Palm Oil News February 2025
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February 07, 2025
India's push for self-reliance in palm oil gets a boost with NMEO-OP
From packaged foods to personal care products, palm oil is an irreplaceable ingredient that makes modern life possible. Hence, as a country that is the world’s biggest importer of crude edible palm oil and accounts for 38 per cent of global palm oil consumption, achieving self-sufficiency in palm oil production is not only essential for reducing the considerable foreign exchange burden but also for enhancing sustainability in palm oil consumption. It is through the launch of the National Mission on Edible Oil - Oil Palm (NMEO-OP) in 2021 that India kickstarted its crucial journey towards self-reliance in edible oils.
With its comprehensive framework, NMEO-OP aims to enhance domestic production while securing farmers’ livelihoods. The mission outlines a farmer-centric pathway to increase palm oil production sustainably through tools and incentives that make oil palm cultivation a viable and profitable endeavour for farmers, the industry, and the nation.
Sowing the seeds of farmers’ prosperity
The well-structured guidelines of NMEO-OP have made oil palm cultivation particularly attractive for India’s small-scale farmers, with a special focus on subsidies, sustainability, and livelihood security.
Farmers are encouraged to utilise degraded and wasteland for oil palm cultivation, optimising land use to transform barren plots into sources of consistent income. While oil palm cultivation is synonymous with deforestation in other parts of the world, the Indian model ensures that domestic palm oil production is environmentally friendly and can be sustained in the long term. Business Standard
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Sunflower, soyabean oils gaining market in India over pricey palm oil
Palm oil imports down 24 per cent in the first two months of oil year 2024-25
As palm oil has turned expensive over soft oils in the past 4-5 months, domestic consumers in India are shifting to alternatives such as sunflower and soyabean oil. Businessline
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GAPKI asks expanded oil palm oil plantations to meet B50-B100 mandate by 2045
The Indonesian Palm Oil Association (GAPKI) says that Indonesia needs to have extended oil palm plantations to meet the needs of the mandatory program of mixing fuel oil (BBM) and biofuel (BBN) by 50 percent or B50 up to B100.
Extensification of oil palm plantations is the expansion of agricultural areas into previously unused areas to increase production from the resulting products.
Edi Suhardi, Head of GAPKI’s Positive Campaign Division, said that palm oil exports have begun to be disrupted when they have to fulfill the B40 mandate or obligation. Therefore, palm oil supply will not be sufficient if it has to fulfill the supply for B50.
“Palm oil production in Indonesia has stagnated at around 50 million tons per year. If it is increased to B50, it can only be done through extensification,” Edi said in a discussion in Jakarta on Wednesday, February 5, 2025.
Edi said that increasing palm oil supply would take a long time if it was only done by increasing plant productivity or intensification.
To increase production growth using the intensification method, it takes at least five to 10 years to achieve maximum results.
“Because oil palm is not like rice or corn which can bear fruit in a few months. With oil palm, it takes at least 5 years before productivity increases,” he said.
Therefore, oil palm land extension is needed in order to achieve the B100 target in 2045, he added.
“Because B100 requires palm oil production of up to 100 million tons per year or twice the current amount,” he concluded. Indonesia Business Post
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Surge in legal land clearing pushes up Indonesia deforestation rate in 2024
The country lost 261,575 hectares (646,366 acres) of forests, an area four times the size of Jakarta. That’s up 1.6% from 2023, according to data from environmental NGO Auriga Nusantara, which has been monitoring the country’s forest cover for years.
“While it’s only 4,000 hectares [nearly 10,000 acres] of increase [in forest loss], it’s still a worrying trend,” Auriga Nusantara director Timer Manurung told Mongabay. “At a time when natural forests [in Indonesia] keep shrinking, this number is still significant.”
This increase after years of declining deforestation shows how the government has failed to protect the country’s remaining forests, estimated at less than 90 million hectares (222 million acres), according to official data, Timer said.
While the government has issued a number of forest protection policies, they’re aimed mainly at restricting the issuance of new concessions for plantations and other commercial activities that involve clearing forests. But there’s no policy to protect the remaining stands of forest that lie within existing concessions that have already been granted by the government, Timer said.
In fact, the government incentivizes companies to clear forests within their concessions once they have the permits to do so, and punishes them for not doing so fast enough by rescinding the concessions and awarding them to other developers.
As a result, there’s been a noticeable shift in the deforestation trend: from illegal deforestation that occurs outside concessions, to legal deforestation inside concessions, permitted and encouraged by the government, Timer said.
The shift has been stark: 97% of the deforestation that Auriga Nusantara recorded in 2024 occurred within legal areas, such as concessions and infrastructure projects. Mongabay
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Palm Oil Biodiesel
Mandatory B40 Biodiesel Policy Risks Causing National Palm Oil Deficit
InfoSAWIT, JAKARTA – The B40 biodiesel development policy that has been implemented since early 2025 is considered to have a high risk of causing a national palm oil deficit. As a result, the supply of cooking oil for domestic food needs has the potential to be disrupted. This is due to national palm oil production which is projected to fall by 5.1% this year. The decline in production is due to the increasing number of oil palm plants that have entered an unproductive age and require rejuvenation.
On the other hand, domestic demand for palm oil continues to increase along with the implementation of biodiesel policies and other national programs such as Free Nutritious Meals. However, biodiesel development should not be completed with the expansion of palm oil plantations that can trigger deforestation. Based on records from several community organizations, mixing 40% (B40) in biodiesel has the potential to require additional palm oil plantations of up to 138 thousand hectares. In fact, there are alternative solutions that the government can take without opening new land.
"We calculate that the need for CPO raw materials for the implementation of B40 can reach 14.8 million MT, up 31.3% compared to 2024. This will trigger a surge in domestic CPO demand, especially when the government is also running the Free Nutritious Meal program," said Head of the Advocacy Department of the Palm Oil Farmers Union (SPKS), Marselinus Andry in his statement to InfoSAWIT , Friday (7/2/2205).
The implementation of B40 is expected to increase the national biodiesel quota to 15.6 million kiloliters from the previous 12.98 million kiloliters in the B35 program. SPKS assesses that this policy has the potential to cause a national palm oil deficit of 1.04 million MT, due to the imbalance between domestic production and consumption.
The government is trying to ensure the availability of domestic industrial raw materials by tightening exports of palm oil mill effluent (POME), high acid palm oil residue (HAPOR), and used cooking oil (UCO). This policy is regulated in the Regulation of the Minister of Trade Number 2 of 2025 which came into effect on January 8, 2025. However, this policy is considered not to have resolved the root of the palm oil deficit problem, and has the potential to harm independent palm oil farmers who supply raw materials for palm oil factories.
"CPO production from independent palm oil farmers has great potential to meet domestic biodiesel needs. The government needs to regulate the supply chain from independent farmers, including the supply of fresh fruit bunches, so that they can contribute to biodiesel production," Andry added.
Currently, the biodiesel industry supply chain still relies on large corporations and has not involved independent farmer cooperatives. In fact, Indonesia has around 5.31 million hectares of independent oil palm plantations that have the potential to produce 14.87 million MT of CPO per year, an amount sufficient to cover the needs of B40 biodiesel production. In addition, used cooking oil can also be an alternative source of biodiesel raw materials that until now have not been supported by subsidies from the Plantation Fund Management Agency.
The palm oil deficit also raises concerns about the scarcity and increase in cooking oil prices. The situation that occurred in 2022-2023 is feared to happen again. In fact, the Fixed Retail Price (HET) for subsidized cooking oil "Our Oil" has increased from IDR 14,000 to IDR 18,000 per liter in November 2024. Infosawit
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Over 320,000 litres of crude palm oil worth more than RM1.3mil seized in Johor
KULAI: Some 325,400 litres of crude palm oil worth more than RM1.3mil have been seized during a raid at an illegal palm oil processing and storage premise in Air Bemban here.
Johor police chief Comm Datuk M Kumar said that a joint operation was carried out between the Marine Police Region II and southern region Malaysia Palm Oil Board (MPOB) at around 10am on Thursday (Feb 6) morning.
“The teams inspected an unnumbered premise that has become a store to keep and process palm oil. A 46-year-old local man was also detained at the scene,” he said in a statement here on Friday (Feb 7).
Comm Kumar added they also made several seizures at the location including 171 IBC tanks filled with palm oil valued at RM427,500.
He said the teams also found another 52 empty IBC tanks, four skid tanks, a trailer tank, two gallon tanks, two forklifts and three hoses at the scene as well.
“The total seized crude palm oil is 325,400 litres with an estimated value of more than RM1.3mil,” he said adding that the total value of all the seized items was worth more than RM2.4mil.
Comm Kumar also said that the suspect and the seized items have been handed over to MPOB for further investigation. The StarMY
India's push for self-reliance in palm oil gets a boost with NMEO-OP
From packaged foods to personal care products, palm oil is an irreplaceable ingredient that makes modern life possible. Hence, as a country that is the world’s biggest importer of crude edible palm oil and accounts for 38 per cent of global palm oil consumption, achieving self-sufficiency in palm oil production is not only essential for reducing the considerable foreign exchange burden but also for enhancing sustainability in palm oil consumption. It is through the launch of the National Mission on Edible Oil - Oil Palm (NMEO-OP) in 2021 that India kickstarted its crucial journey towards self-reliance in edible oils.
With its comprehensive framework, NMEO-OP aims to enhance domestic production while securing farmers’ livelihoods. The mission outlines a farmer-centric pathway to increase palm oil production sustainably through tools and incentives that make oil palm cultivation a viable and profitable endeavour for farmers, the industry, and the nation.
Sowing the seeds of farmers’ prosperity
The well-structured guidelines of NMEO-OP have made oil palm cultivation particularly attractive for India’s small-scale farmers, with a special focus on subsidies, sustainability, and livelihood security.
Farmers are encouraged to utilise degraded and wasteland for oil palm cultivation, optimising land use to transform barren plots into sources of consistent income. While oil palm cultivation is synonymous with deforestation in other parts of the world, the Indian model ensures that domestic palm oil production is environmentally friendly and can be sustained in the long term. Business Standard
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Sunflower, soyabean oils gaining market in India over pricey palm oil
Palm oil imports down 24 per cent in the first two months of oil year 2024-25
As palm oil has turned expensive over soft oils in the past 4-5 months, domestic consumers in India are shifting to alternatives such as sunflower and soyabean oil. Businessline
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GAPKI asks expanded oil palm oil plantations to meet B50-B100 mandate by 2045
The Indonesian Palm Oil Association (GAPKI) says that Indonesia needs to have extended oil palm plantations to meet the needs of the mandatory program of mixing fuel oil (BBM) and biofuel (BBN) by 50 percent or B50 up to B100.
Extensification of oil palm plantations is the expansion of agricultural areas into previously unused areas to increase production from the resulting products.
Edi Suhardi, Head of GAPKI’s Positive Campaign Division, said that palm oil exports have begun to be disrupted when they have to fulfill the B40 mandate or obligation. Therefore, palm oil supply will not be sufficient if it has to fulfill the supply for B50.
“Palm oil production in Indonesia has stagnated at around 50 million tons per year. If it is increased to B50, it can only be done through extensification,” Edi said in a discussion in Jakarta on Wednesday, February 5, 2025.
Edi said that increasing palm oil supply would take a long time if it was only done by increasing plant productivity or intensification.
To increase production growth using the intensification method, it takes at least five to 10 years to achieve maximum results.
“Because oil palm is not like rice or corn which can bear fruit in a few months. With oil palm, it takes at least 5 years before productivity increases,” he said.
Therefore, oil palm land extension is needed in order to achieve the B100 target in 2045, he added.
“Because B100 requires palm oil production of up to 100 million tons per year or twice the current amount,” he concluded. Indonesia Business Post
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Surge in legal land clearing pushes up Indonesia deforestation rate in 2024
- Indonesia’s deforestation increased in 2024 to its highest level since 2021, with forest area four times the size of Jakarta lost; 97% of this occurred within legal concessions, highlighting a shift from illegal to legal deforestation.
- More than half of the forest loss affected critical habitats for threatened species like orangutans, tigers and elephants, particularly in Borneo and Sumatra.
- Key industries driving deforestation include palm oil, pulpwood, and nickel mining, with significant deforestation in Kalimantan, Sumatra and Papua; a new pulp mill in Kalimantan in particular may be driving aggressive land clearing.
- Despite an existing moratorium on new forest-clearance permits, there’s no protection for forests within existing concessions, allowing continued deforestation, and spurring calls for stronger policies to safeguard remaining natural forests.
The country lost 261,575 hectares (646,366 acres) of forests, an area four times the size of Jakarta. That’s up 1.6% from 2023, according to data from environmental NGO Auriga Nusantara, which has been monitoring the country’s forest cover for years.
“While it’s only 4,000 hectares [nearly 10,000 acres] of increase [in forest loss], it’s still a worrying trend,” Auriga Nusantara director Timer Manurung told Mongabay. “At a time when natural forests [in Indonesia] keep shrinking, this number is still significant.”
This increase after years of declining deforestation shows how the government has failed to protect the country’s remaining forests, estimated at less than 90 million hectares (222 million acres), according to official data, Timer said.
While the government has issued a number of forest protection policies, they’re aimed mainly at restricting the issuance of new concessions for plantations and other commercial activities that involve clearing forests. But there’s no policy to protect the remaining stands of forest that lie within existing concessions that have already been granted by the government, Timer said.
In fact, the government incentivizes companies to clear forests within their concessions once they have the permits to do so, and punishes them for not doing so fast enough by rescinding the concessions and awarding them to other developers.
As a result, there’s been a noticeable shift in the deforestation trend: from illegal deforestation that occurs outside concessions, to legal deforestation inside concessions, permitted and encouraged by the government, Timer said.
The shift has been stark: 97% of the deforestation that Auriga Nusantara recorded in 2024 occurred within legal areas, such as concessions and infrastructure projects. Mongabay
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Palm Oil Biodiesel
Mandatory B40 Biodiesel Policy Risks Causing National Palm Oil Deficit
InfoSAWIT, JAKARTA – The B40 biodiesel development policy that has been implemented since early 2025 is considered to have a high risk of causing a national palm oil deficit. As a result, the supply of cooking oil for domestic food needs has the potential to be disrupted. This is due to national palm oil production which is projected to fall by 5.1% this year. The decline in production is due to the increasing number of oil palm plants that have entered an unproductive age and require rejuvenation.
On the other hand, domestic demand for palm oil continues to increase along with the implementation of biodiesel policies and other national programs such as Free Nutritious Meals. However, biodiesel development should not be completed with the expansion of palm oil plantations that can trigger deforestation. Based on records from several community organizations, mixing 40% (B40) in biodiesel has the potential to require additional palm oil plantations of up to 138 thousand hectares. In fact, there are alternative solutions that the government can take without opening new land.
"We calculate that the need for CPO raw materials for the implementation of B40 can reach 14.8 million MT, up 31.3% compared to 2024. This will trigger a surge in domestic CPO demand, especially when the government is also running the Free Nutritious Meal program," said Head of the Advocacy Department of the Palm Oil Farmers Union (SPKS), Marselinus Andry in his statement to InfoSAWIT , Friday (7/2/2205).
The implementation of B40 is expected to increase the national biodiesel quota to 15.6 million kiloliters from the previous 12.98 million kiloliters in the B35 program. SPKS assesses that this policy has the potential to cause a national palm oil deficit of 1.04 million MT, due to the imbalance between domestic production and consumption.
The government is trying to ensure the availability of domestic industrial raw materials by tightening exports of palm oil mill effluent (POME), high acid palm oil residue (HAPOR), and used cooking oil (UCO). This policy is regulated in the Regulation of the Minister of Trade Number 2 of 2025 which came into effect on January 8, 2025. However, this policy is considered not to have resolved the root of the palm oil deficit problem, and has the potential to harm independent palm oil farmers who supply raw materials for palm oil factories.
"CPO production from independent palm oil farmers has great potential to meet domestic biodiesel needs. The government needs to regulate the supply chain from independent farmers, including the supply of fresh fruit bunches, so that they can contribute to biodiesel production," Andry added.
Currently, the biodiesel industry supply chain still relies on large corporations and has not involved independent farmer cooperatives. In fact, Indonesia has around 5.31 million hectares of independent oil palm plantations that have the potential to produce 14.87 million MT of CPO per year, an amount sufficient to cover the needs of B40 biodiesel production. In addition, used cooking oil can also be an alternative source of biodiesel raw materials that until now have not been supported by subsidies from the Plantation Fund Management Agency.
The palm oil deficit also raises concerns about the scarcity and increase in cooking oil prices. The situation that occurred in 2022-2023 is feared to happen again. In fact, the Fixed Retail Price (HET) for subsidized cooking oil "Our Oil" has increased from IDR 14,000 to IDR 18,000 per liter in November 2024. Infosawit
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Over 320,000 litres of crude palm oil worth more than RM1.3mil seized in Johor
KULAI: Some 325,400 litres of crude palm oil worth more than RM1.3mil have been seized during a raid at an illegal palm oil processing and storage premise in Air Bemban here.
Johor police chief Comm Datuk M Kumar said that a joint operation was carried out between the Marine Police Region II and southern region Malaysia Palm Oil Board (MPOB) at around 10am on Thursday (Feb 6) morning.
“The teams inspected an unnumbered premise that has become a store to keep and process palm oil. A 46-year-old local man was also detained at the scene,” he said in a statement here on Friday (Feb 7).
Comm Kumar added they also made several seizures at the location including 171 IBC tanks filled with palm oil valued at RM427,500.
He said the teams also found another 52 empty IBC tanks, four skid tanks, a trailer tank, two gallon tanks, two forklifts and three hoses at the scene as well.
“The total seized crude palm oil is 325,400 litres with an estimated value of more than RM1.3mil,” he said adding that the total value of all the seized items was worth more than RM2.4mil.
Comm Kumar also said that the suspect and the seized items have been handed over to MPOB for further investigation. The StarMY
February 06, 2025
RSPO prepares for next stage of sustainable palm oil production
The Roundtable on Sustainable Palm Oil (RSPO), a global standards and governance body, is advocating for stronger regulations and frameworks, and taking action to plug supply chain and traceability interruptions.
According to RSPO’s Impact Report 2024, the certified palm oil area across the globe now spans 5.2 million hectares, stretching across 23 countries – a figure that grew by 263,028 hectares in 2023. RSPO certification has conserved 466,609 hectares, an area of land 19 times the size of Kuala Lumpur. In addition, remediation covers an area twice the size of Mumbai, totalling 112,954 hectares.
Its latest data shows that in 2023, RSPO credits worth $7 million (€6.7m) directly benefited 85 certified independent smallholder groups. Nine RSPO community outreach and engagement programmes are ongoing in seven countries and the organisation works with over 200 local grassroots organisations.
In its Impact Report 2024, which marks its 20th anniversary, RSPO details its future-looking plans to create a global partnership that makes palm oil sustainable by considering its impact on people, the planet, and prosperity.
Kamal Prakash Seth, global palm oil lead for the World Wildlife Fund (WWF), one of the founding members of RSPO, said: “For the next 20 years, we want to see more robust global regulations that promote a responsible palm oil industry.
“We want to see supply chain actors go beyond certification initiatives like a verified supply chain, ensuring palm oil production is free from deforestation conversion and human rights violations.”
Implementing a theory of change
After celebrating its 20th anniversary, RSPO is now turning its attention to upcoming challenges and its vision for the next era of sustainable palm oil development. In the coming years, RSPO is calling for more robust national regulations and frameworks to bolster the landscape surrounding sustainable palm oil production.
In 2023, RSPO modified its Theory of Change (ToC) to offer increased clarity and purpose to the organisation and its members’ required actions, strategies, and output. The updated ToC will move away from a cause-and-effect model as RSPO seeks to better reflect the interconnected pathways that successfully achieve sustainable palm oil impacts and changes.
In 2023, 26 new RSPO Smallholder Support Fund (RSSF) projects were funded to benefit 4,787 new independent smallholders (ISHs) worldwide in six countries. As of December 2023, over 164,000 smallholders across 15 countries were RSPO certified.
Indonesia accounts for more than 70% of this figure, with almost 100,000 scheme smallholders and over 25,000 ISHs. Papua New Guinea follows, with nearly 19,000 scheme smallholders, and then Thailand, at over 7,000 ISHs.
Filling supply chain and traceability gaps Ingredients Network
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Uncovering the Deforestation, Mismanagement, and Funders Behind a Malaysian Oil Palm Plantation: Low Choon Chyuan
After being tipped off about unsustainable logging at a state-run oil palm plantation, former Rainforest Investigations Network (RIN) fellow Low Choon Chyuan started a year-long investigation during which he uncovered “the failure of the plantation business, the environmental impacts, and how they got multiple loans from a local bank.”
“The investigation exposed the structural weaknesses in Malaysia’s forest management,” Low explained. “Despite various environmental commitments and promises given by the local palm oil industry, this case proved that poor enforcement and monitoring by the government, and the inconsistencies among different ministries in the government, has enabled bad actors to act with impunity.”
In 2015, state-owned company Perbadanan Kemajuan Negeri Pahang (PKNP) started planting oil palms in Hulu Tembeling, Jerantut, Pahang. The site is near Taman Negara National Park, a dense mature forest with rich, but fragile, biodiversity. When Low went on the ground in 2023, he saw how the large-scale project had been mismanaged. It seemed that mainly, the company had just used the project to clear the forest. GIJN
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Okomu Oil Palm FY PAT up 61.9%
Okomu Oil Palm full year profit after tax grew 61.9 per cent, the oil palm processor also reported a 73.4 per cent revenue growth, primarily driven by local sales which grew 65 per cent and contributed 74.8 per cent to total revenue. Graham Hefer, Managing Director of Okomu Oil Palm joins CNBC Africa for this discussion. CNBC Africa
RSPO prepares for next stage of sustainable palm oil production
The Roundtable on Sustainable Palm Oil (RSPO), a global standards and governance body, is advocating for stronger regulations and frameworks, and taking action to plug supply chain and traceability interruptions.
According to RSPO’s Impact Report 2024, the certified palm oil area across the globe now spans 5.2 million hectares, stretching across 23 countries – a figure that grew by 263,028 hectares in 2023. RSPO certification has conserved 466,609 hectares, an area of land 19 times the size of Kuala Lumpur. In addition, remediation covers an area twice the size of Mumbai, totalling 112,954 hectares.
Its latest data shows that in 2023, RSPO credits worth $7 million (€6.7m) directly benefited 85 certified independent smallholder groups. Nine RSPO community outreach and engagement programmes are ongoing in seven countries and the organisation works with over 200 local grassroots organisations.
In its Impact Report 2024, which marks its 20th anniversary, RSPO details its future-looking plans to create a global partnership that makes palm oil sustainable by considering its impact on people, the planet, and prosperity.
Kamal Prakash Seth, global palm oil lead for the World Wildlife Fund (WWF), one of the founding members of RSPO, said: “For the next 20 years, we want to see more robust global regulations that promote a responsible palm oil industry.
“We want to see supply chain actors go beyond certification initiatives like a verified supply chain, ensuring palm oil production is free from deforestation conversion and human rights violations.”
Implementing a theory of change
After celebrating its 20th anniversary, RSPO is now turning its attention to upcoming challenges and its vision for the next era of sustainable palm oil development. In the coming years, RSPO is calling for more robust national regulations and frameworks to bolster the landscape surrounding sustainable palm oil production.
In 2023, RSPO modified its Theory of Change (ToC) to offer increased clarity and purpose to the organisation and its members’ required actions, strategies, and output. The updated ToC will move away from a cause-and-effect model as RSPO seeks to better reflect the interconnected pathways that successfully achieve sustainable palm oil impacts and changes.
In 2023, 26 new RSPO Smallholder Support Fund (RSSF) projects were funded to benefit 4,787 new independent smallholders (ISHs) worldwide in six countries. As of December 2023, over 164,000 smallholders across 15 countries were RSPO certified.
Indonesia accounts for more than 70% of this figure, with almost 100,000 scheme smallholders and over 25,000 ISHs. Papua New Guinea follows, with nearly 19,000 scheme smallholders, and then Thailand, at over 7,000 ISHs.
Filling supply chain and traceability gaps Ingredients Network
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Uncovering the Deforestation, Mismanagement, and Funders Behind a Malaysian Oil Palm Plantation: Low Choon Chyuan
After being tipped off about unsustainable logging at a state-run oil palm plantation, former Rainforest Investigations Network (RIN) fellow Low Choon Chyuan started a year-long investigation during which he uncovered “the failure of the plantation business, the environmental impacts, and how they got multiple loans from a local bank.”
“The investigation exposed the structural weaknesses in Malaysia’s forest management,” Low explained. “Despite various environmental commitments and promises given by the local palm oil industry, this case proved that poor enforcement and monitoring by the government, and the inconsistencies among different ministries in the government, has enabled bad actors to act with impunity.”
In 2015, state-owned company Perbadanan Kemajuan Negeri Pahang (PKNP) started planting oil palms in Hulu Tembeling, Jerantut, Pahang. The site is near Taman Negara National Park, a dense mature forest with rich, but fragile, biodiversity. When Low went on the ground in 2023, he saw how the large-scale project had been mismanaged. It seemed that mainly, the company had just used the project to clear the forest. GIJN
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Okomu Oil Palm FY PAT up 61.9%
Okomu Oil Palm full year profit after tax grew 61.9 per cent, the oil palm processor also reported a 73.4 per cent revenue growth, primarily driven by local sales which grew 65 per cent and contributed 74.8 per cent to total revenue. Graham Hefer, Managing Director of Okomu Oil Palm joins CNBC Africa for this discussion. CNBC Africa
February 05, 2025
Indonesia to Implement B50 Palm Oil Biodiesel Mandate Next Year
Jakarta. Indonesia is sticking to the plan of distributing biodiesel with higher palm oil content starting in 2026.
Indonesia has just begun implementing the B40 mandate early this year. The B40 is a type of biodiesel blend with 40 percent palm oil content and 60 percent diesel fuel. This marks an increase from the B35 mandate that was in place for two years. President Prabowo Subianto wants Indonesia to be self-sufficient in its energy supply. With a higher biodiesel mandate, the world’s largest palm oil producer Indonesia can import less diesel.
“We are trying to implement a B50 mandate in 2026. If we could do that, hopefully, we would no longer have to import diesel. This is part of us trying to reach energy self-sufficiency,” Energy Minister Bahlil Lahadalia told reporters in Jakarta on Monday.
The ministry data shows that Indonesia produced 13.15 million kiloliters of biodiesel throughout 2024, far exceeding the targeted 11.3 million kiloliters. Indonesia also managed to save about $9.33 billion in foreign exchange as the country cut down its diesel import thanks to the B35 policy. Indonesia’s biodiesel production totaled 3.42 million kiloliters in 2017, during which the palm oil content stood at 20 percent. Production eventually soared over the years as the palm oil content grew.
Indonesia is set to produce around 15.6 million kiloliters of biodiesel in 2025. According to government estimates, Indonesia will be able to save at least Rp 147.5 trillion (approximately $9 billion) in foreign exchange this year with the B40 mandate now in place. The policy is expected to bring down diesel imports to 4.6 million kiloliters.
Not long ago, the government revealed that they would deploy a team starting this week to keep an eye on the distributed B40 biodiesel. This watchdog aims to make sure that the circulating biodiesel really has a 40 percent palm oil share. Jakarta Globe
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Indonesia’s CPO export levy hike will make Malaysian crude palm oil more competitive: Experts
PETALING JAYA: Industry experts opine that an increase in Indonesia’s crude palm oil (CPO) export levy will enhance demand for Malaysian CPO, rendering it more competitively priced.
According to TA Securities, demand for Malaysian palm oil could rise if Indonesia implements its plan to raise the export levy to support a higher biodiesel usage mandate.
The research house said that raising the export levy to 10% would increase the price of Indonesian CPO by US$26.49 per tonne, making it even more expensive than Malaysian palm oil. It noted that the price of palm oil from Indonesia currently stands at a premium of US$146.30 per tonne compared to Malaysia’s.
“We believe that the relatively high Indonesian CPO export tax and duty could drive demand towards Malaysian CPO, supporting its price and market share,“ it said.
Indonesia imposes an export levy on CPO and other palm oil products to fund its biodiesel programme, specifically the B40 mandate, which aims to increase the blend of palm-based biofuel in diesel to 40%.
In December 2024, the Indonesian government announced plans to raise the CPO export levy from 7.5% to 10% to support higher subsidies for the biodiesel programme. However, the implementation of the B40 mandate has faced delays, and industry observers anticipate a gradual rollout due to funding challenges and technical hurdles. The SunMY
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Prabowo's Palm Oil Expansion Policy Draws Criticism, Potential to Worsen Social and Environmental Crisis
InfoSAWIT, JAKARTA – The first hundred days of President Prabowo Subianto’s administration have been marked by policies that emphasize food and energy security as top priorities. One of the major plans proposed is the expansion of 20 million hectares of oil palm plantations to support food and energy independence. However, this policy has drawn criticism because it is considered to be at risk of worsening the social and environmental crisis.
This palm oil expansion plan is feared to accelerate deforestation, worsen agrarian conflicts, and ignore the rights of workers and indigenous peoples. These concerns have become increasingly prominent after the meeting between President Prabowo and Malaysian Prime Minister Anwar Ibrahim on January 27, 2025. The meeting discussed economic cooperation, including in the palm oil sector. However, according to TuK INDONESIA and Transnational Palm Oil Labor Solidarity (TPOLS), the two leaders' discussions did not sufficiently pay attention to the environmental and social impacts of the palm oil industry expansion.
In the Banking on Biodiversity Collapse 2024 report released by Forests & Finance, it is stated that more than 50 major world banks are still providing funding to sectors at risk of destroying tropical forests, especially in Indonesia and Malaysia. In the period 2016 to June 2024, a total of USD 89.17 billion or around IDR 1,289.59 trillion in credit has been channeled to projects directly related to deforestation, land conversion, and violations of indigenous peoples' rights.
The palm oil sector is a major contributor to the economy, but it is also a major driver of tropical forest loss and land grabbing. Amid global pressure for sustainability, the European Union has implemented the European Union Deforestation Regulation (EUDR), which bans the import of products from deforestation. If palm oil expansion is not managed properly, Indonesia and Malaysia risk losing access to the EU market, which is subject to stringent sustainability standards. InfoSawit
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Another restaurant chain takes a stance against seed oils
Full-service True Food Kitchen is eliminating seed oils across its 46 locations, transitioning to avocado and olive oil.
True Food Kitchen announced Tuesday that its menu is going 100% seed-oil free across all 46 locations.
The Scottsdale, Arizona-based full-service chain is transitioning to heart-healthy avocado and olive oil for all its menu applications. Industrial seed oils such as canola, sunflower, corn and soybean have gotten a bad rap lately for causing inflammation in the body.
For health-focused True Food Kitchen, the transition began in 2022 when the team committed to cooking with only avocado and olive oils, then gradually eliminated seed oils from 98% of the menu. With 100-plus items to test, it took another couple of years to convert the remaining 2%.
“Most people don’t realize how pervasive seed oils are in everyday ingredients and eliminating them meant reevaluating hundreds of items across our kitchens. It was a massive undertaking, but it was worth every step to deliver cleaner, better meals to our guests,” said Matthew Padilla, head of culinary at True Food Kitchen. Restaurant Business
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Decode the link between Palm Oil and Cancer with Science
Dr. Aman Rastogi, MCh Surgical Oncology, Manipal Hospitals, Delhi.
One in two people will develop some form of cancer during their lifetime, sparking fear and anxiety. A cancer diagnosis can be life-changing and leads people to seek out potential triggers. One ingredient that has come under scrutiny is palm oil. However, before drawing conclusions about the world’s most widely used edible oil, it is crucial that we examine the scientific evidence, says Dr. Aman Rastogi, MCh Surgical Oncology, Manipal Hospitals, Delhi.
Palm oil is used extensively in food production and cooking worldwide is undeniable. Beyond its functionality in food, researchers have studied palm oil extensively, recognising its numerous nutritional benefits. Its rise in popularity is also linked to global policy changes. For instance, the ban of U.S. Food and Drug Administration (FDA) on trans-fatty acids (TFA) in 2015 and the World Health Organization’s 2018 recommendations against TFA prompted the food industry to turn to palm oil as a stable and semi-solid alternative in ultra-processed foods.
Palm Oil: A Potential Anti-Cancer Agent
Red palm oil contains several nutrients that may offer protective benefits against cancer. It is particularly rich in carotenoids—compounds that the body converts into vitamin A—which act as powerful antioxidants, reducing damage caused by free radicals. These free radicals can harm cells and contribute to cancer development.
Palm oil is also a valuable source of tocotrienols, a form of vitamin E with promising anti-cancer properties. Research suggests that tocotrienols can slow the growth of cancer cells, trigger their death, and prevent the formation of new blood vessels that tumors need to grow. Express News
Indonesia to Implement B50 Palm Oil Biodiesel Mandate Next Year
Jakarta. Indonesia is sticking to the plan of distributing biodiesel with higher palm oil content starting in 2026.
Indonesia has just begun implementing the B40 mandate early this year. The B40 is a type of biodiesel blend with 40 percent palm oil content and 60 percent diesel fuel. This marks an increase from the B35 mandate that was in place for two years. President Prabowo Subianto wants Indonesia to be self-sufficient in its energy supply. With a higher biodiesel mandate, the world’s largest palm oil producer Indonesia can import less diesel.
“We are trying to implement a B50 mandate in 2026. If we could do that, hopefully, we would no longer have to import diesel. This is part of us trying to reach energy self-sufficiency,” Energy Minister Bahlil Lahadalia told reporters in Jakarta on Monday.
The ministry data shows that Indonesia produced 13.15 million kiloliters of biodiesel throughout 2024, far exceeding the targeted 11.3 million kiloliters. Indonesia also managed to save about $9.33 billion in foreign exchange as the country cut down its diesel import thanks to the B35 policy. Indonesia’s biodiesel production totaled 3.42 million kiloliters in 2017, during which the palm oil content stood at 20 percent. Production eventually soared over the years as the palm oil content grew.
Indonesia is set to produce around 15.6 million kiloliters of biodiesel in 2025. According to government estimates, Indonesia will be able to save at least Rp 147.5 trillion (approximately $9 billion) in foreign exchange this year with the B40 mandate now in place. The policy is expected to bring down diesel imports to 4.6 million kiloliters.
Not long ago, the government revealed that they would deploy a team starting this week to keep an eye on the distributed B40 biodiesel. This watchdog aims to make sure that the circulating biodiesel really has a 40 percent palm oil share. Jakarta Globe
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Indonesia’s CPO export levy hike will make Malaysian crude palm oil more competitive: Experts
PETALING JAYA: Industry experts opine that an increase in Indonesia’s crude palm oil (CPO) export levy will enhance demand for Malaysian CPO, rendering it more competitively priced.
According to TA Securities, demand for Malaysian palm oil could rise if Indonesia implements its plan to raise the export levy to support a higher biodiesel usage mandate.
The research house said that raising the export levy to 10% would increase the price of Indonesian CPO by US$26.49 per tonne, making it even more expensive than Malaysian palm oil. It noted that the price of palm oil from Indonesia currently stands at a premium of US$146.30 per tonne compared to Malaysia’s.
“We believe that the relatively high Indonesian CPO export tax and duty could drive demand towards Malaysian CPO, supporting its price and market share,“ it said.
Indonesia imposes an export levy on CPO and other palm oil products to fund its biodiesel programme, specifically the B40 mandate, which aims to increase the blend of palm-based biofuel in diesel to 40%.
In December 2024, the Indonesian government announced plans to raise the CPO export levy from 7.5% to 10% to support higher subsidies for the biodiesel programme. However, the implementation of the B40 mandate has faced delays, and industry observers anticipate a gradual rollout due to funding challenges and technical hurdles. The SunMY
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Prabowo's Palm Oil Expansion Policy Draws Criticism, Potential to Worsen Social and Environmental Crisis
InfoSAWIT, JAKARTA – The first hundred days of President Prabowo Subianto’s administration have been marked by policies that emphasize food and energy security as top priorities. One of the major plans proposed is the expansion of 20 million hectares of oil palm plantations to support food and energy independence. However, this policy has drawn criticism because it is considered to be at risk of worsening the social and environmental crisis.
This palm oil expansion plan is feared to accelerate deforestation, worsen agrarian conflicts, and ignore the rights of workers and indigenous peoples. These concerns have become increasingly prominent after the meeting between President Prabowo and Malaysian Prime Minister Anwar Ibrahim on January 27, 2025. The meeting discussed economic cooperation, including in the palm oil sector. However, according to TuK INDONESIA and Transnational Palm Oil Labor Solidarity (TPOLS), the two leaders' discussions did not sufficiently pay attention to the environmental and social impacts of the palm oil industry expansion.
In the Banking on Biodiversity Collapse 2024 report released by Forests & Finance, it is stated that more than 50 major world banks are still providing funding to sectors at risk of destroying tropical forests, especially in Indonesia and Malaysia. In the period 2016 to June 2024, a total of USD 89.17 billion or around IDR 1,289.59 trillion in credit has been channeled to projects directly related to deforestation, land conversion, and violations of indigenous peoples' rights.
The palm oil sector is a major contributor to the economy, but it is also a major driver of tropical forest loss and land grabbing. Amid global pressure for sustainability, the European Union has implemented the European Union Deforestation Regulation (EUDR), which bans the import of products from deforestation. If palm oil expansion is not managed properly, Indonesia and Malaysia risk losing access to the EU market, which is subject to stringent sustainability standards. InfoSawit
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Another restaurant chain takes a stance against seed oils
Full-service True Food Kitchen is eliminating seed oils across its 46 locations, transitioning to avocado and olive oil.
True Food Kitchen announced Tuesday that its menu is going 100% seed-oil free across all 46 locations.
The Scottsdale, Arizona-based full-service chain is transitioning to heart-healthy avocado and olive oil for all its menu applications. Industrial seed oils such as canola, sunflower, corn and soybean have gotten a bad rap lately for causing inflammation in the body.
For health-focused True Food Kitchen, the transition began in 2022 when the team committed to cooking with only avocado and olive oils, then gradually eliminated seed oils from 98% of the menu. With 100-plus items to test, it took another couple of years to convert the remaining 2%.
“Most people don’t realize how pervasive seed oils are in everyday ingredients and eliminating them meant reevaluating hundreds of items across our kitchens. It was a massive undertaking, but it was worth every step to deliver cleaner, better meals to our guests,” said Matthew Padilla, head of culinary at True Food Kitchen. Restaurant Business
---------
Decode the link between Palm Oil and Cancer with Science
Dr. Aman Rastogi, MCh Surgical Oncology, Manipal Hospitals, Delhi.
One in two people will develop some form of cancer during their lifetime, sparking fear and anxiety. A cancer diagnosis can be life-changing and leads people to seek out potential triggers. One ingredient that has come under scrutiny is palm oil. However, before drawing conclusions about the world’s most widely used edible oil, it is crucial that we examine the scientific evidence, says Dr. Aman Rastogi, MCh Surgical Oncology, Manipal Hospitals, Delhi.
Palm oil is used extensively in food production and cooking worldwide is undeniable. Beyond its functionality in food, researchers have studied palm oil extensively, recognising its numerous nutritional benefits. Its rise in popularity is also linked to global policy changes. For instance, the ban of U.S. Food and Drug Administration (FDA) on trans-fatty acids (TFA) in 2015 and the World Health Organization’s 2018 recommendations against TFA prompted the food industry to turn to palm oil as a stable and semi-solid alternative in ultra-processed foods.
Palm Oil: A Potential Anti-Cancer Agent
Red palm oil contains several nutrients that may offer protective benefits against cancer. It is particularly rich in carotenoids—compounds that the body converts into vitamin A—which act as powerful antioxidants, reducing damage caused by free radicals. These free radicals can harm cells and contribute to cancer development.
Palm oil is also a valuable source of tocotrienols, a form of vitamin E with promising anti-cancer properties. Research suggests that tocotrienols can slow the growth of cancer cells, trigger their death, and prevent the formation of new blood vessels that tumors need to grow. Express News
February 04, 2025
After 100 days, little to show for Indonesia President Prabowo’s energy, food security plans
Prabowo’s ambitious vows of energy and food security have yet to materialize in actionable, short-term rules, with the administration’s stance on the energy transition and agricultural self-sufficiency described as lacking clear direction.
JAKARTA – President Prabowo Subianto kicked off his term with promises to make Indonesia less dependent on fuel and food imports by ramping up renewable energy supply and building massive agricultural estates, sparking hope but also skepticism as predecessors have tried the same, and failed.
One hundred days into his presidency, Prabowo’s ambitious vows of energy and food security have yet to materialize in actionable, short-term rules, with the administration’s stance on the energy transition and agricultural self-sufficiency described as lacking clear direction.
At the last Group of Twenty (G20) meeting, Prabowo outlined an ambitious plan to phase out all coal and fossil-fuel power plants within 15 years and to develop over 75 gigawatts (GW) of renewable energy capacity, but experts say that plan lacks details.
“Specifically, [we question] how to achieve the target of 23 percent renewables in the energy mix in 2025 and achieve 100 percent renewable energy in the next 10 years,” Fabby Tumiwa, executive director of the Institute for Essential Services Reform (IESR), said in a statement on Jan. 22.
So far, the government has been focusing on long-term targets, pushing for state-owned electricity company PLN’s latest Electricity Procurement Business Plan (RUPTL), for instance, to be dominated by renewables.
“The government must prepare more strategic planning, like expediting the establishment of 9 GW of renewable energy capacity this year,” Fabby said.
Investors eagerly await the release of the new RUPTL, which was meant to be published last year under then-president Joko “Jokowi” Widodo’s leadership but has yet to materialize.
Fabby urged the government to immediately turn its commitment into actionable regulations and integrate them into various energy policies.
“The [National Electricity Master Plan (RUKN)], for example, still maintains the net-zero 2060 target instead of 2050 and peak emissions in 2035 instead of 2030, which is inconsistent with what the President has said. It also still contains plans to build coal-fired power plants until 2035.”
Read also: Past failures haunt govt’s new energy transition plans
The administration has taken some concrete steps toward achieving energy self-sufficiency: It launched the mandatory B40 program earlier this month and formed a task force for the acceleration of downstream industries and energy resilience.
It has also opted to boost domestic fuel oil production by redirecting a share of crude oil intended for export to processing into fuel at domestic refineries.
“Other [pending] decisions include the issuance of revised government regulations on national energy policies [KEN],” Ahmad Rahma Wardhana, a researcher at Gadjah Mada University’s (UGM) Center of Energy Studies, told The Jakarta Post on Jan. 22.
He expressed optimism that the new gross-split rule introduced by the Energy and Mineral Resources Ministry would increase investors’ appetite in Indonesia’s oil and gas industry.
However, Ahmad took issue with the government’s plan to convert 20 million hectares of forest land across Indonesia into agricultural land to produce food, energy and water for the country’s self-sufficiency efforts.
Forestry Minister Raja Juli Antoni said the Agriculture Ministry and the energy ministry would make use of the land, including by establishing several small food barns at large food estate projects.
“Extensification through land conversion is not the only solution, because there are other options, including increasing bioenergy productivity as well as utilizing waste from [agriculture and industries] as energy sources,” he said.
Read also: Massive costs, reforms await Prabowo full coal phase out plan The Jakarta Post
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Malaysian Palm Oil Benefits From Global Market Shifts
What’s going on here?
Malaysian palm oil futures have climbed higher for the fifth straight session, fueled by rising soyoil and crude oil prices as global markets shift.
What does this mean?
Malaysian palm oil futures are experiencing a surge influenced by various market dynamics. The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange rose by 1.96%, closing at 4,373 ringgit ($978.30) per metric ton. Over the last four sessions, it has gained 2.36%, driven by stronger soyoil futures from the Chicago Board of Trade and a rebound in energy markets globally. US trade tariffs have pressured soyoil prices, boosting palm oil’s appeal as a biodiesel feedstock amid higher crude oil prices. Meanwhile, the ringgit weakened by 0.45% against the US dollar, making Malaysian palm oil more attractive for foreign buyers. However, a drop in export volumes for January highlights the trade landscape's complexity.
Why should I care?
For markets: Shifting tides in the vegetable oil market.
With global markets in economic flux, palm oil has become a strong player in the vegetable oil sector. The rise in CPO prices reflects shifts in the supply-demand balance, influenced by strategic moves like Indonesia's export tax reduction. These changes, along with the recent Dalian Commodity Exchange closure, could affect trading activities and present new opportunities for investors watching agricultural commodities.
The bigger picture: Navigating global economic turbulence.
The significant changes in market forces, trade tensions, and currency fluctuations highlight a crucial time for palm oil in global trade. As Malaysia addresses export drops and seizes new opportunities, these developments might reshape economic strategies and impact broader trends in sustainable crop production and international trade agreements. Finimize
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Palm oil industry urged to shift to high-value products, cut reliance on crude exports
KUALA LUMPUR (4 Feb): Malaysia needs to shift to high-value products like oleochemicals and biodiesel rather than just relying on crude palm oil (CPO) exports without a solid value-added strategy, according to Paya Besar Member of Parliament Datuk Mohd Shahar Abdullah.
He said Indonesia, which has implemented a mandatory B35-B40 biodiesel policy since 2020 to stabilise domestic demand, has seen palm oil prices that are more stable compared to Malaysia, which depends 80% on crude exports.
Malaysia’s CPO price remains susceptible to sharp fluctuations and is easily influenced by global market speculation, he said during the debate on the motion of thanks for the royal address in the Dewan Rakyat on Tuesday.
According to Mohd Shahar, Malaysia is caught in the “volume versus value” dilemma.
Paya Besar Member of Parliament Datuk Mohd Shahar Abdullah says crude palm oil price remains susceptible to sharp fluctuations and is easily influenced by global market speculation.
KUALA LUMPUR (4 Feb): Malaysia needs to shift to high-value products like oleochemicals and biodiesel rather than just relying on crude palm oil (CPO) exports without a solid value-added strategy, according to Paya Besar Member of Parliament Datuk Mohd Shahar Abdullah.
He said Indonesia, which has implemented a mandatory B35-B40 biodiesel policy since 2020 to stabilise domestic demand, has seen palm oil prices that are more stable compared to Malaysia, which depends 80% on crude exports.
Malaysia’s CPO price remains susceptible to sharp fluctuations and is easily influenced by global market speculation, he said during the debate on the motion of thanks for the royal address in the Dewan Rakyat on Tuesday.
According to Mohd Shahar, Malaysia is caught in the “volume versus value” dilemma.
“Although exports to the European Union (EU) contributed only 14% of Malaysia’s total palm oil exports in 2023, the EU premium rate, on a pro-rata basis, is actually higher compared to that in the Indian and Chinese markets.
“Besides looking at India and China as volume markets, we need to view the EU as a volume market that offers high value. Moreover, the EU remains the main importer of palm kernel oil for the past five years,” he said.
Mohd Shahar, who is also the chairman of the Parliament’s Special Select Committee on Finance and Economy, also praised the government’s recent efforts to correct the perception and stigma of Malaysian palm oil in the EU and the US due to the EU Deforestation-Free Regulation (EUDR) and import ban on palm oil as biofuel.
“Promotion and communication efforts must be intensified all the way to the level of policy implementers, not just at the policymaker level,” he added. The EdgeMY
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Malaysia ensures sufficient workforce for palm oil plantations
KUALA LUMPUR: The Plantation and Commodities Ministry is committed to ensuring that all oil palm plantations have sufficient manpower, says its minister, Datuk Seri Johari Abdul Ghani.
He said as the world's second-largest palm oil producer, Malaysia ensures stable production remains unaffected.
Johari said commodity prices cannot be set by any party because they depend on supply and demand factors.
"If demand is high and production is low, prices will rise. Conversely, if there is excessive production but insufficient demand, prices will decrease.
"One key factor is ensuring that plantations have an adequate workforce. Without sufficient workers, ripe fruits will remain unharvested, affecting our ability to maximise output," he said during the ministers' question time in Dewan Rakyat today.
Johari was responding to a supplementary question from Edwin Banta (GPS–Selangau) regarding measures taken to address the decline in commodity prices, particularly for palm oil, and strategies to stabilise prices, increase demand and explore new markets. New Straits Times
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Palm oil industry urges govt to reconsider mandatory EPF contribution for foreign workers
PETALING JAYA: The government should reconsider its decision to mandate a 2% Employees Provident Fund (EPF) contribution for foreign workers, say palm oil industry players.
The group of 13 business associations affiliated with the palm oil supply chain said that while the 2% contribution may seem minimal, with an estimated 336,500 foreign workers employed in the plantation sector, the industry would collectively bear an additional cost of approximately RM137mil annually.
"Given the financial pressures already faced by the sector, we seek reconsideration of this policy to ensure that it does not inadvertently burden employers or foreign workers," said the group in a statement on Feb 4.
The group added that the Malaysian palm oil sector relied heavily on foreign labour, particularly for fieldwork, due to the persistent shortage of local workers.
"The introduction of mandatory EPF contributions adds new financial and administrative challenges, particularly for plantation companies already managing fluctuating global markets, sustainability compliance, and rising operational costs," it said.
The group also said that the high turnover rate of foreign workers in the industry posed significant administrative burdens.
"Many foreign workers do not stay in Malaysia for extended periods, making long-term savings through EPF less relevant for them.
"Managing these contributions for a transient workforce requires additional resources, which could divert focus from productivity and sustainability initiatives," the group said.
The associations also said that the new policy went against the EPF's primary design of long-term retirement savings and may not align with the financial needs of foreign workers.
"Most foreign workers are in Malaysia for a short-term employment cycle of two to four years and prioritize sending their earnings home to support their families.
"A mandatory EPF contribution reduces their take-home pay, which could discourage them from choosing Malaysia as a preferred employment destination," it said.
The group said that while it acknowledged the government’s intent to enhance worker welfare, it was essential to implement policies that were both fair and practical.
"We remain committed to collaborating with the government and relevant stakeholders to develop a balanced approach that ensures the continued growth of Malaysia’s palm oil sector while safeguarding the well-being of its workforce," it said. The StarMY
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Government of Sierra Leone and European Union sign € 35M Financing Agreement for "Sustainable Food and Agricultural Value Chains Development" Programme
Freetown, Sierra Leone: On 31 January 2025, the Government of Sierra Leone and the European Union signed a Financing Agreement for the "Sustainable Food and Agricultural Value Chains Development" Programme. This agreement represents a significant milestone in the cooperation between the EU and Sierra Leone, aimed at promoting agricultural development in the palm oil, cassava and infant food value chains.
The specific objectives of the programme are to:
Improve the sustainability, efficiency and inclusivity of the oil palm, cassava, and infant food value chains, through the use of climate-smart approaches in production and processing, while facilitating decent green job creation; and
Enhance the use of market opportunities by Sierra Leoneans, particularly women and youth who have participated in Technical and Vocational Education and Training (TVET) programmes.
This new agreement complements ongoing EU-Sierra Leone agricultural cooperation programmes focused on access to agricultural finance, rural infrastructure (feeder roads) and targeted support to the orange-fleshed sweet potato, pineapple, cashew and cocoa value chains.
In his remarks, H.E. Jacek Jankowski, the EU Ambassador to Sierra Leone emphasized the EU's commitment to supporting Sierra Leone's path to inclusive and sustainable growth. EUROPA
After 100 days, little to show for Indonesia President Prabowo’s energy, food security plans
Prabowo’s ambitious vows of energy and food security have yet to materialize in actionable, short-term rules, with the administration’s stance on the energy transition and agricultural self-sufficiency described as lacking clear direction.
JAKARTA – President Prabowo Subianto kicked off his term with promises to make Indonesia less dependent on fuel and food imports by ramping up renewable energy supply and building massive agricultural estates, sparking hope but also skepticism as predecessors have tried the same, and failed.
One hundred days into his presidency, Prabowo’s ambitious vows of energy and food security have yet to materialize in actionable, short-term rules, with the administration’s stance on the energy transition and agricultural self-sufficiency described as lacking clear direction.
At the last Group of Twenty (G20) meeting, Prabowo outlined an ambitious plan to phase out all coal and fossil-fuel power plants within 15 years and to develop over 75 gigawatts (GW) of renewable energy capacity, but experts say that plan lacks details.
“Specifically, [we question] how to achieve the target of 23 percent renewables in the energy mix in 2025 and achieve 100 percent renewable energy in the next 10 years,” Fabby Tumiwa, executive director of the Institute for Essential Services Reform (IESR), said in a statement on Jan. 22.
So far, the government has been focusing on long-term targets, pushing for state-owned electricity company PLN’s latest Electricity Procurement Business Plan (RUPTL), for instance, to be dominated by renewables.
“The government must prepare more strategic planning, like expediting the establishment of 9 GW of renewable energy capacity this year,” Fabby said.
Investors eagerly await the release of the new RUPTL, which was meant to be published last year under then-president Joko “Jokowi” Widodo’s leadership but has yet to materialize.
Fabby urged the government to immediately turn its commitment into actionable regulations and integrate them into various energy policies.
“The [National Electricity Master Plan (RUKN)], for example, still maintains the net-zero 2060 target instead of 2050 and peak emissions in 2035 instead of 2030, which is inconsistent with what the President has said. It also still contains plans to build coal-fired power plants until 2035.”
Read also: Past failures haunt govt’s new energy transition plans
The administration has taken some concrete steps toward achieving energy self-sufficiency: It launched the mandatory B40 program earlier this month and formed a task force for the acceleration of downstream industries and energy resilience.
It has also opted to boost domestic fuel oil production by redirecting a share of crude oil intended for export to processing into fuel at domestic refineries.
“Other [pending] decisions include the issuance of revised government regulations on national energy policies [KEN],” Ahmad Rahma Wardhana, a researcher at Gadjah Mada University’s (UGM) Center of Energy Studies, told The Jakarta Post on Jan. 22.
He expressed optimism that the new gross-split rule introduced by the Energy and Mineral Resources Ministry would increase investors’ appetite in Indonesia’s oil and gas industry.
However, Ahmad took issue with the government’s plan to convert 20 million hectares of forest land across Indonesia into agricultural land to produce food, energy and water for the country’s self-sufficiency efforts.
Forestry Minister Raja Juli Antoni said the Agriculture Ministry and the energy ministry would make use of the land, including by establishing several small food barns at large food estate projects.
“Extensification through land conversion is not the only solution, because there are other options, including increasing bioenergy productivity as well as utilizing waste from [agriculture and industries] as energy sources,” he said.
Read also: Massive costs, reforms await Prabowo full coal phase out plan The Jakarta Post
--------
Malaysian Palm Oil Benefits From Global Market Shifts
What’s going on here?
Malaysian palm oil futures have climbed higher for the fifth straight session, fueled by rising soyoil and crude oil prices as global markets shift.
What does this mean?
Malaysian palm oil futures are experiencing a surge influenced by various market dynamics. The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange rose by 1.96%, closing at 4,373 ringgit ($978.30) per metric ton. Over the last four sessions, it has gained 2.36%, driven by stronger soyoil futures from the Chicago Board of Trade and a rebound in energy markets globally. US trade tariffs have pressured soyoil prices, boosting palm oil’s appeal as a biodiesel feedstock amid higher crude oil prices. Meanwhile, the ringgit weakened by 0.45% against the US dollar, making Malaysian palm oil more attractive for foreign buyers. However, a drop in export volumes for January highlights the trade landscape's complexity.
Why should I care?
For markets: Shifting tides in the vegetable oil market.
With global markets in economic flux, palm oil has become a strong player in the vegetable oil sector. The rise in CPO prices reflects shifts in the supply-demand balance, influenced by strategic moves like Indonesia's export tax reduction. These changes, along with the recent Dalian Commodity Exchange closure, could affect trading activities and present new opportunities for investors watching agricultural commodities.
The bigger picture: Navigating global economic turbulence.
The significant changes in market forces, trade tensions, and currency fluctuations highlight a crucial time for palm oil in global trade. As Malaysia addresses export drops and seizes new opportunities, these developments might reshape economic strategies and impact broader trends in sustainable crop production and international trade agreements. Finimize
--------
Palm oil industry urged to shift to high-value products, cut reliance on crude exports
KUALA LUMPUR (4 Feb): Malaysia needs to shift to high-value products like oleochemicals and biodiesel rather than just relying on crude palm oil (CPO) exports without a solid value-added strategy, according to Paya Besar Member of Parliament Datuk Mohd Shahar Abdullah.
He said Indonesia, which has implemented a mandatory B35-B40 biodiesel policy since 2020 to stabilise domestic demand, has seen palm oil prices that are more stable compared to Malaysia, which depends 80% on crude exports.
Malaysia’s CPO price remains susceptible to sharp fluctuations and is easily influenced by global market speculation, he said during the debate on the motion of thanks for the royal address in the Dewan Rakyat on Tuesday.
According to Mohd Shahar, Malaysia is caught in the “volume versus value” dilemma.
Paya Besar Member of Parliament Datuk Mohd Shahar Abdullah says crude palm oil price remains susceptible to sharp fluctuations and is easily influenced by global market speculation.
KUALA LUMPUR (4 Feb): Malaysia needs to shift to high-value products like oleochemicals and biodiesel rather than just relying on crude palm oil (CPO) exports without a solid value-added strategy, according to Paya Besar Member of Parliament Datuk Mohd Shahar Abdullah.
He said Indonesia, which has implemented a mandatory B35-B40 biodiesel policy since 2020 to stabilise domestic demand, has seen palm oil prices that are more stable compared to Malaysia, which depends 80% on crude exports.
Malaysia’s CPO price remains susceptible to sharp fluctuations and is easily influenced by global market speculation, he said during the debate on the motion of thanks for the royal address in the Dewan Rakyat on Tuesday.
According to Mohd Shahar, Malaysia is caught in the “volume versus value” dilemma.
“Although exports to the European Union (EU) contributed only 14% of Malaysia’s total palm oil exports in 2023, the EU premium rate, on a pro-rata basis, is actually higher compared to that in the Indian and Chinese markets.
“Besides looking at India and China as volume markets, we need to view the EU as a volume market that offers high value. Moreover, the EU remains the main importer of palm kernel oil for the past five years,” he said.
Mohd Shahar, who is also the chairman of the Parliament’s Special Select Committee on Finance and Economy, also praised the government’s recent efforts to correct the perception and stigma of Malaysian palm oil in the EU and the US due to the EU Deforestation-Free Regulation (EUDR) and import ban on palm oil as biofuel.
“Promotion and communication efforts must be intensified all the way to the level of policy implementers, not just at the policymaker level,” he added. The EdgeMY
--------
Malaysia ensures sufficient workforce for palm oil plantations
KUALA LUMPUR: The Plantation and Commodities Ministry is committed to ensuring that all oil palm plantations have sufficient manpower, says its minister, Datuk Seri Johari Abdul Ghani.
He said as the world's second-largest palm oil producer, Malaysia ensures stable production remains unaffected.
Johari said commodity prices cannot be set by any party because they depend on supply and demand factors.
"If demand is high and production is low, prices will rise. Conversely, if there is excessive production but insufficient demand, prices will decrease.
"One key factor is ensuring that plantations have an adequate workforce. Without sufficient workers, ripe fruits will remain unharvested, affecting our ability to maximise output," he said during the ministers' question time in Dewan Rakyat today.
Johari was responding to a supplementary question from Edwin Banta (GPS–Selangau) regarding measures taken to address the decline in commodity prices, particularly for palm oil, and strategies to stabilise prices, increase demand and explore new markets. New Straits Times
--------
Palm oil industry urges govt to reconsider mandatory EPF contribution for foreign workers
PETALING JAYA: The government should reconsider its decision to mandate a 2% Employees Provident Fund (EPF) contribution for foreign workers, say palm oil industry players.
The group of 13 business associations affiliated with the palm oil supply chain said that while the 2% contribution may seem minimal, with an estimated 336,500 foreign workers employed in the plantation sector, the industry would collectively bear an additional cost of approximately RM137mil annually.
"Given the financial pressures already faced by the sector, we seek reconsideration of this policy to ensure that it does not inadvertently burden employers or foreign workers," said the group in a statement on Feb 4.
The group added that the Malaysian palm oil sector relied heavily on foreign labour, particularly for fieldwork, due to the persistent shortage of local workers.
"The introduction of mandatory EPF contributions adds new financial and administrative challenges, particularly for plantation companies already managing fluctuating global markets, sustainability compliance, and rising operational costs," it said.
The group also said that the high turnover rate of foreign workers in the industry posed significant administrative burdens.
"Many foreign workers do not stay in Malaysia for extended periods, making long-term savings through EPF less relevant for them.
"Managing these contributions for a transient workforce requires additional resources, which could divert focus from productivity and sustainability initiatives," the group said.
The associations also said that the new policy went against the EPF's primary design of long-term retirement savings and may not align with the financial needs of foreign workers.
"Most foreign workers are in Malaysia for a short-term employment cycle of two to four years and prioritize sending their earnings home to support their families.
"A mandatory EPF contribution reduces their take-home pay, which could discourage them from choosing Malaysia as a preferred employment destination," it said.
The group said that while it acknowledged the government’s intent to enhance worker welfare, it was essential to implement policies that were both fair and practical.
"We remain committed to collaborating with the government and relevant stakeholders to develop a balanced approach that ensures the continued growth of Malaysia’s palm oil sector while safeguarding the well-being of its workforce," it said. The StarMY
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Government of Sierra Leone and European Union sign € 35M Financing Agreement for "Sustainable Food and Agricultural Value Chains Development" Programme
Freetown, Sierra Leone: On 31 January 2025, the Government of Sierra Leone and the European Union signed a Financing Agreement for the "Sustainable Food and Agricultural Value Chains Development" Programme. This agreement represents a significant milestone in the cooperation between the EU and Sierra Leone, aimed at promoting agricultural development in the palm oil, cassava and infant food value chains.
The specific objectives of the programme are to:
Improve the sustainability, efficiency and inclusivity of the oil palm, cassava, and infant food value chains, through the use of climate-smart approaches in production and processing, while facilitating decent green job creation; and
Enhance the use of market opportunities by Sierra Leoneans, particularly women and youth who have participated in Technical and Vocational Education and Training (TVET) programmes.
This new agreement complements ongoing EU-Sierra Leone agricultural cooperation programmes focused on access to agricultural finance, rural infrastructure (feeder roads) and targeted support to the orange-fleshed sweet potato, pineapple, cashew and cocoa value chains.
In his remarks, H.E. Jacek Jankowski, the EU Ambassador to Sierra Leone emphasized the EU's commitment to supporting Sierra Leone's path to inclusive and sustainable growth. EUROPA
February 03, 2025
What American consumer goods is Canada targeting with counter-tariffs?
Prime Minister Justin Trudeau announced late Saturday the federal government will hit back against the U.S. after President Donald Trump launched a trade war this weekend with punitive tariffs on all Canadian goods.
Trump followed through on a months-long threat and is slapping a 25 per cent tariff on virtually all Canadian goods and a 10 per cent tariff on Canadian energy.
In retaliation, Canada will slap 25 per cent tariffs on $30 billion worth of American goods coming into Canada as of Tuesday. The tariffs will then be applied to another $125 billion worth of American imports in three weeks' time following a consultation period.
On Sunday, Ottawa released the full list of products that will be taxed starting on Tuesday.
The list includes some supply managed products that were given Canadian market access as concessions during the negotiation of the Canada-U.S.-Mexico Agreement (CUSMA) — but a government source said on background that the list does not amount to a full walk-back of those concessions at this point.
Here is a breakdown of what's included: CBC
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Southeast Asia in the crossfire of the US–China trade war
With rising tensions due to the international implications of the Chinese economy's imbalances and the re-escalation of the US-China trade war, ASEAN nations are recognising the need for unity to ensure their interests are considered by larger global powers. Supporting institutional structures like the Multi-Party Interim Appeal Arbitration Agreement, a substitute for the WTO dispute settlement process, can help safeguard against protectionism. ASEAN needs a coordinated policy strategy to defend the benefits from free and open trade, while also preparing for the possibility of punitive US tariffs due to the region's persistent trade surplus with the US.
The two most important people in ASEAN right now can’t be accused of not understanding the crucial function that the group plays as a platform for collective middle-power diplomacy. Speaking at a media conference after his meeting with Malaysian Prime Minister Anwar Ibrahim in Langkawi last week, Indonesian President Prabowo Subianto declared that ‘only via unity among the ASEAN countries, only with good cooperation between us, will our voices be heard, will we be given consideration by powers far bigger than us’.
The only ‘bigger power’ Prabowo saw fit to mention was the European Union, perhaps understandably, given that both Malaysia and Indonesia are locked in a longstanding dispute about the impact of proposed EU sustainability rules on their palm oil industries.
Though both leaders were too diplomatic to say so, a wave of green regulations emanating from Brussels might be the least of Southeast Asia’s problems when it comes to the economic impact of extra-regional policy developments.
As Mari Pangestu and Shiro Armstrong warn in this week’s lead article, ‘Southeast Asian domestic markets are about to be hit by a tsunami of cheap Chinese goods, unable to enter the United States if US President Donald Trump follows through on his earlier promise of 60 per cent tariffs on all Chinese imports’. At this stage Trump has announced a 10 per cent tariff hike on Chinese imports. East Asia Forum
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India's Expenditure on Refined Palm Oil Rises to $2.2 Billion in 2024
India Refined Palm Oil Imports Refined palm oil imports into India expanded to 2.3M tons in 2024, picking up by 2.7% on the year before. In general, imports continue to indicate pronounced growth. The growth pace was the most rapid in 2021 when imports increased by 314% against the previous year. Over the period under review, imports attained the maximum at 3.1M tons in 2019; however, from 2020 to 2024, imports stood at a somewhat lower figure.
In value terms, refined palm oil imports expanded modestly to $2.2B (IndexBox estimates) in 2024. Overall, imports showed a buoyant expansion. The most prominent rate of growth was recorded in 2021 with an increase of 584% against the previous year. Imports peaked at $3.2B in 2022; however, from 2023 to 2024, imports remained at a lower figure. Index Box
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Pakistan has significant potential to become a regional hub for distributing Malaysia Sustainable Palm Oil
Datuk Seri Johari Abdul Ghani is the Minister of Plantation and Commodities of Malaysia, overseeing the country’s strategic policies and initiatives in the palm oil, rubber, timber, and other key commodity sectors. He has played a pivotal role in advocating for sustainable palm oil production, promoting Malaysian commodities in global markets, and enhancing trade relationships with key partners, including Pakistan.
Before assuming his ministerial role, Datuk Seri Johari Abdul Ghani had a distinguished career in both the public and private sectors. He previously served as the Minister of Finance (2016-2018), where he was instrumental in driving fiscal policies, corporate governance reforms, and economic resilience initiatives. As a seasoned entrepreneur, he has extensive experience in corporate leadership, having held key positions in various industries, including real estate, finance, and agribusiness.
Datuk Seri Johari Abdul Ghani has been a strong advocate for environmental sustainability and responsible commodity production, ensuring that Malaysia remains a leader in the global commodities market while balancing economic growth with ecological responsibility. Under his leadership, Malaysia has intensified efforts to comply with international sustainability standards, including the Malaysian Sustainable Palm Oil (MSPO) certification, to enhance market access and consumer confidence worldwide. Brecorder
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RSPO Launches Prisma platform
Designed to enhance compliance with global regulations, prisma provides real-time data and analytics to help RSPO Members streamline operations, optimise supply chains, and strengthen sustainability commitments.
Aimed at enhancing trade and compliance while meeting global regulations, PRISMA streamlines collaboration among RSPO stakeholders, optimising efficiency and accountability. Standardised audit reports enable better data analytics, ensuring adherence to RSPO Standards in a dynamic sustainability landscape. Prisma by RSPO
What American consumer goods is Canada targeting with counter-tariffs?
Prime Minister Justin Trudeau announced late Saturday the federal government will hit back against the U.S. after President Donald Trump launched a trade war this weekend with punitive tariffs on all Canadian goods.
Trump followed through on a months-long threat and is slapping a 25 per cent tariff on virtually all Canadian goods and a 10 per cent tariff on Canadian energy.
In retaliation, Canada will slap 25 per cent tariffs on $30 billion worth of American goods coming into Canada as of Tuesday. The tariffs will then be applied to another $125 billion worth of American imports in three weeks' time following a consultation period.
On Sunday, Ottawa released the full list of products that will be taxed starting on Tuesday.
The list includes some supply managed products that were given Canadian market access as concessions during the negotiation of the Canada-U.S.-Mexico Agreement (CUSMA) — but a government source said on background that the list does not amount to a full walk-back of those concessions at this point.
Here is a breakdown of what's included: CBC
--------
Southeast Asia in the crossfire of the US–China trade war
With rising tensions due to the international implications of the Chinese economy's imbalances and the re-escalation of the US-China trade war, ASEAN nations are recognising the need for unity to ensure their interests are considered by larger global powers. Supporting institutional structures like the Multi-Party Interim Appeal Arbitration Agreement, a substitute for the WTO dispute settlement process, can help safeguard against protectionism. ASEAN needs a coordinated policy strategy to defend the benefits from free and open trade, while also preparing for the possibility of punitive US tariffs due to the region's persistent trade surplus with the US.
The two most important people in ASEAN right now can’t be accused of not understanding the crucial function that the group plays as a platform for collective middle-power diplomacy. Speaking at a media conference after his meeting with Malaysian Prime Minister Anwar Ibrahim in Langkawi last week, Indonesian President Prabowo Subianto declared that ‘only via unity among the ASEAN countries, only with good cooperation between us, will our voices be heard, will we be given consideration by powers far bigger than us’.
The only ‘bigger power’ Prabowo saw fit to mention was the European Union, perhaps understandably, given that both Malaysia and Indonesia are locked in a longstanding dispute about the impact of proposed EU sustainability rules on their palm oil industries.
Though both leaders were too diplomatic to say so, a wave of green regulations emanating from Brussels might be the least of Southeast Asia’s problems when it comes to the economic impact of extra-regional policy developments.
As Mari Pangestu and Shiro Armstrong warn in this week’s lead article, ‘Southeast Asian domestic markets are about to be hit by a tsunami of cheap Chinese goods, unable to enter the United States if US President Donald Trump follows through on his earlier promise of 60 per cent tariffs on all Chinese imports’. At this stage Trump has announced a 10 per cent tariff hike on Chinese imports. East Asia Forum
--------
India's Expenditure on Refined Palm Oil Rises to $2.2 Billion in 2024
India Refined Palm Oil Imports Refined palm oil imports into India expanded to 2.3M tons in 2024, picking up by 2.7% on the year before. In general, imports continue to indicate pronounced growth. The growth pace was the most rapid in 2021 when imports increased by 314% against the previous year. Over the period under review, imports attained the maximum at 3.1M tons in 2019; however, from 2020 to 2024, imports stood at a somewhat lower figure.
In value terms, refined palm oil imports expanded modestly to $2.2B (IndexBox estimates) in 2024. Overall, imports showed a buoyant expansion. The most prominent rate of growth was recorded in 2021 with an increase of 584% against the previous year. Imports peaked at $3.2B in 2022; however, from 2023 to 2024, imports remained at a lower figure. Index Box
--------
Pakistan has significant potential to become a regional hub for distributing Malaysia Sustainable Palm Oil
Datuk Seri Johari Abdul Ghani is the Minister of Plantation and Commodities of Malaysia, overseeing the country’s strategic policies and initiatives in the palm oil, rubber, timber, and other key commodity sectors. He has played a pivotal role in advocating for sustainable palm oil production, promoting Malaysian commodities in global markets, and enhancing trade relationships with key partners, including Pakistan.
Before assuming his ministerial role, Datuk Seri Johari Abdul Ghani had a distinguished career in both the public and private sectors. He previously served as the Minister of Finance (2016-2018), where he was instrumental in driving fiscal policies, corporate governance reforms, and economic resilience initiatives. As a seasoned entrepreneur, he has extensive experience in corporate leadership, having held key positions in various industries, including real estate, finance, and agribusiness.
Datuk Seri Johari Abdul Ghani has been a strong advocate for environmental sustainability and responsible commodity production, ensuring that Malaysia remains a leader in the global commodities market while balancing economic growth with ecological responsibility. Under his leadership, Malaysia has intensified efforts to comply with international sustainability standards, including the Malaysian Sustainable Palm Oil (MSPO) certification, to enhance market access and consumer confidence worldwide. Brecorder
--------
RSPO Launches Prisma platform
Designed to enhance compliance with global regulations, prisma provides real-time data and analytics to help RSPO Members streamline operations, optimise supply chains, and strengthen sustainability commitments.
Aimed at enhancing trade and compliance while meeting global regulations, PRISMA streamlines collaboration among RSPO stakeholders, optimising efficiency and accountability. Standardised audit reports enable better data analytics, ensuring adherence to RSPO Standards in a dynamic sustainability landscape. Prisma by RSPO
February 01, 2025
Boosting Palm Oil Productivity for Indonesia's Alternative Energy Future
InfoSAWIT, JAKARTA – The Indonesian palm oil industry faces a major challenge: low productivity. Although technological developments in agronomy, plant breeding, and processing techniques have increased the potential for CPO yield from 19% to 27%, the reality on the ground is far from expectations. The potential for Fresh Fruit Bunches (FFB) production currently reaches 8 tons of palm oil per hectare per year, but actual productivity is only 2.8 tons per hectare per year. This means that the realization of productivity is only 35% of its potential. This is a worrying situation.
One of the main causes of low palm oil productivity is the lack of fertilization. Many plantation areas, both owned by small farmers and large companies, are not optimally fertilized. In PTPN (BUMN Perkebunan), for example, fertilizer is not given optimally, even 3-5 years before replanting, the plants are not fertilized at all. In fact, oil palm is a hybrid plant that is very responsive to fertilization.
The problem is, fertilization recommendations often do not consider the economic impact. As a result, the amount and composition of fertilizer given do not match the proper dosage. The high price of fertilizer is also an obstacle, although economic analysis shows that fertilization of up to 10 kg per tree per year is still economical.
To overcome this problem, providing subsidized fertilizers can be a quick solution. With fertilizer subsidies, palm oil productivity can increase significantly. Simple calculations show that fertilizer subsidies for 17 million hectares of palm oil plantations require funds of around IDR 90 trillion. However, the impact is much greater: state revenues from export duties, export levies, and VAT can reach IDR 186 trillion. This means that fertilizer subsidies are not a waste, but a profitable investment.
In addition, the application of the Production Force Management method can increase fertilization efficiency. This method focuses on “root management” and “canopy management,” which increase the nutrient absorption and photosynthesis capacity of plants. With this method, productivity can increase by 30-100%, while fertilizer costs can be reduced.
Another issue that is often overlooked is the production road infrastructure. Many oil palm plantations have high production potential, but the fruit cannot be transported to the factory due to poor road conditions. Improving this infrastructure must be a priority to ensure that the harvest can reach the factory smoothly.
In addition, coordination between agencies is also a major obstacle. There are at least eight agencies involved in the management of the palm oil industry: the Ministry of Agriculture, the Ministry of Industry, the Ministry of Trade, PT Pertamina, BPDPKS, ATR, local governments, and banking. To solve this problem, a special agency is needed that can coordinate all related agencies.
State-owned Plantation Companies such as PTPN have a strategic role in increasing national palm oil productivity. Currently, productivity at PTPN has reached 51.3% of its potential, higher than private plantations (43.04%) and community plantations (31.99%). PTPN can be tasked with developing new areas, fostering plasma farmers, and taking over abandoned private plantations.
By optimizing the role of PTPN, state revenues from taxes, export levies, and dividends can increase significantly. This income can even be twice the value of the fertilizer subsidy provided.
National palm oil production is not only important to meet domestic and export needs, but can also be a powerful political weapon. In the context of diplomacy and energy security, palm oil can be Indonesia's mainstay to reduce dependence on fossil fuel imports. The B-100 program, for example, can be a long-term solution to reduce fossil fuel consumption.
However, to achieve this, Indonesia must increase palm oil production from 50 million tons to 120-130 million tons per year. With the current palm oil area reaching 17 million hectares and the potential for expansion to 20.5 million hectares, this target can be achieved if productivity is increased to 7 tons per hectare per year.
Author: Memet Hakim / Senior Agronomist for Palm Oil, TA Business Recovery & Financial Improvement / Advisory Board of APIB & APP TNI Infosawit
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This Bank Relies on Sustainable Financing, Palm Oil Considered a Green Industry
InfoSAWIT, JAKARTA – PT Bank Rakyat Indonesia Tbk (BRI) stated that most of its financing portfolio is currently allocated to the palm oil industry. BRI President Director, Sunarso, emphasized that financing to the palm oil sector is included in the sustainable financing category.
"Now the big one (funding) is palm oil. It's up to you to interpret it, if I say palm oil is green," said Sunarso. He explained that palm oil has great potential to optimize oil sources as raw materials for biofuel, which is considered more sustainable and environmentally friendly.
Sunarso emphasized that palm oil is one of the strategic keys in supporting the energy transition in Indonesia. According to him, every hectare of palm oil plantation can produce at least 5 tons of oil per year. "If calculated, 5 tons of palm oil is equivalent to how many tons of carbon are absorbed by palm trees from the air. So, I still categorize this kind of financing as renewable energy," Sunarso explained as reported by InfoSAWIT from Katadata, on Saturday (1/2).
Sunarso's statement is in line with President Prabowo Subianto's previous statement that Indonesia does not need to be afraid of the issue of deforestation for palm oil development. According to the President, palm oil is also a tree that can absorb carbon dioxide (CO2).
“There are leaves. It absorbs carbon dioxide,” Prabowo said on one occasion. “We also have to add oil palm. Don’t be afraid of endangering, deforestation. So, regents, governors, officials, soldiers, and police, guard our oil palm.”
Although palm oil has the ability to absorb carbon, its absorption capacity is still lower compared to natural forests. According to research, a 25-year-old palm tree can absorb 39.94 tons of CO2 per year or equivalent to 146.58 tons of CO2 equivalent (CO2e). However, palm oil plantation activities actually produce carbon emissions, both from plantation operations and changes in carbon storage.
Achmad Surambo, Executive Director of Sawit Watch, explained that land conversion into oil palm plantations can cause different greenhouse gas (GHG) emissions depending on the characteristics of the land.
"If it occurs on grassland land, the maximum emissions produced are -59 tons of CO2-eq, while the minimum is -115 tons of CO2-eq. Meanwhile, forest conversion on mineral land produces maximum emissions of 835 tons of CO2-eq and a minimum of 175 tons of CO2-eq. For peatland, the maximum emissions reach 1,835 tons of CO2-eq and a minimum of 1,175 tons of CO2-eq," Surambo explained in a written statement. Infosawit
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Cross River stakeholders meet to validate seven-year strategic farming devt plans
Stakeholders in the coffee, cocoa, and oil palm industries convened in Calabar, Cross River State, to confirm strategic development plans aimed at enhancing productivity and generating revenue for smallholder farmers and the state government.
Following its establishment by Governor Bassey Otu in March 2024, the committee was tasked with creating a 7-year strategic plan for the cocoa and oil palm value chains and developing a roadmap for cocoa, palm oil and coffee production in the state, among other objectives.
During the meeting, the Commissioner for Agriculture and Irrigation Development, Johnson Ebokpo, emphasised the significant potential of cocoa, coffee, and oil palm as sources of foreign exchange, rural development, poverty alleviation, and food security.
He stressed the need for a coordinated approach to address challenges along the entire value chain while embracing innovation and sustainability.
Ebokpo remarked that the draft 7-year strategic development plan represents extensive consultations and thorough research. He referred to it as not merely a roadmap but a visionary strategy to maximise the benefits of these essential crops through a value chain model that prioritises productivity, sustainability, and market competitiveness.
He asserted, “The success of this strategic plan depends on the commitment of everyone here, from policymakers to private sector representatives, researchers to farmers. Each of us plays a role in transforming these sectors into drivers of growth and prosperity.”
The meeting’s purpose was to validate the plan, ensuring it reflects the realities on the ground and incorporates insights from those directly engaged in the value chain. He called on participants to engage fully, provide constructive input, and ensure the final plan is strong, implementable, and aligned with shared goals.
Chairperson of the Multistakeholder Committee, Prof. Susan Ohen recognised the crucial contributions of stakeholders in achieving the plan’s objectives and highlighted its importance to Cross River State’s economy.
Ohen elaborated on the rationale behind the strategic plans, stating they would aid in increasing foreign exchange earnings, generate job opportunities across the value chains, boost government revenue, and help meet emerging global market standards such as EURD, while also promoting gender inclusion and addressing industry challenges.
“This meeting will help us identify the strengths, weaknesses, opportunities, and threats within these sectors. The outcomes of this process will impact farmers, processors, marketers, banks, and the government,” she noted. Tribune OnlineNG
CSPO Watch February 2025
Boosting Palm Oil Productivity for Indonesia's Alternative Energy Future
InfoSAWIT, JAKARTA – The Indonesian palm oil industry faces a major challenge: low productivity. Although technological developments in agronomy, plant breeding, and processing techniques have increased the potential for CPO yield from 19% to 27%, the reality on the ground is far from expectations. The potential for Fresh Fruit Bunches (FFB) production currently reaches 8 tons of palm oil per hectare per year, but actual productivity is only 2.8 tons per hectare per year. This means that the realization of productivity is only 35% of its potential. This is a worrying situation.
One of the main causes of low palm oil productivity is the lack of fertilization. Many plantation areas, both owned by small farmers and large companies, are not optimally fertilized. In PTPN (BUMN Perkebunan), for example, fertilizer is not given optimally, even 3-5 years before replanting, the plants are not fertilized at all. In fact, oil palm is a hybrid plant that is very responsive to fertilization.
The problem is, fertilization recommendations often do not consider the economic impact. As a result, the amount and composition of fertilizer given do not match the proper dosage. The high price of fertilizer is also an obstacle, although economic analysis shows that fertilization of up to 10 kg per tree per year is still economical.
To overcome this problem, providing subsidized fertilizers can be a quick solution. With fertilizer subsidies, palm oil productivity can increase significantly. Simple calculations show that fertilizer subsidies for 17 million hectares of palm oil plantations require funds of around IDR 90 trillion. However, the impact is much greater: state revenues from export duties, export levies, and VAT can reach IDR 186 trillion. This means that fertilizer subsidies are not a waste, but a profitable investment.
In addition, the application of the Production Force Management method can increase fertilization efficiency. This method focuses on “root management” and “canopy management,” which increase the nutrient absorption and photosynthesis capacity of plants. With this method, productivity can increase by 30-100%, while fertilizer costs can be reduced.
Another issue that is often overlooked is the production road infrastructure. Many oil palm plantations have high production potential, but the fruit cannot be transported to the factory due to poor road conditions. Improving this infrastructure must be a priority to ensure that the harvest can reach the factory smoothly.
In addition, coordination between agencies is also a major obstacle. There are at least eight agencies involved in the management of the palm oil industry: the Ministry of Agriculture, the Ministry of Industry, the Ministry of Trade, PT Pertamina, BPDPKS, ATR, local governments, and banking. To solve this problem, a special agency is needed that can coordinate all related agencies.
State-owned Plantation Companies such as PTPN have a strategic role in increasing national palm oil productivity. Currently, productivity at PTPN has reached 51.3% of its potential, higher than private plantations (43.04%) and community plantations (31.99%). PTPN can be tasked with developing new areas, fostering plasma farmers, and taking over abandoned private plantations.
By optimizing the role of PTPN, state revenues from taxes, export levies, and dividends can increase significantly. This income can even be twice the value of the fertilizer subsidy provided.
National palm oil production is not only important to meet domestic and export needs, but can also be a powerful political weapon. In the context of diplomacy and energy security, palm oil can be Indonesia's mainstay to reduce dependence on fossil fuel imports. The B-100 program, for example, can be a long-term solution to reduce fossil fuel consumption.
However, to achieve this, Indonesia must increase palm oil production from 50 million tons to 120-130 million tons per year. With the current palm oil area reaching 17 million hectares and the potential for expansion to 20.5 million hectares, this target can be achieved if productivity is increased to 7 tons per hectare per year.
Author: Memet Hakim / Senior Agronomist for Palm Oil, TA Business Recovery & Financial Improvement / Advisory Board of APIB & APP TNI Infosawit
--------
This Bank Relies on Sustainable Financing, Palm Oil Considered a Green Industry
InfoSAWIT, JAKARTA – PT Bank Rakyat Indonesia Tbk (BRI) stated that most of its financing portfolio is currently allocated to the palm oil industry. BRI President Director, Sunarso, emphasized that financing to the palm oil sector is included in the sustainable financing category.
"Now the big one (funding) is palm oil. It's up to you to interpret it, if I say palm oil is green," said Sunarso. He explained that palm oil has great potential to optimize oil sources as raw materials for biofuel, which is considered more sustainable and environmentally friendly.
Sunarso emphasized that palm oil is one of the strategic keys in supporting the energy transition in Indonesia. According to him, every hectare of palm oil plantation can produce at least 5 tons of oil per year. "If calculated, 5 tons of palm oil is equivalent to how many tons of carbon are absorbed by palm trees from the air. So, I still categorize this kind of financing as renewable energy," Sunarso explained as reported by InfoSAWIT from Katadata, on Saturday (1/2).
Sunarso's statement is in line with President Prabowo Subianto's previous statement that Indonesia does not need to be afraid of the issue of deforestation for palm oil development. According to the President, palm oil is also a tree that can absorb carbon dioxide (CO2).
“There are leaves. It absorbs carbon dioxide,” Prabowo said on one occasion. “We also have to add oil palm. Don’t be afraid of endangering, deforestation. So, regents, governors, officials, soldiers, and police, guard our oil palm.”
Although palm oil has the ability to absorb carbon, its absorption capacity is still lower compared to natural forests. According to research, a 25-year-old palm tree can absorb 39.94 tons of CO2 per year or equivalent to 146.58 tons of CO2 equivalent (CO2e). However, palm oil plantation activities actually produce carbon emissions, both from plantation operations and changes in carbon storage.
Achmad Surambo, Executive Director of Sawit Watch, explained that land conversion into oil palm plantations can cause different greenhouse gas (GHG) emissions depending on the characteristics of the land.
"If it occurs on grassland land, the maximum emissions produced are -59 tons of CO2-eq, while the minimum is -115 tons of CO2-eq. Meanwhile, forest conversion on mineral land produces maximum emissions of 835 tons of CO2-eq and a minimum of 175 tons of CO2-eq. For peatland, the maximum emissions reach 1,835 tons of CO2-eq and a minimum of 1,175 tons of CO2-eq," Surambo explained in a written statement. Infosawit
--------
Cross River stakeholders meet to validate seven-year strategic farming devt plans
Stakeholders in the coffee, cocoa, and oil palm industries convened in Calabar, Cross River State, to confirm strategic development plans aimed at enhancing productivity and generating revenue for smallholder farmers and the state government.
Following its establishment by Governor Bassey Otu in March 2024, the committee was tasked with creating a 7-year strategic plan for the cocoa and oil palm value chains and developing a roadmap for cocoa, palm oil and coffee production in the state, among other objectives.
During the meeting, the Commissioner for Agriculture and Irrigation Development, Johnson Ebokpo, emphasised the significant potential of cocoa, coffee, and oil palm as sources of foreign exchange, rural development, poverty alleviation, and food security.
He stressed the need for a coordinated approach to address challenges along the entire value chain while embracing innovation and sustainability.
Ebokpo remarked that the draft 7-year strategic development plan represents extensive consultations and thorough research. He referred to it as not merely a roadmap but a visionary strategy to maximise the benefits of these essential crops through a value chain model that prioritises productivity, sustainability, and market competitiveness.
He asserted, “The success of this strategic plan depends on the commitment of everyone here, from policymakers to private sector representatives, researchers to farmers. Each of us plays a role in transforming these sectors into drivers of growth and prosperity.”
The meeting’s purpose was to validate the plan, ensuring it reflects the realities on the ground and incorporates insights from those directly engaged in the value chain. He called on participants to engage fully, provide constructive input, and ensure the final plan is strong, implementable, and aligned with shared goals.
Chairperson of the Multistakeholder Committee, Prof. Susan Ohen recognised the crucial contributions of stakeholders in achieving the plan’s objectives and highlighted its importance to Cross River State’s economy.
Ohen elaborated on the rationale behind the strategic plans, stating they would aid in increasing foreign exchange earnings, generate job opportunities across the value chains, boost government revenue, and help meet emerging global market standards such as EURD, while also promoting gender inclusion and addressing industry challenges.
“This meeting will help us identify the strengths, weaknesses, opportunities, and threats within these sectors. The outcomes of this process will impact farmers, processors, marketers, banks, and the government,” she noted. Tribune OnlineNG
CSPO Watch February 2025
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