Palm oil news August 2025
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August 30, 2025
Indonesia U.S. reciprocal tariff deal faces delay as local commodities seek exemptions
The Ministry of Trade has signaled that the signing of a reciprocal tariff agreement between Indonesia and the United States will be delayed beyond the earlier target date of next week, Monday, September 1, 2025, with one key issue under negotiation is the exemption of import duties for certain Indonesian local commodities entering the U.S. market.
Director General of International Trade Negotiations at the Trade Ministry, Djatmiko Bris Witjaksono, said that the talks are still ongoing. He compared the process with the extension of reciprocal tariffs on China when asked about the timeline for Indonesia’s agreement.
“All matters in the reciprocal tariff negotiations between Indonesia and the United States are difficult. Just wait until it’s done. What’s important is that we are pushing for some of our local commodities to be exempted from reciprocal duties,” Djatmiko said on Thursday, August 28, 2025.
U.S. President Donald J. Trump recently extended reciprocal tariffs on China at 145 percent until November 10, 2025. This means Chinese goods will continue to face 30 percent import duties in the U.S. Djatmiko confirmed that Indonesia has submitted a list of local commodities to be exempted from tariffs, arguing that these are essential exports for Indonesia and also meet strong demand in the US.
“These commodities are needed by them, and we produce them. So excluding them from reciprocal tariffs will not harm anyone in the United States,” he added.
According to data from Statistics Indonesia (BPS), 180 Indonesian commodities were exported to the U.S. between January and April 2025 with a total value of US$9.38 billion (Rp154.9 trillion). Twenty of these commodities contributed more than 70 percent of the total export value. The top exports include:
● Garments from textiles: US$1.27 billion;
● Palm oil: US$574.04 million;
● Electrical equipment: US$561.36 million;
● Sports footwear: US$524.84 million;
● Semiconductors and electronic components: US$432.77 million;
● Organic chemicals from agriculture: US$362.58 million;
● Everyday footwear: US$312.83 million;
● Wooden furniture: US$279.76 million;
● Cocoa butter, fats, and oils: US$258.72 million;
● Leather goods: US$252.46 million;
● Frozen shrimp: US$237.12 million;
● Tires: US$223.90 million;
● Crumb rubber: US$221.18 million;
● Communication equipment: US$211.10 million;
● Knitted garments: US$205.85 million;
● Household appliances: US$176.47 million;
● General machinery: US$158.02 million;
● Processed or preserved aquatic products: US$157.64 million;
● Other chemical products: US$148.96 million;
● Plywood: US$141.25 million.
Head of the National Economic Council, Luhut Binsar Pandjaitan, has announced plans to meet with U.S. Trade Representative Howard Lutnick in early September. Luhut said he had already received approval from President Prabowo Subianto to push for tariff exemptions on certain key commodities, including crude palm oil (CPO).
“I have asked President Prabowo’s permission to meet Trade Minister Lutnick to negotiate. He is also a good friend of mine. We will meet on September 8–9, 2025,” Luhut said on August 13, 2025.
The Trump administration has set a 19 percent tariff on Indonesian goods. The Indonesian government hopes that ongoing negotiations will secure exemptions for several major export commodities to protect the country’s trade competitiveness in the US market. Indonesia Business Post
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Indonesia confident EU will comply with WTO ruling on biodiesel dispute
Indonesia’s Ministry of Trade is confident that the European Union (EU) will comply with a World Trade Organization (WTO) ruling that favored Indonesia in its dispute over countervailing duties on biodiesel exports, reports Indonesia Business Post.
The case, registered as DS618, centered on the EU’s Renewable Energy Directive II (RED II), which Indonesia argued discriminated against crude palm oil. The WTO panel sided with Indonesia, and the EU has agreed to amend RED II by February 24, 2026.
“We expect the European Union to respond sensibly and fairly to this ruling. We are optimistic the EU will implement the WTO decision on biodiesel,” said Djatmiko Bris Witjaksono, Director General of International Trade Negotiations, on Thursday, August 28, 2025.
The WTO found that the EU’s reasoning for imposing duties ranging from 8 to 18 percent on Indonesian biodiesel was not supported by sufficient evidence and recommended that the measures be adjusted. Under the ruling, the EU has fifteen months to comply, meaning the duties must be removed by November 22, 2026.
Djatmiko described Indonesia’s win as a signal to its trading partners to act carefully when drafting trade measures related to Indonesian commodities, stressing that all WTO members are obliged to ensure their policies are consistent with international trade rules.
Trade Minister Budi Santoso echoed this view, calling the ruling proof of Indonesia’s consistent compliance with global trade regulations, in contrast to the EU’s accusations. He said the WTO panel dismissed the EU’s claim that Indonesia pushed palm oil producers to sell raw materials at artificially low prices for the benefit of biodiesel companies. It also concluded that Indonesia’s export taxes and levies on palm oil could not be treated as subsidies, and that the European Commission had failed to show any real harm to European biodiesel producers, overlooking other factors that affect the market.
“With these findings, the WTO made it clear that the EU’s countervailing duties on Indonesian biodiesel were not based on solid evidence,” Budi said. Bioenergy Times
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Indonesia U.S. reciprocal tariff deal faces delay as local commodities seek exemptions
The Ministry of Trade has signaled that the signing of a reciprocal tariff agreement between Indonesia and the United States will be delayed beyond the earlier target date of next week, Monday, September 1, 2025, with one key issue under negotiation is the exemption of import duties for certain Indonesian local commodities entering the U.S. market.
Director General of International Trade Negotiations at the Trade Ministry, Djatmiko Bris Witjaksono, said that the talks are still ongoing. He compared the process with the extension of reciprocal tariffs on China when asked about the timeline for Indonesia’s agreement.
“All matters in the reciprocal tariff negotiations between Indonesia and the United States are difficult. Just wait until it’s done. What’s important is that we are pushing for some of our local commodities to be exempted from reciprocal duties,” Djatmiko said on Thursday, August 28, 2025.
U.S. President Donald J. Trump recently extended reciprocal tariffs on China at 145 percent until November 10, 2025. This means Chinese goods will continue to face 30 percent import duties in the U.S. Djatmiko confirmed that Indonesia has submitted a list of local commodities to be exempted from tariffs, arguing that these are essential exports for Indonesia and also meet strong demand in the US.
“These commodities are needed by them, and we produce them. So excluding them from reciprocal tariffs will not harm anyone in the United States,” he added.
According to data from Statistics Indonesia (BPS), 180 Indonesian commodities were exported to the U.S. between January and April 2025 with a total value of US$9.38 billion (Rp154.9 trillion). Twenty of these commodities contributed more than 70 percent of the total export value. The top exports include:
● Garments from textiles: US$1.27 billion;
● Palm oil: US$574.04 million;
● Electrical equipment: US$561.36 million;
● Sports footwear: US$524.84 million;
● Semiconductors and electronic components: US$432.77 million;
● Organic chemicals from agriculture: US$362.58 million;
● Everyday footwear: US$312.83 million;
● Wooden furniture: US$279.76 million;
● Cocoa butter, fats, and oils: US$258.72 million;
● Leather goods: US$252.46 million;
● Frozen shrimp: US$237.12 million;
● Tires: US$223.90 million;
● Crumb rubber: US$221.18 million;
● Communication equipment: US$211.10 million;
● Knitted garments: US$205.85 million;
● Household appliances: US$176.47 million;
● General machinery: US$158.02 million;
● Processed or preserved aquatic products: US$157.64 million;
● Other chemical products: US$148.96 million;
● Plywood: US$141.25 million.
Head of the National Economic Council, Luhut Binsar Pandjaitan, has announced plans to meet with U.S. Trade Representative Howard Lutnick in early September. Luhut said he had already received approval from President Prabowo Subianto to push for tariff exemptions on certain key commodities, including crude palm oil (CPO).
“I have asked President Prabowo’s permission to meet Trade Minister Lutnick to negotiate. He is also a good friend of mine. We will meet on September 8–9, 2025,” Luhut said on August 13, 2025.
The Trump administration has set a 19 percent tariff on Indonesian goods. The Indonesian government hopes that ongoing negotiations will secure exemptions for several major export commodities to protect the country’s trade competitiveness in the US market. Indonesia Business Post
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Indonesia confident EU will comply with WTO ruling on biodiesel dispute
Indonesia’s Ministry of Trade is confident that the European Union (EU) will comply with a World Trade Organization (WTO) ruling that favored Indonesia in its dispute over countervailing duties on biodiesel exports, reports Indonesia Business Post.
The case, registered as DS618, centered on the EU’s Renewable Energy Directive II (RED II), which Indonesia argued discriminated against crude palm oil. The WTO panel sided with Indonesia, and the EU has agreed to amend RED II by February 24, 2026.
“We expect the European Union to respond sensibly and fairly to this ruling. We are optimistic the EU will implement the WTO decision on biodiesel,” said Djatmiko Bris Witjaksono, Director General of International Trade Negotiations, on Thursday, August 28, 2025.
The WTO found that the EU’s reasoning for imposing duties ranging from 8 to 18 percent on Indonesian biodiesel was not supported by sufficient evidence and recommended that the measures be adjusted. Under the ruling, the EU has fifteen months to comply, meaning the duties must be removed by November 22, 2026.
Djatmiko described Indonesia’s win as a signal to its trading partners to act carefully when drafting trade measures related to Indonesian commodities, stressing that all WTO members are obliged to ensure their policies are consistent with international trade rules.
Trade Minister Budi Santoso echoed this view, calling the ruling proof of Indonesia’s consistent compliance with global trade regulations, in contrast to the EU’s accusations. He said the WTO panel dismissed the EU’s claim that Indonesia pushed palm oil producers to sell raw materials at artificially low prices for the benefit of biodiesel companies. It also concluded that Indonesia’s export taxes and levies on palm oil could not be treated as subsidies, and that the European Commission had failed to show any real harm to European biodiesel producers, overlooking other factors that affect the market.
“With these findings, the WTO made it clear that the EU’s countervailing duties on Indonesian biodiesel were not based on solid evidence,” Budi said. Bioenergy Times
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August 29, 2025
Indonesia Braces for Possible EU Appeal on WTO Biodiesel Ruling
Jakarta. Indonesia is bracing for the possibility of the European Union lodging an appeal against a recent World Trade Organization (WTO) ruling related to the bloc's biodiesel import curbs.
A WTO panel recently backed Indonesia on several key claims in its lawsuit against the EU’s countervailing duties on biodiesel. The group’s investigation alleged that Indonesia had been subsidizing its biodiesel exports, possibly putting the EU’s producers in jeopardy. As a result, Indonesia’s EU-bound biodiesel exports have been subject to countervailing duties of between 8 and 18 percent since late 2019.
About three years later, Southeast Asia’s largest economy brought the dispute to the WTO, accusing the duties of violating international trade rules. A WTO panel ruled in favor of some of Indonesia’s claims.
The ball is now in the EU’s court on whether they would accept the ruling by lifting the anti-subsidy duties or file an appeal. The EU has time until October 22 to make a decision.
“We can’t stop the EU from appealing the panel ruling because they have the right to do so,” Djatmiko Bris Witjaksono, a senior official at the Trade Ministry, told a press conference on Thursday.
If so, Europe has two options: whether to challenge the ruling at the WTO’s dysfunctional appellate body or via an ad hoc mechanism.
The first one involves a panel of judges that is in charge of hearing the appeals. This panel, however, has been in limbo for years after the US blocked the appointment of new judges. Indonesia has picked this route before in an EU lawsuit against its nickel ore export restrictions, but lost the case. The nickel appeal to this day remains in the queue.
Under the second option, the EU may propose setting up an alternative mechanism.
“But an ad hoc appellate body requires Indonesia’s approval. We also have to decide on the rules,” Djatmiko said. Jakarta Globe
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Empowering independent palm oil smallholders in Malaysia
AS THE world’s second-largest producer of palm oil, Malaysia has over 275,000 independent smallholder farmers that contribute toward the industry.
However, unlike organised smallholders, these independent farmers manage smaller plots of land and have limited access to knowledge, technology and guidance.
Globally, smallholders contribute over 40% of the world’s palm oil supply, yet they often face exclusion from formal supply chains due to barriers in certification, traceability, and access to knowledge.
In Malaysia, independent smallholder (ISH) farmers account for 17% of palm oil producers, and their inclusion is critical not only to national economic resilience but also for global climate, food security, and ESG goals.
These issues usually involve grassroots initiatives as well as advocacy and policy leadership, and collaboration among multiple stakeholders.
To address this gap, the Center for Sustainable Smallowners (CSS) was created as a collaboration between Asia School of Business (ASB) and Procter & Gamble (P&G) to deliver the P&G Smallholder Program for ISHs in the oil palm industry.
The P&G Smallholder Program was further catalysed when Temasek Foundation partnered with the ASB to support the programme.
It emphasises on empowering independent oil palm smallholders in Malaysia through sustainable farming practices, certification and community development.
By focusing on ISHs at the core of its sustainability efforts, the programme has gradually established an inclusive ecosystem that yields measurable outcomes aligned with global ESG priorities.
Those include fostering social equity and community resilience (Social), encouraging environmentally responsible practices (Environmental), and promoting transparency, traceability, and good governance (Governance) within the smallholder ecosystem.
It also advances eight of the United Nation’s Sustainable Development Goals (SDGs, 2, 5, 8, 10, 12, 13, 15 and 17) through a structured approach, that is the CSS Sustainability Journey, that aligns with the RSPO (Roundtable 2 for Sustainable Palm Oil) Impact Areas, whose initiatives focus on a triple-bottom-line approach of People, Planet and Prosperity.
The programme has helped create a positive impact on a community of ISH farmers in Johor. Within its five-year journey, it has achieved multiple targets, with 892 ISHs being certified and 252 learning farms established.
It has also published several research manuscripts, posters and articles. Furthermore, diffusion initiative is strengthened with new collaborations and modules.
Transforming programme outcomes into impact
Recently, the centre published its 2025 Impact Report structured around five core impact areas: community empowerment, livelihood improvement, environmental sustainability, sourcing responsibly, and thought leadership and advocacy.
It demonstrated how the CSS Sustainability Journey has transformed policy ambitions into measurable grassroots outcomes. Among the notable achievements include:
> Livelihood gains: 892 ISHs have achieved RSPO-certification, with some achieving an average yield improvement of 20% to 25% over periods of two to three years, and up to 35% from three to four years. Collectively, 407 certified farmers have received earnings amounting to US$68,175 in sustainability-linked premiums from 2021-2024. The StarMY
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Amazing Benefits of Palm Kernel Oil, Meal and Shell
Local palm kernel oil, also known as "adwengo" in some Ghanaian languages, is versatile oil with numerous benefits, particularly for skin and hair health. It's known for its moisturizing properties, ability to promote hair growth, and potential anti-aging effects.
Palm kernel has various uses, including in food, cosmetics, and construction. Palm kernel oil (PKO) is cooking oil with health benefits, while palm kernel meal (PKM) can be used as animal feed. Palm kernel shells (PKS) are utilized in construction, energy production, and water purification.
Palm Kernel Oil (PKO):
Culinary Uses, PKO is cooking oil with a high smoke point, making it suitable for frying and other cooking methods.
PKO contains medium-chain fatty acids and vitamin K, which can be beneficial for skin health, bone health, and blood clotting. It is also a source of unsaturated fats. Modern Ghana
Indonesia Braces for Possible EU Appeal on WTO Biodiesel Ruling
Jakarta. Indonesia is bracing for the possibility of the European Union lodging an appeal against a recent World Trade Organization (WTO) ruling related to the bloc's biodiesel import curbs.
A WTO panel recently backed Indonesia on several key claims in its lawsuit against the EU’s countervailing duties on biodiesel. The group’s investigation alleged that Indonesia had been subsidizing its biodiesel exports, possibly putting the EU’s producers in jeopardy. As a result, Indonesia’s EU-bound biodiesel exports have been subject to countervailing duties of between 8 and 18 percent since late 2019.
About three years later, Southeast Asia’s largest economy brought the dispute to the WTO, accusing the duties of violating international trade rules. A WTO panel ruled in favor of some of Indonesia’s claims.
The ball is now in the EU’s court on whether they would accept the ruling by lifting the anti-subsidy duties or file an appeal. The EU has time until October 22 to make a decision.
“We can’t stop the EU from appealing the panel ruling because they have the right to do so,” Djatmiko Bris Witjaksono, a senior official at the Trade Ministry, told a press conference on Thursday.
If so, Europe has two options: whether to challenge the ruling at the WTO’s dysfunctional appellate body or via an ad hoc mechanism.
The first one involves a panel of judges that is in charge of hearing the appeals. This panel, however, has been in limbo for years after the US blocked the appointment of new judges. Indonesia has picked this route before in an EU lawsuit against its nickel ore export restrictions, but lost the case. The nickel appeal to this day remains in the queue.
Under the second option, the EU may propose setting up an alternative mechanism.
“But an ad hoc appellate body requires Indonesia’s approval. We also have to decide on the rules,” Djatmiko said. Jakarta Globe
---------
Empowering independent palm oil smallholders in Malaysia
AS THE world’s second-largest producer of palm oil, Malaysia has over 275,000 independent smallholder farmers that contribute toward the industry.
However, unlike organised smallholders, these independent farmers manage smaller plots of land and have limited access to knowledge, technology and guidance.
Globally, smallholders contribute over 40% of the world’s palm oil supply, yet they often face exclusion from formal supply chains due to barriers in certification, traceability, and access to knowledge.
In Malaysia, independent smallholder (ISH) farmers account for 17% of palm oil producers, and their inclusion is critical not only to national economic resilience but also for global climate, food security, and ESG goals.
These issues usually involve grassroots initiatives as well as advocacy and policy leadership, and collaboration among multiple stakeholders.
To address this gap, the Center for Sustainable Smallowners (CSS) was created as a collaboration between Asia School of Business (ASB) and Procter & Gamble (P&G) to deliver the P&G Smallholder Program for ISHs in the oil palm industry.
The P&G Smallholder Program was further catalysed when Temasek Foundation partnered with the ASB to support the programme.
It emphasises on empowering independent oil palm smallholders in Malaysia through sustainable farming practices, certification and community development.
By focusing on ISHs at the core of its sustainability efforts, the programme has gradually established an inclusive ecosystem that yields measurable outcomes aligned with global ESG priorities.
Those include fostering social equity and community resilience (Social), encouraging environmentally responsible practices (Environmental), and promoting transparency, traceability, and good governance (Governance) within the smallholder ecosystem.
It also advances eight of the United Nation’s Sustainable Development Goals (SDGs, 2, 5, 8, 10, 12, 13, 15 and 17) through a structured approach, that is the CSS Sustainability Journey, that aligns with the RSPO (Roundtable 2 for Sustainable Palm Oil) Impact Areas, whose initiatives focus on a triple-bottom-line approach of People, Planet and Prosperity.
The programme has helped create a positive impact on a community of ISH farmers in Johor. Within its five-year journey, it has achieved multiple targets, with 892 ISHs being certified and 252 learning farms established.
It has also published several research manuscripts, posters and articles. Furthermore, diffusion initiative is strengthened with new collaborations and modules.
Transforming programme outcomes into impact
Recently, the centre published its 2025 Impact Report structured around five core impact areas: community empowerment, livelihood improvement, environmental sustainability, sourcing responsibly, and thought leadership and advocacy.
It demonstrated how the CSS Sustainability Journey has transformed policy ambitions into measurable grassroots outcomes. Among the notable achievements include:
> Livelihood gains: 892 ISHs have achieved RSPO-certification, with some achieving an average yield improvement of 20% to 25% over periods of two to three years, and up to 35% from three to four years. Collectively, 407 certified farmers have received earnings amounting to US$68,175 in sustainability-linked premiums from 2021-2024. The StarMY
---------
Amazing Benefits of Palm Kernel Oil, Meal and Shell
Local palm kernel oil, also known as "adwengo" in some Ghanaian languages, is versatile oil with numerous benefits, particularly for skin and hair health. It's known for its moisturizing properties, ability to promote hair growth, and potential anti-aging effects.
Palm kernel has various uses, including in food, cosmetics, and construction. Palm kernel oil (PKO) is cooking oil with health benefits, while palm kernel meal (PKM) can be used as animal feed. Palm kernel shells (PKS) are utilized in construction, energy production, and water purification.
Palm Kernel Oil (PKO):
Culinary Uses, PKO is cooking oil with a high smoke point, making it suitable for frying and other cooking methods.
PKO contains medium-chain fatty acids and vitamin K, which can be beneficial for skin health, bone health, and blood clotting. It is also a source of unsaturated fats. Modern Ghana
August 26, 2025
Indonesia presses EU to scrap biodiesel duties after WTO ruling
Jakarta: Indonesia has urged the European Union (EU) to revoke countervailing duties on biodiesel imports after the World Trade Organization (WTO) ruled in its favor on several key points in a trade dispute, reports The Reuters.
Trade Minister Budi Santoso said on Monday the EU’s duties—imposed since 2019 at rates between 8% and 18%—are inconsistent with WTO rules. “We urge the EU to immediately revoke these countervailing import duties that are not WTO-compliant,” he said in a statement.
The EU introduced the tariffs on grounds that Indonesian biodiesel producers benefited from subsidies such as grants, tax breaks, and cheap raw materials. But Jakarta argued in its 2023 complaint that these measures were not subsidies under WTO definitions. The WTO panel agreed, ruling that Indonesia’s palm oil export duty and levy could not be classified as subsidies. It also said the EU had failed to prove that imports from Indonesia threatened “material injury” to European biodiesel producers.
Indonesia, the world’s largest palm oil exporter, shipped 27,000 kilolitres of palm-based biodiesel to the EU in 2024—a steep fall from 1.32 million kl in 2019, just before the duties were imposed.
The case adds to longstanding trade tensions between Brussels and Jakarta, ranging from biodiesel tariffs to the EU’s anti-deforestation regulation, which Indonesia fears will hurt its palm oil shipments.
Industry players remain cautious despite the ruling. “We must remain vigilant and ready for any movement by the EU after this ruling,” said Catra de Thouars of the Indonesia Biofuel Producers Association, noting that Brussels has previously resisted adverse WTO findings.
The WTO’s decision can be appealed, but the global trade court has been paralyzed since 2019, when the U.S. blocked new judicial appointments.
Despite the uncertainty, Jakarta hopes an upcoming EU–Indonesia free trade pact—politically agreed in July—will improve market access for palm oil and related products. Bioenergy Times
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WTO ruling against EU biodiesel tariffs shows pattern of discrimination against Indonesian palm-GAPKI
The Indonesian Palm Oil Association (GAPKI) welcomes the WTO ruling against the EU, which found that the EU's duties on Indonesian biodiesel to be illegal
The latest WTO ruling shows a clear pattern by the EU in blocking access to their market for Indonesian palm oil. It has consistently discriminated against Indonesian palm for more than a decade.”— GAPKI Chairman Eddy MartonoJAKARTA , INDONESIA, August 25, 2025 /EINPresswire.com/ -- Following the WTO’s ruling against the European Union’s tariffs on Indonesian palm oil, Indonesian Palm Oil Association (GAPKI) chairman Eddy Martono issued the following statement:
“GAPKI welcomes the WTO Dispute Panel's clear ruling against the European Union, which found that the European Union's countervailing duties on Indonesian biodiesel were simply wrong.
“Unfortunately, the latest WTO ruling shows a clear pattern by the European Union in blocking access to the European market for Indonesian palm oil and palm products. It has consistently discriminated illegally against Indonesian palm oil for more than a decade.
“The WTO ruling showed that the EU:
- Completely mischaracterized Indonesia's support scheme for farmers and failed to prove any trade-distorting benefit to Indonesian biodiesel producers.
- Could not demonstrate any injury to European industry – only a threat of injury;
- Violated basic WTO transparency and due process obligations.
“GAPKI calls on the European Commission to quickly remedy the situation and re-open the EU market to Indonesian palm-based biofuels.
“GAPKI also calls on the EU to ensure that its future measures impacting palm oil – particularly the forthcoming EU Deforestation Regulation (EUDR) – do not discriminate against Indonesian palm oil. We also call on the Commission to ensure Indonesia’s 2.7 million palm oil smallholders are accommodated under the new regulations, whether through certification or clear exemption.”
The Indonesia-EU free trade agreement is likely to be signed soon, and the EU has promised zero tariffs for Indonesian palm oil, and special treatment for Indonesian products. We hope that the EU respects the spirit of that agreement and the future of bilateral relations between our countries.”
BRIEF ANALYSIS OF THE WTO DISPUTE
The WTO Dispute Panel made a clear ruling in DS618, which found that the European Union's countervailing duties on Indonesian palm biodiesel were wrong on multiple grounds.
First, the EU completely misunderstood how Indonesia's biodiesel support system works. The EU claimed that Indonesia's BPDP (the country’s Oil Palm Plantation Fund) operated as a government subsidy that gave unfair advantages to our biodiesel producers. However, the WTO Panel found this was incorrect. The OPPF is not a direct government payment -- it's a system where the palm oil industry supports itself through export levies that are redistributed within the sector. The EU couldn't prove that Indonesian biodiesel producers actually received any unfair advantage compared to normal market conditions.
Second, the EU failed to show that Indonesian biodiesel was harming European producers. The EU claimed there was a "threat of injury" to their industry, but the Panel found this was based on assumptions rather than empirical evidence. The EU made predictions about future Indonesian exports without clear and empiricial data and was unable to explain how Indonesian biodiesel would impact EU prices. Without proving real harm, the EU had no valid reason to impose these duties.
Third, the EU violated basic fairness and transparency rules during their investigation. They withheld important information from Indonesian exporters, making it impossible for our companies to properly defend themselves. The documents they did share were often too vague to be useful. They also refused to let Indonesian parties suggest alternative ways to assess the situation, keeping crucial data hidden until it was too late in the process.
In short, the WTO found that the EU's duties against Indonesian biodiesel had no proper legal basis and must be removed to comply with international trade rules.
This ruling is part of a clear pattern of discrimination by the EU against Indonesia's palm oil industry. The WTO has ruled against the EU multiple times:
• DS480 (EU – Anti-Dumping on Biodiesel from Indonesia): The WTO found the EU's anti-dumping duties on Indonesian biodiesel violated trade rules, particularly in how they calculated dumping margins.
• DS593 (EU – Palm Oil, complaint by Indonesia): The WTO Panel ruled that the EU's Renewable Energy Directive II (RED II) unfairly discriminated against palm oil biofuels through biased ILUC criteria, flawed conformity-assessment procedures, and discriminatory treatment, as well as France’s TIRIB tax.
• DS442 (EU – Anti-Dumping on Fatty Alcohols from Indonesia): The WTO found the EU acted inconsistently with anti-dumping rules in its treatment of palm-oil–derived fatty alcohols.
These repeated WTO ruling against the EU show that Brussels keeps trying different ways to block Indonesian palm oil from their market—whether through countervailing duties, anti-dumping measures, or environmental regulations. Each time, the WTO finds these measures are unjustified and illegal.
While this ruling should reopen the EU market for Indonesian palm oil-based biofuel, we remain concerned about whether the EU will actually follow through. The EU has been very slow to comply with previous WTO rulings, especially regarding RED II. We call on the EU to respect international trade law and immediately implement all WTO decisions.
We thank the Indonesian government, especially the Coordinating Ministry for Economic Affairs, for consistently defending our palm oil industry's rights in international forums. Indonesia will continue to fight any unfair trade measures that target our sustainable palm oil sector.
Indonesia is committed to sustainable palm oil production and deserves fair treatment in global markets under WTO rules. The EU must stop protecting its own industries at the expense of developing countries like Indonesia.
Media Relations
Author Contact
Media Relations
Indonesian Palm Oil Association (GAPKI)
+62 21 57943871
[email protected]
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Indonesia says US agrees tariff exemption for its palm oil, cocoa and rubber
Summary
JAKARTA, Aug 26 (Reuters) - The United States has agreed in principle to exempt Indonesian exports of cocoa, palm oil and rubber from the 19% tariff imposed by President Donald Trump since August 7, Indonesia's top trade negotiator said on Tuesday.
The exemption will take effect once both sides reach a final agreement, but no timeline has been set because the U.S. is busy in tariff talks with other countries, Airlangga Hartarto, who is also the chief economic minister, told Reuters.
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Malaysia’s palm oil market set to stay strong amid high prices and festive demand
Kuala Lumpur: Malaysia’s palm oil industry is expected to remain bullish in the near term, backed by firmer exports and manageable inventories, according to Fastmarkets Palm Oil Analytics senior analyst Sathia Varqa, reports The Malaysian Reserve.
He said crude palm oil (CPO) prices are likely to stay elevated, ranging between RM4,200 and RM4,500 per tonne, supported by global trade disruptions and uncertainty over U.S. biofuel policy.
“Import tariffs and shifting trade barriers in major economies have tightened edible oil supplies, raising risk premiums and spurring speculative buying, which has reinforced palm oil’s price momentum,” Sathia told Bernama.
He pointed to China’s anti-dumping duties on Canadian canola as an example. “The move drove rapeseed oil futures higher in China, and the rally quickly spilled into palm oil as traders adjusted across the vegetable oil market,” he said.
In the U.S., changes to biofuel policy under the 45Z programme have strengthened soybean oil prices by favouring domestic feedstock. “Since soybean oil is the main feedstock for biodiesel, the price rally spilled over into palm oil, lifting CPO prices as well,” Sathia explained.
The analyst said Malaysia’s export outlook is bright, with stronger shipments to India ahead of upcoming festivals. “Seasonal restocking will provide solid support for exports in the coming months,” he said.
On stocks, he noted that inventories slightly above two million tonnes reflect short-term supply-demand trends rather than oversupply. “Production growth is stagnant as planted areas remain unchanged at five million hectares since 2012. We expect production to peak soon before easing in the fourth quarter of 2025,” he added.
According to Malaysian Palm Oil Board (MPOB) data, national inventories rose for a fifth straight month in July, reaching 2.11 million tonnes—the highest in nearly two years—up 4% from June. Bioenergy Times
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UC Santa Cruz study on UCOs A Pathway to Scale up Production in Egypt
Doaa Ashraf
In a world still heavily reliant on diesel, across transportation, agriculture, shipping, and power generation, the need for cleaner, more sustainable alternatives is urgent. Fossil fuels not only accelerate climate change, but they also lock developing economies into expensive, finite energy systems.
This has prompted interest in biodiesel, a carbon-neutral alternative made from biological sources like plant oils or used cooking oil (UCO). It burns cleaner, is biodegradable, and can be produced locally, offering both climate sustainability and economic resilience.
In their study titled “Borate Pathway to FAMEs at Near-Ambient Conditions from Used Oil”, Kevin C. Lofgren, Scott R. J. Oliver and other professors from University of California, Santa Cruz introduced a new method to turn used cooking oil into fatty acid methyl esters (FAMEs), the chemical basis of biodiesel.
In general, Biodiesel production is dependent on using natural sources, including vegetable oils (like soybean, canola, and palm oil), animal fats, yellow grease, and used cooking oils. The natural source gets mixed with alcohol (methanol) and a catalyst. However, some catalysts used today produce byproducts that take more time to get rid of.
Also, some of the current methods for producing biodiesel results in soap as a byproduct, which makes purifying the fuel difficult and results in less actual product. Other approaches rely on palm oil, which require clearing trees in rainforests to make room for monoculture palm tree plantations. These methods are also energy intensive, requiring extremely high temperatures and pressures.
The objective of the study is to develop a mild, low-energy, and scalable method using a unique chemical which avoided the complexities of traditional methods of producing biodiesel.
“Making energy takes a lot of energy,” said co-author Scott Oliver, professor of chemistry and biochemistry in a press release of the university. “Our method uses waste oil and mild heating, compared to the common ways of producing diesel in petroleum refineries that are both energy consuming and pollution causing.”
Instead of using harsh chemicals like sodium hydroxide (NaOH), the researchers used a boron-based compound called sodium tetramethoxyborate (or NaB(OMe)₄). This chemical helps kickstart the reaction that turns oil into fuel, just like regular biodiesel methods, but it does so easily and environmentally friendly.
The professors obtained used cooking oil from a major fast food restaurant and mixed them with methanol, and this boron-based chemical in a basic container (like a glass flask). The components reacted together at a temperature around 40°C and in one hour the used oil was transferred to biodiesel.
The main advantage of this process is that it did not require extensive purification as no soap was formed from the chemicals’ reaction together. Instead, the byproducts, mainly a boron–glycerol mix, settled neatly at the bottom, leaving a clean layer of biodiesel ready to use.
To separate them apart, the researchers washed the biodiesel with water in order to extract remaining boron-containing residues. While, the solid boron-rich byproduct was collected to be reused in the process by adding it to methanol, making the whole process recyclable.
“This new method is special because it is simple and affordable. It has the bonus of being able to regenerate the starting material,” Lofgren said. “It’s already low-cost enough to make it competitive. But if you can buy the most expensive ingredient once and then regenerate it, it would be more cost efficient in the long run.”
This discovery has the potential to make the alternative fuel source much more appealing to the massive industrial sectors that are the backbone of the nation’s economy.
“Everybody needs energy—every farm, food production plant, and transportation vehicle depend on it,” Oliver said. “This could really impact people. This process can be done at just above room temperature and it is reusable. You do not need to have a refinery; you can potentially use this method on a farm.”
While the method developed at UC Santa Cruz is considered like lab-scale innovation, it speaks directly to real-world challenges already being tackled in Egypt. Companies like Tagaddod and Biodiesel Misr are leading the path in biodiesel production via collecting used oil from homes, restaurants, and factories.
However, new advancements could expand the adoption of biodiesel and help reduce reliance on fossil fuels in a carbon neutral and viable way. Egypt Oil & Gas Group
Indonesia presses EU to scrap biodiesel duties after WTO ruling
Jakarta: Indonesia has urged the European Union (EU) to revoke countervailing duties on biodiesel imports after the World Trade Organization (WTO) ruled in its favor on several key points in a trade dispute, reports The Reuters.
Trade Minister Budi Santoso said on Monday the EU’s duties—imposed since 2019 at rates between 8% and 18%—are inconsistent with WTO rules. “We urge the EU to immediately revoke these countervailing import duties that are not WTO-compliant,” he said in a statement.
The EU introduced the tariffs on grounds that Indonesian biodiesel producers benefited from subsidies such as grants, tax breaks, and cheap raw materials. But Jakarta argued in its 2023 complaint that these measures were not subsidies under WTO definitions. The WTO panel agreed, ruling that Indonesia’s palm oil export duty and levy could not be classified as subsidies. It also said the EU had failed to prove that imports from Indonesia threatened “material injury” to European biodiesel producers.
Indonesia, the world’s largest palm oil exporter, shipped 27,000 kilolitres of palm-based biodiesel to the EU in 2024—a steep fall from 1.32 million kl in 2019, just before the duties were imposed.
The case adds to longstanding trade tensions between Brussels and Jakarta, ranging from biodiesel tariffs to the EU’s anti-deforestation regulation, which Indonesia fears will hurt its palm oil shipments.
Industry players remain cautious despite the ruling. “We must remain vigilant and ready for any movement by the EU after this ruling,” said Catra de Thouars of the Indonesia Biofuel Producers Association, noting that Brussels has previously resisted adverse WTO findings.
The WTO’s decision can be appealed, but the global trade court has been paralyzed since 2019, when the U.S. blocked new judicial appointments.
Despite the uncertainty, Jakarta hopes an upcoming EU–Indonesia free trade pact—politically agreed in July—will improve market access for palm oil and related products. Bioenergy Times
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WTO ruling against EU biodiesel tariffs shows pattern of discrimination against Indonesian palm-GAPKI
The Indonesian Palm Oil Association (GAPKI) welcomes the WTO ruling against the EU, which found that the EU's duties on Indonesian biodiesel to be illegal
The latest WTO ruling shows a clear pattern by the EU in blocking access to their market for Indonesian palm oil. It has consistently discriminated against Indonesian palm for more than a decade.”— GAPKI Chairman Eddy MartonoJAKARTA , INDONESIA, August 25, 2025 /EINPresswire.com/ -- Following the WTO’s ruling against the European Union’s tariffs on Indonesian palm oil, Indonesian Palm Oil Association (GAPKI) chairman Eddy Martono issued the following statement:
“GAPKI welcomes the WTO Dispute Panel's clear ruling against the European Union, which found that the European Union's countervailing duties on Indonesian biodiesel were simply wrong.
“Unfortunately, the latest WTO ruling shows a clear pattern by the European Union in blocking access to the European market for Indonesian palm oil and palm products. It has consistently discriminated illegally against Indonesian palm oil for more than a decade.
“The WTO ruling showed that the EU:
- Completely mischaracterized Indonesia's support scheme for farmers and failed to prove any trade-distorting benefit to Indonesian biodiesel producers.
- Could not demonstrate any injury to European industry – only a threat of injury;
- Violated basic WTO transparency and due process obligations.
“GAPKI calls on the European Commission to quickly remedy the situation and re-open the EU market to Indonesian palm-based biofuels.
“GAPKI also calls on the EU to ensure that its future measures impacting palm oil – particularly the forthcoming EU Deforestation Regulation (EUDR) – do not discriminate against Indonesian palm oil. We also call on the Commission to ensure Indonesia’s 2.7 million palm oil smallholders are accommodated under the new regulations, whether through certification or clear exemption.”
The Indonesia-EU free trade agreement is likely to be signed soon, and the EU has promised zero tariffs for Indonesian palm oil, and special treatment for Indonesian products. We hope that the EU respects the spirit of that agreement and the future of bilateral relations between our countries.”
BRIEF ANALYSIS OF THE WTO DISPUTE
The WTO Dispute Panel made a clear ruling in DS618, which found that the European Union's countervailing duties on Indonesian palm biodiesel were wrong on multiple grounds.
First, the EU completely misunderstood how Indonesia's biodiesel support system works. The EU claimed that Indonesia's BPDP (the country’s Oil Palm Plantation Fund) operated as a government subsidy that gave unfair advantages to our biodiesel producers. However, the WTO Panel found this was incorrect. The OPPF is not a direct government payment -- it's a system where the palm oil industry supports itself through export levies that are redistributed within the sector. The EU couldn't prove that Indonesian biodiesel producers actually received any unfair advantage compared to normal market conditions.
Second, the EU failed to show that Indonesian biodiesel was harming European producers. The EU claimed there was a "threat of injury" to their industry, but the Panel found this was based on assumptions rather than empirical evidence. The EU made predictions about future Indonesian exports without clear and empiricial data and was unable to explain how Indonesian biodiesel would impact EU prices. Without proving real harm, the EU had no valid reason to impose these duties.
Third, the EU violated basic fairness and transparency rules during their investigation. They withheld important information from Indonesian exporters, making it impossible for our companies to properly defend themselves. The documents they did share were often too vague to be useful. They also refused to let Indonesian parties suggest alternative ways to assess the situation, keeping crucial data hidden until it was too late in the process.
In short, the WTO found that the EU's duties against Indonesian biodiesel had no proper legal basis and must be removed to comply with international trade rules.
This ruling is part of a clear pattern of discrimination by the EU against Indonesia's palm oil industry. The WTO has ruled against the EU multiple times:
• DS480 (EU – Anti-Dumping on Biodiesel from Indonesia): The WTO found the EU's anti-dumping duties on Indonesian biodiesel violated trade rules, particularly in how they calculated dumping margins.
• DS593 (EU – Palm Oil, complaint by Indonesia): The WTO Panel ruled that the EU's Renewable Energy Directive II (RED II) unfairly discriminated against palm oil biofuels through biased ILUC criteria, flawed conformity-assessment procedures, and discriminatory treatment, as well as France’s TIRIB tax.
• DS442 (EU – Anti-Dumping on Fatty Alcohols from Indonesia): The WTO found the EU acted inconsistently with anti-dumping rules in its treatment of palm-oil–derived fatty alcohols.
These repeated WTO ruling against the EU show that Brussels keeps trying different ways to block Indonesian palm oil from their market—whether through countervailing duties, anti-dumping measures, or environmental regulations. Each time, the WTO finds these measures are unjustified and illegal.
While this ruling should reopen the EU market for Indonesian palm oil-based biofuel, we remain concerned about whether the EU will actually follow through. The EU has been very slow to comply with previous WTO rulings, especially regarding RED II. We call on the EU to respect international trade law and immediately implement all WTO decisions.
We thank the Indonesian government, especially the Coordinating Ministry for Economic Affairs, for consistently defending our palm oil industry's rights in international forums. Indonesia will continue to fight any unfair trade measures that target our sustainable palm oil sector.
Indonesia is committed to sustainable palm oil production and deserves fair treatment in global markets under WTO rules. The EU must stop protecting its own industries at the expense of developing countries like Indonesia.
Media Relations
Author Contact
Media Relations
Indonesian Palm Oil Association (GAPKI)
+62 21 57943871
[email protected]
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Indonesia says US agrees tariff exemption for its palm oil, cocoa and rubber
Summary
- US fuel storage investment in Indonesia discussed
- Indonesia wants to attract investors into industrial parks
- Focus on silica sand processing for solar panels, semiconductors
JAKARTA, Aug 26 (Reuters) - The United States has agreed in principle to exempt Indonesian exports of cocoa, palm oil and rubber from the 19% tariff imposed by President Donald Trump since August 7, Indonesia's top trade negotiator said on Tuesday.
The exemption will take effect once both sides reach a final agreement, but no timeline has been set because the U.S. is busy in tariff talks with other countries, Airlangga Hartarto, who is also the chief economic minister, told Reuters.
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Malaysia’s palm oil market set to stay strong amid high prices and festive demand
Kuala Lumpur: Malaysia’s palm oil industry is expected to remain bullish in the near term, backed by firmer exports and manageable inventories, according to Fastmarkets Palm Oil Analytics senior analyst Sathia Varqa, reports The Malaysian Reserve.
He said crude palm oil (CPO) prices are likely to stay elevated, ranging between RM4,200 and RM4,500 per tonne, supported by global trade disruptions and uncertainty over U.S. biofuel policy.
“Import tariffs and shifting trade barriers in major economies have tightened edible oil supplies, raising risk premiums and spurring speculative buying, which has reinforced palm oil’s price momentum,” Sathia told Bernama.
He pointed to China’s anti-dumping duties on Canadian canola as an example. “The move drove rapeseed oil futures higher in China, and the rally quickly spilled into palm oil as traders adjusted across the vegetable oil market,” he said.
In the U.S., changes to biofuel policy under the 45Z programme have strengthened soybean oil prices by favouring domestic feedstock. “Since soybean oil is the main feedstock for biodiesel, the price rally spilled over into palm oil, lifting CPO prices as well,” Sathia explained.
The analyst said Malaysia’s export outlook is bright, with stronger shipments to India ahead of upcoming festivals. “Seasonal restocking will provide solid support for exports in the coming months,” he said.
On stocks, he noted that inventories slightly above two million tonnes reflect short-term supply-demand trends rather than oversupply. “Production growth is stagnant as planted areas remain unchanged at five million hectares since 2012. We expect production to peak soon before easing in the fourth quarter of 2025,” he added.
According to Malaysian Palm Oil Board (MPOB) data, national inventories rose for a fifth straight month in July, reaching 2.11 million tonnes—the highest in nearly two years—up 4% from June. Bioenergy Times
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UC Santa Cruz study on UCOs A Pathway to Scale up Production in Egypt
Doaa Ashraf
In a world still heavily reliant on diesel, across transportation, agriculture, shipping, and power generation, the need for cleaner, more sustainable alternatives is urgent. Fossil fuels not only accelerate climate change, but they also lock developing economies into expensive, finite energy systems.
This has prompted interest in biodiesel, a carbon-neutral alternative made from biological sources like plant oils or used cooking oil (UCO). It burns cleaner, is biodegradable, and can be produced locally, offering both climate sustainability and economic resilience.
In their study titled “Borate Pathway to FAMEs at Near-Ambient Conditions from Used Oil”, Kevin C. Lofgren, Scott R. J. Oliver and other professors from University of California, Santa Cruz introduced a new method to turn used cooking oil into fatty acid methyl esters (FAMEs), the chemical basis of biodiesel.
In general, Biodiesel production is dependent on using natural sources, including vegetable oils (like soybean, canola, and palm oil), animal fats, yellow grease, and used cooking oils. The natural source gets mixed with alcohol (methanol) and a catalyst. However, some catalysts used today produce byproducts that take more time to get rid of.
Also, some of the current methods for producing biodiesel results in soap as a byproduct, which makes purifying the fuel difficult and results in less actual product. Other approaches rely on palm oil, which require clearing trees in rainforests to make room for monoculture palm tree plantations. These methods are also energy intensive, requiring extremely high temperatures and pressures.
The objective of the study is to develop a mild, low-energy, and scalable method using a unique chemical which avoided the complexities of traditional methods of producing biodiesel.
“Making energy takes a lot of energy,” said co-author Scott Oliver, professor of chemistry and biochemistry in a press release of the university. “Our method uses waste oil and mild heating, compared to the common ways of producing diesel in petroleum refineries that are both energy consuming and pollution causing.”
Instead of using harsh chemicals like sodium hydroxide (NaOH), the researchers used a boron-based compound called sodium tetramethoxyborate (or NaB(OMe)₄). This chemical helps kickstart the reaction that turns oil into fuel, just like regular biodiesel methods, but it does so easily and environmentally friendly.
The professors obtained used cooking oil from a major fast food restaurant and mixed them with methanol, and this boron-based chemical in a basic container (like a glass flask). The components reacted together at a temperature around 40°C and in one hour the used oil was transferred to biodiesel.
The main advantage of this process is that it did not require extensive purification as no soap was formed from the chemicals’ reaction together. Instead, the byproducts, mainly a boron–glycerol mix, settled neatly at the bottom, leaving a clean layer of biodiesel ready to use.
To separate them apart, the researchers washed the biodiesel with water in order to extract remaining boron-containing residues. While, the solid boron-rich byproduct was collected to be reused in the process by adding it to methanol, making the whole process recyclable.
“This new method is special because it is simple and affordable. It has the bonus of being able to regenerate the starting material,” Lofgren said. “It’s already low-cost enough to make it competitive. But if you can buy the most expensive ingredient once and then regenerate it, it would be more cost efficient in the long run.”
This discovery has the potential to make the alternative fuel source much more appealing to the massive industrial sectors that are the backbone of the nation’s economy.
“Everybody needs energy—every farm, food production plant, and transportation vehicle depend on it,” Oliver said. “This could really impact people. This process can be done at just above room temperature and it is reusable. You do not need to have a refinery; you can potentially use this method on a farm.”
While the method developed at UC Santa Cruz is considered like lab-scale innovation, it speaks directly to real-world challenges already being tackled in Egypt. Companies like Tagaddod and Biodiesel Misr are leading the path in biodiesel production via collecting used oil from homes, restaurants, and factories.
However, new advancements could expand the adoption of biodiesel and help reduce reliance on fossil fuels in a carbon neutral and viable way. Egypt Oil & Gas Group
August 25, 2025
Indonesia Wins WTO Dispute, Calls for End to EU Biodiesel Tariffs
TEMPO.CO, Jakarta - Indonesia is urging the European Union (EU) to immediately revoke its countervailing duties on Indonesian biodiesel products after a win in the DS618 trade dispute at the World Trade Organization (WTO).
"We urge the EU to immediately revoke the countervailing duties that are not in line with WTO rules," said Minister of Trade Budi Santoso in a written statement on Monday, August 25, 2025.
The European Commission initially imposed these duties, arguing that Indonesia’s government was providing unfair subsidies to its biodiesel producers.
The EU claimed these subsidies were channeled through various policies, including those related to raw material provision, export duties, export levies, and reference price determination for the palm oil sector. The EU asserted that these alleged subsidies distorted market prices and harmed its domestic industry.
However, the WTO determined that the EU had acted inconsistently and violated key provisions of the WTO Agreement on Subsidies and Countervailing Measures. According to Budi, the WTO's decision was based on several critical findings.
First, the WTO rejected the EU's argument that the Indonesian government was directing businesses to sell palm oil to biodiesel producers at artificially low prices.
Second, the WTO concluded that Indonesia's policies on export duties and palm oil export levies do not qualify as subsidies under international trade rules. Finally, the WTO stated that the EU failed to provide sufficient evidence of the material threats experienced by European biodiesel producers as a result of Indonesian biodiesel exports.
Budi further explained that the WTO Panel found the European Commission had overlooked other factors influencing the region’s biodiesel market dynamics. "Thus, the WTO Panel judged that the countervailing duties imposed by the EU on Indonesian biodiesel products were not based on objective evidence," Budi stated.
According to Budi, this victory validates Indonesia's commitment to international trade rules and refutes the EU's allegations of distortive policies. "This victory also proves that the WTO remains relevant as a forum for trade dispute resolution," he added. Tempo
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Indonesia urges EU to remove biodiesel import curbs after WTO ruling
By Bernadette Christina
The world's biggest palm oil exporter had contended in its 2023 complaint that the duties levied by the European Union, the third-largest destination for its palm oil products, broke the trade body's rules.
"We urge the EU to immediately revoke these countervailing import duties that are not WTO-compliant," Trade Minister Budi Santoso said in a statement.
The case joins a string of disputes over biodiesel tariffs and palm oil's link to deforestation, as the EU and Indonesia edge nearer to signing a free trade deal after a political agreement struck in July.
The EU has imposed the duties, ranging from 8% to 18%, since 2019, saying the Southeast Asian nation's biodiesel producers benefit from grants, tax benefits and access to raw materials below market prices.
The trade ministry said the WTO panel held that Indonesia's export duty and export levy on palm oil could not be categorised as a subsidy.
The Indonesia Palm Oil Association, GAPKI, said it welcomed the WTO ruling and called on the European Commission to make sure future measures, particularly EU deforestation regulation, did not discriminate against Indonesian palm oil.
The EU representative in Jakarta did not immediately respond to a request for comment.
Indonesia's exports of palm oil-based biodiesel stood at 27,000 kilolitres (kl) in 2024. They had plunged to 36,000 kl in 2020 from 1.32 million kl in 2019.
An official from the Indonesia Biofuel Producers Association said they doubted the EU would comply with the request, going by past experience.
"We, as an industry, must remain vigilant and ready for any movement by the EU after this ruling," Catra de Thouars told Reuters. He said Jakarta was still in dispute with Brussels over the EU's anti-deforestation rules.
The countervailing duties came a year after the European Court of Justice ordered the EU to do away with anti-dumping duties on imports of Indonesian biodiesel.
Jakarta expects the upcoming free trade pact to open the way for greater market access for palm oil, among other products. Reuters
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Sarawak To Draft Palm Oil Waste Management Law By Year-End
BINTULU: The Sarawak Government will introduce a new law by the end of this year to regulate the management of oil palm waste on Native Customary Rights (NCR) land.
Sarawak Premier, Datuk Patinggi Tan Sri (Dr) Abang Abdul Rahman Zohari Tun Datuk Abang Openg, said the move is vital as palm oil by-products, such as palm kernels, hold significant economic value and can be utilised as fertiliser, animal feed, and biogas.
He noted, however, that at present, oil palm waste is being sold in an unregulated manner, resulting in lost opportunities to fully maximise its potential.
“If NCR land is used for oil palm, by-products such as kernels can be processed into animal feed.
“But the problem now is that there are no laws to regulate this waste, and some are selling it haphazardly.
“We need legislation to ensure that all oil palm waste is collected.
“In this way, it can be turned into fertiliser, animal feed, and even biogas,” he said at a press conference after officiating at Sarawak Agrofest 2025 here on Saturday.
He further disclosed that the Sarawak Attorney General’s Office is currently drafting the legislation, which is expected to be announced by year-end.
“God willing, by the end of this year, the Attorney General will complete a specific law for this purpose,” he added.
Datuk Patinggi Tan Sri Abang Zohari expressed confidence that the new law will strengthen Sarawak’s food security agenda, support the development of a modern livestock industry, and boost rural incomes through a circular economy approach. -UKASnews. Sarawak.gov
----------
From tree to table: follow the journey of sustainable palm oil production in Malaysia
A chemical engineer explains how Malaysian palm oil is processed, graded and refined to meet health, quality and environmental standards
Every year, enough palm oil is produced to fill 30,000 Olympic-sized swimming pools, and nearly one-third of it comes from Malaysia. But how does this widely used ingredient get from tree to table?
“It’s a product that touches so many lives,” says Shyam Lakshmanan, a chemical engineer with four decades of experience in palm oil refining. Based in Sandakan, Malaysia, he leads one of the country’s major refineries and has spent much of his career focused on improving efficiency, quality and environmental standards in the palm oil industry. SCMP
Indonesia Wins WTO Dispute, Calls for End to EU Biodiesel Tariffs
TEMPO.CO, Jakarta - Indonesia is urging the European Union (EU) to immediately revoke its countervailing duties on Indonesian biodiesel products after a win in the DS618 trade dispute at the World Trade Organization (WTO).
"We urge the EU to immediately revoke the countervailing duties that are not in line with WTO rules," said Minister of Trade Budi Santoso in a written statement on Monday, August 25, 2025.
The European Commission initially imposed these duties, arguing that Indonesia’s government was providing unfair subsidies to its biodiesel producers.
The EU claimed these subsidies were channeled through various policies, including those related to raw material provision, export duties, export levies, and reference price determination for the palm oil sector. The EU asserted that these alleged subsidies distorted market prices and harmed its domestic industry.
However, the WTO determined that the EU had acted inconsistently and violated key provisions of the WTO Agreement on Subsidies and Countervailing Measures. According to Budi, the WTO's decision was based on several critical findings.
First, the WTO rejected the EU's argument that the Indonesian government was directing businesses to sell palm oil to biodiesel producers at artificially low prices.
Second, the WTO concluded that Indonesia's policies on export duties and palm oil export levies do not qualify as subsidies under international trade rules. Finally, the WTO stated that the EU failed to provide sufficient evidence of the material threats experienced by European biodiesel producers as a result of Indonesian biodiesel exports.
Budi further explained that the WTO Panel found the European Commission had overlooked other factors influencing the region’s biodiesel market dynamics. "Thus, the WTO Panel judged that the countervailing duties imposed by the EU on Indonesian biodiesel products were not based on objective evidence," Budi stated.
According to Budi, this victory validates Indonesia's commitment to international trade rules and refutes the EU's allegations of distortive policies. "This victory also proves that the WTO remains relevant as a forum for trade dispute resolution," he added. Tempo
----------
Indonesia urges EU to remove biodiesel import curbs after WTO ruling
By Bernadette Christina
- Summary
- Duties deemed non-compliant with WTO rules, Indonesia says
- Indonesia-EU disputes persist even as trade pact progresses
- No immediate comment from EU representative in Jakarta
The world's biggest palm oil exporter had contended in its 2023 complaint that the duties levied by the European Union, the third-largest destination for its palm oil products, broke the trade body's rules.
"We urge the EU to immediately revoke these countervailing import duties that are not WTO-compliant," Trade Minister Budi Santoso said in a statement.
The case joins a string of disputes over biodiesel tariffs and palm oil's link to deforestation, as the EU and Indonesia edge nearer to signing a free trade deal after a political agreement struck in July.
The EU has imposed the duties, ranging from 8% to 18%, since 2019, saying the Southeast Asian nation's biodiesel producers benefit from grants, tax benefits and access to raw materials below market prices.
The trade ministry said the WTO panel held that Indonesia's export duty and export levy on palm oil could not be categorised as a subsidy.
The Indonesia Palm Oil Association, GAPKI, said it welcomed the WTO ruling and called on the European Commission to make sure future measures, particularly EU deforestation regulation, did not discriminate against Indonesian palm oil.
The EU representative in Jakarta did not immediately respond to a request for comment.
Indonesia's exports of palm oil-based biodiesel stood at 27,000 kilolitres (kl) in 2024. They had plunged to 36,000 kl in 2020 from 1.32 million kl in 2019.
An official from the Indonesia Biofuel Producers Association said they doubted the EU would comply with the request, going by past experience.
"We, as an industry, must remain vigilant and ready for any movement by the EU after this ruling," Catra de Thouars told Reuters. He said Jakarta was still in dispute with Brussels over the EU's anti-deforestation rules.
The countervailing duties came a year after the European Court of Justice ordered the EU to do away with anti-dumping duties on imports of Indonesian biodiesel.
Jakarta expects the upcoming free trade pact to open the way for greater market access for palm oil, among other products. Reuters
---------
Sarawak To Draft Palm Oil Waste Management Law By Year-End
BINTULU: The Sarawak Government will introduce a new law by the end of this year to regulate the management of oil palm waste on Native Customary Rights (NCR) land.
Sarawak Premier, Datuk Patinggi Tan Sri (Dr) Abang Abdul Rahman Zohari Tun Datuk Abang Openg, said the move is vital as palm oil by-products, such as palm kernels, hold significant economic value and can be utilised as fertiliser, animal feed, and biogas.
He noted, however, that at present, oil palm waste is being sold in an unregulated manner, resulting in lost opportunities to fully maximise its potential.
“If NCR land is used for oil palm, by-products such as kernels can be processed into animal feed.
“But the problem now is that there are no laws to regulate this waste, and some are selling it haphazardly.
“We need legislation to ensure that all oil palm waste is collected.
“In this way, it can be turned into fertiliser, animal feed, and even biogas,” he said at a press conference after officiating at Sarawak Agrofest 2025 here on Saturday.
He further disclosed that the Sarawak Attorney General’s Office is currently drafting the legislation, which is expected to be announced by year-end.
“God willing, by the end of this year, the Attorney General will complete a specific law for this purpose,” he added.
Datuk Patinggi Tan Sri Abang Zohari expressed confidence that the new law will strengthen Sarawak’s food security agenda, support the development of a modern livestock industry, and boost rural incomes through a circular economy approach. -UKASnews. Sarawak.gov
----------
From tree to table: follow the journey of sustainable palm oil production in Malaysia
A chemical engineer explains how Malaysian palm oil is processed, graded and refined to meet health, quality and environmental standards
Every year, enough palm oil is produced to fill 30,000 Olympic-sized swimming pools, and nearly one-third of it comes from Malaysia. But how does this widely used ingredient get from tree to table?
“It’s a product that touches so many lives,” says Shyam Lakshmanan, a chemical engineer with four decades of experience in palm oil refining. Based in Sandakan, Malaysia, he leads one of the country’s major refineries and has spent much of his career focused on improving efficiency, quality and environmental standards in the palm oil industry. SCMP
August 23, 2025
WTO panel backs Indonesia on several counts in biodiesel row with EU
GENEVA, Aug 22 (Reuters) - A World Trade Organization panel backed Indonesia on several key claims in its complaint over countervailing duties imposed by the European Union on biodiesel imports originating in the country, a copy of the ruling showed on Friday.
Indonesia brought the dispute to the WTO in 2023, alleging the EU's imposition of duties on imports of biodiesel from the Southeast Asian nation broke the body's rules.
"We recommend that the European Union bring its measures into conformity with its obligations under the SCM Agreement," the panel said in its conclusion, referring to a WTO agreement on subsidies and countervailing measures.
The EU is Indonesia's third-largest destination for palm oil products and is an important market for its biodiesel, a product made from palm oil. Indonesia is the world's biggest palm oil producer.
Indonesia appreciates the ruling and is preparing for its implementation, chief economic minister Airlangga Hartarto told Reuters on Saturday, without providing further details.
The finding can be appealed, but no final ruling is possible since the WTO's top appeals court is no longer operational. Reuters
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WTO panel issues report regarding EU duties on imports of biodiesel from Indonesia
On 22 August the WTO circulated the panel report in the case brought by Indonesia in “European Union — Countervailing Duties on Imports of Biodiesel from Indonesia” (DS618). WTO
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WTO panel rules EU biodiesel duties on Indonesia unlawful
22/08/2025 by Chris Horseman
The European Union acted unlawfully in imposing countervailing duties on imports of Indonesian biodiesel, a World Trade Organization dispute settlement panel ruled today.
The panel supported most of the claims brought by Jakarta in a legal case challenging the validity of duties introduced by Brussels in 2019.
The panelists called on the EU to adjust its CVD measures to bring them into conformity with its obligations under the WTO’s agreement on subsidies and countervailing measures.
Brussels must now decide whether to accept the panel’s verdict or to appeal. The latter course of action would stall the legal action indefinitely, as there is no currently functioning appellate body.
Indonesia is not a signatory to the multi-party interim appeal arbitration arrangement – or MPIA – which was created as a voluntary alternative to the hamstrung appeals system.
Indonesia’s palm oil export curbs ‘were not price support’
The European Commission justified its countervailing measures on the basis that the Indonesian government’s restraints on exports of crude palm oil were a de facto subsidy to Indonesian biodiesel producers.
This was because they had the effect of artificially depressing the purchase price for the biofuel’s main component, EU lawyers claimed.
But the panel said the commission had not acted in accordance with the SCM in determining that Jakarta’s trade measures qualified as “income or price support” to the country’s biodiesel industry.
It also criticised Brussels’ processes for assessing whether the Indonesian government had improperly intervened in the market for crude palm oil.
In addition, the panel asserted that the EU’s determination that subsidised imports of Indonesian biodiesel posed a threat of material injury to EU biodiesel producers was “unsupported by the facts”.
Further challenges by Jakarta to other procedural aspects of the EU’s investigation were rejected.
EU measures shrink Indonesian biodiesel exports
Indonesia’s biodiesel exports to the bloc slumped after Brussels imposed countervailing duties of between 8% and 18% on biodiesel imports from Indonesia in 2019.
The EU also imposes anti-dumping duties on biodiesel imports from both the US and China.
Earlier this year a separate WTO panel gave qualified backing to the EU’s policy of restricting imports of Indonesian palm oil for biodiesel production in the EU, on sustainability grounds Borderlex
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Forest owners urge Czech PM to push for revision of EU deforestation rules
Representatives of Czech forest owners, timber processors, and municipalities have called on Prime Minister Petr Fiala (Civic Democratic Party) to seek changes to the EU Deforestation Regulation (EUDR). In a letter, they argued that the regulation is unnecessary in Czechia, where deforestation is not a risk, and would impose excessive bureaucracy. They propose creating a category of “zero-risk countries” to ease obligations for producers in states like Czechia. The EUDR requires companies to prove that products such as cattle, cocoa, coffee, palm oil, soy, timber, or rubber are not linked to deforestation before entering the EU market. Radio CZ
WTO panel backs Indonesia on several counts in biodiesel row with EU
GENEVA, Aug 22 (Reuters) - A World Trade Organization panel backed Indonesia on several key claims in its complaint over countervailing duties imposed by the European Union on biodiesel imports originating in the country, a copy of the ruling showed on Friday.
Indonesia brought the dispute to the WTO in 2023, alleging the EU's imposition of duties on imports of biodiesel from the Southeast Asian nation broke the body's rules.
"We recommend that the European Union bring its measures into conformity with its obligations under the SCM Agreement," the panel said in its conclusion, referring to a WTO agreement on subsidies and countervailing measures.
The EU is Indonesia's third-largest destination for palm oil products and is an important market for its biodiesel, a product made from palm oil. Indonesia is the world's biggest palm oil producer.
Indonesia appreciates the ruling and is preparing for its implementation, chief economic minister Airlangga Hartarto told Reuters on Saturday, without providing further details.
The finding can be appealed, but no final ruling is possible since the WTO's top appeals court is no longer operational. Reuters
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WTO panel issues report regarding EU duties on imports of biodiesel from Indonesia
On 22 August the WTO circulated the panel report in the case brought by Indonesia in “European Union — Countervailing Duties on Imports of Biodiesel from Indonesia” (DS618). WTO
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WTO panel rules EU biodiesel duties on Indonesia unlawful
22/08/2025 by Chris Horseman
The European Union acted unlawfully in imposing countervailing duties on imports of Indonesian biodiesel, a World Trade Organization dispute settlement panel ruled today.
The panel supported most of the claims brought by Jakarta in a legal case challenging the validity of duties introduced by Brussels in 2019.
The panelists called on the EU to adjust its CVD measures to bring them into conformity with its obligations under the WTO’s agreement on subsidies and countervailing measures.
Brussels must now decide whether to accept the panel’s verdict or to appeal. The latter course of action would stall the legal action indefinitely, as there is no currently functioning appellate body.
Indonesia is not a signatory to the multi-party interim appeal arbitration arrangement – or MPIA – which was created as a voluntary alternative to the hamstrung appeals system.
Indonesia’s palm oil export curbs ‘were not price support’
The European Commission justified its countervailing measures on the basis that the Indonesian government’s restraints on exports of crude palm oil were a de facto subsidy to Indonesian biodiesel producers.
This was because they had the effect of artificially depressing the purchase price for the biofuel’s main component, EU lawyers claimed.
But the panel said the commission had not acted in accordance with the SCM in determining that Jakarta’s trade measures qualified as “income or price support” to the country’s biodiesel industry.
It also criticised Brussels’ processes for assessing whether the Indonesian government had improperly intervened in the market for crude palm oil.
In addition, the panel asserted that the EU’s determination that subsidised imports of Indonesian biodiesel posed a threat of material injury to EU biodiesel producers was “unsupported by the facts”.
Further challenges by Jakarta to other procedural aspects of the EU’s investigation were rejected.
EU measures shrink Indonesian biodiesel exports
Indonesia’s biodiesel exports to the bloc slumped after Brussels imposed countervailing duties of between 8% and 18% on biodiesel imports from Indonesia in 2019.
The EU also imposes anti-dumping duties on biodiesel imports from both the US and China.
Earlier this year a separate WTO panel gave qualified backing to the EU’s policy of restricting imports of Indonesian palm oil for biodiesel production in the EU, on sustainability grounds Borderlex
---------
Forest owners urge Czech PM to push for revision of EU deforestation rules
Representatives of Czech forest owners, timber processors, and municipalities have called on Prime Minister Petr Fiala (Civic Democratic Party) to seek changes to the EU Deforestation Regulation (EUDR). In a letter, they argued that the regulation is unnecessary in Czechia, where deforestation is not a risk, and would impose excessive bureaucracy. They propose creating a category of “zero-risk countries” to ease obligations for producers in states like Czechia. The EUDR requires companies to prove that products such as cattle, cocoa, coffee, palm oil, soy, timber, or rubber are not linked to deforestation before entering the EU market. Radio CZ
August 22, 2025
Exclusive: India snaps up steeply discounted palm oil from Colombia, Guatemala
By Rajendra Jadhav
MUMBAI, Aug 21 (Reuters) - Indian importers for the first time bought palm oil from Colombia and Guatemala as producers sitting on surplus stocks offered cargoes at steep discounts, four trade sources with direct knowledge of the matter said.
Indonesia and Malaysia dominate global palm oil supplies and are the main suppliers to India, which imported 9 million tons of palm oil in 2023/24. Colombia and Guatemala, the fourth- and sixth-largest producers of palm oil, usually export their surplus stocks to Europe and North America.
The landed cost of South American palm oil at Indian ports was more than $10 per ton lower than supplies from Indonesia and Malaysia, another Mumbai-based dealer said.
Crude palm oil (CPO) is currently being offered at about $1,165 a ton, including cost, insurance and freight (CIF), in India for October delivery.
Freight to ship palm oil from the Americas is about $90 per ton, compared with $45 from Southeast Asia, said Sandeep Bajoria, chief executive of Sunvin Group, a Mumbai-based brokerage.
Vessels will be loaded at South American ports in September to arrive at India's Kandla port in October, said a New Delhi-based dealer.
Latin America exports half of its 5 million tons of palm oil, and India's first purchases from the region could open the door to more supplies, said Aashish Acharya, vice president at Patanjali Foods Ltd (PAFO.NS), opens new tab, a leading importer of edible oils. Reuters
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Sabah state in Malaysia leads in sustainable palm oil with 97pct MSPO certification
KOTA KINABALU (Aug 21): Around 97 per cent of oil palm plantation smallholders in Sabah have received Malaysian Sustainable Palm Oil (MSPO) certification, among the highest rates in the country.
Chief Minister Datuk Seri Hajiji Noor said as of April this year, the certification covers more than 30,000 smallholders and over 191,000ha of plantation land.
He stressed that amid global pressure for deforestation-free supply chains, advancing certification and traceability is vital for Malaysia to maintain credibility and recognition among key stakeholders.
“In Sabah, we are making progress, with about 97 per cent of the planted area and over 92 per cent in Sarawak certified under MSPO. However, we must push toward 100 per cent inclusion, particularly for independent smallholders,” he said at the East Malaysia Palm Oil Forum (EMPOF2025) here today.
His speech was delivered by State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe.
Hajiji said the state government has adopted the Jurisdictional Approach for Sustainable Palm Oil (Jaspo), launched in 2015, with the goal of achieving 100 percent certified sustainable palm oil production statewide by 2030.
“Jaspo aligns Sabah’s ambitions with national and international standards such as MSPO, the Roundtable on Sustainable Palm Oil (RSPO), and the EU Deforestation Regulation (EUDR). It ensures that no stakeholder is left behind, especially smallholders, who account for over 27 percent of Sabah’s production,” he said.
Sabah currently has 1.48 million hectares under cultivation, with annual output exceeding 4.2 million metric tonnes of crude palm oil (CPO). Together with Sarawak, the two states account for more than 55 percent of Malaysia’s total oil palm planted areas, cementing the country’s position as the world’s second-largest palm oil producer.
Hajiji noted that the industry supports the livelihoods of more than 300,000 Malaysians and over 85,000 smallholders nationwide, while also reshaping rural areas through infrastructure such as roads, schools, clinics and digital connectivity The Borneo Post
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Unilever is using biomethane made from palm oil waste to help lower emissions
Unilever is using biomethane made from palm oil waste to help lower emissions at our facility in Indonesia. Discover how we’re working to grow our business more sustainably and inspire positive change in the palm oil industry.
Unilever is the first company in Indonesia to buy biomethane for industrial use
Post expansion, our oleochemicals factory in North Sumatra is now the largest greenhouse gas (GHG) emitting site in Unilever’s global operations
Our biggest biomethane offtake to date is forming part of a cost-effective and resilient route to decarbonisation at the facility
To make our palm oil supply chain more transparent and traceable, and help maintain ‘no deforestation’ for this key commodity, Unilever is working directly with producers and mills, bypassing traditional intermediaries and bringing much of our palm oil refining in-house.
To help ensure that more of the palm-derived ingredients that create lather in many of our global products are made this way, we’ve recently expanded Unilever Oleochemical Indonesia (UOI), our palm oil processing facility in Sei Mangkei, North Sumatra.
The challenge has been that following this expansion, UOI is now the largest greenhouse gas (GHG) emitting site in Unilever’s global operations. To meet our target of reducing our global Scope 1 and 2 emissions by 100% by 2030 (vs 2015), we need to act decisively to address the impact.
That’s why we’re shifting towards thermal renewable energy. In a market where fossil-based energy is still abundant, renewable energy opportunities are currently minimal – but corporates can help drive the clean energy transition. In the first commercial offtake of biomethane in Indonesia, Unilever has started replacing the natural gas we have been using at UOI with biomethane, created from palm oil effluent from local mills. Unilever
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Airbus eyes Indonesia biomass for SAF
Airbus’s Singapore office has partnered with Indonesia’s Bogor Agricultural University (IPB) to explore the use of biomass in producing sustainable aviation fuel (SAF), aiming to source up to 100 million tonnes per year from the country.
The collaboration will conduct a detailed study of Indonesia’s biomass potential, covering resource availability, logistics, supply chain mapping and factory locations to reduce transport costs.
Meika Syahbana Rusli, head of IPB’s Surfactant and Bioenergy Research Centre (SBRC), said Airbus sees strong potential in Indonesia.
“Airbus is very interested in developing SAF from biomass and has identified Indonesia as a major potential supplier,” he said.
He noted that SAF currently made from used cooking oil, waste palm oil, and low-grade vegetable oils faces output limitations due to competition with food supplies.
Airbus estimates that by 2030, SAF will need to be sourced mainly from biomass.
Indonesia could produce up to 500 million tonnes annually - five times the company’s projected requirements.
Large volumes of unused palm fruit bunches in Sumatra and Kalimantan, along with rice straw in Java that is often discarded or burned, could provide key feedstocks.
However, Meika highlighted challenges including the difficulty of collecting biomass from smallholder farmers in areas with poor infrastructure, regulatory gaps and limited research on processing biomass into aviation fuel at scale.
Indonesia has seen rising biomass exports and domestic use, particularly of wood pellets and chips.
Environmental groups caution that the expansion of biomass could come at a cost. Auriga Nusantara, an environmental watchdog, reported that about 10,000 hectares of forest were cleared for biomass production between 2020 and 2024, with potential threats to endangered species such as orangutans if monoculture plantations expand.
Kast month, state-owned Pertamina’s refining arm, PT Kilang Pertamina Internasional (KPI), began producing SAF from used cooking oil at its Cilacap refinery.
Indonesia, the world’s top crude palm oil producer, has been testing bioavtur production from palm oil since 2021 and is also exploring cooking oil-based SAF.
If regulatory and quality tests are passed, the first trial flight is planned for August.
The energy ministry aims for vegetable oil to make up 1% of Indonesia’s bioavtur blend by 2027, as part of efforts to reduce oil imports and carbon emissions. Bioenergy News
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Investigation by Aceh High Prosecutors Office shows IDR 38.4 Billion PSR Funds Misappropriated
BANDA ACEH - Aceh High Prosecutor's Office (Kejati) investigators examined 465 witnesses in investigating cases of alleged corruption in the people's palm oil rejuvenation program (PSR) in Aceh Jaya Regency, which cost the state Rp38.4 billion.
Head of the Legal Information and Public Relations Section of the Aceh Attorney General's Office, Ali Rasab Lubis, said investigators had named three suspects in the alleged corruption case of the PSR program.
"Until now, investigators have examined 464 witnesses and four experts. Witnesses are related parties in the people's palm oil rejuvenation program in Aceh Jaya Regency," said Ali Rasab Lubis, quoted by ANTARA, Friday, August 22.
Of the hundreds of witnesses, he said, 382 of them were from the community or plantations who were proposed to receive the PSR program. The following are four people from the Palm Oil Plantation Fund Management Agency (BPDPKS).
Furthermore, 40 witnesses from the Aceh Jaya District Agriculture Service, a witness from the Aceh Plantation Service, one witness from the Indonesian Ministry of Transmigration, was a witness from the Aceh Transmigration Service.
"As well as four witnesses from the Indonesian Ministry of Agriculture, as many as 40 witnesses from the Aceh Jaya District Agriculture Service, 14 witnesses from village and sub-district officials, six from cooperatives, and 12 witnesses from partners or providers," said Ali Rasab Lubis.
Previously, Aceh Attorney General's Office investigators named three names as suspects for alleged corruption in the PSR program for the 2019 to 2023 fiscal years with state losses reaching Rp38.4 billion.
The three of them are with the initials S as Chair of the Aceh Jaya Regency Mangate Agricultural Cooperative. S also served as a member of the Aceh Jaya DPRK for the 2024-2024 period.
Next, TM as Head of the Aceh Jaya Regency Agriculture Service from 2017 to 2020 as well as Acting (Plt) Head of the Aceh Jaya Regency Agriculture Service from 2023 to 2024.
As well as TR as the Head of the Aceh Jaya Regency Agriculture Service from March 2021 to 2023. TR is currently the Regional Secretary of Aceh Jaya Regency.
Now, the three suspects are being held at the Class IIB Banda Aceh Detention Center. In addition to detaining the suspects, investigators also confiscated more than IDR 17 billion as evidence. VOI
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Ministry of Forestry steps in to curb mangrove forest encroachment in Aceh
Jakarta (ANTARA) - The Ministry of Forestry has halted the encroachment of 500 hectares of mangrove forest for oil palm plantations in Kuala Genting Village, Aceh Tamiang District, Aceh.
The ministry's Director General of Law Enforcement, Dwi Januanto Nugroho, on Friday, noted that such an encroachment action was considered detrimental since the mangrove forest ecosystem in Aceh Tamiang is a natural resource that serves important ecological and socio-economic functions.
"From a socio-economic perspective, mangrove forests can provide a source of livelihoods for the community, a tourist destination, and a source of raw materials for various products. This natural resource wealth must be maintained according to its intended function," Nugroho emphasized.
The Sumatra Forestry Law Enforcement Agency revealed the case after receiving public reports of widespread encroachment and destruction of the mangrove ecosystem in Kuala Genting Village.
The head of the Sumatra Forestry Law Enforcement Agency, Hari Novianto, conveyed that his team installed signs indicating supervision and investigation within the area. The sign installation was assisted by personnel from the Aceh Region III Forest Management Unit (KPH) and the Seruway Navy Post.
Field inspections by the team found that the land clearing for new oil palm plantations was carried out from June to August 2025.
Based on witness interviews and forest cover analysis, this encroachment activity for oil palm plantations occurred on approximately 500 hectares of land from 2020 to 2025.
Nugroho said this action involved the use of Cooperatives and a Statement of Physical Control of Land Areas (SPPFBT).
"We have identified several suspected perpetrators and instructed investigators to question witnesses, the perpetrators, and the actors involved in the encroachment," he remarked.
Furthermore, his party had coordinated with the East Aceh Forest Management Unit III (KPH III), the Aceh Tamiang Regional Government, and local law enforcement officials to jointly halt the encroachment on the mangrove forest. Antara News
Exclusive: India snaps up steeply discounted palm oil from Colombia, Guatemala
By Rajendra Jadhav
MUMBAI, Aug 21 (Reuters) - Indian importers for the first time bought palm oil from Colombia and Guatemala as producers sitting on surplus stocks offered cargoes at steep discounts, four trade sources with direct knowledge of the matter said.
Indonesia and Malaysia dominate global palm oil supplies and are the main suppliers to India, which imported 9 million tons of palm oil in 2023/24. Colombia and Guatemala, the fourth- and sixth-largest producers of palm oil, usually export their surplus stocks to Europe and North America.
The landed cost of South American palm oil at Indian ports was more than $10 per ton lower than supplies from Indonesia and Malaysia, another Mumbai-based dealer said.
Crude palm oil (CPO) is currently being offered at about $1,165 a ton, including cost, insurance and freight (CIF), in India for October delivery.
Freight to ship palm oil from the Americas is about $90 per ton, compared with $45 from Southeast Asia, said Sandeep Bajoria, chief executive of Sunvin Group, a Mumbai-based brokerage.
Vessels will be loaded at South American ports in September to arrive at India's Kandla port in October, said a New Delhi-based dealer.
Latin America exports half of its 5 million tons of palm oil, and India's first purchases from the region could open the door to more supplies, said Aashish Acharya, vice president at Patanjali Foods Ltd (PAFO.NS), opens new tab, a leading importer of edible oils. Reuters
---------
Sabah state in Malaysia leads in sustainable palm oil with 97pct MSPO certification
KOTA KINABALU (Aug 21): Around 97 per cent of oil palm plantation smallholders in Sabah have received Malaysian Sustainable Palm Oil (MSPO) certification, among the highest rates in the country.
Chief Minister Datuk Seri Hajiji Noor said as of April this year, the certification covers more than 30,000 smallholders and over 191,000ha of plantation land.
He stressed that amid global pressure for deforestation-free supply chains, advancing certification and traceability is vital for Malaysia to maintain credibility and recognition among key stakeholders.
“In Sabah, we are making progress, with about 97 per cent of the planted area and over 92 per cent in Sarawak certified under MSPO. However, we must push toward 100 per cent inclusion, particularly for independent smallholders,” he said at the East Malaysia Palm Oil Forum (EMPOF2025) here today.
His speech was delivered by State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe.
Hajiji said the state government has adopted the Jurisdictional Approach for Sustainable Palm Oil (Jaspo), launched in 2015, with the goal of achieving 100 percent certified sustainable palm oil production statewide by 2030.
“Jaspo aligns Sabah’s ambitions with national and international standards such as MSPO, the Roundtable on Sustainable Palm Oil (RSPO), and the EU Deforestation Regulation (EUDR). It ensures that no stakeholder is left behind, especially smallholders, who account for over 27 percent of Sabah’s production,” he said.
Sabah currently has 1.48 million hectares under cultivation, with annual output exceeding 4.2 million metric tonnes of crude palm oil (CPO). Together with Sarawak, the two states account for more than 55 percent of Malaysia’s total oil palm planted areas, cementing the country’s position as the world’s second-largest palm oil producer.
Hajiji noted that the industry supports the livelihoods of more than 300,000 Malaysians and over 85,000 smallholders nationwide, while also reshaping rural areas through infrastructure such as roads, schools, clinics and digital connectivity The Borneo Post
---------
Unilever is using biomethane made from palm oil waste to help lower emissions
Unilever is using biomethane made from palm oil waste to help lower emissions at our facility in Indonesia. Discover how we’re working to grow our business more sustainably and inspire positive change in the palm oil industry.
Unilever is the first company in Indonesia to buy biomethane for industrial use
Post expansion, our oleochemicals factory in North Sumatra is now the largest greenhouse gas (GHG) emitting site in Unilever’s global operations
Our biggest biomethane offtake to date is forming part of a cost-effective and resilient route to decarbonisation at the facility
To make our palm oil supply chain more transparent and traceable, and help maintain ‘no deforestation’ for this key commodity, Unilever is working directly with producers and mills, bypassing traditional intermediaries and bringing much of our palm oil refining in-house.
To help ensure that more of the palm-derived ingredients that create lather in many of our global products are made this way, we’ve recently expanded Unilever Oleochemical Indonesia (UOI), our palm oil processing facility in Sei Mangkei, North Sumatra.
The challenge has been that following this expansion, UOI is now the largest greenhouse gas (GHG) emitting site in Unilever’s global operations. To meet our target of reducing our global Scope 1 and 2 emissions by 100% by 2030 (vs 2015), we need to act decisively to address the impact.
That’s why we’re shifting towards thermal renewable energy. In a market where fossil-based energy is still abundant, renewable energy opportunities are currently minimal – but corporates can help drive the clean energy transition. In the first commercial offtake of biomethane in Indonesia, Unilever has started replacing the natural gas we have been using at UOI with biomethane, created from palm oil effluent from local mills. Unilever
---------
Airbus eyes Indonesia biomass for SAF
Airbus’s Singapore office has partnered with Indonesia’s Bogor Agricultural University (IPB) to explore the use of biomass in producing sustainable aviation fuel (SAF), aiming to source up to 100 million tonnes per year from the country.
The collaboration will conduct a detailed study of Indonesia’s biomass potential, covering resource availability, logistics, supply chain mapping and factory locations to reduce transport costs.
Meika Syahbana Rusli, head of IPB’s Surfactant and Bioenergy Research Centre (SBRC), said Airbus sees strong potential in Indonesia.
“Airbus is very interested in developing SAF from biomass and has identified Indonesia as a major potential supplier,” he said.
He noted that SAF currently made from used cooking oil, waste palm oil, and low-grade vegetable oils faces output limitations due to competition with food supplies.
Airbus estimates that by 2030, SAF will need to be sourced mainly from biomass.
Indonesia could produce up to 500 million tonnes annually - five times the company’s projected requirements.
Large volumes of unused palm fruit bunches in Sumatra and Kalimantan, along with rice straw in Java that is often discarded or burned, could provide key feedstocks.
However, Meika highlighted challenges including the difficulty of collecting biomass from smallholder farmers in areas with poor infrastructure, regulatory gaps and limited research on processing biomass into aviation fuel at scale.
Indonesia has seen rising biomass exports and domestic use, particularly of wood pellets and chips.
Environmental groups caution that the expansion of biomass could come at a cost. Auriga Nusantara, an environmental watchdog, reported that about 10,000 hectares of forest were cleared for biomass production between 2020 and 2024, with potential threats to endangered species such as orangutans if monoculture plantations expand.
Kast month, state-owned Pertamina’s refining arm, PT Kilang Pertamina Internasional (KPI), began producing SAF from used cooking oil at its Cilacap refinery.
Indonesia, the world’s top crude palm oil producer, has been testing bioavtur production from palm oil since 2021 and is also exploring cooking oil-based SAF.
If regulatory and quality tests are passed, the first trial flight is planned for August.
The energy ministry aims for vegetable oil to make up 1% of Indonesia’s bioavtur blend by 2027, as part of efforts to reduce oil imports and carbon emissions. Bioenergy News
---------
Investigation by Aceh High Prosecutors Office shows IDR 38.4 Billion PSR Funds Misappropriated
BANDA ACEH - Aceh High Prosecutor's Office (Kejati) investigators examined 465 witnesses in investigating cases of alleged corruption in the people's palm oil rejuvenation program (PSR) in Aceh Jaya Regency, which cost the state Rp38.4 billion.
Head of the Legal Information and Public Relations Section of the Aceh Attorney General's Office, Ali Rasab Lubis, said investigators had named three suspects in the alleged corruption case of the PSR program.
"Until now, investigators have examined 464 witnesses and four experts. Witnesses are related parties in the people's palm oil rejuvenation program in Aceh Jaya Regency," said Ali Rasab Lubis, quoted by ANTARA, Friday, August 22.
Of the hundreds of witnesses, he said, 382 of them were from the community or plantations who were proposed to receive the PSR program. The following are four people from the Palm Oil Plantation Fund Management Agency (BPDPKS).
Furthermore, 40 witnesses from the Aceh Jaya District Agriculture Service, a witness from the Aceh Plantation Service, one witness from the Indonesian Ministry of Transmigration, was a witness from the Aceh Transmigration Service.
"As well as four witnesses from the Indonesian Ministry of Agriculture, as many as 40 witnesses from the Aceh Jaya District Agriculture Service, 14 witnesses from village and sub-district officials, six from cooperatives, and 12 witnesses from partners or providers," said Ali Rasab Lubis.
Previously, Aceh Attorney General's Office investigators named three names as suspects for alleged corruption in the PSR program for the 2019 to 2023 fiscal years with state losses reaching Rp38.4 billion.
The three of them are with the initials S as Chair of the Aceh Jaya Regency Mangate Agricultural Cooperative. S also served as a member of the Aceh Jaya DPRK for the 2024-2024 period.
Next, TM as Head of the Aceh Jaya Regency Agriculture Service from 2017 to 2020 as well as Acting (Plt) Head of the Aceh Jaya Regency Agriculture Service from 2023 to 2024.
As well as TR as the Head of the Aceh Jaya Regency Agriculture Service from March 2021 to 2023. TR is currently the Regional Secretary of Aceh Jaya Regency.
Now, the three suspects are being held at the Class IIB Banda Aceh Detention Center. In addition to detaining the suspects, investigators also confiscated more than IDR 17 billion as evidence. VOI
---------
Ministry of Forestry steps in to curb mangrove forest encroachment in Aceh
Jakarta (ANTARA) - The Ministry of Forestry has halted the encroachment of 500 hectares of mangrove forest for oil palm plantations in Kuala Genting Village, Aceh Tamiang District, Aceh.
The ministry's Director General of Law Enforcement, Dwi Januanto Nugroho, on Friday, noted that such an encroachment action was considered detrimental since the mangrove forest ecosystem in Aceh Tamiang is a natural resource that serves important ecological and socio-economic functions.
"From a socio-economic perspective, mangrove forests can provide a source of livelihoods for the community, a tourist destination, and a source of raw materials for various products. This natural resource wealth must be maintained according to its intended function," Nugroho emphasized.
The Sumatra Forestry Law Enforcement Agency revealed the case after receiving public reports of widespread encroachment and destruction of the mangrove ecosystem in Kuala Genting Village.
The head of the Sumatra Forestry Law Enforcement Agency, Hari Novianto, conveyed that his team installed signs indicating supervision and investigation within the area. The sign installation was assisted by personnel from the Aceh Region III Forest Management Unit (KPH) and the Seruway Navy Post.
Field inspections by the team found that the land clearing for new oil palm plantations was carried out from June to August 2025.
Based on witness interviews and forest cover analysis, this encroachment activity for oil palm plantations occurred on approximately 500 hectares of land from 2020 to 2025.
Nugroho said this action involved the use of Cooperatives and a Statement of Physical Control of Land Areas (SPPFBT).
"We have identified several suspected perpetrators and instructed investigators to question witnesses, the perpetrators, and the actors involved in the encroachment," he remarked.
Furthermore, his party had coordinated with the East Aceh Forest Management Unit III (KPH III), the Aceh Tamiang Regional Government, and local law enforcement officials to jointly halt the encroachment on the mangrove forest. Antara News
August 21, 2025
US demand for MSPO certified palm oil to protect Malaysia's market share
KUALA LUMPUR (Aug 20): The Ministry of Plantation and Commodities (KPK) expects the direct impact of the United States (US) market restrictions on the Malaysian palm oil industry to be minimal.
According to the KPK, the main factor contributing to this is the specific characteristics and functions of Malaysian palm oil which has been certified sustainable through the Malaysian Sustainable Palm Oil (MSPO) certification, making it difficult to replace with other oils in the global market.
“Therefore, the level of industry dependence in the US on sustainable palm-based materials is high,” the ministry said on the parliament website in reply to a question from Kamal Ashaari (PN-Kuala Krau) on the government’s short- and medium-term plan for the palm oil industry to adapt to the US market.
In 2024, Malaysia exported 191,231 tonnes of palm oil to the US. This value was only 1.1 per cent of the country’s total palm oil exports for the year.
At the same time, the KPK said the government remains committed to providing various forms of aid, particularly for smallholders.
Among which are the Oil Palm Smallholders Replanting Financing Incentive Programme as well as special grants such as the supply of products for the control of ganoderma stem rot disease to assist smallholders.
“This type of assistance can help to reduce the impact on smallholders in Malaysia from changes in international trade policies,” it added. – Bernama/ The Borneo Post
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India’s Purchases of Malaysian Palm Oil Surge in July
KUALA LUMPUR: India’s palm oil imports from Malaysia surged 16% in July 2025 to 301,000 tonnes, the highest in nine months, even as Malaysia’s palm oil inventories climbed to a 19-month high of 2.11 million tonnes on slower pace of exports, said Malaysian Palm Oil Council (MPOC).
In a statement yesterday, it said demand from India is expected to remain firm in September as importers stock up ahead of Diwali. Sub-Saharan Africa is also projected to maintain steady imports of about 300,000 tonnes, providing additional support for exports.
“Although Malaysian palm oil stocks have been rising since February, supply pressure remains limited. At the same time, Indonesia’s biodiesel programme remains on track, consuming more than 1 million tonnes of palm oil monthly since February, preventing a stock built-up in the country, said MPOC.
The council said the biofuel market has exerted a strong influence on vegetable oil market in July and August.
Rising US domestic feedstock requirements have pushed US soybean oil prices to a significant premium in August – US$131 per tonne above Argentine soybean oil and US$148 per tonne above Malaysian palm olein. The strength in US soybean oil prices has lifted the broader vegetable oils complex.
Looking ahead, the USDA projects that 52% of US soybean oil production will be used domestically for biodiesel in 2026, rising by 1.5 million tonnes (26.7%) to 7 million tonnes. This surge in domestic use will sharply reduce export availability. US soybean oil exports are forecast to drop from 1.15 million tonnes in 2025 to just 310,000 tonnes in 2026.
Brazil’s soybean oil exports may also struggle to expand despite record soybean harvests and higher crushing volumes, as the country raised its mandatory biodiesel blend from 14% to 15% on Aug 1. As a result, the global market will increasingly rely on Argentine supplies to cover the shortfall. This tightening in export availability is likely to support vegetable oil prices, including palm oil.
Indonesia is also considering raising its biodiesel mandate to B50 in 2026. If implemented, the policy would require about 16 million tonnes of palm oil annually for blending, up 3 million tonnes from an estimated 13 million tonnes in 2025. However, global palm oil output is projected to grow only by 1.6 million tonnes in 2026 to 83.1 million tonnes, with most of the increase coming from Indonesia, according to Oil World. With supply growth lagging behind biodiesel demand, palm oil prices are likely to stay firm.
On the supply side, Malaysia’s production patterns have also shifted. In 2024, Malaysia’s palm oil production peaked unusually early at 1.89 million tonnes in August, compared with the historical peak in October. Peninsular Malaysia recorded an exceptionally strong output in July 2025 of 1.12 million tonnes – the highest July production in a decade and also the highest monthly output for the region in 10 years.
This suggests that Peninsular Malaysia’s production may have already peaked in July or could peak in August, before declining from September onwards. While Sabah and Sarawak have yet to reach their peak months, any downturn in Peninsular Malaysia from September is expected to cap national production growth for the rest of the year. As a result, Malaysia’s palm oil stocks are unlikely to see a major built-up in September and October.
CPO prices have recently soared above RM4,500 per tonne and may remain volatile in weeks ahead. Despite the fluctuations, prices are expected to hold above RM4,300 in the near term.
Tightening soybean oil export availability, combined with the prospect of slower palm oil supply growth relative to biodiesel demand should provide continued support. However, the sustainability of palm oil’s price strength will depend on its competitiveness against soybean oil in the export market. The Sun/MPOC
---------
Unpacking the truth about palm oil consumption
A recent national survey revealed that 37% of Malaysians believe this oil is responsible for higher cholesterol levels. But is it?
KUALA LUMPUR: A recent national survey commissioned by Pertubuhan Transformasi Dayak found that 37% of Malaysians believe palm oil causes high cholesterol. This finding highlights a widespread misconception that should be clarified through better public health communication and science-based education.
While palm oil is often misunderstood and wrongly assumed to contribute to high cholesterol and heart disease, it is a plant-based oil that contains no dietary cholesterol. The assumption that it is harmful likely stems from outdated or oversimplified views on dietary fats.
A comprehensive review published in the National Library of Medicine in 2023 analysed 31 studies involving nearly 2,400 participants. The findings showed that palm oil does not increase the risk of cardiovascular disease when compared to other commonly used vegetable oils such as soybean, olive, or sunflower.
The study also found no significant negative effects on cholesterol levels in healthy individuals.
Palm oil has a balanced fatty acid profile, with approximately 50% saturated fat, 40% monounsaturated (heart-healthy) fats and 10% polyunsaturated fats. This composition can help reduce LDL (bad) cholesterol.
It is also important to recognise that high cholesterol is usually the result of a combination of factors. These include poor diets, lack of physical activity, smoking, stress, inadequate sleep, or genetics.
Singling out palm oil oversimplifies a complex issue and distracts from the more significant contributors to cardiovascular risk.
Palm oil is widely used in Malaysian households. It is locally produced, widely used, and economically important. It is also affordable and accessible to the majority of households.
When used in moderation as part of a balanced diet, palm oil does not pose any health risks.
As we continue to encourage healthy lifestyles, we must ensure our public messaging reflects current scientific understanding. Outdated assumptions should not guide how we view food and health; instead, a more informed, balanced conversation around nutrition should be fostered.
Malaysians are also urged to shift the focus from blame to balance. Instead singling out an ingredient, look at overall lifestyles, including diets, activity levels, stress, and habits.
It is equally important for policymakers, educators, and healthcare professionals to come together and strengthen public understanding. When we ground our decisions in science instead of speculation, we make real progress in improving heart health. FMT
---------
India-Gujarat leads in oil palm drive with over 1,000 MT annual production
Gandhinagar, Aug 20 (IANS) With annual production crossing 1,000 metric tonnes of palm oil, Gujarat has emerged as a leading state in the implementation of the National Mission on Edible Oil–Oil Palm (NMEO-OP). Agriculture Minister Raghavji Patel said that more than 150 farmers in Gujarat have adopted oil palm cultivation and are reaping economic benefits.
The state government has so far disbursed Rs 122 lakh in financial assistance to farmers under various components of NMEO-OP since 2021. This includes support for planting material, crop maintenance for four years, inter-cropping, borewells or pump sets, as well as tools for harvesting and mini-tractors.
Officials said planting material of the high-yielding tenera variety is being supplied through approved agencies, while farmers are also being trained in scientific cultivation practices, pest management, and harvesting techniques.
As part of the Mega Oil Palm Plantation Drive, Gujarat has already brought 235 hectares under new plantation this year, and the total area under fresh cultivation is expected to reach 1,000 hectares by the end of 2025.
Over the last decade, farmers in the state have planted oil palm on nearly 5,000 hectares, which has pushed Gujarat to seventh place nationally in palm oil output.
Palm oil is the world’s most widely used edible oil, valued for its long shelf life and affordability. In India, it is widely used in processed foods as well as in household cooking. Beyond food, palm oil derivatives are also critical in biofuels, pharmaceuticals, soaps, shampoos, and cosmetics.
With palm trees yielding fruit for almost 30 years after planting, farmers are ensured long-term, steady income.
Minister Patel said farmers’ fresh fruit bunches (FFB) are purchased by associated companies under buy-back arrangements, with prices linked to international market rates. Officials noted that government subsidies are structured to make oil palm cultivation financially viable.
Farmers receive Rs 20,000 per hectare for domestic saplings and Rs 29,000 per hectare for imported ones. They are also eligible for Rs 42,000 per hectare in crop maintenance support over four years, up to Rs 50,000 for borewells or pump sets, and assistance for harvest tools such as oil palm cutters, motorized chisels, portable ladders, and chaff cutters.
In addition, those cultivating more than 0.5 hectares for over three years can claim up to Rs 2 lakh for mini-tractors and trolleys. Ianslive
---------
Presco’s expansion plans to save FX, cut edible oil import by 40%
Presco Plc is ramping up plans to further expand its footprint across West Africa in a move that could save the country its scarce FX and potentially cut the import of edible oil and fat by 40 percent in Nigeria and 30 percent in Ghana.
“We’ll be saving the country a lot of foreign exchange due to import substitution,” said Felix O. Nwabuko, the Group CEO, SIAT Group, the parent company of Presco while addressing journalists after 2024’s Annual General Meeting held Tuesday in Lagos.
Nwabuko explained that a shortage of palm oil needed for food industries has seen an influx of the product’s imports to the tune of $600 million annually.
Read also: United Capital, Presco’s profit margin jump the most in H1
He believes Presco’s expansion strategy will mean “less and less will be imported” thereby saving the naira from undue pressure.
Presco announced the acquisition of Ghana Oil Palm Development Company Limited (GOPDC) and Saro Oil Palm in a total deal worth $171.6 million in a race to meet its broader expansion strategy and deepen market penetration.
In pursuit of sustained regional leadership, the company has set a new target to triple its area under cultivation and diversify its customer base to capture a larger share of Africa’s edible oils and fat market.
This growth strategy is designed to address a regional challenge of food security and drive shareholder value.
It also represents the first phase of its expansion roadmap and provides a strong foundation for regional scale, operational synergies and long-term profitability. Business TodayNG
US demand for MSPO certified palm oil to protect Malaysia's market share
KUALA LUMPUR (Aug 20): The Ministry of Plantation and Commodities (KPK) expects the direct impact of the United States (US) market restrictions on the Malaysian palm oil industry to be minimal.
According to the KPK, the main factor contributing to this is the specific characteristics and functions of Malaysian palm oil which has been certified sustainable through the Malaysian Sustainable Palm Oil (MSPO) certification, making it difficult to replace with other oils in the global market.
“Therefore, the level of industry dependence in the US on sustainable palm-based materials is high,” the ministry said on the parliament website in reply to a question from Kamal Ashaari (PN-Kuala Krau) on the government’s short- and medium-term plan for the palm oil industry to adapt to the US market.
In 2024, Malaysia exported 191,231 tonnes of palm oil to the US. This value was only 1.1 per cent of the country’s total palm oil exports for the year.
At the same time, the KPK said the government remains committed to providing various forms of aid, particularly for smallholders.
Among which are the Oil Palm Smallholders Replanting Financing Incentive Programme as well as special grants such as the supply of products for the control of ganoderma stem rot disease to assist smallholders.
“This type of assistance can help to reduce the impact on smallholders in Malaysia from changes in international trade policies,” it added. – Bernama/ The Borneo Post
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India’s Purchases of Malaysian Palm Oil Surge in July
KUALA LUMPUR: India’s palm oil imports from Malaysia surged 16% in July 2025 to 301,000 tonnes, the highest in nine months, even as Malaysia’s palm oil inventories climbed to a 19-month high of 2.11 million tonnes on slower pace of exports, said Malaysian Palm Oil Council (MPOC).
In a statement yesterday, it said demand from India is expected to remain firm in September as importers stock up ahead of Diwali. Sub-Saharan Africa is also projected to maintain steady imports of about 300,000 tonnes, providing additional support for exports.
“Although Malaysian palm oil stocks have been rising since February, supply pressure remains limited. At the same time, Indonesia’s biodiesel programme remains on track, consuming more than 1 million tonnes of palm oil monthly since February, preventing a stock built-up in the country, said MPOC.
The council said the biofuel market has exerted a strong influence on vegetable oil market in July and August.
Rising US domestic feedstock requirements have pushed US soybean oil prices to a significant premium in August – US$131 per tonne above Argentine soybean oil and US$148 per tonne above Malaysian palm olein. The strength in US soybean oil prices has lifted the broader vegetable oils complex.
Looking ahead, the USDA projects that 52% of US soybean oil production will be used domestically for biodiesel in 2026, rising by 1.5 million tonnes (26.7%) to 7 million tonnes. This surge in domestic use will sharply reduce export availability. US soybean oil exports are forecast to drop from 1.15 million tonnes in 2025 to just 310,000 tonnes in 2026.
Brazil’s soybean oil exports may also struggle to expand despite record soybean harvests and higher crushing volumes, as the country raised its mandatory biodiesel blend from 14% to 15% on Aug 1. As a result, the global market will increasingly rely on Argentine supplies to cover the shortfall. This tightening in export availability is likely to support vegetable oil prices, including palm oil.
Indonesia is also considering raising its biodiesel mandate to B50 in 2026. If implemented, the policy would require about 16 million tonnes of palm oil annually for blending, up 3 million tonnes from an estimated 13 million tonnes in 2025. However, global palm oil output is projected to grow only by 1.6 million tonnes in 2026 to 83.1 million tonnes, with most of the increase coming from Indonesia, according to Oil World. With supply growth lagging behind biodiesel demand, palm oil prices are likely to stay firm.
On the supply side, Malaysia’s production patterns have also shifted. In 2024, Malaysia’s palm oil production peaked unusually early at 1.89 million tonnes in August, compared with the historical peak in October. Peninsular Malaysia recorded an exceptionally strong output in July 2025 of 1.12 million tonnes – the highest July production in a decade and also the highest monthly output for the region in 10 years.
This suggests that Peninsular Malaysia’s production may have already peaked in July or could peak in August, before declining from September onwards. While Sabah and Sarawak have yet to reach their peak months, any downturn in Peninsular Malaysia from September is expected to cap national production growth for the rest of the year. As a result, Malaysia’s palm oil stocks are unlikely to see a major built-up in September and October.
CPO prices have recently soared above RM4,500 per tonne and may remain volatile in weeks ahead. Despite the fluctuations, prices are expected to hold above RM4,300 in the near term.
Tightening soybean oil export availability, combined with the prospect of slower palm oil supply growth relative to biodiesel demand should provide continued support. However, the sustainability of palm oil’s price strength will depend on its competitiveness against soybean oil in the export market. The Sun/MPOC
---------
Unpacking the truth about palm oil consumption
A recent national survey revealed that 37% of Malaysians believe this oil is responsible for higher cholesterol levels. But is it?
KUALA LUMPUR: A recent national survey commissioned by Pertubuhan Transformasi Dayak found that 37% of Malaysians believe palm oil causes high cholesterol. This finding highlights a widespread misconception that should be clarified through better public health communication and science-based education.
While palm oil is often misunderstood and wrongly assumed to contribute to high cholesterol and heart disease, it is a plant-based oil that contains no dietary cholesterol. The assumption that it is harmful likely stems from outdated or oversimplified views on dietary fats.
A comprehensive review published in the National Library of Medicine in 2023 analysed 31 studies involving nearly 2,400 participants. The findings showed that palm oil does not increase the risk of cardiovascular disease when compared to other commonly used vegetable oils such as soybean, olive, or sunflower.
The study also found no significant negative effects on cholesterol levels in healthy individuals.
Palm oil has a balanced fatty acid profile, with approximately 50% saturated fat, 40% monounsaturated (heart-healthy) fats and 10% polyunsaturated fats. This composition can help reduce LDL (bad) cholesterol.
It is also important to recognise that high cholesterol is usually the result of a combination of factors. These include poor diets, lack of physical activity, smoking, stress, inadequate sleep, or genetics.
Singling out palm oil oversimplifies a complex issue and distracts from the more significant contributors to cardiovascular risk.
Palm oil is widely used in Malaysian households. It is locally produced, widely used, and economically important. It is also affordable and accessible to the majority of households.
When used in moderation as part of a balanced diet, palm oil does not pose any health risks.
As we continue to encourage healthy lifestyles, we must ensure our public messaging reflects current scientific understanding. Outdated assumptions should not guide how we view food and health; instead, a more informed, balanced conversation around nutrition should be fostered.
Malaysians are also urged to shift the focus from blame to balance. Instead singling out an ingredient, look at overall lifestyles, including diets, activity levels, stress, and habits.
It is equally important for policymakers, educators, and healthcare professionals to come together and strengthen public understanding. When we ground our decisions in science instead of speculation, we make real progress in improving heart health. FMT
---------
India-Gujarat leads in oil palm drive with over 1,000 MT annual production
Gandhinagar, Aug 20 (IANS) With annual production crossing 1,000 metric tonnes of palm oil, Gujarat has emerged as a leading state in the implementation of the National Mission on Edible Oil–Oil Palm (NMEO-OP). Agriculture Minister Raghavji Patel said that more than 150 farmers in Gujarat have adopted oil palm cultivation and are reaping economic benefits.
The state government has so far disbursed Rs 122 lakh in financial assistance to farmers under various components of NMEO-OP since 2021. This includes support for planting material, crop maintenance for four years, inter-cropping, borewells or pump sets, as well as tools for harvesting and mini-tractors.
Officials said planting material of the high-yielding tenera variety is being supplied through approved agencies, while farmers are also being trained in scientific cultivation practices, pest management, and harvesting techniques.
As part of the Mega Oil Palm Plantation Drive, Gujarat has already brought 235 hectares under new plantation this year, and the total area under fresh cultivation is expected to reach 1,000 hectares by the end of 2025.
Over the last decade, farmers in the state have planted oil palm on nearly 5,000 hectares, which has pushed Gujarat to seventh place nationally in palm oil output.
Palm oil is the world’s most widely used edible oil, valued for its long shelf life and affordability. In India, it is widely used in processed foods as well as in household cooking. Beyond food, palm oil derivatives are also critical in biofuels, pharmaceuticals, soaps, shampoos, and cosmetics.
With palm trees yielding fruit for almost 30 years after planting, farmers are ensured long-term, steady income.
Minister Patel said farmers’ fresh fruit bunches (FFB) are purchased by associated companies under buy-back arrangements, with prices linked to international market rates. Officials noted that government subsidies are structured to make oil palm cultivation financially viable.
Farmers receive Rs 20,000 per hectare for domestic saplings and Rs 29,000 per hectare for imported ones. They are also eligible for Rs 42,000 per hectare in crop maintenance support over four years, up to Rs 50,000 for borewells or pump sets, and assistance for harvest tools such as oil palm cutters, motorized chisels, portable ladders, and chaff cutters.
In addition, those cultivating more than 0.5 hectares for over three years can claim up to Rs 2 lakh for mini-tractors and trolleys. Ianslive
---------
Presco’s expansion plans to save FX, cut edible oil import by 40%
Presco Plc is ramping up plans to further expand its footprint across West Africa in a move that could save the country its scarce FX and potentially cut the import of edible oil and fat by 40 percent in Nigeria and 30 percent in Ghana.
“We’ll be saving the country a lot of foreign exchange due to import substitution,” said Felix O. Nwabuko, the Group CEO, SIAT Group, the parent company of Presco while addressing journalists after 2024’s Annual General Meeting held Tuesday in Lagos.
Nwabuko explained that a shortage of palm oil needed for food industries has seen an influx of the product’s imports to the tune of $600 million annually.
Read also: United Capital, Presco’s profit margin jump the most in H1
He believes Presco’s expansion strategy will mean “less and less will be imported” thereby saving the naira from undue pressure.
Presco announced the acquisition of Ghana Oil Palm Development Company Limited (GOPDC) and Saro Oil Palm in a total deal worth $171.6 million in a race to meet its broader expansion strategy and deepen market penetration.
In pursuit of sustained regional leadership, the company has set a new target to triple its area under cultivation and diversify its customer base to capture a larger share of Africa’s edible oils and fat market.
This growth strategy is designed to address a regional challenge of food security and drive shareholder value.
It also represents the first phase of its expansion roadmap and provides a strong foundation for regional scale, operational synergies and long-term profitability. Business TodayNG
August 20, 2025
WUR study shows oil palm is the most land-efficient crop despite higher emissions
20 Aug 2025 | By Insha Naureen
Palm oil, one of the world’s most traded vegetable oils, has been a controversial food ingredient due to its links with deforestation and greenhouse gas (GHG) emissions. However, a new study by Wageningen University & Research (WUR) reveals that it significantly outperforms both soybean and rapeseed oils across critical sustainability metrics such as efficiency and economic impact.
The researchers compared the contributions of palm oil in Indonesia, soybean oil in Brazil, and rapeseed oil in Germany until 2030/2040 for achieving the UN’s Sustainable Development Goals.
The findings highlight that palm oil remains the most land-efficient crop, with more than double the yield of soybean and rapeseed under ambitious 2040 scenarios. However, it leads to higher GHG emissions due to peatland cultivation and methane emissions from processing waste.
In contrast, rapeseed is the lowest-emitting option, while soybean shows the largest potential for yield improvement by 2040 under ambitious sustainability measures.
Food Ingredients First speaks with the study’s authors, Dr. Ir. H. Wolter Elbersen, senior researcher biomass supply and sustainable production chains, and Maja Slingerland, associate professor, Plant Production Systems at WUR, to understand how the study challenges conventional views on palm oil’s sustainability.
“The results show that oil palm is a very productive crop. This implies that replacing palm oil by another vegetable oil crop will likely require more land,” says Elbersen. “It also shows the importance of making good use of all products these crops produce.” Food Ingredients First
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Nigeria Targets N2.41trn Palm Oil Output As Imports Slump 77%
Nigeria palm oil production output is expected to reach N2.41 trillion ($1.61 billion) before the end of the year as imports slumped by 77 per cent between March and June 2025. Findings revealed that imports from Malaysia had decreased from $32 million in March to $7.47 million in June, following soaring price of the produce in the global market as consumption grow 4.6 per centy/y to 2 million tonnes, widening the supply gap to 450,000 tonnes.
It was gathered in June, shipments was valued at $7.47 million; May, $8 million, April, $15.36 million; March, $32 million; February, $23 million and January, $20 million as a tonne is sold at $1,072. Last month, the Plantation Owners Forum of Nigeria (POFN) has said that the price of palm oil would remain stable all year round in order to ensure that both the wealthy and the nottoo-wealthy were able to purchase the product for their daily needs.
The Chairman of the association, Mr. Emmanuel Ibru, noted that the prices for palm oil would be stabilised throughout the year in the country, irrespective of the production seasons. He noted that POFON was interested in making sure that prices of palm oil remain stable.
He said: “In Nigeria we have two seasons for palm oil. When it is peak season, the prices will go down, and when it is lean season, the prices will go up. “Our members are trying to see what they can do this time around to stabilise the prices so that there is not much difference between the peak and lean seasons prices.”
Recall that the National President of National Palm Produce Association of Nigeria (NPPAN), Amb. Alphonsus Inyang, called for the council’s support in the area of technological transfer, capacity building and provision of hybrid inputs to enhance production capacity of smallholder farmers being the highest producers of oil palm in the country.
He called for the formation of global alliance of smallholder farmers to enable them has a unified voice globally towards policy makers and implementers on issues affecting them. Inyang said: “The alliance is purposely to share knowledge; information that bothers on the challenges they face in the industry’s growth and aspiration for prosperity. New Telegraph NG
WUR study shows oil palm is the most land-efficient crop despite higher emissions
20 Aug 2025 | By Insha Naureen
Palm oil, one of the world’s most traded vegetable oils, has been a controversial food ingredient due to its links with deforestation and greenhouse gas (GHG) emissions. However, a new study by Wageningen University & Research (WUR) reveals that it significantly outperforms both soybean and rapeseed oils across critical sustainability metrics such as efficiency and economic impact.
The researchers compared the contributions of palm oil in Indonesia, soybean oil in Brazil, and rapeseed oil in Germany until 2030/2040 for achieving the UN’s Sustainable Development Goals.
The findings highlight that palm oil remains the most land-efficient crop, with more than double the yield of soybean and rapeseed under ambitious 2040 scenarios. However, it leads to higher GHG emissions due to peatland cultivation and methane emissions from processing waste.
In contrast, rapeseed is the lowest-emitting option, while soybean shows the largest potential for yield improvement by 2040 under ambitious sustainability measures.
Food Ingredients First speaks with the study’s authors, Dr. Ir. H. Wolter Elbersen, senior researcher biomass supply and sustainable production chains, and Maja Slingerland, associate professor, Plant Production Systems at WUR, to understand how the study challenges conventional views on palm oil’s sustainability.
“The results show that oil palm is a very productive crop. This implies that replacing palm oil by another vegetable oil crop will likely require more land,” says Elbersen. “It also shows the importance of making good use of all products these crops produce.” Food Ingredients First
---------
Nigeria Targets N2.41trn Palm Oil Output As Imports Slump 77%
Nigeria palm oil production output is expected to reach N2.41 trillion ($1.61 billion) before the end of the year as imports slumped by 77 per cent between March and June 2025. Findings revealed that imports from Malaysia had decreased from $32 million in March to $7.47 million in June, following soaring price of the produce in the global market as consumption grow 4.6 per centy/y to 2 million tonnes, widening the supply gap to 450,000 tonnes.
It was gathered in June, shipments was valued at $7.47 million; May, $8 million, April, $15.36 million; March, $32 million; February, $23 million and January, $20 million as a tonne is sold at $1,072. Last month, the Plantation Owners Forum of Nigeria (POFN) has said that the price of palm oil would remain stable all year round in order to ensure that both the wealthy and the nottoo-wealthy were able to purchase the product for their daily needs.
The Chairman of the association, Mr. Emmanuel Ibru, noted that the prices for palm oil would be stabilised throughout the year in the country, irrespective of the production seasons. He noted that POFON was interested in making sure that prices of palm oil remain stable.
He said: “In Nigeria we have two seasons for palm oil. When it is peak season, the prices will go down, and when it is lean season, the prices will go up. “Our members are trying to see what they can do this time around to stabilise the prices so that there is not much difference between the peak and lean seasons prices.”
Recall that the National President of National Palm Produce Association of Nigeria (NPPAN), Amb. Alphonsus Inyang, called for the council’s support in the area of technological transfer, capacity building and provision of hybrid inputs to enhance production capacity of smallholder farmers being the highest producers of oil palm in the country.
He called for the formation of global alliance of smallholder farmers to enable them has a unified voice globally towards policy makers and implementers on issues affecting them. Inyang said: “The alliance is purposely to share knowledge; information that bothers on the challenges they face in the industry’s growth and aspiration for prosperity. New Telegraph NG
August 18, 2025
Biodiesel Market to Hit $70.9 Billion by 2032 | Renewable Energy Growth & Future Trends
WILMINGTON, DE, UNITED STATES, August 18, 2025 /EINPresswire.com/ --
The Biodiesel Market is witnessing robust growth as the world shifts towards clean, renewable, and sustainable fuel alternatives. According to a new report by Allied Market Research, the global biodiesel market was valued at $50.9 billion in 2022 and is projected to reach $70.9 billion by 2032, growing at a CAGR of 3.4% from 2023 to 2032.
Download PDF Brochure: https://www.alliedmarketresearch.com/request-sample/5717
Biodiesel is a renewable, biodegradable fuel manufactured from vegetable oils, animal fats, and recycled cooking oils. Produced through a chemical process called transesterification, biodiesel yields Fatty Acid Methyl Esters (FAME), which can be blended with petroleum diesel in any proportion. Its eco-friendly characteristics, carbon neutrality, and versatility across industries are making biodiesel a key driver in the global energy transition. EIN Presswire
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Oiltek bags new contracts from Malaysia, Indonesia, Pakistan worth RM74.3 million
Its current order book amounts to around RM398.2 million
[SINGAPORE] Integrated process technology and renewable energy solutions provider Oiltek announced on Monday (Aug 18) that it secured new contracts in Malaysia, Pakistan and Indonesia worth RM74.3 million (S$22.7 million).
The new contracts include the design, fabrication and commissioning of a 200 tonnes per day physical refinery plant in Pakistan, an anaerobic digester tank – which operates in the absence of oxygen – for a palm oil-related facility in Malaysia, and a packing line for a texturisation plant in Indonesia.
These result in the group’s cumulative contracts secured to date in FY2025 to amount to around RM136.2 million. Business Times
Biodiesel Market to Hit $70.9 Billion by 2032 | Renewable Energy Growth & Future Trends
WILMINGTON, DE, UNITED STATES, August 18, 2025 /EINPresswire.com/ --
The Biodiesel Market is witnessing robust growth as the world shifts towards clean, renewable, and sustainable fuel alternatives. According to a new report by Allied Market Research, the global biodiesel market was valued at $50.9 billion in 2022 and is projected to reach $70.9 billion by 2032, growing at a CAGR of 3.4% from 2023 to 2032.
Download PDF Brochure: https://www.alliedmarketresearch.com/request-sample/5717
Biodiesel is a renewable, biodegradable fuel manufactured from vegetable oils, animal fats, and recycled cooking oils. Produced through a chemical process called transesterification, biodiesel yields Fatty Acid Methyl Esters (FAME), which can be blended with petroleum diesel in any proportion. Its eco-friendly characteristics, carbon neutrality, and versatility across industries are making biodiesel a key driver in the global energy transition. EIN Presswire
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Oiltek bags new contracts from Malaysia, Indonesia, Pakistan worth RM74.3 million
Its current order book amounts to around RM398.2 million
[SINGAPORE] Integrated process technology and renewable energy solutions provider Oiltek announced on Monday (Aug 18) that it secured new contracts in Malaysia, Pakistan and Indonesia worth RM74.3 million (S$22.7 million).
The new contracts include the design, fabrication and commissioning of a 200 tonnes per day physical refinery plant in Pakistan, an anaerobic digester tank – which operates in the absence of oxygen – for a palm oil-related facility in Malaysia, and a packing line for a texturisation plant in Indonesia.
These result in the group’s cumulative contracts secured to date in FY2025 to amount to around RM136.2 million. Business Times
August 17, 2025
Felcra posts RM178m profit, to disburse RM101m as first interim distributable income
PASIR SALAK (Aug 17): Felcra Bhd has recorded a profit of RM178 million for up to April 2025, showing an increase compared to the previous year.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, who is also the Minister of Rural and Regional Development, stated that of this amount, RM101 million will be distributed to 74,300 participants nationwide in stages starting Sunday.
"I congratulate Felcra Bhd for successfully maintaining a strong performance, with an increase of nearly RM2 million compared to the same period last year. I will be monitoring the profit distribution to all participants across the country," he said at the 2025 First Interim Distributable Profit Declaration Ceremony for Felcra Bhd participant projects, held here on Sunday.
Also present were Deputy Minister of Rural and Regional Development Datuk Rubiah Wang and Felcra Bhd chief executive officer Datuk Idris Lasim.
In addition, Ahmad Zahid said Felcra Bhd continues to make history in strengthening national food security through the commercialisation of Felcra’s MRQ 107 paddy — a local fragrant rice variety that serves as a high-quality alternative to imported fragrant rice. He stated that the Seberang Perak area, covering more than 3,400 hectares and cultivated using modern methods by Felcra, has shown encouraging performance with an average yield reaching eight metric tonnes per hectare annually.
“We expect production to exceed 27,000 metric tonnes of paddy, equivalent to over 16,000 metric tonnes of rice per year, which can meet the needs of thousands of families. Hopefully, this becomes an example for other paddy farmers,” he said.
Meanwhile, Idris said the performance of the first interim distribution for 2025 was influenced by several key factors, including efficient estate management and the implementation of cost-saving measures.
“Through effective approaches in the use of fertilisers, pesticides, and farm inputs, operational costs were reduced by 15%, and yield per hectare increased by 49%,” he said.
Idris also informed that Felcra’s oil palm projects recorded an average net profit increase of 81%.
He emphasised that while profit distribution rates are influenced by crude-palm-oil price trends, improvements in estate performance remain the primary determining factor. Bernama/ The Edge
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Johor Plantations issues RM200m Sustainability Sukuk Wakalah-IMTN
KUALA LUMPUR (Aug 15): Johor Plantations Group Bhd (KL:JPG) has issued the Series 2 Sukuk Wakalah-Islamic Medium Term Notes Programme (IMTN), its inaugural Sustainability Sukuk Wakalah-IMTN, in aggregate of RM200 million in nominal value under the IMTN programme.
In a statement, it said the 10-year sukuk, maturing on Aug 15, 2035, offers a periodic distribution rate of 3.70% per annum.
"The favourable rates achieved in this sukuk issuance reflect the strong investor confidence in JPG.
"The final oversubscription of 4.93 times on the Sustainability Sukuk Wakalah-IMTN during the bookbuilding process underscores robust demand and investor trust in our sustainability commitment and solid operational performance, positioning us well for future growth," it said.
JPG said proceeds from the sukuk issuance shall be utilised to finance the shariah-compliant capital expenditure of JPG’s Integrated Sustainable Palm Oil Complex, an eligible green project under the framework.
Maybank Investment Bank Bhd is the principal adviser and sustainability structuring adviser for the Sukuk Wakalah programmes.
"The joint lead arrangers for the Sukuk Wakalah programmes are CIMB Investment Bank Bhd and Maybank Investment Bank Bhd.
"Meanwhile, Affin Hwang Investment Bank Bhd, AmInvestment Bank Bhd, Bank Islam Malaysia Bhd, CIMB Investment Bank Bhd and Maybank Investment Bank Bhd are the joint lead managers for the Sukuk Wakalah programmes and the sukuk issuance," it said. The Edge
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Industry expert urges rethink of Malaysian taxes on palm oil as fatigue could kill Malaysia's golden goose
Oil palm growers are experiencing a strong upswing. Once overlooked as plain jane on Bursa Malaysia, plantation stocks are now drawing renewed interest. With CPO prices holding steady around RM4,000–RM4,200 per tonne, over half of listed planters are in a net cash position. Dividends are returning, balance sheets are solid and many planters are benefiting from brighter conditions.
The formula? Mature estates, tight cost control and favourable prices. No tech razzle-dazzle, just steady fundamentals. But amid the celebration, a less glamorous guest knocks: taxation. And with profits soaring, so comes the usual refrain – “They’re making money, continue taxing and why not tax them more?” A simple logic, perhaps. But dangerously simplistic.
It is precisely during these profitable upswings that the industry’s tax framework should come under the microscope – not as a protest, but as an act of prudence. After all, it’s far easier to make reforms when the coffers are full and tempers calm. If we wait until the next market downturn, the appetite for reform may vanish just when the sector needs support the most. That’s why I keep returning to this point: it’s not about taxing more or less, but about using this window of prosperity to build the foundations for long-term resilience and competitiveness – again and again.
Oil Palm’s Exclusive and Unique Taxes
Ever wondered what Malaysian oil palm growers really pay in taxes? The answer is as layered as the oil palm fruit bunch itself. Compared to sectors like manufacturing, plantation businesses face a heavier tax structure on top of income tax, they also pay MPOB cess, windfall levy (WPL) and state sales taxes (SST). While manufacturers may have higher recruitment costs, they enjoy generous tax incentives and allowances – benefits largely unavailable to planters. The Borneo Post
Felcra posts RM178m profit, to disburse RM101m as first interim distributable income
PASIR SALAK (Aug 17): Felcra Bhd has recorded a profit of RM178 million for up to April 2025, showing an increase compared to the previous year.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, who is also the Minister of Rural and Regional Development, stated that of this amount, RM101 million will be distributed to 74,300 participants nationwide in stages starting Sunday.
"I congratulate Felcra Bhd for successfully maintaining a strong performance, with an increase of nearly RM2 million compared to the same period last year. I will be monitoring the profit distribution to all participants across the country," he said at the 2025 First Interim Distributable Profit Declaration Ceremony for Felcra Bhd participant projects, held here on Sunday.
Also present were Deputy Minister of Rural and Regional Development Datuk Rubiah Wang and Felcra Bhd chief executive officer Datuk Idris Lasim.
In addition, Ahmad Zahid said Felcra Bhd continues to make history in strengthening national food security through the commercialisation of Felcra’s MRQ 107 paddy — a local fragrant rice variety that serves as a high-quality alternative to imported fragrant rice. He stated that the Seberang Perak area, covering more than 3,400 hectares and cultivated using modern methods by Felcra, has shown encouraging performance with an average yield reaching eight metric tonnes per hectare annually.
“We expect production to exceed 27,000 metric tonnes of paddy, equivalent to over 16,000 metric tonnes of rice per year, which can meet the needs of thousands of families. Hopefully, this becomes an example for other paddy farmers,” he said.
Meanwhile, Idris said the performance of the first interim distribution for 2025 was influenced by several key factors, including efficient estate management and the implementation of cost-saving measures.
“Through effective approaches in the use of fertilisers, pesticides, and farm inputs, operational costs were reduced by 15%, and yield per hectare increased by 49%,” he said.
Idris also informed that Felcra’s oil palm projects recorded an average net profit increase of 81%.
He emphasised that while profit distribution rates are influenced by crude-palm-oil price trends, improvements in estate performance remain the primary determining factor. Bernama/ The Edge
---------
Johor Plantations issues RM200m Sustainability Sukuk Wakalah-IMTN
KUALA LUMPUR (Aug 15): Johor Plantations Group Bhd (KL:JPG) has issued the Series 2 Sukuk Wakalah-Islamic Medium Term Notes Programme (IMTN), its inaugural Sustainability Sukuk Wakalah-IMTN, in aggregate of RM200 million in nominal value under the IMTN programme.
In a statement, it said the 10-year sukuk, maturing on Aug 15, 2035, offers a periodic distribution rate of 3.70% per annum.
"The favourable rates achieved in this sukuk issuance reflect the strong investor confidence in JPG.
"The final oversubscription of 4.93 times on the Sustainability Sukuk Wakalah-IMTN during the bookbuilding process underscores robust demand and investor trust in our sustainability commitment and solid operational performance, positioning us well for future growth," it said.
JPG said proceeds from the sukuk issuance shall be utilised to finance the shariah-compliant capital expenditure of JPG’s Integrated Sustainable Palm Oil Complex, an eligible green project under the framework.
Maybank Investment Bank Bhd is the principal adviser and sustainability structuring adviser for the Sukuk Wakalah programmes.
"The joint lead arrangers for the Sukuk Wakalah programmes are CIMB Investment Bank Bhd and Maybank Investment Bank Bhd.
"Meanwhile, Affin Hwang Investment Bank Bhd, AmInvestment Bank Bhd, Bank Islam Malaysia Bhd, CIMB Investment Bank Bhd and Maybank Investment Bank Bhd are the joint lead managers for the Sukuk Wakalah programmes and the sukuk issuance," it said. The Edge
---------
Industry expert urges rethink of Malaysian taxes on palm oil as fatigue could kill Malaysia's golden goose
Oil palm growers are experiencing a strong upswing. Once overlooked as plain jane on Bursa Malaysia, plantation stocks are now drawing renewed interest. With CPO prices holding steady around RM4,000–RM4,200 per tonne, over half of listed planters are in a net cash position. Dividends are returning, balance sheets are solid and many planters are benefiting from brighter conditions.
The formula? Mature estates, tight cost control and favourable prices. No tech razzle-dazzle, just steady fundamentals. But amid the celebration, a less glamorous guest knocks: taxation. And with profits soaring, so comes the usual refrain – “They’re making money, continue taxing and why not tax them more?” A simple logic, perhaps. But dangerously simplistic.
It is precisely during these profitable upswings that the industry’s tax framework should come under the microscope – not as a protest, but as an act of prudence. After all, it’s far easier to make reforms when the coffers are full and tempers calm. If we wait until the next market downturn, the appetite for reform may vanish just when the sector needs support the most. That’s why I keep returning to this point: it’s not about taxing more or less, but about using this window of prosperity to build the foundations for long-term resilience and competitiveness – again and again.
Oil Palm’s Exclusive and Unique Taxes
Ever wondered what Malaysian oil palm growers really pay in taxes? The answer is as layered as the oil palm fruit bunch itself. Compared to sectors like manufacturing, plantation businesses face a heavier tax structure on top of income tax, they also pay MPOB cess, windfall levy (WPL) and state sales taxes (SST). While manufacturers may have higher recruitment costs, they enjoy generous tax incentives and allowances – benefits largely unavailable to planters. The Borneo Post
August 16, 2025
Indonesian President Prabowo targets corruption, resources to drive growth
“The strength of a nation lies in its ability to control and manage its wealth,” he told lawmakers
[JAKARTA] Indonesian President Prabowo Subianto said he will use the power of the state to root out corruption and direct resources to social programmes, which he believes will drive growth in South-east Asia’s biggest economy.
The former general, speaking in his first State of the Nation address on Friday (Aug 15), touted targeting “illegal” palm oil estates and mines, as well as officials and companies suspected of corruption.
“The strength of a nation lies in its ability to control and manage its wealth,” he told lawmakers. “I am obligated to take the necessary steps, even if they are difficult and unpopular with certain people. I must take steps to save the nation’s wealth so that it can be used for the benefit of the nation today and tomorrow.”
“And I’m giving a warning,” he said later in the speech, “whether you are powerful individuals, strong figures, generals from any branch of the military or police or former generals, there is no excuse, we will act on behalf of the people.”
Prabowo rose to power last year in his third presidential bid, a landslide win on promises to carry forward the policies of his predecessor, Joko Widodo. But while Widodo’s decade in office was defined by massive infrastructure projects, Prabowo has made welfare and social programmes the centrepiece of his growth strategy.
Since taking office in October, Prabowo has moved quickly to reshape the state’s role in the economy and politics. That has included a greater role for the military in civilian government and state projects, and the launch of a sovereign wealth fund, Danantara, designed to draw new investment and manage the country’s sprawling state enterprises. Business Times
---------
China's Agri-food company Mainland to Invest $100 Million in Liberia's Agribusiness, Boosting Local Farmers
• China’s Mainland to invest $100M in Liberia's agriculture
• Projects include rice, cassava, cocoa, and food logistics
• Plan targets 150,000 farmers, boosts incomes up to 30%
Chinese agri-food group Mainland plans to invest $100 million in Liberia's agricultural sector starting in 2025, according to a statement released on the Ministry of Agriculture's website on Wednesday.
The investment will fund specific projects across six key segments: cassava processing into starch, cocoa and coffee processing, rice milling, sugar production, and food logistics.
The company “plans to open a rice processing plant at a 1,000-hectare site in Fuamah, Bong County, by September or October 2025, to help farmers access markets. A cassava processing facility is also planned. Cocoa processing will start in February or March next year, adding value to a crop currently exported raw,” the statement said.
According to Minister of Agriculture Alexander Nuetah, these projects are expected to revitalize the agricultural sector and improve food security and farmer incomes by creating new markets for agricultural products.
"All of these projects will increase farmers’ income by 20 to 30%. Our target is to engage more than 150,000 ordinary farmers in the next five years. Additionally, we will expand the industry and plantations year by year, growing our own plantations and those of the communities," said Zhu Chen, CEO of Mainland.
For the Chinese group, these new projects in Liberia will also expand its presence in the African agri-food industry. Mainland already operates five natural rubber processing plants and a palm oil unit in Ivory Coast. Since 2024, the company has also operated a sunflower oil production unit in Tanzania. Ecofin Agency
---------
Cocoa and coffee farmers facing trade chaos as Brussels pushes deforestation crackdown
Smallholders to be hit hardest as EU and ‘Big Chocolate’ resolve to impose new traceability rules next year
Africa’s cocoa and coffee farmers are stepping up pressure on the European Commission to postpone its anti-deforestation law due to come into force next year. They are calling for another year’s delay. It is the latest clash between the European Union’s pro-environmental policies – protecting rain forests and carbon sinks and discouraging new fossil fuel exploitation – against the urgent imperatives of developing economies. Africa Confidential
Indonesian President Prabowo targets corruption, resources to drive growth
“The strength of a nation lies in its ability to control and manage its wealth,” he told lawmakers
[JAKARTA] Indonesian President Prabowo Subianto said he will use the power of the state to root out corruption and direct resources to social programmes, which he believes will drive growth in South-east Asia’s biggest economy.
The former general, speaking in his first State of the Nation address on Friday (Aug 15), touted targeting “illegal” palm oil estates and mines, as well as officials and companies suspected of corruption.
“The strength of a nation lies in its ability to control and manage its wealth,” he told lawmakers. “I am obligated to take the necessary steps, even if they are difficult and unpopular with certain people. I must take steps to save the nation’s wealth so that it can be used for the benefit of the nation today and tomorrow.”
“And I’m giving a warning,” he said later in the speech, “whether you are powerful individuals, strong figures, generals from any branch of the military or police or former generals, there is no excuse, we will act on behalf of the people.”
Prabowo rose to power last year in his third presidential bid, a landslide win on promises to carry forward the policies of his predecessor, Joko Widodo. But while Widodo’s decade in office was defined by massive infrastructure projects, Prabowo has made welfare and social programmes the centrepiece of his growth strategy.
Since taking office in October, Prabowo has moved quickly to reshape the state’s role in the economy and politics. That has included a greater role for the military in civilian government and state projects, and the launch of a sovereign wealth fund, Danantara, designed to draw new investment and manage the country’s sprawling state enterprises. Business Times
---------
China's Agri-food company Mainland to Invest $100 Million in Liberia's Agribusiness, Boosting Local Farmers
• China’s Mainland to invest $100M in Liberia's agriculture
• Projects include rice, cassava, cocoa, and food logistics
• Plan targets 150,000 farmers, boosts incomes up to 30%
Chinese agri-food group Mainland plans to invest $100 million in Liberia's agricultural sector starting in 2025, according to a statement released on the Ministry of Agriculture's website on Wednesday.
The investment will fund specific projects across six key segments: cassava processing into starch, cocoa and coffee processing, rice milling, sugar production, and food logistics.
The company “plans to open a rice processing plant at a 1,000-hectare site in Fuamah, Bong County, by September or October 2025, to help farmers access markets. A cassava processing facility is also planned. Cocoa processing will start in February or March next year, adding value to a crop currently exported raw,” the statement said.
According to Minister of Agriculture Alexander Nuetah, these projects are expected to revitalize the agricultural sector and improve food security and farmer incomes by creating new markets for agricultural products.
"All of these projects will increase farmers’ income by 20 to 30%. Our target is to engage more than 150,000 ordinary farmers in the next five years. Additionally, we will expand the industry and plantations year by year, growing our own plantations and those of the communities," said Zhu Chen, CEO of Mainland.
For the Chinese group, these new projects in Liberia will also expand its presence in the African agri-food industry. Mainland already operates five natural rubber processing plants and a palm oil unit in Ivory Coast. Since 2024, the company has also operated a sunflower oil production unit in Tanzania. Ecofin Agency
---------
Cocoa and coffee farmers facing trade chaos as Brussels pushes deforestation crackdown
Smallholders to be hit hardest as EU and ‘Big Chocolate’ resolve to impose new traceability rules next year
Africa’s cocoa and coffee farmers are stepping up pressure on the European Commission to postpone its anti-deforestation law due to come into force next year. They are calling for another year’s delay. It is the latest clash between the European Union’s pro-environmental policies – protecting rain forests and carbon sinks and discouraging new fossil fuel exploitation – against the urgent imperatives of developing economies. Africa Confidential
August 15, 2025
Indonesia Challenged To Scientifically Prove Biodiesel As Clean Energy
JAKARTA – Indonesia is facing a big challenge to prove that palm oil-based biodiesel is not just a slogan of reducing carbon emissions, but it is truly a sustainable energy solution that can be objectively and scientifically measured.
Edi Wibowo, Director of Bioenergy at the ministry of energy and mineral resources (KESDM) said the credibility of Indonesian biodiesel depends on the capacity to show real and measurable impacts to the reduction of carbon emissions.
“Now, it’s not the time to talk about claims that biodiesel is ecofriendly. We have to prove it scientifically that our palm-based biodiesel is truly sustainable and can compete globally,” Edi told participants of the 10th international conference of Biomass and Bioenergy (ICBB) in Bogor, West Java, on Monday (04/08/2025).
Indonesia’s mandatory program of biodiesel has been claimed to have reduced carbon emissions. The biodiesel 35 percent (B35) program alone is claimed to have reduced emissions up to 34 million tons of CO₂ equivalent per year. “But amid the global pressures on environment and deforestation, such claim needs to be supported by field data, transparancy of supply chain, and recognition from international institutions,” he said.
The Head of Surfactant and Bioenergy Research Center (SBRC), Meika Syahbana RuslI emphasized the importance of synergy between scientists, industrial players, and regulators. “Without collaborations, the green energy transition cannot be achieved and it will be just rethoric,” said Meika.
During the conference, the issue of Sustainable Aviation Fuel (SAF) or bioavtur for airplanes was also discussed by speakers and participants.
Although the International Civil Aviation Organization (ICAO) has given a positive sign of support for the production of SAF based on palm oil and the used cooking oil (UCO), the production of SAF is still facing big challenges in terms of technical aspects, investments, and market acceptability.
Indonesia has abundant source of wastes and palm oil derivative products that can be used as raw material for production of SAF. But such big potential can be just dormant without the support of research activities, funding and adaptive policies from the government.
The Head of Services Division at the Oil Palm Plantation Fund Management Board (BPDPKS), Arfie Thahar, said that his institution is now accelerating the integration of technological research, public policies, and global access.
“If we want our biodiesel and bio-avtur products accepted at the global market, we have to implement a thorough improvement from the level of farmers to the tanks of vehicles. We cannot just rely on the green narrative alone,” said Arfie.
Amid the global pressures on environment and domestic need for clean energy, Indonesia is now entering a crucial point to prove that palm oil-based biodiesel can really become a clean energy product of the future, and not just a biofuel with full of controversy. GAPKI
---------
Indonesia seeks zero US tariffs on cocoa, coffee, palm oil
Jakarta (ANTARA) - The Coordinating Ministry for Economic Affairs has said that the Indonesian government is negotiating zero import tariffs with the United States for commodities such as cocoa, coffee, and palm oil.
The Indonesian negotiation team is continuing to push for tariff elimination for commodities that the US does not produce, the ministry’s secretary, Susiwijono Moegiarso, said.
“We are targeting them to be exempt from the reciprocal tariff. We are negotiating to reduce it (the tariff) to zero percent,” he said in Jakarta on Thursday.
According to the official, Indonesian commodities such as cocoa, coffee, palm oil, and critical minerals have high export value.
He added that the Indonesian government has reached out to the United States Trade Representative (USTR) for further negotiations on commodities that are not produced by the US.
“We have submitted a list of commodities, including cocoa, coffee, palm oil, and all mineral products,” he informed.
President Prabowo Subianto and US President Donald Trump have reached a deal under which Indonesia will pay a 19-percent tariff on every product it exports to the US, while US exports to Indonesia will be exempt from tariff and non-tariff barriers.
With the tariff lowered from 32 percent to 19 percent, Indonesia now has one of the lowest rates in Southeast Asia. However, the tariff is still higher than Singapore’s 10 percent rate.
Earlier, Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that the commodities exempt from import tariffs include copper concentrates and copper cathodes.
This is in line with strategic discussions regarding mineral trade between the two countries. Antara News
---------
Indonesia to crack down on illegal exploitation of resources
The area is almost the size of Switzerland.
Prabowo added that a total of 5 million hectares of palm plantations have been under scrutiny for operating in protected forest areas, not reporting their actual size, or not responding to summons from auditors.
He made the comments in his first state of the nation speech, delivered as the country - the world's largest producer and exporter of palm oil - celebrates 80 years of independence this weekend. Prabowo won a presidential election last year, and took power in October.
"We will ensure that the Indonesian people will not fall victim to greedy economics," Prabowo, speaking in parliament, said, adding that the government had already seized 3.1 million hectares of illegal palm plantations with the help of the military.
"We have used the military to accompany the teams that took over the plantations because there often is resistance," he said. Critics have expressed concern about the growing role of the military in civilian life in the country under Prabowo.
In his speech, Prabowo, a former special forces commander known for his aggressive operational tactics, also warned that the state could confiscate assets of companies that "manipulate and violate" Indonesia's laws.
He said his government was also planning a crackdown on mining, adding that authorities had received reports of as many as 1,063 illegal operations throughout the vast, mineral-rich archipelago.
He did not specify what type of mines or the commodities they were extracting.
Indonesian Palm Oil Association (GAPKI) chief Eddy Martono questioned the source of Prabowo's figures and said his organisation had not been consulted on the 5 million hectares number.
On the 3.7 million hectares of plantations found to be operating unlawfully, he said companies and cooperatives running them had been asked to clarify their status and some had permits such as land-use concessions and ownership certificates.
"It will create a negative image internationally, suggesting that Indonesian palm oil is encroaching on forests," he said.
There was no immediate response from the national association of miners to a Reuters request for comment on the president's assertions.
Indonesia is also the world's biggest producer of nickel and a major producer of thermal coal, tin, and copper.
Prabowo added that the government would take action against businesses found to be hoarding and exploiting key commodities in Indonesia.
Large-scale rice mills would also be forced to obtain government permits to ensure rice quality and affordability, he said.
The main stock index (.JKSE), opens new tab touched its all-time high, rising 1.1%, as Prabowo started his speech, but then retreated to trade 0.1% down by the midday break.
The rupiah , which had strengthened in recent days, also slipped 0.4%. Reuters
---------
Jakarta’s land crackdown brings ‘short-term pain’ but long-term clarity: Golden Agri-Resources
The palm oil giant expects to give an update by end-2025, based on when Indonesia expects to complete its land-use review
[SINGAPORE] Golden Agri-Resources expects “short-term pain” from Indonesia’s sweeping land-use review, but sees the land crackdown as a necessary step that resolves “a legacy issue” of overlapping land tenures and provides businesses with long-term clarity.
During a results briefing on Friday (Aug 15), the vertically integrated palm oil plantation company acknowledged that the ongoing discussions with the Indonesian authorities could lead to adjustments in its land bank.
Anita Neville, the company’s chief sustainability and communications officer, said: “Addressing this legacy issue of overlapping land tenure gives businesses long-term confidence. Of course, getting there requires some of this short-term pain as we go through the review process to determine which bits are in and which bits are out.” Business Times
---------
Presco Seeks Shareholder Approval for US$171.6m Palm Oil Acquisitions in Ghana and Nigeria
Presco Plc has announced plans to strengthen its position in Sub-Saharan Africa through two major transactions worth a combined US$171.64m. The Board is seeking shareholder approval at its Annual General Meeting (AGM) scheduled for Tuesday, August 19, 2025, at Jewel Aeida Event Centre, Lekki, Lagos, to ratify the US$124.93m acquisition of a 100% equity stake in Ghana Oil Palm Development Company Limited (GOPDC) and approve the proposed US$46.71m acquisition of Saro Oil Palm Limited (SOP).
About GOPDC Ghana
Established in 1995, GOPDC operates over 21,000 hectares of oil palm plantations in Ghana’s Eastern Region, with 13,000 hectares developed for cultivation and up to 6,000 outgrowers. Its facilities include a 60 mt/hr palm oil mill, 60 mt/day palm kernel mill, and a 100 mt/day refinery. The company produces over 35,000 tonnes of palm and palm kernel oil annually and employs up to 30,000 people during peak harvests.
About SOP Nigeria
Incorporated in 2019, SOP has developed a 22,500-hectare plantation in Edo State, with 5,000 hectares planted and a target of 8,000 hectares by end-2025. Production of Fresh Fruit Bunches is slated to begin in 2026, with a target of 28,000 tonnes. SOP plans to install two milling units with capacities of 60 tonnes and 30 tonnes per hour Proshare
Indonesia Challenged To Scientifically Prove Biodiesel As Clean Energy
JAKARTA – Indonesia is facing a big challenge to prove that palm oil-based biodiesel is not just a slogan of reducing carbon emissions, but it is truly a sustainable energy solution that can be objectively and scientifically measured.
Edi Wibowo, Director of Bioenergy at the ministry of energy and mineral resources (KESDM) said the credibility of Indonesian biodiesel depends on the capacity to show real and measurable impacts to the reduction of carbon emissions.
“Now, it’s not the time to talk about claims that biodiesel is ecofriendly. We have to prove it scientifically that our palm-based biodiesel is truly sustainable and can compete globally,” Edi told participants of the 10th international conference of Biomass and Bioenergy (ICBB) in Bogor, West Java, on Monday (04/08/2025).
Indonesia’s mandatory program of biodiesel has been claimed to have reduced carbon emissions. The biodiesel 35 percent (B35) program alone is claimed to have reduced emissions up to 34 million tons of CO₂ equivalent per year. “But amid the global pressures on environment and deforestation, such claim needs to be supported by field data, transparancy of supply chain, and recognition from international institutions,” he said.
The Head of Surfactant and Bioenergy Research Center (SBRC), Meika Syahbana RuslI emphasized the importance of synergy between scientists, industrial players, and regulators. “Without collaborations, the green energy transition cannot be achieved and it will be just rethoric,” said Meika.
During the conference, the issue of Sustainable Aviation Fuel (SAF) or bioavtur for airplanes was also discussed by speakers and participants.
Although the International Civil Aviation Organization (ICAO) has given a positive sign of support for the production of SAF based on palm oil and the used cooking oil (UCO), the production of SAF is still facing big challenges in terms of technical aspects, investments, and market acceptability.
Indonesia has abundant source of wastes and palm oil derivative products that can be used as raw material for production of SAF. But such big potential can be just dormant without the support of research activities, funding and adaptive policies from the government.
The Head of Services Division at the Oil Palm Plantation Fund Management Board (BPDPKS), Arfie Thahar, said that his institution is now accelerating the integration of technological research, public policies, and global access.
“If we want our biodiesel and bio-avtur products accepted at the global market, we have to implement a thorough improvement from the level of farmers to the tanks of vehicles. We cannot just rely on the green narrative alone,” said Arfie.
Amid the global pressures on environment and domestic need for clean energy, Indonesia is now entering a crucial point to prove that palm oil-based biodiesel can really become a clean energy product of the future, and not just a biofuel with full of controversy. GAPKI
---------
Indonesia seeks zero US tariffs on cocoa, coffee, palm oil
Jakarta (ANTARA) - The Coordinating Ministry for Economic Affairs has said that the Indonesian government is negotiating zero import tariffs with the United States for commodities such as cocoa, coffee, and palm oil.
The Indonesian negotiation team is continuing to push for tariff elimination for commodities that the US does not produce, the ministry’s secretary, Susiwijono Moegiarso, said.
“We are targeting them to be exempt from the reciprocal tariff. We are negotiating to reduce it (the tariff) to zero percent,” he said in Jakarta on Thursday.
According to the official, Indonesian commodities such as cocoa, coffee, palm oil, and critical minerals have high export value.
He added that the Indonesian government has reached out to the United States Trade Representative (USTR) for further negotiations on commodities that are not produced by the US.
“We have submitted a list of commodities, including cocoa, coffee, palm oil, and all mineral products,” he informed.
President Prabowo Subianto and US President Donald Trump have reached a deal under which Indonesia will pay a 19-percent tariff on every product it exports to the US, while US exports to Indonesia will be exempt from tariff and non-tariff barriers.
With the tariff lowered from 32 percent to 19 percent, Indonesia now has one of the lowest rates in Southeast Asia. However, the tariff is still higher than Singapore’s 10 percent rate.
Earlier, Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that the commodities exempt from import tariffs include copper concentrates and copper cathodes.
This is in line with strategic discussions regarding mineral trade between the two countries. Antara News
---------
Indonesia to crack down on illegal exploitation of resources
- Summary
- 3.7 million hectares of palm plantations unlawful, says Prabowo
- Prabowo warns of asset confiscation for law-violating companies
- Large rice mills to require government permits
- 1,063 illegal mining operations reported across Indonesia: President
The area is almost the size of Switzerland.
Prabowo added that a total of 5 million hectares of palm plantations have been under scrutiny for operating in protected forest areas, not reporting their actual size, or not responding to summons from auditors.
He made the comments in his first state of the nation speech, delivered as the country - the world's largest producer and exporter of palm oil - celebrates 80 years of independence this weekend. Prabowo won a presidential election last year, and took power in October.
"We will ensure that the Indonesian people will not fall victim to greedy economics," Prabowo, speaking in parliament, said, adding that the government had already seized 3.1 million hectares of illegal palm plantations with the help of the military.
"We have used the military to accompany the teams that took over the plantations because there often is resistance," he said. Critics have expressed concern about the growing role of the military in civilian life in the country under Prabowo.
In his speech, Prabowo, a former special forces commander known for his aggressive operational tactics, also warned that the state could confiscate assets of companies that "manipulate and violate" Indonesia's laws.
He said his government was also planning a crackdown on mining, adding that authorities had received reports of as many as 1,063 illegal operations throughout the vast, mineral-rich archipelago.
He did not specify what type of mines or the commodities they were extracting.
Indonesian Palm Oil Association (GAPKI) chief Eddy Martono questioned the source of Prabowo's figures and said his organisation had not been consulted on the 5 million hectares number.
On the 3.7 million hectares of plantations found to be operating unlawfully, he said companies and cooperatives running them had been asked to clarify their status and some had permits such as land-use concessions and ownership certificates.
"It will create a negative image internationally, suggesting that Indonesian palm oil is encroaching on forests," he said.
There was no immediate response from the national association of miners to a Reuters request for comment on the president's assertions.
Indonesia is also the world's biggest producer of nickel and a major producer of thermal coal, tin, and copper.
Prabowo added that the government would take action against businesses found to be hoarding and exploiting key commodities in Indonesia.
Large-scale rice mills would also be forced to obtain government permits to ensure rice quality and affordability, he said.
The main stock index (.JKSE), opens new tab touched its all-time high, rising 1.1%, as Prabowo started his speech, but then retreated to trade 0.1% down by the midday break.
The rupiah , which had strengthened in recent days, also slipped 0.4%. Reuters
---------
Jakarta’s land crackdown brings ‘short-term pain’ but long-term clarity: Golden Agri-Resources
The palm oil giant expects to give an update by end-2025, based on when Indonesia expects to complete its land-use review
[SINGAPORE] Golden Agri-Resources expects “short-term pain” from Indonesia’s sweeping land-use review, but sees the land crackdown as a necessary step that resolves “a legacy issue” of overlapping land tenures and provides businesses with long-term clarity.
During a results briefing on Friday (Aug 15), the vertically integrated palm oil plantation company acknowledged that the ongoing discussions with the Indonesian authorities could lead to adjustments in its land bank.
Anita Neville, the company’s chief sustainability and communications officer, said: “Addressing this legacy issue of overlapping land tenure gives businesses long-term confidence. Of course, getting there requires some of this short-term pain as we go through the review process to determine which bits are in and which bits are out.” Business Times
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Presco Seeks Shareholder Approval for US$171.6m Palm Oil Acquisitions in Ghana and Nigeria
Presco Plc has announced plans to strengthen its position in Sub-Saharan Africa through two major transactions worth a combined US$171.64m. The Board is seeking shareholder approval at its Annual General Meeting (AGM) scheduled for Tuesday, August 19, 2025, at Jewel Aeida Event Centre, Lekki, Lagos, to ratify the US$124.93m acquisition of a 100% equity stake in Ghana Oil Palm Development Company Limited (GOPDC) and approve the proposed US$46.71m acquisition of Saro Oil Palm Limited (SOP).
About GOPDC Ghana
Established in 1995, GOPDC operates over 21,000 hectares of oil palm plantations in Ghana’s Eastern Region, with 13,000 hectares developed for cultivation and up to 6,000 outgrowers. Its facilities include a 60 mt/hr palm oil mill, 60 mt/day palm kernel mill, and a 100 mt/day refinery. The company produces over 35,000 tonnes of palm and palm kernel oil annually and employs up to 30,000 people during peak harvests.
About SOP Nigeria
Incorporated in 2019, SOP has developed a 22,500-hectare plantation in Edo State, with 5,000 hectares planted and a target of 8,000 hectares by end-2025. Production of Fresh Fruit Bunches is slated to begin in 2026, with a target of 28,000 tonnes. SOP plans to install two milling units with capacities of 60 tonnes and 30 tonnes per hour Proshare
August 14, 2025
Ghana targets $2bn palm oil import cut with new RedGold policy
Ghana is advancing plans for a bold agricultural policy aimed at slashing its $2 billion annual palm oil import bill.
This would be achieved by significantly scaling up domestic production and diversifying into high-value tree crops.
The plan outlined in the 2025–2028 Medium-Term Expenditure Framework, includes the rollout of a National Palm Oil Industry Policy, which will support the distribution of 1.5 million oil palm seedlings to farmers.
It is also to promote large-scale out-grower plantation schemes and provide incentives to expand local processing capacity.
The initiative, dubbed the “RedGold” oil palm programme, is expected to catalyse private sector investment, create thousands of jobs across rural Ghana and aligns with the country’s import substitution and agro-industrial transformation agenda.
Despite annual consumption of over 250,000 metric tons, Ghana’s domestic palm oil production currently stands at a mere 50,000 metric tons – a development which creates a major structural gap in the edible oils market.
The new policy seeks to address this imbalance by developing a fully integrated palm oil value chain—from farm to refinery.
The palm oil strategy falls under the broader Ghana Tree Crops Diversification Project (GTCDP), which aims to boost the commercial cultivation of cashew, coconut, rubber, mango and shea, alongside oil palm, to enhance farmer incomes and generate foreign exchange.
In 2025, the government, through the Ghana Tree Crops Development Programme (GTRDP), will procure and supply 5,070,000 seedlings; comprising 2,000,000 cashew, 1,650,000 rubber, and 1,420,000 coconut—for nationwide distribution.
An additional two million seedlings will be provided, including 500,000 shea and 1,500,000 mango, targeting 500,000 farmers across the country. Business Ghana
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Ghana’s US$2 Billion Palm Oil Shift Hinges on Smart Growth, Warns Industry Leader
Ghana’s ambitious plan to slash its $2 billion annual palm oil import bill faces significant hurdles without deeper research, targeted innovation, and a clear market strategy, according to the head of the country’s agribusiness chamber.
Anthony Morrison, CEO of the Chamber of Agribusiness Ghana, supports the government’s goal but cautions that merely expanding farmland won’t guarantee success.
Official figures reveal a stark gap: Ghana produces just 50,000 metric tons of palm oil each year but consumes roughly 250,000 metric tons. This forces heavy reliance on imports, draining foreign exchange.
While the Mahama administration has announced a strategy to boost local production, Morrison stresses that Ghana must avoid the pitfalls seen in major producing nations like Malaysia. He points to their struggles with environmental damage and sustainability issues as critical lessons. Simply planting more trees isn’t the answer.
“What exactly do we want? How do we plan to achieve it, and by when?” Morrison questioned, highlighting the need for defined goals and timelines. He argues that success demands thorough research into high-yield, disease-resistant palm varieties suited to Ghana’s specific climate, alongside technological innovations in processing to improve efficiency and quality. Getting the market balance right is equally crucial.
“Are we targeting exports, supplying local industries like pharmaceuticals and cosmetics, or focusing on household needs for cooking? We need a clear view,” he explained, noting palm oil’s often-overlooked industrial uses in products from lipstick to aviation lubricants.
Morrison also underscored the vital need for strong sustainability frameworks from the outset to protect Ghana’s environment. He believes tapping into palm oil’s deep cultural roots in West Africa could drive both local production and consumption.
However, without this comprehensive approach – blending research, innovation, smart market mapping, and sustainability – Morrison fears Ghana risks falling short of realizing the full economic potential of its palm oil sector. The plan could remain just that: a plan. News Ghana
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Malaysia approves over 34,000 Quotas To Address Worker Shortage In Plantation Sector
KUALA LUMPUR, Aug 14 (Bernama) -- A total of 434 companies, involving more than 34,000 quotas, have been recommended for approval until July 9 for the recruitment of foreign workers, the Plantation and Commodities Ministry (KPK) said today.
Its deputy minister, Datuk Chan Foong Hin, said the special approvals aim to address labour shortages and boost national productivity and output.
“To tackle the shortage, the government has granted special quota approvals for foreign worker recruitment in the plantation sector on a case-by-case basis,” he told the Dewan Rakyat during question-and-answer time today.
He was responding to Datuk Ngeh Koo Ham (PH-Beruas), who had asked about the workforce needs in the plantation sector, particularly in oil palm and rubber, and the quotas given to address the shortfall.
Chan said Immigration Department statistics as of June 30 this year showed there were 258,153 active Temporary Employment Visit Pass (PLKS) holders in the plantation sector.
However, he noted this is still insufficient, with the industry reporting an additional need of 30,000 to 40,000 workers, taking into account those who have returned to their home countries after their permits expired. Bernama
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Sweat-proof & non-greasy: palm oil’s role in lightweight skincare products
Dr Geetika Mittal Gupta, Medical director & Founder, Isaac Luxe.
In warm and humid weather, one of the most frustrating skincare problems is trying to find products that don’t feel heavy or greasy by midday. We all want hydration that stays put, but without the stickiness or shine, and that’s where skincare’s unsung heroes quietly step in. While it might not be highlighted on the label, many of the ingredients that make your skincare feel light, smooth, and fast-absorbing are actually derived from palm oil.
Palm-based derivatives like caprylic/capric triglyceride, isopropyl palmitate, and cetyl alcohol are commonly used by formulators because they help products absorb quickly while giving that soft, non-oily finish we all love. These ingredients work behind the scenes to deliver hydration without sitting on the skin’s surface, making them particularly ideal for climates where sweat and humidity can break down heavier formulas.
What’s interesting is that palm oil derivatives often mimic the natural lipids found in our skin, so they blend in easily and do not clog pores. That means fewer breakouts, better absorption, and more comfortable wear, especially for oily or acne-prone skin types. They also help create that barely-there texture that modern skincare is known for. You know the feeling: a moisturiser that feels light when you apply it, disappears into the skin within seconds, and still keeps your face hydrated for hours without turning into a greasy mess. Business News This Week
Ghana targets $2bn palm oil import cut with new RedGold policy
Ghana is advancing plans for a bold agricultural policy aimed at slashing its $2 billion annual palm oil import bill.
This would be achieved by significantly scaling up domestic production and diversifying into high-value tree crops.
The plan outlined in the 2025–2028 Medium-Term Expenditure Framework, includes the rollout of a National Palm Oil Industry Policy, which will support the distribution of 1.5 million oil palm seedlings to farmers.
It is also to promote large-scale out-grower plantation schemes and provide incentives to expand local processing capacity.
The initiative, dubbed the “RedGold” oil palm programme, is expected to catalyse private sector investment, create thousands of jobs across rural Ghana and aligns with the country’s import substitution and agro-industrial transformation agenda.
Despite annual consumption of over 250,000 metric tons, Ghana’s domestic palm oil production currently stands at a mere 50,000 metric tons – a development which creates a major structural gap in the edible oils market.
The new policy seeks to address this imbalance by developing a fully integrated palm oil value chain—from farm to refinery.
The palm oil strategy falls under the broader Ghana Tree Crops Diversification Project (GTCDP), which aims to boost the commercial cultivation of cashew, coconut, rubber, mango and shea, alongside oil palm, to enhance farmer incomes and generate foreign exchange.
In 2025, the government, through the Ghana Tree Crops Development Programme (GTRDP), will procure and supply 5,070,000 seedlings; comprising 2,000,000 cashew, 1,650,000 rubber, and 1,420,000 coconut—for nationwide distribution.
An additional two million seedlings will be provided, including 500,000 shea and 1,500,000 mango, targeting 500,000 farmers across the country. Business Ghana
---------
Ghana’s US$2 Billion Palm Oil Shift Hinges on Smart Growth, Warns Industry Leader
Ghana’s ambitious plan to slash its $2 billion annual palm oil import bill faces significant hurdles without deeper research, targeted innovation, and a clear market strategy, according to the head of the country’s agribusiness chamber.
Anthony Morrison, CEO of the Chamber of Agribusiness Ghana, supports the government’s goal but cautions that merely expanding farmland won’t guarantee success.
Official figures reveal a stark gap: Ghana produces just 50,000 metric tons of palm oil each year but consumes roughly 250,000 metric tons. This forces heavy reliance on imports, draining foreign exchange.
While the Mahama administration has announced a strategy to boost local production, Morrison stresses that Ghana must avoid the pitfalls seen in major producing nations like Malaysia. He points to their struggles with environmental damage and sustainability issues as critical lessons. Simply planting more trees isn’t the answer.
“What exactly do we want? How do we plan to achieve it, and by when?” Morrison questioned, highlighting the need for defined goals and timelines. He argues that success demands thorough research into high-yield, disease-resistant palm varieties suited to Ghana’s specific climate, alongside technological innovations in processing to improve efficiency and quality. Getting the market balance right is equally crucial.
“Are we targeting exports, supplying local industries like pharmaceuticals and cosmetics, or focusing on household needs for cooking? We need a clear view,” he explained, noting palm oil’s often-overlooked industrial uses in products from lipstick to aviation lubricants.
Morrison also underscored the vital need for strong sustainability frameworks from the outset to protect Ghana’s environment. He believes tapping into palm oil’s deep cultural roots in West Africa could drive both local production and consumption.
However, without this comprehensive approach – blending research, innovation, smart market mapping, and sustainability – Morrison fears Ghana risks falling short of realizing the full economic potential of its palm oil sector. The plan could remain just that: a plan. News Ghana
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Malaysia approves over 34,000 Quotas To Address Worker Shortage In Plantation Sector
KUALA LUMPUR, Aug 14 (Bernama) -- A total of 434 companies, involving more than 34,000 quotas, have been recommended for approval until July 9 for the recruitment of foreign workers, the Plantation and Commodities Ministry (KPK) said today.
Its deputy minister, Datuk Chan Foong Hin, said the special approvals aim to address labour shortages and boost national productivity and output.
“To tackle the shortage, the government has granted special quota approvals for foreign worker recruitment in the plantation sector on a case-by-case basis,” he told the Dewan Rakyat during question-and-answer time today.
He was responding to Datuk Ngeh Koo Ham (PH-Beruas), who had asked about the workforce needs in the plantation sector, particularly in oil palm and rubber, and the quotas given to address the shortfall.
Chan said Immigration Department statistics as of June 30 this year showed there were 258,153 active Temporary Employment Visit Pass (PLKS) holders in the plantation sector.
However, he noted this is still insufficient, with the industry reporting an additional need of 30,000 to 40,000 workers, taking into account those who have returned to their home countries after their permits expired. Bernama
---------
Sweat-proof & non-greasy: palm oil’s role in lightweight skincare products
Dr Geetika Mittal Gupta, Medical director & Founder, Isaac Luxe.
In warm and humid weather, one of the most frustrating skincare problems is trying to find products that don’t feel heavy or greasy by midday. We all want hydration that stays put, but without the stickiness or shine, and that’s where skincare’s unsung heroes quietly step in. While it might not be highlighted on the label, many of the ingredients that make your skincare feel light, smooth, and fast-absorbing are actually derived from palm oil.
Palm-based derivatives like caprylic/capric triglyceride, isopropyl palmitate, and cetyl alcohol are commonly used by formulators because they help products absorb quickly while giving that soft, non-oily finish we all love. These ingredients work behind the scenes to deliver hydration without sitting on the skin’s surface, making them particularly ideal for climates where sweat and humidity can break down heavier formulas.
What’s interesting is that palm oil derivatives often mimic the natural lipids found in our skin, so they blend in easily and do not clog pores. That means fewer breakouts, better absorption, and more comfortable wear, especially for oily or acne-prone skin types. They also help create that barely-there texture that modern skincare is known for. You know the feeling: a moisturiser that feels light when you apply it, disappears into the skin within seconds, and still keeps your face hydrated for hours without turning into a greasy mess. Business News This Week
August 13, 2025
Indonesia sees double-digit rise in palm oil exports in the first half of 2025
Indonesian exports of crude palm oil (CPO) and its derivatives surged by 24.81% year-on-year in the first half of 2025, according to official statistics reported by the Jakarta Globe.
The increase was due to the country unlocking greater market access to the European Union (EU), the 1 August report said.
The exports were worth a total of US$11.43bn, up from US$9.16bn the previous year, according to Central Statistics Agency (BPS) data.
The world’s largest palm oil producer had shipped around 11M tonnes of palm oil over the six-month period, a year-on-year increase of 2.69%, the Jakarta Globe wrote.
Indonesia had been selling its palm oil at an average price of $1,053.03/tonne from June, a 22.21% year-on-year increase compared to US$861.65/tonne in the first six months of 2024, the report said.
“In June 2025 alone, our exports of CPO and derivatives reached US$2.53bn. This marked a 36.95% rise from May 2025,” Pudji Ismartini, a deputy at BPS, was quoted as saying at a news conference in Jakarta.
The agency did not identify Indonesia’s top palm oil buyers.
Indonesia’s surplus in non-oil and gas trade totalled US$28.31bn in the first half of 2025, with about US$15.74bn from the trade of animal or vegetable fats and oils. CPO falls within this group. The category also made up a major share of the country’s positive trade balance.
Published on 1 August, the latest trade figures came after the government announced the EU had relaxed its position on Indonesian palm oil despite the bloc's deforestation concerns, the report said.
According to senior minister Airlangga Hartarto, the EU has agreed to eliminate its tariffs on Indonesian palm oil as part of an upcoming trade pact which, once in force, would allow Indonesia to export 1M tonnes/year of CPO each year at zero tariff. Any palm oil export beyond the limit would potentially be subject to a higher tariff of around 3%. The quota for palm kernel oil (PKO) would depend on the previous year’s exports.
The Comprehensive Economic Partnership Agreement (CEPA) was likely to take effect by the end of 2026 after a series of ratification processes, the report said. OFI Magazine
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Peru to Drop Tariffs on Nearly All Indonesian Imports, Including Palm Oil
Jakarta. Peru is willing to drop most of the tariffs that it charges on Indonesian goods in the freshly signed trade pact with Lima, according to a senior government official.
The Comprehensive Economic Partnership Agreement (CEPA) became the highlight of Peruvian President Dina Boluarte’s recent Jakarta trip. This bilateral agreement, which is currently limited to goods trade, will see Indonesia and Peru getting rid of nearly all of its tariffs, many down to 0 percent. The reduction will take place in phases.
Djatmiko Bris Witjaksono, a director-general at the Trade Ministry, told reporters that Peru would either lower or entirely eliminate the duties across 90.68 percent of the tariff lines that it has set for Indonesian goods. Jakarta is granting Lima zero or lower duties across 92.26 percent of its tariff lines, enabling greater volumes of Peruvian fruits entering Southeast Asia’s largest economy.
Indonesia’s top export palm oil is set to have its tariffs dropped to 0 percent when being sold to Peru. Many processed palm oil products will also get similar treatment. Government data showed Indonesia exported $21.4 million worth of palm oil and its derivatives to Peru throughout last year. Jakarta Globe
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India's ethanol drive imperils its push for edible oil self-sufficiency
NASHIK, India, Aug 12 (Reuters) - India's drive to produce more ethanol is leading its farmers to switch away from growing oilseeds, undermining government efforts in the world's largest buyer of cooking oils to reduce costly imports.
Helped by record corn and rice harvests, New Delhi is using more of the grains to make ethanol and meet its target of blending 20% of the biofuel additive with gasoline. The process, however, produces Distillers Dried Grains with Solubles (DDGS), a protein-rich byproduct that is flooding the animal feed market.
The DDGS glut is weakening demand for oilmeals, depressing oilseed prices and prompting farmers in the South Asian nation to plant more corn and rice in place of soybeans and groundnuts - despite New Delhi's push to grow more of the oilseeds to ease imports.
DDGS production in India has soared some 13-fold over the past two years to an estimated 5.5 million tons by 2025, according to industry officials.
"DDGS is a pain in the neck," said Aashish Acharya, vice president at Patanjali Foods Ltd (PAFO.NS), opens new tab, a leading soybean processor. "Feed makers are substituting oilmeals with DDGS since it is cheaper." Reuters
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Loss of oil palm land costs Malaysia RM1.7b annually
MALAYSIA is losing an estimated RM1.7 billion in annual palm oil export revenue following a sharp decline in smallholder-owned plantation areas over the past four years.
Malaysian Palm Oil Board (MPOB) data showed the area had contracted by 137,133ha, from 955,811ha in 2020 to 818,678ha in 2024. The reduction is equivalent to 192,035 football fields.
For every hectare, smallholders can produce an average of 15 tonnes of fruit, with 20% processed into crude palm oil valued at RM4,171 per tonne at current market prices.
National Association of Smallholders Malaysia (PKPKM) president Adzmi Hassan said restrictive land title conditions have prevented many smallholders from replanting oil palm, even on agricultural land long used for palm cultivation.
“State governments are seen as not proactive in changing the crop or land status even though oil palm has been cultivated there for a long time,” he told Utusan Malaysia.
He said the absence of official recognition as oil palm land means smallholders are ineligible for key government facilities.
“They cannot obtain a licence to sell and transport palm fruit from the MPOB, nor are they entitled to replanting grants under government schemes or Malaysian Sustainable Palm Oil (MSPO) certification,” he added.
As a result, many halt replanting or turn to other crops, undermining the government’s replanting programme, which targets smallholders who account for 14.6% of Malaysia’s total oil palm area.
Adzmi welcomed the commitment by Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani to allocate RM1.4 billion under the 13th Malaysia Plan (MP13) for the national replanting programme, but stressed the need for better implementation.
“PKPKM proposes that all state land administrators ease the process by allowing oil palm replanting on any land classified as agricultural, so that smallholders are eligible for licences, replanting grants and MSPO certification,” he said.
He also noted that low fruit prices during the Covid-19 pandemic made palm cultivation less viable, prompting some farmers to switch to higher-value crops such as durian.
Labour shortages and rising plantation management costs, especially for ageing smallholders, have also contributed to the decline. The Malaysian Reserve
Indonesia sees double-digit rise in palm oil exports in the first half of 2025
Indonesian exports of crude palm oil (CPO) and its derivatives surged by 24.81% year-on-year in the first half of 2025, according to official statistics reported by the Jakarta Globe.
The increase was due to the country unlocking greater market access to the European Union (EU), the 1 August report said.
The exports were worth a total of US$11.43bn, up from US$9.16bn the previous year, according to Central Statistics Agency (BPS) data.
The world’s largest palm oil producer had shipped around 11M tonnes of palm oil over the six-month period, a year-on-year increase of 2.69%, the Jakarta Globe wrote.
Indonesia had been selling its palm oil at an average price of $1,053.03/tonne from June, a 22.21% year-on-year increase compared to US$861.65/tonne in the first six months of 2024, the report said.
“In June 2025 alone, our exports of CPO and derivatives reached US$2.53bn. This marked a 36.95% rise from May 2025,” Pudji Ismartini, a deputy at BPS, was quoted as saying at a news conference in Jakarta.
The agency did not identify Indonesia’s top palm oil buyers.
Indonesia’s surplus in non-oil and gas trade totalled US$28.31bn in the first half of 2025, with about US$15.74bn from the trade of animal or vegetable fats and oils. CPO falls within this group. The category also made up a major share of the country’s positive trade balance.
Published on 1 August, the latest trade figures came after the government announced the EU had relaxed its position on Indonesian palm oil despite the bloc's deforestation concerns, the report said.
According to senior minister Airlangga Hartarto, the EU has agreed to eliminate its tariffs on Indonesian palm oil as part of an upcoming trade pact which, once in force, would allow Indonesia to export 1M tonnes/year of CPO each year at zero tariff. Any palm oil export beyond the limit would potentially be subject to a higher tariff of around 3%. The quota for palm kernel oil (PKO) would depend on the previous year’s exports.
The Comprehensive Economic Partnership Agreement (CEPA) was likely to take effect by the end of 2026 after a series of ratification processes, the report said. OFI Magazine
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Peru to Drop Tariffs on Nearly All Indonesian Imports, Including Palm Oil
Jakarta. Peru is willing to drop most of the tariffs that it charges on Indonesian goods in the freshly signed trade pact with Lima, according to a senior government official.
The Comprehensive Economic Partnership Agreement (CEPA) became the highlight of Peruvian President Dina Boluarte’s recent Jakarta trip. This bilateral agreement, which is currently limited to goods trade, will see Indonesia and Peru getting rid of nearly all of its tariffs, many down to 0 percent. The reduction will take place in phases.
Djatmiko Bris Witjaksono, a director-general at the Trade Ministry, told reporters that Peru would either lower or entirely eliminate the duties across 90.68 percent of the tariff lines that it has set for Indonesian goods. Jakarta is granting Lima zero or lower duties across 92.26 percent of its tariff lines, enabling greater volumes of Peruvian fruits entering Southeast Asia’s largest economy.
Indonesia’s top export palm oil is set to have its tariffs dropped to 0 percent when being sold to Peru. Many processed palm oil products will also get similar treatment. Government data showed Indonesia exported $21.4 million worth of palm oil and its derivatives to Peru throughout last year. Jakarta Globe
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India's ethanol drive imperils its push for edible oil self-sufficiency
- India diverts rice, corn to achieve ethanol blending targets
- Grain-based ethanol-making yields protein-rich byproduct DDGS
- Cheaper DDGS replaces oilmeals, reducing oilseed prices
- Oilseed price drop prompts farmers to shift to other crops
- Lower oilseed output to lift India's edible oil imports
NASHIK, India, Aug 12 (Reuters) - India's drive to produce more ethanol is leading its farmers to switch away from growing oilseeds, undermining government efforts in the world's largest buyer of cooking oils to reduce costly imports.
Helped by record corn and rice harvests, New Delhi is using more of the grains to make ethanol and meet its target of blending 20% of the biofuel additive with gasoline. The process, however, produces Distillers Dried Grains with Solubles (DDGS), a protein-rich byproduct that is flooding the animal feed market.
The DDGS glut is weakening demand for oilmeals, depressing oilseed prices and prompting farmers in the South Asian nation to plant more corn and rice in place of soybeans and groundnuts - despite New Delhi's push to grow more of the oilseeds to ease imports.
DDGS production in India has soared some 13-fold over the past two years to an estimated 5.5 million tons by 2025, according to industry officials.
"DDGS is a pain in the neck," said Aashish Acharya, vice president at Patanjali Foods Ltd (PAFO.NS), opens new tab, a leading soybean processor. "Feed makers are substituting oilmeals with DDGS since it is cheaper." Reuters
---------
Loss of oil palm land costs Malaysia RM1.7b annually
MALAYSIA is losing an estimated RM1.7 billion in annual palm oil export revenue following a sharp decline in smallholder-owned plantation areas over the past four years.
Malaysian Palm Oil Board (MPOB) data showed the area had contracted by 137,133ha, from 955,811ha in 2020 to 818,678ha in 2024. The reduction is equivalent to 192,035 football fields.
For every hectare, smallholders can produce an average of 15 tonnes of fruit, with 20% processed into crude palm oil valued at RM4,171 per tonne at current market prices.
National Association of Smallholders Malaysia (PKPKM) president Adzmi Hassan said restrictive land title conditions have prevented many smallholders from replanting oil palm, even on agricultural land long used for palm cultivation.
“State governments are seen as not proactive in changing the crop or land status even though oil palm has been cultivated there for a long time,” he told Utusan Malaysia.
He said the absence of official recognition as oil palm land means smallholders are ineligible for key government facilities.
“They cannot obtain a licence to sell and transport palm fruit from the MPOB, nor are they entitled to replanting grants under government schemes or Malaysian Sustainable Palm Oil (MSPO) certification,” he added.
As a result, many halt replanting or turn to other crops, undermining the government’s replanting programme, which targets smallholders who account for 14.6% of Malaysia’s total oil palm area.
Adzmi welcomed the commitment by Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani to allocate RM1.4 billion under the 13th Malaysia Plan (MP13) for the national replanting programme, but stressed the need for better implementation.
“PKPKM proposes that all state land administrators ease the process by allowing oil palm replanting on any land classified as agricultural, so that smallholders are eligible for licences, replanting grants and MSPO certification,” he said.
He also noted that low fruit prices during the Covid-19 pandemic made palm cultivation less viable, prompting some farmers to switch to higher-value crops such as durian.
Labour shortages and rising plantation management costs, especially for ageing smallholders, have also contributed to the decline. The Malaysian Reserve
August 12, 2025
Indonesia aims to launch B50 biodiesel in 2026, but unlikely in January
JAKARTA, Aug 11 (Reuters) - Indonesia reaffirmed a plan to raise the mandatory palm oil content in its biodiesel to 50% starting from next year, but the programme known as B50 is unlikely to start in January, senior energy ministry official Eniya Listiani Dewi told reporters on Monday.
Indonesia currently implements a mandatory bio content of 40% (B40) and is working to increase the amount of palm oil in the blend in a bid to reduce its reliance on imported fossil fuels.
The government will carry out a number of tests for the new 50% blend, which may take up to eight months, Eniya said.
"The minister and deputy minister have set a plan for 2026 (implementation), but the month has not been decided yet," she said, adding that they will adjust the timeline based on these technical preparations.
It was unclear when the tests will begin.
Indonesia's plan to expand the use of palm oil for energy often affects global prices of the vegetable oil by sparking concerns that the world's top palm oil exporter will have less to ship overseas as it tries to meet its domestic energy needs. Reuters
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Palm Oil Biodiesel Helps Indonesia Save $3.68 Billion in Foreign Exchange
Jakarta. Indonesia recently reported that its nationwide program of using palm oil-based biodiesel had helped the country save at least $3.68 billion in foreign exchange this year.
Indonesia, the world’s largest palm oil producer, has required the use of biodiesel created by combining the food crop and conventional diesel fuel. The percentage of the palm oil blend keeps on increasing over time. Indonesia currently sets the mandatory palm oil mix at 40 percent in a policy better known as the B40, effective since early 2025. The number corresponds to how much palm oil Indonesia uses in its fuels.
“We have distributed around 6.8 million kiloliters of [B40] biodiesel in the first half of 2025,” Energy Minister Bahlil Lahadalia told a press conference on Monday.
As a result, Indonesia managed to cut down on its fuel imports, resulting in $3.68 billion worth of foreign exchange savings so far this year as of June. Jakarta Globe
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Palm oil price worries in local market as Indonesia plans export cut
Starting this September, Indonesia plans to raise its export duty on crude palm oil from 7.5% to 10%, and on refined products up to 9.5%
Amid concerns over Indonesia's move to curb palm oil exports in order to boost its use in biofuel production, Bangladesh's edible oil market is experiencing price hikes.
Starting this September, Indonesia plans to raise its export duty on crude palm oil from 7.5% to 10%, and on refined products up to 9.5%. As a result, in the past month, the wholesale price of edible oil in Bangladesh has increased by Tk70–100 per maund (37.32 kg), and traders fear prices could rise further in the coming months.
According to a Reuters report, Indonesia will raise its palm oil export levy to finance a mandated increase in the amount of the oil used in biodiesel. The mandatory blend of palm oil in biodiesel has been raised to 40% (B40) in 2025, up from 35% this year. TBS News
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Tracing Factual Lines Between Palm Oil and Global Warming
Global warming has become one of the greatest threats to life on earth. The rise of average global temperature had resulted in extreme global climate change, melting polar ice, rising sea surface, and disruption to the agricultural system and human health.
But amidst such concerns, certain groups of people had accused the oil palm plantations as the main cause of global warming. How come? But is the accusation supported with scientific evidence, or they just fabricated myths about palm oil? Find out the answers through the following explanation.
Scientists and environmentalists have proven that the global warming was resulted from the increase of concentrations of greenhouse gases (GHG) in the atmosphere. The GHG such as carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O), absorbs the heat from solar radiation and trap it in the atmosphere, causing the increase of global temperature.
Naturally, the GHG is needed to make earth warm and habitable. But due to human activities, such as the burning of fossil fuels and deforestation, the GHG concentration has increased much higher than its normal level. It has resulted in the enhanced greenhouse effect that has caused global warming.
Based on the latest report from IPCC and other international sources: Read more GAPKI
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Shift to processed palm oil will boost export values for Malaysia
KUALA LUMPUR: Malaysia's exports of processed palm oil (PPO) and palm-based products are significantly larger than crude palm oil (CPO) exports, the Dewan Rakyat was told.
In 2024, Malaysia exported a total of 15.39 million metric tonnes of palm oil, said Plantation and Commodities Minister Datuk Seri Johari Ghani.
Of this total, PPO exports amounted to 11.69 million metric tonnes worth RM50.73 billion, while CPO exports were only 3.69 million metric tonnes, valued at RM15.09 billion.
This means only 24 per cent of Malaysia's palm oil exports consisted of CPO, the minister said in a written parliamentary reply.
Johari added that exports of palm-based products amounted to 14.80 million metric tonnes, valued at RM53.44 billion, compared to 11.98 million metric tonnes valued at RM46.3 billion in 2023.
"These figures indicate that the export performance of value-added downstream palm oil products is growing, in line with efforts to reduce dependence on crude palm oil exports," he said. New Straits Times
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Malaysia CPO exports crucial to maintain global market share
KUALA LUMPUR: Malaysia’s crude palm oil (CPO) exports remain vital to sustaining the country’s competitive edge in global markets, particularly against Indonesia.
The Ministry of Plantation and Commodities (KPK) emphasised that maintaining exports to key markets like India, Kenya, and the Netherlands is strategically important.
“Exports to these markets not only contribute to national revenue but are also strategically significant,” the ministry stated in a parliamentary reply.
Processed palm oil (PPO) and palm-based products dominate Malaysia’s export volumes compared to CPO.
Official data from the Department of Statistics Malaysia revealed total palm oil exports in 2024 reached 15.39 million metric tonnes.
CPO exports accounted for 3.69 million metric tonnes, valued at RM15.09 billion, while processed palm oil exports stood at 11.69 million metric tonnes, worth RM50.73 billion.
Only 24 per cent of Malaysia’s palm oil exports were in CPO form, reflecting a shift towards higher-value downstream products.
Palm-based product exports surged to 14.80 million metric tonnes, valued at RM53.44 billion, up from 11.98 million metric tonnes (RM46.3 billion) in 2023.
KPK noted this growth aligns with efforts to reduce dependency on CPO exports and boost value-added production. - Bernama
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“No Palm Oil” claims mislead consumers, ignore scientific evidence: OTAI President
Dr Churi calls for science-based and balanced public dialogue on food and nutrition, urging industry, regulators, and media to support informed consumer choices and avoid baseless claims
New Delhi: Dr Rajeev Churi, National President of the Oil Technologists’ Association of India (OTAI) and Senior Oil Technologist, has raised concerns over recent “No Palm Oil” marketing campaigns by certain food brands. He described these campaigns as exploiting consumer sentiment through fear-based messaging.
Dr Churi emphasised the need for public discussions on food and nutrition to be grounded in scientific rigour and balanced information. He urged stakeholders in the food industry, regulatory bodies, and the media to promote informed consumer decisions and avoid unfounded claims.
“These campaigns, which position palm oil as inherently unhealthy, are not supported by scientific evidence. Rather, they appear to be strategies aimed at gaining market differentiation,” said Dr Churi.
India’s 2024 Dietary Guidelines, issued by the Indian Council of Medical Research–National Institute of Nutrition, reaffirm the role of palm oil as part of a balanced diet. The guidelines also note the benefits of tocotrienols, compounds found in palm oil, in reducing blood cholesterol.
The guidelines recommend rotating oils such as palm, groundnut, sesame, rice bran, and sunflower to ensure a balanced intake of fatty acids.
Dr Churi added, “The growing and widespread use of ‘No Palm Oil’ narratives risk distorting public understanding of palm oil, which is a safe, widely consumed, and globally regulated edible oil. Palm oil, when used responsibly and as part of a balanced diet, is as safe as any other edible oil. It is imperative that discussions around its use are driven by data, not marketing rhetoric. It has been unfairly vilified, despite being nutritionally sound and a key part of diets worldwide. Demonising it will not make processed food healthier; it only confuses consumers and undermines India’s goal of self-reliance in edible oils.” Best Media Info
Indonesia aims to launch B50 biodiesel in 2026, but unlikely in January
JAKARTA, Aug 11 (Reuters) - Indonesia reaffirmed a plan to raise the mandatory palm oil content in its biodiesel to 50% starting from next year, but the programme known as B50 is unlikely to start in January, senior energy ministry official Eniya Listiani Dewi told reporters on Monday.
Indonesia currently implements a mandatory bio content of 40% (B40) and is working to increase the amount of palm oil in the blend in a bid to reduce its reliance on imported fossil fuels.
The government will carry out a number of tests for the new 50% blend, which may take up to eight months, Eniya said.
"The minister and deputy minister have set a plan for 2026 (implementation), but the month has not been decided yet," she said, adding that they will adjust the timeline based on these technical preparations.
It was unclear when the tests will begin.
Indonesia's plan to expand the use of palm oil for energy often affects global prices of the vegetable oil by sparking concerns that the world's top palm oil exporter will have less to ship overseas as it tries to meet its domestic energy needs. Reuters
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Palm Oil Biodiesel Helps Indonesia Save $3.68 Billion in Foreign Exchange
Jakarta. Indonesia recently reported that its nationwide program of using palm oil-based biodiesel had helped the country save at least $3.68 billion in foreign exchange this year.
Indonesia, the world’s largest palm oil producer, has required the use of biodiesel created by combining the food crop and conventional diesel fuel. The percentage of the palm oil blend keeps on increasing over time. Indonesia currently sets the mandatory palm oil mix at 40 percent in a policy better known as the B40, effective since early 2025. The number corresponds to how much palm oil Indonesia uses in its fuels.
“We have distributed around 6.8 million kiloliters of [B40] biodiesel in the first half of 2025,” Energy Minister Bahlil Lahadalia told a press conference on Monday.
As a result, Indonesia managed to cut down on its fuel imports, resulting in $3.68 billion worth of foreign exchange savings so far this year as of June. Jakarta Globe
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Palm oil price worries in local market as Indonesia plans export cut
Starting this September, Indonesia plans to raise its export duty on crude palm oil from 7.5% to 10%, and on refined products up to 9.5%
Amid concerns over Indonesia's move to curb palm oil exports in order to boost its use in biofuel production, Bangladesh's edible oil market is experiencing price hikes.
Starting this September, Indonesia plans to raise its export duty on crude palm oil from 7.5% to 10%, and on refined products up to 9.5%. As a result, in the past month, the wholesale price of edible oil in Bangladesh has increased by Tk70–100 per maund (37.32 kg), and traders fear prices could rise further in the coming months.
According to a Reuters report, Indonesia will raise its palm oil export levy to finance a mandated increase in the amount of the oil used in biodiesel. The mandatory blend of palm oil in biodiesel has been raised to 40% (B40) in 2025, up from 35% this year. TBS News
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Tracing Factual Lines Between Palm Oil and Global Warming
Global warming has become one of the greatest threats to life on earth. The rise of average global temperature had resulted in extreme global climate change, melting polar ice, rising sea surface, and disruption to the agricultural system and human health.
But amidst such concerns, certain groups of people had accused the oil palm plantations as the main cause of global warming. How come? But is the accusation supported with scientific evidence, or they just fabricated myths about palm oil? Find out the answers through the following explanation.
Scientists and environmentalists have proven that the global warming was resulted from the increase of concentrations of greenhouse gases (GHG) in the atmosphere. The GHG such as carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O), absorbs the heat from solar radiation and trap it in the atmosphere, causing the increase of global temperature.
Naturally, the GHG is needed to make earth warm and habitable. But due to human activities, such as the burning of fossil fuels and deforestation, the GHG concentration has increased much higher than its normal level. It has resulted in the enhanced greenhouse effect that has caused global warming.
Based on the latest report from IPCC and other international sources: Read more GAPKI
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Shift to processed palm oil will boost export values for Malaysia
KUALA LUMPUR: Malaysia's exports of processed palm oil (PPO) and palm-based products are significantly larger than crude palm oil (CPO) exports, the Dewan Rakyat was told.
In 2024, Malaysia exported a total of 15.39 million metric tonnes of palm oil, said Plantation and Commodities Minister Datuk Seri Johari Ghani.
Of this total, PPO exports amounted to 11.69 million metric tonnes worth RM50.73 billion, while CPO exports were only 3.69 million metric tonnes, valued at RM15.09 billion.
This means only 24 per cent of Malaysia's palm oil exports consisted of CPO, the minister said in a written parliamentary reply.
Johari added that exports of palm-based products amounted to 14.80 million metric tonnes, valued at RM53.44 billion, compared to 11.98 million metric tonnes valued at RM46.3 billion in 2023.
"These figures indicate that the export performance of value-added downstream palm oil products is growing, in line with efforts to reduce dependence on crude palm oil exports," he said. New Straits Times
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Malaysia CPO exports crucial to maintain global market share
KUALA LUMPUR: Malaysia’s crude palm oil (CPO) exports remain vital to sustaining the country’s competitive edge in global markets, particularly against Indonesia.
The Ministry of Plantation and Commodities (KPK) emphasised that maintaining exports to key markets like India, Kenya, and the Netherlands is strategically important.
“Exports to these markets not only contribute to national revenue but are also strategically significant,” the ministry stated in a parliamentary reply.
Processed palm oil (PPO) and palm-based products dominate Malaysia’s export volumes compared to CPO.
Official data from the Department of Statistics Malaysia revealed total palm oil exports in 2024 reached 15.39 million metric tonnes.
CPO exports accounted for 3.69 million metric tonnes, valued at RM15.09 billion, while processed palm oil exports stood at 11.69 million metric tonnes, worth RM50.73 billion.
Only 24 per cent of Malaysia’s palm oil exports were in CPO form, reflecting a shift towards higher-value downstream products.
Palm-based product exports surged to 14.80 million metric tonnes, valued at RM53.44 billion, up from 11.98 million metric tonnes (RM46.3 billion) in 2023.
KPK noted this growth aligns with efforts to reduce dependency on CPO exports and boost value-added production. - Bernama
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“No Palm Oil” claims mislead consumers, ignore scientific evidence: OTAI President
Dr Churi calls for science-based and balanced public dialogue on food and nutrition, urging industry, regulators, and media to support informed consumer choices and avoid baseless claims
New Delhi: Dr Rajeev Churi, National President of the Oil Technologists’ Association of India (OTAI) and Senior Oil Technologist, has raised concerns over recent “No Palm Oil” marketing campaigns by certain food brands. He described these campaigns as exploiting consumer sentiment through fear-based messaging.
Dr Churi emphasised the need for public discussions on food and nutrition to be grounded in scientific rigour and balanced information. He urged stakeholders in the food industry, regulatory bodies, and the media to promote informed consumer decisions and avoid unfounded claims.
“These campaigns, which position palm oil as inherently unhealthy, are not supported by scientific evidence. Rather, they appear to be strategies aimed at gaining market differentiation,” said Dr Churi.
India’s 2024 Dietary Guidelines, issued by the Indian Council of Medical Research–National Institute of Nutrition, reaffirm the role of palm oil as part of a balanced diet. The guidelines also note the benefits of tocotrienols, compounds found in palm oil, in reducing blood cholesterol.
The guidelines recommend rotating oils such as palm, groundnut, sesame, rice bran, and sunflower to ensure a balanced intake of fatty acids.
Dr Churi added, “The growing and widespread use of ‘No Palm Oil’ narratives risk distorting public understanding of palm oil, which is a safe, widely consumed, and globally regulated edible oil. Palm oil, when used responsibly and as part of a balanced diet, is as safe as any other edible oil. It is imperative that discussions around its use are driven by data, not marketing rhetoric. It has been unfairly vilified, despite being nutritionally sound and a key part of diets worldwide. Demonising it will not make processed food healthier; it only confuses consumers and undermines India’s goal of self-reliance in edible oils.” Best Media Info
August 10, 2025
India’s push for self-reliance in edible oils not a threat, says Malaysia
Kuala Lumpur still sees itself as key and long-term supplier of the edible oil, says MPOC CEO
Malaysia does not see India’s ambitious push for self-reliance in edible oils through the National Mission on Edible Oils – Oil Palm (NMEO-OP) as a threat but as a strategic opportunity. The Malaysian Palm Oil Council (MPOC) has welcomed the initiative as a forward-looking step to boost India’s edible oil security, while reaffirming the role of Malaysia, the world’s second-largest producer of palm oil, as a key and long-term supplier.
Despite India’s efforts to promote domestic oil palm cultivation, Malaysian palm oil continues to play a vital role in the Indian market, which sourced 3 million tonnes (mt) of palm oil from Malaysia in 2024. With palm oil accounting for 34.2 per cent of India’s total edible oil consumption, the Malaysian supply remains critical to sectors such as food processing, retail, and hospitality.
MPOC said given the long gestation period for domestic oil palm cultivation, India will continue to rely on imports in the near to medium term. “Rather than seeing NMEO-OP as competition, we view it as an opportunity to strengthen bilateral cooperation,” said Belvinder Sron, CEO of MPOC, in an email interview, adding that Malaysian palm oil’s affordability, quality, and stable supply continue to support India’s growth trajectory. The Hindu Businessline
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Airbus partners with Indonesian researchers to develop biomass-based jet fuel
Jakarta: Airbus’s Singapore office has teamed up with researchers from Indonesia’s Bogor Agricultural University (IPB) to develop sustainable aviation fuel (SAF) from biomass, with the goal of sourcing up to 100 million tonnes a year from Indonesia, reports The Star.
Biomass includes crop residues, wood, and other plant-based materials that can be converted into renewable energy, such as biofuel for aircraft. The collaboration will involve a detailed study of Indonesia’s biomass potential, covering resource availability, logistics, supply chain mapping, and factory locations to reduce transport costs.
Meika Syahbana Rusli, head of IPB’s Surfactant and Bioenergy Research Centre (SBRC), said Airbus sees strong potential in Indonesia. “Airbus is very interested in developing SAF from biomass and has identified Indonesia as a major potential supplier,” he said on Monday. He noted that SAF currently made from used cooking oil, waste palm oil, and low-grade vegetable oils faces limited output due to competition with food supplies.
According to Meika, Airbus estimates that by 2030 SAF will need to be sourced mainly from biomass. The company believes Indonesia could produce up to 500 million tonnes annually—five times the amount it requires. He pointed to large volumes of unused palm fruit bunches in Sumatra and Kalimantan, and rice straw in Java that is often discarded or burned.
However, Meika also highlighted challenges, including the difficulty of collecting biomass from small farmers in areas with poor infrastructure, as well as gaps in regulations and limited research on processing biomass into aviation fuel at scale. Bioenergy Times
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DOPPA urges priority for Sarawak in RM1.4 bln federal oil palm replanting fund
KUCHING (Aug 10): The Sarawak Dayak Oil Palm Planters Association (Doppa) has called for Sarawak to be given priority in the federal government’s RM1.4 billion allocation for oil palm replanting under the 13th Malaysian Plan (13MP).
Doppa president Dr Napolean R Ningkos said Sarawak is the largest contributor to Malaysia’s independent smallholder oil palm sector, with Malaysian Palm Oil Board (MPOB) 2023 data showing 256,738 hectares managed by 46,584 smallholders in the state.
“As the state with the largest oil palm area in Malaysia, it is imperative that Sarawak receives priority in terms of special allocation and targeted efforts from the Ministry of Plantation and Commodities,” he said in a statement yesterday.
His comments came in response to an announcement by Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, who revealed the federal government’s plan to invest approximately RM1.4 billion in a nationwide oil palm replanting initiative over the next five years, aimed at reinforcing Malaysia’s global position in the palm oil industry.
Napolean welcomed the initiative, describing it as a strategic move to sustain Malaysia’s palm oil industry and address the crucial need to rejuvenate ageing oil palm plantations, especially those managed by independent smallholders in Sarawak.
“With the current replanting rate at just 2 per cent, there is a risk of impacting both local and global market supply chains due to ageing palms and delays in replanting.
“Addressing this issue is crucial to maintaining Malaysia’s competitive edge in the global palm oil market,” he said.
Napolean also urged the ministry to simplify the application process to enable independent smallholders to facilitate replanting efforts immediately.
According to him, over 70 per cent of Sarawak’s independent smallholders are underproducing due to ageing palms.
“The existing process is hindered by slow land status verification, which is required before incentives and soft loans, such as those provided through Agro Bank, can be disbursed,” he explained.
Napolean suggested that the Department of Agriculture Sarawak and MPOB Sarawak could serve as effective channels for deploying replanting scheme incentives. Such collaboration, he said, would significantly expedite implementation.
He noted that the RM1.4 billion allocation could fund the replanting of about 77,000 hectares nationwide – only 9.3 per cent of the total 824,404 hectares of independent smallholder oil palm areas across Malaysia.
Additionally, Doppa suggested that smallholders who proceed with replanting on their own initiative should be rewarded with incentives, subject to MPOB verification, to speed up the process and ensure the funds meet their intended goals.
“By encouraging self-motivated replanting, we can not only accelerate the replanting process but also ensure that government grants achieve their intended objectives without wastage,” he added. The Borneo Post
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Animal fats in the diet may feed cancer
A recent study reveals that the type of dietary fat, rather than overall fat mass, significantly impacts cancer development in obese individuals. Animal fats like lard and beef tallow compromise anti-tumor immunity and accelerate tumor growth in mice.
A decade-long study led by Ludwig Princeton’s Lydia Lynch found how a certain dietary fat may actively suppress the immune system and accelerate tumor growth. The findings are published in Nature Metabolism.
Obesity is linked to an increased risk of at least 13 major cancers, including those of the breast, colon, and liver. Excess body fat is also linked with impaired immune response that targets tumors and is stimulated by cancer immunotherapies. However, for years, researchers have wondered whether these effects stem from the sheer adiposity, or mass of fat, in people living with obesity or from the specific dietary fats they consume. The new study provides a deep insight into this.
“Our study reveals that the source of dietary fat, not adiposity ..
Read more at:
http://timesofindia.indiatimes.com/articleshow/123018422.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
India’s push for self-reliance in edible oils not a threat, says Malaysia
Kuala Lumpur still sees itself as key and long-term supplier of the edible oil, says MPOC CEO
Malaysia does not see India’s ambitious push for self-reliance in edible oils through the National Mission on Edible Oils – Oil Palm (NMEO-OP) as a threat but as a strategic opportunity. The Malaysian Palm Oil Council (MPOC) has welcomed the initiative as a forward-looking step to boost India’s edible oil security, while reaffirming the role of Malaysia, the world’s second-largest producer of palm oil, as a key and long-term supplier.
Despite India’s efforts to promote domestic oil palm cultivation, Malaysian palm oil continues to play a vital role in the Indian market, which sourced 3 million tonnes (mt) of palm oil from Malaysia in 2024. With palm oil accounting for 34.2 per cent of India’s total edible oil consumption, the Malaysian supply remains critical to sectors such as food processing, retail, and hospitality.
MPOC said given the long gestation period for domestic oil palm cultivation, India will continue to rely on imports in the near to medium term. “Rather than seeing NMEO-OP as competition, we view it as an opportunity to strengthen bilateral cooperation,” said Belvinder Sron, CEO of MPOC, in an email interview, adding that Malaysian palm oil’s affordability, quality, and stable supply continue to support India’s growth trajectory. The Hindu Businessline
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Airbus partners with Indonesian researchers to develop biomass-based jet fuel
Jakarta: Airbus’s Singapore office has teamed up with researchers from Indonesia’s Bogor Agricultural University (IPB) to develop sustainable aviation fuel (SAF) from biomass, with the goal of sourcing up to 100 million tonnes a year from Indonesia, reports The Star.
Biomass includes crop residues, wood, and other plant-based materials that can be converted into renewable energy, such as biofuel for aircraft. The collaboration will involve a detailed study of Indonesia’s biomass potential, covering resource availability, logistics, supply chain mapping, and factory locations to reduce transport costs.
Meika Syahbana Rusli, head of IPB’s Surfactant and Bioenergy Research Centre (SBRC), said Airbus sees strong potential in Indonesia. “Airbus is very interested in developing SAF from biomass and has identified Indonesia as a major potential supplier,” he said on Monday. He noted that SAF currently made from used cooking oil, waste palm oil, and low-grade vegetable oils faces limited output due to competition with food supplies.
According to Meika, Airbus estimates that by 2030 SAF will need to be sourced mainly from biomass. The company believes Indonesia could produce up to 500 million tonnes annually—five times the amount it requires. He pointed to large volumes of unused palm fruit bunches in Sumatra and Kalimantan, and rice straw in Java that is often discarded or burned.
However, Meika also highlighted challenges, including the difficulty of collecting biomass from small farmers in areas with poor infrastructure, as well as gaps in regulations and limited research on processing biomass into aviation fuel at scale. Bioenergy Times
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DOPPA urges priority for Sarawak in RM1.4 bln federal oil palm replanting fund
KUCHING (Aug 10): The Sarawak Dayak Oil Palm Planters Association (Doppa) has called for Sarawak to be given priority in the federal government’s RM1.4 billion allocation for oil palm replanting under the 13th Malaysian Plan (13MP).
Doppa president Dr Napolean R Ningkos said Sarawak is the largest contributor to Malaysia’s independent smallholder oil palm sector, with Malaysian Palm Oil Board (MPOB) 2023 data showing 256,738 hectares managed by 46,584 smallholders in the state.
“As the state with the largest oil palm area in Malaysia, it is imperative that Sarawak receives priority in terms of special allocation and targeted efforts from the Ministry of Plantation and Commodities,” he said in a statement yesterday.
His comments came in response to an announcement by Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, who revealed the federal government’s plan to invest approximately RM1.4 billion in a nationwide oil palm replanting initiative over the next five years, aimed at reinforcing Malaysia’s global position in the palm oil industry.
Napolean welcomed the initiative, describing it as a strategic move to sustain Malaysia’s palm oil industry and address the crucial need to rejuvenate ageing oil palm plantations, especially those managed by independent smallholders in Sarawak.
“With the current replanting rate at just 2 per cent, there is a risk of impacting both local and global market supply chains due to ageing palms and delays in replanting.
“Addressing this issue is crucial to maintaining Malaysia’s competitive edge in the global palm oil market,” he said.
Napolean also urged the ministry to simplify the application process to enable independent smallholders to facilitate replanting efforts immediately.
According to him, over 70 per cent of Sarawak’s independent smallholders are underproducing due to ageing palms.
“The existing process is hindered by slow land status verification, which is required before incentives and soft loans, such as those provided through Agro Bank, can be disbursed,” he explained.
Napolean suggested that the Department of Agriculture Sarawak and MPOB Sarawak could serve as effective channels for deploying replanting scheme incentives. Such collaboration, he said, would significantly expedite implementation.
He noted that the RM1.4 billion allocation could fund the replanting of about 77,000 hectares nationwide – only 9.3 per cent of the total 824,404 hectares of independent smallholder oil palm areas across Malaysia.
Additionally, Doppa suggested that smallholders who proceed with replanting on their own initiative should be rewarded with incentives, subject to MPOB verification, to speed up the process and ensure the funds meet their intended goals.
“By encouraging self-motivated replanting, we can not only accelerate the replanting process but also ensure that government grants achieve their intended objectives without wastage,” he added. The Borneo Post
---------
Animal fats in the diet may feed cancer
A recent study reveals that the type of dietary fat, rather than overall fat mass, significantly impacts cancer development in obese individuals. Animal fats like lard and beef tallow compromise anti-tumor immunity and accelerate tumor growth in mice.
A decade-long study led by Ludwig Princeton’s Lydia Lynch found how a certain dietary fat may actively suppress the immune system and accelerate tumor growth. The findings are published in Nature Metabolism.
Obesity is linked to an increased risk of at least 13 major cancers, including those of the breast, colon, and liver. Excess body fat is also linked with impaired immune response that targets tumors and is stimulated by cancer immunotherapies. However, for years, researchers have wondered whether these effects stem from the sheer adiposity, or mass of fat, in people living with obesity or from the specific dietary fats they consume. The new study provides a deep insight into this.
“Our study reveals that the source of dietary fat, not adiposity ..
Read more at:
http://timesofindia.indiatimes.com/articleshow/123018422.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
August 09, 2025
Malaysia: Indonesian workers on palm oil plantations allegedly supplying multinational brands report rights violations, incl. poverty wages, gender discrimination & precarious conditions; incl. cos. responses & non-response
A report published by Koalisi Buruh Migran Berdaulat, a coalition of civil society organisations based in Indonesia, examines the working conditions of Indonesian workers on palm oil plantations in Sabah, Malaysia.
The study focuses on three plantations where researchers conducted interviews with 26 workers and carried out field visits. The report aims to assess the living conditions of migrant workers and their families in these plantations in order to propose an appropriate living wage.
It highlights numerous labour rights abuses allegedly endured by workers, including:
The report argues that both the wages paid and the minimum wage fall significantly below what constitutes a living wage for palm oil plantation workers. Allegedly, these wages are insufficient to cover basic living expenses, as workers struggle to afford essential necessities—even when factoring in the reduced housing costs, since many workers receive housing provided by the companies. Business Human Rights
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DOPPA WELCOMES RM1.4 BLN ALLOCATION FOR OIL PALM REPLANTING UNDER 13MP
KUCHING, Aug 8 (Bernama) -- The Sarawak Dayak Oil Palm Planters Association (Doppa) said the federal government’s allocation of RM1.4 billion for oil palm replanting under the 13th Malaysia Plan (13MP) is a timely move to rejuvenate ageing plantations, particularly for independent smallholders in the state.
In a statement today, Doppa said the commitment by the Ministry of Plantation and Commodities reflects the government’s dedication to sustaining and enhancing the country’s palm oil industry.
Citing data from the Malaysian Palm Oil Board (MPOB) for 2023, it said Sarawak has 256,738 hectares of oil palm plantations managed by 46,584 independent smallholders -- the largest planted area in Malaysia.
“It is imperative that Sarawak is given priority in terms of special allocation and targeted replanting efforts,” it said, adding that the current replanting rate of only two per cent could affect both local and global supply chains if not addressed.
Doppa urged the ministry to simplify the application and approval processes, noting that over 70 per cent of independent smallholders in the state are not operating at full productivity due to ageing palms.
“Slow land status verification remains a key obstacle in releasing incentives and soft loans through Agrobank,” it said, suggesting that the Department of Agriculture Sarawak and MPOB Sarawak be utilised as channels for deploying replanting scheme incentives to speed up the process.
With the allocation, Doppa proposed a practical approach to replant about 77,000 hectares under the plan, representing 9.3 per cent of the 824,404 hectares of independent smallholders’ oil palm nationwide.
The association also suggested that incentives be provided to independent smallholders who carry out replanting on their own initiative, with the MPOB verifying completion of such efforts.
“By encouraging self-motivated replanting, the government can accelerate the process and ensure that grants achieve their intended objectives without wastage,” it added.
-- BERNAMA
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Malaysia: Indonesian workers on palm oil plantations allegedly supplying multinational brands report rights violations, incl. poverty wages, gender discrimination & precarious conditions; incl. cos. responses & non-response
A report published by Koalisi Buruh Migran Berdaulat, a coalition of civil society organisations based in Indonesia, examines the working conditions of Indonesian workers on palm oil plantations in Sabah, Malaysia.
The study focuses on three plantations where researchers conducted interviews with 26 workers and carried out field visits. The report aims to assess the living conditions of migrant workers and their families in these plantations in order to propose an appropriate living wage.
It highlights numerous labour rights abuses allegedly endured by workers, including:
- Expired documentation that has not been renewed by plantation management, according to the workers.
- Fewer than 50% of workers reportedly have formal employment contracts.
- Workers said they have to purchase their own work equipment, costs which are deducted from their wages.
- Gender-based wage disparities, with female workers reportedly earning less than male workers.
- Over 50% of workers said to be earning below the legal minimum wage, not being compensated for overtime and having their wages deducted for sick days.
- Basic necessities, such as water, food, transportation, electricity, healthcare, housing, and children’s education are reported to be inadequate or unaffordable.
The report argues that both the wages paid and the minimum wage fall significantly below what constitutes a living wage for palm oil plantation workers. Allegedly, these wages are insufficient to cover basic living expenses, as workers struggle to afford essential necessities—even when factoring in the reduced housing costs, since many workers receive housing provided by the companies. Business Human Rights
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DOPPA WELCOMES RM1.4 BLN ALLOCATION FOR OIL PALM REPLANTING UNDER 13MP
KUCHING, Aug 8 (Bernama) -- The Sarawak Dayak Oil Palm Planters Association (Doppa) said the federal government’s allocation of RM1.4 billion for oil palm replanting under the 13th Malaysia Plan (13MP) is a timely move to rejuvenate ageing plantations, particularly for independent smallholders in the state.
In a statement today, Doppa said the commitment by the Ministry of Plantation and Commodities reflects the government’s dedication to sustaining and enhancing the country’s palm oil industry.
Citing data from the Malaysian Palm Oil Board (MPOB) for 2023, it said Sarawak has 256,738 hectares of oil palm plantations managed by 46,584 independent smallholders -- the largest planted area in Malaysia.
“It is imperative that Sarawak is given priority in terms of special allocation and targeted replanting efforts,” it said, adding that the current replanting rate of only two per cent could affect both local and global supply chains if not addressed.
Doppa urged the ministry to simplify the application and approval processes, noting that over 70 per cent of independent smallholders in the state are not operating at full productivity due to ageing palms.
“Slow land status verification remains a key obstacle in releasing incentives and soft loans through Agrobank,” it said, suggesting that the Department of Agriculture Sarawak and MPOB Sarawak be utilised as channels for deploying replanting scheme incentives to speed up the process.
With the allocation, Doppa proposed a practical approach to replant about 77,000 hectares under the plan, representing 9.3 per cent of the 824,404 hectares of independent smallholders’ oil palm nationwide.
The association also suggested that incentives be provided to independent smallholders who carry out replanting on their own initiative, with the MPOB verifying completion of such efforts.
“By encouraging self-motivated replanting, the government can accelerate the process and ensure that grants achieve their intended objectives without wastage,” it added.
-- BERNAMA
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August 08, 2025
Indonesian exports to EU including palm oil and apparel to enjoy zero percent tariffs
JAKARTA – The trade ministry (Kemendag) has ensured that Indonesia’s export products, from textiles to palm oil and derivatives, will get zero percent (0%) tariff under the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), which is expected to be effective since September 2025.
“So, for example, our apparel products will get the zero tariff when the agreement starts its EIF (entry into force). Products of footwear, apparels, textiles, processed foods, and even palm oil and derivative products, will be included into the entry into force,” Kemendag’s International Trade Negotiation Director General, Djatmiko Bris Witjaksono, was quoted by Antara as saying on Monday (4/8/2025).
He said that the scope of IEU-CEPA includes the market access of goods. Optimum market access is given to products with comparative advantage, such as footwear, textiles and textile products, fishery, processed foods, palm oil and derivatives (including biodiesel), electronics, agricultural and forestry products and steel.
The IEU-CEPA, which is the most comprehensive bilateral trade agreement achieved by Indonesia, consists of 25 chapters and covers aspects of liberalization, trade facilities, cooperation and new issues.
Djatmiko said that by considering the commitment, 98% of all tariff posts will get preferences. “So, only a few are exempted by EU,” he said.
“I think in terms of total value of EU’s imports from Indonesia already reached 100%. In terms of our exports, 99% of all of our exports to EU will get preferences. It will be realized in different times, but almost all within the EIF. But negotiations are still underway regarding which goods will get it within the third year and which goods will be on the fifth year,” he said.
“We want it that all of our goods will get it directly upon EIF. Let’s just pray that all products of Indonesia will get the same chance at initial stage,” he said.
Signed in September
Economic Coordinating Minister Airlangga Hartarto said that the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) will be signed in September 2025.
“Regarding the IEU-CEPA, we’re confident that we will sign it in September and we’ll finalize all documents. I’ve discussed it with EU Commissioner Maros Sefcovic. He has planned to come to Jakarta in September to sign the document,” Airlangga said at the office building of his ministry on Friday (01/08/2025).
He said that based on the trade agreement of IEU-CEPA, Indonesia will get import tariff of zero percent for crude palm oil (CPO) and Palm Kernel Oil (PKO) and derivative products entering the EU market.
Overall under the IEU-CEPA, around 80% of tariff posts will be zero percent, opening bigger opportunities of trade and investments for both sides of Indonesia and EU.
“I think for Indonesia, under the trade agreement we agree that two commodities, namely CPO and PKO will be charged with zero percent tariff. We also agree the quota, for CPO around one (1) million tons and for PKO, I think will depend on the volume of our PKO export last year to EU,” said Airlangga.
But Minister Airlangga said that so far there has been no plan of biodiesel export to EU under the IEU-CEPA. “Regarding the biodiesel, we haven’t yet discussed it, as currently we don’t export biodiesel. We only produce the biodiesel for domestic consumption” he said.
Having a total population of more than 285 million people, Indonesia offers a potential big market for EU. On the other side, EU member countries have a total population of more than 400 million people and stands as one of the global economic powers. (*) GAPKI
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Trump’s 19% Tariffs on Indonesia Officially Kick In
Jakarta. US President Donald Trump’s 19 percent tariffs on Indonesian goods officially kicked in on Thursday, just after the clock struck midnight in Washington.
The Indonesian government has yet to issue a statement following the hikes. While Indonesia has accepted the 19 percent rate as “final and binding”, Jakarta has been trying to convince the Trump government to lower the import tax on certain imports that the US can’t produce on its own. This includes nickel, palm oil, cacao and coffee.
Just a day before the new tariffs entered into force, Investment Minister Rosan Roeslani revealed that the US had agreed to grant 0 percent tariffs on Indonesian copper. He, however, did not say whether the zero tariff on copper would take effect on August 7 or another date.
“Seems like they [the US] will reduce the tariffs on nickel as well. Maybe not 0 percent, but far below 19 percent,” Rosan told a business forum in Jakarta on Wednesday evening.
Chief negotiator Airlangga Hartarto also did not comment much on the tariff cut negotiations for palm oil earlier that day, only saying that it was still “in process”.
Trump believes that imposing sweeping tariffs across the world can fix the US’ hefty trade deficit. His team reported that the US’ trade imbalance with Indonesia totaled $17.9 billion in 2024, up by 5.7 percent year-on-year (yoy).
Trump started out by slapping a baseline 10 percent tariff on Washington’s trading partners in April, while at the same time threatening steeper tariffs on countries that he accused of unfair trade, Jakarta included. Indonesia was supposed to face a tariff increase to 32 percent, but Trump decided to delay the hikes at the very last minute by 90 days to buy time for negotiations.
He even penned a letter to President Prabowo Subianto in July, notifying the latter that Washington would proceed with the plan if Jakarta fails to clinch a trade deal by August. Trump finally agreed to lower the rate to 19 percent on Indonesia after Prabowo made some major trade concessions, including a commitment to import $15 billion worth of American energy products. Indonesia also agreed to get rid of 99 percent of tariff barriers for American industrial and food products.
In an executive order signed by Trump on July 31, the former real estate tycoon announced that the new country-specific tariffs would be effective seven days later or August 7.
Tariffs on other countries also came into force on the same day. These include Cambodia at 19 percent, the European Union at 15 percent, Japan at 15 percent, South Korea at 15 percent, Thailand at 19 percent, and Vietnam at 20 percent. Jakarta Globe
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India and Indonesia sign three-year agreement for food security through sustainable palm oil trade
The Indian Vegetable Oil Producers’ Association (IVPA) and the Indonesian Palm Oil Association (GAPKI) have signed a three-year agreement to deepen economic ties and ensure food security, Free Press Journal reported.
Signed on 24 July, the memorandum of understanding (MoU)’s aim was to strengthen collaboration in the palm oil sector, which formed the backbone of the edible oil trade between the two nations, the 25 July report said.
India imports over 60% of its edible oil requirements, with Indonesia its largest palm oil supplier for more than a decade, according to the Solvent Extractors’ Association of India (SEA).
The agreement focused on sustainable practices and stable supply chains, with five key areas of cooperation: technical exchange and research & development; sustainability initiatives; policy coordination; food security measures and market intelligence sharing, Free Press Journal wrote.
Both associations would focus on promoting certified sustainable palm oil (CSPO) while including smallholder farmers in the value chain, the report said.
“We look forward to advancing India’s food security and climate goals through a reliable, responsibly sourced palm oil supply,” GAPKI head of foreign affairs Fadhil Hasan said.
“While challenges like smallholder compliance remain, this partnership will drive innovation and inclusive policies for a resilient supply chain.”
GAPKI chairman Eddy Martono highlighted the strong bilateral trade relationship between the countries.
“In 2024, our bilateral trade reached US$26bn, including US$20.3bn in exports from Indonesia to India and US$5.7bn in imports from India, leading to a trade surplus of US$14.6bn in Indonesia’s favour,” he said.
Palm oil and its derivatives accounted for US$4.4bn of that total, Martono added. OFI Magazine
Indonesian exports to EU including palm oil and apparel to enjoy zero percent tariffs
JAKARTA – The trade ministry (Kemendag) has ensured that Indonesia’s export products, from textiles to palm oil and derivatives, will get zero percent (0%) tariff under the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), which is expected to be effective since September 2025.
“So, for example, our apparel products will get the zero tariff when the agreement starts its EIF (entry into force). Products of footwear, apparels, textiles, processed foods, and even palm oil and derivative products, will be included into the entry into force,” Kemendag’s International Trade Negotiation Director General, Djatmiko Bris Witjaksono, was quoted by Antara as saying on Monday (4/8/2025).
He said that the scope of IEU-CEPA includes the market access of goods. Optimum market access is given to products with comparative advantage, such as footwear, textiles and textile products, fishery, processed foods, palm oil and derivatives (including biodiesel), electronics, agricultural and forestry products and steel.
The IEU-CEPA, which is the most comprehensive bilateral trade agreement achieved by Indonesia, consists of 25 chapters and covers aspects of liberalization, trade facilities, cooperation and new issues.
Djatmiko said that by considering the commitment, 98% of all tariff posts will get preferences. “So, only a few are exempted by EU,” he said.
“I think in terms of total value of EU’s imports from Indonesia already reached 100%. In terms of our exports, 99% of all of our exports to EU will get preferences. It will be realized in different times, but almost all within the EIF. But negotiations are still underway regarding which goods will get it within the third year and which goods will be on the fifth year,” he said.
“We want it that all of our goods will get it directly upon EIF. Let’s just pray that all products of Indonesia will get the same chance at initial stage,” he said.
Signed in September
Economic Coordinating Minister Airlangga Hartarto said that the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) will be signed in September 2025.
“Regarding the IEU-CEPA, we’re confident that we will sign it in September and we’ll finalize all documents. I’ve discussed it with EU Commissioner Maros Sefcovic. He has planned to come to Jakarta in September to sign the document,” Airlangga said at the office building of his ministry on Friday (01/08/2025).
He said that based on the trade agreement of IEU-CEPA, Indonesia will get import tariff of zero percent for crude palm oil (CPO) and Palm Kernel Oil (PKO) and derivative products entering the EU market.
Overall under the IEU-CEPA, around 80% of tariff posts will be zero percent, opening bigger opportunities of trade and investments for both sides of Indonesia and EU.
“I think for Indonesia, under the trade agreement we agree that two commodities, namely CPO and PKO will be charged with zero percent tariff. We also agree the quota, for CPO around one (1) million tons and for PKO, I think will depend on the volume of our PKO export last year to EU,” said Airlangga.
But Minister Airlangga said that so far there has been no plan of biodiesel export to EU under the IEU-CEPA. “Regarding the biodiesel, we haven’t yet discussed it, as currently we don’t export biodiesel. We only produce the biodiesel for domestic consumption” he said.
Having a total population of more than 285 million people, Indonesia offers a potential big market for EU. On the other side, EU member countries have a total population of more than 400 million people and stands as one of the global economic powers. (*) GAPKI
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Trump’s 19% Tariffs on Indonesia Officially Kick In
Jakarta. US President Donald Trump’s 19 percent tariffs on Indonesian goods officially kicked in on Thursday, just after the clock struck midnight in Washington.
The Indonesian government has yet to issue a statement following the hikes. While Indonesia has accepted the 19 percent rate as “final and binding”, Jakarta has been trying to convince the Trump government to lower the import tax on certain imports that the US can’t produce on its own. This includes nickel, palm oil, cacao and coffee.
Just a day before the new tariffs entered into force, Investment Minister Rosan Roeslani revealed that the US had agreed to grant 0 percent tariffs on Indonesian copper. He, however, did not say whether the zero tariff on copper would take effect on August 7 or another date.
“Seems like they [the US] will reduce the tariffs on nickel as well. Maybe not 0 percent, but far below 19 percent,” Rosan told a business forum in Jakarta on Wednesday evening.
Chief negotiator Airlangga Hartarto also did not comment much on the tariff cut negotiations for palm oil earlier that day, only saying that it was still “in process”.
Trump believes that imposing sweeping tariffs across the world can fix the US’ hefty trade deficit. His team reported that the US’ trade imbalance with Indonesia totaled $17.9 billion in 2024, up by 5.7 percent year-on-year (yoy).
Trump started out by slapping a baseline 10 percent tariff on Washington’s trading partners in April, while at the same time threatening steeper tariffs on countries that he accused of unfair trade, Jakarta included. Indonesia was supposed to face a tariff increase to 32 percent, but Trump decided to delay the hikes at the very last minute by 90 days to buy time for negotiations.
He even penned a letter to President Prabowo Subianto in July, notifying the latter that Washington would proceed with the plan if Jakarta fails to clinch a trade deal by August. Trump finally agreed to lower the rate to 19 percent on Indonesia after Prabowo made some major trade concessions, including a commitment to import $15 billion worth of American energy products. Indonesia also agreed to get rid of 99 percent of tariff barriers for American industrial and food products.
In an executive order signed by Trump on July 31, the former real estate tycoon announced that the new country-specific tariffs would be effective seven days later or August 7.
Tariffs on other countries also came into force on the same day. These include Cambodia at 19 percent, the European Union at 15 percent, Japan at 15 percent, South Korea at 15 percent, Thailand at 19 percent, and Vietnam at 20 percent. Jakarta Globe
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India and Indonesia sign three-year agreement for food security through sustainable palm oil trade
The Indian Vegetable Oil Producers’ Association (IVPA) and the Indonesian Palm Oil Association (GAPKI) have signed a three-year agreement to deepen economic ties and ensure food security, Free Press Journal reported.
Signed on 24 July, the memorandum of understanding (MoU)’s aim was to strengthen collaboration in the palm oil sector, which formed the backbone of the edible oil trade between the two nations, the 25 July report said.
India imports over 60% of its edible oil requirements, with Indonesia its largest palm oil supplier for more than a decade, according to the Solvent Extractors’ Association of India (SEA).
The agreement focused on sustainable practices and stable supply chains, with five key areas of cooperation: technical exchange and research & development; sustainability initiatives; policy coordination; food security measures and market intelligence sharing, Free Press Journal wrote.
Both associations would focus on promoting certified sustainable palm oil (CSPO) while including smallholder farmers in the value chain, the report said.
“We look forward to advancing India’s food security and climate goals through a reliable, responsibly sourced palm oil supply,” GAPKI head of foreign affairs Fadhil Hasan said.
“While challenges like smallholder compliance remain, this partnership will drive innovation and inclusive policies for a resilient supply chain.”
GAPKI chairman Eddy Martono highlighted the strong bilateral trade relationship between the countries.
“In 2024, our bilateral trade reached US$26bn, including US$20.3bn in exports from Indonesia to India and US$5.7bn in imports from India, leading to a trade surplus of US$14.6bn in Indonesia’s favour,” he said.
Palm oil and its derivatives accounted for US$4.4bn of that total, Martono added. OFI Magazine
August 07, 2025
In Malaysia’s palm oil heartland, smallholders are redefining what it means to grow responsibly
As the palm oil industry evolves, Malaysia’s smallholders are helping shape a more sustainable future, grounded in collaboration and community.
On Carey Island, Malaysia, the sun shines down on rows of oil palm trees across a 21-acre farm. Here, Reta Lajah and her husband tend to their land—gathering fallen fruits and pruning trees—and enjoy peaceful weekends with the company of their children and grandchildren.
Lajah is one of 450,000 smallholders who have become vital contributors to an industry long dominated by large corporations since oil palm farming first took root in Malaysia in 1917. Today, that landscape has evolved, with smallholders accounting for 26% of the country’s palm oil supply, providing a stable livelihood for many rural families.
Land of opportunity
Lajah’s journey as a palm oil farmer began when she was just 17 years old, working on the largest plantation in her hometown. A member of the Mah Meri—one of Peninsular Malaysia’s 18 indigenous groups—she received her own plot of land in the early 2000s through a government program. But the path wasn’t easy. “We cleared and planted everything,” she recalls. “No machines, just our hands and tools. It was very hard work.”
As smallholder farming gradually spread in her village, the community began to diversify beyond its traditional reliance on fishing—an industry that, as Lajah points out, can be unstable during certain seasons. The shift opened up new income opportunities and a more stable livelihood for many families.
Still, across Malaysia, women remain significantly underrepresented, making up 20% to 25% of the country’s palm oil plantation workforce. In Lajah’s village, she is just one of two female farm owners. She believes more women could step into this space with the right training, support, and access to knowledge.
A long road to reform
In past decades, palm oil expansion was associated with forest loss, but following successful campaigns for change and targeted reform efforts, that trend has been reversing in Malaysia. Between 2012 and 2024, deforestation in Malaysia dropped by over 70%—a decline driven by strengthened government regulations, voluntary corporate commitments—including No Deforestation, No Peat, No Exploitation (NDPE) policies—sustainability reporting, and increased industry transparency.
Central to this progress is the Malaysian Sustainable Palm Oil (MSPO) certification, a national scheme introduced in 2013 to raise standards and promote more responsible practices. Now mandatory, MSPO certification covers environmental protection, labor rights, and the ability to trace the palm oil product to a sustainable source. For smallholders like Lajah, it also unlocks access to global markets by demonstrating a commitment to sustainability.
Malaysian palm oil is also one of the world’s largest producers of Certified Sustainable Palm Oil (CSPO), with steady growth in the number of smallholders and production areas independently audited and meeting the internationally recognized standard. In Sabah, the local government launched an initiative a decade ago to support oil palm growers in pursuing CSPO certification, with the aim of aligning local production with international standards and improving access to global markets. CNN
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The EU wants to finalize a trade deal with Indonesia by September. Can it?
Donald Trump’s tariff pressure has motivated Brussels and Jakarta to launch a decisive push after nine years of talks.
BRUSSELS — When Donald Trump threatened the European Union with 30 percent tariffs, Ursula von der Leyen didn’t take the bait. She looked east instead of west and quickly announced a "political agreement" on a trade deal with Indonesia, the fourth-most-populous country in the world, after nine years and 19 negotiating rounds.
That’s no coincidence.
Responding to the U.S. president’s trade threat, which landed on July 12, a Saturday, the head of the European Commission said: “We continue to deepen our global partnerships, firmly anchored in the principles of rules-based international trade.”
The next day, von der Leyen hosted Indonesian President Prabowo Subianto for a photo-op in Brussels, declaring that “Europe and Indonesia are choosing a path of openness, partnership, and shared prosperity.”
Prabowo, who apologized for disturbing von der Leyen on a Sunday, said “the agreement must support our efforts to grow our industries, create jobs, and strengthen our sustainable development goals.”
However, Indonesia’s long list of import restrictions, unpredictable regulations, raw material bans and refusal to implement World Trade Organization judgments have made it a difficult partner to deal with. Does the political declaration mean that Jakarta is really ready to turn the page?
And what exactly does a “political agreement to advance the trade agreement” even signify? It’s not a conclusion of talks, let alone a signature.
Hosuk Lee-Makiyama, a Swedish former trade diplomat who now heads the European Centre for International Political Economy, says it just means the leaders have “the intention to conclude the negotiations.”
“It doesn’t mean that they are done,” he told POLITICO. “We instruct our negotiators: ‘Get it done. Give me a compromise that I can sell.’ ”
A firm path
Fabian Gehl, who is leading the EU’s trade negotiations with Indonesia, told European lawmakers that the political agreement “sets a firm path for closing all the remaining gaps in the coming weeks and land[ing] a full agreement by September.”
But given that the tumultuous talks have stretched over almost 20 rounds and nearly a decade, it remains unclear whether both sides can realistically meet that timeline to finalize the Indonesia–European Union Comprehensive Economic Partnership Agreement — or IEU CEPA.
Just two days after von der Leyen met with Prabowo, Trump announced his own deal with Indonesia, agreeing to a 19 percent tariff on its exports to the U.S. For American exports? No tariffs.
The European Parliament’s lead lawmaker on the talks, Iuliu Winkler — who is also deputy chair of its trade committee — considers the September deadline “quite feasible.”
“To my knowledge, the resolution of all the outstanding technical issues by the negotiators is doable by then,” the Romanian Christian Democrat told POLITICO, stressing the need to meet the target date “in a global context of escalating trade volatility.”
The talk in the Brussels trade bubble is that a third of the trade agreement's chapters are still on the table — energy and raw materials, import licensing, trade and sustainable development — while services are partially up for debate.
Commission spokesperson Olof Gill told POLITICO that the EU needs “to fine-tune the details” on market access for the key products remaining.
“We have already secured an extremely ambitious level of liberalization in terms of volumes and tariff lines, and we are now focusing on further improving the treatment for key products for the EU (and for Indonesia). We will continue to ensure a careful handling of sensitive products for the EU,” Gill said.
A spokesperson for the Mission of Indonesia to the EU told POLITICO they were “optimistic” that a deal can be done by September.
An end to ultra-protectionism?
Cecilia Malmström, who served as EU trade commissioner from 2014-2019, is surprised by the reported progress in the talks.
“During my time as trade commissioner, they advanced very slowly,” she recalled to POLITICO. Indonesia has now realized “it has to leave its ultra-protectionist line,” she said.
The Swedish politician said the trade and sustainable development (TSD) chapter of the accord would be a particularly difficult one to solve. “I don’t know if September is realistic,” she said, “but people close to the negotiations claim that the end of this year is definitely possible.” Politico
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Top nine retailers in Europe committing to sustainable palm oil
Nine major European retailers are ranked among the EU’s highest scoring members for their commitment to advancing certified sustainable palm oil (CSPO), European Supermarket Magazine wrote.
The retailers – Marks & Spencer, Edeka, John Lewis Partnership, IKEA, Greggs, Bidfood, Co-op and REWE – emerged as the top performers in their sector on the Roundtable on Sustainable Palm Oil (RSPO)’s Shared Responsibility Scorecard, the 24 July report said.
The scorecard shows where organisations are in their sustainability journey based on the RSPO’s Shared Responsibility (SR) framework. Scores are updated annually.
The SR framework and its requirements apply to processors and traders (P&T), consumer goods manufacturers (CGM), retailers, banks and financial institutions, environmental NGOs, and social NGOs.
All RSPO members had a shared responsibility to make palm oil sustainable - grower members by implementing the RSPO standards in their production of oil palm, and non-grower members by stimulating demand for sustainable palm oil, the report said.
Each member sector has specific shared responsibility requirements that ordinary RSPO members must apply.
For retailers, these are across five areas: Transparency and legality; social; environmental; resourcing and CSPO uptake.
In 2024, 67% of RSPO retailer members fulfilled their commitment to increase their CSPO uptake, European Supermarket Magazine wrote. OFI Magazine
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Palm Oil Transforms Many Remote Areas To New Growth Centers in Indonesia
Palm oil is often blamed to have caused environmental damage and contributed just small to regional economic development. But the latest facts show that it is otherwise.
The palm oil has been proven to have generated the growth of local economies, especially those in the least developed areas. Usually developed in remote areas, the oil palm plantations have opened the villagers’ access to better infrastructure, raised the income of farmers, and pushed up the gross regional domestic product (PDRB) significantly.
Based on the research conducted by the Palm Oil Agribusiness Strategic Policy Institute (PASPI 2023), there had been at least 50 least developed areas that had been transformed into new centers of economic growth based on the oil palm plantations.
The oil palm plantations were initially developed in remote, isolated, and marginalized areas. But then the existence of oil palm plantations, palm oil mills, guaranteed market for palm fresh fruit bunches (FFB), and the increase of smallholders’ productivity had gradually transformed the areas into a new magnet that attracted other business players to take advantage of doing other supportive businesses and developing infrastructure and facilities.
The results?
The economic activities generated by the oil palm plantations have pushed up the growth of gross regional domestic product significantly. Data collected from the palm producing areas shows the following facts:
-Palm producing regencies saw higher and faster PDRB growth compared to other areas.
-Compared to non-palm oil producing areas, the trend of economic growth in the palm producing areas show a consistent acceleration.
It has proven that palm oil is not just an agricultural commodity, but the driver of local economic growth.
50 isolated areas transformed into new growth centers
Areas that were used to be isolated but now had been transformed into new centers of economic growth include: GAPKI
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New report by EIA and Indonesian partner Kaoem Telapak accuses Fangiono family of violations
A new report by EIA and our Indonesian partner Kaoem Telapak lays bare alleged deforestation, corruption and human rights violations by companies in Indonesia’s palm oil sector which all have one thing in common – the Fangiono family.
The report A Family Affair – Ongoing allegations of deforestation, corruption and human rights violations in Indonesia’s palm oil industry shows how the family’s connections reach into a multitude of palm oil companies in the country and catalogues some of the worst, ongoing violations of which they are accused.
EIA Senior Forests Campaigner Siobhan Pearce said: “The Fangiono family’s activities are spread far and wide across Indonesia’s palm oil industry and all too often we find routine, flagrant violations of the law, human rights and the environment.
“These activities are a stain on the sector’s reputation. Numerous reports by NGOs over the years have exposed the opaque corporate layers of the family’s companies and their alleged environmental and social harms, yet their operations and violations have continued.
“The Government of Indonesia, buyers and investors need to take prompt and decisive action. Our report A Family Affair offers a clear place to start and a wealth of pertinent information.”
Indonesia is the world’s biggest producer of palm oil, a substance used in thousands of everyday items such as food stuffs, cleaning products and shampoos and well as in biofuels.
It is a hugely lucrative industry, with exports of palm oil and related products worth almost $28 billion in 2024.
The Fangiono family, through a web of family members, is linked to an ever-increasing number of palm oil companies and other businesses in Indonesia. These are variously accused of deforestation, land-grabs, corruption, operating without proper permits and conflicts with local and indigenous people, with evidence suggesting these are continuing and even expanding issues.
The Fangiono family is headed up by its patriarch – known by his first name, Martias – who was convicted in 2007 of obtaining palm oil permits through bribery and corruption. He was fined more than $38 million and jailed for one-and-a-half years.
But today the family operates across several major corporate groups, including First Resources, FAP Agri and Ciliandry Anky Abadi, in which Martias’ relatives have key positions.
The report’s case studies span the different groups across the Indonesian regions of Sumatra, Kalimantan and Papua, which not only represent different ecological zones but also host distinct indigenous populations and present different legal and political challenges.
Allegations of control of a network of shadow companies, accused of some of the most serious deforestation and violations of communities’ rights, have been largely denied by First Resources and FAP Agri, both of which have sustainability policies. Prominent brands, including Unilever and PepsiCo, are reported to have suspended sourcing palm oil from them due to the allegations.
First Resources is also a member of the Roundtable on Sustainable Palm Oil (RSPO) – one of the most well-known certification schemes intended to assure consumers that palm oil is produced ethically.
Following a complaint made to the RSPO in 2021 alleging that First Resources controls other groups, the RSPO ruled on 1 August 2025 to suspend First Resources’ membership for three months after finding it had not been open and transparent. Although the RSPO has not ruled that First Resources controls other groups, the watchdog has previously failed to address similar complaints and company ownership is partly hidden in offshore jurisdictions.
In A Family Affair, EIA and its long-term regional partner Kaoem Telapak outline how the number of businesses linked to the family continues to grow and present ongoing allegations of illegal activities, human rights violations and environmental destruction connected with them. EIA
In Malaysia’s palm oil heartland, smallholders are redefining what it means to grow responsibly
As the palm oil industry evolves, Malaysia’s smallholders are helping shape a more sustainable future, grounded in collaboration and community.
On Carey Island, Malaysia, the sun shines down on rows of oil palm trees across a 21-acre farm. Here, Reta Lajah and her husband tend to their land—gathering fallen fruits and pruning trees—and enjoy peaceful weekends with the company of their children and grandchildren.
Lajah is one of 450,000 smallholders who have become vital contributors to an industry long dominated by large corporations since oil palm farming first took root in Malaysia in 1917. Today, that landscape has evolved, with smallholders accounting for 26% of the country’s palm oil supply, providing a stable livelihood for many rural families.
Land of opportunity
Lajah’s journey as a palm oil farmer began when she was just 17 years old, working on the largest plantation in her hometown. A member of the Mah Meri—one of Peninsular Malaysia’s 18 indigenous groups—she received her own plot of land in the early 2000s through a government program. But the path wasn’t easy. “We cleared and planted everything,” she recalls. “No machines, just our hands and tools. It was very hard work.”
As smallholder farming gradually spread in her village, the community began to diversify beyond its traditional reliance on fishing—an industry that, as Lajah points out, can be unstable during certain seasons. The shift opened up new income opportunities and a more stable livelihood for many families.
Still, across Malaysia, women remain significantly underrepresented, making up 20% to 25% of the country’s palm oil plantation workforce. In Lajah’s village, she is just one of two female farm owners. She believes more women could step into this space with the right training, support, and access to knowledge.
A long road to reform
In past decades, palm oil expansion was associated with forest loss, but following successful campaigns for change and targeted reform efforts, that trend has been reversing in Malaysia. Between 2012 and 2024, deforestation in Malaysia dropped by over 70%—a decline driven by strengthened government regulations, voluntary corporate commitments—including No Deforestation, No Peat, No Exploitation (NDPE) policies—sustainability reporting, and increased industry transparency.
Central to this progress is the Malaysian Sustainable Palm Oil (MSPO) certification, a national scheme introduced in 2013 to raise standards and promote more responsible practices. Now mandatory, MSPO certification covers environmental protection, labor rights, and the ability to trace the palm oil product to a sustainable source. For smallholders like Lajah, it also unlocks access to global markets by demonstrating a commitment to sustainability.
Malaysian palm oil is also one of the world’s largest producers of Certified Sustainable Palm Oil (CSPO), with steady growth in the number of smallholders and production areas independently audited and meeting the internationally recognized standard. In Sabah, the local government launched an initiative a decade ago to support oil palm growers in pursuing CSPO certification, with the aim of aligning local production with international standards and improving access to global markets. CNN
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The EU wants to finalize a trade deal with Indonesia by September. Can it?
Donald Trump’s tariff pressure has motivated Brussels and Jakarta to launch a decisive push after nine years of talks.
BRUSSELS — When Donald Trump threatened the European Union with 30 percent tariffs, Ursula von der Leyen didn’t take the bait. She looked east instead of west and quickly announced a "political agreement" on a trade deal with Indonesia, the fourth-most-populous country in the world, after nine years and 19 negotiating rounds.
That’s no coincidence.
Responding to the U.S. president’s trade threat, which landed on July 12, a Saturday, the head of the European Commission said: “We continue to deepen our global partnerships, firmly anchored in the principles of rules-based international trade.”
The next day, von der Leyen hosted Indonesian President Prabowo Subianto for a photo-op in Brussels, declaring that “Europe and Indonesia are choosing a path of openness, partnership, and shared prosperity.”
Prabowo, who apologized for disturbing von der Leyen on a Sunday, said “the agreement must support our efforts to grow our industries, create jobs, and strengthen our sustainable development goals.”
However, Indonesia’s long list of import restrictions, unpredictable regulations, raw material bans and refusal to implement World Trade Organization judgments have made it a difficult partner to deal with. Does the political declaration mean that Jakarta is really ready to turn the page?
And what exactly does a “political agreement to advance the trade agreement” even signify? It’s not a conclusion of talks, let alone a signature.
Hosuk Lee-Makiyama, a Swedish former trade diplomat who now heads the European Centre for International Political Economy, says it just means the leaders have “the intention to conclude the negotiations.”
“It doesn’t mean that they are done,” he told POLITICO. “We instruct our negotiators: ‘Get it done. Give me a compromise that I can sell.’ ”
A firm path
Fabian Gehl, who is leading the EU’s trade negotiations with Indonesia, told European lawmakers that the political agreement “sets a firm path for closing all the remaining gaps in the coming weeks and land[ing] a full agreement by September.”
But given that the tumultuous talks have stretched over almost 20 rounds and nearly a decade, it remains unclear whether both sides can realistically meet that timeline to finalize the Indonesia–European Union Comprehensive Economic Partnership Agreement — or IEU CEPA.
Just two days after von der Leyen met with Prabowo, Trump announced his own deal with Indonesia, agreeing to a 19 percent tariff on its exports to the U.S. For American exports? No tariffs.
The European Parliament’s lead lawmaker on the talks, Iuliu Winkler — who is also deputy chair of its trade committee — considers the September deadline “quite feasible.”
“To my knowledge, the resolution of all the outstanding technical issues by the negotiators is doable by then,” the Romanian Christian Democrat told POLITICO, stressing the need to meet the target date “in a global context of escalating trade volatility.”
The talk in the Brussels trade bubble is that a third of the trade agreement's chapters are still on the table — energy and raw materials, import licensing, trade and sustainable development — while services are partially up for debate.
Commission spokesperson Olof Gill told POLITICO that the EU needs “to fine-tune the details” on market access for the key products remaining.
“We have already secured an extremely ambitious level of liberalization in terms of volumes and tariff lines, and we are now focusing on further improving the treatment for key products for the EU (and for Indonesia). We will continue to ensure a careful handling of sensitive products for the EU,” Gill said.
A spokesperson for the Mission of Indonesia to the EU told POLITICO they were “optimistic” that a deal can be done by September.
An end to ultra-protectionism?
Cecilia Malmström, who served as EU trade commissioner from 2014-2019, is surprised by the reported progress in the talks.
“During my time as trade commissioner, they advanced very slowly,” she recalled to POLITICO. Indonesia has now realized “it has to leave its ultra-protectionist line,” she said.
The Swedish politician said the trade and sustainable development (TSD) chapter of the accord would be a particularly difficult one to solve. “I don’t know if September is realistic,” she said, “but people close to the negotiations claim that the end of this year is definitely possible.” Politico
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Top nine retailers in Europe committing to sustainable palm oil
Nine major European retailers are ranked among the EU’s highest scoring members for their commitment to advancing certified sustainable palm oil (CSPO), European Supermarket Magazine wrote.
The retailers – Marks & Spencer, Edeka, John Lewis Partnership, IKEA, Greggs, Bidfood, Co-op and REWE – emerged as the top performers in their sector on the Roundtable on Sustainable Palm Oil (RSPO)’s Shared Responsibility Scorecard, the 24 July report said.
The scorecard shows where organisations are in their sustainability journey based on the RSPO’s Shared Responsibility (SR) framework. Scores are updated annually.
The SR framework and its requirements apply to processors and traders (P&T), consumer goods manufacturers (CGM), retailers, banks and financial institutions, environmental NGOs, and social NGOs.
All RSPO members had a shared responsibility to make palm oil sustainable - grower members by implementing the RSPO standards in their production of oil palm, and non-grower members by stimulating demand for sustainable palm oil, the report said.
Each member sector has specific shared responsibility requirements that ordinary RSPO members must apply.
For retailers, these are across five areas: Transparency and legality; social; environmental; resourcing and CSPO uptake.
In 2024, 67% of RSPO retailer members fulfilled their commitment to increase their CSPO uptake, European Supermarket Magazine wrote. OFI Magazine
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Palm Oil Transforms Many Remote Areas To New Growth Centers in Indonesia
Palm oil is often blamed to have caused environmental damage and contributed just small to regional economic development. But the latest facts show that it is otherwise.
The palm oil has been proven to have generated the growth of local economies, especially those in the least developed areas. Usually developed in remote areas, the oil palm plantations have opened the villagers’ access to better infrastructure, raised the income of farmers, and pushed up the gross regional domestic product (PDRB) significantly.
Based on the research conducted by the Palm Oil Agribusiness Strategic Policy Institute (PASPI 2023), there had been at least 50 least developed areas that had been transformed into new centers of economic growth based on the oil palm plantations.
The oil palm plantations were initially developed in remote, isolated, and marginalized areas. But then the existence of oil palm plantations, palm oil mills, guaranteed market for palm fresh fruit bunches (FFB), and the increase of smallholders’ productivity had gradually transformed the areas into a new magnet that attracted other business players to take advantage of doing other supportive businesses and developing infrastructure and facilities.
The results?
- Road and market access opened
- Mobility of local economy increased
- The rise of new businesses as related or supporting businesses
- Income of oil palm farmers reached around Rp30 million per year
- Income of non-oil palm farmers lagged far behind that of oil palm farmers
The economic activities generated by the oil palm plantations have pushed up the growth of gross regional domestic product significantly. Data collected from the palm producing areas shows the following facts:
-Palm producing regencies saw higher and faster PDRB growth compared to other areas.
-Compared to non-palm oil producing areas, the trend of economic growth in the palm producing areas show a consistent acceleration.
It has proven that palm oil is not just an agricultural commodity, but the driver of local economic growth.
50 isolated areas transformed into new growth centers
Areas that were used to be isolated but now had been transformed into new centers of economic growth include: GAPKI
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New report by EIA and Indonesian partner Kaoem Telapak accuses Fangiono family of violations
A new report by EIA and our Indonesian partner Kaoem Telapak lays bare alleged deforestation, corruption and human rights violations by companies in Indonesia’s palm oil sector which all have one thing in common – the Fangiono family.
The report A Family Affair – Ongoing allegations of deforestation, corruption and human rights violations in Indonesia’s palm oil industry shows how the family’s connections reach into a multitude of palm oil companies in the country and catalogues some of the worst, ongoing violations of which they are accused.
EIA Senior Forests Campaigner Siobhan Pearce said: “The Fangiono family’s activities are spread far and wide across Indonesia’s palm oil industry and all too often we find routine, flagrant violations of the law, human rights and the environment.
“These activities are a stain on the sector’s reputation. Numerous reports by NGOs over the years have exposed the opaque corporate layers of the family’s companies and their alleged environmental and social harms, yet their operations and violations have continued.
“The Government of Indonesia, buyers and investors need to take prompt and decisive action. Our report A Family Affair offers a clear place to start and a wealth of pertinent information.”
Indonesia is the world’s biggest producer of palm oil, a substance used in thousands of everyday items such as food stuffs, cleaning products and shampoos and well as in biofuels.
It is a hugely lucrative industry, with exports of palm oil and related products worth almost $28 billion in 2024.
The Fangiono family, through a web of family members, is linked to an ever-increasing number of palm oil companies and other businesses in Indonesia. These are variously accused of deforestation, land-grabs, corruption, operating without proper permits and conflicts with local and indigenous people, with evidence suggesting these are continuing and even expanding issues.
The Fangiono family is headed up by its patriarch – known by his first name, Martias – who was convicted in 2007 of obtaining palm oil permits through bribery and corruption. He was fined more than $38 million and jailed for one-and-a-half years.
But today the family operates across several major corporate groups, including First Resources, FAP Agri and Ciliandry Anky Abadi, in which Martias’ relatives have key positions.
The report’s case studies span the different groups across the Indonesian regions of Sumatra, Kalimantan and Papua, which not only represent different ecological zones but also host distinct indigenous populations and present different legal and political challenges.
Allegations of control of a network of shadow companies, accused of some of the most serious deforestation and violations of communities’ rights, have been largely denied by First Resources and FAP Agri, both of which have sustainability policies. Prominent brands, including Unilever and PepsiCo, are reported to have suspended sourcing palm oil from them due to the allegations.
First Resources is also a member of the Roundtable on Sustainable Palm Oil (RSPO) – one of the most well-known certification schemes intended to assure consumers that palm oil is produced ethically.
Following a complaint made to the RSPO in 2021 alleging that First Resources controls other groups, the RSPO ruled on 1 August 2025 to suspend First Resources’ membership for three months after finding it had not been open and transparent. Although the RSPO has not ruled that First Resources controls other groups, the watchdog has previously failed to address similar complaints and company ownership is partly hidden in offshore jurisdictions.
In A Family Affair, EIA and its long-term regional partner Kaoem Telapak outline how the number of businesses linked to the family continues to grow and present ongoing allegations of illegal activities, human rights violations and environmental destruction connected with them. EIA
August 06, 2025
Indonesia, US Still Negotiate Tariff Cuts for Palm Oil Ahead of Tomorrow’s Deadline
Jakarta. Indonesia and the US are still negotiating lower tariffs on palm oil although it is only one day away before Washington’s duty hikes come into effect.
US President Donald Trump will soon impose 19 percent tariffs on US-bound Indonesian goods on August 7 or tomorrow. Indonesia has requested lower tariffs on commodities that the US cannot produce, including palm oil, closer to zero percent. As the deadline nears, senior minister Airlangga Hartarto said Wednesday that Indonesia was still trying to secure tariff reductions for palm oil.
“It’s still in process,” chief negotiator Airlangga told the Jakarta Globe, before heading to the palace.
Aside from palm oil, the resource-rich Indonesia is seeking lower rates for its nickel, cacao, and coffee.
When Trump first launched his tariff campaign in April, Indonesian palm oil producers feared that they could lose their market share to ASEAN neighbor Malaysia. The US mainly buys its palm oil from Indonesia, seconded by Malaysia. However, Indonesia managed to get Trump to drop his initial 32 percent tariffs to 19 percent after making some trade concessions. Trump’s reciprocal tariff threats started out with 24 percent in April, and later slightly rose to 25 percent in July. Kuala Lumpur ended up with 19 percent, just like Jakarta.
Trump has already slapped 10 percent universal tariffs on foreign goods entering his country since April in an attempt to fix trade imbalances. The policy did not stop the US from being Indonesia’s largest surplus driver, with the trade gap amounting to $8.57 billion between January and June. Indonesia's overall exports of crude palm oil and its derivatives were on the rise so far this year. Exports hit $11.43 billion in the first half of 2025, up by 8.91 percent year-on-year, according to the Central Statistics Agency (BPS). The agency, however, did not go into details on who Indonesia's top buyers were. Jakarta Globe
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Failure to replant ageing oil palms can jeopardise sector for Malaysia
KUALA LUMPUR: The government remains committed to prioritising oil palm replanting for smallholders and major plantation companies, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
He said while private companies have the financial means to replant ageing oil palm trees regularly, smallholders often lack the resources — a gap that could hurt the sector's long-term productivity.
He warned that failure to do so could jeopardise Malaysia's future exports and production.
"Replanting is easier for private companies. Major firms like Sime Darby, United Plantations and KLK have succeeded because they maintain sufficient capital to carry out timely replanting.
"If replanting is not carried out in accordance with the tree's life cycle, productivity will decline," he told the Dewan Rakyat today in response to a supplementary question from Jamaludin Yahya (PN-Pasir Salak), who asked about current studies indicating the direct impact of delayed palm oil replanting in the country.
He added that mature oil palm trees could yield up to 28 tonnes. However, without replanting, he said the yields would likely drop significantly.
"If replanting isn't done, once the trees reach 25 to 27 years of age, the yield usually drops to around four or five tonnes."
Earlier, Johari said that under the 13th Malaysia Plan (13MP), the government is expected to allocate RM1.4 billion over five years to assist smallholders in replanting ageing oil palms.
The initiative aligns with Malaysia's aim of maintaining its position as the world's second-largest palm oil producer.
He said the allocation — RM1.4 billion in total, not annually — is essential to help rejuvenate plantations with higher-yielding varieties.
The 13MP, tabled by Prime Minister Datuk Seri Anwar Ibrahim, outlined the government's wider strategy to revitalise strategic sectors — including agricultural commodities, the halal industry and Islamic finance — by boosting productivity in palm oil, rubber and cocoa through modern technologies such as mechanisation, automation, robotics, and targeted reseach and development. New Straits Times
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What Is Oil Palm Biomass & How It's Helping Generate Clean Energy For Malaysia
Oil palm waste is one of the most valuable types of waste.
When people think of oil palm, they usually think of cooking oil or exports. But did you know, oil palm is also a big contributor for energy?
If you didn't already know, Malaysia's oil palm plantations are among the largest sources of biomass in the country, producing organic material that can be turned into renewable, carbon-neutral energy.
In 2022, oil palm biomass accounted for 89.8% of Malaysia's total biomass output in 2022, which equals 164 million tonnes out of a national total of 182.6 million tonnes.
Now, Malaysia is positioning this agricultural "waste" as a key driver of its clean energy future and green economic transformation.
But firstly, what is biomass?
Biomass refers to any organic material, like plant waste or animal by-products, that can be used to generate energy or create other value-added products. You can think of it as energy from nature's leftovers.
Here's why biomass is so important:
Renewable: Unlike fossil fuels, biomass can be replenished naturally over time.
Carbon-neutral: The carbon dioxide released during biomass combustion was already absorbed by the plant while growing.
Reduces waste: Instead of dumping agricultural leftovers into landfills or burning them, we can turn them into power, fertilisers, or even construction materials.
In short, biomass helps close the loop in a circular economy, reducing emissions, minimising waste, and unlocking new economic value.
And with over 5.67 million hectares of oil palm plantations, it's no surprise that Malaysia's biomass sector is dominated by the oil palm industry
What might be more surprising, however, is just how much "waste" oil palm actually produces, and how diverse it can all be.
Here's a breakdown of the types of oil palm by-products:
From the fields:
Thanks to advances in biomass tech, Malaysia can now convert oil palm waste into renewable energy products Says
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Indonesia, US Still Negotiate Tariff Cuts for Palm Oil Ahead of Tomorrow’s Deadline
Jakarta. Indonesia and the US are still negotiating lower tariffs on palm oil although it is only one day away before Washington’s duty hikes come into effect.
US President Donald Trump will soon impose 19 percent tariffs on US-bound Indonesian goods on August 7 or tomorrow. Indonesia has requested lower tariffs on commodities that the US cannot produce, including palm oil, closer to zero percent. As the deadline nears, senior minister Airlangga Hartarto said Wednesday that Indonesia was still trying to secure tariff reductions for palm oil.
“It’s still in process,” chief negotiator Airlangga told the Jakarta Globe, before heading to the palace.
Aside from palm oil, the resource-rich Indonesia is seeking lower rates for its nickel, cacao, and coffee.
When Trump first launched his tariff campaign in April, Indonesian palm oil producers feared that they could lose their market share to ASEAN neighbor Malaysia. The US mainly buys its palm oil from Indonesia, seconded by Malaysia. However, Indonesia managed to get Trump to drop his initial 32 percent tariffs to 19 percent after making some trade concessions. Trump’s reciprocal tariff threats started out with 24 percent in April, and later slightly rose to 25 percent in July. Kuala Lumpur ended up with 19 percent, just like Jakarta.
Trump has already slapped 10 percent universal tariffs on foreign goods entering his country since April in an attempt to fix trade imbalances. The policy did not stop the US from being Indonesia’s largest surplus driver, with the trade gap amounting to $8.57 billion between January and June. Indonesia's overall exports of crude palm oil and its derivatives were on the rise so far this year. Exports hit $11.43 billion in the first half of 2025, up by 8.91 percent year-on-year, according to the Central Statistics Agency (BPS). The agency, however, did not go into details on who Indonesia's top buyers were. Jakarta Globe
---------
Failure to replant ageing oil palms can jeopardise sector for Malaysia
KUALA LUMPUR: The government remains committed to prioritising oil palm replanting for smallholders and major plantation companies, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
He said while private companies have the financial means to replant ageing oil palm trees regularly, smallholders often lack the resources — a gap that could hurt the sector's long-term productivity.
He warned that failure to do so could jeopardise Malaysia's future exports and production.
"Replanting is easier for private companies. Major firms like Sime Darby, United Plantations and KLK have succeeded because they maintain sufficient capital to carry out timely replanting.
"If replanting is not carried out in accordance with the tree's life cycle, productivity will decline," he told the Dewan Rakyat today in response to a supplementary question from Jamaludin Yahya (PN-Pasir Salak), who asked about current studies indicating the direct impact of delayed palm oil replanting in the country.
He added that mature oil palm trees could yield up to 28 tonnes. However, without replanting, he said the yields would likely drop significantly.
"If replanting isn't done, once the trees reach 25 to 27 years of age, the yield usually drops to around four or five tonnes."
Earlier, Johari said that under the 13th Malaysia Plan (13MP), the government is expected to allocate RM1.4 billion over five years to assist smallholders in replanting ageing oil palms.
The initiative aligns with Malaysia's aim of maintaining its position as the world's second-largest palm oil producer.
He said the allocation — RM1.4 billion in total, not annually — is essential to help rejuvenate plantations with higher-yielding varieties.
The 13MP, tabled by Prime Minister Datuk Seri Anwar Ibrahim, outlined the government's wider strategy to revitalise strategic sectors — including agricultural commodities, the halal industry and Islamic finance — by boosting productivity in palm oil, rubber and cocoa through modern technologies such as mechanisation, automation, robotics, and targeted reseach and development. New Straits Times
---------
What Is Oil Palm Biomass & How It's Helping Generate Clean Energy For Malaysia
Oil palm waste is one of the most valuable types of waste.
When people think of oil palm, they usually think of cooking oil or exports. But did you know, oil palm is also a big contributor for energy?
If you didn't already know, Malaysia's oil palm plantations are among the largest sources of biomass in the country, producing organic material that can be turned into renewable, carbon-neutral energy.
In 2022, oil palm biomass accounted for 89.8% of Malaysia's total biomass output in 2022, which equals 164 million tonnes out of a national total of 182.6 million tonnes.
Now, Malaysia is positioning this agricultural "waste" as a key driver of its clean energy future and green economic transformation.
But firstly, what is biomass?
Biomass refers to any organic material, like plant waste or animal by-products, that can be used to generate energy or create other value-added products. You can think of it as energy from nature's leftovers.
Here's why biomass is so important:
Renewable: Unlike fossil fuels, biomass can be replenished naturally over time.
Carbon-neutral: The carbon dioxide released during biomass combustion was already absorbed by the plant while growing.
Reduces waste: Instead of dumping agricultural leftovers into landfills or burning them, we can turn them into power, fertilisers, or even construction materials.
In short, biomass helps close the loop in a circular economy, reducing emissions, minimising waste, and unlocking new economic value.
And with over 5.67 million hectares of oil palm plantations, it's no surprise that Malaysia's biomass sector is dominated by the oil palm industry
What might be more surprising, however, is just how much "waste" oil palm actually produces, and how diverse it can all be.
Here's a breakdown of the types of oil palm by-products:
From the fields:
- Oil palm fronds: Pruned regularly, plentiful, and often overlooked.
- Oil palm trunks: Harvested during replanting cycles. From the mills:
- Empty fruit bunches: What's left after removing the palm fruit.
- Mesocarp fibres: From the pulpy flesh of the fruit.
- Palm kernel shells: The hard shell protecting the kernel.
- Palm kernel cake: What's left after extracting oil from the kernel.
- Palm oil mill effluent: Liquid waste from processing.
Thanks to advances in biomass tech, Malaysia can now convert oil palm waste into renewable energy products Says
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August 05, 2025
Today's Top 3 News: Government Sees Bright Future for Indonesian Palm Oil in Europe
TEMPO.CO, Jakarta - Tempo English compiled the top 3 news on Tuesday, August 5, 2025. Here are the highlights: Government Sees Bright Future for Indonesian Palm Oil in Europe; Indonesian Gov't Defends Purchase of Fighter Jets from Turkiye Despite Budget Cuts; and Indonesian Authorities Hunt for People Displaying One Piece Flag Through RT Leader.
The following is the list of the top 3 news on Tempo English today:
1. Government Sees Bright Future for Indonesian Palm Oil in Europe
Director General of International Trade Negotiations at the Ministry of Trade, Djatmiko Bris Witjaksono, expressed optimism about Indonesia's prospects for exporting palm oil to the European market. He mentioned that the economic cooperation commitment between Indonesia and the European Union through the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) opens up opportunities for the recognition of Indonesian palm oil as a sustainable commodity.
According to Djatmiko, this recognition is a strategic step to mitigate the negative sentiment towards national palm oil products, which has been a barrier in the global market. "Europe is the first to have our palm oil as a source of raw materials, energy, or food products. Palm oil has various extensive uses. But palm oil as a sustainable commodity is important," said Djatmiko at the Indonesian Chamber of Commerce and Industry office in South Jakarta, on Monday, August 4, 2025. Tempo
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Malaysia agrees to boost tech, LNG purchases from U.S. as part of trade deal
Malaysia will spend up to $150 billion in the next five years to buy equipment from U.S. multinationals for its semiconductor, aerospace and data centre sectors, part of a deal with Washington to cut tariffs, its trade minister said on Monday.
The United States announced last week that it would impose a 19% tariff on Malaysia starting from August 8, lower than a 25% levy threatened last month.
State energy firm Petroliam Nasional Berhad will buy liquefied natural gas worth $3.4 billion a year, while Malaysia will commit to $70 billion in cross-border investments in the United States over the next five years to address the trade imbalance between the two countries, minister Tengku Zafrul Aziz told parliament.
The United States ran a goods trade deficit with Malaysia of $24.8 billion in 2024, government data showed.
Tengku Zafrul said the two countries were finalising a joint statement covering the commitments made, following weeks of negotiations over the tariffs imposed by U.S. President Donald Trump’s administration.
“Despite expecting lower tariff rates, the ministry believes that these negotiations have succeeded in achieving a result that is reasonable with the offers made by Malaysia,” Tengku Zafrul said.
Other concessions by Malaysia include reducing or abolishing duties on 98.4% of U.S. imports, the easing of some non-tariff barriers, and the removal of a requirement for U.S. social media platforms and cloud service providers to contribute part of their Malaysian revenues to a state fund.29dk2902l
Last week, Tengku Zafrul said Malaysia had secured tariff exemptions on its pharmaceutical products and semiconductors exported to the United States, and was seeking further cut-outs for commodities such as cocoa, rubber and palm oil.
On Monday, however, he warned that semiconductor chips may still be subject to additional tariffs under U.S. laws based on national security reasons.
“Therefore, we need to continue to be prepared for any possible additional tariffs imposed on the semiconductor industry,” he said. BOE Report
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Indonesia fires have minimal effect on biomass supply
The forest fires in parts of Indonesia's Sumatra region over the past two weeks have had limited impact on the supply chain of biomass products such as wood pellets and palm kernel shells (PKS), according to market participants.
The key biomass supplying region of Indonesia reported multiple forest fire hotspots, including the Riau province, one of the region's seaborne transportation points. The forest fires, typically a result of land clearing activities on plantations for subsequent crop farming, was intensified by the current dry season in Indonesia.
The impact of the fires on PKS harvesting and processing in the plantations and mills has been minimal, according to some market participants. But the pollution from the haze might disrupt PKS logistics, if the forest fires do not subside soon, they added.
Transportation in plantations and to and from crude palm oil (CPO) mills could slow down if the visibility worsens, sources said. This could put pressure on the volume of palm oil fruit sent to CPO mills. The fruits are PKS feedstocks, and thus any drop in transported volume could lower PKS availability, a market participant said.
The fires have come at a time when the Sumatra region is witnessing lower-than-anticipated harvest. PKS collection in Sumatra have risen in July, but still short of suppliers' expectations, according to PKS traders in Indonesia.
The fires have resulted in transboundary haze in the west coast of peninsular Malaysia. The haze could affect operations at major ports in the key PKS supplying region of Malaysia, if the fires persist, market participants said.
The Indonesian PKS market has lately centred around slow harvest and demand from Japan. Argus assessed prices for PKS fob east coast Sumatra to Japan at $94.36/t, up from $83.87/t a year earlier. Argus Media
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Today's Top 3 News: Government Sees Bright Future for Indonesian Palm Oil in Europe
TEMPO.CO, Jakarta - Tempo English compiled the top 3 news on Tuesday, August 5, 2025. Here are the highlights: Government Sees Bright Future for Indonesian Palm Oil in Europe; Indonesian Gov't Defends Purchase of Fighter Jets from Turkiye Despite Budget Cuts; and Indonesian Authorities Hunt for People Displaying One Piece Flag Through RT Leader.
The following is the list of the top 3 news on Tempo English today:
1. Government Sees Bright Future for Indonesian Palm Oil in Europe
Director General of International Trade Negotiations at the Ministry of Trade, Djatmiko Bris Witjaksono, expressed optimism about Indonesia's prospects for exporting palm oil to the European market. He mentioned that the economic cooperation commitment between Indonesia and the European Union through the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) opens up opportunities for the recognition of Indonesian palm oil as a sustainable commodity.
According to Djatmiko, this recognition is a strategic step to mitigate the negative sentiment towards national palm oil products, which has been a barrier in the global market. "Europe is the first to have our palm oil as a source of raw materials, energy, or food products. Palm oil has various extensive uses. But palm oil as a sustainable commodity is important," said Djatmiko at the Indonesian Chamber of Commerce and Industry office in South Jakarta, on Monday, August 4, 2025. Tempo
---------
Malaysia agrees to boost tech, LNG purchases from U.S. as part of trade deal
Malaysia will spend up to $150 billion in the next five years to buy equipment from U.S. multinationals for its semiconductor, aerospace and data centre sectors, part of a deal with Washington to cut tariffs, its trade minister said on Monday.
The United States announced last week that it would impose a 19% tariff on Malaysia starting from August 8, lower than a 25% levy threatened last month.
State energy firm Petroliam Nasional Berhad will buy liquefied natural gas worth $3.4 billion a year, while Malaysia will commit to $70 billion in cross-border investments in the United States over the next five years to address the trade imbalance between the two countries, minister Tengku Zafrul Aziz told parliament.
The United States ran a goods trade deficit with Malaysia of $24.8 billion in 2024, government data showed.
Tengku Zafrul said the two countries were finalising a joint statement covering the commitments made, following weeks of negotiations over the tariffs imposed by U.S. President Donald Trump’s administration.
“Despite expecting lower tariff rates, the ministry believes that these negotiations have succeeded in achieving a result that is reasonable with the offers made by Malaysia,” Tengku Zafrul said.
Other concessions by Malaysia include reducing or abolishing duties on 98.4% of U.S. imports, the easing of some non-tariff barriers, and the removal of a requirement for U.S. social media platforms and cloud service providers to contribute part of their Malaysian revenues to a state fund.29dk2902l
Last week, Tengku Zafrul said Malaysia had secured tariff exemptions on its pharmaceutical products and semiconductors exported to the United States, and was seeking further cut-outs for commodities such as cocoa, rubber and palm oil.
On Monday, however, he warned that semiconductor chips may still be subject to additional tariffs under U.S. laws based on national security reasons.
“Therefore, we need to continue to be prepared for any possible additional tariffs imposed on the semiconductor industry,” he said. BOE Report
----------
Indonesia fires have minimal effect on biomass supply
The forest fires in parts of Indonesia's Sumatra region over the past two weeks have had limited impact on the supply chain of biomass products such as wood pellets and palm kernel shells (PKS), according to market participants.
The key biomass supplying region of Indonesia reported multiple forest fire hotspots, including the Riau province, one of the region's seaborne transportation points. The forest fires, typically a result of land clearing activities on plantations for subsequent crop farming, was intensified by the current dry season in Indonesia.
The impact of the fires on PKS harvesting and processing in the plantations and mills has been minimal, according to some market participants. But the pollution from the haze might disrupt PKS logistics, if the forest fires do not subside soon, they added.
Transportation in plantations and to and from crude palm oil (CPO) mills could slow down if the visibility worsens, sources said. This could put pressure on the volume of palm oil fruit sent to CPO mills. The fruits are PKS feedstocks, and thus any drop in transported volume could lower PKS availability, a market participant said.
The fires have come at a time when the Sumatra region is witnessing lower-than-anticipated harvest. PKS collection in Sumatra have risen in July, but still short of suppliers' expectations, according to PKS traders in Indonesia.
The fires have resulted in transboundary haze in the west coast of peninsular Malaysia. The haze could affect operations at major ports in the key PKS supplying region of Malaysia, if the fires persist, market participants said.
The Indonesian PKS market has lately centred around slow harvest and demand from Japan. Argus assessed prices for PKS fob east coast Sumatra to Japan at $94.36/t, up from $83.87/t a year earlier. Argus Media
---------
August 04, 2025
IEU-CEPA grants zero tariffs to several export commodities
Jakarta (ANTARA) - The Ministry of Trade announced that Indonesian export commodities, ranging from textiles to palm oil and its derivatives, will enjoy zero tariffs under the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).
"For example, apparel will receive zero tariffs during the Entry Into Force (EIF) phase. Therefore, footwear, apparel, textiles, processed foods, palm oil, and its derivatives will all benefit from Entry Into Force (EIF)," the ministry's Director General of International Trade Negotiations, Djatmiko Bris Witjaksono, stated on Monday.
He explained that the IEU-CEPA covers market access for goods, with both parties committing to eliminating tariffs on 98 percent of the total tariff items and 99 percent of the total import value.
He explained that several products have optimal market access due to comparative advantage, namely footwear, textiles and textile products, fisheries, processed foods, palm oil and its derivatives, including biodiesel, electronics, agricultural and forestry products, and steel.
Witjaksono stated that this agreement is Indonesia's most comprehensive bilateral trade agreement, comprising 25 chapters covering elements of liberalization, trade facilitation, cooperation, and emerging issues.
Based on its commitments, 98 percent of all tariff lines will receive preferential treatment, with a few exceptions, he stated.
"Around 99 percent of all Indonesian exports to the EU will receive preferences. The timing (of implementation) varies, but almost all preferences become effective from the EIF phase. Some are in their third year, while others are in their fifth year, and negotiations are still ongoing," he stated.
A major milestone in finalizing the agreement was marked by the signing and exchange of letters between the Indonesian Government and the European Commission, a high-level political agreement to accelerate the finalization of IEU-CEPA negotiations.
The exchange of letters was conducted by Indonesian Coordinating Minister for Economic Affairs, Airlangga Hartarto, and the European Commission's Trade Commissioner, Maroš Šefovi.
Indonesia, with a population of over 285 million, offers a large and dynamic market for its trading partners.
Meanwhile, the European Union, home to over 400 million people, is also one of the world's major economic powers.
Under the IEU-CEPA, around 80 percent of tariff lines will be eliminated, offering broader trade and investment opportunities for both parties.
The completion of IEU-CEPA negotiations was officially announced during a bilateral meeting between Indonesian President Prabowo Subianto and European Commission President Ursula von der Leyen in Brussels.
Both parties affirmed their commitment to strengthening their strategic partnership, including accelerating the completion of the IEU-CEPA. Antara News
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Indonesia secures EU recognition for sustainable palm oil under new trade agreement
The Ministry of Trade has confirmed that the European Union has been committed to absorbing locally produced crude palm oil (CPO) as part of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).
Director General of International Trade Negotiations at the Trade Ministry, Djatmiko B. Witjaksono, said that IEU-CEPA includes an unprecedented special protocol acknowledging that Indonesian CPO meets sustainability standards.
“A special protocol on CPO has never existed in any previous CEPA agreements. This protocol will benefit all parties involved in the IEU-CEPA,” Djatmiko said at the Indonesian Chamber of Commerce and Industry (Kadin) headquarters on Monday, August 4, 2025.
He explained that the EU has recognized Indonesian CPO as sustainable for both food and energy production. However, he emphasized that future exports of CPO to the European market must comply with sustainability requirements, including traceability and certification.
Despite this positive development, both the EU and Indonesia are still engaged in World Trade Organization (WTO) disputes concerning biodiesel and fatty acid products.
Djatmiko suggested that the inclusion of the special CPO protocol may have been driven by shifting political dynamics within the EU.
Currently, two sustainability certifications are recognized domestically: the Indonesian Sustainable Palm Oil (ISPO) and the Roundtable on Sustainable Palm Oil (RSPO).
According to Djatmiko, ongoing IEU-CEPA negotiations will determine which certifications will be accepted once the agreement is implemented.
He also assured that Indonesian CPO products will be exempt from EU import duties by no later than 2027. At the same time, the EU plans to enforce the European Union Deforestation Regulation (EUDR) starting next year.
The EUDR requires that all products sold in the EU must be free from deforestation. This means goods must not be produced on land that has been deforested or environmentally degraded.
As a result, the Indonesian Palm Oil Association (GAPKI) believes that the benefits of the IEU-CEPA deal may only be short-term for palm oil and its derivatives.
GAPKI Chairman Eddy Martono acknowledged that the agreement will eliminate import tariffs on Indonesian CPO derivative products to Europe. However, he warned that these benefits could be offset by the strict requirements under the EUDR.
“IEU-CEPA is a good step, but Europe still enforces the EUDR. Before we can benefit from IEU-CEPA, our products must first pass EUDR compliance checks,” Eddy told Katadata.co.id on Tuesday, July 15, 2025.
Although the EU currently does not impose tariffs on raw CPO, derivative products are subject to import duties ranging from 5 percent to 12.8 percent. With IEU-CEPA, these tariffs will be removed, potentially boosting Indonesia’s exports to the European market. Indonesia Business Post
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Jitters over Jakarta’s land seizure for Malaysian Companies
THE Indonesian government is moving to confiscate palm oil plantation land parcels that was either illegally developed or linked to corruption investigations. And Malaysian plantation companies operating there are having the jitters.
Industry insiders and analysts say Malaysian plantation companies face the risk of losing some of their estate land as Jakarta’s forestry task force has set a target of confiscating three million hectares by August.
The three-million-hectare target would amount to 19% of the 16 million hectares under palm oil in Indonesia, which is now the world’s biggest crude palm oil producer.
News reports say Indonesia has so far seized more than two million hectares of illegally-run plantations – including other crops – in forest areas across the archipelago.
The largest confiscation was 221,000ha of oil palm land in Sumatra from PT Duta Palma Group by the country’s Attorney’s General Office, which is pursuing a money laundering case against the company, according to news reports.
In the process, a new palm oil goliath has emerged.
PT Agrinas Palma Nusantara, a state-owned company established in March this year and helmed by retired Indonesian army officers, has become the custodian of 833,000 ha of the confiscated lands, making it the largest palm oil company in the world by acreage.
Its acreages lie in protected areas of forest in Kalimantan, Riau and Sumatra. Agrinas could be handed more confiscated lands in the near future.
“The bulk of the land confiscation so far has been from local Indonesian companies. I think the government will also do the same with foreign plantation groups next to ensure some level of fairness.
“Many of the Malaysian planters there have a significant presence and would be anticipating that some of their acreages could be next,” said a plantation industry supply chain player who did not wish to be known.
His contact on the ground in Indonesia says the acreages being confiscated are estates with producing age palms/trees.
How the companies are judged to have broken the law is unclear. This is what worries planters.
“Simply put, it all depends on who defines the legality or illegality – and in this case, it’s the Indonesian government that calls the shots. Goalposts change. Ambiguity on the processes and boundaries become subjective.
“The real question is whether foreign entities would choose to fight on and risk having their broader assets subjected to scrutiny,” said a former CEO of a local plantation company.
The chance of the companies taking the fight to courts in Indonesia could depend very much on how Wilmar International fares with its alleged corruption case tied to palm oil export permits issued during a national cooking oil shortage in 2022.
The Singapore-based edible oil heavyweight and two other companies have been accused of bribing officials to obtain the permit. Wilmar has handed over Us$726mil as a “security deposit” in the legal case against it.
The company was cleared by an Indonesian court earlier this year but the ruling is in doubt as the judges involved have been arrested on graft charges.
“I think many of the planters will likely prefer not to go on the legal route as the bulk of the land cultivated in Indonesia is leasehold land. Nevertheless, this event shows how complex and challenging the business environment has become for the companies,” he added.
The Indonesian government has framed the confiscations of lands as President Prabowo Subianto’s fight against corruption and a strategic initiative to manage the confiscated land parcels as part of a national food and energy security effort.
The country currently has a mandatory B40 biodiesel mix, which is set to rise to B50 by as soon as 2026, driven by a desire to reduce dependency on imported fossil fuel.
Jakarta’s forestry task force plans to confiscate three million hectares of palm oil land by August
Indonesian government has framed the confiscations as a fight against corruption
Despite the confiscation risk, plantation companies still make a healthy profit
The bulk of Agrinas Palma’s palm oil is intended for the production of biofuel, specifically biodiesel.
CIMB Securities, in a recent report, noted that Indonesia’s Forestry minister has identified 436 oil palm companies as operating without forestry permits, covering over one million hectares.
Of this amount, 790,000ha are under the legalisation process, while 317,000ha were rejected owing to non-compliance.
A retired planter who spent years living and working in West Kalimantan said the illegal plantations are not random land grabs, but rather planned developments carried out with the knowledge of provincial and local government officials.
“The problem is corruption and enforcement. Many illegal promoters would usually approach the Ketua Desa or Ketua Wilayah and get their cooperation to develop lands of 1,000ha to 2,000ha. If you have support at governor level, the acreages could be larger,” he said.
Local planters like SD Guthrie Bhd, United Plantations Bhd, Kuala Lumpur Kepong Bhd (KLK), Genting Plantations Bhd, Chin Teck Plantations Bhd, United Malacca Bhd and IOI Corp Bhd are among Malaysian plantations with acreages under oil palm across Indonesia.
Genting Plantations has about 78,452ha (178,000ha if the Plasma scheme growers are included) in Indonesia and 64,850ha in Malaysia.
The company is the first to undertake an impairment of Rm66mil in the first quarter of this year for loss of income from its biological assets in Indonesia in case of confiscation of land. How much land is at risk – or where – was not disclosed.
KLK has some 171,000ha in Sumatra and Kalimantan while SD Guthrie has about 240,000ha.
CIMB Securities noted Malaysian planters like Genting Plantations had applied to legalise 18,448ha, with 13,365ha under the legalisation process, while 4,464ha were rejected.
KLK applied for 4,368ha, of which 1,800ha are under process and 1,368ha rejected, while SD Guthrie’s Indonesian subsidiaries applied for 3,045ha, with 1,874ha under process and 1,171ha rejected.
IOI Corp’s 32%-owned, Indonesian-listed associate Bumitama Agri had applied for 30,115ha, with 29,975ha under process and 5,570ha rejected.
“While the threat is real for Malaysian companies, the potential financial impact of Indonesia’s forestry land status issue on their planted oil palm estates is unlikely to be significant.
“Some continue to see Indonesia as an opportunity to invest in, with United Malacca moving to acquire full control of its Indonesian plantation subsidiary PT Lifere Agro Kapuas for Us$10mil,” said Ivy Ng, head of Malaysia research and regional head of agribusiness research at CIMB Investment Bank Bhd.
Despite the land confiscation risk factor, she retains a “neutral” outlook on the plantation companies.
With crude palm oil prices averaging RM4,000 a tonne, plantation companies with upstream operations are still making a healthy profit margin. The StarMY
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Old trees and ageing farmers worsen outlook for top palm oil exporters
PONTIAN, Malaysia, Aug 4 (Reuters) - Malaysian farmer Suratmen Mosman faces a dilemma that threatens to sap supply from the world's top palm oil exporters and drive up prices of the vegetable oil essential to billions of consumers worldwide in the next five years.
The ageing trees on his plantation 300 km (185 miles) south of Kuala Lumpur are bearing less fruit, but the 85-year-old is holding off replacing them as he doesn't want to lose income while waiting the three to five years it takes for new trees to start yielding a crop and the years beyond that it will take for them to reach peak production. Government subsidies to encourage replanting are not as high as they once were and he needs to support his family.
Used mostly as a cooking oil, but also to make cakes, cosmetics and cleaning products, palm oil makes up more than half of the world's vegetable oil supply and 85% of the crude product comes from Malaysia and Indonesia.
But after decades of soaring output, the market is now at a tipping point as combined exports from the two producers are set to slow sharply, the result of stagnating production and efforts by Indonesia to divert more palm oil into the production of biodiesel.
While financial markets have factored in the slowdown, there is growing evidence that plantations run by smallholders like Suratmen may be in worse condition than previously thought as ageing and lower-yielding trees are not replaced, which will add to the decline. Smallholders make up 40% of the plantations across Malaysia and Indonesia, so they play a vital role in the supply chain. Reuters
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Malaysia to allocate RM1.4bil for oil palm replanting programme, says Johari
The plantation and commodities minister says the funds are to help smallholders replace ageing and less productive oil palm trees over the next five years.
JOHOR BAHRU: The government is expected to allocate RM1.4 billion in phases over five years to strengthen the oil palm replanting programme for smallholders under the 13th Malaysia Plan (13MP), says plantation and commodities minister Johari Ghani.
He said the allocation is part of initiatives to ensure the sustainability of the country’s palm oil industry, particularly efforts to replace ageing and less productive oil palm trees.
“The parliamentary debate for 13MP will begin on Monday, and from there, we will receive a lot of feedback from MPs. In terms of the plantation and commodities ministry, I see that the government is taking steps to increase replanting among smallholders.
“With replanting, we can maintain the country’s position as the world’s second-largest producer of palm oil products and boost our exports, which currently stand at RM115 billion,” he said after attending the Johor Bahru Umno meeting here today.
Last Thursday, Prime Minister Anwar Ibrahim said the government is committed to advancing the development of strategic national sectors through various high-impact approaches under 13MP, particularly in subsectors including agro-commodities, halal industries, and Islamic finance.
The prime minister added that the government will focus on increasing productivity in the agro-commodity sector, such as palm oil, rubber, and cocoa, through the use of modern technologies like mechanisation, automation, robotics, as well as research and development. FMT
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Malaysian palm oil firm FGV to be delisted on August 28
KUALA LUMPUR, Aug 4 (Reuters) - Malaysia's FGV Holdings (FGVH.KL), opens new tab, one of the world's largest palm oil producers, will be delisted on August 28 after being taken over by a state-owned body.
FGV said last week the Federal Land Development Authority (Felda) had gained more than the 90% of the company's shares required for a takeover. The offer runs to August 15.
Felda plans to restructure the company and Prime Minister Anwar Ibrahim said on Saturday that FGV would return to its original objective of prioritising the interests of Felda settlers.
Felda settlers, owners of small plots of land, own shares in FGV but have not seen the returns that they were promised when the company was listed in 2012. They are considered a major source of votes for the government.
FGV has, since 2020, been hit with a U.S. import ban on its products due to allegations of forced labour at its plantations.
Reporting by Ashley Tang and Rozanna Latiff; Editing by Edwina Gibbs/ Reuters
IEU-CEPA grants zero tariffs to several export commodities
Jakarta (ANTARA) - The Ministry of Trade announced that Indonesian export commodities, ranging from textiles to palm oil and its derivatives, will enjoy zero tariffs under the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).
"For example, apparel will receive zero tariffs during the Entry Into Force (EIF) phase. Therefore, footwear, apparel, textiles, processed foods, palm oil, and its derivatives will all benefit from Entry Into Force (EIF)," the ministry's Director General of International Trade Negotiations, Djatmiko Bris Witjaksono, stated on Monday.
He explained that the IEU-CEPA covers market access for goods, with both parties committing to eliminating tariffs on 98 percent of the total tariff items and 99 percent of the total import value.
He explained that several products have optimal market access due to comparative advantage, namely footwear, textiles and textile products, fisheries, processed foods, palm oil and its derivatives, including biodiesel, electronics, agricultural and forestry products, and steel.
Witjaksono stated that this agreement is Indonesia's most comprehensive bilateral trade agreement, comprising 25 chapters covering elements of liberalization, trade facilitation, cooperation, and emerging issues.
Based on its commitments, 98 percent of all tariff lines will receive preferential treatment, with a few exceptions, he stated.
"Around 99 percent of all Indonesian exports to the EU will receive preferences. The timing (of implementation) varies, but almost all preferences become effective from the EIF phase. Some are in their third year, while others are in their fifth year, and negotiations are still ongoing," he stated.
A major milestone in finalizing the agreement was marked by the signing and exchange of letters between the Indonesian Government and the European Commission, a high-level political agreement to accelerate the finalization of IEU-CEPA negotiations.
The exchange of letters was conducted by Indonesian Coordinating Minister for Economic Affairs, Airlangga Hartarto, and the European Commission's Trade Commissioner, Maroš Šefovi.
Indonesia, with a population of over 285 million, offers a large and dynamic market for its trading partners.
Meanwhile, the European Union, home to over 400 million people, is also one of the world's major economic powers.
Under the IEU-CEPA, around 80 percent of tariff lines will be eliminated, offering broader trade and investment opportunities for both parties.
The completion of IEU-CEPA negotiations was officially announced during a bilateral meeting between Indonesian President Prabowo Subianto and European Commission President Ursula von der Leyen in Brussels.
Both parties affirmed their commitment to strengthening their strategic partnership, including accelerating the completion of the IEU-CEPA. Antara News
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Indonesia secures EU recognition for sustainable palm oil under new trade agreement
The Ministry of Trade has confirmed that the European Union has been committed to absorbing locally produced crude palm oil (CPO) as part of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).
Director General of International Trade Negotiations at the Trade Ministry, Djatmiko B. Witjaksono, said that IEU-CEPA includes an unprecedented special protocol acknowledging that Indonesian CPO meets sustainability standards.
“A special protocol on CPO has never existed in any previous CEPA agreements. This protocol will benefit all parties involved in the IEU-CEPA,” Djatmiko said at the Indonesian Chamber of Commerce and Industry (Kadin) headquarters on Monday, August 4, 2025.
He explained that the EU has recognized Indonesian CPO as sustainable for both food and energy production. However, he emphasized that future exports of CPO to the European market must comply with sustainability requirements, including traceability and certification.
Despite this positive development, both the EU and Indonesia are still engaged in World Trade Organization (WTO) disputes concerning biodiesel and fatty acid products.
Djatmiko suggested that the inclusion of the special CPO protocol may have been driven by shifting political dynamics within the EU.
Currently, two sustainability certifications are recognized domestically: the Indonesian Sustainable Palm Oil (ISPO) and the Roundtable on Sustainable Palm Oil (RSPO).
According to Djatmiko, ongoing IEU-CEPA negotiations will determine which certifications will be accepted once the agreement is implemented.
He also assured that Indonesian CPO products will be exempt from EU import duties by no later than 2027. At the same time, the EU plans to enforce the European Union Deforestation Regulation (EUDR) starting next year.
The EUDR requires that all products sold in the EU must be free from deforestation. This means goods must not be produced on land that has been deforested or environmentally degraded.
As a result, the Indonesian Palm Oil Association (GAPKI) believes that the benefits of the IEU-CEPA deal may only be short-term for palm oil and its derivatives.
GAPKI Chairman Eddy Martono acknowledged that the agreement will eliminate import tariffs on Indonesian CPO derivative products to Europe. However, he warned that these benefits could be offset by the strict requirements under the EUDR.
“IEU-CEPA is a good step, but Europe still enforces the EUDR. Before we can benefit from IEU-CEPA, our products must first pass EUDR compliance checks,” Eddy told Katadata.co.id on Tuesday, July 15, 2025.
Although the EU currently does not impose tariffs on raw CPO, derivative products are subject to import duties ranging from 5 percent to 12.8 percent. With IEU-CEPA, these tariffs will be removed, potentially boosting Indonesia’s exports to the European market. Indonesia Business Post
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Jitters over Jakarta’s land seizure for Malaysian Companies
THE Indonesian government is moving to confiscate palm oil plantation land parcels that was either illegally developed or linked to corruption investigations. And Malaysian plantation companies operating there are having the jitters.
Industry insiders and analysts say Malaysian plantation companies face the risk of losing some of their estate land as Jakarta’s forestry task force has set a target of confiscating three million hectares by August.
The three-million-hectare target would amount to 19% of the 16 million hectares under palm oil in Indonesia, which is now the world’s biggest crude palm oil producer.
News reports say Indonesia has so far seized more than two million hectares of illegally-run plantations – including other crops – in forest areas across the archipelago.
The largest confiscation was 221,000ha of oil palm land in Sumatra from PT Duta Palma Group by the country’s Attorney’s General Office, which is pursuing a money laundering case against the company, according to news reports.
In the process, a new palm oil goliath has emerged.
PT Agrinas Palma Nusantara, a state-owned company established in March this year and helmed by retired Indonesian army officers, has become the custodian of 833,000 ha of the confiscated lands, making it the largest palm oil company in the world by acreage.
Its acreages lie in protected areas of forest in Kalimantan, Riau and Sumatra. Agrinas could be handed more confiscated lands in the near future.
“The bulk of the land confiscation so far has been from local Indonesian companies. I think the government will also do the same with foreign plantation groups next to ensure some level of fairness.
“Many of the Malaysian planters there have a significant presence and would be anticipating that some of their acreages could be next,” said a plantation industry supply chain player who did not wish to be known.
His contact on the ground in Indonesia says the acreages being confiscated are estates with producing age palms/trees.
How the companies are judged to have broken the law is unclear. This is what worries planters.
“Simply put, it all depends on who defines the legality or illegality – and in this case, it’s the Indonesian government that calls the shots. Goalposts change. Ambiguity on the processes and boundaries become subjective.
“The real question is whether foreign entities would choose to fight on and risk having their broader assets subjected to scrutiny,” said a former CEO of a local plantation company.
The chance of the companies taking the fight to courts in Indonesia could depend very much on how Wilmar International fares with its alleged corruption case tied to palm oil export permits issued during a national cooking oil shortage in 2022.
The Singapore-based edible oil heavyweight and two other companies have been accused of bribing officials to obtain the permit. Wilmar has handed over Us$726mil as a “security deposit” in the legal case against it.
The company was cleared by an Indonesian court earlier this year but the ruling is in doubt as the judges involved have been arrested on graft charges.
“I think many of the planters will likely prefer not to go on the legal route as the bulk of the land cultivated in Indonesia is leasehold land. Nevertheless, this event shows how complex and challenging the business environment has become for the companies,” he added.
The Indonesian government has framed the confiscations of lands as President Prabowo Subianto’s fight against corruption and a strategic initiative to manage the confiscated land parcels as part of a national food and energy security effort.
The country currently has a mandatory B40 biodiesel mix, which is set to rise to B50 by as soon as 2026, driven by a desire to reduce dependency on imported fossil fuel.
Jakarta’s forestry task force plans to confiscate three million hectares of palm oil land by August
Indonesian government has framed the confiscations as a fight against corruption
Despite the confiscation risk, plantation companies still make a healthy profit
The bulk of Agrinas Palma’s palm oil is intended for the production of biofuel, specifically biodiesel.
CIMB Securities, in a recent report, noted that Indonesia’s Forestry minister has identified 436 oil palm companies as operating without forestry permits, covering over one million hectares.
Of this amount, 790,000ha are under the legalisation process, while 317,000ha were rejected owing to non-compliance.
A retired planter who spent years living and working in West Kalimantan said the illegal plantations are not random land grabs, but rather planned developments carried out with the knowledge of provincial and local government officials.
“The problem is corruption and enforcement. Many illegal promoters would usually approach the Ketua Desa or Ketua Wilayah and get their cooperation to develop lands of 1,000ha to 2,000ha. If you have support at governor level, the acreages could be larger,” he said.
Local planters like SD Guthrie Bhd, United Plantations Bhd, Kuala Lumpur Kepong Bhd (KLK), Genting Plantations Bhd, Chin Teck Plantations Bhd, United Malacca Bhd and IOI Corp Bhd are among Malaysian plantations with acreages under oil palm across Indonesia.
Genting Plantations has about 78,452ha (178,000ha if the Plasma scheme growers are included) in Indonesia and 64,850ha in Malaysia.
The company is the first to undertake an impairment of Rm66mil in the first quarter of this year for loss of income from its biological assets in Indonesia in case of confiscation of land. How much land is at risk – or where – was not disclosed.
KLK has some 171,000ha in Sumatra and Kalimantan while SD Guthrie has about 240,000ha.
CIMB Securities noted Malaysian planters like Genting Plantations had applied to legalise 18,448ha, with 13,365ha under the legalisation process, while 4,464ha were rejected.
KLK applied for 4,368ha, of which 1,800ha are under process and 1,368ha rejected, while SD Guthrie’s Indonesian subsidiaries applied for 3,045ha, with 1,874ha under process and 1,171ha rejected.
IOI Corp’s 32%-owned, Indonesian-listed associate Bumitama Agri had applied for 30,115ha, with 29,975ha under process and 5,570ha rejected.
“While the threat is real for Malaysian companies, the potential financial impact of Indonesia’s forestry land status issue on their planted oil palm estates is unlikely to be significant.
“Some continue to see Indonesia as an opportunity to invest in, with United Malacca moving to acquire full control of its Indonesian plantation subsidiary PT Lifere Agro Kapuas for Us$10mil,” said Ivy Ng, head of Malaysia research and regional head of agribusiness research at CIMB Investment Bank Bhd.
Despite the land confiscation risk factor, she retains a “neutral” outlook on the plantation companies.
With crude palm oil prices averaging RM4,000 a tonne, plantation companies with upstream operations are still making a healthy profit margin. The StarMY
----------
Old trees and ageing farmers worsen outlook for top palm oil exporters
PONTIAN, Malaysia, Aug 4 (Reuters) - Malaysian farmer Suratmen Mosman faces a dilemma that threatens to sap supply from the world's top palm oil exporters and drive up prices of the vegetable oil essential to billions of consumers worldwide in the next five years.
The ageing trees on his plantation 300 km (185 miles) south of Kuala Lumpur are bearing less fruit, but the 85-year-old is holding off replacing them as he doesn't want to lose income while waiting the three to five years it takes for new trees to start yielding a crop and the years beyond that it will take for them to reach peak production. Government subsidies to encourage replanting are not as high as they once were and he needs to support his family.
Used mostly as a cooking oil, but also to make cakes, cosmetics and cleaning products, palm oil makes up more than half of the world's vegetable oil supply and 85% of the crude product comes from Malaysia and Indonesia.
But after decades of soaring output, the market is now at a tipping point as combined exports from the two producers are set to slow sharply, the result of stagnating production and efforts by Indonesia to divert more palm oil into the production of biodiesel.
While financial markets have factored in the slowdown, there is growing evidence that plantations run by smallholders like Suratmen may be in worse condition than previously thought as ageing and lower-yielding trees are not replaced, which will add to the decline. Smallholders make up 40% of the plantations across Malaysia and Indonesia, so they play a vital role in the supply chain. Reuters
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Malaysia to allocate RM1.4bil for oil palm replanting programme, says Johari
The plantation and commodities minister says the funds are to help smallholders replace ageing and less productive oil palm trees over the next five years.
JOHOR BAHRU: The government is expected to allocate RM1.4 billion in phases over five years to strengthen the oil palm replanting programme for smallholders under the 13th Malaysia Plan (13MP), says plantation and commodities minister Johari Ghani.
He said the allocation is part of initiatives to ensure the sustainability of the country’s palm oil industry, particularly efforts to replace ageing and less productive oil palm trees.
“The parliamentary debate for 13MP will begin on Monday, and from there, we will receive a lot of feedback from MPs. In terms of the plantation and commodities ministry, I see that the government is taking steps to increase replanting among smallholders.
“With replanting, we can maintain the country’s position as the world’s second-largest producer of palm oil products and boost our exports, which currently stand at RM115 billion,” he said after attending the Johor Bahru Umno meeting here today.
Last Thursday, Prime Minister Anwar Ibrahim said the government is committed to advancing the development of strategic national sectors through various high-impact approaches under 13MP, particularly in subsectors including agro-commodities, halal industries, and Islamic finance.
The prime minister added that the government will focus on increasing productivity in the agro-commodity sector, such as palm oil, rubber, and cocoa, through the use of modern technologies like mechanisation, automation, robotics, as well as research and development. FMT
----------
Malaysian palm oil firm FGV to be delisted on August 28
KUALA LUMPUR, Aug 4 (Reuters) - Malaysia's FGV Holdings (FGVH.KL), opens new tab, one of the world's largest palm oil producers, will be delisted on August 28 after being taken over by a state-owned body.
FGV said last week the Federal Land Development Authority (Felda) had gained more than the 90% of the company's shares required for a takeover. The offer runs to August 15.
Felda plans to restructure the company and Prime Minister Anwar Ibrahim said on Saturday that FGV would return to its original objective of prioritising the interests of Felda settlers.
Felda settlers, owners of small plots of land, own shares in FGV but have not seen the returns that they were promised when the company was listed in 2012. They are considered a major source of votes for the government.
FGV has, since 2020, been hit with a U.S. import ban on its products due to allegations of forced labour at its plantations.
Reporting by Ashley Tang and Rozanna Latiff; Editing by Edwina Gibbs/ Reuters
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August 03, 2025
Trump's tariff break for Malaysia gets mixed reactions
PETALING JAYA: The recent announcement of a reduction in the tariff rate on Malaysian exports to the US, from 25% to 19%, has been portrayed as a major trade win.
However, economist Dr Geoffrey Williams has raised concerns over the anticipated benefits of the 6% reduction in import levy for Malaysian goods going into the US. Williams told theSun the tariff reduction only puts Malaysia on a level playing field with Indonesia and the Philippines.
Williams told theSun the tariff reduction only puts Malaysia on a level playing field with Indonesia and the Philippines.
He added that the new tariff of 19% accords Malaysia an only marginally better position when stacked against major exporter Vietnam.
He compared Malaysia’s rate to other countries such as Japan, Korea, the United Kingdom and the European Union, which received bigger reductions.
“Overall, it is just a marginally better position but it still hits Malaysian exports hard. If it causes just a 10% reduction in exports to the US, it will cost RM20 billion. This is RM670 for every Malaysian.”
“Most of Malaysia’s exports to the US cater to niche, high-value segments.”
Belvinder said in the first half of 2025, over 80% of Malaysia’s palm oil exports to the US were certified sustainable palm oil and used in high value-added applications.
“Additionally, 11% comprised palm stearin, a key ingredient in food manufacturing and personal care products. These products cater to specialised segments where substitute options are limited, making overall demand relatively inelastic.” The SunMY
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US tariff rate has no impact on nation’s commodities market, says Johari
The plantation and commodities minister says it will not affect Malaysia's competitiveness as closest rival Indonesia is facing the same tariff rate.
PETALING JAYA: The 19% tariff imposed by the US on Malaysian goods will not affect the competitiveness of Malaysia’s commodities in the global market, says plantation and commodities minister Johari Ghani.
He said this was because the tariff remains competitive compared with other Asean nations, including Indonesia, which also faces the same tariff rate, Bernama reported.
“We’re almost on par with the lowest rates in Asean. For example, Indonesia is the world’s top producer of palm oil, and we’re number two.
“It is also subject to the 19% rate. So for us, 19% is fair. It’s not a problem,” he was quoted as saying, after attending the Pasir Gudang Umno delegates’ meeting today.
Yesterday, the US announced the imposition of a 19% reciprocal tariff on imports from Malaysia, effective Aug 8, a reduction from the previously proposed 25%.
In response, investment, trade and industry minister Tengku Zafrul Aziz said Malaysia will advocate for 0% tariffs on commodities such as cocoa, rubber and palm oil, similar to the 0% rate enjoyed by the semiconductor and pharmaceutical sectors. FMT
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Malaysia Asserts No Halal Standards Compromise in US Trade Talks
Investment Minister Tengku Zafrul Abdul Aziz emphasized that the country’s Islamic compliance standards remain non-negotiable.
“There is absolutely no compromise on halal standards,” he said Friday.
“What we had agreed to is the facilitation of the import process for halal-certified products into Malaysia.
“The halal certification will remain Shariah compliant,” he told a press conference.
Malaysia’s halal import restrictions and its requirements for bumiputra equity in foreign-owned companies were flagged by the United States as key trade barriers.
Tengku Zafrul was responding to claims that the government had lowered the halal standards imposed by Malaysian Islamic Development Department (Jakim) as a concession to the United States.
He also refuted claims that the United States had demanded exclusive access to Malaysia’s rare earth as this was not part of the negotiations.
“There were a lot of speculations on this. But I can attest here that there was no such request from the United States to have exclusive access to our rare earth,” he said.
On Malaysia’s red line, he said the United States had demanded total liberalization of equity for strategic sectors and blanket exemption for imported licensing for US products.
The United States also demanded abolishment of excise duties and import permits for US-manufactured cars.
“This was a red line for us which we did not compromise,” he added.
He added that Malaysia also stood firm on its bumiputra policy and government procurement policy. IQNA
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Malaysia To Allocate RM1.4 Billion For Palm Oil Replanting Under 13MP
The government is set to allocate RM1.4 billion over five years to support the oil palm replanting programme for smallholders under the 13th Malaysia Plan (13MP), Plantation Industries and Commodities Minister Datuk Seri Johari Abdul Ghani announced.
The phased allocation aims to boost long-term sustainability in Malaysia’s palm oil sector by replacing ageing, less productive trees and enhancing overall yield.
“With replanting, we can maintain Malaysia’s position as the world’s second-largest palm oil producer and strengthen our export performance, currently worth RM115 billion,” Johari said.
He added that the initiative is part of broader government efforts to revitalise key economic sectors.
Prime Minister Datuk Seri Anwar Ibrahim earlier underscored the government’s commitment to advancing strategic industries, including agro-commodities, halal products and Islamic finance, through high-impact policies.
Anwar added that productivity in palm oil, rubber and cocoa will be enhanced through mechanisation, automation, robotics and R&D, signalling a shift toward modern, technology-driven agriculture.
Johari emphasised that the replanting push is expected to benefit thousands of smallholders while reinforcing Malaysia’s role in the global palm oil supply chain. Business TodayMY
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Delisting of FGV on Bursa Malaysia to return control of state-owned plantations to FELDA
FGV Holdings Berhad, one of the world’s largest palm oil companies, is set to be delisted from the Main Market of Bursa Malaysia by August 28, Prime Minister Datuk Seri Anwar Ibrahim confirmed today. This significant development follows the Federal Land Development Authority’s (FELDA) successful acquisition of over 92% of FGV’s shares, surpassing the 90% threshold required for a voluntary takeover offer.
“Because of good management – thank you to the Director-General and the entire Felda management – we can begin the delisting on August 28,” Prime Minister Anwar Ibrahim stated at the National Felda Settlers’ Day Celebration and Rural Entrepreneurs’ Carnival. He emphasised that the delisting would allow FELDA to “chart its own direction” and prioritize the interests and well-being of its settlers, particularly through Koperasi Permodalan Felda Malaysia Bhd (KPF).
Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid Hamidi further elaborated that the full acquisition process is pending final approval from Bursa Malaysia. He added that the state governments of Pahang and Sabah have also become shareholders in FGV following its impending delisting, and that future profits are expected to be channeled back to FELDA settlers.
FGV Holdings was first listed on Bursa Malaysia on June 28, 2012, in what was then one of Southeast Asia’s largest initial public offerings (IPO), raising RM10.5 billion with shares priced at RM4.55 each. The listing was intended to unlock value from government-linked companies and attract foreign investment. However, over the years, FGV’s share price declined significantly due to various factors including operational challenges, governance concerns, and allegations of mismanagement, trading around RM1.22 in 2025 before the latest takeover bid. Business Today
Trump's tariff break for Malaysia gets mixed reactions
PETALING JAYA: The recent announcement of a reduction in the tariff rate on Malaysian exports to the US, from 25% to 19%, has been portrayed as a major trade win.
However, economist Dr Geoffrey Williams has raised concerns over the anticipated benefits of the 6% reduction in import levy for Malaysian goods going into the US. Williams told theSun the tariff reduction only puts Malaysia on a level playing field with Indonesia and the Philippines.
Williams told theSun the tariff reduction only puts Malaysia on a level playing field with Indonesia and the Philippines.
He added that the new tariff of 19% accords Malaysia an only marginally better position when stacked against major exporter Vietnam.
He compared Malaysia’s rate to other countries such as Japan, Korea, the United Kingdom and the European Union, which received bigger reductions.
“Overall, it is just a marginally better position but it still hits Malaysian exports hard. If it causes just a 10% reduction in exports to the US, it will cost RM20 billion. This is RM670 for every Malaysian.”
“Most of Malaysia’s exports to the US cater to niche, high-value segments.”
Belvinder said in the first half of 2025, over 80% of Malaysia’s palm oil exports to the US were certified sustainable palm oil and used in high value-added applications.
“Additionally, 11% comprised palm stearin, a key ingredient in food manufacturing and personal care products. These products cater to specialised segments where substitute options are limited, making overall demand relatively inelastic.” The SunMY
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US tariff rate has no impact on nation’s commodities market, says Johari
The plantation and commodities minister says it will not affect Malaysia's competitiveness as closest rival Indonesia is facing the same tariff rate.
PETALING JAYA: The 19% tariff imposed by the US on Malaysian goods will not affect the competitiveness of Malaysia’s commodities in the global market, says plantation and commodities minister Johari Ghani.
He said this was because the tariff remains competitive compared with other Asean nations, including Indonesia, which also faces the same tariff rate, Bernama reported.
“We’re almost on par with the lowest rates in Asean. For example, Indonesia is the world’s top producer of palm oil, and we’re number two.
“It is also subject to the 19% rate. So for us, 19% is fair. It’s not a problem,” he was quoted as saying, after attending the Pasir Gudang Umno delegates’ meeting today.
Yesterday, the US announced the imposition of a 19% reciprocal tariff on imports from Malaysia, effective Aug 8, a reduction from the previously proposed 25%.
In response, investment, trade and industry minister Tengku Zafrul Aziz said Malaysia will advocate for 0% tariffs on commodities such as cocoa, rubber and palm oil, similar to the 0% rate enjoyed by the semiconductor and pharmaceutical sectors. FMT
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Malaysia Asserts No Halal Standards Compromise in US Trade Talks
Investment Minister Tengku Zafrul Abdul Aziz emphasized that the country’s Islamic compliance standards remain non-negotiable.
“There is absolutely no compromise on halal standards,” he said Friday.
“What we had agreed to is the facilitation of the import process for halal-certified products into Malaysia.
“The halal certification will remain Shariah compliant,” he told a press conference.
Malaysia’s halal import restrictions and its requirements for bumiputra equity in foreign-owned companies were flagged by the United States as key trade barriers.
Tengku Zafrul was responding to claims that the government had lowered the halal standards imposed by Malaysian Islamic Development Department (Jakim) as a concession to the United States.
He also refuted claims that the United States had demanded exclusive access to Malaysia’s rare earth as this was not part of the negotiations.
“There were a lot of speculations on this. But I can attest here that there was no such request from the United States to have exclusive access to our rare earth,” he said.
On Malaysia’s red line, he said the United States had demanded total liberalization of equity for strategic sectors and blanket exemption for imported licensing for US products.
The United States also demanded abolishment of excise duties and import permits for US-manufactured cars.
“This was a red line for us which we did not compromise,” he added.
He added that Malaysia also stood firm on its bumiputra policy and government procurement policy. IQNA
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Malaysia To Allocate RM1.4 Billion For Palm Oil Replanting Under 13MP
The government is set to allocate RM1.4 billion over five years to support the oil palm replanting programme for smallholders under the 13th Malaysia Plan (13MP), Plantation Industries and Commodities Minister Datuk Seri Johari Abdul Ghani announced.
The phased allocation aims to boost long-term sustainability in Malaysia’s palm oil sector by replacing ageing, less productive trees and enhancing overall yield.
“With replanting, we can maintain Malaysia’s position as the world’s second-largest palm oil producer and strengthen our export performance, currently worth RM115 billion,” Johari said.
He added that the initiative is part of broader government efforts to revitalise key economic sectors.
Prime Minister Datuk Seri Anwar Ibrahim earlier underscored the government’s commitment to advancing strategic industries, including agro-commodities, halal products and Islamic finance, through high-impact policies.
Anwar added that productivity in palm oil, rubber and cocoa will be enhanced through mechanisation, automation, robotics and R&D, signalling a shift toward modern, technology-driven agriculture.
Johari emphasised that the replanting push is expected to benefit thousands of smallholders while reinforcing Malaysia’s role in the global palm oil supply chain. Business TodayMY
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Delisting of FGV on Bursa Malaysia to return control of state-owned plantations to FELDA
FGV Holdings Berhad, one of the world’s largest palm oil companies, is set to be delisted from the Main Market of Bursa Malaysia by August 28, Prime Minister Datuk Seri Anwar Ibrahim confirmed today. This significant development follows the Federal Land Development Authority’s (FELDA) successful acquisition of over 92% of FGV’s shares, surpassing the 90% threshold required for a voluntary takeover offer.
“Because of good management – thank you to the Director-General and the entire Felda management – we can begin the delisting on August 28,” Prime Minister Anwar Ibrahim stated at the National Felda Settlers’ Day Celebration and Rural Entrepreneurs’ Carnival. He emphasised that the delisting would allow FELDA to “chart its own direction” and prioritize the interests and well-being of its settlers, particularly through Koperasi Permodalan Felda Malaysia Bhd (KPF).
Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid Hamidi further elaborated that the full acquisition process is pending final approval from Bursa Malaysia. He added that the state governments of Pahang and Sabah have also become shareholders in FGV following its impending delisting, and that future profits are expected to be channeled back to FELDA settlers.
FGV Holdings was first listed on Bursa Malaysia on June 28, 2012, in what was then one of Southeast Asia’s largest initial public offerings (IPO), raising RM10.5 billion with shares priced at RM4.55 each. The listing was intended to unlock value from government-linked companies and attract foreign investment. However, over the years, FGV’s share price declined significantly due to various factors including operational challenges, governance concerns, and allegations of mismanagement, trading around RM1.22 in 2025 before the latest takeover bid. Business Today
August 02, 2025
Made in Malaysia, taxed in America, sold back at triple the price: Here’s how the US trade tariff affects Malaysians
KUALA LUMPUR, Aug 2 — A new tariff imposed by the United States on most Malaysian exports could soon pinch Malaysian consumers, not just exporters, as goods caught in global supply chains boomerang back home at inflated prices.
From rubber gloves to furniture, palm oil and solar panels, Malaysian-made products that are shipped to the US and later re-exported under global brands, could return with nearly triple the original price tag, economists warn.
How does it work anyway?
A rubber glove made in Klang costs RM1 at the factory. Once it enters the US, it’s hit with the 19 per cent tariff, bumping the landed price to RM1.19.
By the time it goes through importers, distributors and retailers, it could retail for RM2.49 in the US.
But the cost hike doesn’t stop there.
If that same glove is repackaged or sold as part of a medical kit by a multinational and shipped back to Malaysia, the price might climb to RM2.89 – nearly three times what it originally cost.
“Theoretically, these products could come in and out several times from various countries as global supply chains are very complex,” Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid tol The New Straits Times in an article published yesterday.
He said many Malaysian-made goods re-enter the country as part of branded global products, with costs stacked on at every step.
Afzanizam indicated that semiconductors are possibly due to be spared due to special exemptions.
What products are affected?
According to The New Straits Times, five key sectors are likely to be affected by the US tariff, despite being revised down to 19 per cent from an initial 25 per cent. Malay Mail
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Malaysia pushing for 0% tariffs on key commodity exports to US
Putrajaya is lobbying Washington to spare commodities like cocoa, rubber and palm oil from the 19% tariff imposed on Malaysian exports to the US.
KUALA LUMPUR: Malaysia will advocate for 0% tariffs on commodities such as cocoa, rubber and palm oil exported to the US which are now subject to 19% duty, says investment, trade and industry minister Tengku Zafrul Aziz.
Tengku Zafrul said while Malaysia’s semiconductor and pharmaceutical sectors continue to enjoy 0% tariffs, a 19% tariff will be imposed on other goods beginning Aug 8, although discussions are ongoing to further reduce the rate.
“We will continue to engage with the US and provide them with a list of products we believe should be subject to 0% tariffs,” he said at a press conference today.
“These are mostly agricultural products that the US cannot produce, such as cocoa and rubber. We have submitted our list,” he said, adding that a joint Malaysia-US statement on the tariffs is expected to be issued this weekend.
Earlier today, the US announced a 19% tariff imposed on Malaysian exports, a reduction from the 25% tariff previously imposed.
Asked whether there will be a formal tariff review mechanism built into the arrangement, Tengku Zafrul said he was uncertain whether the matter was discussed during negotiations.
No compromise on cars
He also said Malaysia had drawn a clear line during negotiations when it came to domestic tax policies, explaining that US negotiators wanted Malaysia to abolish excise duties on automobiles, tobacco and alcohol.
“The automotive sector is very important to the US, (but) that was a ‘red line’ for us. Among the things we didn’t compromise on is the automotive industry. We have our national cars and our automotive industry, which employs 700,000 workers.
“The US was concerned about our import duties on cars and the approved permit (AP) scheme for imported cars. To them, this was not fair,” he said.
Tengku Zafrul dismissed claims that the US had made a request for exclusive access to rare earth products from Malaysia.
“I don’t know where it is coming from, because there are many speculations. But I can attest that there is no request from the US to exclusively have access to our rare earth (product),” he said.
There was no agreement that Malaysia had to exclusively supply rare earth to the US or any other countries, including neighbouring countries or China, he said.
Thai-Cambodia dispute
On whether recent diplomatic developments may have contributed to the reduction in the tariff rate, Tengku Zafrul said the ceasefire agreement between Cambodia and Thailand likely played a role.
On Monday, Prime Minister Anwar Ibrahim announced that Cambodia and Thailand had agreed to a ceasefire following deadly clashes along their border. The agreement followed a meeting in Putrajaya attended by Anwar, Cambodian prime minister Hun Manet and Thailand’s acting prime minister, Phumtham Wechayachai. FMT
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Indonesia's exports rise again in June as U.S.-bound shipments jump
JAKARTA, Aug 1 (Reuters) - Indonesia's exports rose in June as exporters sought to beat the U.S. tariff deadline and shipments of palm oil and gold jewellery increased, while inflation accelerated in July, official data showed on Friday.
June shipments from Southeast Asia's biggest economy jumped 11.29% on a yearly basis to $23.44 billion, higher than the 10.41% forecast by economists polled by Reuters. Exports rose 9.68% in May.
Excluding oil and gas, June shipments to the U.S. rose 33.5% on a yearly basis. Top Indonesian products sold to U.S. buyers included electrical machinery, clothing, footwear, palm oil, rubber and seafood.
Shipments of palm oil from the world's biggest producer surged 15.1% in June, while gold and jewellery exports more than doubled from the same month in 2024.
Imports in June rose 4.28% on a yearly basis to $19.33 billion, below the poll's forecast of 6.5%.
The result was a bigger-than-expected trade surplus of $4.11 billion in June, above the poll's expectation of $3.45 billion, but down slightly from May's $4.30 billion.
Indonesian exporters in recent months have brought forward shipments to the United States ahead of President Donald Trump's August 1 deadline for tariff negotiations.
Washington set Indonesia's import tariff at 19% under a deal agreed in July, from threatening a 32% levy earlier, after Jakarta agreed to eliminate most tariffs affecting U.S. industrial and agricultural products and to buy more American goods.
Trump has issued an executive order saying the new tariff rates will be implemented in seven days.
Indonesia's trade surplus may be squeezed as the tariffs take effect, with imports likely to rise and exports affected by lower prices of its top commodities, such as coal, Bank Danamon economist Hosianna Situmorang said.
Meanwhile, Indonesia's July annual inflation accelerated to 2.37% on an annual basis, more than the 2.25% expected by analysts, reflecting higher prices of foods such as shallots, rice, and tomatoes, as well as rising utility and education costs. Reuters
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US Soy Industry Face Biofuel Policy Headwinds
New policy actions, namely the passage of federal legislation, will weigh in on the continued viability of Illinois-produced soybean oil in the renewable fuels sector. It’s a call to action for growers to stay informed of and engaged in the policymaking process as federal and state policies go into effect in the coming months.
30,000-Foot View of the Issue
Carbon Intensity (CI)-based tax incentive policies for fuel continue to threaten to turn U.S. soybean oil into an economically unviable feedstock. On the federal level, this is the 45Z policy, and on the state level, there are Low Carbon Fuel Standards (LCFS) or Clean Fuel Standards (CFS). The intent of these policies is to promote waste feedstocks and dismantle the profitability of domestic soybean oil.
The hard reality is that though many biofuel producers still want and prefer to use U.S.- grown soybean oil, current incentives are pushing them toward alternatives. The new, improved 45Z as passed in the recent One Big Beautiful Bill (OBBB) still promotes these waste feedstocks over soybean oil. However, the domestic United States-Mexico-Canada Agreement (USMCA) provision will help prevent those feedstocks from taking market share completely. However, state level LCFS policies are actively promoting imports, and jacking up carbon intensity on row crop agriculture with bogus land-use change charges.
Simply put, biofuel producers and users prefer virgin U.S. soybean oil because it’s cleaner, easier to convert into fuel, results in a product with a lower cloud point and can be sourced reliably. Yet under the California-style LCFS framework, the economics still don’t add up for domestic soybean oil.
Illinois soybean farmers should be aware of how the playing field tilts away from American growers in a bureaucratic LCFS policy in the rulemaking process.
What’s a Waste Feedstock?
Carbon intensity-based fuel policy favors fuels using waste feedstocks, and these “waste” feedstocks are most often imported from other countries. Every gallon of waste, imported or domestic, used for biodiesel under these programs displace a gallon of soybean oil.
What is a waste feedstock, officially? A Massachusetts state law regulating biofuels states that: “Waste feedstock shall include, but not be limited to, waste vegetable oils, waste animal fats, substances derived from wastewater and the treatment of wastewater, or grease trap waste.” In theory, that means anything but soybean oil.
Yet in practice, this definition has been stretched to accommodate a variety of non-U.S. feedstocks. Used cooking oil is often Brazilian soy in disguise, tallow is often animal fat produced on deforested land in Brazil and palm oil often comes from China (through southeast Asia) labeled as used cooking oil. These products are entering the U.S. market under the waste feedstock banner. In some cases, legitimate waste from China’s restaurant industry is then mixed in for good measure. This is what the USMCA provision in the recently passed OBBB was aimed at preventing, and its inclusion in the bill was a big win for Illinois soybean growers.
Still, LCFS policies look to upend this in Illinois by outright promoting these imports over U.S. agriculture feedstocks. Illinois farmers might be shocked to learn that these imports then receive an incentive worth much more than soy grown in the U.S. The LCFS policies also have the capability to altogether ban or severely limit soybean oil’s participation in the market. Illinois Soybean Association
Made in Malaysia, taxed in America, sold back at triple the price: Here’s how the US trade tariff affects Malaysians
KUALA LUMPUR, Aug 2 — A new tariff imposed by the United States on most Malaysian exports could soon pinch Malaysian consumers, not just exporters, as goods caught in global supply chains boomerang back home at inflated prices.
From rubber gloves to furniture, palm oil and solar panels, Malaysian-made products that are shipped to the US and later re-exported under global brands, could return with nearly triple the original price tag, economists warn.
How does it work anyway?
A rubber glove made in Klang costs RM1 at the factory. Once it enters the US, it’s hit with the 19 per cent tariff, bumping the landed price to RM1.19.
By the time it goes through importers, distributors and retailers, it could retail for RM2.49 in the US.
But the cost hike doesn’t stop there.
If that same glove is repackaged or sold as part of a medical kit by a multinational and shipped back to Malaysia, the price might climb to RM2.89 – nearly three times what it originally cost.
“Theoretically, these products could come in and out several times from various countries as global supply chains are very complex,” Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid tol The New Straits Times in an article published yesterday.
He said many Malaysian-made goods re-enter the country as part of branded global products, with costs stacked on at every step.
Afzanizam indicated that semiconductors are possibly due to be spared due to special exemptions.
What products are affected?
According to The New Straits Times, five key sectors are likely to be affected by the US tariff, despite being revised down to 19 per cent from an initial 25 per cent. Malay Mail
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Malaysia pushing for 0% tariffs on key commodity exports to US
Putrajaya is lobbying Washington to spare commodities like cocoa, rubber and palm oil from the 19% tariff imposed on Malaysian exports to the US.
KUALA LUMPUR: Malaysia will advocate for 0% tariffs on commodities such as cocoa, rubber and palm oil exported to the US which are now subject to 19% duty, says investment, trade and industry minister Tengku Zafrul Aziz.
Tengku Zafrul said while Malaysia’s semiconductor and pharmaceutical sectors continue to enjoy 0% tariffs, a 19% tariff will be imposed on other goods beginning Aug 8, although discussions are ongoing to further reduce the rate.
“We will continue to engage with the US and provide them with a list of products we believe should be subject to 0% tariffs,” he said at a press conference today.
“These are mostly agricultural products that the US cannot produce, such as cocoa and rubber. We have submitted our list,” he said, adding that a joint Malaysia-US statement on the tariffs is expected to be issued this weekend.
Earlier today, the US announced a 19% tariff imposed on Malaysian exports, a reduction from the 25% tariff previously imposed.
Asked whether there will be a formal tariff review mechanism built into the arrangement, Tengku Zafrul said he was uncertain whether the matter was discussed during negotiations.
No compromise on cars
He also said Malaysia had drawn a clear line during negotiations when it came to domestic tax policies, explaining that US negotiators wanted Malaysia to abolish excise duties on automobiles, tobacco and alcohol.
“The automotive sector is very important to the US, (but) that was a ‘red line’ for us. Among the things we didn’t compromise on is the automotive industry. We have our national cars and our automotive industry, which employs 700,000 workers.
“The US was concerned about our import duties on cars and the approved permit (AP) scheme for imported cars. To them, this was not fair,” he said.
Tengku Zafrul dismissed claims that the US had made a request for exclusive access to rare earth products from Malaysia.
“I don’t know where it is coming from, because there are many speculations. But I can attest that there is no request from the US to exclusively have access to our rare earth (product),” he said.
There was no agreement that Malaysia had to exclusively supply rare earth to the US or any other countries, including neighbouring countries or China, he said.
Thai-Cambodia dispute
On whether recent diplomatic developments may have contributed to the reduction in the tariff rate, Tengku Zafrul said the ceasefire agreement between Cambodia and Thailand likely played a role.
On Monday, Prime Minister Anwar Ibrahim announced that Cambodia and Thailand had agreed to a ceasefire following deadly clashes along their border. The agreement followed a meeting in Putrajaya attended by Anwar, Cambodian prime minister Hun Manet and Thailand’s acting prime minister, Phumtham Wechayachai. FMT
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Indonesia's exports rise again in June as U.S.-bound shipments jump
JAKARTA, Aug 1 (Reuters) - Indonesia's exports rose in June as exporters sought to beat the U.S. tariff deadline and shipments of palm oil and gold jewellery increased, while inflation accelerated in July, official data showed on Friday.
June shipments from Southeast Asia's biggest economy jumped 11.29% on a yearly basis to $23.44 billion, higher than the 10.41% forecast by economists polled by Reuters. Exports rose 9.68% in May.
Excluding oil and gas, June shipments to the U.S. rose 33.5% on a yearly basis. Top Indonesian products sold to U.S. buyers included electrical machinery, clothing, footwear, palm oil, rubber and seafood.
Shipments of palm oil from the world's biggest producer surged 15.1% in June, while gold and jewellery exports more than doubled from the same month in 2024.
Imports in June rose 4.28% on a yearly basis to $19.33 billion, below the poll's forecast of 6.5%.
The result was a bigger-than-expected trade surplus of $4.11 billion in June, above the poll's expectation of $3.45 billion, but down slightly from May's $4.30 billion.
Indonesian exporters in recent months have brought forward shipments to the United States ahead of President Donald Trump's August 1 deadline for tariff negotiations.
Washington set Indonesia's import tariff at 19% under a deal agreed in July, from threatening a 32% levy earlier, after Jakarta agreed to eliminate most tariffs affecting U.S. industrial and agricultural products and to buy more American goods.
Trump has issued an executive order saying the new tariff rates will be implemented in seven days.
Indonesia's trade surplus may be squeezed as the tariffs take effect, with imports likely to rise and exports affected by lower prices of its top commodities, such as coal, Bank Danamon economist Hosianna Situmorang said.
Meanwhile, Indonesia's July annual inflation accelerated to 2.37% on an annual basis, more than the 2.25% expected by analysts, reflecting higher prices of foods such as shallots, rice, and tomatoes, as well as rising utility and education costs. Reuters
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US Soy Industry Face Biofuel Policy Headwinds
New policy actions, namely the passage of federal legislation, will weigh in on the continued viability of Illinois-produced soybean oil in the renewable fuels sector. It’s a call to action for growers to stay informed of and engaged in the policymaking process as federal and state policies go into effect in the coming months.
30,000-Foot View of the Issue
Carbon Intensity (CI)-based tax incentive policies for fuel continue to threaten to turn U.S. soybean oil into an economically unviable feedstock. On the federal level, this is the 45Z policy, and on the state level, there are Low Carbon Fuel Standards (LCFS) or Clean Fuel Standards (CFS). The intent of these policies is to promote waste feedstocks and dismantle the profitability of domestic soybean oil.
The hard reality is that though many biofuel producers still want and prefer to use U.S.- grown soybean oil, current incentives are pushing them toward alternatives. The new, improved 45Z as passed in the recent One Big Beautiful Bill (OBBB) still promotes these waste feedstocks over soybean oil. However, the domestic United States-Mexico-Canada Agreement (USMCA) provision will help prevent those feedstocks from taking market share completely. However, state level LCFS policies are actively promoting imports, and jacking up carbon intensity on row crop agriculture with bogus land-use change charges.
Simply put, biofuel producers and users prefer virgin U.S. soybean oil because it’s cleaner, easier to convert into fuel, results in a product with a lower cloud point and can be sourced reliably. Yet under the California-style LCFS framework, the economics still don’t add up for domestic soybean oil.
Illinois soybean farmers should be aware of how the playing field tilts away from American growers in a bureaucratic LCFS policy in the rulemaking process.
What’s a Waste Feedstock?
Carbon intensity-based fuel policy favors fuels using waste feedstocks, and these “waste” feedstocks are most often imported from other countries. Every gallon of waste, imported or domestic, used for biodiesel under these programs displace a gallon of soybean oil.
What is a waste feedstock, officially? A Massachusetts state law regulating biofuels states that: “Waste feedstock shall include, but not be limited to, waste vegetable oils, waste animal fats, substances derived from wastewater and the treatment of wastewater, or grease trap waste.” In theory, that means anything but soybean oil.
Yet in practice, this definition has been stretched to accommodate a variety of non-U.S. feedstocks. Used cooking oil is often Brazilian soy in disguise, tallow is often animal fat produced on deforested land in Brazil and palm oil often comes from China (through southeast Asia) labeled as used cooking oil. These products are entering the U.S. market under the waste feedstock banner. In some cases, legitimate waste from China’s restaurant industry is then mixed in for good measure. This is what the USMCA provision in the recently passed OBBB was aimed at preventing, and its inclusion in the bill was a big win for Illinois soybean growers.
Still, LCFS policies look to upend this in Illinois by outright promoting these imports over U.S. agriculture feedstocks. Illinois farmers might be shocked to learn that these imports then receive an incentive worth much more than soy grown in the U.S. The LCFS policies also have the capability to altogether ban or severely limit soybean oil’s participation in the market. Illinois Soybean Association
August 01, 2025
Indonesian palm oil exports to EU granted zero percent tariffs on IEU-CEPA deal
TEMPO.CO, Jakarta - The Coordinating Minister for Economic Affairs Airlangga Hartarto discloses that Indonesian crude palm oil (CPO) is subject to a zero percent tariff, or duty-free, to Europe for up to 1 million tons. This is part of the agreement under the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), which has reached its final stages.
"I think, for Indonesia, in this agreement, we have agreed on two commodities, namely CPO and palm kernel oil (PKO). We have agreed on the quota, where for CPO it is around 1 million tons, and for PKO it depends on last year's exports to the European Union," said Airlangga at his office, Thursday, July 31, 2025.
The IEU-CEPA will be ratified in September this year, according to the minister. European Union Commissioner Maros Sefcovic will visit Indonesia in September to ink the deal.
He ensured that all the key terms contained in the agreement will come into effect in 2026, with one concerning the tariff exemption on approximately 80 percent of Indonesia's exports to Europe.
Previously, the Directorate General of Economic and Fiscal Policy at the Ministry of Finance, Febrio Kacaribu, stated that Indonesia will boost palm product exports to the European Union in the second semester of 2025. This commodity is expected to become a driving force after the IEU-CEPA negotiations reach the final stage.
The sale of palm products to the European market, according to Febrio, is part of the agreement known as IEU-CEPA. "We will be able to export more to the region, and hopefully it will be one of our driving sources," he said, as quoted on Tuesday, July 22, 2025.
IEU CEPA and the U.S. decision to lower Indonesia's tariff charges are expected to boost exports. Meanwhile, an agreement with the European Union was reached after almost 10 years of negotiations.
According to Febrio, the agreement will bring about a surge in trade and investment flows to Indonesia from the European Union. "So, this is a momentum that we will use for the second half of 2025," he said. Tempo
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Indonesia eyes major CPO export role in Canada, boosts agri ties
Jakarta (ANTARA) - Indonesia is aiming to become a major exporter of crude palm oil (CPO) to Canada while also strengthening strategic cooperation in the agricultural sector, including livestock development.
“We are pushing for Indonesia to become a major exporter of CPO to Canada. We are strengthening cooperation for mutual benefit,” said Agriculture Minister Andi Amran Sulaiman during a visit by Canadian Minister of Agriculture and Food Security, Heath MacDonald, on Thursday.
The visit reaffirmed Indonesia’s role as a respected strategic partner in Canada’s agricultural diplomacy within the Indo-Pacific region.
During their meeting, the two ministers discussed opportunities for cooperation amid global challenges such as climate uncertainty, geopolitical tensions, and food crises.
Sulaiman underscored the importance of a mutually beneficial partnership to enhance both national and global food security.
One key issue discussed was boosting Indonesia’s palm oil exports to Canada, where Indonesia is currently the second-largest supplier.
Related news: Committed to boosting climate partnership with Canada: Pratikno
The ministers also explored collaboration opportunities in livestock development—particularly dairy and live cattle—as well as in the transfer of modern agricultural technology and climate-resilient practices.
Canada reiterated its commitment to enhancing trade relations with Indonesia, including through the recently concluded Comprehensive Economic Partnership Agreement (CEPA).
Minister MacDonald stated that the current geopolitical climate presents an opportunity to increase trade with Indonesia, deepen bilateral ties, and foster sustainability—especially in the agricultural sector.
In 2024, Indonesia’s agricultural commodity exports to Canada surpassed US$222 million. The main exports included rubber (US$115.4 million), cocoa (US$58.2 million), coffee (US$29.5 million), and pineapple (US$5.8 million).
This latest meeting marked a significant milestone in building a robust agricultural partnership and aligns with Indonesia’s vision of developing a modern, sustainable, and inclusive agricultural sector. Antara News
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US cuts Malaysia tariff to 19% from 25%
KUALA LUMPUR: Malaysia will now face a 19% tariff on exports to the United States, reduced from the previous 25%, under an executive order signed by US President Donald Trump.
The new tariff structure takes effect in seven days and applies to goods entering the US for consumption, with limited exceptions for shipments already in transit.
Signed on July 31, 2025, the order amends Executive Order 14257 and imposes revised ad valorem duties on multiple trading partners, including all major Asean nations.
Under the latest tariff list, Malaysia, Thailand, Indonesia, the Philippines, and Cambodia each face a 19% rate.
Vietnam faces a 20% tariff, while Brunei is listed at 25%. Laos and Myanmar are hit with the highest rate at 40%. Singapore is not included in the latest round of adjustments. The StarMY
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Mexico-Malaysia: Strategic Cooperation Between Emerging Economies
Mexico and Malaysia have cultivated a dynamic and mutually beneficial trade relationship over the past few decades. Their strategic positions, Mexico as a gateway to North America and Latin America, and Malaysia as a pivotal player in Southeast Asia, reflect broader global trends toward supply chain diversification and trade liberalization.
Malaysia, located at a crucial nexus of global trade and production, is recognized as one of the world's most open economies, with approximately 40% of its employment linked to exports. While traditionally known for palm oil, rubber, gas, and oil, Malaysia has also specialized in advanced electronics, semiconductors, microprocessors, and innovative technology. As chair of the Association of Southeast Asian Nations (ASEAN) in 2025, Malaysia is central to a regional bloc projected to become the world's fourth-largest combined market by 2030. Furthermore, approximately 30% of global maritime trade transits through the Strait of Malacca, making it a critical international passage.
Mexico and Malaysia commemorated 50 years of diplomatic relations in 2024, marking a half-century of cooperation and mutual respect. Their formal diplomatic ties, established in 1974, have been steadily strengthened through high-level visits, memoranda of understanding, and active participation in international organizations such as the United Nations, the World Trade Organization (WTO), and the Asia-Pacific Economic Cooperation (APEC) forum. Both democratic and diverse nations, their shared membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a pact they co-founded, offers significant opportunities to intensify economic exchanges and enhance competitiveness. Mexico's aspiration for closer ties with ASEAN through adherence to the Treaty of Amity and Cooperation is expected to unlock further collaboration and mutual benefits.
Mexico-Malaysia Trade Relationship
Mexico stands as Malaysia's largest commercial partner in the Americas, with bilateral trade having doubled over the last decade: a clear indicator of their flourishing relationship. This collaboration extends beyond trade to encompass growing links in education, art, gastronomy, and interpersonal exchanges.
The trade relationship is notably complementary, focusing on industrial goods, electronics, and automotive components. Mexico's primary imports from Malaysia include semiconductors, electronic circuits, computers, and telecommunications equipment. Conversely, Malaysia imports Mexican goods such as automobiles, chemicals, processed foods, and beer.
In 2024, electronic integrated circuits were both Mexico's main sale to Malaysia (US$151 million) and its main purchase from Malaysia (US$6.03 billion), highlighting the deep integration in the electronics supply chain. The main origins of sales to Malaysia were Jalisco (US$275 million), Baja California (US$95 million), and Nuevo Leon (US$47 million). Meanwhile, the main destinations of purchases made to Malaysia were Chihuahua (US$6.36 billion), Jalisco (US$1.96 billion), and Nuevo León (US$1.27 billion).
In April 2025, international sales from Mexico to Malaysia were US$605 million, while international purchases reached US$13.31 billion. The above results in a trade balance of US$12.71 billion in favor of Malaysia.
While trade has seen consistent growth, foreign direct investment (FDI) remains an area for further development. From January to December 2024, Malaysian FDI in Mexico amounted to US$50.7 million, bringing the total from January 1999 to December 2024 to US$736 million. In the period January to December 2024, the Foreign Direct Investment (FDI) from Malaysia to Mexico was US$50.7 million. The states that received the highest FDI were Tlaxcala, Mexico City, and Quintana Roo.
From January 1999 to December 2024, Mexico has received a total of US$736 million in FDI from Malaysia, distributed in equity capital (US$659 million), inter-company debts (US$54.3 million), and reinvestment of earnings (US$22.4 million).
A Common Vision
Both countries are active participants in multilateral and regional agreements like the CPTPP, which eliminates tariffs and fosters regulatory alignment, significantly facilitating trade and investment. These overlapping memberships create a broader framework for cooperation, especially as global supply chains undergo reconfiguration. Mexico Business
Indonesian palm oil exports to EU granted zero percent tariffs on IEU-CEPA deal
TEMPO.CO, Jakarta - The Coordinating Minister for Economic Affairs Airlangga Hartarto discloses that Indonesian crude palm oil (CPO) is subject to a zero percent tariff, or duty-free, to Europe for up to 1 million tons. This is part of the agreement under the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), which has reached its final stages.
"I think, for Indonesia, in this agreement, we have agreed on two commodities, namely CPO and palm kernel oil (PKO). We have agreed on the quota, where for CPO it is around 1 million tons, and for PKO it depends on last year's exports to the European Union," said Airlangga at his office, Thursday, July 31, 2025.
The IEU-CEPA will be ratified in September this year, according to the minister. European Union Commissioner Maros Sefcovic will visit Indonesia in September to ink the deal.
He ensured that all the key terms contained in the agreement will come into effect in 2026, with one concerning the tariff exemption on approximately 80 percent of Indonesia's exports to Europe.
Previously, the Directorate General of Economic and Fiscal Policy at the Ministry of Finance, Febrio Kacaribu, stated that Indonesia will boost palm product exports to the European Union in the second semester of 2025. This commodity is expected to become a driving force after the IEU-CEPA negotiations reach the final stage.
The sale of palm products to the European market, according to Febrio, is part of the agreement known as IEU-CEPA. "We will be able to export more to the region, and hopefully it will be one of our driving sources," he said, as quoted on Tuesday, July 22, 2025.
IEU CEPA and the U.S. decision to lower Indonesia's tariff charges are expected to boost exports. Meanwhile, an agreement with the European Union was reached after almost 10 years of negotiations.
According to Febrio, the agreement will bring about a surge in trade and investment flows to Indonesia from the European Union. "So, this is a momentum that we will use for the second half of 2025," he said. Tempo
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Indonesia eyes major CPO export role in Canada, boosts agri ties
Jakarta (ANTARA) - Indonesia is aiming to become a major exporter of crude palm oil (CPO) to Canada while also strengthening strategic cooperation in the agricultural sector, including livestock development.
“We are pushing for Indonesia to become a major exporter of CPO to Canada. We are strengthening cooperation for mutual benefit,” said Agriculture Minister Andi Amran Sulaiman during a visit by Canadian Minister of Agriculture and Food Security, Heath MacDonald, on Thursday.
The visit reaffirmed Indonesia’s role as a respected strategic partner in Canada’s agricultural diplomacy within the Indo-Pacific region.
During their meeting, the two ministers discussed opportunities for cooperation amid global challenges such as climate uncertainty, geopolitical tensions, and food crises.
Sulaiman underscored the importance of a mutually beneficial partnership to enhance both national and global food security.
One key issue discussed was boosting Indonesia’s palm oil exports to Canada, where Indonesia is currently the second-largest supplier.
Related news: Committed to boosting climate partnership with Canada: Pratikno
The ministers also explored collaboration opportunities in livestock development—particularly dairy and live cattle—as well as in the transfer of modern agricultural technology and climate-resilient practices.
Canada reiterated its commitment to enhancing trade relations with Indonesia, including through the recently concluded Comprehensive Economic Partnership Agreement (CEPA).
Minister MacDonald stated that the current geopolitical climate presents an opportunity to increase trade with Indonesia, deepen bilateral ties, and foster sustainability—especially in the agricultural sector.
In 2024, Indonesia’s agricultural commodity exports to Canada surpassed US$222 million. The main exports included rubber (US$115.4 million), cocoa (US$58.2 million), coffee (US$29.5 million), and pineapple (US$5.8 million).
This latest meeting marked a significant milestone in building a robust agricultural partnership and aligns with Indonesia’s vision of developing a modern, sustainable, and inclusive agricultural sector. Antara News
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US cuts Malaysia tariff to 19% from 25%
KUALA LUMPUR: Malaysia will now face a 19% tariff on exports to the United States, reduced from the previous 25%, under an executive order signed by US President Donald Trump.
The new tariff structure takes effect in seven days and applies to goods entering the US for consumption, with limited exceptions for shipments already in transit.
Signed on July 31, 2025, the order amends Executive Order 14257 and imposes revised ad valorem duties on multiple trading partners, including all major Asean nations.
Under the latest tariff list, Malaysia, Thailand, Indonesia, the Philippines, and Cambodia each face a 19% rate.
Vietnam faces a 20% tariff, while Brunei is listed at 25%. Laos and Myanmar are hit with the highest rate at 40%. Singapore is not included in the latest round of adjustments. The StarMY
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Mexico-Malaysia: Strategic Cooperation Between Emerging Economies
Mexico and Malaysia have cultivated a dynamic and mutually beneficial trade relationship over the past few decades. Their strategic positions, Mexico as a gateway to North America and Latin America, and Malaysia as a pivotal player in Southeast Asia, reflect broader global trends toward supply chain diversification and trade liberalization.
Malaysia, located at a crucial nexus of global trade and production, is recognized as one of the world's most open economies, with approximately 40% of its employment linked to exports. While traditionally known for palm oil, rubber, gas, and oil, Malaysia has also specialized in advanced electronics, semiconductors, microprocessors, and innovative technology. As chair of the Association of Southeast Asian Nations (ASEAN) in 2025, Malaysia is central to a regional bloc projected to become the world's fourth-largest combined market by 2030. Furthermore, approximately 30% of global maritime trade transits through the Strait of Malacca, making it a critical international passage.
Mexico and Malaysia commemorated 50 years of diplomatic relations in 2024, marking a half-century of cooperation and mutual respect. Their formal diplomatic ties, established in 1974, have been steadily strengthened through high-level visits, memoranda of understanding, and active participation in international organizations such as the United Nations, the World Trade Organization (WTO), and the Asia-Pacific Economic Cooperation (APEC) forum. Both democratic and diverse nations, their shared membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a pact they co-founded, offers significant opportunities to intensify economic exchanges and enhance competitiveness. Mexico's aspiration for closer ties with ASEAN through adherence to the Treaty of Amity and Cooperation is expected to unlock further collaboration and mutual benefits.
Mexico-Malaysia Trade Relationship
Mexico stands as Malaysia's largest commercial partner in the Americas, with bilateral trade having doubled over the last decade: a clear indicator of their flourishing relationship. This collaboration extends beyond trade to encompass growing links in education, art, gastronomy, and interpersonal exchanges.
The trade relationship is notably complementary, focusing on industrial goods, electronics, and automotive components. Mexico's primary imports from Malaysia include semiconductors, electronic circuits, computers, and telecommunications equipment. Conversely, Malaysia imports Mexican goods such as automobiles, chemicals, processed foods, and beer.
In 2024, electronic integrated circuits were both Mexico's main sale to Malaysia (US$151 million) and its main purchase from Malaysia (US$6.03 billion), highlighting the deep integration in the electronics supply chain. The main origins of sales to Malaysia were Jalisco (US$275 million), Baja California (US$95 million), and Nuevo Leon (US$47 million). Meanwhile, the main destinations of purchases made to Malaysia were Chihuahua (US$6.36 billion), Jalisco (US$1.96 billion), and Nuevo León (US$1.27 billion).
In April 2025, international sales from Mexico to Malaysia were US$605 million, while international purchases reached US$13.31 billion. The above results in a trade balance of US$12.71 billion in favor of Malaysia.
While trade has seen consistent growth, foreign direct investment (FDI) remains an area for further development. From January to December 2024, Malaysian FDI in Mexico amounted to US$50.7 million, bringing the total from January 1999 to December 2024 to US$736 million. In the period January to December 2024, the Foreign Direct Investment (FDI) from Malaysia to Mexico was US$50.7 million. The states that received the highest FDI were Tlaxcala, Mexico City, and Quintana Roo.
From January 1999 to December 2024, Mexico has received a total of US$736 million in FDI from Malaysia, distributed in equity capital (US$659 million), inter-company debts (US$54.3 million), and reinvestment of earnings (US$22.4 million).
A Common Vision
Both countries are active participants in multilateral and regional agreements like the CPTPP, which eliminates tariffs and fosters regulatory alignment, significantly facilitating trade and investment. These overlapping memberships create a broader framework for cooperation, especially as global supply chains undergo reconfiguration. Mexico Business
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August 2025 CSPO Watch