable development goals," he said.
"We are ready to finalize it soon, in a way that benefits both our peoples,” Subianto said. Politico
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Prabowo Urges Stronger EU Investment as Landmark Free Trade Deal Nears Ratification
Brussels. President Prabowo Subianto on Sunday called on European countries to increase their investment and technological cooperation with Indonesia, as both sides move toward finalizing a landmark free trade agreement.
Speaking alongside European Commission President Ursula von der Leyen in Brussels, Prabowo lauded the European Union’s leadership in science, technology, and finance, highlighting the potential of a deeper partnership with Indonesia.
“On the other hand, we have critical resources and a key part of ASEAN. So, the partnership between Europe and Indonesia will make a very important contribution to the economic and geopolitical stability in the world,” Prabowo said. “We’d like to see more European presence and participation in our economy.”
Indonesia and the EU have concluded a decade of negotiations for the Comprehensive Economic Partnership Agreement (CEPA), which is slated for ratification later this year.
European Way
Von der Leyen thanked Prabowo for his leadership in bringing the long-awaited trade deal to a conclusion but stressed Europe’s commitment to sustainable and responsible business practices.
“Europe wants not only a secure supply, but also a responsible supply,” von der Leyen said. “That means respect for the environment, respect for the local communities, and a clear focus on good jobs and local value creation. This is the European way of doing business, and you can count on us.”
he described Indonesia as a key economic partner whose potential has yet to be fully tapped.
“Indonesia is one of the largest economies in the world, with a GDP of 1.2 trillion euros. It is a leading supplier of goods that are vital for the digital and green transition, and it represents a growing market of over 287 million people. Together, we represent a market of 730 million people,” von der Leyen said.
Despite this, Indonesia remains only the EU’s fifth-largest trading partner and fifth-biggest recipient of foreign direct investment among ASEAN countries.
“So, there's a lot of untapped potential in our trade relationship, and therefore, this agreement comes at the right time. The new agreement will open new markets. It will create more opportunities in key industries. Business activities in agriculture, automotive, and services will massively benefit from it,” she said.
The CEPA is also expected to strengthen supply chains for critical raw materials essential to Europe’s clean energy and digital transition. Under CEPA, 80 percent of Indonesia’s exports to the EU are expected to enjoy zero tariffs within one to two years of implementation, benefiting labor-intensive industries such as footwear, textiles, garments, palm oil, fisheries, renewable energy, and electric vehicles.
Throughout negotiations, the EU raised concerns about local content requirements (TKDN), automotive sector access, critical minerals, and investment incentives. Indonesia, meanwhile, pushed for fairer treatment of its fishery exports, seeking parity with ASEAN neighbors like Thailand and the Philippines. The two sides ultimately agreed to ensure a level playing field for Indonesian fishery products.
The Indonesian government estimates CEPA could boost its exports to the EU by over 50 percent within three to four years by improving market access and eliminating trade barriers.
The EU is Indonesia’s fifth-largest trading partner, with bilateral trade reaching $30.1 billion in 2024. Indonesia posted a $4.5 billion trade surplus with the bloc last year.
Cabinet Secretary Teddy Indra Wijaya described the president's visit as a new milestone in Indonesia's economic diplomacy because it opens the way for expanded market access in developed nations for Indonesian goods. Teddy also said Prabowo will make a courtesy call on Belgium's King Philippe after he meets with EU leaders.
“The upcoming meeting seeks to strengthen bilateral ties and explore potential collaborations in various sectors between Indonesia and Belgium,” Teddy said. Jakarta Globe
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RSPO closes GVL complaint
Sinoe County – The Roundtable on Sustainable Palm Oil (RSPO) has closed the long-standing complaint against Golden Veroleum Liberia (GVL), following a final directive from the RSPO Complaints Panel. This move ends restrictions on new developments in Butaw and Tarjuowon that had been paused during the complaint period.
The complaint alleged that GVL did not fully follow Free, Prior and Informed Consent (FPIC) principles in its developments, and was first filed by Green Advocates on behalf of communities in Sinoe.
Following the complaint, the RSPO asked GVL to cease all land development in Butaw and Tarjuowon until the matter was resolved.
To address these grievances, GVL engaged the services of The Forest Trust (now Earthworm Foundation) to conduct ground investigations and advise the company on improved implementation of FPIC processes.
GVL also launched its Sustainability Action Plan to further strengthen its social and environmental protections and ensure continued compliance with RSPO Principles and Criteria and other sustainability commitments.
GVL welcomes the ongoing efforts of the Government of Liberia, host communities and all stakeholders, including its staff, that have led to this resolution. GVL remains committed to fulfilling the obligations contained in its Concession Agreement and the Principles and Criteria of RSPO. New Dawn Liberia
July 13, 2025
Indonesia Courts EU Leaders in Brussels to Finalize Zero-Tariff Trade Deal
Jakarta. President Prabowo Subianto arrived in Brussels on Saturday for high-level talks with European Union leaders, including European Commission President Ursula von der Leyen, as Indonesia pushes to finalize a landmark trade deal aimed at eliminating tariffs on its exports to the bloc.
The visit follows stalled negotiations with the United States, where Indonesia faces a 32 percent “reciprocal tariff” imposed by former President Donald Trump.
Prabowo was accompanied by Chief Economic Minister Airlangga Hartarto -- who led the earlier US negotiations -- along with Investment Minister Rosan Roeslani, Cabinet Secretary Teddy Indra Wijaya, and Trade Minister Budi Santoso.
Airlangga said the Brussels trip is focused on concluding the long-delayed Indonesia-European Union Comprehensive Economic Partnership Agreement (CEPA), which has been under negotiation for nine years and is now at the ratification stage.
“This agreement marks a new milestone amid uncertainties in Indonesia-EU economic ties,” Airlangga said in a video statement broadcast Sunday by the State Secretariat’s YouTube channel.
Once ratified, CEPA will eliminate tariffs on a substantial share of bilateral trade. “Indonesian goods will enter the European market with zero percent tariffs,” Airlangga said, noting that the official signing is scheduled for the third quarter of 2025 in Jakarta.
He added that the deal comes as global economic and geopolitical dynamics shift: “Indonesia is set to become the EU’s strategic partner as we progress toward OECD membership. Indonesia’s economy will continue its strong growth, and they see Indonesia as ASEAN’s economic anchor -- the gateway to the region.”
Saturday’s visit marks Airlangga’s second trip to Brussels in two months, following a final round of CEPA negotiations last month, where both sides resolved remaining technical issues.
Airlangga’s announcement came after a meeting with European Commissioner for Trade and Economic Security Maroš Šefčovič in Brussels.
The EU is Indonesia’s fifth-largest trading partner, with bilateral trade reaching $30.1 billion in 2024. Indonesia posted a $4.5 billion trade surplus with the EU last year.
“Indonesia and the EU recognize this as a critical moment,” Airlangga said during his earlier visit. “Our key commodities complement rather than compete. Finalizing this agreement will jointly strengthen global supply chains.”
Zero Tariffs
Under CEPA, 80 percent of Indonesia’s exports to the EU are expected to enjoy zero tariffs within one to two years of implementation. Sectors set to benefit include labor-intensive industries such as footwear, textiles, and garments, as well as palm oil, fisheries, renewable energy, and electric vehicles.
During negotiations, the EU raised concerns over local content requirements (TKDN), automotive sector access, critical minerals, and investment incentives.
Indonesia, in turn, pressed for equitable treatment of its fishery exports, seeking parity with ASEAN neighbors such as Thailand and the Philippines. Airlangga said the EU had agreed to ensure a level playing field for Indonesian fishery products.
On the EU’s deforestation regulations, Commissioner Šefčovič assured Indonesian officials that special consideration would be given -- a pledge Airlangga said would safeguard Indonesia’s forest-based exports.
The Indonesian government estimates that CEPA could boost its exports to the EU by over 50 percent within three to four years by improving market access and removing key trade barriers. Jakarta Globe
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Trump’s Chaos Strategy Is Hurting His Allies -- Not Just His Rivals
Indonesia: A Partner Undermined
Indonesia, despite its historically friendly relationship with the US, has not been spared. Jakarta now faces a 32 percent tariff on key exports to the US, affecting palm oil, electronics, textiles, rubber goods, and footwear. These sectors form the backbone of Indonesia's export economy.
This is especially frustrating considering that Indonesia had proactively offered significant concessions to the US:
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ASEAN-EU partnership must be equal, fair, inclusive: Sugiono
Jakarta (ANTARA) - Foreign Minister Sugiono emphasized the importance of an equal, fair, and inclusive partnership between ASEAN and the European Union (EU) to maximize potential cooperation at the ASEAN-EU Post Ministerial Conference in Kuala Lumpur, Malaysia.
In a press release issued by the Ministry of Foreign Affairs in Jakarta on Friday, Sugiono lauded the progress of ongoing free trade agreement (FTA) negotiations between the EU and several ASEAN member states, including Indonesia.
The minister also highlighted the ongoing ASEAN-EU relationship in other sectors, such as sustainable development and the energy transition.
However, he said that in order to move forward, unilateral steps that could hurt ASEAN or the EU and do not reflect their relationship as strategic partners must be avoided.
“The big economic potential of ASEAN-EU can only be realized through mutually beneficial and non-discriminatory policies,” he said.
According to Sugiono, ASEAN-EU dialogue must continue to be maintained, including through the continuation of the Joint Working Group on Palm Oil, the Comprehensive Air Transport Agreement, and exploration of potential cooperation within the Indo-Pacific framework.
During the meeting with the EU, he cited the situation in Palestine and the Middle East and said that economic success would be difficult to achieve if global geopolitical uncertainty persists.
“Indonesia welcomes EU countries providing support to Palestine. However, the ongoing crisis in Gaza requires stronger collective action,” he added and expressed the hope for greater EU support for efforts to resolve the conflict in Gaza.
He said that the unresolved situation in Gaza and the lack of legal enforcement and accountability have eroded the credibility of the international legal order and could potentially ignite conflicts in other parts of the world. Antara News
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Rotterdam flooded with counterfeit biofuels, threatening Europe’s climate agenda
A surge of fraud tied to biobased fuels imported through Rotterdam is undermining Europe’s climate goals, according to environmental organizations and experts who say Dutch authorities have little understanding of the full scale of deception.
The Dutch Emissions Authority, or NEa, which oversees the origin and sustainability of biobased fuels in the Netherlands, admits it does not know how widespread the fraud is. “We don’t know what we don’t see,” NEa director Mark Bressers told NOS. “If we keep doing what we’re doing now, it won’t end well.”
Biobased fuels, made from materials such as plants, fats or food waste, are central to European targets to cut greenhouse gases. The European Union has pledged to reduce CO2 emissions by 90 percent by 2040 compared with 1990 levels, aiming for climate neutrality by 2050. In 2024, biobased fuels accounted for 14 percent of a typical fuel tank.
In the Netherlands, more than 90 percent of biobased fuels come from waste or residual streams considered highly sustainable. Used cooking oil and palm oil mill effluent, known as POME, are particularly valued because they qualify for European subsidies and count double toward fuel companies’ sustainability goals.
But the lucrative incentives also create what Bressers called strong motives for fraud throughout the supply chain, from suppliers of raw materials to processing facilities. “There are strong incentives to commit fraud,” Bressers told NOS.
Investigations by Transport & Environment, a European environmental organization, revealed that companies are falsifying documents and mislabeling products on a massive scale. Non-sustainable materials, including virgin cooking oil and fresh palm oil, are falsely labeled as waste streams like used cooking oil and POME. Some companies mix non-sustainable products with genuine waste and then forge certificates that are supposed to guarantee the sustainability and origin of the fuels.
Environmental groups say the impact on emissions is severe. “We are emitting far more CO2 than we think,” said Nienke Onnen of the Dutch group Natuur & Milieu. “We achieve climate gains only on paper, not in practice.”
So-called counterfeit biobased fuels can be as polluting as fossil fuels. In some cases, they are even worse because palm oil is associated with deforestation in Indonesia and Malaysia. This has led the European Union to partly ban palm oil in biobased fuels.
Yet much of the questionable material still reportedly enters Europe through the Netherlands. Less than 5 percent of the used cooking oil converted into fuel in the Netherlands originates domestically. The majority is imported, mainly from China. POME is not produced in the Netherlands at all and largely comes from Indonesia and Malaysia.
A 2024 analysis by Transport & Environment found that Malaysia exported three times more POME than it actually produced and imported. In 2023, the EU and United Kingdom together reported processing more than twice the estimated globally available quantity of POME.
Such discrepancies have fueled suspicion of systemic fraud in Asia, which hampers enforcement. “It is a global chain that ends here at a gas station and starts in, for example, Malaysia or Indonesia,” Bressers told NOS. “In the Netherlands, we can audit records and conduct inspections, but it is much harder to do that over there.”
Even within the Netherlands, oversight faces technical obstacles. POME and fresh palm oil cannot be distinguished chemically, making inspections nearly impossible once materials are blended. Used and unused cooking oils pose the same problem. “Our knowledge is growing, and it will have to keep growing in the coming period,” Bressers told NOS.
Natuur & Milieu remains skeptical about the NEa’s capacity to police the trade. “The NEa currently supervises only the companies based in the Netherlands,” Onnen told NOS. “We advocate for more collaboration and inspections earlier in the chain. European regulators must be able to conduct physical checks in countries outside Europe.” NL Times
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ENI's biofuel projects in the ‘breadbasket of Congo’ could threaten food security, investigation finds
The company claims it is using ‘degraded lands’, but Congo is in dire need of more homegrown food according to the UN.
Some fields are abandoned, others are being ploughed again by local families in Louvakou, in the Niari department of southwestern Congo. We fly a drone over rain-soaked lands, where until a year ago one of the agricultural projects of Eni Congo, a subsidiary of the Italian oil company Eni, was located.
The project was managed by the Luxembourg-based company Agri Resources, which had a concession of 29,000 hectares of land and experimented with the cultivation of castor oil, intended to supply Eni’s biofuel production in Italy.
“Agri Resources is not here anymore,” says Joseph Ngoma Koukebene, chief of the nearby Kibindouka village during our visit last November. The chief sits in his yard while telling us that the project has failed, apparently due to poor productivity.
Louvakou is one of three sites in the Republic of Congo where Eni began experimenting in 2022 with the cultivation of castor oil, a non-food crop to be grown “on degraded lands” as a “sustainable agri-feedstock” for biofuels, it said. These are vegetable oils that are not meant to cause deforestation nor compete with food production.
But while these projects are abandoned or still under evaluation, in May this year the company began producing agri-feedstock with other edible crops, such as sunflower and soy, which could have a negative impact on local food security.
What is an Italian oil company doing in Congo?
Eni plans to increase its global bio-refinery capacity from 1.65 million tonnes per year to 5 million tonnes of biofuels and over 2 million tonnes of Sustainable Aviation Fuels by 2030.
To date, Eni mainly produces biofuels using controversial palm oil by-products imported from Indonesia and Malaysia such as PFAD and POME, and Used Cooking Oils.
In order to produce alternative feedstocks and increase production, the company has launched agricultural projects in several countries since 2021, including Congo, Kenya, Mozambique and Ivory Coast.
“To address the availability of feedstock, we have several ongoing projects called agri-hubs, which are focused on producing vegetable oils grown on degraded lands,” Stefano Ballista, director of Enilive, another satellite company of Eni, tells us during a visit in June to a biorefinery in Porto Marghera, Venice.
According to Ballista, the company “aims to produce 700,000 tonnes of vegetable oils” globally by 2028.
In Congo, Eni had originally planned to produce 20,000 tonnes by 2023 from castor oil, brassica and safflower, reaching 250,000 tonnes by 2030. But things went differently: the castor oil project in Louvakou closed its doors, while two others, in the departments of Bouenza and Pool, are still in an experimental phase.
Meanwhile, at the end of May, Eni Congo inaugurated an agri-hub in Loudima, in the Bouenza district.
According to the local press, this pressing plant will produce 30,000 tonnes of vegetable oils destined for bio-refining in 2025, and is supplied by an agricultural production of 1.1 million tonnes of agricultural products such as soy and sunflower, grown on 15,000 hectares. Euro News
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Exclusive: Sweden-Malaysia, Moving Beyond Trade
In January 2025, Malaysia’s trade with the European Union (EU), which accounted for 7.1% of Malaysia’s total trade, decreased by 4.1% year-on-year to RM17.13 billion. This decline was driven by a 2.6% reduction in exports, totaling RM9.69 billion, primarily due to lower shipments of petroleum products, metal manufactures, and iron and steel products. However, export expansions were observed in palm oil and palm oil-based products, as well as chemicals and chemical products. Imports from the EU also saw a decline, dropping 6.1% to RM7.44 billion.
While overall trade with the EU bloc experienced a contraction, specific markets within the EU recorded growth. Notably, trade with Sweden surged by 23% to RM107 million in January 2025.
Amidst a global trade shake-up and the anticipation of the impending EU-Malaysia Free Trade Agreement (FTA), there is potential for a turnaround in Malaysia’s trade trajectory with the EU.
To gain deeper insights into the EU’s outlook on ASEAN and Malaysia, and the sudden surge in trade with Sweden, BusinessToday interviewed Sweden’s Ambassador to Malaysia, His Excellency Niklas Wiberg. Ambassador Wiberg, who is familiar with local culture and its warm seas, shared his views on the long-standing relationship between the two nations.
Sweden established diplomatic relations with Malaysia in 1958 with the appointment of Jens Malling, who also served as Ambassador to Indonesia, as envoy extraordinary and minister plenipotentiary to Kuala Lumpur. The first Swedish Embassy in Kuala Lumpur was inaugurated in 1969, headed by Count Axel Lewenhaupt, who simultaneously served as Ambassador to Thailand. Sweden’s first resident ambassador to Kuala Lumpur was appointed in 1976.
After more than 60 years of steady and strong growth, Ambassador Wiberg is keen to deepen this relationship further. Sweden is particularly focused on the “Twin Transition”—green energy and digital transformation—as a key area where advanced Swedish technology can benefit Malaysia and the wider ASEAN region.
In his recent interview with BusinessToday, Ambassador Wiberg emphasized Malaysia’s strategic importance as a hub for Swedish companies and highlighted the potential for increased cooperation in sustainable and innovative sectors. Approaching his one-year anniversary in Malaysia, Ambassador Wiberg expressed a positive outlook on the country, noting significant possibilities for enhanced cooperation, particularly facilitated by the potential EU-Malaysia FTA.
Sweden’s Investment in Malaysia Accelerates
The Ambassador emphasised that Malaysia remains one of Sweden’s most important trading partners in Southeast Asia. The favorable business climate, ease of doing business, and access to regional markets have attracted significant investment.
Swedish Foreign Direct Investment (FDI) in Malaysia has seen a substantial increase, rising from RM113 million in 2014 to RM1.43 billion in 2014. Wiberg attributed this growth to Malaysia’s stable business environment and its emergence as an attractive destination for companies seeking supply chain diversification and risk balancing in the current geopolitical landscape.
There are currently over 100 Swedish companies operating in Malaysia, many of whom have been present since the 1960s. These include traditional industrial giants like ABB, Atlas Copco, Volvo, IKEA, and Scania, as well as firms specialising in digital and green technologies, such as Ericsson.
A core theme of the discussion was the collaboration on sustainability. Ambassador Wiberg noted that Sweden has successfully decoupled economic growth from increased CO2 emissions and hopes to share this expertise with Malaysia.
The Ambassador highlighted Ericsson’s role in supporting Malaysia’s rapid deployment of 5G infrastructure, positioning the country as a leader in connectivity within the region. He emphasized that a robust, high-speed network is vital for Malaysia’s future competitiveness.
Renewable energy is a key area of interest for Swedish companies, particularly in solar energy storage and grid optimization. The Ambassador specifically mentioned Sarawak’s potential as a regional hub for green power and renewables, including green hydrogen production, leveraging its hydropower resources. Swedish companies are currently involved in projects like floating solar plants, waste-to-energy, and biomass initiatives in Sarawak.
While acknowledging Malaysia’s stated priorities in the National Energy Transition Roadmap and the New Industrial Master Plan, Wiberg noted that the main challenge lies in the rapid implementation of these goals. He pointed specifically to the slow progress in realizing Malaysia’s green transportation sector for buses, trucks, and cars.
“We invite Malaysian businesses and policymakers to engage with Sweden not only as a trade partner, but as a collaborative force for progress—one that shares Malaysia’s ambitions for a greener economy, resilient supply chains, and future-ready industries. Together, we can co-create solutions that are not only profitable, but also sustainable and transformative, ‘he added.
On the Malaysia EU-FTA, Ambassador Wiberg expressed hope for accelerated negotiations which has faced delays for over a decade. He believes the agreement would reinforce Malaysia’s position as a strategic investment location by providing a more credible and stable framework.
Wiberg said “Advancements of Free Trade Agreements, especially a Free Trade Agreement between EU and Malaysia, is critical to reduce trade barriers, improve market access, and foster sustainable, rules-based trade in the region.”
He also acknowledged the trend of European countries diversifying their trade relationships following difficulties in progressing with agreements with the United States. This trend has led Europe to look more closely at growth potentials in other parts of the world, including Southeast Asia and Malaysia. Business Today
Indonesia Courts EU Leaders in Brussels to Finalize Zero-Tariff Trade Deal
Jakarta. President Prabowo Subianto arrived in Brussels on Saturday for high-level talks with European Union leaders, including European Commission President Ursula von der Leyen, as Indonesia pushes to finalize a landmark trade deal aimed at eliminating tariffs on its exports to the bloc.
The visit follows stalled negotiations with the United States, where Indonesia faces a 32 percent “reciprocal tariff” imposed by former President Donald Trump.
Prabowo was accompanied by Chief Economic Minister Airlangga Hartarto -- who led the earlier US negotiations -- along with Investment Minister Rosan Roeslani, Cabinet Secretary Teddy Indra Wijaya, and Trade Minister Budi Santoso.
Airlangga said the Brussels trip is focused on concluding the long-delayed Indonesia-European Union Comprehensive Economic Partnership Agreement (CEPA), which has been under negotiation for nine years and is now at the ratification stage.
“This agreement marks a new milestone amid uncertainties in Indonesia-EU economic ties,” Airlangga said in a video statement broadcast Sunday by the State Secretariat’s YouTube channel.
Once ratified, CEPA will eliminate tariffs on a substantial share of bilateral trade. “Indonesian goods will enter the European market with zero percent tariffs,” Airlangga said, noting that the official signing is scheduled for the third quarter of 2025 in Jakarta.
He added that the deal comes as global economic and geopolitical dynamics shift: “Indonesia is set to become the EU’s strategic partner as we progress toward OECD membership. Indonesia’s economy will continue its strong growth, and they see Indonesia as ASEAN’s economic anchor -- the gateway to the region.”
Saturday’s visit marks Airlangga’s second trip to Brussels in two months, following a final round of CEPA negotiations last month, where both sides resolved remaining technical issues.
Airlangga’s announcement came after a meeting with European Commissioner for Trade and Economic Security Maroš Šefčovič in Brussels.
The EU is Indonesia’s fifth-largest trading partner, with bilateral trade reaching $30.1 billion in 2024. Indonesia posted a $4.5 billion trade surplus with the EU last year.
“Indonesia and the EU recognize this as a critical moment,” Airlangga said during his earlier visit. “Our key commodities complement rather than compete. Finalizing this agreement will jointly strengthen global supply chains.”
Zero Tariffs
Under CEPA, 80 percent of Indonesia’s exports to the EU are expected to enjoy zero tariffs within one to two years of implementation. Sectors set to benefit include labor-intensive industries such as footwear, textiles, and garments, as well as palm oil, fisheries, renewable energy, and electric vehicles.
During negotiations, the EU raised concerns over local content requirements (TKDN), automotive sector access, critical minerals, and investment incentives.
Indonesia, in turn, pressed for equitable treatment of its fishery exports, seeking parity with ASEAN neighbors such as Thailand and the Philippines. Airlangga said the EU had agreed to ensure a level playing field for Indonesian fishery products.
On the EU’s deforestation regulations, Commissioner Šefčovič assured Indonesian officials that special consideration would be given -- a pledge Airlangga said would safeguard Indonesia’s forest-based exports.
The Indonesian government estimates that CEPA could boost its exports to the EU by over 50 percent within three to four years by improving market access and removing key trade barriers. Jakarta Globe
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Trump’s Chaos Strategy Is Hurting His Allies -- Not Just His Rivals
Indonesia: A Partner Undermined
Indonesia, despite its historically friendly relationship with the US, has not been spared. Jakarta now faces a 32 percent tariff on key exports to the US, affecting palm oil, electronics, textiles, rubber goods, and footwear. These sectors form the backbone of Indonesia's export economy.
This is especially frustrating considering that Indonesia had proactively offered significant concessions to the US:
- Near-zero tariffs for US goods entering Indonesia.
- A $34 billion US product purchase agreement.
- Access to critical minerals like nickel, copper, and cobalt.
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ASEAN-EU partnership must be equal, fair, inclusive: Sugiono
Jakarta (ANTARA) - Foreign Minister Sugiono emphasized the importance of an equal, fair, and inclusive partnership between ASEAN and the European Union (EU) to maximize potential cooperation at the ASEAN-EU Post Ministerial Conference in Kuala Lumpur, Malaysia.
In a press release issued by the Ministry of Foreign Affairs in Jakarta on Friday, Sugiono lauded the progress of ongoing free trade agreement (FTA) negotiations between the EU and several ASEAN member states, including Indonesia.
The minister also highlighted the ongoing ASEAN-EU relationship in other sectors, such as sustainable development and the energy transition.
However, he said that in order to move forward, unilateral steps that could hurt ASEAN or the EU and do not reflect their relationship as strategic partners must be avoided.
“The big economic potential of ASEAN-EU can only be realized through mutually beneficial and non-discriminatory policies,” he said.
According to Sugiono, ASEAN-EU dialogue must continue to be maintained, including through the continuation of the Joint Working Group on Palm Oil, the Comprehensive Air Transport Agreement, and exploration of potential cooperation within the Indo-Pacific framework.
During the meeting with the EU, he cited the situation in Palestine and the Middle East and said that economic success would be difficult to achieve if global geopolitical uncertainty persists.
“Indonesia welcomes EU countries providing support to Palestine. However, the ongoing crisis in Gaza requires stronger collective action,” he added and expressed the hope for greater EU support for efforts to resolve the conflict in Gaza.
He said that the unresolved situation in Gaza and the lack of legal enforcement and accountability have eroded the credibility of the international legal order and could potentially ignite conflicts in other parts of the world. Antara News
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Rotterdam flooded with counterfeit biofuels, threatening Europe’s climate agenda
A surge of fraud tied to biobased fuels imported through Rotterdam is undermining Europe’s climate goals, according to environmental organizations and experts who say Dutch authorities have little understanding of the full scale of deception.
The Dutch Emissions Authority, or NEa, which oversees the origin and sustainability of biobased fuels in the Netherlands, admits it does not know how widespread the fraud is. “We don’t know what we don’t see,” NEa director Mark Bressers told NOS. “If we keep doing what we’re doing now, it won’t end well.”
Biobased fuels, made from materials such as plants, fats or food waste, are central to European targets to cut greenhouse gases. The European Union has pledged to reduce CO2 emissions by 90 percent by 2040 compared with 1990 levels, aiming for climate neutrality by 2050. In 2024, biobased fuels accounted for 14 percent of a typical fuel tank.
In the Netherlands, more than 90 percent of biobased fuels come from waste or residual streams considered highly sustainable. Used cooking oil and palm oil mill effluent, known as POME, are particularly valued because they qualify for European subsidies and count double toward fuel companies’ sustainability goals.
But the lucrative incentives also create what Bressers called strong motives for fraud throughout the supply chain, from suppliers of raw materials to processing facilities. “There are strong incentives to commit fraud,” Bressers told NOS.
Investigations by Transport & Environment, a European environmental organization, revealed that companies are falsifying documents and mislabeling products on a massive scale. Non-sustainable materials, including virgin cooking oil and fresh palm oil, are falsely labeled as waste streams like used cooking oil and POME. Some companies mix non-sustainable products with genuine waste and then forge certificates that are supposed to guarantee the sustainability and origin of the fuels.
Environmental groups say the impact on emissions is severe. “We are emitting far more CO2 than we think,” said Nienke Onnen of the Dutch group Natuur & Milieu. “We achieve climate gains only on paper, not in practice.”
So-called counterfeit biobased fuels can be as polluting as fossil fuels. In some cases, they are even worse because palm oil is associated with deforestation in Indonesia and Malaysia. This has led the European Union to partly ban palm oil in biobased fuels.
Yet much of the questionable material still reportedly enters Europe through the Netherlands. Less than 5 percent of the used cooking oil converted into fuel in the Netherlands originates domestically. The majority is imported, mainly from China. POME is not produced in the Netherlands at all and largely comes from Indonesia and Malaysia.
A 2024 analysis by Transport & Environment found that Malaysia exported three times more POME than it actually produced and imported. In 2023, the EU and United Kingdom together reported processing more than twice the estimated globally available quantity of POME.
Such discrepancies have fueled suspicion of systemic fraud in Asia, which hampers enforcement. “It is a global chain that ends here at a gas station and starts in, for example, Malaysia or Indonesia,” Bressers told NOS. “In the Netherlands, we can audit records and conduct inspections, but it is much harder to do that over there.”
Even within the Netherlands, oversight faces technical obstacles. POME and fresh palm oil cannot be distinguished chemically, making inspections nearly impossible once materials are blended. Used and unused cooking oils pose the same problem. “Our knowledge is growing, and it will have to keep growing in the coming period,” Bressers told NOS.
Natuur & Milieu remains skeptical about the NEa’s capacity to police the trade. “The NEa currently supervises only the companies based in the Netherlands,” Onnen told NOS. “We advocate for more collaboration and inspections earlier in the chain. European regulators must be able to conduct physical checks in countries outside Europe.” NL Times
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ENI's biofuel projects in the ‘breadbasket of Congo’ could threaten food security, investigation finds
The company claims it is using ‘degraded lands’, but Congo is in dire need of more homegrown food according to the UN.
Some fields are abandoned, others are being ploughed again by local families in Louvakou, in the Niari department of southwestern Congo. We fly a drone over rain-soaked lands, where until a year ago one of the agricultural projects of Eni Congo, a subsidiary of the Italian oil company Eni, was located.
The project was managed by the Luxembourg-based company Agri Resources, which had a concession of 29,000 hectares of land and experimented with the cultivation of castor oil, intended to supply Eni’s biofuel production in Italy.
“Agri Resources is not here anymore,” says Joseph Ngoma Koukebene, chief of the nearby Kibindouka village during our visit last November. The chief sits in his yard while telling us that the project has failed, apparently due to poor productivity.
Louvakou is one of three sites in the Republic of Congo where Eni began experimenting in 2022 with the cultivation of castor oil, a non-food crop to be grown “on degraded lands” as a “sustainable agri-feedstock” for biofuels, it said. These are vegetable oils that are not meant to cause deforestation nor compete with food production.
But while these projects are abandoned or still under evaluation, in May this year the company began producing agri-feedstock with other edible crops, such as sunflower and soy, which could have a negative impact on local food security.
What is an Italian oil company doing in Congo?
Eni plans to increase its global bio-refinery capacity from 1.65 million tonnes per year to 5 million tonnes of biofuels and over 2 million tonnes of Sustainable Aviation Fuels by 2030.
To date, Eni mainly produces biofuels using controversial palm oil by-products imported from Indonesia and Malaysia such as PFAD and POME, and Used Cooking Oils.
In order to produce alternative feedstocks and increase production, the company has launched agricultural projects in several countries since 2021, including Congo, Kenya, Mozambique and Ivory Coast.
“To address the availability of feedstock, we have several ongoing projects called agri-hubs, which are focused on producing vegetable oils grown on degraded lands,” Stefano Ballista, director of Enilive, another satellite company of Eni, tells us during a visit in June to a biorefinery in Porto Marghera, Venice.
According to Ballista, the company “aims to produce 700,000 tonnes of vegetable oils” globally by 2028.
In Congo, Eni had originally planned to produce 20,000 tonnes by 2023 from castor oil, brassica and safflower, reaching 250,000 tonnes by 2030. But things went differently: the castor oil project in Louvakou closed its doors, while two others, in the departments of Bouenza and Pool, are still in an experimental phase.
Meanwhile, at the end of May, Eni Congo inaugurated an agri-hub in Loudima, in the Bouenza district.
According to the local press, this pressing plant will produce 30,000 tonnes of vegetable oils destined for bio-refining in 2025, and is supplied by an agricultural production of 1.1 million tonnes of agricultural products such as soy and sunflower, grown on 15,000 hectares. Euro News
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Exclusive: Sweden-Malaysia, Moving Beyond Trade
In January 2025, Malaysia’s trade with the European Union (EU), which accounted for 7.1% of Malaysia’s total trade, decreased by 4.1% year-on-year to RM17.13 billion. This decline was driven by a 2.6% reduction in exports, totaling RM9.69 billion, primarily due to lower shipments of petroleum products, metal manufactures, and iron and steel products. However, export expansions were observed in palm oil and palm oil-based products, as well as chemicals and chemical products. Imports from the EU also saw a decline, dropping 6.1% to RM7.44 billion.
While overall trade with the EU bloc experienced a contraction, specific markets within the EU recorded growth. Notably, trade with Sweden surged by 23% to RM107 million in January 2025.
Amidst a global trade shake-up and the anticipation of the impending EU-Malaysia Free Trade Agreement (FTA), there is potential for a turnaround in Malaysia’s trade trajectory with the EU.
To gain deeper insights into the EU’s outlook on ASEAN and Malaysia, and the sudden surge in trade with Sweden, BusinessToday interviewed Sweden’s Ambassador to Malaysia, His Excellency Niklas Wiberg. Ambassador Wiberg, who is familiar with local culture and its warm seas, shared his views on the long-standing relationship between the two nations.
Sweden established diplomatic relations with Malaysia in 1958 with the appointment of Jens Malling, who also served as Ambassador to Indonesia, as envoy extraordinary and minister plenipotentiary to Kuala Lumpur. The first Swedish Embassy in Kuala Lumpur was inaugurated in 1969, headed by Count Axel Lewenhaupt, who simultaneously served as Ambassador to Thailand. Sweden’s first resident ambassador to Kuala Lumpur was appointed in 1976.
After more than 60 years of steady and strong growth, Ambassador Wiberg is keen to deepen this relationship further. Sweden is particularly focused on the “Twin Transition”—green energy and digital transformation—as a key area where advanced Swedish technology can benefit Malaysia and the wider ASEAN region.
In his recent interview with BusinessToday, Ambassador Wiberg emphasized Malaysia’s strategic importance as a hub for Swedish companies and highlighted the potential for increased cooperation in sustainable and innovative sectors. Approaching his one-year anniversary in Malaysia, Ambassador Wiberg expressed a positive outlook on the country, noting significant possibilities for enhanced cooperation, particularly facilitated by the potential EU-Malaysia FTA.
Sweden’s Investment in Malaysia Accelerates
The Ambassador emphasised that Malaysia remains one of Sweden’s most important trading partners in Southeast Asia. The favorable business climate, ease of doing business, and access to regional markets have attracted significant investment.
Swedish Foreign Direct Investment (FDI) in Malaysia has seen a substantial increase, rising from RM113 million in 2014 to RM1.43 billion in 2014. Wiberg attributed this growth to Malaysia’s stable business environment and its emergence as an attractive destination for companies seeking supply chain diversification and risk balancing in the current geopolitical landscape.
There are currently over 100 Swedish companies operating in Malaysia, many of whom have been present since the 1960s. These include traditional industrial giants like ABB, Atlas Copco, Volvo, IKEA, and Scania, as well as firms specialising in digital and green technologies, such as Ericsson.
A core theme of the discussion was the collaboration on sustainability. Ambassador Wiberg noted that Sweden has successfully decoupled economic growth from increased CO2 emissions and hopes to share this expertise with Malaysia.
The Ambassador highlighted Ericsson’s role in supporting Malaysia’s rapid deployment of 5G infrastructure, positioning the country as a leader in connectivity within the region. He emphasized that a robust, high-speed network is vital for Malaysia’s future competitiveness.
Renewable energy is a key area of interest for Swedish companies, particularly in solar energy storage and grid optimization. The Ambassador specifically mentioned Sarawak’s potential as a regional hub for green power and renewables, including green hydrogen production, leveraging its hydropower resources. Swedish companies are currently involved in projects like floating solar plants, waste-to-energy, and biomass initiatives in Sarawak.
While acknowledging Malaysia’s stated priorities in the National Energy Transition Roadmap and the New Industrial Master Plan, Wiberg noted that the main challenge lies in the rapid implementation of these goals. He pointed specifically to the slow progress in realizing Malaysia’s green transportation sector for buses, trucks, and cars.
“We invite Malaysian businesses and policymakers to engage with Sweden not only as a trade partner, but as a collaborative force for progress—one that shares Malaysia’s ambitions for a greener economy, resilient supply chains, and future-ready industries. Together, we can co-create solutions that are not only profitable, but also sustainable and transformative, ‘he added.
On the Malaysia EU-FTA, Ambassador Wiberg expressed hope for accelerated negotiations which has faced delays for over a decade. He believes the agreement would reinforce Malaysia’s position as a strategic investment location by providing a more credible and stable framework.
Wiberg said “Advancements of Free Trade Agreements, especially a Free Trade Agreement between EU and Malaysia, is critical to reduce trade barriers, improve market access, and foster sustainable, rules-based trade in the region.”
He also acknowledged the trend of European countries diversifying their trade relationships following difficulties in progressing with agreements with the United States. This trend has led Europe to look more closely at growth potentials in other parts of the world, including Southeast Asia and Malaysia. Business Today
July 11, 2025
Indonesia creates new palm oil giant
Indonesia handed over nearly 400,000 hectares of confiscated oil palm plantations to Agrinas Palma Nusantara on Wednesday, giving the new state-owned company a massive land bank that could make it one of the world’s largest oil palm producers.
The plantations were seized by the government’s forestry task force from companies that violate the country’s laws, Reuters reported. The government has not disclosed their names, but there are more than 230 of them.
Agrinas is a fast-growing palm oil start-up created in January by the administration of President Prabowo Subianto through the restructuring of an infrastructure services firm. As of March, Agrinas had been managing about 221,000 hectares of plantations. The task force transferred the rest of the land to the firm yesterday. With the addition of the new plantations, the total area under Agrinas’ management will exceed 833,000 hectares. The company’s current production level is 6,000 tons of raw material daily.
Defense Minister Sjafri Sjamsoeddine, who heads the forestry task force, said authorities have so far confiscated more than 2 million hectares of illegal plantations in forested areas across the country. He said the task force aims to seize a total of 3 million hectares of land by August, which will either be preserved for oil palm and other plantations or reforested.
It was previously reported that Indonesian palm oil exports to the United States could decline due to the threat of a 32% U.S. tariff on Indonesian goods. UKR Agraconsult
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Confiscated palm oil plantations to achieve legal certainty in the Indonesian palm oil industry
The Forest Area Control Taskforce has confiscated an estimated 1.2 million hectares of oil palm plantations in nine provinces in Sumatra, Kalimantan and Sulawesi. The plantations were then put under the management of PT Agrinas, a state-owned enterprise set up in February specially to own and operate the plantations.
It was a great wonder though that the bold law enforcement measure did not cause any uproar among the business community. Not a single lawsuit was filed to counter the government measure. Even the Indonesia Palm Oil Association (Gapki) kept silent.
Expectation is now high that Agrinas will serve as a breakthrough and solution to address legal uncertainties, particularly on overlapped land status which has been haunting many palm oil companies.
The government's strong policies to improve palm oil governance and reduce deforestation have led most palm oil producers to adopt a stringent sustainability standard and a no deforestation commitment.
Therefore, in order to ensure that our palm oil production fully meets international sustainable standards the government needs to address the misalignment in the understanding about what is legally and environmentally defined as no-deforestation.
In this context, the Agrinas takeover of the confiscated plantations should become the opportunity to amend the existing national forest land use and spatial planning to address persistent allegations against palm oil as the main cause of deforestation.
Efforts to achieve fully sustainable palm oil production have always been hindered by the issues of overlapping land-title administration with forest areas.
Agrinas’ success in managing the palm oil plantations sustainably will be a milestone for the leadership of the Prabowo Subianto administration in resolving the very complex and protracted land use issues and legal uncertainty, thereby protecting the palm oil industry as a strategic industry. Edi Suhardi/ LinkedIn
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Indonesia's plantation crackdown raises regulatory risks for Malaysian firms — CIMB Securities
KUALA LUMPUR (July 10): Malaysian plantation firms face growing regulatory risks as Indonesia seizes land lacking forestry permits or in violation of land-use law, CIMB Securities flagged.
The seizures are negative for upstream plantation companies with estates in Indonesia, such as SD Guthrie Bhd (KL:SDG), Kuala Lumpur Kepong Bhd (KL:KLK), IOI Corp Bhd (KL:IOICORP) and Genting Plantations Bhd (KL:GENP), as they signal increasing regulatory risks, said the house in a note on Thursday.
The move may also trigger heightened environment, social and governance (ESG) scrutiny from investors — particularly over land legality, deforestation risks, and certification compliance — while raising concerns over future regulatory shifts and higher risk premiums for companies with exposure in Indonesia.
“Our conversations with Malaysian plantation companies under coverage suggest that the potential financial impact of Indonesia’s forestry land status issue on their planted oil palm estates is unlikely to be significant, based on their initial assessments. However, these companies are still seeking further clarity, indicating that regulatory risks persist for their Indonesian operations, ”CIMB said in a note to clients.
Genting Plantations made a RM66 million provision in the first quarter ended March 31, 2025 to account for potential income loss from portions of its Indonesian estates that had been demarcated as forest land by the Indonesian government under a recent regulation, according to CIMB.
CIMB’s analysis of Indonesia’s Minister of Forestry Decree No 36/2025 — which lists oil palm firms operating illegally in forest areas without permits — shows the companies fall into two groups: those under the legalisation process after applying before the Nov 2, 2023 deadline, and those rejected for non-compliance.
The research house found that Indonesian subsidiaries of Genting Plantations, KLK, and SD Guthrie are listed in the decree. The Edge
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Brazil urges Indonesia to join Global Biofuels Alliance
Jakarta: Brazil is pushing to bring Indonesia, the world’s largest palm oil producer, into the Global Biofuels Alliance in a bid to expand global cooperation on sustainable biofuels. The call came during a meeting between Brazilian President Luiz Inácio Lula da Silva and Indonesian President Prabowo Subianto in Brasilia on Wednesday, reports JakartaGlobe.ID.
In a joint statement released after the talks, both leaders acknowledged their countries as leading producers of bioenergy and expressed a shared commitment to promoting sustainable fuel alternatives. The statement emphasized their intent to work together in international platforms like the G20 and BRICS to support the global transition to cleaner energy.
“President Lula invited Indonesia to join the Global Biofuels Alliance, highlighting the potential for deeper cooperation in renewable energy,” the statement said.
Formed in 2023 under India’s G20 presidency, the Global Biofuels Alliance now includes 29 countries such as the United States, and 14 international organizations, including the World Bank and the Indonesia-based Council of Palm Oil Producing Countries (CPOPC). The alliance helps its members by offering technical guidance and support for national biofuel programs.
Indonesia, which relies heavily on palm oil to produce biodiesel, already mandates a 40 percent palm oil blend in its biodiesel fuel—commonly known as B40. The country plans to increase this to 50 percent in 2026. Brazil, meanwhile, is a top ethanol producer, using sugarcane as its primary feedstock. Though Indonesia also makes ethanol from sugarcane, its production remains far below Brazil’s level.
At a joint press briefing, President Prabowo praised Brazil’s progress in the biofuel sector.
“You’re setting a great example with how you’ve adopted biofuels and advanced agricultural innovation,” he said.
Prabowo also revealed that Brazil had agreed to let Indonesian technical teams visit the country to study its biofuel technologies. He reaffirmed Indonesia’s goal of reaching 100 percent renewable energy by 2040, adding that some experts believe the target could be met even earlier.
“We are impressed by your achievements in biofuel development,” Prabowo added.
According to Brazilian government data, the country set a new record in 2023 by producing nearly 43 billion liters of ethanol and biodiesel combined, including more than 7.5 billion liters of biodiesel. Meanwhile, Indonesia’s Energy Ministry reported that the country distributed at least 4.3 million kiloliters of B40 fuel during the first four months of 2025. Bioenergy Times
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MPOC’s Global Trade Mission Spurs RM188.5 Million In Potential Palm Oil Deals
The Malaysian Palm Oil Council’s (MPOC) flagship Trade Networking Visit 2025 has generated an estimated RM188.5 million in potential sales through intensive business engagements and strategic outreach.
Held from July 8 to 10 in Kuala Lumpur, the annual event attracted 56 international buyers from 23 countries across Sub-Saharan Africa, the Middle East and North Africa (MENA), ASEAN, Eastern Europe and Central Asia, regions playing a growing role in Malaysia’s palm oil export strategy.
The centrepiece of the programme was the BizMatch session on July 10, where over 400 pre-scheduled meetings connected 25 leading Malaysian suppliers with foreign buyers, fostering new commercial ties and reinforcing confidence in Malaysia’s palm oil sector.
“The positive response to BizMatch confirms the value of targeted market engagement. These regions remain central to our diversification efforts as global demand continues to shift,” said MPOC Chief Executive Officer Belvinder Sron.
Sron added that delegates also visited Sime Darby Plantation’s Eco Garden on Carey Island to observe sustainable cultivation practices and toured Kuala Lumpur Kepong Bhd’s Alami Edible Oils’ downstream facilities, showcasing Malaysia’s integrated supply chain and commitment to quality.
An industry dialogue with Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani offered further insight into policy priorities, market trends and opportunities for bilateral cooperation.
Participants praised the event for its impact and depth of engagement, prompting MPOC to consider expanding the initiative.
“We are exploring the possibility of holding similar programmes more regularly in high-potential markets,” Sron added.
As demand for sustainable, traceable palm oil grows, MPOC reaffirmed its commitment to advancing market access and building long-term global partnerships. Business Today
Indonesia creates new palm oil giant
Indonesia handed over nearly 400,000 hectares of confiscated oil palm plantations to Agrinas Palma Nusantara on Wednesday, giving the new state-owned company a massive land bank that could make it one of the world’s largest oil palm producers.
The plantations were seized by the government’s forestry task force from companies that violate the country’s laws, Reuters reported. The government has not disclosed their names, but there are more than 230 of them.
Agrinas is a fast-growing palm oil start-up created in January by the administration of President Prabowo Subianto through the restructuring of an infrastructure services firm. As of March, Agrinas had been managing about 221,000 hectares of plantations. The task force transferred the rest of the land to the firm yesterday. With the addition of the new plantations, the total area under Agrinas’ management will exceed 833,000 hectares. The company’s current production level is 6,000 tons of raw material daily.
Defense Minister Sjafri Sjamsoeddine, who heads the forestry task force, said authorities have so far confiscated more than 2 million hectares of illegal plantations in forested areas across the country. He said the task force aims to seize a total of 3 million hectares of land by August, which will either be preserved for oil palm and other plantations or reforested.
It was previously reported that Indonesian palm oil exports to the United States could decline due to the threat of a 32% U.S. tariff on Indonesian goods. UKR Agraconsult
---------
Confiscated palm oil plantations to achieve legal certainty in the Indonesian palm oil industry
The Forest Area Control Taskforce has confiscated an estimated 1.2 million hectares of oil palm plantations in nine provinces in Sumatra, Kalimantan and Sulawesi. The plantations were then put under the management of PT Agrinas, a state-owned enterprise set up in February specially to own and operate the plantations.
It was a great wonder though that the bold law enforcement measure did not cause any uproar among the business community. Not a single lawsuit was filed to counter the government measure. Even the Indonesia Palm Oil Association (Gapki) kept silent.
Expectation is now high that Agrinas will serve as a breakthrough and solution to address legal uncertainties, particularly on overlapped land status which has been haunting many palm oil companies.
The government's strong policies to improve palm oil governance and reduce deforestation have led most palm oil producers to adopt a stringent sustainability standard and a no deforestation commitment.
Therefore, in order to ensure that our palm oil production fully meets international sustainable standards the government needs to address the misalignment in the understanding about what is legally and environmentally defined as no-deforestation.
In this context, the Agrinas takeover of the confiscated plantations should become the opportunity to amend the existing national forest land use and spatial planning to address persistent allegations against palm oil as the main cause of deforestation.
Efforts to achieve fully sustainable palm oil production have always been hindered by the issues of overlapping land-title administration with forest areas.
Agrinas’ success in managing the palm oil plantations sustainably will be a milestone for the leadership of the Prabowo Subianto administration in resolving the very complex and protracted land use issues and legal uncertainty, thereby protecting the palm oil industry as a strategic industry. Edi Suhardi/ LinkedIn
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Indonesia's plantation crackdown raises regulatory risks for Malaysian firms — CIMB Securities
KUALA LUMPUR (July 10): Malaysian plantation firms face growing regulatory risks as Indonesia seizes land lacking forestry permits or in violation of land-use law, CIMB Securities flagged.
The seizures are negative for upstream plantation companies with estates in Indonesia, such as SD Guthrie Bhd (KL:SDG), Kuala Lumpur Kepong Bhd (KL:KLK), IOI Corp Bhd (KL:IOICORP) and Genting Plantations Bhd (KL:GENP), as they signal increasing regulatory risks, said the house in a note on Thursday.
The move may also trigger heightened environment, social and governance (ESG) scrutiny from investors — particularly over land legality, deforestation risks, and certification compliance — while raising concerns over future regulatory shifts and higher risk premiums for companies with exposure in Indonesia.
“Our conversations with Malaysian plantation companies under coverage suggest that the potential financial impact of Indonesia’s forestry land status issue on their planted oil palm estates is unlikely to be significant, based on their initial assessments. However, these companies are still seeking further clarity, indicating that regulatory risks persist for their Indonesian operations, ”CIMB said in a note to clients.
Genting Plantations made a RM66 million provision in the first quarter ended March 31, 2025 to account for potential income loss from portions of its Indonesian estates that had been demarcated as forest land by the Indonesian government under a recent regulation, according to CIMB.
CIMB’s analysis of Indonesia’s Minister of Forestry Decree No 36/2025 — which lists oil palm firms operating illegally in forest areas without permits — shows the companies fall into two groups: those under the legalisation process after applying before the Nov 2, 2023 deadline, and those rejected for non-compliance.
The research house found that Indonesian subsidiaries of Genting Plantations, KLK, and SD Guthrie are listed in the decree. The Edge
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Brazil urges Indonesia to join Global Biofuels Alliance
Jakarta: Brazil is pushing to bring Indonesia, the world’s largest palm oil producer, into the Global Biofuels Alliance in a bid to expand global cooperation on sustainable biofuels. The call came during a meeting between Brazilian President Luiz Inácio Lula da Silva and Indonesian President Prabowo Subianto in Brasilia on Wednesday, reports JakartaGlobe.ID.
In a joint statement released after the talks, both leaders acknowledged their countries as leading producers of bioenergy and expressed a shared commitment to promoting sustainable fuel alternatives. The statement emphasized their intent to work together in international platforms like the G20 and BRICS to support the global transition to cleaner energy.
“President Lula invited Indonesia to join the Global Biofuels Alliance, highlighting the potential for deeper cooperation in renewable energy,” the statement said.
Formed in 2023 under India’s G20 presidency, the Global Biofuels Alliance now includes 29 countries such as the United States, and 14 international organizations, including the World Bank and the Indonesia-based Council of Palm Oil Producing Countries (CPOPC). The alliance helps its members by offering technical guidance and support for national biofuel programs.
Indonesia, which relies heavily on palm oil to produce biodiesel, already mandates a 40 percent palm oil blend in its biodiesel fuel—commonly known as B40. The country plans to increase this to 50 percent in 2026. Brazil, meanwhile, is a top ethanol producer, using sugarcane as its primary feedstock. Though Indonesia also makes ethanol from sugarcane, its production remains far below Brazil’s level.
At a joint press briefing, President Prabowo praised Brazil’s progress in the biofuel sector.
“You’re setting a great example with how you’ve adopted biofuels and advanced agricultural innovation,” he said.
Prabowo also revealed that Brazil had agreed to let Indonesian technical teams visit the country to study its biofuel technologies. He reaffirmed Indonesia’s goal of reaching 100 percent renewable energy by 2040, adding that some experts believe the target could be met even earlier.
“We are impressed by your achievements in biofuel development,” Prabowo added.
According to Brazilian government data, the country set a new record in 2023 by producing nearly 43 billion liters of ethanol and biodiesel combined, including more than 7.5 billion liters of biodiesel. Meanwhile, Indonesia’s Energy Ministry reported that the country distributed at least 4.3 million kiloliters of B40 fuel during the first four months of 2025. Bioenergy Times
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MPOC’s Global Trade Mission Spurs RM188.5 Million In Potential Palm Oil Deals
The Malaysian Palm Oil Council’s (MPOC) flagship Trade Networking Visit 2025 has generated an estimated RM188.5 million in potential sales through intensive business engagements and strategic outreach.
Held from July 8 to 10 in Kuala Lumpur, the annual event attracted 56 international buyers from 23 countries across Sub-Saharan Africa, the Middle East and North Africa (MENA), ASEAN, Eastern Europe and Central Asia, regions playing a growing role in Malaysia’s palm oil export strategy.
The centrepiece of the programme was the BizMatch session on July 10, where over 400 pre-scheduled meetings connected 25 leading Malaysian suppliers with foreign buyers, fostering new commercial ties and reinforcing confidence in Malaysia’s palm oil sector.
“The positive response to BizMatch confirms the value of targeted market engagement. These regions remain central to our diversification efforts as global demand continues to shift,” said MPOC Chief Executive Officer Belvinder Sron.
Sron added that delegates also visited Sime Darby Plantation’s Eco Garden on Carey Island to observe sustainable cultivation practices and toured Kuala Lumpur Kepong Bhd’s Alami Edible Oils’ downstream facilities, showcasing Malaysia’s integrated supply chain and commitment to quality.
An industry dialogue with Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani offered further insight into policy priorities, market trends and opportunities for bilateral cooperation.
Participants praised the event for its impact and depth of engagement, prompting MPOC to consider expanding the initiative.
“We are exploring the possibility of holding similar programmes more regularly in high-potential markets,” Sron added.
As demand for sustainable, traceable palm oil grows, MPOC reaffirmed its commitment to advancing market access and building long-term global partnerships. Business Today
July 09, 2025
EU Lawmakers Reject EUDR’s Country Risk System in New Setback to Deforestation Regulation
Lawmakers in the European Parliament voted on Wednesday to reject a benchmarking system categorizing countries by their level of deforestation risk, marking a potential new setback for the new EU Deforestation Regulation (EUDR), aimed at ensuring that products imported to or exported from EU markets no longer contribute to deforestation and forest degradation globally, including concerns that the law could again be delayed.
The EUDR was initially introduced by the EU Commission in November 2021, with proposals aimed at effectively banning deforestation-linked products on the EU market, and establishing strong compliance requirements for companies providing or utilizing key commodities and products such as palm oil, beef, timber, coffee, cocoa, rubber and soy, in addition to some of their derived products, such as leather, chocolate, tires, or furniture.
Under the new rules, companies that want to place relevant products on the EU market, or export them, will face mandatory due diligence rules, including a requirement to trace the products back to the plot of land where it was produced, to prove that the products were produced on land that was not subject to deforestation after 2020, and are compliant with all relevant applicable laws in force in the country of production.
The regulation includes a benchmarking system that classifies countries according to the level of risk of producing commodities covered by the scope of EUDR that are not deforestation-free. The classification system impacts the compliance obligations under the regulation, with sourcing from low-risk countries, for example, allowing for more simplified due diligence requirements from operators and traders.
A motion brought by the European People’s Party (EPP), and subsequently approved by a majority of MEPs, however, argued that the benchmarking system suffered from a series of flaws, including the use of outdated data that “does not accurately reflect the current realities in the countries concerned,” and that it “fails to consider key real-world factors, most notably current land-use dynamics and forest degradation,” which would result in some member stated being placed in higher risk categories.
The motion also stated that the inclusion of only three risk categories – low, standard, and high risk – by the EUDR was “insufficient to adequately differentiate between countries with vastly different levels of deforestation risk.” Notably, the EPP had succeeded in integrating a new “no-risk” category in Parliament’s negotiating position on the EUDR last year, although the category did not make it into an agreement between Parliament and the European Council. The agreement did, however, delay the implementation of the law by a year, with the EUDR now becoming applicable for large companies in December 2025, and for micro- and small enterprises in June 2026. The Commission had proposed the delay, noting that “several global partners have repeatedly expressed concerns about their state of preparedness,” and adding that even within the EU, “the state of preparations amongst stakeholders in Europe is also uneven.”
In a statement released after the motion passed, the EPP again called for the introduction of a “no risk” category in the EUDR.
Alexander Bernhuber MEP, who tabled the objection on behalf of the EPP, said:
“The Commission’s list misrepresents the situation in many countries and creates unnecessary burdens for farmers, foresters, and industry. The EPP Group remains committed to responsible forest stewardship and to policies that combine environmental protection with workable solutions for those who care for and rely on forests. Therefore, a new ‘no risk’ category must be introduced for countries with stable or expanding forest areas. This is how we make EU rules more fair and effective.”
Environmental groups expressed concern that the vote could further set back action on deforestation. In a statement released following the vote, Greenpeace noted that “it is virtually impossible that the Commission could produce a new methodology for classification of countries ahead of 30 December 2025,” which would again cause the regulation’s implementation to be delayed.
Greenpeace Forests Campaigner Sigrid Deters said:
“We are aware that the Commission’s regulation has shortcomings, but the Commission has committed to review it in 2026. In the meantime, the EUDR must be applied by operators and enforced by competent authorities, according to the agreed schedule.” ESG Today
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Indonesia says EU deforestation law is still unworkable
Jakarta’s push for further postponement comes as EU countries call for ‘onerous’ rules to be simplified
Indonesia has asked Brussels to further delay its landmark deforestation law, adding to mounting pressure from EU governments that have demanded policymakers cut back “onerous” requirements on producers.
The controversial ban on products coming from deforested land being sold in the bloc has been heavily criticised by several of the EU’s trading partners including Brazil and the US, which argue it will damage small producers and make trade too expensive.
Muhammad Takdir, Indonesia’s deputy ambassador to the EU, said the law — which has already been delayed until the end of this year — should be further postponed to 2028 to allow more time to prepare, and that no fines should be charged in the intervening period. He also said revisions were needed, particularly for small farmers.
“Our big companies have the ability to adapt to the implementation. But there are 8mn smallholdings, 17mn smallholders if you count families. They cannot navigate the regulation. They will be sidelined from the supply chains,” Takdir told the Financial Times.
Many farmers would not be able to provide the necessary geolocation data for their plantations, as required by the law, because they are often in areas with no mobile phone reception, he said.
The law is an important part of the bloc’s ambitious Green Deal climate law, first announced in 2019 amid a wave of environmental sentiment that swept Green parties across Europe to some of their best ever election results.
However, the bloc’s waning economy and the return of Donald Trump to the White House have prompted a surge in popularity for rightwing parties that say the EU’s green agenda is unviable and a threat to growth.
Under pressure from both EU member states and trading partners, the European Commission agreed in October to postpone the implementation of the deforestation law until the end of 2025.
But several industries and countries are saying that this is still not long enough to help them prepare for the requirements, which include logging geolocation data for where the commodity was grown that can then be cross-checked against satellite maps.
“Last year we made a case that [the law] was not ready and not much has changed,” a senior EU diplomat said.
The law covers seven commodities — cattle, cocoa, coffee, oil palm, rubber, soya and wood — and categorises countries, including those within the bloc, as either at low, standard or high risk of deforestation. Products from low-risk countries will not be subject to the full customs checks.
In a letter to the commission on Monday, agricultural ministers from 18 member states said “the requirements imposed on farmers, forest owners and operators remain onerous and not justified for countries with an insignificant risk of deforestation”.
EU lawmakers also approved a motion on Wednesday to introduce a “no risk” category aimed at exempting EU countries from the rules.
“The commission’s current approach imposes a blanket burden instead of targeting real risk,” said Christine Schnieder, a conservative German MEP who has led negotiations on the deforestation law.
Takdir said some countries were preparing to dispute the issue at the World Trade Organization. India, Colombia and others have already asked for debates in Geneva but have not filed a formal case yet.
He also said Indonesia was still hoping to conclude a trade deal with Brussels by the end of the year despite differences over some EU regulations and Jakarta’s export controls on nickel.
Meanwhile, the US is putting pressure on the EU to exempt it from the law as part of its “framework” trade deal to reduce tariffs on the bloc.
The EU has already categorised the US — and all its own members — as “low risk”, which means there will be fewer due diligence checks on US products. Financial Times
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Malaysia’s EUDR Classification Undermines Country’s Deforestation Efforts
Malaysian exporters now face more due diligence checks and heightened scrutiny from EU authorities when shipping their products to Europe due to its ‘standard’ risk classification.
On 22 May 2025, the European Commission announced the outcome of its ‘country benchmarking’ assessments under the EU Deforestation Regulation (EUDR), which comes into force at the end of this year. The system categorises 194 countries as either ‘low’, ‘standard’ or ‘ high’ risk, depending on the EU Commission’s view of the risk of deforestation they pose.
These risk categorisations are not merely symbolic: they have direct economic and reputational consequences. A ‘low’ risk classification for Malaysia would have simplified compliance obligations for our exporters by enabling streamlined due diligence and reporting procedures. Instead, Malaysian exporters now face more due diligence checks and heightened scrutiny from EU authorities when shipping their products to Europe.
So, it is not surprising that the EU Commission has been roundly criticised for the apparent favouritism it has shown. It has made a political decision rather than relying on the underlying science or the available empirical evidence.
The Commission’s assessment methodology was flawed in three key areas. First, from a purely Malaysian perspective, the significant progress our palm oil producers have made in halting deforestation has been overlooked. The latest satellite data clearly shows which countries have been successful in protecting their untouched natural forests, yet the EU has chosen to rely on outdated data. Article 29(3) of the EUDR requires the EU Commission to use the “latest scientific evidence” in its benchmarking assessments. However, it has used data from 2015 to 2020, as reported in the FAO’s 2020 Forest Resources Assessment. Given the importance of these assessments for its trade partners, the better option would have been to wait for the FAO’s upcoming 2025 Forest Resources Assessment, which will be available in late October this year and features updated data for 2020-2025.
Second, the EU Commission has chosen to look at the FAO’s Forest Resources Assessment data on ‘total forest cover’ instead of ‘naturally regenerating’ or ‘primary’ forest cover in its calculations. In doing so, it has employed a methodology that favours its member states over lower-priority, third-party countries. Article 29(3)(a) of the EUDR requires that benchmarking assessments be based on “quantitative rates of deforestation and forest degradation” but FAO’s ‘total forest cover’ dataset omits the concept of ‘forest degradation’. Therefore, the benchmarking ignores one of the EUDR’s central regulatory requirements.
Malaysia has suffered as a result. Our current deforestation rates are similar across both datasets. Conversely, other countries — notably certain heavily forested EU member states — score well on ‘ total forest’ loss but poorly on ‘primary forest’ loss. Take Sweden, for example.
Looking at ‘total forest loss’ data only, Sweden records no change. Looking at the ‘naturally regenerating forest’ data, it shows a loss of 137,200 ha per year - twice the amount of Malaysia.
This is problematic for EUDR as a whole. Primary forests are nature’s marvels - home to ecosystems of enormous complexity and with soils that are exceptional stores of carbon. They take millennia to develop, yet can be destroyed in hours. Yet, the EU has failed to take these into account in its assessments.
It also creates a suspicion of favouritism. Under the Commission’s methodology, all EU countries are deemed ‘low’ risk despite some having weaker records on primary forest degradation.
The third flaw is the Commission’s use of ‘absolute’ and ‘relative’ deforestation thresholds. Countries with a yearly deforestation rate below 0.2% and an absolute annual forest loss of less than 70,000 ha are classified as ‘low’ risk. Yet, the Commission has produced no scientific justification for these thresholds. For instance, the US narrowly scraped into the ‘low’ risk category with an absolute forest loss rate of 60,000 ha per year.
The EUDR is a laudable initiative that Malaysia strongly supports; however, methodological shortcomings raise questions about fairness, particularly for third countries that are of less immediate value to the EU. If the EU Commission wants a regulation that is effective and workable, it needs to rethink its methodologies. Failing that, countries will question its purpose. Palm Sphere/ MPOC
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Indonesia's B50 program to help support palm oil price
Jakarta (ANTARA) - Deputy Minister of Energy and Mineral Resources, Yuliot Tanjung, has said that the 50 percent biodiesel mix or B50 program can help prevent a decline in the prices of crude palm oil (CPO).
“This is part of the national policy that can provide benefits and support the stability of CPO prices,” he added at a discussion on “Promoting Sustainability of Upstream Oil and Gas Industry for Energy Self-Sufficiency” in Jakarta on Tuesday.
According to Tanjung, currently, there are indications of CPO oversupply or excessive CPO stocks in the country. In addition, globally, CPO prices are also projected to decline, he noted.
If CPO prices decline, palm oil farmers would be affected the most, he said.
Domestic CPO prices have experienced a downward trend, based on the Crude Palm Oil Reference Price (HR CPO) issued by the Ministry of Trade. In April, the price of HR CPO stood at US$961.54 per metric ton.
The price fell in May to US$924.46 per metric ton, and then fell again in June to US$856.38 per metric ton. It rose in July to US$877.89 per metric ton.
B50 biodiesel consists of a mixture of 50 percent biofuel and 50 percent conventional diesel.
Agriculture Minister Andi Amran Sulaiman earlier said the government is planning to divert 5.3 million tons of CPO exports for the B50 program. Data shows Indonesia exported 26 million tons of CPO in 2024, he added.
He expressed the hope that the diversion of 5.3 million tons of Indonesian CPO will cause its prices to increase in the global market.
The Indonesian government is seeking to launch the B50 program in 2026. Currently, the government is promoting B40, which consists of 40 percent biofuel and 60 percent conventional diesel. Antara News
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Is palm oil bad for your health? Here’s what the science says
Palm oil is among the most affordable and versatile edible oils globally, valued for its long shelf-life and neutral taste. Most packaged foods, including potato chips, biscuits, ice cream, and chocolates use palm oil.
A food and beverage industry association has said that the use of labels such as “palm oil free” or “no palm oil” are misleading, and rooted more in marketing than science.
The Indian Food and Beverage Association (IFBA) said in a statement issued on Tuesday that palm oil has been consumed by Indians since the the 19th century, and that the oil has a well-rounded fatty acid profile.
Palm oil is among the most affordable and versatile edible oils globally, valued for its long shelf-life and neutral taste. Most packaged foods, including potato chips, biscuits, ice cream, and chocolates use palm oil.
Fats that remain solid or semi-solid at room temperatures — including palm oil, coconut oil, ghee, butter, and lard — are high in saturated fatty acids (See Chart).
According to the Indian Dietary Guidelines, prepared by the Indian Council of Medical Research (ICMR), coconut oil and ghee have the highest SFA content, around 90 grams and 70 grams respectively per 100 grams of oil. Palmolein, the liquid part of palm oil, contains around 40 grams of SFA and 40 grams of MUFA, with the rest being PUFA. Mustard, safflower, and sunflower have the lowest SFA content, less than 10 grams per 100 gram of oil.
…But it isn’t hydrogenated
Apart from these three fatty acids, trans fatty acids (TFA) are produced during the hydrogenation of liquid vegetable oils. The addition of hydrogen atoms into such oils converts liquid oil to semi-solid, and increases their shelf-life.
Studies have shown that the consumption of TFAs can increase the risk of diabetes, breast cancer, colon cancer, pre-eclampsia (high blood pressure during pregnancy), and disorders of the nervous system.
ince palm oil is semi-solid at room temperature, it does not need to be hydrogenated. In fact, the rise in popularity of palm oil from the 1990s onwards was driven by health concerns about hydrogenated oils.
Most oils also contain minor components such as tocopherols and sterols — naturally occurring antioxidants that give oils their distinct flavours. Palm oil contains tocotrienols, which help lower blood cholesterol levels.
Mix of oils, in moderation
According to the ICMR’s guidelines, a mix of oils that are low in SFA and high in PUFA should ideally be used. This would mean avoiding palm oil as much as possible.
But the alternatives that are often pushed by influencers are not necessarily much healthier. Some of them swear by ghee and coconut oil, which have an even higher content of SFAs.
At the end of the day, an individual’s health outcomes are determined by a number of factors that go beyond just the type of oil consumed.
* The ICMR’s guidelines suggest that consumption of oil should be limited to between 20 and 50 grams (four to 10 teaspoons) per person per day. Those living sedentary lifestyles should stick to the lower end of this range (20-30 grams).
* The guidelines recommend getting most of one’s fat requirement from nuts and seeds such as walnuts, flaxseed, chia seeds, soyabean, and fenugreek seeds. Marine fish, other sea foods, and eggs are also good natural sources of PUFA, they say.
* The ICMR recommends that oils should not be reheated. This is because once heated, PUFAs in the oil start to oxygenate, and form harmful compounds that increase the risk of cardiovascular disease and cancers. If one does have to reuse oil, such oil should not be used for high-temperature cooking, and should be consumed within a day or two. Indian Express
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Why Chefs Are Ditching Seed Oils
As concerns about sustainability and wellness grow, chefs are reevaluating their use of seed oils—and exploring cleaner, more conscious alternatives.
Modern chefs understand more about food than ever before. And while some ingredients stand the test of time, increasingly, others no longer have a seat at the table.
Why Seed Oils Are Under Fire
Since the late 1990s, seed oils—such as canola, sunflower, peanut, and corn oil—have dominated most commercial kitchens. They largely replaced higher-fat ingredients like margarine and lard, praised for being lower in trans fats and having a higher smoke point. But more recent studies have raised concerns: seed oils are high in omega-6 fatty acids, which have been linked to inflammation and autoimmune conditions.
The growing body of information—and conflicting opinions—around seed oils has led some chefs to rethink their use in the kitchen. In April, Chef Daniel Humm of Eleven Madison Park in New York City announced that his team would be replacing seed oil with algae oil.
“Algae oil was the first product that really made us consider making a change like this,” Humm told Fine Dining Lovers. “We aren’t following a trend, but creating a new standard.”
How Daniel Humm Made the Switch
Humm first discovered algae oil through Kas Saidi, co-founder of Algae Cooking Club. As Saidi prepared to launch the oil in the U.S., he sought Humm’s input on recipe development and a collection of infused oils.
That’s when Humm realized just how much more sustainable algae oil was compared to seed oils—it became his initial motivation to make the switch. “All other alternatives require significantly more land and water to produce,” he explained. “To put it in perspective, algae oil uses approximately 87% less land than canola oil and 90% less than soybean oil. It also uses 88% less water than palm oil and 90% less than sunflower oil.”
Humm also praised the way algae oil performs in the kitchen. “If it didn’t make our food more delicious, we wouldn’t use it,” he said, noting the oil’s neutral flavor makes it “incredibly versatile, and never interferes with the flavors of a dish.”
It also has a remarkably high smoke point—over 500°F—higher than any cooking oil Humm has used, allowing him to fry and sear at intense heat without any burnt flavor. “This oil switch is also for the benefit of our guests as well as for the planet,” he added, noting that algae oil is high in omega-9 fats and low in omega-6s—the primary concern with traditional seed oils.
Humm says algae oil is still “relatively under the radar,” which makes the transition all the more exciting. But he’s not alone—other chefs are also experimenting with alternatives to seed oils.Fine Dining Lovers
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Onesta Ghana launches Redgold Oil Palm Plantation project to boost local production and cut imports
Onesta Ghana Ltd, an agro-industrial enterprise, has officially launched the Redgold Oil Palm Plantation Project (ROPP), a transformative Public-Private Partnership (PPP) aimed at building a sustainable and fully integrated oil palm value chain in Ghana.
The initiative, which will cover over 10,000 hectares in its initial phase, seeks to enhance local palm oil production, reduce the country’s reliance on imports, and create jobs, particularly in rural communities. The project will include both a nucleus estate and an out-grower scheme, positioning Ghana as a competitive player in the global palm oil market.
Ghana currently faces a production deficit of 150,000 metric tonnes annually, while neighbouring countries such as Côte d’Ivoire have begun exporting palm oil.
At the launch event held at the company’s new office in Accra, Hon. Dr Ekwow Spio-Garbrah, former Minister of Trade and Industry and Board Chairman of Onesta Ghana Ltd, said the goal is to elevate palm oil as a strategic crop alongside cocoa in driving Ghana’s agribusiness agenda. My Joy Online
EU Lawmakers Reject EUDR’s Country Risk System in New Setback to Deforestation Regulation
Lawmakers in the European Parliament voted on Wednesday to reject a benchmarking system categorizing countries by their level of deforestation risk, marking a potential new setback for the new EU Deforestation Regulation (EUDR), aimed at ensuring that products imported to or exported from EU markets no longer contribute to deforestation and forest degradation globally, including concerns that the law could again be delayed.
The EUDR was initially introduced by the EU Commission in November 2021, with proposals aimed at effectively banning deforestation-linked products on the EU market, and establishing strong compliance requirements for companies providing or utilizing key commodities and products such as palm oil, beef, timber, coffee, cocoa, rubber and soy, in addition to some of their derived products, such as leather, chocolate, tires, or furniture.
Under the new rules, companies that want to place relevant products on the EU market, or export them, will face mandatory due diligence rules, including a requirement to trace the products back to the plot of land where it was produced, to prove that the products were produced on land that was not subject to deforestation after 2020, and are compliant with all relevant applicable laws in force in the country of production.
The regulation includes a benchmarking system that classifies countries according to the level of risk of producing commodities covered by the scope of EUDR that are not deforestation-free. The classification system impacts the compliance obligations under the regulation, with sourcing from low-risk countries, for example, allowing for more simplified due diligence requirements from operators and traders.
A motion brought by the European People’s Party (EPP), and subsequently approved by a majority of MEPs, however, argued that the benchmarking system suffered from a series of flaws, including the use of outdated data that “does not accurately reflect the current realities in the countries concerned,” and that it “fails to consider key real-world factors, most notably current land-use dynamics and forest degradation,” which would result in some member stated being placed in higher risk categories.
The motion also stated that the inclusion of only three risk categories – low, standard, and high risk – by the EUDR was “insufficient to adequately differentiate between countries with vastly different levels of deforestation risk.” Notably, the EPP had succeeded in integrating a new “no-risk” category in Parliament’s negotiating position on the EUDR last year, although the category did not make it into an agreement between Parliament and the European Council. The agreement did, however, delay the implementation of the law by a year, with the EUDR now becoming applicable for large companies in December 2025, and for micro- and small enterprises in June 2026. The Commission had proposed the delay, noting that “several global partners have repeatedly expressed concerns about their state of preparedness,” and adding that even within the EU, “the state of preparations amongst stakeholders in Europe is also uneven.”
In a statement released after the motion passed, the EPP again called for the introduction of a “no risk” category in the EUDR.
Alexander Bernhuber MEP, who tabled the objection on behalf of the EPP, said:
“The Commission’s list misrepresents the situation in many countries and creates unnecessary burdens for farmers, foresters, and industry. The EPP Group remains committed to responsible forest stewardship and to policies that combine environmental protection with workable solutions for those who care for and rely on forests. Therefore, a new ‘no risk’ category must be introduced for countries with stable or expanding forest areas. This is how we make EU rules more fair and effective.”
Environmental groups expressed concern that the vote could further set back action on deforestation. In a statement released following the vote, Greenpeace noted that “it is virtually impossible that the Commission could produce a new methodology for classification of countries ahead of 30 December 2025,” which would again cause the regulation’s implementation to be delayed.
Greenpeace Forests Campaigner Sigrid Deters said:
“We are aware that the Commission’s regulation has shortcomings, but the Commission has committed to review it in 2026. In the meantime, the EUDR must be applied by operators and enforced by competent authorities, according to the agreed schedule.” ESG Today
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Indonesia says EU deforestation law is still unworkable
Jakarta’s push for further postponement comes as EU countries call for ‘onerous’ rules to be simplified
Indonesia has asked Brussels to further delay its landmark deforestation law, adding to mounting pressure from EU governments that have demanded policymakers cut back “onerous” requirements on producers.
The controversial ban on products coming from deforested land being sold in the bloc has been heavily criticised by several of the EU’s trading partners including Brazil and the US, which argue it will damage small producers and make trade too expensive.
Muhammad Takdir, Indonesia’s deputy ambassador to the EU, said the law — which has already been delayed until the end of this year — should be further postponed to 2028 to allow more time to prepare, and that no fines should be charged in the intervening period. He also said revisions were needed, particularly for small farmers.
“Our big companies have the ability to adapt to the implementation. But there are 8mn smallholdings, 17mn smallholders if you count families. They cannot navigate the regulation. They will be sidelined from the supply chains,” Takdir told the Financial Times.
Many farmers would not be able to provide the necessary geolocation data for their plantations, as required by the law, because they are often in areas with no mobile phone reception, he said.
The law is an important part of the bloc’s ambitious Green Deal climate law, first announced in 2019 amid a wave of environmental sentiment that swept Green parties across Europe to some of their best ever election results.
However, the bloc’s waning economy and the return of Donald Trump to the White House have prompted a surge in popularity for rightwing parties that say the EU’s green agenda is unviable and a threat to growth.
Under pressure from both EU member states and trading partners, the European Commission agreed in October to postpone the implementation of the deforestation law until the end of 2025.
But several industries and countries are saying that this is still not long enough to help them prepare for the requirements, which include logging geolocation data for where the commodity was grown that can then be cross-checked against satellite maps.
“Last year we made a case that [the law] was not ready and not much has changed,” a senior EU diplomat said.
The law covers seven commodities — cattle, cocoa, coffee, oil palm, rubber, soya and wood — and categorises countries, including those within the bloc, as either at low, standard or high risk of deforestation. Products from low-risk countries will not be subject to the full customs checks.
In a letter to the commission on Monday, agricultural ministers from 18 member states said “the requirements imposed on farmers, forest owners and operators remain onerous and not justified for countries with an insignificant risk of deforestation”.
EU lawmakers also approved a motion on Wednesday to introduce a “no risk” category aimed at exempting EU countries from the rules.
“The commission’s current approach imposes a blanket burden instead of targeting real risk,” said Christine Schnieder, a conservative German MEP who has led negotiations on the deforestation law.
Takdir said some countries were preparing to dispute the issue at the World Trade Organization. India, Colombia and others have already asked for debates in Geneva but have not filed a formal case yet.
He also said Indonesia was still hoping to conclude a trade deal with Brussels by the end of the year despite differences over some EU regulations and Jakarta’s export controls on nickel.
Meanwhile, the US is putting pressure on the EU to exempt it from the law as part of its “framework” trade deal to reduce tariffs on the bloc.
The EU has already categorised the US — and all its own members — as “low risk”, which means there will be fewer due diligence checks on US products. Financial Times
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Malaysia’s EUDR Classification Undermines Country’s Deforestation Efforts
Malaysian exporters now face more due diligence checks and heightened scrutiny from EU authorities when shipping their products to Europe due to its ‘standard’ risk classification.
On 22 May 2025, the European Commission announced the outcome of its ‘country benchmarking’ assessments under the EU Deforestation Regulation (EUDR), which comes into force at the end of this year. The system categorises 194 countries as either ‘low’, ‘standard’ or ‘ high’ risk, depending on the EU Commission’s view of the risk of deforestation they pose.
These risk categorisations are not merely symbolic: they have direct economic and reputational consequences. A ‘low’ risk classification for Malaysia would have simplified compliance obligations for our exporters by enabling streamlined due diligence and reporting procedures. Instead, Malaysian exporters now face more due diligence checks and heightened scrutiny from EU authorities when shipping their products to Europe.
So, it is not surprising that the EU Commission has been roundly criticised for the apparent favouritism it has shown. It has made a political decision rather than relying on the underlying science or the available empirical evidence.
The Commission’s assessment methodology was flawed in three key areas. First, from a purely Malaysian perspective, the significant progress our palm oil producers have made in halting deforestation has been overlooked. The latest satellite data clearly shows which countries have been successful in protecting their untouched natural forests, yet the EU has chosen to rely on outdated data. Article 29(3) of the EUDR requires the EU Commission to use the “latest scientific evidence” in its benchmarking assessments. However, it has used data from 2015 to 2020, as reported in the FAO’s 2020 Forest Resources Assessment. Given the importance of these assessments for its trade partners, the better option would have been to wait for the FAO’s upcoming 2025 Forest Resources Assessment, which will be available in late October this year and features updated data for 2020-2025.
Second, the EU Commission has chosen to look at the FAO’s Forest Resources Assessment data on ‘total forest cover’ instead of ‘naturally regenerating’ or ‘primary’ forest cover in its calculations. In doing so, it has employed a methodology that favours its member states over lower-priority, third-party countries. Article 29(3)(a) of the EUDR requires that benchmarking assessments be based on “quantitative rates of deforestation and forest degradation” but FAO’s ‘total forest cover’ dataset omits the concept of ‘forest degradation’. Therefore, the benchmarking ignores one of the EUDR’s central regulatory requirements.
Malaysia has suffered as a result. Our current deforestation rates are similar across both datasets. Conversely, other countries — notably certain heavily forested EU member states — score well on ‘ total forest’ loss but poorly on ‘primary forest’ loss. Take Sweden, for example.
Looking at ‘total forest loss’ data only, Sweden records no change. Looking at the ‘naturally regenerating forest’ data, it shows a loss of 137,200 ha per year - twice the amount of Malaysia.
This is problematic for EUDR as a whole. Primary forests are nature’s marvels - home to ecosystems of enormous complexity and with soils that are exceptional stores of carbon. They take millennia to develop, yet can be destroyed in hours. Yet, the EU has failed to take these into account in its assessments.
It also creates a suspicion of favouritism. Under the Commission’s methodology, all EU countries are deemed ‘low’ risk despite some having weaker records on primary forest degradation.
The third flaw is the Commission’s use of ‘absolute’ and ‘relative’ deforestation thresholds. Countries with a yearly deforestation rate below 0.2% and an absolute annual forest loss of less than 70,000 ha are classified as ‘low’ risk. Yet, the Commission has produced no scientific justification for these thresholds. For instance, the US narrowly scraped into the ‘low’ risk category with an absolute forest loss rate of 60,000 ha per year.
The EUDR is a laudable initiative that Malaysia strongly supports; however, methodological shortcomings raise questions about fairness, particularly for third countries that are of less immediate value to the EU. If the EU Commission wants a regulation that is effective and workable, it needs to rethink its methodologies. Failing that, countries will question its purpose. Palm Sphere/ MPOC
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Indonesia's B50 program to help support palm oil price
Jakarta (ANTARA) - Deputy Minister of Energy and Mineral Resources, Yuliot Tanjung, has said that the 50 percent biodiesel mix or B50 program can help prevent a decline in the prices of crude palm oil (CPO).
“This is part of the national policy that can provide benefits and support the stability of CPO prices,” he added at a discussion on “Promoting Sustainability of Upstream Oil and Gas Industry for Energy Self-Sufficiency” in Jakarta on Tuesday.
According to Tanjung, currently, there are indications of CPO oversupply or excessive CPO stocks in the country. In addition, globally, CPO prices are also projected to decline, he noted.
If CPO prices decline, palm oil farmers would be affected the most, he said.
Domestic CPO prices have experienced a downward trend, based on the Crude Palm Oil Reference Price (HR CPO) issued by the Ministry of Trade. In April, the price of HR CPO stood at US$961.54 per metric ton.
The price fell in May to US$924.46 per metric ton, and then fell again in June to US$856.38 per metric ton. It rose in July to US$877.89 per metric ton.
B50 biodiesel consists of a mixture of 50 percent biofuel and 50 percent conventional diesel.
Agriculture Minister Andi Amran Sulaiman earlier said the government is planning to divert 5.3 million tons of CPO exports for the B50 program. Data shows Indonesia exported 26 million tons of CPO in 2024, he added.
He expressed the hope that the diversion of 5.3 million tons of Indonesian CPO will cause its prices to increase in the global market.
The Indonesian government is seeking to launch the B50 program in 2026. Currently, the government is promoting B40, which consists of 40 percent biofuel and 60 percent conventional diesel. Antara News
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Is palm oil bad for your health? Here’s what the science says
Palm oil is among the most affordable and versatile edible oils globally, valued for its long shelf-life and neutral taste. Most packaged foods, including potato chips, biscuits, ice cream, and chocolates use palm oil.
A food and beverage industry association has said that the use of labels such as “palm oil free” or “no palm oil” are misleading, and rooted more in marketing than science.
The Indian Food and Beverage Association (IFBA) said in a statement issued on Tuesday that palm oil has been consumed by Indians since the the 19th century, and that the oil has a well-rounded fatty acid profile.
Palm oil is among the most affordable and versatile edible oils globally, valued for its long shelf-life and neutral taste. Most packaged foods, including potato chips, biscuits, ice cream, and chocolates use palm oil.
Fats that remain solid or semi-solid at room temperatures — including palm oil, coconut oil, ghee, butter, and lard — are high in saturated fatty acids (See Chart).
According to the Indian Dietary Guidelines, prepared by the Indian Council of Medical Research (ICMR), coconut oil and ghee have the highest SFA content, around 90 grams and 70 grams respectively per 100 grams of oil. Palmolein, the liquid part of palm oil, contains around 40 grams of SFA and 40 grams of MUFA, with the rest being PUFA. Mustard, safflower, and sunflower have the lowest SFA content, less than 10 grams per 100 gram of oil.
…But it isn’t hydrogenated
Apart from these three fatty acids, trans fatty acids (TFA) are produced during the hydrogenation of liquid vegetable oils. The addition of hydrogen atoms into such oils converts liquid oil to semi-solid, and increases their shelf-life.
Studies have shown that the consumption of TFAs can increase the risk of diabetes, breast cancer, colon cancer, pre-eclampsia (high blood pressure during pregnancy), and disorders of the nervous system.
ince palm oil is semi-solid at room temperature, it does not need to be hydrogenated. In fact, the rise in popularity of palm oil from the 1990s onwards was driven by health concerns about hydrogenated oils.
Most oils also contain minor components such as tocopherols and sterols — naturally occurring antioxidants that give oils their distinct flavours. Palm oil contains tocotrienols, which help lower blood cholesterol levels.
Mix of oils, in moderation
According to the ICMR’s guidelines, a mix of oils that are low in SFA and high in PUFA should ideally be used. This would mean avoiding palm oil as much as possible.
But the alternatives that are often pushed by influencers are not necessarily much healthier. Some of them swear by ghee and coconut oil, which have an even higher content of SFAs.
At the end of the day, an individual’s health outcomes are determined by a number of factors that go beyond just the type of oil consumed.
* The ICMR’s guidelines suggest that consumption of oil should be limited to between 20 and 50 grams (four to 10 teaspoons) per person per day. Those living sedentary lifestyles should stick to the lower end of this range (20-30 grams).
* The guidelines recommend getting most of one’s fat requirement from nuts and seeds such as walnuts, flaxseed, chia seeds, soyabean, and fenugreek seeds. Marine fish, other sea foods, and eggs are also good natural sources of PUFA, they say.
* The ICMR recommends that oils should not be reheated. This is because once heated, PUFAs in the oil start to oxygenate, and form harmful compounds that increase the risk of cardiovascular disease and cancers. If one does have to reuse oil, such oil should not be used for high-temperature cooking, and should be consumed within a day or two. Indian Express
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Why Chefs Are Ditching Seed Oils
As concerns about sustainability and wellness grow, chefs are reevaluating their use of seed oils—and exploring cleaner, more conscious alternatives.
Modern chefs understand more about food than ever before. And while some ingredients stand the test of time, increasingly, others no longer have a seat at the table.
Why Seed Oils Are Under Fire
Since the late 1990s, seed oils—such as canola, sunflower, peanut, and corn oil—have dominated most commercial kitchens. They largely replaced higher-fat ingredients like margarine and lard, praised for being lower in trans fats and having a higher smoke point. But more recent studies have raised concerns: seed oils are high in omega-6 fatty acids, which have been linked to inflammation and autoimmune conditions.
The growing body of information—and conflicting opinions—around seed oils has led some chefs to rethink their use in the kitchen. In April, Chef Daniel Humm of Eleven Madison Park in New York City announced that his team would be replacing seed oil with algae oil.
“Algae oil was the first product that really made us consider making a change like this,” Humm told Fine Dining Lovers. “We aren’t following a trend, but creating a new standard.”
How Daniel Humm Made the Switch
Humm first discovered algae oil through Kas Saidi, co-founder of Algae Cooking Club. As Saidi prepared to launch the oil in the U.S., he sought Humm’s input on recipe development and a collection of infused oils.
That’s when Humm realized just how much more sustainable algae oil was compared to seed oils—it became his initial motivation to make the switch. “All other alternatives require significantly more land and water to produce,” he explained. “To put it in perspective, algae oil uses approximately 87% less land than canola oil and 90% less than soybean oil. It also uses 88% less water than palm oil and 90% less than sunflower oil.”
Humm also praised the way algae oil performs in the kitchen. “If it didn’t make our food more delicious, we wouldn’t use it,” he said, noting the oil’s neutral flavor makes it “incredibly versatile, and never interferes with the flavors of a dish.”
It also has a remarkably high smoke point—over 500°F—higher than any cooking oil Humm has used, allowing him to fry and sear at intense heat without any burnt flavor. “This oil switch is also for the benefit of our guests as well as for the planet,” he added, noting that algae oil is high in omega-9 fats and low in omega-6s—the primary concern with traditional seed oils.
Humm says algae oil is still “relatively under the radar,” which makes the transition all the more exciting. But he’s not alone—other chefs are also experimenting with alternatives to seed oils.Fine Dining Lovers
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Onesta Ghana launches Redgold Oil Palm Plantation project to boost local production and cut imports
Onesta Ghana Ltd, an agro-industrial enterprise, has officially launched the Redgold Oil Palm Plantation Project (ROPP), a transformative Public-Private Partnership (PPP) aimed at building a sustainable and fully integrated oil palm value chain in Ghana.
The initiative, which will cover over 10,000 hectares in its initial phase, seeks to enhance local palm oil production, reduce the country’s reliance on imports, and create jobs, particularly in rural communities. The project will include both a nucleus estate and an out-grower scheme, positioning Ghana as a competitive player in the global palm oil market.
Ghana currently faces a production deficit of 150,000 metric tonnes annually, while neighbouring countries such as Côte d’Ivoire have begun exporting palm oil.
At the launch event held at the company’s new office in Accra, Hon. Dr Ekwow Spio-Garbrah, former Minister of Trade and Industry and Board Chairman of Onesta Ghana Ltd, said the goal is to elevate palm oil as a strategic crop alongside cocoa in driving Ghana’s agribusiness agenda. My Joy Online
July 09, 2025
Indonesia stands up against the EUDR as a non-tariff trade barrier
Indonesia has raised strong concerns over the European Union’s Deforestation Regulation (EUDR), warning that its stringent due diligence requirements disproportionately harm smallholder farmers and threaten key national export sectors.
“The EUDR places a heavy administrative burden on Indonesia’s smallholder farmers and cooperatives who export directly to Europe,” Deputy Foreign Minister, Arif Havas Oegroseno, told a hearing with foreign affairs Commission I of the House of Representatives (DPR) on Tuesday, July 8, 2025. “It’s unrealistic to expect them to fulfill the EU’s traceability and compliance mechanisms without significant support.”
Under the EUDR, products such as palm oil, cocoa, rubber, and coffee must be proven free from deforestation after December 31, 2020. Failure to comply could result in exclusion from the EU market − a scenario that would severely affect Indonesia’s rural economies.
Havas noted that some of Indonesia’s top export commodities, like cocoa and palm oil, are already deeply embedded in global supply chains. “For cocoa, 60 percent of our supply comes from imports due to crop disease in West Africa. If EU rules require full traceability of this mixed-origin input, it’s nearly impossible for exporters to comply,” he said.
He emphasized that the regulation undermines progress made by local cooperatives and small businesses in building sustainable supply chains. “We’re not against sustainability − but these rules were crafted without input from the producers most affected.”
Indonesia has responded diplomatically. During the recent BRICS Summit, the country managed to insert language into the Leaders’ Declaration opposing the EUDR.
“In paragraph 88, BRICS explicitly rejected EU’s deforestation regulation. In paragraph 68, we also pushed for a global standard for sustainable vegetable oils based on our own terms,” Havas said.
He argued that EUDR is just one example of a broader trend where developing countries are subjected to shifting, one-sided standards that disrupt trade. “We need to move beyond always listening to what Europe dictates. As a major market force, we have the right to shape sustainability standards ourselves.”
His remarks reflect growing frustration among Global South exporters who view the EUDR as a non-tariff trade barrier disguised as an environmental policy.
Beyond policy objections, Indonesia is also exploring structural trade alternatives.
“We must stop relying solely on traditional markets. In North Africa, for example, we’re investing in fertilizer factories to leverage their EU and intra-African trade agreements. That’s a smarter way to access larger markets at zero percent tariffs,” he said.
He added that lessons from Germany also revealed weaknesses in Indonesia’s export strategy.
“We rank fifth among Asian exporters in Germany, the EU, and even the U.S. Why? Because we only export 2 out of 10 key products demanded in those markets. Countries like Vietnam and Malaysia export 7 or 8. That has to change.”
Havas stressed that Indonesia must claim its place in shaping global standards. “We can’t just follow EU rules that don’t reflect our realities. As a major producer and emerging market power, Indonesia has every right to define its own sustainability benchmarks.” Indonesia Business Post
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American consumers will bear higher costs of tariffs on Malaysian products
KUALA LUMPUR: The impact of the United States' (US) 25 per cent tariff on Malaysian products will fall on American consumers, especially for goods where no alternatives exist, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
The minister said there is no substitute for Malaysian palm oil in the US market, as soybean oil cannot be processed into oleochemicals in the same way as palm-based products.
"What I want to emphasise is that out of our RM186 billion in exports, only about RM20 billion goes to the US. We export rubber products like rubber gloves, wood products including furniture, oleochemicals from palm oil, and also cocoa and chocolate.
"I see this as a non-competition issue. If they charge us 25 per cent, ultimately it is the American people who will pay for it," he told the media after the Palm Oil Briefing and Industry Dialogue Session held here today. Business Times
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‘No Palm Oil’ labels under fire: IFBA calls it a marketing gimmick
The association warned that such labelling trends, often amplified on social media, may influence consumers to make food choices that are not grounded in scientific evidence.
The Indian Food and Beverage Association (IFBA), has raised concerns over the increasing use of ‘No Palm Oil’ labels on consumer products, calling them a misleading marketing gimmick. Despite being consumed in India since the 19th century, palm oil continues to be misunderstood due to selective branding tactics that exploit health-related fears. Palm oil remains one of the most affordable, versatile, and accessible edible oils widely used by leading global brands for its long shelf life and nutritional stability.
In today’s digital era, food choices are often driven by social media trends rather than scientific evidence. IFBA cautions consumers against taking health advice from influencers who amplify half-truths without nutritional expertise. Labels like ‘Palm Oil Free’ overshadow credible dietary guidance and have become a marketing tool, especially in the FMCG sector, to tap into consumer fears. With India consuming 26 million tonnes of edible oil annually, including 9 million tonnes of palm oil, this trend has fuelled misconceptions and raised questions about whether excluding palm oil is genuinely beneficial or simply a tactic with unintended socio-economic consequences.
Deepak Jolly, chairperson, IFBA, said, “Palm oil has a recognised role in a healthy and balanced diet. Despite this, labels such as ‘No Palm Oil’ mislead consumers by prioritising marketing over science. These narratives distract the importance of overall nutritional balance and can undermine India’s efforts toward self-reliance, ultimately harming all stakeholders — from farmers and producers to consumers and the national economy.”
Shilpa Agrawal, director, scientific and regulatory affairs, IFBA, said, “The Dietary Guidelines for Indians – 2024 of the ICMR-National Institute of Nutrition clearly acknowledge the role of tocotrienols in palm oil in lowering cholesterol and supporting heart health. It recommends a rotation of edible oils, including palm oil, for a balanced fatty acid profile. This is science, not speculation.” Financial Express
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Starbucks Is Looking to Remove Seed Oils From Some of Its Food Products
SEATTLE – Starbucks is exploring how to remove canola oil from its food line-up in the US.
In one example, the company is considering making its egg white and roasted red pepper bites without canola oil, a spokesman said in response to an inquiry from Bloomberg News.
The company will also add a new egg bite to its menu that is made using avocado oil.
Canola oil, a seed oil made by crushing canola seeds, is used in several Starbucks food items in the U.S., from the popular egg white and roasted red pepper bites to its sandwiches. But that may soon change.
Bloomberg is reporting that the coffeehouse is exploring how to remove seed oils, including canola, from its lineup. A Starbucks spokesperson told the outlet that the company is also adding a new egg bite option to its menu made with avocado oil.
Last month, Starbucks CEO Brian Niccol met with the U.S. Health and Human Services Secretary, Robert F. Kennedy Jr., to discuss health and the company's menu. Seed oils are a top talking point for Kennedy, which he says are ultra-processed and linked to chronic diseases. His administration suggests using beef tallow, or rendered beef fat, instead of seed oils.
Salad chain Sweetgreen and burger chain Steak 'n Shake have already made the switch.
"We have made a commitment to remove seed oils from our restaurants," Steak 'n Shake wrote on its website. "Our fries, onion rings and chicken tenders are now cooked in 100% beef tallow in our restaurants."
Yesterday, I met with @Starbucks CEO Brian Niccol, who shared the company's plans to further MAHA its menu. I was pleased to learn that Starbucks' food and beverages already avoid artificial dyes, artificial flavors, high fructose corn syrup, artificial sweeteners, and other… pic.twitter.com/F2O9wHpVFW Entrepreneur
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U.S. dietary guidelines on a collision course with MAHA
The high-stakes effort to set nutrition standards for the food industry and government programs like Head Start is about to get a makeover from Health Secretary Robert F. Kennedy Jr.
Why it matters: It's an opportunity for Kennedy to exert more leverage over food and beverage companies and the products they make after narrower actions like pressing them to voluntarily eliminate synthetic food dyes.
Saturated fats: The Dietary Guidelines have long recommended limiting saturated fat consumption to less than 10% of daily calories to reduce the risk of cardiovascular disease, said Jessi Silverman, a dietician at the Center for Science in the Public Interest.
Indonesia stands up against the EUDR as a non-tariff trade barrier
Indonesia has raised strong concerns over the European Union’s Deforestation Regulation (EUDR), warning that its stringent due diligence requirements disproportionately harm smallholder farmers and threaten key national export sectors.
“The EUDR places a heavy administrative burden on Indonesia’s smallholder farmers and cooperatives who export directly to Europe,” Deputy Foreign Minister, Arif Havas Oegroseno, told a hearing with foreign affairs Commission I of the House of Representatives (DPR) on Tuesday, July 8, 2025. “It’s unrealistic to expect them to fulfill the EU’s traceability and compliance mechanisms without significant support.”
Under the EUDR, products such as palm oil, cocoa, rubber, and coffee must be proven free from deforestation after December 31, 2020. Failure to comply could result in exclusion from the EU market − a scenario that would severely affect Indonesia’s rural economies.
Havas noted that some of Indonesia’s top export commodities, like cocoa and palm oil, are already deeply embedded in global supply chains. “For cocoa, 60 percent of our supply comes from imports due to crop disease in West Africa. If EU rules require full traceability of this mixed-origin input, it’s nearly impossible for exporters to comply,” he said.
He emphasized that the regulation undermines progress made by local cooperatives and small businesses in building sustainable supply chains. “We’re not against sustainability − but these rules were crafted without input from the producers most affected.”
Indonesia has responded diplomatically. During the recent BRICS Summit, the country managed to insert language into the Leaders’ Declaration opposing the EUDR.
“In paragraph 88, BRICS explicitly rejected EU’s deforestation regulation. In paragraph 68, we also pushed for a global standard for sustainable vegetable oils based on our own terms,” Havas said.
He argued that EUDR is just one example of a broader trend where developing countries are subjected to shifting, one-sided standards that disrupt trade. “We need to move beyond always listening to what Europe dictates. As a major market force, we have the right to shape sustainability standards ourselves.”
His remarks reflect growing frustration among Global South exporters who view the EUDR as a non-tariff trade barrier disguised as an environmental policy.
Beyond policy objections, Indonesia is also exploring structural trade alternatives.
“We must stop relying solely on traditional markets. In North Africa, for example, we’re investing in fertilizer factories to leverage their EU and intra-African trade agreements. That’s a smarter way to access larger markets at zero percent tariffs,” he said.
He added that lessons from Germany also revealed weaknesses in Indonesia’s export strategy.
“We rank fifth among Asian exporters in Germany, the EU, and even the U.S. Why? Because we only export 2 out of 10 key products demanded in those markets. Countries like Vietnam and Malaysia export 7 or 8. That has to change.”
Havas stressed that Indonesia must claim its place in shaping global standards. “We can’t just follow EU rules that don’t reflect our realities. As a major producer and emerging market power, Indonesia has every right to define its own sustainability benchmarks.” Indonesia Business Post
---------
American consumers will bear higher costs of tariffs on Malaysian products
KUALA LUMPUR: The impact of the United States' (US) 25 per cent tariff on Malaysian products will fall on American consumers, especially for goods where no alternatives exist, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
The minister said there is no substitute for Malaysian palm oil in the US market, as soybean oil cannot be processed into oleochemicals in the same way as palm-based products.
"What I want to emphasise is that out of our RM186 billion in exports, only about RM20 billion goes to the US. We export rubber products like rubber gloves, wood products including furniture, oleochemicals from palm oil, and also cocoa and chocolate.
"I see this as a non-competition issue. If they charge us 25 per cent, ultimately it is the American people who will pay for it," he told the media after the Palm Oil Briefing and Industry Dialogue Session held here today. Business Times
---------
‘No Palm Oil’ labels under fire: IFBA calls it a marketing gimmick
The association warned that such labelling trends, often amplified on social media, may influence consumers to make food choices that are not grounded in scientific evidence.
The Indian Food and Beverage Association (IFBA), has raised concerns over the increasing use of ‘No Palm Oil’ labels on consumer products, calling them a misleading marketing gimmick. Despite being consumed in India since the 19th century, palm oil continues to be misunderstood due to selective branding tactics that exploit health-related fears. Palm oil remains one of the most affordable, versatile, and accessible edible oils widely used by leading global brands for its long shelf life and nutritional stability.
In today’s digital era, food choices are often driven by social media trends rather than scientific evidence. IFBA cautions consumers against taking health advice from influencers who amplify half-truths without nutritional expertise. Labels like ‘Palm Oil Free’ overshadow credible dietary guidance and have become a marketing tool, especially in the FMCG sector, to tap into consumer fears. With India consuming 26 million tonnes of edible oil annually, including 9 million tonnes of palm oil, this trend has fuelled misconceptions and raised questions about whether excluding palm oil is genuinely beneficial or simply a tactic with unintended socio-economic consequences.
Deepak Jolly, chairperson, IFBA, said, “Palm oil has a recognised role in a healthy and balanced diet. Despite this, labels such as ‘No Palm Oil’ mislead consumers by prioritising marketing over science. These narratives distract the importance of overall nutritional balance and can undermine India’s efforts toward self-reliance, ultimately harming all stakeholders — from farmers and producers to consumers and the national economy.”
Shilpa Agrawal, director, scientific and regulatory affairs, IFBA, said, “The Dietary Guidelines for Indians – 2024 of the ICMR-National Institute of Nutrition clearly acknowledge the role of tocotrienols in palm oil in lowering cholesterol and supporting heart health. It recommends a rotation of edible oils, including palm oil, for a balanced fatty acid profile. This is science, not speculation.” Financial Express
---------
Starbucks Is Looking to Remove Seed Oils From Some of Its Food Products
SEATTLE – Starbucks is exploring how to remove canola oil from its food line-up in the US.
In one example, the company is considering making its egg white and roasted red pepper bites without canola oil, a spokesman said in response to an inquiry from Bloomberg News.
The company will also add a new egg bite to its menu that is made using avocado oil.
Canola oil, a seed oil made by crushing canola seeds, is used in several Starbucks food items in the U.S., from the popular egg white and roasted red pepper bites to its sandwiches. But that may soon change.
Bloomberg is reporting that the coffeehouse is exploring how to remove seed oils, including canola, from its lineup. A Starbucks spokesperson told the outlet that the company is also adding a new egg bite option to its menu made with avocado oil.
Last month, Starbucks CEO Brian Niccol met with the U.S. Health and Human Services Secretary, Robert F. Kennedy Jr., to discuss health and the company's menu. Seed oils are a top talking point for Kennedy, which he says are ultra-processed and linked to chronic diseases. His administration suggests using beef tallow, or rendered beef fat, instead of seed oils.
Salad chain Sweetgreen and burger chain Steak 'n Shake have already made the switch.
"We have made a commitment to remove seed oils from our restaurants," Steak 'n Shake wrote on its website. "Our fries, onion rings and chicken tenders are now cooked in 100% beef tallow in our restaurants."
Yesterday, I met with @Starbucks CEO Brian Niccol, who shared the company's plans to further MAHA its menu. I was pleased to learn that Starbucks' food and beverages already avoid artificial dyes, artificial flavors, high fructose corn syrup, artificial sweeteners, and other… pic.twitter.com/F2O9wHpVFW Entrepreneur
---------
U.S. dietary guidelines on a collision course with MAHA
The high-stakes effort to set nutrition standards for the food industry and government programs like Head Start is about to get a makeover from Health Secretary Robert F. Kennedy Jr.
Why it matters: It's an opportunity for Kennedy to exert more leverage over food and beverage companies and the products they make after narrower actions like pressing them to voluntarily eliminate synthetic food dyes.
- But experts worry Kennedy will short-circuit the evidence-based process behind the 2025-2030 Dietary Guidelines for Americans and use the requirements to ban targets of his public health movement, like seed oils or sugary drinks.
- "The industry's worst nightmare [is] that there's substantial changes in the dietary guidelines," Mande said. "I've just recently been in a number of meetings with CEOs of big food companies. They're not looking forward to wholesale changes."
- They also influence what doctors and nutritionists tell patients and the content on public-facing tools like the USDA's MyPlate and its predecessor the food pyramid.
- Kennedy and Agriculture Secretary Brooke Rollins have said they're pushing ahead with new recommendations that could be released soon.
- The expectation is a Make America Healthy Again-inspired revamp would not only call for more of a focus on locally sourced whole foods, but could call for the return of meat with high fat content, whole milk and beef tallow, in the name of healthier alternatives.
- During a speech at Texas A&M in April, he indicated he'd scrap a scientific report that a panel of nutrition experts issued under the Biden administration in December to guide this year's update. It called for eating less meat and saturated fats, and more fiber-rich legumes, fruits and vegetables.
- MAHA-aligned nutritionists suggest existing guidelines downplay nutritional inadequacies and mistakenly stress the health benefits of beans, peas and lentils over animal products.
- "There are myriad problems with an approach that oversimplifies nutrition science — not the least of which is that lawmakers can't make sound policy off of a short high-level overview," a food industry executive told Axios, speaking on the condition of anonymity because they weren't authorized to discuss the deliberations.
Saturated fats: The Dietary Guidelines have long recommended limiting saturated fat consumption to less than 10% of daily calories to reduce the risk of cardiovascular disease, said Jessi Silverman, a dietician at the Center for Science in the Public Interest.
- The organization fears Kennedy will instead promote disputed ideas about the benefits of beef tallow and increased consumption of meat and whole fat dairy products, she said.
- Schools have already been purchasing products without synthetic dyes in response to limits in some states, said Diane Pratt-Heavner, spokesperson for the School Nutrition Association.
- "The colors are a no-brainer because there's enough question about their safety that they really shouldn't be there. Just get rid of them," said Marion Nestle, emerita professor of nutrition at New York University.
- But the science is more complicated than it may seem, Pratt-Heavner said. "Ultra-processed as a category includes so many different foods that have a variety of different nutritional profiles," she noted, adding it's not yet clear what about ultra-processed foods is driving this correlation.
- School meals are already the most regulated in the country, with districts stretched to meet limits for calories, saturated fat, sodium and sugar. Upending those goals without a corresponding increase in funding would be an enormous challenge, she said.
- It's been an area of disagreement and not something the dietary advisory committee took up in December, Mande said.
- Health and Human Services did not respond to requests for comment.
- So far, Kennedy has avoided mandating changes, raising questions about how willing he is to lower the hammer on the food industry.
- "There's no reason it wouldn't say exactly what RFK Jr. and Brooke Rollins intend it to say," Mande said. Axios
July 8, 2025
EU countries seek more cuts to deforestation rules, letter shows
BRUSSELS, July 7 (Reuters) - Most European Union countries have demanded further changes to the bloc's anti-deforestation law, saying some of its producers cannot be expected to meet its terms and face a competitive disadvantage, a letter seen by Reuters showed.
From December, the deforestation law, a world first, will require operators placing goods including soy, beef and palm oil, onto the EU market to provide proof their products did not cause deforestation.
Felling CO2-storing forests is a major cause of climate change. But despite worsening extreme weather, political will to impose strict emissions-cutting policies has ebbed, as governments worry about the financial costs.
Brussels has already delayed its launch by a year and cut back reporting rules following criticism from trading partners, including the United States, as well as from EU countries.
Of the EU's 27 member countries, agriculture ministers from 18 wrote to the Commission on Monday, demanding the EU rules are not applied to countries deemed to have a low risk of deforestation. They should stick to national measures instead, they said.
"Excessive and redundant due diligence requirements should be removed in countries where agricultural expansion is not significantly reducing the forest area," the letter said.
It was signed by Austria, Bulgaria, Croatia, the Czech Republic, Estonia, Finland, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Poland, Portugal, Romania, Slovakia, Slovenia and Sweden.
The deforestation law also applies to EU exports, prompting the 18 countries to voice concern that European producers would relocate abroad to avoid the additional cost of complying with the rules.
"The full traceability within the EU-market required for all commodities by the regulation will be extremely difficult, if not impossible for some of them," the letter added.
The countries said Brussels should consider delaying the launch of the policy again, while it drafts proposals to simplify the rules further. Reuters
---------
Environment, 18 countries including Italy ask Commission to soften deforestation regulation
For the ministers, the Regulation is a milestone in global forest protection, but it imposes disproportionate bureaucratic obligations on countries where the problem is "demonstrably insignificant."
Brussels – Eighteen EU countries, including Italy, are asking Brussels for further simplification of the EU regulation on deforestation (EUDR). The ministers of Austria, Bulgaria, Croatia, Czech Republic, Estonia, Finland, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Poland, Portugal, Romania, Slovakia, Slovenia, and Sweden wrote a letter to the European Commission and the Commissioners for the Environment, Jessika Roswall and Agriculture Commissioner Christophe Hansen, pointing out that although the law is “a milestone in global forest protection”, it “does not take sufficient account of countries with effective forest protection laws and negligible risk of deforestation“. With the consequence that “the obligations imposed on farmers, forest owners, and operators remain onerous and unjustified for countries with negligible deforestation risk” and “are disproportionate to the objective of the regulation, which is to prevent deforestation where it occurs.” Therefore, “we urge the European Commission to rapidly include the Deforestation Regulation in its simplification plans in order to ensure a coordinated and effective implementation” of the regulation across the Union. In the meantime, “it may be appropriate to further postpone the date of application of the regulation,” the ministers write.
Coming into force on 29 June 2023, the Deforestation-Free Products Regulation (EUDR) seeks to address the main driver of deforestation, i.e. the expansion of agricultural land linked to the production of commodities such as livestock, wood, cocoa, soya, palm oil, coffee, rubber, and some of their derivative products, such as leather, chocolate, tyres, or furniture. Thus, according to the regulation, any operator or trader placing these products on the EU market, or exporting from it, must be able to prove that the products do not originate from land that has recently been deforested or has contributed to forest degradation. Initially intended to enter into force on 30 December 2024, in December last year the EU granted an additional 12-month phase-in period, making the law applicable on 30 December 2025 for large and medium-sized enterprises and on 30 June 2026 for micro and small enterprises, in order to give stakeholders more time to align with the requirements.
In the letter, it is emphasised that “sustainable forest management is key to developing climate resilient forests, ensuring species diversity and enhancing the bio-economy with multiple products and services.” And that, “thanks to the tireless work of the member states, the area covered by forests and wooded areas in Europe has increased in recent decades”. Moreover, for the 18 ministers, “the Regulation constitutes a milestone in global forest protection, providing a solid legal basis for EU action against deforestation, while strengthening international cooperation and including support measures for small producers in third countries”. However, “in its current form”, the text “does not take sufficient account of countries with effective forest protection laws and a negligible risk of deforestation.” And “instead of focusing on deforestation where the risk is highest, the regulation imposes disproportionate bureaucratic obligations on countries where deforestation is demonstrably insignificant.”
After having outlined this framework, the signatories recall that the Commission has placed competitiveness “at the heart of its general and economic agenda” and is “committed to ensuring that European businesses can thrive in the global marketplace and guarantee sustainable prosperity for all EU citizens.” Elements that clash, according to the ministers, with the regulation. So much so that, the ministers note, “given the considerable complexity” of the regulation’s provisions and to allow all parties (farmers, forest owners, operators, competent authorities) to fulfil their obligations, the Commission proposed last year to postpone the regulation’s application date to 30 December 2025. A proposal that was accepted and adopted by the co-legislators in December, along with a Commission statement “affirming its commitment to reducing burdens on businesses by removing unnecessary administrative obligations.”
Ministers acknowledge that “guidelines for simplifying and reducing administrative burdens were adopted by the European Commission in April 2025. However, the obligations imposed on farmers, forest owners, and operators remain burdensome and unjustified for countries with negligible deforestation risk. They are disproportionate to the objective of the regulation, which is to prevent deforestation where it occurs,” they write.
Another issue raised in the letter is that of costs, because the obligations “generate additional costs for both companies and administrations, thus undermining the overall objective of improving competitiveness, not only in the bioeconomy sector, but also in a number of other sectors, including livestock, and adapting forests to climate change through active and sustainable forest management,” the ministers point out. Not only that: the letter denounced “the concrete risk that the increase in raw material prices, caused by the complex obligations” of the regulation, “leads to an increase in production costs and prices, with the associated risk that our producers relocate their production outside the European Union.”
Another problematic aspect, according to the EU countries, is the complete traceability of raw materials within the EU market, which, according to the ministers of the 18 member states, “will be extremely difficult, if not impossible for some of them“. On the contrary, the letter notes that “excessive and redundant due diligence requirements should be eliminated in countries where agricultural expansion does not significantly reduce forest area” and that, “in countries designated as having a low risk of deforestation, it should be accepted that existing national systems are sufficiently robust to demonstrate that compliance with the EUDR can be adequately monitored.” For example, for the ministers “it is essential to simplify requirements for raw materials and products already placed on the EU market, as well as for farmers and foresters in countries or regions with negligible deforestation risk“. Furthermore, “it is essential to facilitate a better integration of the existing national forest datasets of the Member States with the Commission’s information system”.
Finally, “in the context of a general desire to simplify EU legislation, we reiterate that many member states have already expressed a strong need for a more substantial reduction of administrative burdens” related to the Deforestation Regulation. And “we therefore urge the European Commission to rapidly include the Deforestation Regulation in its simplification plans to ensure a coordinated and effective implementation of the EUDR across the EU”. Whereas, while waiting for the Commission’s simplification proposals to be formulated, “it might be appropriate to further postpone the date of application of the regulation.” EU News
---------
EU countries demand further cuts to deforestation rules
Most EU countries have demanded more changes to the trailblazing anti-deforestation law set to be implemented in December. This isn’t the first time that this legislation has faced pushback from the bloc’s member states, as eleven member states had previously asked that the law be weakened. Some of the EU’s producers argue that they cannot be expected to meet the legislation’s terms and will face a competitive disadvantage. Under the new law, operators are required to provide proof that their products including soy, beef and palm oil entering the EU market did not cause deforestation. Felling CO2 storing forests is a significant driver of climate change but political will to impose policies that will cut emissions has decreased as financial concerns come into play. Given that the deforestation law also applies to EU exports, 18 countries have voiced concern that European producers would relocate abroad to avoid the additional cost of compliance. In its current form, the EU deforestation policy aims to end 10% of global deforestation linked to EU consumption of imported goods. Impakter
---------
Mondelēz wants to delay EUDR, Nestlé doesn’t
07-Jul-2025 by Flora Southey
The debate is heating up over whether Europe’s deforestation law should be delayed, again Food Navigator
---------
Southeast Asia, spooked by Trump tariffs, presses for more talks
BANGKOK/JAKARTA, July 8 (Reuters) - Southeast Asia's biggest economies prepared on Tuesday to step up trade negotiations with Washington after it hit them with steep tariffs, despite a last-ditch flurry of offers to boost imports and slash levies on U.S. goods.
Regional nations are among the hardest hit by President Donald Trump's sweeping tariffs, as they rely on exports and manufacturing to drive economies collectively worth more than $3.8 trillion, some helped by supply chain shifts from China.
Unchanged tariff rates, opens new tab of 32% for Indonesia and 36% for Thailand from August 1 came despite late efforts to beef up proposals such as promises to ramp up purchases of U.S. goods and eliminate tariffs on a wide range of U.S. imports.
Details of the scope of the tariffs were not immediately clear. Malaysia, a key exporter of semiconductors and electronics, faces a levy of 25%, up from 24% threatened in April, before Trump called a 90-day pause.
Thai Finance Minister Pichai Chunhavajira, who made a proposal to U.S. officials after a visit to Washington last week, said he was "a little shocked" at his country's rate of 36%, but was ready to offer more to its biggest export market.
"The United States has not considered our latest proposal," he said in a post on X. "We will find more measures and find more solutions. So be confident we will fight to the end, so that Thailand will have the best offer possible."
RAFT OF CONCESSIONS
The broader tariff rates came after Trump unveiled a trade pact last week following rounds of talks with regional manufacturing powerhouse Vietnam that yielded it a levy of 20% on most exports and 40% on transshipped goods.
Indonesia, Southeast Asia's biggest economy, said its top negotiator Airlangga Hartarto was en route to Washington on Tuesday from a Brazil summit of the BRICS grouping and would hold talks with U.S. officials right away.
"There is still space for negotiations," said Haryo Limanseto, a spokesperson of the coordinating ministry of economic affairs. "The Indonesian government is maximising those negotiation chances."
G20 economy Indonesia had offered Washington a raft of concessions early on in talks, plus offers to boost investment in the United States.
More recently it has made a slew of offers to buy more energy, commodities, and aircraft from American companies in a deal that could go as high as $34 billion.
Yet the tariffs could still prove expensive for the world's biggest exporter of palm oil, which supplies about 85% of U.S. imports of the edible oil.
U.S. shipments could fall 15% to 20% because of the tariffs, and cost Indonesia the loss of market share to rival Malaysia, as well as other vegetable oils, Hadi Sugeng, the secretary general of its palm oil association, told Reuters.
Thailand, the world's second largest exporter of rice, could also suffer a 20% reduction in demand from the U.S. market, its rice exporters' association said, while facing greater competition from third-largest shipper Vietnam. Reuters
---------
Indonesia palm oil exports to US may fall due to tariffs, industry group says
JAKARTA, July 8 (Reuters) - Indonesian palm oil exports to the United States may fall due to the 32% tariffs threatened on Indonesian goods, allowing competitors in Malaysia to gain market share, an industry official told Reuters on Tuesday.
The two countries are the world's biggest palm oil producers, but Indonesia has been by far the biggest supplier to the United States, accounting for 85% of its total imports last year.
But if the new tariff comes into effect, it could lead to a 15%-20% drop in Indonesian palm oil shipments to the United States, said Hadi Sugeng, secretary general of the Indonesia Palm Oil Association.
"The competitiveness of palm oil will decline against other vegetable oils such as soybean oil and rapeseed oil, especially if countries exporting these vegetable oils receive lower tariffs," he added.
Overall, Indonesia exported 29.5 million tons of palm oil products in 2024. Exports to the United States stood at an average of 2.25 million metric tons per year over the past three years, Hadi said.
Indonesia's top negotiator is headed to Washington on Tuesday to meet with trade representatives of the United States, an economic ministry official said.
Malaysian palm oil faces a lower tariff of 25%, giving producers an advantage over their Indonesian counterparts.
Speaking on Tuesday, Malaysia's plantations and commodities minister Johari Abdul Ghani said U.S. importers would have to bear the cost of additional tariffs on palm oil.
He said there was was no alternative to palm oil in the U.S. as soybeans cannot be converted into oleochemicals, plant-based products used in toothpastes and detergents.
"I think it's a non-competition. If they charge us 25%, ultimately the person who is going to pay for it will be the Americans," he said. Reuters
---------
‘No palm oil’ label is misleading marketing tactic, says IFBA
The Indian Food and Beverage Association (IFBA) has termed the growing trend of “No Palm Oil” labels on consumer products as misleading and described it as a marketing gimmick rather than a scientifically backed health claim.
In a statement issued on Tuesday, the association expressed concern that selective branding tactics were creating confusion among consumers, despite palm oil being widely used and consumed in India since the 19th century.
“Palm oil has a recognised role in a healthy and balanced diet. Despite this, labels such as ‘No Palm Oil’ mislead consumers by prioritising marketing over science,” said Deepak Jolly, Chairperson of the IFBA, citing the Ministry of Health’s dietary guidelines.
The association pointed out that palm oil is among the most affordable and versatile edible oils, used extensively by leading global brands due to its long shelf life and nutritional stability.
It also cautioned that the rise of such labelling practices is encouraging consumers to make food choices based on social media trends rather than verified scientific evidence. “These narratives distract from the importance of overall nutritional balance and can undermine India’s efforts towards self-reliance, ultimately harming farmers, producers, consumers and the national economy,” Jolly said.
India consumes about 26 million tonnes of edible oil every year, of which nearly 9 million tonnes is palm oil.
Shilpa Agrawal, Director of Scientific and Regulatory Affairs at IFBA, noted that the Dietary Guidelines for Indians–2024, released by the ICMR–National Institute of Nutrition, recognise the role of tocotrienols found in palm oil in lowering cholesterol and supporting heart health. The guidelines recommend a rotation of edible oils, including palm oil, to maintain a balanced fatty acid profile, she added.
The association also lauded the government’s National Mission on Edible Oils–Oil Palm (NMEO-OP), launched in 2021 with an outlay of ₹11,040 crore, which aims to expand oil palm cultivation and reduce India’s dependence on edible oil imports.
“Consumers should be cautious of influencers who exaggerate claims without understanding nutrition science. Marketing tactics such as ‘Palm Oil Free’ labels are no substitute for balanced dietary advice,” the IFBA said. DD News
EU countries seek more cuts to deforestation rules, letter shows
BRUSSELS, July 7 (Reuters) - Most European Union countries have demanded further changes to the bloc's anti-deforestation law, saying some of its producers cannot be expected to meet its terms and face a competitive disadvantage, a letter seen by Reuters showed.
From December, the deforestation law, a world first, will require operators placing goods including soy, beef and palm oil, onto the EU market to provide proof their products did not cause deforestation.
Felling CO2-storing forests is a major cause of climate change. But despite worsening extreme weather, political will to impose strict emissions-cutting policies has ebbed, as governments worry about the financial costs.
Brussels has already delayed its launch by a year and cut back reporting rules following criticism from trading partners, including the United States, as well as from EU countries.
Of the EU's 27 member countries, agriculture ministers from 18 wrote to the Commission on Monday, demanding the EU rules are not applied to countries deemed to have a low risk of deforestation. They should stick to national measures instead, they said.
"Excessive and redundant due diligence requirements should be removed in countries where agricultural expansion is not significantly reducing the forest area," the letter said.
It was signed by Austria, Bulgaria, Croatia, the Czech Republic, Estonia, Finland, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Poland, Portugal, Romania, Slovakia, Slovenia and Sweden.
The deforestation law also applies to EU exports, prompting the 18 countries to voice concern that European producers would relocate abroad to avoid the additional cost of complying with the rules.
"The full traceability within the EU-market required for all commodities by the regulation will be extremely difficult, if not impossible for some of them," the letter added.
The countries said Brussels should consider delaying the launch of the policy again, while it drafts proposals to simplify the rules further. Reuters
---------
Environment, 18 countries including Italy ask Commission to soften deforestation regulation
For the ministers, the Regulation is a milestone in global forest protection, but it imposes disproportionate bureaucratic obligations on countries where the problem is "demonstrably insignificant."
Brussels – Eighteen EU countries, including Italy, are asking Brussels for further simplification of the EU regulation on deforestation (EUDR). The ministers of Austria, Bulgaria, Croatia, Czech Republic, Estonia, Finland, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Poland, Portugal, Romania, Slovakia, Slovenia, and Sweden wrote a letter to the European Commission and the Commissioners for the Environment, Jessika Roswall and Agriculture Commissioner Christophe Hansen, pointing out that although the law is “a milestone in global forest protection”, it “does not take sufficient account of countries with effective forest protection laws and negligible risk of deforestation“. With the consequence that “the obligations imposed on farmers, forest owners, and operators remain onerous and unjustified for countries with negligible deforestation risk” and “are disproportionate to the objective of the regulation, which is to prevent deforestation where it occurs.” Therefore, “we urge the European Commission to rapidly include the Deforestation Regulation in its simplification plans in order to ensure a coordinated and effective implementation” of the regulation across the Union. In the meantime, “it may be appropriate to further postpone the date of application of the regulation,” the ministers write.
Coming into force on 29 June 2023, the Deforestation-Free Products Regulation (EUDR) seeks to address the main driver of deforestation, i.e. the expansion of agricultural land linked to the production of commodities such as livestock, wood, cocoa, soya, palm oil, coffee, rubber, and some of their derivative products, such as leather, chocolate, tyres, or furniture. Thus, according to the regulation, any operator or trader placing these products on the EU market, or exporting from it, must be able to prove that the products do not originate from land that has recently been deforested or has contributed to forest degradation. Initially intended to enter into force on 30 December 2024, in December last year the EU granted an additional 12-month phase-in period, making the law applicable on 30 December 2025 for large and medium-sized enterprises and on 30 June 2026 for micro and small enterprises, in order to give stakeholders more time to align with the requirements.
In the letter, it is emphasised that “sustainable forest management is key to developing climate resilient forests, ensuring species diversity and enhancing the bio-economy with multiple products and services.” And that, “thanks to the tireless work of the member states, the area covered by forests and wooded areas in Europe has increased in recent decades”. Moreover, for the 18 ministers, “the Regulation constitutes a milestone in global forest protection, providing a solid legal basis for EU action against deforestation, while strengthening international cooperation and including support measures for small producers in third countries”. However, “in its current form”, the text “does not take sufficient account of countries with effective forest protection laws and a negligible risk of deforestation.” And “instead of focusing on deforestation where the risk is highest, the regulation imposes disproportionate bureaucratic obligations on countries where deforestation is demonstrably insignificant.”
After having outlined this framework, the signatories recall that the Commission has placed competitiveness “at the heart of its general and economic agenda” and is “committed to ensuring that European businesses can thrive in the global marketplace and guarantee sustainable prosperity for all EU citizens.” Elements that clash, according to the ministers, with the regulation. So much so that, the ministers note, “given the considerable complexity” of the regulation’s provisions and to allow all parties (farmers, forest owners, operators, competent authorities) to fulfil their obligations, the Commission proposed last year to postpone the regulation’s application date to 30 December 2025. A proposal that was accepted and adopted by the co-legislators in December, along with a Commission statement “affirming its commitment to reducing burdens on businesses by removing unnecessary administrative obligations.”
Ministers acknowledge that “guidelines for simplifying and reducing administrative burdens were adopted by the European Commission in April 2025. However, the obligations imposed on farmers, forest owners, and operators remain burdensome and unjustified for countries with negligible deforestation risk. They are disproportionate to the objective of the regulation, which is to prevent deforestation where it occurs,” they write.
Another issue raised in the letter is that of costs, because the obligations “generate additional costs for both companies and administrations, thus undermining the overall objective of improving competitiveness, not only in the bioeconomy sector, but also in a number of other sectors, including livestock, and adapting forests to climate change through active and sustainable forest management,” the ministers point out. Not only that: the letter denounced “the concrete risk that the increase in raw material prices, caused by the complex obligations” of the regulation, “leads to an increase in production costs and prices, with the associated risk that our producers relocate their production outside the European Union.”
Another problematic aspect, according to the EU countries, is the complete traceability of raw materials within the EU market, which, according to the ministers of the 18 member states, “will be extremely difficult, if not impossible for some of them“. On the contrary, the letter notes that “excessive and redundant due diligence requirements should be eliminated in countries where agricultural expansion does not significantly reduce forest area” and that, “in countries designated as having a low risk of deforestation, it should be accepted that existing national systems are sufficiently robust to demonstrate that compliance with the EUDR can be adequately monitored.” For example, for the ministers “it is essential to simplify requirements for raw materials and products already placed on the EU market, as well as for farmers and foresters in countries or regions with negligible deforestation risk“. Furthermore, “it is essential to facilitate a better integration of the existing national forest datasets of the Member States with the Commission’s information system”.
Finally, “in the context of a general desire to simplify EU legislation, we reiterate that many member states have already expressed a strong need for a more substantial reduction of administrative burdens” related to the Deforestation Regulation. And “we therefore urge the European Commission to rapidly include the Deforestation Regulation in its simplification plans to ensure a coordinated and effective implementation of the EUDR across the EU”. Whereas, while waiting for the Commission’s simplification proposals to be formulated, “it might be appropriate to further postpone the date of application of the regulation.” EU News
---------
EU countries demand further cuts to deforestation rules
Most EU countries have demanded more changes to the trailblazing anti-deforestation law set to be implemented in December. This isn’t the first time that this legislation has faced pushback from the bloc’s member states, as eleven member states had previously asked that the law be weakened. Some of the EU’s producers argue that they cannot be expected to meet the legislation’s terms and will face a competitive disadvantage. Under the new law, operators are required to provide proof that their products including soy, beef and palm oil entering the EU market did not cause deforestation. Felling CO2 storing forests is a significant driver of climate change but political will to impose policies that will cut emissions has decreased as financial concerns come into play. Given that the deforestation law also applies to EU exports, 18 countries have voiced concern that European producers would relocate abroad to avoid the additional cost of compliance. In its current form, the EU deforestation policy aims to end 10% of global deforestation linked to EU consumption of imported goods. Impakter
---------
Mondelēz wants to delay EUDR, Nestlé doesn’t
07-Jul-2025 by Flora Southey
The debate is heating up over whether Europe’s deforestation law should be delayed, again Food Navigator
---------
Southeast Asia, spooked by Trump tariffs, presses for more talks
- High U.S. tariffs a blow to export-reliant region
- Thailand, Indonesia tariffs unchanged despite concessions
- Levies come after Trump clinches Vietnam trade deal
- Thai minister vows 'fight to the end' for better deal
BANGKOK/JAKARTA, July 8 (Reuters) - Southeast Asia's biggest economies prepared on Tuesday to step up trade negotiations with Washington after it hit them with steep tariffs, despite a last-ditch flurry of offers to boost imports and slash levies on U.S. goods.
Regional nations are among the hardest hit by President Donald Trump's sweeping tariffs, as they rely on exports and manufacturing to drive economies collectively worth more than $3.8 trillion, some helped by supply chain shifts from China.
Unchanged tariff rates, opens new tab of 32% for Indonesia and 36% for Thailand from August 1 came despite late efforts to beef up proposals such as promises to ramp up purchases of U.S. goods and eliminate tariffs on a wide range of U.S. imports.
Details of the scope of the tariffs were not immediately clear. Malaysia, a key exporter of semiconductors and electronics, faces a levy of 25%, up from 24% threatened in April, before Trump called a 90-day pause.
Thai Finance Minister Pichai Chunhavajira, who made a proposal to U.S. officials after a visit to Washington last week, said he was "a little shocked" at his country's rate of 36%, but was ready to offer more to its biggest export market.
"The United States has not considered our latest proposal," he said in a post on X. "We will find more measures and find more solutions. So be confident we will fight to the end, so that Thailand will have the best offer possible."
RAFT OF CONCESSIONS
The broader tariff rates came after Trump unveiled a trade pact last week following rounds of talks with regional manufacturing powerhouse Vietnam that yielded it a levy of 20% on most exports and 40% on transshipped goods.
Indonesia, Southeast Asia's biggest economy, said its top negotiator Airlangga Hartarto was en route to Washington on Tuesday from a Brazil summit of the BRICS grouping and would hold talks with U.S. officials right away.
"There is still space for negotiations," said Haryo Limanseto, a spokesperson of the coordinating ministry of economic affairs. "The Indonesian government is maximising those negotiation chances."
G20 economy Indonesia had offered Washington a raft of concessions early on in talks, plus offers to boost investment in the United States.
More recently it has made a slew of offers to buy more energy, commodities, and aircraft from American companies in a deal that could go as high as $34 billion.
Yet the tariffs could still prove expensive for the world's biggest exporter of palm oil, which supplies about 85% of U.S. imports of the edible oil.
U.S. shipments could fall 15% to 20% because of the tariffs, and cost Indonesia the loss of market share to rival Malaysia, as well as other vegetable oils, Hadi Sugeng, the secretary general of its palm oil association, told Reuters.
Thailand, the world's second largest exporter of rice, could also suffer a 20% reduction in demand from the U.S. market, its rice exporters' association said, while facing greater competition from third-largest shipper Vietnam. Reuters
---------
Indonesia palm oil exports to US may fall due to tariffs, industry group says
JAKARTA, July 8 (Reuters) - Indonesian palm oil exports to the United States may fall due to the 32% tariffs threatened on Indonesian goods, allowing competitors in Malaysia to gain market share, an industry official told Reuters on Tuesday.
The two countries are the world's biggest palm oil producers, but Indonesia has been by far the biggest supplier to the United States, accounting for 85% of its total imports last year.
But if the new tariff comes into effect, it could lead to a 15%-20% drop in Indonesian palm oil shipments to the United States, said Hadi Sugeng, secretary general of the Indonesia Palm Oil Association.
"The competitiveness of palm oil will decline against other vegetable oils such as soybean oil and rapeseed oil, especially if countries exporting these vegetable oils receive lower tariffs," he added.
Overall, Indonesia exported 29.5 million tons of palm oil products in 2024. Exports to the United States stood at an average of 2.25 million metric tons per year over the past three years, Hadi said.
Indonesia's top negotiator is headed to Washington on Tuesday to meet with trade representatives of the United States, an economic ministry official said.
Malaysian palm oil faces a lower tariff of 25%, giving producers an advantage over their Indonesian counterparts.
Speaking on Tuesday, Malaysia's plantations and commodities minister Johari Abdul Ghani said U.S. importers would have to bear the cost of additional tariffs on palm oil.
He said there was was no alternative to palm oil in the U.S. as soybeans cannot be converted into oleochemicals, plant-based products used in toothpastes and detergents.
"I think it's a non-competition. If they charge us 25%, ultimately the person who is going to pay for it will be the Americans," he said. Reuters
---------
‘No palm oil’ label is misleading marketing tactic, says IFBA
The Indian Food and Beverage Association (IFBA) has termed the growing trend of “No Palm Oil” labels on consumer products as misleading and described it as a marketing gimmick rather than a scientifically backed health claim.
In a statement issued on Tuesday, the association expressed concern that selective branding tactics were creating confusion among consumers, despite palm oil being widely used and consumed in India since the 19th century.
“Palm oil has a recognised role in a healthy and balanced diet. Despite this, labels such as ‘No Palm Oil’ mislead consumers by prioritising marketing over science,” said Deepak Jolly, Chairperson of the IFBA, citing the Ministry of Health’s dietary guidelines.
The association pointed out that palm oil is among the most affordable and versatile edible oils, used extensively by leading global brands due to its long shelf life and nutritional stability.
It also cautioned that the rise of such labelling practices is encouraging consumers to make food choices based on social media trends rather than verified scientific evidence. “These narratives distract from the importance of overall nutritional balance and can undermine India’s efforts towards self-reliance, ultimately harming farmers, producers, consumers and the national economy,” Jolly said.
India consumes about 26 million tonnes of edible oil every year, of which nearly 9 million tonnes is palm oil.
Shilpa Agrawal, Director of Scientific and Regulatory Affairs at IFBA, noted that the Dietary Guidelines for Indians–2024, released by the ICMR–National Institute of Nutrition, recognise the role of tocotrienols found in palm oil in lowering cholesterol and supporting heart health. The guidelines recommend a rotation of edible oils, including palm oil, to maintain a balanced fatty acid profile, she added.
The association also lauded the government’s National Mission on Edible Oils–Oil Palm (NMEO-OP), launched in 2021 with an outlay of ₹11,040 crore, which aims to expand oil palm cultivation and reduce India’s dependence on edible oil imports.
“Consumers should be cautious of influencers who exaggerate claims without understanding nutrition science. Marketing tactics such as ‘Palm Oil Free’ labels are no substitute for balanced dietary advice,” the IFBA said. DD News
July 07, 2025
Palm oil markets roiled by biofuel rules and geopolitical shocks
Indonesia's domestic use tightens supply; Malaysia seeks new markets in response to volatility
SINGAPORE/JAKARTA/KUALA LUMPUR -- Palm oil prices are jumpy this year, with markets rattled by geopolitical tensions and shifting biofuel policies that are reshaping markets for one of Southeast Asia's most important commodities.
Indonesia and Malaysia, which together produce 85% of the world's palm oil, face rising uncertainty from U.S. tariffs and the European Union's anti-deforestation law, which takes effect in December. The recent conflict between Iran and Israel has fueled still more volatility.
Although supply has recovered in recent months, analysts and industry players expect palm oil prices to stay fluid this year and into 2026, with potential changes to Indonesia's biodiesel mandate and tightening sustainability rules clouding the outlook.
"The palm oil market is navigating a storm of overhead pressure," said Atef Souki, head of palm oil derivatives at financial services company Marex, noting how U.S. tariffs are shifting trade flows. "We expect continued swings in palm oil prices, tied to both geopolitical shocks and supply adjustments."
Used in a variety of food products ranging from cooking oil and margarine to instant noodles, palm oil is the most consumed vegetable oil and remains particularly popular in Asian markets such as Indonesia, India and China. The highly versatile commodity is also used in cosmetics and biofuels.
But palm oil prices have faced a turbulent year. The benchmark Malaysia-listed front-month crude palm oil (CPO) futures contract ended the first half of the year at 3,986 ringgit ($942) per metric ton, down 18% through June 26, as production recovered from earlier weather disruptions in Indonesia and Malaysia.
The sharp decline followed a surge earlier this year driven by Indonesia's so-called B40 biodiesel mandate, which requires a 40% palm oil blend in diesel fuel. The policy, which aims to curb both the country's rising oil import bill and carbon emissions, has lifted domestic demand and limited exports.
For the rest of the year, Fitch Solutions' BMI said in a July 1 report that it expects palm oil prices to trade between 3,800 and 4,000 ringgit per ton, bringing the average annual price to 4,150 ringgit. Prices are forecast to ease in 2026, to 4,075 ringgit on average.
But a brief price spike last month underscored how sensitive the market remains to external shocks. Front-month Malaysian palm oil prices rose around 6% between June 12 and June 16, following the outbreak of the Israel-Iran war. The conflict pushed up global oil prices and renewed interest in alternative fuels such as palm-based biodiesel. Crude oil prices have settled down since the de-escalation of the conflict and palm oil prices have as well.
"As a key biofuel feedstock, palm oil prices remain closely linked to crude oil," said Matthew Biggin, senior commodities analyst at BMI. "Any sharp increase in crude prices due to geopolitical events will continue to provide support to the palm oil market."
More importantly, the June rally coincided with major policy shifts in the U.S. The Environmental Protection Agency has proposed raising the biofuel blending requirements for diesel and petrol by 8% to a record 24 billion gallons (90.8 billion liters) in 2026, including a 67% surge in biomass-based diesel targets. Although palm oil is not used in U.S. biofuels, higher demand for soybean oil used in U.S. biodiesel tightens global edible oil supplies, indirectly raising palm oil prices.
Palm oil is vital to Southeast Asia's economies. In Indonesia, the world's top producer, it contributes 3% to 4% to gross domestic product and supports millions of jobs. In Malaysia, it is the leading agricultural export. With the two countries accounting for nearly 90% of global exports, BMI warns the market faces "concentrated exposure" to weather risks in the region.
Despite the earlier volatility, analysts say the market has found support from inventories, policy-driven demand and energy market spillovers. "We now expect prices to fluctuate within a range, going forward, rather than continuing the sharp decline seen in the first half of 2025," said Sunny Nguyen, an economist at Moody's Analytics.
In May, Malaysia's palm oil stockpiles rose to almost 2 million tons, their third straight month of increases and the highest level in eight months. The latest data from Indonesia's Palm Oil Association, known as GAPKI, showed inventories jumped 51% in April from the previous month, reaching their highest level since May last year.
At the same time, analysts warn the industry faces significant unknowns. Hedgepoint Global Markets, a risk management specialist, points to multiple structural risks and a "highly fluid" outlook, citing, in particular, changing biodiesel regulations in Indonesia.
Indonesia is considering raising its biodiesel blend to B50 as soon as next year, a move that could increase domestic palm oil consumption by 1 million to 2 million tons annually, according to Hedgepoint. The shift "would likely reduce export volumes and tighten global stocks" across the regional market.
Indonesian watchdog Sawit Watch has raised concerns over the higher biodiesel mandate, warning that pushing the policy without sufficient supply could lead to price spikes, as happened in 2022 and 2023.
Despite growing domestic consumption, Indonesia's palm oil output has remained stagnant over the past six years, ranging from 51.2 million tons to 54.8 million tons annually. Industry group GAPKI expects supply to remain relatively flat this year, with annual growth estimated at around 3%.
To boost production, the Indonesian government is encouraging replanting, particularly among small farmers. In 2024, only around 38,000 hectares were rejuvenated, just slightly over a half of the initial target of 70,000 hectares. This year, it has set a significantly higher target of 180,000 hectares for smallholder oil palm rejuvenation. Nikkei Asia
----------
Dakshina Kannada farmers embrace oil palm cultivation for high returns, low investment
Mangaluru, Jul 7: In a shift from their traditional betel nut (areca) cultivation, farmers in Dakshina Kannada (DK) are increasingly turning towards oil palm (taale) farming as a supplementary crop. This move, gaining traction in recent years, is driven by the promise of high profits with relatively low investment.
Oil palm fruits are harvested around May, after which farmers collect and store them at convenient locations before handing them over to government-designated companies for oil extraction. This long-standing system in the coastal district has now gained renewed interest
Currently, around 200 farmers in the district are engaged in oil palm cultivation, producing nearly 2,000 tonnes annually. The market price for oil palm fruit stands at approximately Rs 18 per kg. However, with the central government recently slashing import duties on edible oils by 10%, a slight dip in prices is expected.
Still, farmers remain optimistic, cultivating oil palms both alongside betel nut trees and in separate plots. The crop’s minimum capital requirement and consistent returns, regardless of price fluctuations, make it an appealing alternative.
The harvested oil palm fruits are procured by Triple F Company, appointed by the Horticulture Department, and are sent to the oil extraction facility in Bagalkote. Presently, the district can supply up to 2,000 tonnes per day. If this daily production reaches 5,000 tonnes, there is potential to establish a local oil processing unit within the district itself.
Alongside Dakshina Kannada, oil palm is also cultivated in Shivamogga, Udupi, and Chikkamagaluru districts. To better organize farmers, a dedicated growers’ society has been established. As domestic oil palm production falls short of national demand, India continues to import from countries such as Malaysia, Indonesia, and parts of Africa.
Palm oil is in high demand across the food processing industry. It is a key ingredient in baked goods like biscuits and chocolates. During processing, the oil extracted from palm fruit initially has a red hue, which is later turned yellow through a refining process involving a minimal use of chemicals.
Farmers in Dakshina Kannada are now paving the way for a sustainable and profitable future by integrating oil palm cultivation into their agricultural practices, contributing significantly to both the local economy and the national food industry. Daiji World
---------
Achieve higher income through oil palm cultivation: MLA
Mahabubabad: “Farmers should switch to oil palm cultivation to earn higher income,” appealed Dr Bhukya Murali Naik, MLA of Mahabubabad. On Saturday, he participated in an awareness programme on oil palm and horticultural crops organised by the district horticulture and sericulture department in Parvathagiri village of Mahabubabad mandal.
On this occasion, the MLA advised farmers to make good use of the subsidies provided by the government and cultivate oil palm to earn an income of one lakh rupees per acre. He stated that more than 8,000 acres in Mahabubabad district are under oil palm cultivation, and in 1,350 acres, the yield has already started, with each farmer earning around one lakh rupees per acre. For the current year, a target of 4,500 acres has been set, and so far, farmers have received permission to plant saplings in 663 acres.
District Horticulture and Sericulture Officer G Mariyanna suggested that farmers plant oil palm saplings on the boundaries of their fields and in backyards. He recommended cultivating all types of vegetables in orchards, on terraces, and in front of houses for daily needs. He emphasised using good management practices in vegetable cultivation, including new methods of farming, raised beds, mulching, drip irrigation, fertigation, and others.
https://www.thehansindia.com/telangana/achieve-higher-income-through-oil-palm-cultivation-mla-985590
---------
Presco Plc Shareholders Set to Receive N42 Dividend as Company Thrives
Presco Plc, Nigeria’s palm oil company, has declared a dividend of N42 per share for the year ended December 31, 2024. The dividend payment is scheduled for August 6, 2025. Shareholders who have completed the e-dividend registration and mandated the Registrar will receive their dividends directly into their bank accounts.
The company’s audited financial statements show a 140% surge in after-tax profit to N77.79 billion in 2024, compared to N32.35 billion in 2023. Revenue doubled to N207.5 billion, representing a 102.6% increase from N102.4 billion in 2023. Presco’s profit before tax grew by 128.7% to N113.2 billion
The company’s strong performance is attributed to its agro-industrial operations and strategic market expansion. In August 2024, Presco acquired a 52% equity stake in Ghana Oil Palm Development Company Limited, aligning with its growth strategy. Shareholders’ names must appear on the Register of Members as at July 4, 2025, to qualify for the dividend payment. The Register of Shareholders will be closed from July 7 to 11, 2025. #Presco Plc Shareholders Set to Receive N42 Dividend as Company Thrives, D Market Forces
---------
Mars launches new fund to fuel sustainability innovation
Snacking giant Mars, Incorporated has launched the Mars Sustainability Investment Fund (MSIF), a new initiative that seeks to support solutions in sustainable agriculture, low-emission ingredients and next-generation packaging.
The $250 million fund ‘aims to provide capital to companies developing cutting-edge solutions that address key industry sustainability challenges’, Mars said in a statement, and will see capital deployed across investment funds and direct investments.
The three pillars of the fund, Advanced Agriculture, Innovative Ingredients and Raw Materials, and Next Generation Packaging build on Mars’ efforts to advance its Sustainable in a Generation strategic plan, the company noted.
Emissions reduction
Mars announced the fund as it reported a 1.9% reduction in greenhouse gas emissions in 2024 compared to its 2015 baseline, while over the same period, net sales have grown by 69%, reaching around $55 billion annually.
The company now operates more than 60 climate-smart agriculture projects around the world, covering 13 crops in 29 countries. These include efforts to transition palm oil farmers to RSPO certification in North Sumatra, which has led to the protection of 8,000 hectares of forest, and the ‘KIND Almond Acres Initiative’, which has led to a 17% increase in water use efficiency.
Under its Moo’ving Dairy Forward Sustainable Dairy Plan, meanwhile, Mars has committed more than $47 million over three years to help reduce emissions in its dairy supply chain, while in Thailand, the Sustainable Aromatic Rice Initiative (SARI) project has both increased production and cut water usage significantly.
‘Meaningful progress’
“I’m pleased to see our continued ability to decouple our business growth from our carbon footprint, while simultaneously investing in innovation and getting behind start-ups that will be creating new solutions and advance breakthroughs to help companies address resilience challenges,” commented Poul Weihrauch, Mars CEO.
“These are important areas to make meaningful progress in helping us to reduce exposure to future environmental risks, and eventually, turn it into profit and competitive advantage. Looking ahead, there will be setbacks – and we must be unafraid to say so – but we will stay focused on making progress, growing our business and reducing the impact we have on the planet by helping everyone thrive.” Sustainability Online
---------
Interview: Head of Malaysian palm oil producers on ‘unfair’ EUDR listing
Belvinder Kaur Sron, the chief executive officer of the Malaysian Palm Oil Council, speaks to ENDS about why efforts to exempt European commodities from the EU’s anti-deforestation rules could backfire.
Sron: “We feel there were some flaws in how the benchmarking was done.”Photo: MPOC / EE
The EU Deforestation Regulation (EUDR), designed to tackle the sale of goods produced on deforested land, has attracted fierce opposition both within the bloc and beyond since it was approved in 2023.
Under heavy pressure from industry actors and member states, the European Commission proposed an emergency year-long delay to implementing the new rules, giving companies until December this year – or June 2026 for small companies – to demonstrate that commodities including beef, wood, and palm oil that they sell in the EU do not originate from land deforested after 2020.
But that has not been enough to quell the storm. Secondary legislation classifying countries as being at high, standard or low risk of deforestation, which was signed off by member states in May, triggered a fresh barrage of criticism.
Since then, the EPP and far-right groups in the European Parliament successfully pushed through a (non-binding) call last month for the Commission to introduce a ‘negligible risk’ category for countries with “robust legal frameworks, low land-use change dynamics and sustainable land management practices”. Agriculture ministers have made a similar demand.
At the same time, some countries designated as medium risk have questioned the methodology behind the Commission’s benchmarking – and criticised lawmakers’ recent efforts to further shield EU producers.
Belvinder Kaur Sron, who has led the Malaysian Palm Oil Council since 2023, is exasperated at the push for a ‘negligible’ category.
“Now there could be an additional risk factor: no risk,” she tells ENDS Europe. “How many risks do you need? All the EU member states are [already] low risk. How was that decided? Is it a fair assessment? So we’ve got so many questions to ask the EU,” she says.
The decision to designate Malaysia as medium risk was “very surprising”, Sron adds, given the “huge improvement” it has made in tackling deforestation.
“We have been put together with countries like Brazil,” she says. In Brazil, forest clearances have been on the rise, she says. “Whereas, if you take the deforestation data for Malaysia, you just use Global Forest Watch, the deforestation rates have been decreasing.”
“We feel there were some flaws in how the benchmarking was done,” Sron explains. “If the cut-off date for the deforestation risk is 2020, by right, countries like Malaysia should be assessed on how we were improving post 2020 – it should not predate 2020. But surprisingly, the benchmarking they use is from 2015 until 2020.
The Commission has said it intends to review the country benchmarking in 2026, after the UN’s Food and Agriculture Organisation (FOA) publishes updated forest data this October. “Why is it that they couldn’t wait until the FAO new data was published?” Sron asks.
“From what I read and what I hear, it seems like [the EU] made a political decision. But you have to make a decision that’s fair. We are your trading partner, and from the very beginning we said we will be working towards complying with EUDR, [so] be fair to us.”
She adds: “This is something I think Malaysia will be bringing up at the EU [free trade] bilateral agreement negotiations that are taking place… there’s no fairness [in] the way Malaysia was benchmarked.”
When it comes to complying with EUDR, Sron says work is underway to make sure Malaysian palm oil producers – particularly smallholders – are fully on board. “It’s extremely difficult,” she says. “It’s not that we don’t want to do it. We would like to comply, but we just need more time to make sure that everyone is on board. We hope that we are all well prepared by the end of this year.”
The requirement for geolocating each plot is proving to be the major hurdle, Sron adds.
“That’s going to cost us a lot. Because forestry resides with the states in Malaysia, we have to consult the states for the data and for the information and to get permission.”
For smallholders the picture is even more complicated. “People told us: ‘oh, just get a smartphone and get satellite imagery’. It doesn’t work like that,” Sron says. “These are farmers that are 50 years, 60 years and above. They don’t have access to a smartphone. They don’t have internet access [or it is] very, very erratic in rural areas – and most of the time it is… the government agencies that have to go in to assist them.”
The impact of the EUDR is already being felt across the global commodity market, Sron adds, with buyers from across the world asking for proof of compliance with the EU rules. “We are being told: ‘you need to make sure that you are EUDR compliant’,” she says. “So there’s no way of circumventing all these requirements that are coming out from Europe. It’s bound to happen in other markets. It’s just that the benchmarking system is… creating the problem.”
[email protected]/ ENDS Europe
Palm oil markets roiled by biofuel rules and geopolitical shocks
Indonesia's domestic use tightens supply; Malaysia seeks new markets in response to volatility
SINGAPORE/JAKARTA/KUALA LUMPUR -- Palm oil prices are jumpy this year, with markets rattled by geopolitical tensions and shifting biofuel policies that are reshaping markets for one of Southeast Asia's most important commodities.
Indonesia and Malaysia, which together produce 85% of the world's palm oil, face rising uncertainty from U.S. tariffs and the European Union's anti-deforestation law, which takes effect in December. The recent conflict between Iran and Israel has fueled still more volatility.
Although supply has recovered in recent months, analysts and industry players expect palm oil prices to stay fluid this year and into 2026, with potential changes to Indonesia's biodiesel mandate and tightening sustainability rules clouding the outlook.
"The palm oil market is navigating a storm of overhead pressure," said Atef Souki, head of palm oil derivatives at financial services company Marex, noting how U.S. tariffs are shifting trade flows. "We expect continued swings in palm oil prices, tied to both geopolitical shocks and supply adjustments."
Used in a variety of food products ranging from cooking oil and margarine to instant noodles, palm oil is the most consumed vegetable oil and remains particularly popular in Asian markets such as Indonesia, India and China. The highly versatile commodity is also used in cosmetics and biofuels.
But palm oil prices have faced a turbulent year. The benchmark Malaysia-listed front-month crude palm oil (CPO) futures contract ended the first half of the year at 3,986 ringgit ($942) per metric ton, down 18% through June 26, as production recovered from earlier weather disruptions in Indonesia and Malaysia.
The sharp decline followed a surge earlier this year driven by Indonesia's so-called B40 biodiesel mandate, which requires a 40% palm oil blend in diesel fuel. The policy, which aims to curb both the country's rising oil import bill and carbon emissions, has lifted domestic demand and limited exports.
For the rest of the year, Fitch Solutions' BMI said in a July 1 report that it expects palm oil prices to trade between 3,800 and 4,000 ringgit per ton, bringing the average annual price to 4,150 ringgit. Prices are forecast to ease in 2026, to 4,075 ringgit on average.
But a brief price spike last month underscored how sensitive the market remains to external shocks. Front-month Malaysian palm oil prices rose around 6% between June 12 and June 16, following the outbreak of the Israel-Iran war. The conflict pushed up global oil prices and renewed interest in alternative fuels such as palm-based biodiesel. Crude oil prices have settled down since the de-escalation of the conflict and palm oil prices have as well.
"As a key biofuel feedstock, palm oil prices remain closely linked to crude oil," said Matthew Biggin, senior commodities analyst at BMI. "Any sharp increase in crude prices due to geopolitical events will continue to provide support to the palm oil market."
More importantly, the June rally coincided with major policy shifts in the U.S. The Environmental Protection Agency has proposed raising the biofuel blending requirements for diesel and petrol by 8% to a record 24 billion gallons (90.8 billion liters) in 2026, including a 67% surge in biomass-based diesel targets. Although palm oil is not used in U.S. biofuels, higher demand for soybean oil used in U.S. biodiesel tightens global edible oil supplies, indirectly raising palm oil prices.
Palm oil is vital to Southeast Asia's economies. In Indonesia, the world's top producer, it contributes 3% to 4% to gross domestic product and supports millions of jobs. In Malaysia, it is the leading agricultural export. With the two countries accounting for nearly 90% of global exports, BMI warns the market faces "concentrated exposure" to weather risks in the region.
Despite the earlier volatility, analysts say the market has found support from inventories, policy-driven demand and energy market spillovers. "We now expect prices to fluctuate within a range, going forward, rather than continuing the sharp decline seen in the first half of 2025," said Sunny Nguyen, an economist at Moody's Analytics.
In May, Malaysia's palm oil stockpiles rose to almost 2 million tons, their third straight month of increases and the highest level in eight months. The latest data from Indonesia's Palm Oil Association, known as GAPKI, showed inventories jumped 51% in April from the previous month, reaching their highest level since May last year.
At the same time, analysts warn the industry faces significant unknowns. Hedgepoint Global Markets, a risk management specialist, points to multiple structural risks and a "highly fluid" outlook, citing, in particular, changing biodiesel regulations in Indonesia.
Indonesia is considering raising its biodiesel blend to B50 as soon as next year, a move that could increase domestic palm oil consumption by 1 million to 2 million tons annually, according to Hedgepoint. The shift "would likely reduce export volumes and tighten global stocks" across the regional market.
Indonesian watchdog Sawit Watch has raised concerns over the higher biodiesel mandate, warning that pushing the policy without sufficient supply could lead to price spikes, as happened in 2022 and 2023.
Despite growing domestic consumption, Indonesia's palm oil output has remained stagnant over the past six years, ranging from 51.2 million tons to 54.8 million tons annually. Industry group GAPKI expects supply to remain relatively flat this year, with annual growth estimated at around 3%.
To boost production, the Indonesian government is encouraging replanting, particularly among small farmers. In 2024, only around 38,000 hectares were rejuvenated, just slightly over a half of the initial target of 70,000 hectares. This year, it has set a significantly higher target of 180,000 hectares for smallholder oil palm rejuvenation. Nikkei Asia
----------
Dakshina Kannada farmers embrace oil palm cultivation for high returns, low investment
Mangaluru, Jul 7: In a shift from their traditional betel nut (areca) cultivation, farmers in Dakshina Kannada (DK) are increasingly turning towards oil palm (taale) farming as a supplementary crop. This move, gaining traction in recent years, is driven by the promise of high profits with relatively low investment.
Oil palm fruits are harvested around May, after which farmers collect and store them at convenient locations before handing them over to government-designated companies for oil extraction. This long-standing system in the coastal district has now gained renewed interest
Currently, around 200 farmers in the district are engaged in oil palm cultivation, producing nearly 2,000 tonnes annually. The market price for oil palm fruit stands at approximately Rs 18 per kg. However, with the central government recently slashing import duties on edible oils by 10%, a slight dip in prices is expected.
Still, farmers remain optimistic, cultivating oil palms both alongside betel nut trees and in separate plots. The crop’s minimum capital requirement and consistent returns, regardless of price fluctuations, make it an appealing alternative.
The harvested oil palm fruits are procured by Triple F Company, appointed by the Horticulture Department, and are sent to the oil extraction facility in Bagalkote. Presently, the district can supply up to 2,000 tonnes per day. If this daily production reaches 5,000 tonnes, there is potential to establish a local oil processing unit within the district itself.
Alongside Dakshina Kannada, oil palm is also cultivated in Shivamogga, Udupi, and Chikkamagaluru districts. To better organize farmers, a dedicated growers’ society has been established. As domestic oil palm production falls short of national demand, India continues to import from countries such as Malaysia, Indonesia, and parts of Africa.
Palm oil is in high demand across the food processing industry. It is a key ingredient in baked goods like biscuits and chocolates. During processing, the oil extracted from palm fruit initially has a red hue, which is later turned yellow through a refining process involving a minimal use of chemicals.
Farmers in Dakshina Kannada are now paving the way for a sustainable and profitable future by integrating oil palm cultivation into their agricultural practices, contributing significantly to both the local economy and the national food industry. Daiji World
---------
Achieve higher income through oil palm cultivation: MLA
Mahabubabad: “Farmers should switch to oil palm cultivation to earn higher income,” appealed Dr Bhukya Murali Naik, MLA of Mahabubabad. On Saturday, he participated in an awareness programme on oil palm and horticultural crops organised by the district horticulture and sericulture department in Parvathagiri village of Mahabubabad mandal.
On this occasion, the MLA advised farmers to make good use of the subsidies provided by the government and cultivate oil palm to earn an income of one lakh rupees per acre. He stated that more than 8,000 acres in Mahabubabad district are under oil palm cultivation, and in 1,350 acres, the yield has already started, with each farmer earning around one lakh rupees per acre. For the current year, a target of 4,500 acres has been set, and so far, farmers have received permission to plant saplings in 663 acres.
District Horticulture and Sericulture Officer G Mariyanna suggested that farmers plant oil palm saplings on the boundaries of their fields and in backyards. He recommended cultivating all types of vegetables in orchards, on terraces, and in front of houses for daily needs. He emphasised using good management practices in vegetable cultivation, including new methods of farming, raised beds, mulching, drip irrigation, fertigation, and others.
https://www.thehansindia.com/telangana/achieve-higher-income-through-oil-palm-cultivation-mla-985590
---------
Presco Plc Shareholders Set to Receive N42 Dividend as Company Thrives
Presco Plc, Nigeria’s palm oil company, has declared a dividend of N42 per share for the year ended December 31, 2024. The dividend payment is scheduled for August 6, 2025. Shareholders who have completed the e-dividend registration and mandated the Registrar will receive their dividends directly into their bank accounts.
The company’s audited financial statements show a 140% surge in after-tax profit to N77.79 billion in 2024, compared to N32.35 billion in 2023. Revenue doubled to N207.5 billion, representing a 102.6% increase from N102.4 billion in 2023. Presco’s profit before tax grew by 128.7% to N113.2 billion
The company’s strong performance is attributed to its agro-industrial operations and strategic market expansion. In August 2024, Presco acquired a 52% equity stake in Ghana Oil Palm Development Company Limited, aligning with its growth strategy. Shareholders’ names must appear on the Register of Members as at July 4, 2025, to qualify for the dividend payment. The Register of Shareholders will be closed from July 7 to 11, 2025. #Presco Plc Shareholders Set to Receive N42 Dividend as Company Thrives, D Market Forces
---------
Mars launches new fund to fuel sustainability innovation
Snacking giant Mars, Incorporated has launched the Mars Sustainability Investment Fund (MSIF), a new initiative that seeks to support solutions in sustainable agriculture, low-emission ingredients and next-generation packaging.
The $250 million fund ‘aims to provide capital to companies developing cutting-edge solutions that address key industry sustainability challenges’, Mars said in a statement, and will see capital deployed across investment funds and direct investments.
The three pillars of the fund, Advanced Agriculture, Innovative Ingredients and Raw Materials, and Next Generation Packaging build on Mars’ efforts to advance its Sustainable in a Generation strategic plan, the company noted.
Emissions reduction
Mars announced the fund as it reported a 1.9% reduction in greenhouse gas emissions in 2024 compared to its 2015 baseline, while over the same period, net sales have grown by 69%, reaching around $55 billion annually.
The company now operates more than 60 climate-smart agriculture projects around the world, covering 13 crops in 29 countries. These include efforts to transition palm oil farmers to RSPO certification in North Sumatra, which has led to the protection of 8,000 hectares of forest, and the ‘KIND Almond Acres Initiative’, which has led to a 17% increase in water use efficiency.
Under its Moo’ving Dairy Forward Sustainable Dairy Plan, meanwhile, Mars has committed more than $47 million over three years to help reduce emissions in its dairy supply chain, while in Thailand, the Sustainable Aromatic Rice Initiative (SARI) project has both increased production and cut water usage significantly.
‘Meaningful progress’
“I’m pleased to see our continued ability to decouple our business growth from our carbon footprint, while simultaneously investing in innovation and getting behind start-ups that will be creating new solutions and advance breakthroughs to help companies address resilience challenges,” commented Poul Weihrauch, Mars CEO.
“These are important areas to make meaningful progress in helping us to reduce exposure to future environmental risks, and eventually, turn it into profit and competitive advantage. Looking ahead, there will be setbacks – and we must be unafraid to say so – but we will stay focused on making progress, growing our business and reducing the impact we have on the planet by helping everyone thrive.” Sustainability Online
---------
Interview: Head of Malaysian palm oil producers on ‘unfair’ EUDR listing
Belvinder Kaur Sron, the chief executive officer of the Malaysian Palm Oil Council, speaks to ENDS about why efforts to exempt European commodities from the EU’s anti-deforestation rules could backfire.
Sron: “We feel there were some flaws in how the benchmarking was done.”Photo: MPOC / EE
The EU Deforestation Regulation (EUDR), designed to tackle the sale of goods produced on deforested land, has attracted fierce opposition both within the bloc and beyond since it was approved in 2023.
Under heavy pressure from industry actors and member states, the European Commission proposed an emergency year-long delay to implementing the new rules, giving companies until December this year – or June 2026 for small companies – to demonstrate that commodities including beef, wood, and palm oil that they sell in the EU do not originate from land deforested after 2020.
But that has not been enough to quell the storm. Secondary legislation classifying countries as being at high, standard or low risk of deforestation, which was signed off by member states in May, triggered a fresh barrage of criticism.
Since then, the EPP and far-right groups in the European Parliament successfully pushed through a (non-binding) call last month for the Commission to introduce a ‘negligible risk’ category for countries with “robust legal frameworks, low land-use change dynamics and sustainable land management practices”. Agriculture ministers have made a similar demand.
At the same time, some countries designated as medium risk have questioned the methodology behind the Commission’s benchmarking – and criticised lawmakers’ recent efforts to further shield EU producers.
Belvinder Kaur Sron, who has led the Malaysian Palm Oil Council since 2023, is exasperated at the push for a ‘negligible’ category.
“Now there could be an additional risk factor: no risk,” she tells ENDS Europe. “How many risks do you need? All the EU member states are [already] low risk. How was that decided? Is it a fair assessment? So we’ve got so many questions to ask the EU,” she says.
The decision to designate Malaysia as medium risk was “very surprising”, Sron adds, given the “huge improvement” it has made in tackling deforestation.
“We have been put together with countries like Brazil,” she says. In Brazil, forest clearances have been on the rise, she says. “Whereas, if you take the deforestation data for Malaysia, you just use Global Forest Watch, the deforestation rates have been decreasing.”
“We feel there were some flaws in how the benchmarking was done,” Sron explains. “If the cut-off date for the deforestation risk is 2020, by right, countries like Malaysia should be assessed on how we were improving post 2020 – it should not predate 2020. But surprisingly, the benchmarking they use is from 2015 until 2020.
The Commission has said it intends to review the country benchmarking in 2026, after the UN’s Food and Agriculture Organisation (FOA) publishes updated forest data this October. “Why is it that they couldn’t wait until the FAO new data was published?” Sron asks.
“From what I read and what I hear, it seems like [the EU] made a political decision. But you have to make a decision that’s fair. We are your trading partner, and from the very beginning we said we will be working towards complying with EUDR, [so] be fair to us.”
She adds: “This is something I think Malaysia will be bringing up at the EU [free trade] bilateral agreement negotiations that are taking place… there’s no fairness [in] the way Malaysia was benchmarked.”
When it comes to complying with EUDR, Sron says work is underway to make sure Malaysian palm oil producers – particularly smallholders – are fully on board. “It’s extremely difficult,” she says. “It’s not that we don’t want to do it. We would like to comply, but we just need more time to make sure that everyone is on board. We hope that we are all well prepared by the end of this year.”
The requirement for geolocating each plot is proving to be the major hurdle, Sron adds.
“That’s going to cost us a lot. Because forestry resides with the states in Malaysia, we have to consult the states for the data and for the information and to get permission.”
For smallholders the picture is even more complicated. “People told us: ‘oh, just get a smartphone and get satellite imagery’. It doesn’t work like that,” Sron says. “These are farmers that are 50 years, 60 years and above. They don’t have access to a smartphone. They don’t have internet access [or it is] very, very erratic in rural areas – and most of the time it is… the government agencies that have to go in to assist them.”
The impact of the EUDR is already being felt across the global commodity market, Sron adds, with buyers from across the world asking for proof of compliance with the EU rules. “We are being told: ‘you need to make sure that you are EUDR compliant’,” she says. “So there’s no way of circumventing all these requirements that are coming out from Europe. It’s bound to happen in other markets. It’s just that the benchmarking system is… creating the problem.”
[email protected]/ ENDS Europe
July 06, 2025
Judicial review of the immunity clause for prosecutors in the Prosecutor's Law debated in Indonesia's high courts
The courtroom of the Constitutional Court, which is usually cold, felt slightly warmer with the exchange of arguments between representatives of the Indonesian National Police and the Attorney General's Office. Nine constitutional judges listened attentively, as did the petitioners for the judicial review of the immunity clause for prosecutors in the Prosecutor's Law. The Chief Justice of the Constitutional Court, Suhartoyo, smiled occasionally to lighten the atmosphere and requested the prosecution not to be provoked.
"This matter becomes lengthy once it reaches the investigation stage. Mr. Eben, be patient. Don't get heated," said Suhartoyo to the representative of the prosecutor's office, Leonard Eben Ezer Simanjuntak, Head of the Education and Training Agency of the Attorney General's Office.
Although wrapped in polite legal language, the tension between the prosecution and the police is evident when highlighting the fundamental differences in views regarding the issue of legal immunity for prosecutors and the coordination of law enforcement in connectivity cases. Both institutions are involved in three cases concerning the judicial review of the Prosecutor's Law, which maintains the immunity rights of prosecutors during enforcement actions (Article 8 Paragraph (5)), and the authority of the Attorney General to coordinate, control, and conduct investigations, inquiries, and prosecutions in connectivity cases (Article 35 Paragraph (1) letter g).
The case was filed by a number of advocates and students. Several articles were questioned, including Article 8 Paragraph (5) of the Attorney General's Law which reads: "In carrying out his duties and authorities, summons, examination, searches, arrests and detention of prosecutors may only be carried out with the permission of the Attorney General." Read more at Kompas
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Indonesians Now Trust Prosecutors More Than KPK, New Survey Reveals
Jakarta. The Attorney General’s Office has emerged as the most trusted law enforcement institution in Indonesia, overtaking both the Corruption Eradication Commission (KPK) and the National Police, according to the latest survey by the Indonesian Survey Institute (LSI), led by political analyst Denny Januar Ali.
The LSI survey conducted in June found that 61 percent of respondents expressed trust in the Attorney General’s Office, slightly ahead of the KPK at 60 percent, and the National Police at 54.3 percent.
“For the first time in over a decade, the Attorney General’s Office has been named the most trusted law enforcement agency by the Indonesian public,” Denny said in a written statement on Saturday.
“This is not merely a statistical outcome, but a reflection of the public’s collective psychology -- of who they believe is genuinely fighting corruption,” he added.
Under the leadership of Attorney General Sanitiar Burhanuddin, the office has prosecuted several major corruption cases, including the high-profile national broadband scandal involving then-Communications Minister Johnny Plate. He became the first sitting minister to be named a graft suspect by the Attorney General’s Office.
The institution has also pursued cases involving fuel adulteration at Pertamina, illegal mining on state-owned tin mining land Timah, illicit palm oil exports, and unauthorized pure gold production linked to mining company Aneka Tambang (Antam).
These efforts have resulted in the recovery of hundreds of trillions of rupiah in state losses from seized assets and restitution paid by suspects and convicted individuals.
“In a time of public disillusionment, the Attorney General’s Office has emerged as a new face of justice -- not without flaws, but with the courage to restore hope,” Denny said. Jakarta Globe
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Sarawak trade hits RM198.7 bln with RM71.1 bln surplus in 2024 amid global uncertainties
KUCHING, July 5: Despite facing external uncertainties such as global market fluctuations and geopolitical tensions, Sarawak recorded a total trade of RM198.7 billion and a trade surplus of RM71.1 billion in 2024.
According to Bernama, the Department of Statistics Malaysia’s (DoSM) chief statistician, Datuk Seri Dr Mohd Uzir Mahidin, said this was due to higher commodity prices, particularly crude palm oil, supported by firm global demand.
In addition, major exports, including palm oil, liquefied natural gas (LNG), and crude petroleum, continued to remain strong, thereby driving trade growth.
“In 2024, Sarawak recorded RM198.7 billion, marking an increase of 2.7 per cent compared to 2023. The trade balance also grew by 4.2 per cent to RM71.1 billion.
“Both exports and imports showed an upward trend. Exports expanded by 3.1 per cent to RM134.9 billion while imports surged by 1.9 per cent to RM63.8 billion,” he said.
In terms of major export destinations in 2024, the top five spots went to Japan, China, South Korea, Peninsular Malaysia, and India, with Japan and China accounting for 35.1 per cent of the State’s total exports, valued at RM47.3 billion.
Exports to Japan reached RM29.1 billion, a 1.4 per cent increase year-on-year, with the main products exported being LNG, valued at RM25.4 billion, followed by wood products, valued at RM1.4 billion, and iron and steel products, at RM0.8 billion.
Meanwhile, exports to China were valued at RM18.2 billion, accounting for 13.5 per cent of Sarawak’s total exports, a decline of 1.7 per cent or RM0.3 billion compared to the previous year.
LNG remained the primary export product to China, amounting to RM13.5 billion, followed by manufactured metal products at RM1.1 billion, while palm oil and palm-based products amounted to RM0.9 billion. — DayakDaily
Judicial review of the immunity clause for prosecutors in the Prosecutor's Law debated in Indonesia's high courts
The courtroom of the Constitutional Court, which is usually cold, felt slightly warmer with the exchange of arguments between representatives of the Indonesian National Police and the Attorney General's Office. Nine constitutional judges listened attentively, as did the petitioners for the judicial review of the immunity clause for prosecutors in the Prosecutor's Law. The Chief Justice of the Constitutional Court, Suhartoyo, smiled occasionally to lighten the atmosphere and requested the prosecution not to be provoked.
"This matter becomes lengthy once it reaches the investigation stage. Mr. Eben, be patient. Don't get heated," said Suhartoyo to the representative of the prosecutor's office, Leonard Eben Ezer Simanjuntak, Head of the Education and Training Agency of the Attorney General's Office.
Although wrapped in polite legal language, the tension between the prosecution and the police is evident when highlighting the fundamental differences in views regarding the issue of legal immunity for prosecutors and the coordination of law enforcement in connectivity cases. Both institutions are involved in three cases concerning the judicial review of the Prosecutor's Law, which maintains the immunity rights of prosecutors during enforcement actions (Article 8 Paragraph (5)), and the authority of the Attorney General to coordinate, control, and conduct investigations, inquiries, and prosecutions in connectivity cases (Article 35 Paragraph (1) letter g).
The case was filed by a number of advocates and students. Several articles were questioned, including Article 8 Paragraph (5) of the Attorney General's Law which reads: "In carrying out his duties and authorities, summons, examination, searches, arrests and detention of prosecutors may only be carried out with the permission of the Attorney General." Read more at Kompas
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Indonesians Now Trust Prosecutors More Than KPK, New Survey Reveals
Jakarta. The Attorney General’s Office has emerged as the most trusted law enforcement institution in Indonesia, overtaking both the Corruption Eradication Commission (KPK) and the National Police, according to the latest survey by the Indonesian Survey Institute (LSI), led by political analyst Denny Januar Ali.
The LSI survey conducted in June found that 61 percent of respondents expressed trust in the Attorney General’s Office, slightly ahead of the KPK at 60 percent, and the National Police at 54.3 percent.
“For the first time in over a decade, the Attorney General’s Office has been named the most trusted law enforcement agency by the Indonesian public,” Denny said in a written statement on Saturday.
“This is not merely a statistical outcome, but a reflection of the public’s collective psychology -- of who they believe is genuinely fighting corruption,” he added.
Under the leadership of Attorney General Sanitiar Burhanuddin, the office has prosecuted several major corruption cases, including the high-profile national broadband scandal involving then-Communications Minister Johnny Plate. He became the first sitting minister to be named a graft suspect by the Attorney General’s Office.
The institution has also pursued cases involving fuel adulteration at Pertamina, illegal mining on state-owned tin mining land Timah, illicit palm oil exports, and unauthorized pure gold production linked to mining company Aneka Tambang (Antam).
These efforts have resulted in the recovery of hundreds of trillions of rupiah in state losses from seized assets and restitution paid by suspects and convicted individuals.
“In a time of public disillusionment, the Attorney General’s Office has emerged as a new face of justice -- not without flaws, but with the courage to restore hope,” Denny said. Jakarta Globe
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Sarawak trade hits RM198.7 bln with RM71.1 bln surplus in 2024 amid global uncertainties
KUCHING, July 5: Despite facing external uncertainties such as global market fluctuations and geopolitical tensions, Sarawak recorded a total trade of RM198.7 billion and a trade surplus of RM71.1 billion in 2024.
According to Bernama, the Department of Statistics Malaysia’s (DoSM) chief statistician, Datuk Seri Dr Mohd Uzir Mahidin, said this was due to higher commodity prices, particularly crude palm oil, supported by firm global demand.
In addition, major exports, including palm oil, liquefied natural gas (LNG), and crude petroleum, continued to remain strong, thereby driving trade growth.
“In 2024, Sarawak recorded RM198.7 billion, marking an increase of 2.7 per cent compared to 2023. The trade balance also grew by 4.2 per cent to RM71.1 billion.
“Both exports and imports showed an upward trend. Exports expanded by 3.1 per cent to RM134.9 billion while imports surged by 1.9 per cent to RM63.8 billion,” he said.
In terms of major export destinations in 2024, the top five spots went to Japan, China, South Korea, Peninsular Malaysia, and India, with Japan and China accounting for 35.1 per cent of the State’s total exports, valued at RM47.3 billion.
Exports to Japan reached RM29.1 billion, a 1.4 per cent increase year-on-year, with the main products exported being LNG, valued at RM25.4 billion, followed by wood products, valued at RM1.4 billion, and iron and steel products, at RM0.8 billion.
Meanwhile, exports to China were valued at RM18.2 billion, accounting for 13.5 per cent of Sarawak’s total exports, a decline of 1.7 per cent or RM0.3 billion compared to the previous year.
LNG remained the primary export product to China, amounting to RM13.5 billion, followed by manufactured metal products at RM1.1 billion, while palm oil and palm-based products amounted to RM0.9 billion. — DayakDaily
July 04, 2025
Indonesia raises concern over EU forest rule’s impact on farmers
Jakarta (ANTARA) - Indonesia’s Ministry of Foreign Affairs has raised concerns over the European Union Deforestation Regulation (EUDR), warning that it could disproportionately impact smallholder farmers who produce key export commodities.
“We have discussed this issue before, and among the problems we are currently facing, the most significant impact is on smallholders, especially those involved in rubber, cocoa, coffee, and palm oil,” Deputy Foreign Minister Arif Havas Oegroseno told reporters in Jakarta on Thursday.
He said the regulation could make it more difficult for smallholders to export their goods to the EU, while farmers within the bloc are exempt under a new "negligible risk" classification.
“If this is accepted, it clearly reflects a discriminatory practice. There are rules that apply only to EU farmers, while those outside Europe are treated differently,” he said.
Oegroseno clarified that the EUDR is not part of the ongoing Indonesia–EU Comprehensive Economic Partnership Agreement (IEU–CEPA) talks, but is instead being addressed separately through a coalition of affected nations.
“There is a group called the ‘Like-Minded Countries’ or LMC. So we have our own forum to specifically address this issue,” he added.
When asked whether Indonesia would consider filing a complaint with the World Trade Organization (WTO), Oegroseno said the option remains under review.
“There has been no filing yet. The process is not underway. We don’t know whether it will be accepted. But even European trade experts acknowledge there’s a strong case for non-EU countries to raise this at the WTO,” he said.
On June 4, Indonesia and the EU held a bilateral dialogue in Brussels to discuss the implications of the EUDR. During the meeting, Indonesia officially objected to the regulation’s unilateral adoption, its extraterritorial impact, and the lack of consultation with producing countries.
Indonesia also requested clarification on several points, including the legal basis and methodology for risk classification, recognition of national legality systems, potential conflicts with WTO rules, and administrative burdens on smallholder farmers related to geolocation and digital traceability requirements.
The EU has committed to providing a written response to Indonesia’s questions in the near future. Antara News
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Mondelez calls for EU to delay landmark deforestation law
US chocolate makers are dialling back their support for the environmental regulation under pressure from Washington
Mondelez is lobbying for the implementation of the EU’s deforestation law to be delayed again as US chocolate makers dial back their support for the landmark regulation amid political pressure and unusually high cocoa prices.
The proposed law, due to be implemented at the end of the year, bans imports ranging from cocoa to palm oil from being sold on the EU market if they have come from deforested land.
Cadbury owner Mondelez, which had previously supported the legislation, warned that the chocolate industry was already struggling with “record prices and supply shocks”.
“Further regulatory barriers could undermine the competitiveness of a €70 billion industry — at a time when the EU needs to step up its focus on global competitiveness and economic resilience,” said Massimiliano di Domenico, vice-president of corporate and government affairs for Europe.
“That’s why we strongly believe there is a need for a further delay.”
Mars and Hershey, two other major US chocolate manufacturers, have recently declined to join European counterparts such as Nestlé and Ferrero in signing letters to the European Commission voicing support for the law.
That decision was partly motivated by US President Donald Trump’s antipathy towards environmental rules, according to people involved in drafting the letters.
Mars told the Financial Times it had been “consistent in its support” for the EU’s deforestation law. A person familiar with the company’s position said it opposed a delay.
Hershey said it “continues to support efforts from the [European] commission to ensure this regulation achieves its intended impact of addressing deforestation”.
Chocolate makers have come under heavy strain after unfavourable weather and crop disease in west Africa, the world’s main cocoa growing region, reduced supply and caused cocoa prices to more than triple in just eight months.
Futures in New York have recently fallen from their peak of more than $12,000 per tonne but remain about $4,000 above their usual range.
The EU’s deforestation law, a big piece of its ambitious environmental agenda, has been criticised by bloc agricultural ministers, trading partners and rightwing politicians, many of whom say that it is unfeasible and want it radically watered down.
It was due to come into force at the start of 2025, but Brussels agreed in October to delay its implementation by one year. Companies were issued with additional guidance to help them prepare for the detailed customs information they will have to provide.
Organisations in other sectors such as agriculture and forestry are preparing to issue a statement calling for an amendment to the law in the coming days, according to one industry body involved.
In a letter this week, seen by the Financial Times, European chocolate makers including Ferrero, Nestlé and Tony’s Chocolonely said further delays or changes to the law “would severely undermine one of the EU’s flagship policies for tackling global deforestation and nature degradation”.
Antonie Fountain, managing director of Voice Network, which advocates for sustainable cocoa production, said uncertainty over the law’s implementation was causing chocolate makers “a lot of displeasure.”
“They are saying ‘stop prevaricating so we can get on with it’. [But] some of the American companies will not be saying this in public because they see what happens to those that do stand up for sustainability.”
The US has long opposed the deforestation law. Biden administration officials sent a letter to the commission in June last year saying it posed “critical challenges” to American producers and should be delayed.
EU officials have said recently that the deforestation law is one of several seen as problematic by the US. Others included the Digital Markets Act, which regulates big tech firms, and rules governing methane emissions, they said. Financial Times
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The EUDR Benchmarking list is here - and comes as a surprise
The EU Commission's country benchmarking is an important step for the EUDR, which will apply from the end of 2025, with some surprising country classifications.
The European Union Deforestation Regulation (EUDR) continues to take momentum. On 22 May 2025, the EU Commission published an initial list for country benchmarking, which classifies all countries in the world into three risk categories in order to map the risk of deforestation associated with beef, cocoa, coffee, palm oil, rubber, soy, and timber. These raw materials and their products are often produced on illegally deforested land, which the comprehensive EUDR obligations are intended to prevent.
Countries of origin determine the scope of due diligence and control obligations
In order to map the risk of deforestation in the supply chain of the product concerned as accurately as possible, Article 29 EUDR provides for a risk-based approach. This involves classifying the country of origin of a product into one of three risk categories. The categories are “low risk,” “normal risk,” and “high risk.” Countries are classified primarily according to quantitative criteria. According to the methodology applied by the Commission, the decisive factors are the rate of deforestation and forest degradation, the extent of expansion of agricultural land for relevant commodities, and production trends of relevant commodities and products. In addition, agreements concluded and measures taken by the respective countries to protect against deforestation are taken into account.
However, the assessment carried out according to these criteria not only has an impact on the extent of deforestation but also has direct consequences for the scope of due diligence required under the EUDR. For example, operators and traders enjoy simplified due diligence obligations when sourcing relevant products from “low-risk” countries, as they are required to collect information but not to assess and mitigate risks. However, this only applies if, after assessing the complexity of the supply chain and the risk of circumvention of the regulation or mixing with products of unknown origin, the companies concerned have ensured that the relevant raw materials and products were produced exclusively in low-risk countries.
In addition, the scope of the Member States' control obligations for compliance with the EUDR obligations is also measured according to country benchmarking. The number of operators to be controlled per year is graded according to the three risk categories. Accordingly, Member States shall ensure that at least 1% of operators with products from low-risk countries are controlled each year. For countries with normal risk, this figure is at least 3%; for countries with high risk, it is at least 9%.
Classification of the majority of countries as “low risk” comes as a surprise
The only countries classified as “high risk” are Belarus, North Korea, Myanmar, and Russia. This is mainly because these countries are subject to United Nations or EU sanctions on the import or export of goods covered by the EUDR. Countries classified as “normal risk” are not explicitly listed in the country list published by the Commission, but are considered countries that are neither high nor low risk. Unsurprisingly, the countries classified as low risk include all EU member states and all countries in the European Economic Area. What is surprising, however, is the classification of countries with large areas of rainforest, such as Brazil and Côte d'Ivoire, as “normal risk” countries. The ongoing deforestation in these countries has been known for decades. The rapid deforestation in Brazil prompted the EU Economic and Social Committee to issue a statement in November last year, in which it highlighted the clearing of the Brazilian rainforest and explicitly mentioned the associated ecological risk. It is not reasonable why there is said to be no high risk of deforestation.
Simplification of the EUDR through the back door?
It is suspected that labeling countries with a high risk of deforestation as merely “normal risk” is a way of easing regulatory pressure through the back door. Last year, after strong opposition from affected companies, the EU postponed the implementation of the EUDR by one year, pushing the deadline to the end of 2025. In addition, due diligence and information requirements were to be significantly simplified. Such simplification is apparently also to be achieved indirectly through the country benchmarking that has now been published. Companies that source the affected raw materials from countries with a low risk of deforestation can therefore breathe a sigh of relief. However, it remains to be seen whether the EUDR will still be able to live up to its own ambitions. The question could arise as to whether the EUDR will ultimately just create more bureaucracy. Only the coming years will provide a clear answer to this question. Regardless of this, companies should begin implementing the EUDR as soon as possible in order to fulfill their due diligence obligations and avoid sanctions. Lexology
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Malaysia Succeeds In Attracting RM8.13 Bln Potential Investments From Italy - PM Anwar
ROME, July 3 (Bernama) -- Potential investments worth RM8.13 billion have been achieved through the Malaysia-Italy economic cooperation roundtable meeting and meetings with companies here, said Prime Minister Datuk Seri Anwar Ibrahim.
The roundtable meeting involved the participation of 41 Italian companies and agencies, comprising 23 companies from the manufacturing sector, nine companies from the service sector, two companies from the trade sector as well as five government agencies and two industrial organisations.
“The potential investments achieved through these two meetings are worth RM8.13 billion in the petrochemical, machinery and equipment, electrical and electronics, and oil and gas services and equipment sectors,” he said at a press conference at the end of his visit to Rome, Italy.
Anwar, who is also the Finance Minister, said the potential exports generated were worth RM425 million for oleochemical products, renewable energy, biofuel feedstocks, animal feed additives and food.
The roundtable meeting allowed potential companies in Italy an opportunity to express their desire to collaborate with Malaysian companies in various sectors such as high-tech manufacturing, renewable energy, digital economy and sustainable infrastructure.
Meanwhile, Anwar said that in a bilateral meeting with his counterpart Giorgia Meloni, Rome and Putrajaya would increase cooperation in the energy, solar, geothermal and hydrogen sectors.
Among the collaborations are the Petronas and Eni SpA joint venture in Pengerang, Johor in the sustainable aviation fuel (SAF) sector; Perodua and Magna Styer for electric vehicle batteries; and collaboration and investment in the modernisation of the electricity grid, including the ASEAN Power Grid (APG).
In the discussion, the Prime Minister said he also applied for recognition of the Malaysian Sustainable Palm Oil (MSPO) certification from Italy, in addition to requesting support for a fairer assessment of the European Union Deforestation-Free Products Regulation (EUDR) Implementation.
Malaysia aims to be in the low-risk category in the EUDR benchmark system when the rating is reviewed by 2026.
Meanwhile, Malaysia has also sought Italy's support in concluding negotiations on the Malaysia-European Union Free Trade Agreement (FTA).
The Prime Minister arrived here on Tuesday for a three-day working visit to Italy, the third largest economy in the EU.
The visit was at the invitation of Meloni.
Throughout the visit, Anwar was accompanied by Foreign Minister Datuk Seri Mohamad Hasan, Transport Minister Anthony Loke, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu, Defence Minister Datuk Seri Mohamed Khaled Nordin and Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
Also joining the delegation was Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir.
In 2024, total trade between Malaysia and Italy recorded an increase of two per cent to US$3.18 billion (RM14.61 billion) compared to the same period in 2023.
For the period from January to May 2025, total trade between the two countries continued to show positive performance with an increase of 3.3 per cent to US$1.48 billion (RM6.5 billion) compared to the same period in 2024.
The Prime Minister departed for France for an official visit on July 3 and 4 after concluding his visit to Italy. Bernama
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EFTA MALAYSIA JOINT STATEMENT ON SUSTAINABLE PALM OIL
The EFTA States and Malaysia reaffirm their shared and ongoing commitment to work
together to conserve forests and to support and promote sustainable supply chains, and
sustainable production of commodities.
The EFTA States and Malaysia will continue to uphold their respective commitments to
the UN Framework Convention on Climate Change and the Paris Agreement, the
Convention on Biological Diversity, the UN Convention to Combat Desertification, the
Sustainable Development Goals, the Glasgow Leaders’ Declaration on Forests and Land
Use and other relevant initiatives and instruments.
The EFTA States and Malaysia will continue to communicate with relevant stakeholders
on the initiatives to support sustainable practices along palm oil supply chains. The EFTA
States and Malaysia also commit to regularly share information with one another about
ongoing domestic developments related to the sustainability of palm oil supply chains.
This will include initiatives by Malaysia to support and improve the sustainable
development of the Malaysian palm oil industry, including the Malaysian Sustainable
Palm Oil (MSPO) Certification Scheme and forthcoming updates to the scheme. The
EFTA States and Malaysia acknowledge the role of these initiatives in improving the
sustainability of palm oil supply chains.
The EFTA States and Malaysia look forward to continuing their efforts domestically and
internationally to support and encourage future development of sustainability of palm oil
supply chains to meet their shared goals. EFTA
Indonesia raises concern over EU forest rule’s impact on farmers
Jakarta (ANTARA) - Indonesia’s Ministry of Foreign Affairs has raised concerns over the European Union Deforestation Regulation (EUDR), warning that it could disproportionately impact smallholder farmers who produce key export commodities.
“We have discussed this issue before, and among the problems we are currently facing, the most significant impact is on smallholders, especially those involved in rubber, cocoa, coffee, and palm oil,” Deputy Foreign Minister Arif Havas Oegroseno told reporters in Jakarta on Thursday.
He said the regulation could make it more difficult for smallholders to export their goods to the EU, while farmers within the bloc are exempt under a new "negligible risk" classification.
“If this is accepted, it clearly reflects a discriminatory practice. There are rules that apply only to EU farmers, while those outside Europe are treated differently,” he said.
Oegroseno clarified that the EUDR is not part of the ongoing Indonesia–EU Comprehensive Economic Partnership Agreement (IEU–CEPA) talks, but is instead being addressed separately through a coalition of affected nations.
“There is a group called the ‘Like-Minded Countries’ or LMC. So we have our own forum to specifically address this issue,” he added.
When asked whether Indonesia would consider filing a complaint with the World Trade Organization (WTO), Oegroseno said the option remains under review.
“There has been no filing yet. The process is not underway. We don’t know whether it will be accepted. But even European trade experts acknowledge there’s a strong case for non-EU countries to raise this at the WTO,” he said.
On June 4, Indonesia and the EU held a bilateral dialogue in Brussels to discuss the implications of the EUDR. During the meeting, Indonesia officially objected to the regulation’s unilateral adoption, its extraterritorial impact, and the lack of consultation with producing countries.
Indonesia also requested clarification on several points, including the legal basis and methodology for risk classification, recognition of national legality systems, potential conflicts with WTO rules, and administrative burdens on smallholder farmers related to geolocation and digital traceability requirements.
The EU has committed to providing a written response to Indonesia’s questions in the near future. Antara News
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Mondelez calls for EU to delay landmark deforestation law
US chocolate makers are dialling back their support for the environmental regulation under pressure from Washington
Mondelez is lobbying for the implementation of the EU’s deforestation law to be delayed again as US chocolate makers dial back their support for the landmark regulation amid political pressure and unusually high cocoa prices.
The proposed law, due to be implemented at the end of the year, bans imports ranging from cocoa to palm oil from being sold on the EU market if they have come from deforested land.
Cadbury owner Mondelez, which had previously supported the legislation, warned that the chocolate industry was already struggling with “record prices and supply shocks”.
“Further regulatory barriers could undermine the competitiveness of a €70 billion industry — at a time when the EU needs to step up its focus on global competitiveness and economic resilience,” said Massimiliano di Domenico, vice-president of corporate and government affairs for Europe.
“That’s why we strongly believe there is a need for a further delay.”
Mars and Hershey, two other major US chocolate manufacturers, have recently declined to join European counterparts such as Nestlé and Ferrero in signing letters to the European Commission voicing support for the law.
That decision was partly motivated by US President Donald Trump’s antipathy towards environmental rules, according to people involved in drafting the letters.
Mars told the Financial Times it had been “consistent in its support” for the EU’s deforestation law. A person familiar with the company’s position said it opposed a delay.
Hershey said it “continues to support efforts from the [European] commission to ensure this regulation achieves its intended impact of addressing deforestation”.
Chocolate makers have come under heavy strain after unfavourable weather and crop disease in west Africa, the world’s main cocoa growing region, reduced supply and caused cocoa prices to more than triple in just eight months.
Futures in New York have recently fallen from their peak of more than $12,000 per tonne but remain about $4,000 above their usual range.
The EU’s deforestation law, a big piece of its ambitious environmental agenda, has been criticised by bloc agricultural ministers, trading partners and rightwing politicians, many of whom say that it is unfeasible and want it radically watered down.
It was due to come into force at the start of 2025, but Brussels agreed in October to delay its implementation by one year. Companies were issued with additional guidance to help them prepare for the detailed customs information they will have to provide.
Organisations in other sectors such as agriculture and forestry are preparing to issue a statement calling for an amendment to the law in the coming days, according to one industry body involved.
In a letter this week, seen by the Financial Times, European chocolate makers including Ferrero, Nestlé and Tony’s Chocolonely said further delays or changes to the law “would severely undermine one of the EU’s flagship policies for tackling global deforestation and nature degradation”.
Antonie Fountain, managing director of Voice Network, which advocates for sustainable cocoa production, said uncertainty over the law’s implementation was causing chocolate makers “a lot of displeasure.”
“They are saying ‘stop prevaricating so we can get on with it’. [But] some of the American companies will not be saying this in public because they see what happens to those that do stand up for sustainability.”
The US has long opposed the deforestation law. Biden administration officials sent a letter to the commission in June last year saying it posed “critical challenges” to American producers and should be delayed.
EU officials have said recently that the deforestation law is one of several seen as problematic by the US. Others included the Digital Markets Act, which regulates big tech firms, and rules governing methane emissions, they said. Financial Times
---------
The EUDR Benchmarking list is here - and comes as a surprise
The EU Commission's country benchmarking is an important step for the EUDR, which will apply from the end of 2025, with some surprising country classifications.
The European Union Deforestation Regulation (EUDR) continues to take momentum. On 22 May 2025, the EU Commission published an initial list for country benchmarking, which classifies all countries in the world into three risk categories in order to map the risk of deforestation associated with beef, cocoa, coffee, palm oil, rubber, soy, and timber. These raw materials and their products are often produced on illegally deforested land, which the comprehensive EUDR obligations are intended to prevent.
Countries of origin determine the scope of due diligence and control obligations
In order to map the risk of deforestation in the supply chain of the product concerned as accurately as possible, Article 29 EUDR provides for a risk-based approach. This involves classifying the country of origin of a product into one of three risk categories. The categories are “low risk,” “normal risk,” and “high risk.” Countries are classified primarily according to quantitative criteria. According to the methodology applied by the Commission, the decisive factors are the rate of deforestation and forest degradation, the extent of expansion of agricultural land for relevant commodities, and production trends of relevant commodities and products. In addition, agreements concluded and measures taken by the respective countries to protect against deforestation are taken into account.
However, the assessment carried out according to these criteria not only has an impact on the extent of deforestation but also has direct consequences for the scope of due diligence required under the EUDR. For example, operators and traders enjoy simplified due diligence obligations when sourcing relevant products from “low-risk” countries, as they are required to collect information but not to assess and mitigate risks. However, this only applies if, after assessing the complexity of the supply chain and the risk of circumvention of the regulation or mixing with products of unknown origin, the companies concerned have ensured that the relevant raw materials and products were produced exclusively in low-risk countries.
In addition, the scope of the Member States' control obligations for compliance with the EUDR obligations is also measured according to country benchmarking. The number of operators to be controlled per year is graded according to the three risk categories. Accordingly, Member States shall ensure that at least 1% of operators with products from low-risk countries are controlled each year. For countries with normal risk, this figure is at least 3%; for countries with high risk, it is at least 9%.
Classification of the majority of countries as “low risk” comes as a surprise
The only countries classified as “high risk” are Belarus, North Korea, Myanmar, and Russia. This is mainly because these countries are subject to United Nations or EU sanctions on the import or export of goods covered by the EUDR. Countries classified as “normal risk” are not explicitly listed in the country list published by the Commission, but are considered countries that are neither high nor low risk. Unsurprisingly, the countries classified as low risk include all EU member states and all countries in the European Economic Area. What is surprising, however, is the classification of countries with large areas of rainforest, such as Brazil and Côte d'Ivoire, as “normal risk” countries. The ongoing deforestation in these countries has been known for decades. The rapid deforestation in Brazil prompted the EU Economic and Social Committee to issue a statement in November last year, in which it highlighted the clearing of the Brazilian rainforest and explicitly mentioned the associated ecological risk. It is not reasonable why there is said to be no high risk of deforestation.
Simplification of the EUDR through the back door?
It is suspected that labeling countries with a high risk of deforestation as merely “normal risk” is a way of easing regulatory pressure through the back door. Last year, after strong opposition from affected companies, the EU postponed the implementation of the EUDR by one year, pushing the deadline to the end of 2025. In addition, due diligence and information requirements were to be significantly simplified. Such simplification is apparently also to be achieved indirectly through the country benchmarking that has now been published. Companies that source the affected raw materials from countries with a low risk of deforestation can therefore breathe a sigh of relief. However, it remains to be seen whether the EUDR will still be able to live up to its own ambitions. The question could arise as to whether the EUDR will ultimately just create more bureaucracy. Only the coming years will provide a clear answer to this question. Regardless of this, companies should begin implementing the EUDR as soon as possible in order to fulfill their due diligence obligations and avoid sanctions. Lexology
---------
Malaysia Succeeds In Attracting RM8.13 Bln Potential Investments From Italy - PM Anwar
ROME, July 3 (Bernama) -- Potential investments worth RM8.13 billion have been achieved through the Malaysia-Italy economic cooperation roundtable meeting and meetings with companies here, said Prime Minister Datuk Seri Anwar Ibrahim.
The roundtable meeting involved the participation of 41 Italian companies and agencies, comprising 23 companies from the manufacturing sector, nine companies from the service sector, two companies from the trade sector as well as five government agencies and two industrial organisations.
“The potential investments achieved through these two meetings are worth RM8.13 billion in the petrochemical, machinery and equipment, electrical and electronics, and oil and gas services and equipment sectors,” he said at a press conference at the end of his visit to Rome, Italy.
Anwar, who is also the Finance Minister, said the potential exports generated were worth RM425 million for oleochemical products, renewable energy, biofuel feedstocks, animal feed additives and food.
The roundtable meeting allowed potential companies in Italy an opportunity to express their desire to collaborate with Malaysian companies in various sectors such as high-tech manufacturing, renewable energy, digital economy and sustainable infrastructure.
Meanwhile, Anwar said that in a bilateral meeting with his counterpart Giorgia Meloni, Rome and Putrajaya would increase cooperation in the energy, solar, geothermal and hydrogen sectors.
Among the collaborations are the Petronas and Eni SpA joint venture in Pengerang, Johor in the sustainable aviation fuel (SAF) sector; Perodua and Magna Styer for electric vehicle batteries; and collaboration and investment in the modernisation of the electricity grid, including the ASEAN Power Grid (APG).
In the discussion, the Prime Minister said he also applied for recognition of the Malaysian Sustainable Palm Oil (MSPO) certification from Italy, in addition to requesting support for a fairer assessment of the European Union Deforestation-Free Products Regulation (EUDR) Implementation.
Malaysia aims to be in the low-risk category in the EUDR benchmark system when the rating is reviewed by 2026.
Meanwhile, Malaysia has also sought Italy's support in concluding negotiations on the Malaysia-European Union Free Trade Agreement (FTA).
The Prime Minister arrived here on Tuesday for a three-day working visit to Italy, the third largest economy in the EU.
The visit was at the invitation of Meloni.
Throughout the visit, Anwar was accompanied by Foreign Minister Datuk Seri Mohamad Hasan, Transport Minister Anthony Loke, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu, Defence Minister Datuk Seri Mohamed Khaled Nordin and Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
Also joining the delegation was Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir.
In 2024, total trade between Malaysia and Italy recorded an increase of two per cent to US$3.18 billion (RM14.61 billion) compared to the same period in 2023.
For the period from January to May 2025, total trade between the two countries continued to show positive performance with an increase of 3.3 per cent to US$1.48 billion (RM6.5 billion) compared to the same period in 2024.
The Prime Minister departed for France for an official visit on July 3 and 4 after concluding his visit to Italy. Bernama
---------
EFTA MALAYSIA JOINT STATEMENT ON SUSTAINABLE PALM OIL
The EFTA States and Malaysia reaffirm their shared and ongoing commitment to work
together to conserve forests and to support and promote sustainable supply chains, and
sustainable production of commodities.
The EFTA States and Malaysia will continue to uphold their respective commitments to
the UN Framework Convention on Climate Change and the Paris Agreement, the
Convention on Biological Diversity, the UN Convention to Combat Desertification, the
Sustainable Development Goals, the Glasgow Leaders’ Declaration on Forests and Land
Use and other relevant initiatives and instruments.
The EFTA States and Malaysia will continue to communicate with relevant stakeholders
on the initiatives to support sustainable practices along palm oil supply chains. The EFTA
States and Malaysia also commit to regularly share information with one another about
ongoing domestic developments related to the sustainability of palm oil supply chains.
This will include initiatives by Malaysia to support and improve the sustainable
development of the Malaysian palm oil industry, including the Malaysian Sustainable
Palm Oil (MSPO) Certification Scheme and forthcoming updates to the scheme. The
EFTA States and Malaysia acknowledge the role of these initiatives in improving the
sustainability of palm oil supply chains.
The EFTA States and Malaysia look forward to continuing their efforts domestically and
internationally to support and encourage future development of sustainability of palm oil
supply chains to meet their shared goals. EFTA
July 03, 2025
Indonesia to revoke palm plantation certificate in Riau
Jakarta (ANTARA) - The Indonesian government has pledged to revoke the certificate of a palm oil plantation found guilty of operating within the Tesso Nilo National Park area in Palalawan District, Riau, a minister announced.
Agrarian and Spatial Planning Minister/National Land Agency (BPN) Head Nusron Wahid stated that no further reverification is necessary, as his ministry has already conducted a field verification confirming the company's legal violation.
Wahid stated here on Tuesday that the palm oil plantation's certificate will be revoked immediately as part of the ministry's commitment to preserving the country's national park area and combating illegal land use.
Speaking to journalists after meeting with lawmakers from the House of Representatives' Commission II overseeing forestry and agriculture, he noted that the national park is home to wild Sumatran elephants.
As reported earlier, Sumatran forests are habitats for some of the world's rarest plant species and are among the few remaining landscapes where elephants, tigers, and orangutans coexist.
Sumatra, the world's sixth-largest island, covers 470 thousand square kilometers and is home to 580 bird species, 201 mammalian species, and more than 15 thousand known plant species.
The Tesso Nilo National Park is home to wild Sumatran elephants (Elephas maximus sumatranus), but forest loss, particularly due to plantation, development projects, and forest fires, has threatened these land mammals. Antara News
---------
Indonesia seeks ‘predictable policy’ by India on palm oil imports
Indonesia has urged India to adopt a predictable palm oil import policy to ensure stable trade amid changing climate and policy shifts. Highlighting mutual market needs, Indonesia seeks transparency in stock management and import-export rules to avoid trade disruptions.
Indonesia, the world’s biggest producer and exporter of crude palm oil (CPO), on Wednesday sought a “predictable policy: on shipment of cooking oils to India.
“We both are big populous countries in the world and have large domestic markets to cater to. We need to have a predictable policy taking into consideration the supply and demand side issues,” Ina Hagniningtyas Krisnamurthi, Indonesia’s ambassador to India, told FE.
She said that there is a need for openness in understanding the stock management policies of both the governments and “we hope that predictable policies or certainty policies will not hamper the trade itself,”.
“With climate change being frequent occurrences, we also understand that Indian government will also impose certain policies while we also impose certain policies when it comes to weather and yield,” Krisnamurthi said referring imports duties imposed by India and export restrictions by Indonesia.
On May 30, India reduced the effective import duty including basic custom duty and cess on these three oils to 16.5% from 27.5% imposed in September last year to curb spike in prices
Since May, 2025 Indonesia has increased export duties on CPO to 10% from 7.5% aimed at funding its biofuel programme and replanting initiative.
In April, 2022, Indonesia imposed a ban on palm oil exports, which had disrupted global supplies and pushed up cooking oils prices globally.
India imported the over 4.83 million tonne (MT), over 55% of its total crude and RBD palm oil imports from Indonesia during 2023 – 2024 oil year (November-October).
In 2025, Indonesia is projected to increase its palm oil production to 47 MT , with exports aiming for 25 million tonnes. Indonesia’s B40 biodiesel mandate – which blends 40% palm oil into diesel, diverts 2 MT of oil.
In 2024, Indonesia exported palm oil majorly to India, China, Pakistan, Bangladesh, the United States, and Egypt. Financial Express
---------
EU court deals blow to Indonesian palm companies Musim Mas and Permata Hijau Palm Oleo and Nubika Jaya in anti-dumping fight
The EU's top trade court upheld steep anti-dumping duties of up to 46.4% on Indonesian palm oil imports, rejecting all legal challenges from major producers.
BRUSSELS (CN) — Indonesian palm oil companies suffered a comprehensive legal defeat Wednesday as the European Union's General Court rejected all challenges to punishing anti-dumping duties, delivering a major victory for EU trade enforcement and maintaining penalties of up to 46.4% on fatty acid imports.
In two related rulings issued Wednesday, the Luxembourg-based court upheld the European Commission's decision to impose steep tariffs on Indonesian fatty acid imports. The judgments dismissed challenges from three Indonesian companies that had argued the trade penalties were improperly calculated and unjustified.
A three-judge panel dismissed every legal argument raised by Musim Mas, the Indonesian subsidiary of the Singapore-headquartered Musim Mas Group, with operations in 13 countries and 37,000 workers worldwide. The company, one of Indonesia's largest palm oil producers, faced a 46.4% penalty on its products.
Two other Indonesian companies, Permata Hijau Palm Oleo and Nubika Jaya, also lost their separate challenge and face 26.6% duties.
The Musim Mas case raised broader legal challenges to EU trade enforcement, while the companion case focused mainly on procedural issues about individual company treatment.
Commission wins on all counts
In August 2022, the Coalition Against Unfair Trade in Fatty Acid — the EU industry group that filed the original complaint with the commission — withdrew its complaint. But the EU executive decided to continue the investigation anyway, a move Musim Mas challenged as improper, though the court disagreed.
A significant part of the ruling clarified the commission's authority to continue trade investigations. "Where a complaint is withdrawn, the institutions have the option — but not the obligation — to terminate the proceeding," the court ruled, confirming that the European Commission can pursue trade enforcement even when European industry withdraws support.
Anti-dumping measures typically arise when domestic producers claim foreign competitors are selling products below cost, potentially harming local industry.
"The imposition of anti-dumping measures was 'clearly' in the interest of the Union industry," the court found, rejecting Musim Mas arguments that the commission failed to prove imposing duties served EU interests. The company had pointed to the complaint withdrawal and opposition from some European producers who argued the duties would disrupt supply chains.
The court said the commission must give special consideration to eliminating unfair trade practices and restoring fair competition. The judges found the commission properly concluded the duties would not harm users and other stakeholders too much.
Musim Mas also challenged how the commission calculated "normal value" — the benchmark price used to determine dumping margins. The company claimed officials used unreasonably high profit margins of 35.32% and 91.24% for certain product types.
"The use of actual margins to construct the normal value for the product types cannot give rise to an infringement," the court ruled. The judges found the high profit margins resulted from the company's own pricing policy in Indonesia and were legitimate since the sales were made in normal business conditions.
"The applicant was barred from alleging such an error of fact for the first time in the action," the court ruled in dismissing Musim Mas's exchange rate arguments. The company had alleged the commission used incorrect exchange rates, leading to a dumping margin that was 0.31% too high, but failed to raise this issue during the proceedings.
"Consequently, the action must be dismissed in its entirety," the court concluded, ordering all Indonesian companies to pay the commission's legal costs.
Industry impact
The ruling allowing investigations to continue after complaint withdrawal significantly strengthens the EU executive's enforcement powers and could encourage more aggressive trade action even when European industry support wavers. The decisions maintain current trade restrictions on Indonesian fatty acid imports and reflect ongoing tensions between the EU and Southeast Asian palm oil producers over environmental and trade concerns.
European officials have increasingly scrutinized palm oil imports over deforestation worries, while Indonesia and Malaysia have pushed back against what they view as unfair barriers. Indonesia has filed broader disputes against the EU at the World Trade Organization over palm oil regulations, with a WTO panel report issued in January 2025 in a related case.
Indonesia is the EU's 33rd-biggest trading partner and the EU's fifth-biggest ASEAN trading partner in 2024, as per EU data. Bilateral trade in goods between the EU and Indonesia totaled 27.3 billion euros ($29.5 billion) in 2024, with EU exports worth 9.7 billion euros ($11.4 billion) and EU imports worth 17.5 billion euros ($20.6 billion). Palm oil and its derivatives represent a multibillion-dollar global trade, with Indonesia serving as the world's largest producer.
The European Commission originally imposed the anti-dumping duties in January 2023 following "an investigation which showed that EU industry was being harmed by dumped imports because it could not compete on price, resulting in a market share loss." The duties range from 15.2% to 46.4% to help ensure fair competition between fatty acids imported from Indonesia and locally produced ones.
Fatty acid is widely used in food, cosmetics and medicines. Palm oil is a key raw ingredient of fatty acid, making the trade measures significant for both industrial and consumer product supply chains. Musim Mas markets itself as a sustainability leader, having been the first company in Indonesia to achieve RSPO certification — which sets global standards for sustainable palm oil production — back in 2004.
The Indonesian companies could potentially appeal the decisions to the European Court of Justice within two months. The General Court handles most EU trade disputes as the first court in the Court of Justice of the European Union. Court House News
---------
EU Pushing Ahead With Climate Plans Amid Concerns Over Energy Costs, Tariffs — Commodities Roundup
The European Union is pushing ahead with a new target for cutting greenhouse gas emissions, testing the willingness of politicians and the public across the bloc to pay for a sweeping shift to cleaner technologies at a time of economic upheaval on the continent.
The European Commission, the EU's executive, proposed legislation that would require a 90% emissions decrease by 2040 compared to 1990 levels, pushing aside concerns from some members of the bloc as their companies struggle with high energy costs, slumping markets and the threat of a wall of tariffs from the U.S. French President Emmanuel Macron suggested last week that the decision should be delayed.
The EU's emissions have fallen 37% between 1990 and 2023, a sign of the massive investments in clean technology that will be needed to achieve the 90% target. Morningstar
---------
HVO demand may hit record as EU rules tighten
Stricter biofuel mandates in northwest Europe may push hydrotreated vegetable oil (HVO) consumption to record highs in 2026, as suppliers shift away from conventional biodiesel to meet EU targets. In Germany alone, demand could rise by 1.5mn t — nearly quadruple 2025 levels — according to Argus Consulting.
To bypass the 7pc cap on blending conventional methyl ester biodiesel into diesel, suppliers are turning to HVO Class II, boosting trading on the Intercontinental Exchange (Ice) ahead of rising renewables targets next year.
A total of 717,500t of used cooking oil-based HVO (Class II) futures traded on Ice in June, up from 140,100t in May and surpassing the previous record of 232,000t in March.
The Ice contract — cash-settled and based on Argus spot assessments — launched in 2022 as both a differential to Ice low-sulphur gasoil and outright, with the differential more actively traded. Open interest now extends to June 2026. December positions total 99,000t, close to the 109,000t held in the more liquid Ice Ucome biodiesel contract, Ice data show.
Since 20 June, the forward curve has remained in contango, peaking in the fourth quarter. This reflects expectations of rising demand ahead of 2026, when biofuels targets increase in key markets such as the Netherlands and Germany, which are adopting greenhouse gas (GHG) reduction-based mandates. Both recently published draft legislation to transpose the EU's revised Renewable Energy Directive (RED III), proposing to abolish double-counting of Annex IX feedstocks.
Obligated parties will need a broader fuel mix to meet higher targets, supporting waste-based HVO demand.
Spot market activity has also picked up. Argus Open Markets (AOM) volumes for HVO Class II have reached 36,000t so far in 2025, nearly matching the 2024 total of 44,000t. Trades of palm oil mill effluent-based HVO (Class IV) have hit 22,000t, already exceeding last year's 16,000t.
The increase in spot demand has been supported by changes to renewable fuel ticket carryover rules. The Netherlands cut its allowance from 25pc to 10pc for 2025 compliance, reducing flexibility for obligated blenders and prompting more near-term buying.
Strong demand and tight supply pushed HVO Class II premiums to a seven-month high in June, peaking at $1,095/m³ on 20 June and holding firm into July.
In April, Germany's federal agriculture and food office (BLE) suspended an HVO producer's access to the Nabisy biomass registry and froze Proof of Sustainability (PoS) documents during an investigation. These documents are required to log fuels on compliance platforms and count them towards RED targets. Prices rose following the suspension and remained supported even after the PoS documents were reinstated under the "protection of confidence" principle, as delays and reduced supply continued.
Trade flows have also been reshaped by EU anti-dumping duties imposed in February on Chinese biodiesel and HVO. Just 95,000t of HVO arrived at the Amsterdam-Rotterdam-Antwerp (ARA) hub in the second quarter, down from 155,000t a year earlier, according to Kpler data. Arbitrage for standard 5,000t parcels has largely disappeared for Chinese producers facing duties of 21.7pc or more, although flows remain viable for exporters subject to the reduced 10pc rate.
Anti-dumping and anti-subsidy duties are already in place for HVO and biodiesel of US and Canadian origin. While US-origin HVO flows to the UK remain unaffected — EU duties were removed in 2022 — the UK launched an anti-dumping investigation into US HVO in March..
By Evelina Lungu/ Argus Media
---------
Turkey to set SAF mandates for airlines and suppliers
Turkey’s civil aviation authority announced plans to impose mandates on airlines and jet fuel suppliers to increase the use of sustainable aviation fuel (SAF), aiming to cut aviation emissions by 5% by 2030.
This initiative supports compliance with the UN International Civil Aviation Organisation’s emission reduction program, which becomes mandatory in 2027.
Under the new regulations, airlines operating international flights involving Turkey must use enough SAF to achieve the 5% emissions reduction target. Jet fuel suppliers in Turkey will also be required to source SAF to meet this goal, including domestic oil refiners like Tupras.
The authority will set and publish minimum emission reduction targets annually before the end of the third quarter. It will enforce penalties on airlines and fuel suppliers that fail to comply.
Additionally, airlines must load 90% of their required SAF for international flights within Turkey.
According to the International Energy Agency, aviation accounts for 2.5% of global energy-related CO2 emissions.
Tupras, Turkey’s largest oil refiner, plans to produce 20,000 metric tons of SAF at a major plant by 2026 and aims to increase production to 400,000 tons by constructing a new unit at its Izmir refinery, pending final investment approval.
Local biofuel company DB Tarimsal Enerji also targets 100,000 tons of SAF production at a new facility.
Turkey’s jet fuel consumption declined by 4% last year to 6.26 million tons (approximately 135,000 barrels per day), according to the country’s energy regulator. Biofuels News
Indonesia to revoke palm plantation certificate in Riau
Jakarta (ANTARA) - The Indonesian government has pledged to revoke the certificate of a palm oil plantation found guilty of operating within the Tesso Nilo National Park area in Palalawan District, Riau, a minister announced.
Agrarian and Spatial Planning Minister/National Land Agency (BPN) Head Nusron Wahid stated that no further reverification is necessary, as his ministry has already conducted a field verification confirming the company's legal violation.
Wahid stated here on Tuesday that the palm oil plantation's certificate will be revoked immediately as part of the ministry's commitment to preserving the country's national park area and combating illegal land use.
Speaking to journalists after meeting with lawmakers from the House of Representatives' Commission II overseeing forestry and agriculture, he noted that the national park is home to wild Sumatran elephants.
As reported earlier, Sumatran forests are habitats for some of the world's rarest plant species and are among the few remaining landscapes where elephants, tigers, and orangutans coexist.
Sumatra, the world's sixth-largest island, covers 470 thousand square kilometers and is home to 580 bird species, 201 mammalian species, and more than 15 thousand known plant species.
The Tesso Nilo National Park is home to wild Sumatran elephants (Elephas maximus sumatranus), but forest loss, particularly due to plantation, development projects, and forest fires, has threatened these land mammals. Antara News
---------
Indonesia seeks ‘predictable policy’ by India on palm oil imports
Indonesia has urged India to adopt a predictable palm oil import policy to ensure stable trade amid changing climate and policy shifts. Highlighting mutual market needs, Indonesia seeks transparency in stock management and import-export rules to avoid trade disruptions.
Indonesia, the world’s biggest producer and exporter of crude palm oil (CPO), on Wednesday sought a “predictable policy: on shipment of cooking oils to India.
“We both are big populous countries in the world and have large domestic markets to cater to. We need to have a predictable policy taking into consideration the supply and demand side issues,” Ina Hagniningtyas Krisnamurthi, Indonesia’s ambassador to India, told FE.
She said that there is a need for openness in understanding the stock management policies of both the governments and “we hope that predictable policies or certainty policies will not hamper the trade itself,”.
“With climate change being frequent occurrences, we also understand that Indian government will also impose certain policies while we also impose certain policies when it comes to weather and yield,” Krisnamurthi said referring imports duties imposed by India and export restrictions by Indonesia.
On May 30, India reduced the effective import duty including basic custom duty and cess on these three oils to 16.5% from 27.5% imposed in September last year to curb spike in prices
Since May, 2025 Indonesia has increased export duties on CPO to 10% from 7.5% aimed at funding its biofuel programme and replanting initiative.
In April, 2022, Indonesia imposed a ban on palm oil exports, which had disrupted global supplies and pushed up cooking oils prices globally.
India imported the over 4.83 million tonne (MT), over 55% of its total crude and RBD palm oil imports from Indonesia during 2023 – 2024 oil year (November-October).
In 2025, Indonesia is projected to increase its palm oil production to 47 MT , with exports aiming for 25 million tonnes. Indonesia’s B40 biodiesel mandate – which blends 40% palm oil into diesel, diverts 2 MT of oil.
In 2024, Indonesia exported palm oil majorly to India, China, Pakistan, Bangladesh, the United States, and Egypt. Financial Express
---------
EU court deals blow to Indonesian palm companies Musim Mas and Permata Hijau Palm Oleo and Nubika Jaya in anti-dumping fight
The EU's top trade court upheld steep anti-dumping duties of up to 46.4% on Indonesian palm oil imports, rejecting all legal challenges from major producers.
BRUSSELS (CN) — Indonesian palm oil companies suffered a comprehensive legal defeat Wednesday as the European Union's General Court rejected all challenges to punishing anti-dumping duties, delivering a major victory for EU trade enforcement and maintaining penalties of up to 46.4% on fatty acid imports.
In two related rulings issued Wednesday, the Luxembourg-based court upheld the European Commission's decision to impose steep tariffs on Indonesian fatty acid imports. The judgments dismissed challenges from three Indonesian companies that had argued the trade penalties were improperly calculated and unjustified.
A three-judge panel dismissed every legal argument raised by Musim Mas, the Indonesian subsidiary of the Singapore-headquartered Musim Mas Group, with operations in 13 countries and 37,000 workers worldwide. The company, one of Indonesia's largest palm oil producers, faced a 46.4% penalty on its products.
Two other Indonesian companies, Permata Hijau Palm Oleo and Nubika Jaya, also lost their separate challenge and face 26.6% duties.
The Musim Mas case raised broader legal challenges to EU trade enforcement, while the companion case focused mainly on procedural issues about individual company treatment.
Commission wins on all counts
In August 2022, the Coalition Against Unfair Trade in Fatty Acid — the EU industry group that filed the original complaint with the commission — withdrew its complaint. But the EU executive decided to continue the investigation anyway, a move Musim Mas challenged as improper, though the court disagreed.
A significant part of the ruling clarified the commission's authority to continue trade investigations. "Where a complaint is withdrawn, the institutions have the option — but not the obligation — to terminate the proceeding," the court ruled, confirming that the European Commission can pursue trade enforcement even when European industry withdraws support.
Anti-dumping measures typically arise when domestic producers claim foreign competitors are selling products below cost, potentially harming local industry.
"The imposition of anti-dumping measures was 'clearly' in the interest of the Union industry," the court found, rejecting Musim Mas arguments that the commission failed to prove imposing duties served EU interests. The company had pointed to the complaint withdrawal and opposition from some European producers who argued the duties would disrupt supply chains.
The court said the commission must give special consideration to eliminating unfair trade practices and restoring fair competition. The judges found the commission properly concluded the duties would not harm users and other stakeholders too much.
Musim Mas also challenged how the commission calculated "normal value" — the benchmark price used to determine dumping margins. The company claimed officials used unreasonably high profit margins of 35.32% and 91.24% for certain product types.
"The use of actual margins to construct the normal value for the product types cannot give rise to an infringement," the court ruled. The judges found the high profit margins resulted from the company's own pricing policy in Indonesia and were legitimate since the sales were made in normal business conditions.
"The applicant was barred from alleging such an error of fact for the first time in the action," the court ruled in dismissing Musim Mas's exchange rate arguments. The company had alleged the commission used incorrect exchange rates, leading to a dumping margin that was 0.31% too high, but failed to raise this issue during the proceedings.
"Consequently, the action must be dismissed in its entirety," the court concluded, ordering all Indonesian companies to pay the commission's legal costs.
Industry impact
The ruling allowing investigations to continue after complaint withdrawal significantly strengthens the EU executive's enforcement powers and could encourage more aggressive trade action even when European industry support wavers. The decisions maintain current trade restrictions on Indonesian fatty acid imports and reflect ongoing tensions between the EU and Southeast Asian palm oil producers over environmental and trade concerns.
European officials have increasingly scrutinized palm oil imports over deforestation worries, while Indonesia and Malaysia have pushed back against what they view as unfair barriers. Indonesia has filed broader disputes against the EU at the World Trade Organization over palm oil regulations, with a WTO panel report issued in January 2025 in a related case.
Indonesia is the EU's 33rd-biggest trading partner and the EU's fifth-biggest ASEAN trading partner in 2024, as per EU data. Bilateral trade in goods between the EU and Indonesia totaled 27.3 billion euros ($29.5 billion) in 2024, with EU exports worth 9.7 billion euros ($11.4 billion) and EU imports worth 17.5 billion euros ($20.6 billion). Palm oil and its derivatives represent a multibillion-dollar global trade, with Indonesia serving as the world's largest producer.
The European Commission originally imposed the anti-dumping duties in January 2023 following "an investigation which showed that EU industry was being harmed by dumped imports because it could not compete on price, resulting in a market share loss." The duties range from 15.2% to 46.4% to help ensure fair competition between fatty acids imported from Indonesia and locally produced ones.
Fatty acid is widely used in food, cosmetics and medicines. Palm oil is a key raw ingredient of fatty acid, making the trade measures significant for both industrial and consumer product supply chains. Musim Mas markets itself as a sustainability leader, having been the first company in Indonesia to achieve RSPO certification — which sets global standards for sustainable palm oil production — back in 2004.
The Indonesian companies could potentially appeal the decisions to the European Court of Justice within two months. The General Court handles most EU trade disputes as the first court in the Court of Justice of the European Union. Court House News
---------
EU Pushing Ahead With Climate Plans Amid Concerns Over Energy Costs, Tariffs — Commodities Roundup
The European Union is pushing ahead with a new target for cutting greenhouse gas emissions, testing the willingness of politicians and the public across the bloc to pay for a sweeping shift to cleaner technologies at a time of economic upheaval on the continent.
The European Commission, the EU's executive, proposed legislation that would require a 90% emissions decrease by 2040 compared to 1990 levels, pushing aside concerns from some members of the bloc as their companies struggle with high energy costs, slumping markets and the threat of a wall of tariffs from the U.S. French President Emmanuel Macron suggested last week that the decision should be delayed.
The EU's emissions have fallen 37% between 1990 and 2023, a sign of the massive investments in clean technology that will be needed to achieve the 90% target. Morningstar
---------
HVO demand may hit record as EU rules tighten
Stricter biofuel mandates in northwest Europe may push hydrotreated vegetable oil (HVO) consumption to record highs in 2026, as suppliers shift away from conventional biodiesel to meet EU targets. In Germany alone, demand could rise by 1.5mn t — nearly quadruple 2025 levels — according to Argus Consulting.
To bypass the 7pc cap on blending conventional methyl ester biodiesel into diesel, suppliers are turning to HVO Class II, boosting trading on the Intercontinental Exchange (Ice) ahead of rising renewables targets next year.
A total of 717,500t of used cooking oil-based HVO (Class II) futures traded on Ice in June, up from 140,100t in May and surpassing the previous record of 232,000t in March.
The Ice contract — cash-settled and based on Argus spot assessments — launched in 2022 as both a differential to Ice low-sulphur gasoil and outright, with the differential more actively traded. Open interest now extends to June 2026. December positions total 99,000t, close to the 109,000t held in the more liquid Ice Ucome biodiesel contract, Ice data show.
Since 20 June, the forward curve has remained in contango, peaking in the fourth quarter. This reflects expectations of rising demand ahead of 2026, when biofuels targets increase in key markets such as the Netherlands and Germany, which are adopting greenhouse gas (GHG) reduction-based mandates. Both recently published draft legislation to transpose the EU's revised Renewable Energy Directive (RED III), proposing to abolish double-counting of Annex IX feedstocks.
Obligated parties will need a broader fuel mix to meet higher targets, supporting waste-based HVO demand.
Spot market activity has also picked up. Argus Open Markets (AOM) volumes for HVO Class II have reached 36,000t so far in 2025, nearly matching the 2024 total of 44,000t. Trades of palm oil mill effluent-based HVO (Class IV) have hit 22,000t, already exceeding last year's 16,000t.
The increase in spot demand has been supported by changes to renewable fuel ticket carryover rules. The Netherlands cut its allowance from 25pc to 10pc for 2025 compliance, reducing flexibility for obligated blenders and prompting more near-term buying.
Strong demand and tight supply pushed HVO Class II premiums to a seven-month high in June, peaking at $1,095/m³ on 20 June and holding firm into July.
In April, Germany's federal agriculture and food office (BLE) suspended an HVO producer's access to the Nabisy biomass registry and froze Proof of Sustainability (PoS) documents during an investigation. These documents are required to log fuels on compliance platforms and count them towards RED targets. Prices rose following the suspension and remained supported even after the PoS documents were reinstated under the "protection of confidence" principle, as delays and reduced supply continued.
Trade flows have also been reshaped by EU anti-dumping duties imposed in February on Chinese biodiesel and HVO. Just 95,000t of HVO arrived at the Amsterdam-Rotterdam-Antwerp (ARA) hub in the second quarter, down from 155,000t a year earlier, according to Kpler data. Arbitrage for standard 5,000t parcels has largely disappeared for Chinese producers facing duties of 21.7pc or more, although flows remain viable for exporters subject to the reduced 10pc rate.
Anti-dumping and anti-subsidy duties are already in place for HVO and biodiesel of US and Canadian origin. While US-origin HVO flows to the UK remain unaffected — EU duties were removed in 2022 — the UK launched an anti-dumping investigation into US HVO in March..
By Evelina Lungu/ Argus Media
---------
Turkey to set SAF mandates for airlines and suppliers
Turkey’s civil aviation authority announced plans to impose mandates on airlines and jet fuel suppliers to increase the use of sustainable aviation fuel (SAF), aiming to cut aviation emissions by 5% by 2030.
This initiative supports compliance with the UN International Civil Aviation Organisation’s emission reduction program, which becomes mandatory in 2027.
Under the new regulations, airlines operating international flights involving Turkey must use enough SAF to achieve the 5% emissions reduction target. Jet fuel suppliers in Turkey will also be required to source SAF to meet this goal, including domestic oil refiners like Tupras.
The authority will set and publish minimum emission reduction targets annually before the end of the third quarter. It will enforce penalties on airlines and fuel suppliers that fail to comply.
Additionally, airlines must load 90% of their required SAF for international flights within Turkey.
According to the International Energy Agency, aviation accounts for 2.5% of global energy-related CO2 emissions.
Tupras, Turkey’s largest oil refiner, plans to produce 20,000 metric tons of SAF at a major plant by 2026 and aims to increase production to 400,000 tons by constructing a new unit at its Izmir refinery, pending final investment approval.
Local biofuel company DB Tarimsal Enerji also targets 100,000 tons of SAF production at a new facility.
Turkey’s jet fuel consumption declined by 4% last year to 6.26 million tons (approximately 135,000 barrels per day), according to the country’s energy regulator. Biofuels News
July 01, 2025
Platts to launch Indonesia domestic POME assessment, effective Aug 1
Platts, part of S&P Global Commodity Insights, will launch a daily assessment for Indonesia domestic palm oil mill effluent (POME), effective Aug. 1, 2025.
Indonesia produces approximately 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. The new assessment will reflect domestic POME spot prices in this important market.
The Indonesia POME domestic assessment will reflect a free fatty acid (FFA) value of a maximum of 50%, a moisture and impurities content of a maximum of 3%, and a total fatty matter (TFM) of a minimum of 95%.
The assessment will reflect a cargo size of 100 to 2,000 mt, loading one to seven days forward from the date of publication on a delivered-at-place (DAP) Dumai, Sumatra Island, basis. It will also consider cargoes delivering to other locations in Sumatra Island, including Belawan, Palembang, Lampung, and Aceh, but may be normalized back to the basis location of Dumai.
Other volumes may also be considered by normalizing back to the stated volume specifications. The assessment will reflect cargo values inclusive of a 12% value-added tax.
The assessment will have the following specifications: More at SP Global
---------
Clean fuel production credit: Regulatory roadblocks ahead
The Sec. 45Z clean fuel production credit is a significant initiative introduced by the Inflation Reduction Act of 2022, P.L. 117–169. This credit aims to incentivize the production of clean transportation fuels, including either sustainable aviation fuel (SAF) or non–SAF transportation fuel, within the United States by offering tax credits to producers that meet specific environmental criteria.
To be eligible for the credit in a specific tax year, taxpayers must produce a qualifying transportation fuel within the United States for sale to an unrelated party for certain specified purposes. A non–SAF transportation fuel must be produced in accordance with certain feedstock requirements, must be suitable for use in highway vehicles or aircraft, and must have a lifecycle greenhouse gas (GHG) emissions rate of no more than 50 kilograms per carbon dioxide equivalent (CO2e) (based on relative global warming potential) per million British thermal units (mmBTU) (Secs. 45Z(b)(1)(A) and (d)). Alternatively, SAF must adhere to specific industry standards, meet a separate set of feedstock requirements, and be sold for use in aircraft.
On Jan. 10, 2025, Treasury and the IRS issued Notice 2025–10, which contains draft forthcoming proposed regulations for the Sec. 45Z clean fuel production credit, and Notice 2025–11, which includes the Sec. 45Z annual emissions rate table. Also in January, the Department of Energy released the 45ZCF–GREET model, with a user manual and other information, to calculate emissions for non–SAF transportation fuel. Overall, the guidance provides helpful information but ultimately neglects several crucial industry issues. Therefore, taxpayers in the clean fuel industry are evaluating how to apply the notices, given their nonbinding and somewhat ineffective nature.
This item explores two key issues among many that are puzzling industry participants: imported used cooking oil (UCO) and the definition of a qualifying sale, particularly for clean fuel producers selling to wholesalers. The lack of clarity in these areas could significantly affect the clean fuel industry’s ability to generate the Sec. 45Z credit.
Imported UCO
The forthcoming proposed regulations do not provide specific guidance on the use of imported UCO as a feedstock eligible for the Sec. 45Z credit, specifically with respect to non–SAF transportation fuel. Notice 2025–10 contemplates concerns regarding the identification and market implications of imported UCO, particularly the risk of mislabeling substances such as virgin palm oil as UCO. Compared to palm oil, genuine UCO has a significantly lower GHG emissions rate, meaning that producing biodiesel from UCO generates considerably fewer carbon emissions than producing it from palm oil. This is primarily because UCO is considered a waste product that would otherwise be discarded, while palm oil production is often linked to large–scale deforestation, leading to high GHG emissions. Therefore, this mislabeling could potentially lead to higher emissions impacts than genuine UCO. Due to these concerns, the notice provides that pathways using imported UCO are currently unavailable in the 45ZCF–GREET model until further guidance is issued. When the current 45ZCF–GREET model does not include certain feedstocks such as imported UCO in its production pathways, the taxpayer must request a provisional emissions rate (PER) to establish an official emissions rate for its product.
This guidance fails to provide a specific PER process for taxpayers to follow, which creates significant uncertainty for industry participants that have relied on imported UCO as a sustainable feedstock, and this lack of a defined process will lead to difficulties in ensuring compliance and claiming the Sec. 45Z credit. To complicate this further, there is not an anticipated date for further guidance under the new administration; therefore, taxpayers that use imported UCO will be left searching for answers in the interim, making it difficult to estimate this incentive’s benefits.
Qualifying sale More at The Tax Adviser
---------
Biodiesel seen as a path to preserve forests and boost family income
The federal government’s Social Biofuel Seal estimates that more than R$30 billion has already been directed to home farming
Keeping the Amazon intact has become a global priority amid mounting climate risks from deforestation in the world’s largest tropical forest. At the same time, improving the living conditions of the region’s population remains a critical challenge. One alternative that demonstrates it is possible to balance both goals is the production of biofuels, particularly biodiesel.
“I recently experienced an economic revolution in my life. Today, I have a well-structured home and a car. I never imagined that one day I would be in the economic situation I am in,” says Luane Alves Penha, a farmer and açaí producer in the city of Mazagão, Amapá. “Our family’s situation improved from the moment we learned to produce while preserving nature,” adds the owner of a 50-hectare (500,000 m²) plot where she cultivates açaí alongside cassava, coconut, pineapple, banana, lemon, pumpkin, and corn.
Ms. Penha, who lives with her husband and their three children, says the turning point came two years ago when she joined a local food cooperative called Bio+Açaí. The cooperative supports 812 families in Amapá and Pará, providing technical assistance and guaranteeing the purchase of all the açaí produced by its members
“Before, we had a lot of uncertainty. We produced a little but were discouraged because we had no one to sell to,” she recalls. “Today, we can see a return on our investment. Our income from açaí was around R$1,200. With the technical assistance we receive, production has increased, and our income from açaí alone has more than doubled—not to mention what we earn from other crops,” says Ms. Penha, noting that she stopped cutting down other tree species on her land to work exclusively with açaí, a once common practice. “I learned that other trees help protect the açaí grove from pests and provide me with extra income.”
The driving force behind Bio+Açaí’s ability to provide technical and financial assistance to Ms. Penha and 811 other families is the Social Biofuel Seal program, administered by the Ministry of Agrarian
Development and Home Farming. Created in 2004, the initiative has gained traction with the increase in the biodiesel blend in diesel fuel and the growing recognition that sustainable development in the Amazon depends on strengthening the bioeconomy.
Valor Agribusiness
---------
Daabon Sustainable Palm Oils: A Trusted and Scalable Alternative To Seed Oils
Seed Oil Free Certification provides transparency and highlights the unique benefits of Daabon’s palm oils for food brands, restaurants, and health-conscious consumers.
BOCA RATON, Fla.--(BUSINESS WIRE)--The Seed Oil Free Alliance, an independent certifying organization advised by a coalition of public health and nutrition experts, announced today that Daabon’s full line of palm fruit and palm kernel oils are Seed Oil Free Certified™, providing brands and restaurants a scalable, functional, and ethical alternative to industrial seed oils. Daabon is the first producer of palm oil, a fruit oil that is heat-stable and low in omega-6, to be awarded the Seed Oil Free Certified Seal. Daabon’s transparent, vertically integrated production model ensures this solution is sustainable, ethical, and ready for scale.
“Highly refined industrial seed oils like soybean, canola, and sunflower are overly processed, unstable when heated, and contribute to an imbalanced omega-6 to omega-3 ratio, a topic of ongoing research for its potential role in inflammation,” said Jonathan Rubin, founder and CEO of the Seed Oil Free Alliance. “Palm oil is often mistaken for a seed oil, but it’s from the fruit of the oil palm. When grown and processed right, it’s one of the most promising fats available today.”
The key to palm oil’s functional advantage lies in its fatty acid profile, which is approximately 50% saturated, 40% monounsaturated, and 10% polyunsaturated fatty acids (PUFA). By contrast, common seed oils are up to 60% PUFA and prone to breaking down when heated. A 2021 study in the journal Foods found that palm olein resisted oxidation better than soybean and sunflower oils when repeatedly heated and produced significantly fewer harmful compounds.
Qua Kiat Seng, a chemical engineer with 50 years of experience in the oil and fats industry, currently Adjunct Senior Lecturer at Monash University Malaysia, agrees that palm oil is the healthier choice for deep frying. “We dove into the chemical changes oils undergo during frying, like oxidation, hydrolysis, and polymerization, and how these affect oil quality and health. It highlights that palm olein’s composition makes it more resistant to breakdown, while highly refined seed oils like soybean, canola, and sunflower are more prone to forming undesirable byproducts.”
Palm oil is the world’s most popular vegetable oil and an amazingly versatile natural product. Unfortunately, in certain parts of the world, palm oil has been linked to deforestation, loss of wild habitats, and social injustice for workers. Daabon is firmly committed to sustainability, providing full traceability to the farm. In addition to Seed Oil Free Certified, the company holds a series of accreditations demonstrating its commitment to environmental, social, and economic issues, including Roundtable on Sustainable Palm Oil (RSPO), Fair Trade USA, Regenerative Organic (Gold Level), and Non-GMO Project.
A list of Daabon’s Seed Oil Free Certified Products can be found at: seedoilfreecertified.com/brand/daabon. Brands and restaurants can purchase Seed Oil Free Certified Daabon Palm Oil and Palm Kernel Oil at daabonusa.com/contact-us/ Business Wire
---------
Medella's blend of red palm oil and coconut oil trending as an antioxidant packed cooking oil
Medella has introduced Red Palm & Coconut Cooking Oil, Malaysia’s first 50/50 blend of natural red palm oil and coconut oil, offering a healthier alternative for everyday cooking. Developed using a chemical-free process that preserves its nutritional value, the oil delivers a rich source of antioxidants and healthy fats, supporting the needs of increasingly health-conscious consumers.
Each 15g serving contains 4.5g of Medium Chain Triglycerides (MCTs) for quick energy and metabolism support, 3.75mg of Vitamin E to promote immune and skin health, and 1.13mg of Provitamin A to maintain good vision. With non-communicable diseases such as diabetes and high cholesterol on the rise, Medella’s launch provides a timely solution for Malaysians looking to make better choices in the kitchen.
The Red Palm & Coconut Cooking Oil blend brings together the wellness benefits of two natural oils, offering a clean, flavorful option that supports a balanced lifestyle.
Trend Themes
1. Antioxidant-rich Ingredients - The fusion of red palm and coconut oils in cooking products highlights the growing consumer interest in antioxidant-rich ingredients for enhanced health benefits.
2. Functional Food Innovations - Medella's new oil blend, with added MCTs and vitamins, reflects a broader trend towards functional foods designed to support metabolic and immune health.
3. Natural Oil Blends - The introduction of chemical-free processing methods in oil production is steering the trend towards natural oil blends that maintain nutritional integrity.
Industry Implications
1. Health-conscious Food Products - As consumers prioritize health in their dietary choices, there is increasing demand in the food industry for products that offer both nutrition and preventative health benefits.
2. Nutraceuticals - Integrating ingredients like MCTs and vitamins into cooking oils underscores a shift in the nutraceutical industry towards versatile products that merge everyday use with health enhancement.
3. Clean Label Foods - The appeal of chemical-free processing in Medella's oil reflects the clean label movement gaining traction across the food industry, driven by consumer desire for transparency and purity. Trend Hunter
Platts to launch Indonesia domestic POME assessment, effective Aug 1
Platts, part of S&P Global Commodity Insights, will launch a daily assessment for Indonesia domestic palm oil mill effluent (POME), effective Aug. 1, 2025.
Indonesia produces approximately 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. The new assessment will reflect domestic POME spot prices in this important market.
The Indonesia POME domestic assessment will reflect a free fatty acid (FFA) value of a maximum of 50%, a moisture and impurities content of a maximum of 3%, and a total fatty matter (TFM) of a minimum of 95%.
The assessment will reflect a cargo size of 100 to 2,000 mt, loading one to seven days forward from the date of publication on a delivered-at-place (DAP) Dumai, Sumatra Island, basis. It will also consider cargoes delivering to other locations in Sumatra Island, including Belawan, Palembang, Lampung, and Aceh, but may be normalized back to the basis location of Dumai.
Other volumes may also be considered by normalizing back to the stated volume specifications. The assessment will reflect cargo values inclusive of a 12% value-added tax.
The assessment will have the following specifications: More at SP Global
---------
Clean fuel production credit: Regulatory roadblocks ahead
The Sec. 45Z clean fuel production credit is a significant initiative introduced by the Inflation Reduction Act of 2022, P.L. 117–169. This credit aims to incentivize the production of clean transportation fuels, including either sustainable aviation fuel (SAF) or non–SAF transportation fuel, within the United States by offering tax credits to producers that meet specific environmental criteria.
To be eligible for the credit in a specific tax year, taxpayers must produce a qualifying transportation fuel within the United States for sale to an unrelated party for certain specified purposes. A non–SAF transportation fuel must be produced in accordance with certain feedstock requirements, must be suitable for use in highway vehicles or aircraft, and must have a lifecycle greenhouse gas (GHG) emissions rate of no more than 50 kilograms per carbon dioxide equivalent (CO2e) (based on relative global warming potential) per million British thermal units (mmBTU) (Secs. 45Z(b)(1)(A) and (d)). Alternatively, SAF must adhere to specific industry standards, meet a separate set of feedstock requirements, and be sold for use in aircraft.
On Jan. 10, 2025, Treasury and the IRS issued Notice 2025–10, which contains draft forthcoming proposed regulations for the Sec. 45Z clean fuel production credit, and Notice 2025–11, which includes the Sec. 45Z annual emissions rate table. Also in January, the Department of Energy released the 45ZCF–GREET model, with a user manual and other information, to calculate emissions for non–SAF transportation fuel. Overall, the guidance provides helpful information but ultimately neglects several crucial industry issues. Therefore, taxpayers in the clean fuel industry are evaluating how to apply the notices, given their nonbinding and somewhat ineffective nature.
This item explores two key issues among many that are puzzling industry participants: imported used cooking oil (UCO) and the definition of a qualifying sale, particularly for clean fuel producers selling to wholesalers. The lack of clarity in these areas could significantly affect the clean fuel industry’s ability to generate the Sec. 45Z credit.
Imported UCO
The forthcoming proposed regulations do not provide specific guidance on the use of imported UCO as a feedstock eligible for the Sec. 45Z credit, specifically with respect to non–SAF transportation fuel. Notice 2025–10 contemplates concerns regarding the identification and market implications of imported UCO, particularly the risk of mislabeling substances such as virgin palm oil as UCO. Compared to palm oil, genuine UCO has a significantly lower GHG emissions rate, meaning that producing biodiesel from UCO generates considerably fewer carbon emissions than producing it from palm oil. This is primarily because UCO is considered a waste product that would otherwise be discarded, while palm oil production is often linked to large–scale deforestation, leading to high GHG emissions. Therefore, this mislabeling could potentially lead to higher emissions impacts than genuine UCO. Due to these concerns, the notice provides that pathways using imported UCO are currently unavailable in the 45ZCF–GREET model until further guidance is issued. When the current 45ZCF–GREET model does not include certain feedstocks such as imported UCO in its production pathways, the taxpayer must request a provisional emissions rate (PER) to establish an official emissions rate for its product.
This guidance fails to provide a specific PER process for taxpayers to follow, which creates significant uncertainty for industry participants that have relied on imported UCO as a sustainable feedstock, and this lack of a defined process will lead to difficulties in ensuring compliance and claiming the Sec. 45Z credit. To complicate this further, there is not an anticipated date for further guidance under the new administration; therefore, taxpayers that use imported UCO will be left searching for answers in the interim, making it difficult to estimate this incentive’s benefits.
Qualifying sale More at The Tax Adviser
---------
Biodiesel seen as a path to preserve forests and boost family income
The federal government’s Social Biofuel Seal estimates that more than R$30 billion has already been directed to home farming
Keeping the Amazon intact has become a global priority amid mounting climate risks from deforestation in the world’s largest tropical forest. At the same time, improving the living conditions of the region’s population remains a critical challenge. One alternative that demonstrates it is possible to balance both goals is the production of biofuels, particularly biodiesel.
“I recently experienced an economic revolution in my life. Today, I have a well-structured home and a car. I never imagined that one day I would be in the economic situation I am in,” says Luane Alves Penha, a farmer and açaí producer in the city of Mazagão, Amapá. “Our family’s situation improved from the moment we learned to produce while preserving nature,” adds the owner of a 50-hectare (500,000 m²) plot where she cultivates açaí alongside cassava, coconut, pineapple, banana, lemon, pumpkin, and corn.
Ms. Penha, who lives with her husband and their three children, says the turning point came two years ago when she joined a local food cooperative called Bio+Açaí. The cooperative supports 812 families in Amapá and Pará, providing technical assistance and guaranteeing the purchase of all the açaí produced by its members
“Before, we had a lot of uncertainty. We produced a little but were discouraged because we had no one to sell to,” she recalls. “Today, we can see a return on our investment. Our income from açaí was around R$1,200. With the technical assistance we receive, production has increased, and our income from açaí alone has more than doubled—not to mention what we earn from other crops,” says Ms. Penha, noting that she stopped cutting down other tree species on her land to work exclusively with açaí, a once common practice. “I learned that other trees help protect the açaí grove from pests and provide me with extra income.”
The driving force behind Bio+Açaí’s ability to provide technical and financial assistance to Ms. Penha and 811 other families is the Social Biofuel Seal program, administered by the Ministry of Agrarian
Development and Home Farming. Created in 2004, the initiative has gained traction with the increase in the biodiesel blend in diesel fuel and the growing recognition that sustainable development in the Amazon depends on strengthening the bioeconomy.
Valor Agribusiness
---------
Daabon Sustainable Palm Oils: A Trusted and Scalable Alternative To Seed Oils
Seed Oil Free Certification provides transparency and highlights the unique benefits of Daabon’s palm oils for food brands, restaurants, and health-conscious consumers.
BOCA RATON, Fla.--(BUSINESS WIRE)--The Seed Oil Free Alliance, an independent certifying organization advised by a coalition of public health and nutrition experts, announced today that Daabon’s full line of palm fruit and palm kernel oils are Seed Oil Free Certified™, providing brands and restaurants a scalable, functional, and ethical alternative to industrial seed oils. Daabon is the first producer of palm oil, a fruit oil that is heat-stable and low in omega-6, to be awarded the Seed Oil Free Certified Seal. Daabon’s transparent, vertically integrated production model ensures this solution is sustainable, ethical, and ready for scale.
“Highly refined industrial seed oils like soybean, canola, and sunflower are overly processed, unstable when heated, and contribute to an imbalanced omega-6 to omega-3 ratio, a topic of ongoing research for its potential role in inflammation,” said Jonathan Rubin, founder and CEO of the Seed Oil Free Alliance. “Palm oil is often mistaken for a seed oil, but it’s from the fruit of the oil palm. When grown and processed right, it’s one of the most promising fats available today.”
The key to palm oil’s functional advantage lies in its fatty acid profile, which is approximately 50% saturated, 40% monounsaturated, and 10% polyunsaturated fatty acids (PUFA). By contrast, common seed oils are up to 60% PUFA and prone to breaking down when heated. A 2021 study in the journal Foods found that palm olein resisted oxidation better than soybean and sunflower oils when repeatedly heated and produced significantly fewer harmful compounds.
Qua Kiat Seng, a chemical engineer with 50 years of experience in the oil and fats industry, currently Adjunct Senior Lecturer at Monash University Malaysia, agrees that palm oil is the healthier choice for deep frying. “We dove into the chemical changes oils undergo during frying, like oxidation, hydrolysis, and polymerization, and how these affect oil quality and health. It highlights that palm olein’s composition makes it more resistant to breakdown, while highly refined seed oils like soybean, canola, and sunflower are more prone to forming undesirable byproducts.”
Palm oil is the world’s most popular vegetable oil and an amazingly versatile natural product. Unfortunately, in certain parts of the world, palm oil has been linked to deforestation, loss of wild habitats, and social injustice for workers. Daabon is firmly committed to sustainability, providing full traceability to the farm. In addition to Seed Oil Free Certified, the company holds a series of accreditations demonstrating its commitment to environmental, social, and economic issues, including Roundtable on Sustainable Palm Oil (RSPO), Fair Trade USA, Regenerative Organic (Gold Level), and Non-GMO Project.
A list of Daabon’s Seed Oil Free Certified Products can be found at: seedoilfreecertified.com/brand/daabon. Brands and restaurants can purchase Seed Oil Free Certified Daabon Palm Oil and Palm Kernel Oil at daabonusa.com/contact-us/ Business Wire
---------
Medella's blend of red palm oil and coconut oil trending as an antioxidant packed cooking oil
Medella has introduced Red Palm & Coconut Cooking Oil, Malaysia’s first 50/50 blend of natural red palm oil and coconut oil, offering a healthier alternative for everyday cooking. Developed using a chemical-free process that preserves its nutritional value, the oil delivers a rich source of antioxidants and healthy fats, supporting the needs of increasingly health-conscious consumers.
Each 15g serving contains 4.5g of Medium Chain Triglycerides (MCTs) for quick energy and metabolism support, 3.75mg of Vitamin E to promote immune and skin health, and 1.13mg of Provitamin A to maintain good vision. With non-communicable diseases such as diabetes and high cholesterol on the rise, Medella’s launch provides a timely solution for Malaysians looking to make better choices in the kitchen.
The Red Palm & Coconut Cooking Oil blend brings together the wellness benefits of two natural oils, offering a clean, flavorful option that supports a balanced lifestyle.
Trend Themes
1. Antioxidant-rich Ingredients - The fusion of red palm and coconut oils in cooking products highlights the growing consumer interest in antioxidant-rich ingredients for enhanced health benefits.
2. Functional Food Innovations - Medella's new oil blend, with added MCTs and vitamins, reflects a broader trend towards functional foods designed to support metabolic and immune health.
3. Natural Oil Blends - The introduction of chemical-free processing methods in oil production is steering the trend towards natural oil blends that maintain nutritional integrity.
Industry Implications
1. Health-conscious Food Products - As consumers prioritize health in their dietary choices, there is increasing demand in the food industry for products that offer both nutrition and preventative health benefits.
2. Nutraceuticals - Integrating ingredients like MCTs and vitamins into cooking oils underscores a shift in the nutraceutical industry towards versatile products that merge everyday use with health enhancement.
3. Clean Label Foods - The appeal of chemical-free processing in Medella's oil reflects the clean label movement gaining traction across the food industry, driven by consumer desire for transparency and purity. Trend Hunter
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Palm oil news. July 2025. CSPO Watch