Palm oil news March 2025
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March 31, 2025
EU Scrutinizes Fraud in Certification of Biofuels
The scrutiny on the use of biofuels in Europe has intensified, with reports emerging last week that the EU is planning to suspend recognition of the ISCC certification of waste-based biofuels. The International Sustainability and Carbon Certification (ISCC) has an EU certification scheme that verifies that biofuels entering the EU market are compliant with the bloc’s sustainability requirements, as set out in the Renewable Energy Directive (RED) II.
The EU Committee on Sustainability of Biofuels, Bioliquids and Biomass Fuels had convened to discuss rising fraud cases of biofuels in the European market. While the deliberations of the committee are confidential, one of the outcomes reportedly is a proposal to the European Commission to suspend recognition of ISCC certifications for waste-based biofuels for 2.5 years. If the 27 member states approve the suspension, EU countries will have the discretion to accept or reject ISCC certificates.
A surge of imports from South-East Asia has raised serious concerns on the compliance of these biofuels with EU market regulations. Market players blame this on lax verification procedures by ISCC, which is the largest feedstock accreditor. Data from fuel regulators in Europe estimate that 1.8 million tons of fraudulent ISCC-certified Palm Oil Mill Effluent (POME) entered the EU in 2023. POME is a byproduct of palm oil processing and is used as a feedstock in production of biodiesel. The biofuel is gaining widespread use in the shipping industry.
“Based on European Commission data published in December, a third of the used cooking oil (UCO) is undoubtedly fake, most likely sourced directly from virgin palm oil,” James Cogan, EU Government Affairs, Industry& Policy Director at biotech firm ClonBio Group, told S&P Global. Virgin palm oil as a feedstock is ineligible for renewable energy incentives under the EU’s RED II initiative. This is based on its alleged contribution to deforestation abroad.
In addition, the EU proposal comes at a time when the shipping industry in Europe has started a journey on use of ISCC certified biofuels, as a measure towards a green transition.
The ISCC system said that it is aware of the EU Biofuels Committee’s discussions, noting that it was surprised by the suspension proposal.
This latest step from the EU adds to the growing pushback against use of biofuels in shipping. Next week, the IMO will be hosting MEPC 83 (Marine Environment Protection Committee 83) where a raft of mid-term measures on green shipping will be debated. In line with this, some shipping lines - including Hapag Lloyd and environmental NGOs - have come forward to warn about the widespread use of biofuels in shipping industry.
Nearly a third of global shipping could run on biofuels in 2030, up from less than one percent today. This would see close to 300 million bottles of vegetable oil (palm and soy) diverted to powering ships every day in 2030, according to a study by the transport NGO T&E. Unfortunately, vast amounts of farmlands - 3.4 million hectares, almost total area of Germany - would be needed to produce enough crops to meet biofuels demand for shipping, taking up resources that would otherwise be used to make food. Maritime Executive
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Trump White House urges new talks on biofuels policy
The Trump administration has urged oil and biofuel producers to negotiate a compromise on the future of US biofuels policy, aiming to prevent the political clashes that defined his first term, Reuters reported.
The oil industry and biofuel producers have long competed for a share of the multibillion-dollar US gasoline market, frequently clashing over the Renewable Fuel Standard (RFS) — a federal programme requiring billions of gallons of ethanol and other biofuels to be blended into the nation’s fuel supply, Reuters added.
Following the White House directive, at least two meetings have taken place, including one last week hosted by the American Petroleum Institute (API).
Participants, including API’s vice president of downstream policy, Will Hupman, discussed key issues such as future biofuel blending mandates, exemptions for small refineries, and biofuel tax policies.
Any agreement between the two industries could influence the Trump administration’s approach to biofuels policy moving forward.
The range discussed was between 4.75 billion and 5.5 billion gallons, with some wanting higher volumes in 2026 and others pushing for a more gradual rise, the three sources said.
Blending mandates for ethanol, meanwhile, have capped out at 15 billion gallons, and the parties saw little growth prospect due to plateauing demand for gasoline, the sources said.
The groups were also split over small refinery exemptions to the RFS, one of the most controversial and divisive issues, the sources said.
In Trump's first administration, the EPA approved a record number of such exemptions, letting small refiners sidestep their blending obligations, and triggering political backlash from his Republican allies in the Farm Belt who said it punished farmers.
Biofuels News
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Traders concerned over import of duty-free oil from Nepal under SAFTA pact
Ashwani Maindola, New Delhi
The edible oil traders have raised concern over the import of duty- free edible oil from Nepal and other SAARC countries under SAFTA Agreement.
National President of All India Edible Oil Traders Federation Shankar Thakkar said that after the government imposed 20% duty on imported oils, large quantities of duty-free refined soybean oil and palm oil are being imported from Nepal and other SAARC (South Asian Association for Regional Cooperation) countries under the SAFTA (South Asian Free Trade Area) Agreement.
"As a result, domestic oil traders and oilseed farmers are facing difficulties. We demand the government to take action on duty-free oils being imported from Nepal and other SAARC countries," said Thakkar while adding that this import is causing a loss of revenue worth crores of rupees to the government every month.
Meanwhile, taking this matter seriously, it is learnt that the Central Government has issued a new notification. Thakkar said that if this notification is followed properly, then there is a possibility of curbing duty-free import of agricultural and food products including edible oil from Nepal and other member countries of the SAARC organisation to a great extent.
Thakkar said that the Customs Department has issued a notification in this regard on March 18, in which it has been made mandatory for importers and exporters to submit Proof of Origin for goods imported under concessional duty.
Earlier, Certificate of Origin was sufficient for this. This change has been made to prevent violation of rules under the SAFTA Agreement and to ensure correct information. This step is expected to curb the flood of edible oils coming from Nepal and other SAARC countries. FNB News
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Strategic Sustainability: Indonesia’s Green Bet on the “BRICS Bank”
Indonesia’s decision to join the New Development Bank (NDB) under the BRICS framework presents an opportunity to accelerate its green industrial policy. As the country transitions toward a more sustainable economy, securing financing for clean energy, infrastructure, and environmentally friendly industries is paramount. NDB offers an additional funding source that can complement existing financial institutions, allowing Indonesia to diversify its financing options while ensuring alignment with national sustainability goals.
Financing Indonesia’s Green Industrial Policy
Indonesia has set ambitious targets for reducing carbon emissions and expanding its renewable energy sector. However, financing the transition to a greener economy remains a challenge. The NDB’s strong focus on clean energy, sustainable infrastructure, and digital transformation aligns with Indonesia’s long-term development strategy. Membership in the NDB enables Indonesia to tap into funding mechanisms that support renewable energy projects, electric vehicle infrastructure, and eco-friendly manufacturing.
Diversifying financial sources is crucial as Indonesia seeks to shift away from fossil fuels. While the World Bank and Asian Development Bank (ADB) remain key partners, NDB loans—if structured with competitive interest rates and favorable terms—can provide Indonesia with greater flexibility in financing large-scale green industrial projects. This reduces the strain on public finances while ensuring Indonesia continues its path toward a low-carbon economy.
Moreover, Indonesia’s participation in NDB can help reduce financial dependence on any single source, enabling the country to better negotiate terms for loans and development assistance. This diversified approach allows Indonesia to select financing that aligns best with its environmental goals and economic priorities, ensuring a stable and sustainable transition.
Strengthening Indonesia’s Role in Sustainable Development Finance
Beyond financial access, joining NDB positions Indonesia to play a more active role in shaping global sustainable finance policies. As an emerging economy, Indonesia has a vested interest in advocating for fair and transparent financing models that support developing nations in their green transition. By participating in NDB’s decision-making processes, Indonesia can push for policies that prioritize environmental sustainability and equitable access to green financing.
NDB operates on a consensus-based governance model, ensuring that no single country dominates its lending agenda. Indonesia must take advantage of this structure to influence the bank’s funding priorities, ensuring they align with regional and national sustainability goals. Effective engagement will help secure financing for projects that support Indonesia’s green industrial policy while maintaining financial prudence.
Indonesia can also collaborate with other BRICS and NDB members to develop best practices for sustainable financing, ensuring that climate-conscious projects receive priority funding. By fostering alliances with nations that share similar sustainability goals, Indonesia can contribute to shaping NDB’s long-term green finance strategies.
Ensuring Transparency and Environmental Standards
Indonesia must actively advocate for transparency and environmental safeguards in NDB-funded projects. While the bank has established reporting mechanisms, continued scrutiny is necessary to ensure that projects meet high sustainability standards and avoid environmental or social risks. Strengthening oversight mechanisms will reinforce the credibility of NDB-financed initiatives and protect against inefficiencies or mismanagement.
Additionally, Indonesia should work to strengthen environmental and social impact assessments for NDB-funded projects, ensuring that sustainability remains a top priority. Transparency in project selection and implementation is essential to prevent environmental degradation and ensure that financing is directed toward truly transformative green initiatives.
As part of its engagement with NDB, Indonesia should push for an increased emphasis on financing clean technology innovation, such as battery storage for renewable energy, circular economy models, and carbon capture initiatives. By doing so, Indonesia can help expand the scope of sustainable financing within the institution while ensuring its own green industrial agenda receives the necessary support. China Global South
EU Scrutinizes Fraud in Certification of Biofuels
The scrutiny on the use of biofuels in Europe has intensified, with reports emerging last week that the EU is planning to suspend recognition of the ISCC certification of waste-based biofuels. The International Sustainability and Carbon Certification (ISCC) has an EU certification scheme that verifies that biofuels entering the EU market are compliant with the bloc’s sustainability requirements, as set out in the Renewable Energy Directive (RED) II.
The EU Committee on Sustainability of Biofuels, Bioliquids and Biomass Fuels had convened to discuss rising fraud cases of biofuels in the European market. While the deliberations of the committee are confidential, one of the outcomes reportedly is a proposal to the European Commission to suspend recognition of ISCC certifications for waste-based biofuels for 2.5 years. If the 27 member states approve the suspension, EU countries will have the discretion to accept or reject ISCC certificates.
A surge of imports from South-East Asia has raised serious concerns on the compliance of these biofuels with EU market regulations. Market players blame this on lax verification procedures by ISCC, which is the largest feedstock accreditor. Data from fuel regulators in Europe estimate that 1.8 million tons of fraudulent ISCC-certified Palm Oil Mill Effluent (POME) entered the EU in 2023. POME is a byproduct of palm oil processing and is used as a feedstock in production of biodiesel. The biofuel is gaining widespread use in the shipping industry.
“Based on European Commission data published in December, a third of the used cooking oil (UCO) is undoubtedly fake, most likely sourced directly from virgin palm oil,” James Cogan, EU Government Affairs, Industry& Policy Director at biotech firm ClonBio Group, told S&P Global. Virgin palm oil as a feedstock is ineligible for renewable energy incentives under the EU’s RED II initiative. This is based on its alleged contribution to deforestation abroad.
In addition, the EU proposal comes at a time when the shipping industry in Europe has started a journey on use of ISCC certified biofuels, as a measure towards a green transition.
The ISCC system said that it is aware of the EU Biofuels Committee’s discussions, noting that it was surprised by the suspension proposal.
This latest step from the EU adds to the growing pushback against use of biofuels in shipping. Next week, the IMO will be hosting MEPC 83 (Marine Environment Protection Committee 83) where a raft of mid-term measures on green shipping will be debated. In line with this, some shipping lines - including Hapag Lloyd and environmental NGOs - have come forward to warn about the widespread use of biofuels in shipping industry.
Nearly a third of global shipping could run on biofuels in 2030, up from less than one percent today. This would see close to 300 million bottles of vegetable oil (palm and soy) diverted to powering ships every day in 2030, according to a study by the transport NGO T&E. Unfortunately, vast amounts of farmlands - 3.4 million hectares, almost total area of Germany - would be needed to produce enough crops to meet biofuels demand for shipping, taking up resources that would otherwise be used to make food. Maritime Executive
---------
Trump White House urges new talks on biofuels policy
The Trump administration has urged oil and biofuel producers to negotiate a compromise on the future of US biofuels policy, aiming to prevent the political clashes that defined his first term, Reuters reported.
The oil industry and biofuel producers have long competed for a share of the multibillion-dollar US gasoline market, frequently clashing over the Renewable Fuel Standard (RFS) — a federal programme requiring billions of gallons of ethanol and other biofuels to be blended into the nation’s fuel supply, Reuters added.
Following the White House directive, at least two meetings have taken place, including one last week hosted by the American Petroleum Institute (API).
Participants, including API’s vice president of downstream policy, Will Hupman, discussed key issues such as future biofuel blending mandates, exemptions for small refineries, and biofuel tax policies.
Any agreement between the two industries could influence the Trump administration’s approach to biofuels policy moving forward.
The range discussed was between 4.75 billion and 5.5 billion gallons, with some wanting higher volumes in 2026 and others pushing for a more gradual rise, the three sources said.
Blending mandates for ethanol, meanwhile, have capped out at 15 billion gallons, and the parties saw little growth prospect due to plateauing demand for gasoline, the sources said.
The groups were also split over small refinery exemptions to the RFS, one of the most controversial and divisive issues, the sources said.
In Trump's first administration, the EPA approved a record number of such exemptions, letting small refiners sidestep their blending obligations, and triggering political backlash from his Republican allies in the Farm Belt who said it punished farmers.
Biofuels News
---------
Traders concerned over import of duty-free oil from Nepal under SAFTA pact
Ashwani Maindola, New Delhi
The edible oil traders have raised concern over the import of duty- free edible oil from Nepal and other SAARC countries under SAFTA Agreement.
National President of All India Edible Oil Traders Federation Shankar Thakkar said that after the government imposed 20% duty on imported oils, large quantities of duty-free refined soybean oil and palm oil are being imported from Nepal and other SAARC (South Asian Association for Regional Cooperation) countries under the SAFTA (South Asian Free Trade Area) Agreement.
"As a result, domestic oil traders and oilseed farmers are facing difficulties. We demand the government to take action on duty-free oils being imported from Nepal and other SAARC countries," said Thakkar while adding that this import is causing a loss of revenue worth crores of rupees to the government every month.
Meanwhile, taking this matter seriously, it is learnt that the Central Government has issued a new notification. Thakkar said that if this notification is followed properly, then there is a possibility of curbing duty-free import of agricultural and food products including edible oil from Nepal and other member countries of the SAARC organisation to a great extent.
Thakkar said that the Customs Department has issued a notification in this regard on March 18, in which it has been made mandatory for importers and exporters to submit Proof of Origin for goods imported under concessional duty.
Earlier, Certificate of Origin was sufficient for this. This change has been made to prevent violation of rules under the SAFTA Agreement and to ensure correct information. This step is expected to curb the flood of edible oils coming from Nepal and other SAARC countries. FNB News
---------
Strategic Sustainability: Indonesia’s Green Bet on the “BRICS Bank”
Indonesia’s decision to join the New Development Bank (NDB) under the BRICS framework presents an opportunity to accelerate its green industrial policy. As the country transitions toward a more sustainable economy, securing financing for clean energy, infrastructure, and environmentally friendly industries is paramount. NDB offers an additional funding source that can complement existing financial institutions, allowing Indonesia to diversify its financing options while ensuring alignment with national sustainability goals.
Financing Indonesia’s Green Industrial Policy
Indonesia has set ambitious targets for reducing carbon emissions and expanding its renewable energy sector. However, financing the transition to a greener economy remains a challenge. The NDB’s strong focus on clean energy, sustainable infrastructure, and digital transformation aligns with Indonesia’s long-term development strategy. Membership in the NDB enables Indonesia to tap into funding mechanisms that support renewable energy projects, electric vehicle infrastructure, and eco-friendly manufacturing.
Diversifying financial sources is crucial as Indonesia seeks to shift away from fossil fuels. While the World Bank and Asian Development Bank (ADB) remain key partners, NDB loans—if structured with competitive interest rates and favorable terms—can provide Indonesia with greater flexibility in financing large-scale green industrial projects. This reduces the strain on public finances while ensuring Indonesia continues its path toward a low-carbon economy.
Moreover, Indonesia’s participation in NDB can help reduce financial dependence on any single source, enabling the country to better negotiate terms for loans and development assistance. This diversified approach allows Indonesia to select financing that aligns best with its environmental goals and economic priorities, ensuring a stable and sustainable transition.
Strengthening Indonesia’s Role in Sustainable Development Finance
Beyond financial access, joining NDB positions Indonesia to play a more active role in shaping global sustainable finance policies. As an emerging economy, Indonesia has a vested interest in advocating for fair and transparent financing models that support developing nations in their green transition. By participating in NDB’s decision-making processes, Indonesia can push for policies that prioritize environmental sustainability and equitable access to green financing.
NDB operates on a consensus-based governance model, ensuring that no single country dominates its lending agenda. Indonesia must take advantage of this structure to influence the bank’s funding priorities, ensuring they align with regional and national sustainability goals. Effective engagement will help secure financing for projects that support Indonesia’s green industrial policy while maintaining financial prudence.
Indonesia can also collaborate with other BRICS and NDB members to develop best practices for sustainable financing, ensuring that climate-conscious projects receive priority funding. By fostering alliances with nations that share similar sustainability goals, Indonesia can contribute to shaping NDB’s long-term green finance strategies.
Ensuring Transparency and Environmental Standards
Indonesia must actively advocate for transparency and environmental safeguards in NDB-funded projects. While the bank has established reporting mechanisms, continued scrutiny is necessary to ensure that projects meet high sustainability standards and avoid environmental or social risks. Strengthening oversight mechanisms will reinforce the credibility of NDB-financed initiatives and protect against inefficiencies or mismanagement.
Additionally, Indonesia should work to strengthen environmental and social impact assessments for NDB-funded projects, ensuring that sustainability remains a top priority. Transparency in project selection and implementation is essential to prevent environmental degradation and ensure that financing is directed toward truly transformative green initiatives.
As part of its engagement with NDB, Indonesia should push for an increased emphasis on financing clean technology innovation, such as battery storage for renewable energy, circular economy models, and carbon capture initiatives. By doing so, Indonesia can help expand the scope of sustainable financing within the institution while ensuring its own green industrial agenda receives the necessary support. China Global South
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March 27, 2025
Indonesia steps up handing confiscated palm plantations to state company
JAKARTA, March 26 (Reuters) - Indonesian authorities will hand over more land that has been seized in probes into illegal palm plantations to new state company Agrinas Palma Nusantara, officials said on Wednesday, turning the company into a major industry player.
Indonesia, the world's top palm oil producer, began efforts this year to improve governance of its forest and palm oil cultivation after facing criticism the plantations were a major driver of deforestation.
Prosecutors handed over 216,997 hectares (536,211 acres) of plantation areas confiscated from 109 companies to Agrinas, Attorney General official Febrie Adriansyah said, adding to the more than 221,000 hectares handed over earlier this month.
Agrinas is expected to continue running the plantations.
"Agrinas Palma must be ready with their leadership to make sure the production will not drop, and should even be increased," said Defence Minister Sjafrie Sjamsoeddin, who is leading the task force set up by President Prabowo Subianto to identify illegal plantations in designated forest areas.
The plantations being given to Agrinas were part of an area of around 1 million hectares the task force has confiscated.
Authorities will go through a verification process for the rest of the area and aim to hand over more plantations to Agrinas, Sjafrie told reporters.
If Agrinas is given control of all 1 million hectares, it will become the biggest plantation company in the country.
The transfer of plantations to Agrinas could affect plant care which could in turn impact palm oil output this year, Eddy Martono, chairman of Indonesia's largest palm oil association GAPKI, said.
"Since there is a change in ownership, the previous owner would no longer continue plant care including fertilizer application," he added. Reuters
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Indonesia to Use 1 Million African Weevils to Spur Palm Output
(Bloomberg) -- Indonesia is betting on tiny bugs from Africa to help boost its palm oil production, as the broader sector grapples with tightening supply that threatens to keep prices elevated and add to food inflation.
The world’s top grower is planning to introduce around 1 million of the weevils at some plantations this year to improve pollination and fruit development. Three species collected from Tanzania are expected to arrive at a facility in North Sumatra next month for a series of tests before they are released.
The hope is the African weevils will help revive production growth after years of stalling output, which stems from old trees that some growers are reluctant to replant due to the extended time it takes for them to fruit. Constrained supply, including from the second-biggest producer, Malaysia, has contributed to palm relinquishing its status as the world’s cheapest vegetable oil to soyoil.
Adding to the problem: Indonesia now wants to expand its biofuel program, meaning more palm oil will be diverted to local supply rather than used for export. That’s put the insect initiative at a crucial time.
‘Fresh Batch’
Indonesia and Malaysia’s palm industries have ballooned over recent decades, often at the cost of large swathes of native jungle and forests. The two now account for around 85% of global supply of the most widely used vegetable oil, which can be found in products from chocolate to cosmetics and biofuel. Bloomberg
---------
Used cooking oil now main commodity in production of sustainable aviation fuel
Minister of Natural Resources and Environmental Sustainability Nik Nazmi Nik Ahmad said with used cooking oil being base material in the production of sustainable aviation fuel it helps address environmental pollution.
KUALA LUMPUR (March 27): Used cooking oil has become an important commodity as it can be used as a base material for the production of sustainable aviation fuel (SAF), which has low carbon emissions.
Minister of Natural Resources and Environmental Sustainability Nik Nazmi Nik Ahmad said that, in addition, it also helps address environmental pollution.
"Previously, used cooking oil was usually just disposed of, causing pollution to waterways and rivers. However, these days, used cooking oil is being used as the base material for the production of SAF.
"In years to come, sustainable aviation fuel is expected to become a mandatory requirement internationally. As such, the collection and recycling of used cooking oil not only helps prevent environmental pollution but also contributes to reducing carbon emissions in the aviation sector, which is one of the sectors with the highest carbon emission rates,” he said.
He said this when met at the programme to collect used cooking oil at the Taman Setapak Jaya Ramadan Bazaar organised by FatHopes Energy Sdn Bhd, in collaboration with Eko Setiawangsa here on Wednesday. It was also attended by FatHopes Energy chief executive officer Vinesh Sinha.
Meanwhile, Vinesh Sinha said the aviation sector is the most difficult to decarbonise due to the lack of viable alternatives.
“Whereas in road transport, multiple options such as electrification and hydrogen are available. As a Malaysian company, we believe it is our responsibility to help solve the world's biggest challenges," he said. The Edge
---------
SAF registry to be operated by the Civil Aviation Decarbonisation Organisation
The International Air Transport Association (IATA) has established the Civil Aviation Decarbonisation Organisation (CADO) to manage the IATA-developed Sustainable Aviation Fuel (SAF) Registry when it is released.
“CADO will turbo-charge the imminent launch of the IATA-developed SAF Registry.
“Its mandate is to manage the SAF Registry as a separate entity from IATA with an open and global approach that supports the scrutiny needed to build trust among all stakeholders.
“In fact, the door is open for any stakeholder in the SAF value chain, including governments, to join CADO.
“This inclusive approach should also be a force for the harmonisation of the principles on which all SAF registries operate,” said Marie Owens Thomsen, IATA’s senior vice-president sustainability and chief economist.
“The SAF Registry is a critical piece of market infrastructure that is indispensable in building a global, transparent and liquid global market for SAF.
“The industry’s commitment to build the Registry and establish CADO to manage it should inspire governments, fossil fuel producers, and investors to engage in the SAF market with commensurate vigour. Ramping-up SAF production is the common goal and the structure we are putting in place with CADO is an important step in moving decarbonisation forward,” said Willie Walsh, IATA’s director general. Biofuels News
---------
India aims to increase oil seed production to 70 million tonnes by 2031
The National Mission on Edible Oils – Oilseeds has been launched with an outlay of ₹10,103.38 crore to make India self-reliant in edible oil production, says Union Minister
The Union government has launched National Mission on Edible Oils–Oilseeds (NMEO-OS) with an outlay of Rs 10,103.38 crore to boost the domestic oilseed production to 70 million tonnes by 2030-31 from the current 39 million tonnes, Minister of State for Consumer Affairs, Food & Public Distribution Nimuben Jayantibhai Bambhaniya has said in Parliament.
In response to a question posed by Nellore MP Vemireddy Prabhakar Reddy, Ms. Bambhaniya said, “Around 57% of edible oil requirement is met through imports as the domestic production is unable to meet the demand. The NMEO-OS aims to enhance the production of key primary oilseed crops such as rapeseed-mustard, groundnut, soyabean, sunflower and sesamum, as well as increasing its collection and extraction efficiency from secondary sources.” The Hindu
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Can RSPO certifications reduce efficiency?
26-Mar-2025 by Augustus Bambridge-Sutton
A new study suggests that certifications may reduce palm oil coverage
https://www.foodnavigator.com/Article/2025/03/26/rspo-certification-makes-farms-less-efficient-study-says/
Indonesia steps up handing confiscated palm plantations to state company
JAKARTA, March 26 (Reuters) - Indonesian authorities will hand over more land that has been seized in probes into illegal palm plantations to new state company Agrinas Palma Nusantara, officials said on Wednesday, turning the company into a major industry player.
Indonesia, the world's top palm oil producer, began efforts this year to improve governance of its forest and palm oil cultivation after facing criticism the plantations were a major driver of deforestation.
Prosecutors handed over 216,997 hectares (536,211 acres) of plantation areas confiscated from 109 companies to Agrinas, Attorney General official Febrie Adriansyah said, adding to the more than 221,000 hectares handed over earlier this month.
Agrinas is expected to continue running the plantations.
"Agrinas Palma must be ready with their leadership to make sure the production will not drop, and should even be increased," said Defence Minister Sjafrie Sjamsoeddin, who is leading the task force set up by President Prabowo Subianto to identify illegal plantations in designated forest areas.
The plantations being given to Agrinas were part of an area of around 1 million hectares the task force has confiscated.
Authorities will go through a verification process for the rest of the area and aim to hand over more plantations to Agrinas, Sjafrie told reporters.
If Agrinas is given control of all 1 million hectares, it will become the biggest plantation company in the country.
The transfer of plantations to Agrinas could affect plant care which could in turn impact palm oil output this year, Eddy Martono, chairman of Indonesia's largest palm oil association GAPKI, said.
"Since there is a change in ownership, the previous owner would no longer continue plant care including fertilizer application," he added. Reuters
---------
Indonesia to Use 1 Million African Weevils to Spur Palm Output
(Bloomberg) -- Indonesia is betting on tiny bugs from Africa to help boost its palm oil production, as the broader sector grapples with tightening supply that threatens to keep prices elevated and add to food inflation.
The world’s top grower is planning to introduce around 1 million of the weevils at some plantations this year to improve pollination and fruit development. Three species collected from Tanzania are expected to arrive at a facility in North Sumatra next month for a series of tests before they are released.
The hope is the African weevils will help revive production growth after years of stalling output, which stems from old trees that some growers are reluctant to replant due to the extended time it takes for them to fruit. Constrained supply, including from the second-biggest producer, Malaysia, has contributed to palm relinquishing its status as the world’s cheapest vegetable oil to soyoil.
Adding to the problem: Indonesia now wants to expand its biofuel program, meaning more palm oil will be diverted to local supply rather than used for export. That’s put the insect initiative at a crucial time.
‘Fresh Batch’
Indonesia and Malaysia’s palm industries have ballooned over recent decades, often at the cost of large swathes of native jungle and forests. The two now account for around 85% of global supply of the most widely used vegetable oil, which can be found in products from chocolate to cosmetics and biofuel. Bloomberg
---------
Used cooking oil now main commodity in production of sustainable aviation fuel
Minister of Natural Resources and Environmental Sustainability Nik Nazmi Nik Ahmad said with used cooking oil being base material in the production of sustainable aviation fuel it helps address environmental pollution.
KUALA LUMPUR (March 27): Used cooking oil has become an important commodity as it can be used as a base material for the production of sustainable aviation fuel (SAF), which has low carbon emissions.
Minister of Natural Resources and Environmental Sustainability Nik Nazmi Nik Ahmad said that, in addition, it also helps address environmental pollution.
"Previously, used cooking oil was usually just disposed of, causing pollution to waterways and rivers. However, these days, used cooking oil is being used as the base material for the production of SAF.
"In years to come, sustainable aviation fuel is expected to become a mandatory requirement internationally. As such, the collection and recycling of used cooking oil not only helps prevent environmental pollution but also contributes to reducing carbon emissions in the aviation sector, which is one of the sectors with the highest carbon emission rates,” he said.
He said this when met at the programme to collect used cooking oil at the Taman Setapak Jaya Ramadan Bazaar organised by FatHopes Energy Sdn Bhd, in collaboration with Eko Setiawangsa here on Wednesday. It was also attended by FatHopes Energy chief executive officer Vinesh Sinha.
Meanwhile, Vinesh Sinha said the aviation sector is the most difficult to decarbonise due to the lack of viable alternatives.
“Whereas in road transport, multiple options such as electrification and hydrogen are available. As a Malaysian company, we believe it is our responsibility to help solve the world's biggest challenges," he said. The Edge
---------
SAF registry to be operated by the Civil Aviation Decarbonisation Organisation
The International Air Transport Association (IATA) has established the Civil Aviation Decarbonisation Organisation (CADO) to manage the IATA-developed Sustainable Aviation Fuel (SAF) Registry when it is released.
“CADO will turbo-charge the imminent launch of the IATA-developed SAF Registry.
“Its mandate is to manage the SAF Registry as a separate entity from IATA with an open and global approach that supports the scrutiny needed to build trust among all stakeholders.
“In fact, the door is open for any stakeholder in the SAF value chain, including governments, to join CADO.
“This inclusive approach should also be a force for the harmonisation of the principles on which all SAF registries operate,” said Marie Owens Thomsen, IATA’s senior vice-president sustainability and chief economist.
“The SAF Registry is a critical piece of market infrastructure that is indispensable in building a global, transparent and liquid global market for SAF.
“The industry’s commitment to build the Registry and establish CADO to manage it should inspire governments, fossil fuel producers, and investors to engage in the SAF market with commensurate vigour. Ramping-up SAF production is the common goal and the structure we are putting in place with CADO is an important step in moving decarbonisation forward,” said Willie Walsh, IATA’s director general. Biofuels News
---------
India aims to increase oil seed production to 70 million tonnes by 2031
The National Mission on Edible Oils – Oilseeds has been launched with an outlay of ₹10,103.38 crore to make India self-reliant in edible oil production, says Union Minister
The Union government has launched National Mission on Edible Oils–Oilseeds (NMEO-OS) with an outlay of Rs 10,103.38 crore to boost the domestic oilseed production to 70 million tonnes by 2030-31 from the current 39 million tonnes, Minister of State for Consumer Affairs, Food & Public Distribution Nimuben Jayantibhai Bambhaniya has said in Parliament.
In response to a question posed by Nellore MP Vemireddy Prabhakar Reddy, Ms. Bambhaniya said, “Around 57% of edible oil requirement is met through imports as the domestic production is unable to meet the demand. The NMEO-OS aims to enhance the production of key primary oilseed crops such as rapeseed-mustard, groundnut, soyabean, sunflower and sesamum, as well as increasing its collection and extraction efficiency from secondary sources.” The Hindu
---------
Can RSPO certifications reduce efficiency?
26-Mar-2025 by Augustus Bambridge-Sutton
A new study suggests that certifications may reduce palm oil coverage
https://www.foodnavigator.com/Article/2025/03/26/rspo-certification-makes-farms-less-efficient-study-says/
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March 25, 2025
Indonesia unlikely to back down on B40 biodiesel mandate, helping sustain elevated palm oil prices, says RHB
KUALA LUMPUR (March 25): Indonesia will likely charge ahead with its biodiesel mandate, which will keep palm oil prices elevated this year as supply in the market shrinks, said RHB Research.
The government appears “determined” to roll out its B40 programme that requires a mix of 40% palm oil with 60% diesel, the research house said, following a meeting with the Indonesia Biofuel Producer Association. The mandate is expected to be implemented as soon as this month.
As supply tightens, with Indonesian palm oil exports expected to decline by 7% in 2025, “we believe this will continue to support CPO (crude palm oil) prices at higher levels in 2025,” RHB Research said.
The house kept the plantation sector on a “overweight” call, noting that its average 2025 CPO price per tonne forecast of RM4,300 is “conservative”, considering the year-to-date prices of around RM4,720.
Indonesia’s implementation of B40 is closely watched, as the programme is expected to soak up rising supply from the world’s biggest palm oil producer. Indonesia is collecting levies on palm oil to subsidise producers and bridge the price gap between biodiesel and fossil fuel.
Indonesia is also set to raise a levy on CPO from 7.5% currently to 10%, which RHB Research said is sufficient to subsidise the programme, as long as gas oil stays above US$57 per barrel.
Together with the provision of the subsidy to only the public service obligation segment, the levies will ensure that there would be enough funds to fully sustain B40, even in the light of falling crude oil prices, the house added. The Edge
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Growing biodiesel demand curbs Colombia palm oil exports
Colombian palm oil exports are expected to drop to 420,000 tonnes in 2024/25 due to growing domestic biodiesel demand, according to a report by the US Department of Agriculture (USDA).
First quarter exports from the world’s fourth largest palm oil producer – which produces almost 2M tonnes/year – fell despite an increase in both planted area and production, the USDA’s Foreign Agricultural Service (FAS) March report said.
The Colombian biodiesel blend rate has been increasing steadily since 2015 and is estimated at 12.5% in 2024, according to the Oilseeds: World Markets and Trade March 2025 report. Higher blending is supported by voluntary programmes allowing up to 20% biodiesel in cargo vehicles.
Exports as a percentage of production declined from over 40% in 2018/19 to a just over 20% in 2023/24, with destinations shifting, the report said.
An expansion of Colombia’s market share in Mexico was likely to be due to declining rapeseed oil imports from Canada, according to the report.
Colombia’s market share in the European Union (EU) declined due to declining palm oil consumption.
Meanwhile, Thailand’s palm oil exports had stabilised following a decade-long period of growth, the report said.
As the third largest palm oil producer behind Indonesia and Malaysia, Thailand accounts for 5% of global output, according to the report.
In the past decade, Thailand had increased palm oil production by 80% due to an expansion of planted area and its palm oil exports had risen twenty-fold to 800,000 tonnes, the USDA said.
Thailand’s exports of palm oil as a percentage of production grew to an average of 22% in the past five years, up from 8% in 2016-2020.
The increase in Thailand’s palm oil exports had been driven by increased demand from India, which had accounted for 80% of its shipments since 2017, the report said.
“Competitiveness of palm oil prices for export to India will be a key factor in Thailand’s palm oil export potential throughout 2025 as India looks towards lower-cost alternatives,” the USDA said. OFI Magazine
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Palm oil paradox: ‘Realistic’ approaches and not silver bullets needed in global vegetable oils marketOpens in new window
25-Mar-2025 by Pearly Neo
Markets worldwide need to put their faith in ‘realistic’ approaches for the vegetable oils market as opposed to seeking out silver bullets, as the stability of the global food supply hangs in the balance, according to industry experts.
https://www.foodnavigator-asia.com/Article/2025/03/25/palm-oil-paradox-realistic-approaches-and-not-silver-bullets-needed-in-global-vegetable-oils-market/
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New allegations of abuse against oil palm giant Socfin in Cameroon
On Feb. 17, 2025, they sent an open letter to Socapalm, and its parent companies Socfinaf and Socfin, in which Bolloré holds a stake, to demand access to their traditional lands. The letter was co-signed by some 60 environmental and human rights organizations from Cameroon and around the world.
Luxembourg-based holding company Socfin operates more than 58,000 hectares (143,000 acres) of oil palm and rubber plantations in Cameroon, through its subsidiaries Socapalm and Safacam, respectively. Almost everywhere it operates in the country, the company’s relationship with local communities bordering its plantations has been contentious.
The Earthworm Foundation (EF), an environmental consulting firm commissioned by Socfin to investigate accusations of serious human rights violations on plantations that the holding company controls in West Africa, Central Africa and Asia, published the latest in a series of reports on Feb. 14. The consultancy found grounds to uphold communities’ complaints about land grabbing, sexual abuse and the occupation of sacred sites in Socapalm plantations in Cameroon’s coastal areas of Edéa, Mbambou and Mbongo. Mongabay
Indonesia unlikely to back down on B40 biodiesel mandate, helping sustain elevated palm oil prices, says RHB
KUALA LUMPUR (March 25): Indonesia will likely charge ahead with its biodiesel mandate, which will keep palm oil prices elevated this year as supply in the market shrinks, said RHB Research.
The government appears “determined” to roll out its B40 programme that requires a mix of 40% palm oil with 60% diesel, the research house said, following a meeting with the Indonesia Biofuel Producer Association. The mandate is expected to be implemented as soon as this month.
As supply tightens, with Indonesian palm oil exports expected to decline by 7% in 2025, “we believe this will continue to support CPO (crude palm oil) prices at higher levels in 2025,” RHB Research said.
The house kept the plantation sector on a “overweight” call, noting that its average 2025 CPO price per tonne forecast of RM4,300 is “conservative”, considering the year-to-date prices of around RM4,720.
Indonesia’s implementation of B40 is closely watched, as the programme is expected to soak up rising supply from the world’s biggest palm oil producer. Indonesia is collecting levies on palm oil to subsidise producers and bridge the price gap between biodiesel and fossil fuel.
Indonesia is also set to raise a levy on CPO from 7.5% currently to 10%, which RHB Research said is sufficient to subsidise the programme, as long as gas oil stays above US$57 per barrel.
Together with the provision of the subsidy to only the public service obligation segment, the levies will ensure that there would be enough funds to fully sustain B40, even in the light of falling crude oil prices, the house added. The Edge
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Growing biodiesel demand curbs Colombia palm oil exports
Colombian palm oil exports are expected to drop to 420,000 tonnes in 2024/25 due to growing domestic biodiesel demand, according to a report by the US Department of Agriculture (USDA).
First quarter exports from the world’s fourth largest palm oil producer – which produces almost 2M tonnes/year – fell despite an increase in both planted area and production, the USDA’s Foreign Agricultural Service (FAS) March report said.
The Colombian biodiesel blend rate has been increasing steadily since 2015 and is estimated at 12.5% in 2024, according to the Oilseeds: World Markets and Trade March 2025 report. Higher blending is supported by voluntary programmes allowing up to 20% biodiesel in cargo vehicles.
Exports as a percentage of production declined from over 40% in 2018/19 to a just over 20% in 2023/24, with destinations shifting, the report said.
An expansion of Colombia’s market share in Mexico was likely to be due to declining rapeseed oil imports from Canada, according to the report.
Colombia’s market share in the European Union (EU) declined due to declining palm oil consumption.
Meanwhile, Thailand’s palm oil exports had stabilised following a decade-long period of growth, the report said.
As the third largest palm oil producer behind Indonesia and Malaysia, Thailand accounts for 5% of global output, according to the report.
In the past decade, Thailand had increased palm oil production by 80% due to an expansion of planted area and its palm oil exports had risen twenty-fold to 800,000 tonnes, the USDA said.
Thailand’s exports of palm oil as a percentage of production grew to an average of 22% in the past five years, up from 8% in 2016-2020.
The increase in Thailand’s palm oil exports had been driven by increased demand from India, which had accounted for 80% of its shipments since 2017, the report said.
“Competitiveness of palm oil prices for export to India will be a key factor in Thailand’s palm oil export potential throughout 2025 as India looks towards lower-cost alternatives,” the USDA said. OFI Magazine
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Palm oil paradox: ‘Realistic’ approaches and not silver bullets needed in global vegetable oils marketOpens in new window
25-Mar-2025 by Pearly Neo
Markets worldwide need to put their faith in ‘realistic’ approaches for the vegetable oils market as opposed to seeking out silver bullets, as the stability of the global food supply hangs in the balance, according to industry experts.
https://www.foodnavigator-asia.com/Article/2025/03/25/palm-oil-paradox-realistic-approaches-and-not-silver-bullets-needed-in-global-vegetable-oils-market/
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New allegations of abuse against oil palm giant Socfin in Cameroon
- For several years, coastal communities in Edéa, Cameroon, have been campaigning for the return of land they say Socapalm, a subsidiary of Luxembourg-based Socfin, illegally seized from them.
- Now a series of reports published by environmental consultancy the Earthworm Foundation in February have substantiated new allegations land grabbing and of sexual harassment on Socapalm’s oil palm plantations.
- The Socfin group requested Earthworm’s investigations of its subsidiaries’ operations in Cameroon and elsewhere; following the release of the latest findings, the group has announced the launch of quarterly action plans aimed at addressing the rights violations.
- Financial institutions that have backed Socfin declined to say how they will in their turn respond to findings that show that guidelines for ethical investment have not been effective across Socfin’s operations in West and Central Africa, as well as Asia.
On Feb. 17, 2025, they sent an open letter to Socapalm, and its parent companies Socfinaf and Socfin, in which Bolloré holds a stake, to demand access to their traditional lands. The letter was co-signed by some 60 environmental and human rights organizations from Cameroon and around the world.
Luxembourg-based holding company Socfin operates more than 58,000 hectares (143,000 acres) of oil palm and rubber plantations in Cameroon, through its subsidiaries Socapalm and Safacam, respectively. Almost everywhere it operates in the country, the company’s relationship with local communities bordering its plantations has been contentious.
The Earthworm Foundation (EF), an environmental consulting firm commissioned by Socfin to investigate accusations of serious human rights violations on plantations that the holding company controls in West Africa, Central Africa and Asia, published the latest in a series of reports on Feb. 14. The consultancy found grounds to uphold communities’ complaints about land grabbing, sexual abuse and the occupation of sacred sites in Socapalm plantations in Cameroon’s coastal areas of Edéa, Mbambou and Mbongo. Mongabay
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March 24, 2025
Palm oil imports into Europe fall
The EU imported significantly less palm oil between July 2024 and early March 2025 than in the same period a year earlier, reflecting an overall decline in intra-community consumption.
According to latest data from the EU Commission, the Union received just under 1.9 million tonnes of palm oil from abroad between 1 July 2024 and 6 March 2025, which represents a sharp decline compared to the 2.4 million tonnes received during the same period the previous year.
Between July 2022 and March 2023, EU-27 palm oil imports had still totalled around 2.8 million tonnes.
Indonesia remains the leading supplier, with 608,100 tonnes. However, the country's deliveries between July and early March dropped 23% year-on-year.
Imports from Malaysia, the second largest supplier, declined around 30 per cent to 426,000 tonnes. According to research by Agrarmarkt Informations-Gesellschaft, the slowdown in shipments from Guatemala was even sharper, at 37%.
Papua New Guinea was the only country of origin to marginally increase its delivery volumes during the stated period.
The Union zur Förderung von Oel- und Proteinpflanzen (UFOP) attributes the decline in palm oil imports primarily to the expiration of the EU Renewable Energy Directive (RED II) provision allowing biofuels from palm oil to be credited, which is set to end by 2030.
Furthermore, the association has underlined that biodiesel supply in Germany - and consequently the EU - is rising due to the double counting of biofuels from certain waste oils towards greenhouse gas reduction obligations.
Virtual and creditable previous-year GHG reduction quotas are rushing physical volumes from Germany into the EU market.
According to UFOP, this trend is also reflected in the surplus of biodiesel exports from Germany, which rose from 1.27 million tonnes in 2023 to 1.62 million tonnes. Biofuels News
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Sweden and Cameroon partner for deforestation-free supply chains
In March, representatives from SEI, SAILD and Chalmers signed a collaboration agreement for sustainable development in Cameroon. The aim of this new collaboration is to advance sustainability concerns for deforestation-free landscapes and to ensure fairness and transparency in the countries supply chains.
Reducing supply-chain risks in Cameroon
Cameroon is a significant producer and exporter of agricultural products such as palm oil, cocoa, coffee, rubber, and soy. As a result, the country is directly impacted by the EU’s Regulation on Deforestation-Free Products , adopted in June 2023. The regulation aims to minimize the risk of products linked to deforestation and natural resource loss entering the European market, while promoting demand for products that are sustainably sourced.
The agreement, signed by researchers and representatives from SEI, SAILD, and Chalmers University, is part of the new project titled “Building an Evidence Base for Deforestation-Free Landscapes.” The project’s goal is to develop robust evidence to support deforestation-free landscapes in Cameroon.
To achieve this, the partners will jointly conduct a series of research studies involving key stakeholders. SEI
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Indonesian diplomats, scientists underscore need for boosting oil palm cultivation in Pakistan
HYDERABAD: Indonesian diplomats and Pakistani scientists have underscored the urgent need to boost local oil palm cultivation to reduce the country’s heavy reliance on imported edible oil.
With Pakistan currently importing 92% of its edible oil, costing approximately $4-5 billion annually, the experts emphasized that cultivating at least 60,000 acres of oil palm could attract an estimated investment of $30 million and significantly cut the import bill.
A high-level Indonesian delegation, led by Acting Consul General Teguh Wiwiek and Dr. Ahmad Syofyan, Consul for Economic Affairs, visited Sindh Agriculture University (SAU) Tandojam to explore avenues for joint research and technical collaboration. The delegation reviewed the progress of the SAU-DALDA Oil Palm Pilot Project experimental plantation at the university’s Latif Experimental Farm and engaged in discussions with SAU Vice Chancellor Prof. Dr. Altaf Ali Siyal and other senior faculty members. Brecorder
Palm oil imports into Europe fall
The EU imported significantly less palm oil between July 2024 and early March 2025 than in the same period a year earlier, reflecting an overall decline in intra-community consumption.
According to latest data from the EU Commission, the Union received just under 1.9 million tonnes of palm oil from abroad between 1 July 2024 and 6 March 2025, which represents a sharp decline compared to the 2.4 million tonnes received during the same period the previous year.
Between July 2022 and March 2023, EU-27 palm oil imports had still totalled around 2.8 million tonnes.
Indonesia remains the leading supplier, with 608,100 tonnes. However, the country's deliveries between July and early March dropped 23% year-on-year.
Imports from Malaysia, the second largest supplier, declined around 30 per cent to 426,000 tonnes. According to research by Agrarmarkt Informations-Gesellschaft, the slowdown in shipments from Guatemala was even sharper, at 37%.
Papua New Guinea was the only country of origin to marginally increase its delivery volumes during the stated period.
The Union zur Förderung von Oel- und Proteinpflanzen (UFOP) attributes the decline in palm oil imports primarily to the expiration of the EU Renewable Energy Directive (RED II) provision allowing biofuels from palm oil to be credited, which is set to end by 2030.
Furthermore, the association has underlined that biodiesel supply in Germany - and consequently the EU - is rising due to the double counting of biofuels from certain waste oils towards greenhouse gas reduction obligations.
Virtual and creditable previous-year GHG reduction quotas are rushing physical volumes from Germany into the EU market.
According to UFOP, this trend is also reflected in the surplus of biodiesel exports from Germany, which rose from 1.27 million tonnes in 2023 to 1.62 million tonnes. Biofuels News
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Sweden and Cameroon partner for deforestation-free supply chains
In March, representatives from SEI, SAILD and Chalmers signed a collaboration agreement for sustainable development in Cameroon. The aim of this new collaboration is to advance sustainability concerns for deforestation-free landscapes and to ensure fairness and transparency in the countries supply chains.
Reducing supply-chain risks in Cameroon
Cameroon is a significant producer and exporter of agricultural products such as palm oil, cocoa, coffee, rubber, and soy. As a result, the country is directly impacted by the EU’s Regulation on Deforestation-Free Products , adopted in June 2023. The regulation aims to minimize the risk of products linked to deforestation and natural resource loss entering the European market, while promoting demand for products that are sustainably sourced.
The agreement, signed by researchers and representatives from SEI, SAILD, and Chalmers University, is part of the new project titled “Building an Evidence Base for Deforestation-Free Landscapes.” The project’s goal is to develop robust evidence to support deforestation-free landscapes in Cameroon.
To achieve this, the partners will jointly conduct a series of research studies involving key stakeholders. SEI
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Indonesian diplomats, scientists underscore need for boosting oil palm cultivation in Pakistan
HYDERABAD: Indonesian diplomats and Pakistani scientists have underscored the urgent need to boost local oil palm cultivation to reduce the country’s heavy reliance on imported edible oil.
With Pakistan currently importing 92% of its edible oil, costing approximately $4-5 billion annually, the experts emphasized that cultivating at least 60,000 acres of oil palm could attract an estimated investment of $30 million and significantly cut the import bill.
A high-level Indonesian delegation, led by Acting Consul General Teguh Wiwiek and Dr. Ahmad Syofyan, Consul for Economic Affairs, visited Sindh Agriculture University (SAU) Tandojam to explore avenues for joint research and technical collaboration. The delegation reviewed the progress of the SAU-DALDA Oil Palm Pilot Project experimental plantation at the university’s Latif Experimental Farm and engaged in discussions with SAU Vice Chancellor Prof. Dr. Altaf Ali Siyal and other senior faculty members. Brecorder
March 23, 2025
Indonesia intensifies clean energy, EV cooperation with South Korea
Jakarta (ANTARA) - Indonesia is enhancing cooperation with South Korea in the clean energy and electric vehicle (EV) sector to help achieve its target of reducing greenhouse gas emissions by 31.89 percent by 2030.
Coordinating Minister for Economic Affairs Airlangga Hartarto met with Dong Choon Kim, Vice President of LG Chem and President of LG Chem's Advanced Materials Company, and his delegation in Jakarta on Friday to accelerate collaboration.
"The LG Group's support for the development of the EV ecosystem and clean energy in Indonesia is highly valued, and we hope to strengthen this partnership," Hartarto said in a statement.
Hartarto and Kim acknowledged that despite challenges such as declining global demand for EVs, there remains significant potential for the EV ecosystem's growth in Indonesia.
Kim expressed appreciation for the Indonesian government's long-standing support for LG Group, which has been operating in the country’s manufacturing sector for years.
"For us, Indonesia will always be a strategic partner for LG Chem, especially in the green industry sector," he said.
He also highlighted LG Chem’s role in the global EV supply chain, including its collaboration with LG Energy Solution and Hyundai to build an EV battery cell factory in Karawang, West Java.
The factory is being constructed in two phases: the first, with a capacity of 10 gigawatt-hours (GWh), was completed in 2024, while the second, with a capacity of 20 GWh, is currently underway.
LG Chem also praised the Indonesian government's support for the grand package plan to accelerate investment in the sector.
Beyond the EV sector, LG Chem proposed collaborating with Indonesia on biodegradable plastics by providing its technology.
Hartarto welcomed the proposal, reaffirming the government’s commitment to attracting investment in various clean energy projects.
One key initiative is the plan to process palm oil into sustainable aviation fuel (SAF), an area where Indonesia holds strong potential.
LG Chem, which recently developed SAF production in South Korea, expressed interest in collaborating on SAF development in Indonesia. Antara News
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Response of the Deputy Minister of Human Rights on the PSN Case
The Deputy Minister of Human Rights, Mugiyanto Sipin, responded to reports from victims of the National Strategic Project (PSN) during the Merauke Solidarity Consolidation event on March 14, 2025. Mugiyanto stated that the Ministry of Human Rights would ensure the enforcement of human rights. He also mentioned that the ministry would convey input from the public and coordinate with other ministries and agencies related to the PSN program.
The Merauke Solidarity Consolidation event was held at the Petrus Vertenten MSC Center, Jalan Raya Cigombong, Kelapa Lima Village, Merauke District, South Papua, from March 11 to 14, 2025. The event was attended by more than 250 participants, including representatives from NGOs and indigenous communities affected by PSN from across Indonesia. Among the NGOs present were Bentala Pusaka, YLBHI, Walhi, the Indigenous Peoples Alliance of the Archipelago (AMAN), Trend Asia, KPA, and LBH.
Representatives of affected communities included those impacted by the food estate project in North Sumatra, Central Kalimantan, Keerom-Papua, Merauke, and Mappi in South Papua. Other affected communities included those impacted by the Rempang Eco City project in the Riau Islands and the Nusantara Capital City (IKN) project in East Kalimantan.
Additionally, there were communities affected by the Poco Leok geothermal project in East Nusa Tenggara, the extractive industry of energy plantations and bioenergy in Jambi, as well as victims of PSN in Fakfak and Teluk Bintuni in West Papua and the expansion of palm oil plantations throughout Papua.
Merauke, as the host of the consolidation event, is currently facing the expansion of a PSN project involving the clearing of 2 million hectares of land. This project, initiated during President Joko Widodo's administration, is now being continued by President Prabowo Subianto. The massive land clearing has had a broad impact on indigenous communities and threatens the sustainability of Papua's forests. Tempo.Witness
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Greenpeace says Fonterra's palm kernel supply chain tainted by connections to deforestation
Greenpeace says Fonterra's palm kernel supply chain is tainted by connections to deforestation in Southeast Asia, as new evidence highlights New Zealand's major exporters to illegal plantations.
Two major exporters of palm kernel to New Zealand have been found to source kernel from illegal operations in Indonesia's Rawa Singkil Wildlife Reserve in Sumatra.
Greenpeace Aotearoa agriculture campaigner Sinéad Deighton-O'Flynn said the illegal mills have caused deforestation in the reserve, with dire consequences for critically endangered wildlife.
"The Leuser ecosystem is a biodiversity hotspot. It's home to various critically endangered animals, like the sumatran orangutan, tigers, and pigmy elephants. But we also know that hundreds of hectares of this forest will be cut down, replaced with palm trees, to make palm oil and palm kernel, and some of that has likely entered the New Zealand dairy supply supply."
Palm kernel - a palm oil byproduct - is used as feed for dairy cattle in New Zealand, with two million tonnes of it being imported every year from Southeast Asia, making New Zealand the world's biggest importer of palm kernel, Deighton-O'Flynn said. RNZ
Indonesia intensifies clean energy, EV cooperation with South Korea
Jakarta (ANTARA) - Indonesia is enhancing cooperation with South Korea in the clean energy and electric vehicle (EV) sector to help achieve its target of reducing greenhouse gas emissions by 31.89 percent by 2030.
Coordinating Minister for Economic Affairs Airlangga Hartarto met with Dong Choon Kim, Vice President of LG Chem and President of LG Chem's Advanced Materials Company, and his delegation in Jakarta on Friday to accelerate collaboration.
"The LG Group's support for the development of the EV ecosystem and clean energy in Indonesia is highly valued, and we hope to strengthen this partnership," Hartarto said in a statement.
Hartarto and Kim acknowledged that despite challenges such as declining global demand for EVs, there remains significant potential for the EV ecosystem's growth in Indonesia.
Kim expressed appreciation for the Indonesian government's long-standing support for LG Group, which has been operating in the country’s manufacturing sector for years.
"For us, Indonesia will always be a strategic partner for LG Chem, especially in the green industry sector," he said.
He also highlighted LG Chem’s role in the global EV supply chain, including its collaboration with LG Energy Solution and Hyundai to build an EV battery cell factory in Karawang, West Java.
The factory is being constructed in two phases: the first, with a capacity of 10 gigawatt-hours (GWh), was completed in 2024, while the second, with a capacity of 20 GWh, is currently underway.
LG Chem also praised the Indonesian government's support for the grand package plan to accelerate investment in the sector.
Beyond the EV sector, LG Chem proposed collaborating with Indonesia on biodegradable plastics by providing its technology.
Hartarto welcomed the proposal, reaffirming the government’s commitment to attracting investment in various clean energy projects.
One key initiative is the plan to process palm oil into sustainable aviation fuel (SAF), an area where Indonesia holds strong potential.
LG Chem, which recently developed SAF production in South Korea, expressed interest in collaborating on SAF development in Indonesia. Antara News
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Response of the Deputy Minister of Human Rights on the PSN Case
The Deputy Minister of Human Rights, Mugiyanto Sipin, responded to reports from victims of the National Strategic Project (PSN) during the Merauke Solidarity Consolidation event on March 14, 2025. Mugiyanto stated that the Ministry of Human Rights would ensure the enforcement of human rights. He also mentioned that the ministry would convey input from the public and coordinate with other ministries and agencies related to the PSN program.
The Merauke Solidarity Consolidation event was held at the Petrus Vertenten MSC Center, Jalan Raya Cigombong, Kelapa Lima Village, Merauke District, South Papua, from March 11 to 14, 2025. The event was attended by more than 250 participants, including representatives from NGOs and indigenous communities affected by PSN from across Indonesia. Among the NGOs present were Bentala Pusaka, YLBHI, Walhi, the Indigenous Peoples Alliance of the Archipelago (AMAN), Trend Asia, KPA, and LBH.
Representatives of affected communities included those impacted by the food estate project in North Sumatra, Central Kalimantan, Keerom-Papua, Merauke, and Mappi in South Papua. Other affected communities included those impacted by the Rempang Eco City project in the Riau Islands and the Nusantara Capital City (IKN) project in East Kalimantan.
Additionally, there were communities affected by the Poco Leok geothermal project in East Nusa Tenggara, the extractive industry of energy plantations and bioenergy in Jambi, as well as victims of PSN in Fakfak and Teluk Bintuni in West Papua and the expansion of palm oil plantations throughout Papua.
Merauke, as the host of the consolidation event, is currently facing the expansion of a PSN project involving the clearing of 2 million hectares of land. This project, initiated during President Joko Widodo's administration, is now being continued by President Prabowo Subianto. The massive land clearing has had a broad impact on indigenous communities and threatens the sustainability of Papua's forests. Tempo.Witness
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Greenpeace says Fonterra's palm kernel supply chain tainted by connections to deforestation
Greenpeace says Fonterra's palm kernel supply chain is tainted by connections to deforestation in Southeast Asia, as new evidence highlights New Zealand's major exporters to illegal plantations.
Two major exporters of palm kernel to New Zealand have been found to source kernel from illegal operations in Indonesia's Rawa Singkil Wildlife Reserve in Sumatra.
Greenpeace Aotearoa agriculture campaigner Sinéad Deighton-O'Flynn said the illegal mills have caused deforestation in the reserve, with dire consequences for critically endangered wildlife.
"The Leuser ecosystem is a biodiversity hotspot. It's home to various critically endangered animals, like the sumatran orangutan, tigers, and pigmy elephants. But we also know that hundreds of hectares of this forest will be cut down, replaced with palm trees, to make palm oil and palm kernel, and some of that has likely entered the New Zealand dairy supply supply."
Palm kernel - a palm oil byproduct - is used as feed for dairy cattle in New Zealand, with two million tonnes of it being imported every year from Southeast Asia, making New Zealand the world's biggest importer of palm kernel, Deighton-O'Flynn said. RNZ
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March 22, 2025
Three reasons why companies should take a landscape approach to tackle deforestation
Deforestation threatens supply chains, livelihoods, and the planet. Consumer goods companies cannot tackle it alone – but a landscape approach, fostering collaboration within key sourcing regions, offers a powerful solution. With COP30 approaching, now is the time for collective action. Didier Bergeret, sustainability director at The Consumer Goods Forum, offers his advice.
Protecting forests makes clear business sense for consumer goods companies. It is critical for ensuring a stable supply of commodities like palm oil and pulp and paper – and ultimately the longevity of businesses and livelihoods of consumers and suppliers.
While the global deforestation rate has slowed recently, we’re still losing 10 million hectares of forests annually, approximately the size of Portugal every year. Almost 75% of tropical rainforests have lost resilience, meaning they no longer have the ability to recover from events such as major wildfires and droughts. This is not just a huge threat for people and our planet: it is a global supply chain crisis.
We have reached a tipping point where we cannot just 'do-no-harm' and let forests restore themselves. We need something more proactive, more collaborative. This is where the landscape approach comes in.
A landscape approach refers to collaborations like setting up shared goals and knowledge sharing among stakeholders within a defined natural or social geography, such as a watershed (an area of land where all water leads into a common body of water), a biome (a distinct geographical region with specific climate, vegetation, and animal life) or company sourcing area.
By convening and engaging stakeholders to determine shared social, economic, and environmental goals, a landscape approach is vital to addressing the root causes of deforestation and involving local stakeholders and communities in solutions.
The sheer enormity and complexity of international supply chains means that no business can tackle deforestation alone. The challenge is shared, and the solutions must be too. Consumer goods companies are uniquely positioned to accelerate change through a landscape approach.
With less than eight months to go until COP30 in Belém, on the doorstep of the Amazon rainforest, here are three key reasons why consumer companies should prioritise a landscape approach to combat deforestation. Sian Yates/ FoodBev
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How sesame oil sparked a stir-fry revolution in ancient China as it displaced animal fats
When vegetable fats, especially sesame oil, replaced tallow and lard 1,500 years ago in China, people were able to ‘fry everything’, and did
Guests at a recent housewarming dinner were saying how delicious the butter was when someone mentioned margarine and remarked that the greasy abomination should be consigned to the kitchen bin of history.
I am old enough to remember a time when margarine, which is made from processed vegetable oils, was marketed as a “healthier” alternative to butter. We tried it for a while at home, but nobody liked it and we never bought another tub again.
As it happens, one of the dinner hosts is employed by a conglomerate whose major product is vegetable oils, in particular palm oil.
According to him, palm oil has been unfairly vilified, especially by Western media. So successful is the anti-palm oil campaign, waged in no small measure by edible-oil producers in Europe and North America, that any mention of palm oil immediately conjures up negative connotations for most people.
I am one of those people. But that evening, my friend made a compelling argument for palm oil, acknowledging the industry’s past excesses while enlightening us on its present-day commitment to ethical, sustainable practices.
Edible oil for cooking is the third of the “seven necessities” in traditional Chinese homes, the other six being firewood, rice, salt, sauce, vinegar and tea.
The first oils used for cooking in China were animal fats, mainly derived from domesticated animals such as cows, goats and pigs. The kings of the Zhou dynasty (1046-256BC) received as tribute from their feudal lords different types of animal fats according to the seasons.
There might have been some knowledge of extracting oils from plants in China’s ancient past, but it was during Han dynasty (202BC-AD220) rule – when sesame, whose seeds have a very high oil content, was first introduced to China, most likely from the Indian subcontinent – that the Chinese began to cultivate the plant and extract the seeds’ oil for cooking and other uses. Wee Kek Koon/ SCMP
---------
Rethinking Oil Palm on World Water Day: A Friend, Not Foe, to Groundwater Resources
As the world marks World Water Day, the conversation around water conservation and sustainable agricultural practices takes center stage. One of the most pressing challenges in modern farming is striking a balance between food security and responsible water usage. Amid these discussions, oil palm cultivation is often misunderstood, with widespread myths suggesting that it depletes groundwater resources. Addressing this myth, Dr. Suresh Motwani, Regional Head, Veg Oil Solidaridad and General Secretary, Asian Palm Oil Alliance, clarifies that the relationship between oil palm cultivation and water usage is often misrepresented in public discourse. A closer examination of scientific data reveals that oil palm relies predominantly on natural rainfall, with minimal impact on groundwater resources. This fact alone challenges the widespread misconception about oil palm's role in groundwater depletion.
Dependency on Natural Rainfall Oil palm crops primarily utilize rainwater – referred to as “green” water – throughout their growth, relying only minimally on “blue” water, which includes surface water and groundwater. In fact, groundwater accounts for merely 2% to 3.5% of oil palm’s total water needs,[1] and its usage only contributes less than 5% of total water usage.[2] This minimal reliance on groundwater ensures that natural reservoirs remain largely unaffected, addressing a major concern about groundwater depletion. As it is typically grown in regions with high annual rainfall, averaging around 3,500 mm, which is nearly three times its yearly water requirement of 1,300 mm[3], this natural alignment with high-rainfall regions ensures that oil palm cultivation does not strain local water resources, as its water needs are naturally met by precipitation.
Cultivation Strategy and Sustainability A crucial factor often overlooked in this discussion is the strategic placement of oil palm plantations. As discussed above, given that oil palm's annual water requirement is approximately 1,300 mm, this means that natural precipitation more than adequately meets the crop's water needs, eliminating any significant pressure on groundwater resources. Oil Palm’s natural adaptation to high-rainfall regions, combined with its efficient water use patterns, makes it a sustainable choice for oil production. This is particularly significant given the growing global demand for vegetable oils and the need for water-efficient agricultural practices. Additionally, the space between the plantations can be leveraged for intercropping which provides farmers an alternate source of income during the initial gestation period of the crop.
Comparative Analysis with Other Oil Crops Oil palm's remarkable water efficiency sets it apart from conventional crops. While rice requires 3,000-5,000 liters of water per kilogram of grain produced [4]and sugarcane needs 1,500-3,000 liters per kilogram of sugar,[5] oil palm uses a mere 300-350 liters per kilogram of oil produced[6]. Additionally, oil palm’s water footprint is considerably smaller than other oil-producing crops such as coconut, sunflower seeds, olives, and castor oil seeds. This indicates that oil palm is more efficient and conservative in its water usage, making it an environmentally sustainable choice for regions where rainfall is sufficient.
Scientific data shows that oil palm relies mostly on natural rainfall, using minimal groundwater and making it one of the most water-efficient crops. By aligning its water needs with high-rainfall regions, oil palm supports sustainable oil production without straining groundwater resources. In today’s world, where water conservation is critical, oil palm presents a balanced, eco-friendly choice for large-scale agriculture.
As the global population rises and demand for edible oils increases, water-efficient crops like oil palm present an opportunity for sustainable agricultural expansion. On World Water Day, it is crucial to shift the narrative from misconceptions to scientific realities—oil palm does not strain groundwater resources but rather thrives in regions where nature already provides ample rainfall. By adopting data-driven approaches, promoting rainfall-based irrigation practices, and encouraging sustainable farming models, India can enhance its oil palm production while safeguarding its precious water resources. Askari Jaffer/ The Hans India
----------
Scientists advocate urgent oil palm cultivation
KARACHI:
Indonesian diplomats and Pakistani scientists have called for urgently boosting local oil palm cultivation to reduce the country's heavy reliance on imported edible oil.
With Pakistan currently importing 92% of edible oil, costing approximately $4-5 billion annually, the experts emphasised that cultivating at least 60,000 acres with oil palm could attract an investment of $30 million and significantly cut the import bill.
A high-level Indonesian delegation, led by Acting Consul General Teguh Wiwiek and Consul for Economic Affairs Dr Ahmad Syofyan, visited the Sindh Agriculture University (SAU) Tandojam to explore avenues for joint research and technical collaboration.
The delegation reviewed the progress on experimental plantation under the SAU-Dalda Oil Palm Pilot Project at the university's Latif Experimental Farm and engaged in discussions with SAU Vice Chancellor Professor Dr Altaf Ali Siyal and other faculty members.
Altaf Ali Siyal said Pakistan's coastal regions, including Sindh and Balochistan, possessed ideal climatic conditions for oil palm cultivation. However, to further expand the scope, the SAU is conducting research in collaboration with Malaysia and other international partners to develop oil palm varieties suited for arid regions.
"The university is actively engaged in research at Latif Experimental Farms and at Kathore, near Karachi, in collaboration with various organisations to assess the commercial feasibility of oil palm," he said.
The experts agreed that strong cooperation with Indonesia, the world's leading palm oil producer, could help Pakistan adopt modern agronomic practices and enhance domestic edible oil production. TribunePK
Three reasons why companies should take a landscape approach to tackle deforestation
Deforestation threatens supply chains, livelihoods, and the planet. Consumer goods companies cannot tackle it alone – but a landscape approach, fostering collaboration within key sourcing regions, offers a powerful solution. With COP30 approaching, now is the time for collective action. Didier Bergeret, sustainability director at The Consumer Goods Forum, offers his advice.
Protecting forests makes clear business sense for consumer goods companies. It is critical for ensuring a stable supply of commodities like palm oil and pulp and paper – and ultimately the longevity of businesses and livelihoods of consumers and suppliers.
While the global deforestation rate has slowed recently, we’re still losing 10 million hectares of forests annually, approximately the size of Portugal every year. Almost 75% of tropical rainforests have lost resilience, meaning they no longer have the ability to recover from events such as major wildfires and droughts. This is not just a huge threat for people and our planet: it is a global supply chain crisis.
We have reached a tipping point where we cannot just 'do-no-harm' and let forests restore themselves. We need something more proactive, more collaborative. This is where the landscape approach comes in.
A landscape approach refers to collaborations like setting up shared goals and knowledge sharing among stakeholders within a defined natural or social geography, such as a watershed (an area of land where all water leads into a common body of water), a biome (a distinct geographical region with specific climate, vegetation, and animal life) or company sourcing area.
By convening and engaging stakeholders to determine shared social, economic, and environmental goals, a landscape approach is vital to addressing the root causes of deforestation and involving local stakeholders and communities in solutions.
The sheer enormity and complexity of international supply chains means that no business can tackle deforestation alone. The challenge is shared, and the solutions must be too. Consumer goods companies are uniquely positioned to accelerate change through a landscape approach.
With less than eight months to go until COP30 in Belém, on the doorstep of the Amazon rainforest, here are three key reasons why consumer companies should prioritise a landscape approach to combat deforestation. Sian Yates/ FoodBev
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How sesame oil sparked a stir-fry revolution in ancient China as it displaced animal fats
When vegetable fats, especially sesame oil, replaced tallow and lard 1,500 years ago in China, people were able to ‘fry everything’, and did
Guests at a recent housewarming dinner were saying how delicious the butter was when someone mentioned margarine and remarked that the greasy abomination should be consigned to the kitchen bin of history.
I am old enough to remember a time when margarine, which is made from processed vegetable oils, was marketed as a “healthier” alternative to butter. We tried it for a while at home, but nobody liked it and we never bought another tub again.
As it happens, one of the dinner hosts is employed by a conglomerate whose major product is vegetable oils, in particular palm oil.
According to him, palm oil has been unfairly vilified, especially by Western media. So successful is the anti-palm oil campaign, waged in no small measure by edible-oil producers in Europe and North America, that any mention of palm oil immediately conjures up negative connotations for most people.
I am one of those people. But that evening, my friend made a compelling argument for palm oil, acknowledging the industry’s past excesses while enlightening us on its present-day commitment to ethical, sustainable practices.
Edible oil for cooking is the third of the “seven necessities” in traditional Chinese homes, the other six being firewood, rice, salt, sauce, vinegar and tea.
The first oils used for cooking in China were animal fats, mainly derived from domesticated animals such as cows, goats and pigs. The kings of the Zhou dynasty (1046-256BC) received as tribute from their feudal lords different types of animal fats according to the seasons.
There might have been some knowledge of extracting oils from plants in China’s ancient past, but it was during Han dynasty (202BC-AD220) rule – when sesame, whose seeds have a very high oil content, was first introduced to China, most likely from the Indian subcontinent – that the Chinese began to cultivate the plant and extract the seeds’ oil for cooking and other uses. Wee Kek Koon/ SCMP
---------
Rethinking Oil Palm on World Water Day: A Friend, Not Foe, to Groundwater Resources
As the world marks World Water Day, the conversation around water conservation and sustainable agricultural practices takes center stage. One of the most pressing challenges in modern farming is striking a balance between food security and responsible water usage. Amid these discussions, oil palm cultivation is often misunderstood, with widespread myths suggesting that it depletes groundwater resources. Addressing this myth, Dr. Suresh Motwani, Regional Head, Veg Oil Solidaridad and General Secretary, Asian Palm Oil Alliance, clarifies that the relationship between oil palm cultivation and water usage is often misrepresented in public discourse. A closer examination of scientific data reveals that oil palm relies predominantly on natural rainfall, with minimal impact on groundwater resources. This fact alone challenges the widespread misconception about oil palm's role in groundwater depletion.
Dependency on Natural Rainfall Oil palm crops primarily utilize rainwater – referred to as “green” water – throughout their growth, relying only minimally on “blue” water, which includes surface water and groundwater. In fact, groundwater accounts for merely 2% to 3.5% of oil palm’s total water needs,[1] and its usage only contributes less than 5% of total water usage.[2] This minimal reliance on groundwater ensures that natural reservoirs remain largely unaffected, addressing a major concern about groundwater depletion. As it is typically grown in regions with high annual rainfall, averaging around 3,500 mm, which is nearly three times its yearly water requirement of 1,300 mm[3], this natural alignment with high-rainfall regions ensures that oil palm cultivation does not strain local water resources, as its water needs are naturally met by precipitation.
Cultivation Strategy and Sustainability A crucial factor often overlooked in this discussion is the strategic placement of oil palm plantations. As discussed above, given that oil palm's annual water requirement is approximately 1,300 mm, this means that natural precipitation more than adequately meets the crop's water needs, eliminating any significant pressure on groundwater resources. Oil Palm’s natural adaptation to high-rainfall regions, combined with its efficient water use patterns, makes it a sustainable choice for oil production. This is particularly significant given the growing global demand for vegetable oils and the need for water-efficient agricultural practices. Additionally, the space between the plantations can be leveraged for intercropping which provides farmers an alternate source of income during the initial gestation period of the crop.
Comparative Analysis with Other Oil Crops Oil palm's remarkable water efficiency sets it apart from conventional crops. While rice requires 3,000-5,000 liters of water per kilogram of grain produced [4]and sugarcane needs 1,500-3,000 liters per kilogram of sugar,[5] oil palm uses a mere 300-350 liters per kilogram of oil produced[6]. Additionally, oil palm’s water footprint is considerably smaller than other oil-producing crops such as coconut, sunflower seeds, olives, and castor oil seeds. This indicates that oil palm is more efficient and conservative in its water usage, making it an environmentally sustainable choice for regions where rainfall is sufficient.
Scientific data shows that oil palm relies mostly on natural rainfall, using minimal groundwater and making it one of the most water-efficient crops. By aligning its water needs with high-rainfall regions, oil palm supports sustainable oil production without straining groundwater resources. In today’s world, where water conservation is critical, oil palm presents a balanced, eco-friendly choice for large-scale agriculture.
As the global population rises and demand for edible oils increases, water-efficient crops like oil palm present an opportunity for sustainable agricultural expansion. On World Water Day, it is crucial to shift the narrative from misconceptions to scientific realities—oil palm does not strain groundwater resources but rather thrives in regions where nature already provides ample rainfall. By adopting data-driven approaches, promoting rainfall-based irrigation practices, and encouraging sustainable farming models, India can enhance its oil palm production while safeguarding its precious water resources. Askari Jaffer/ The Hans India
----------
Scientists advocate urgent oil palm cultivation
KARACHI:
Indonesian diplomats and Pakistani scientists have called for urgently boosting local oil palm cultivation to reduce the country's heavy reliance on imported edible oil.
With Pakistan currently importing 92% of edible oil, costing approximately $4-5 billion annually, the experts emphasised that cultivating at least 60,000 acres with oil palm could attract an investment of $30 million and significantly cut the import bill.
A high-level Indonesian delegation, led by Acting Consul General Teguh Wiwiek and Consul for Economic Affairs Dr Ahmad Syofyan, visited the Sindh Agriculture University (SAU) Tandojam to explore avenues for joint research and technical collaboration.
The delegation reviewed the progress on experimental plantation under the SAU-Dalda Oil Palm Pilot Project at the university's Latif Experimental Farm and engaged in discussions with SAU Vice Chancellor Professor Dr Altaf Ali Siyal and other faculty members.
Altaf Ali Siyal said Pakistan's coastal regions, including Sindh and Balochistan, possessed ideal climatic conditions for oil palm cultivation. However, to further expand the scope, the SAU is conducting research in collaboration with Malaysia and other international partners to develop oil palm varieties suited for arid regions.
"The university is actively engaged in research at Latif Experimental Farms and at Kathore, near Karachi, in collaboration with various organisations to assess the commercial feasibility of oil palm," he said.
The experts agreed that strong cooperation with Indonesia, the world's leading palm oil producer, could help Pakistan adopt modern agronomic practices and enhance domestic edible oil production. TribunePK
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March 21, 2025
International Day of Forests: How conserving and restoring forests will lead to a food-secure future
This year, under the theme “Forests and Foods,” the International Day of Forests highlights the vital link between forests and food security. From absorbing carbon from the atmosphere to providing sustenance and livelihoods, forests play a critical role in sustaining and feeding the world.
Why conservation and restoration matter
Forests are fundamental to life on Earth, serving as the planet’s lungs by absorbing carbon dioxide and releasing oxygen, regulating global temperatures and hydrological cycles and supporting biodiversity. However, the world has lost 178 million hectares of forest since 1990, an area the size of Libya.
Losing forests leads directly to increased carbon emissions, loss of biodiversity, the degradation of land and the disappearance of livelihoods in rural communities.
Forest conservation and restoration are essential to tackle these multiple challenges. This means preserving forests and plant and animal species diversity within them. It also includes reforestation – planting trees in previously forested areas, urban areas and farmland. WEForum
----------
Britain’s Hidden Deforestation Crisis: A Liverpool-Sized Footprint Every Year
Despite pledging environmental reforms, the UK continues to import commodities tied to deforestation at an alarming scale, according to a new analysis by Global Witness. Since the introduction of the 2021 Environment Act, Britain has amassed an annual deforestation footprint comparable in size to Liverpool, Cardiff, or Newcastle—a stark contradiction to its green commitments.
The legislation, introduced under the previous Conservative government, laid the groundwork for a "forest risk commodities" regulation, requiring companies to report and conduct due diligence on products like cattle (excluding dairy), cocoa, palm oil, and soybeans to ensure they aren’t sourced from illegally deforested land. However, the crucial secondary legislation needed to enforce these rules remains in limbo years later.
Without secondary legislation, the law remains little more than a symbolic gesture. The UK government has yet to define key aspects, such as:
Which commodities will be covered under the law?
Which businesses must comply (based on company size and supply chain impact)?
What penalties will be imposed for failure to comply?
Furthermore, there is no guarantee that the law will include human rights protections, such as ensuring supply chains are free from forced labor or the displacement of indigenous communities, says Alexandria Reid, Senior Global Policy Adviser at Global Witness.
Weaker Than the EU’s Law?
The UK's proposed policy falls short compared to the recently passed EU Deforestation Regulation. The EU law bans the importation of products linked to deforestation. At the same time, the UK's version only prohibits deforestation deemed illegal under local laws. This loophole could allow destruction to continue unchecked. Additionally, the UK proposal omits key commodities like coffee and rubber, which are included in the EU’s framework.
In 2024, the Environmental Audit Committee recommended strengthening the Environment Act to cover all deforestation, not just illegal cases. Reid welcomes this expansion and sees COP30, the UN climate summit in Brazil, as a crucial moment for the UK to finalize its secondary legislation.
With Labour now in power, environmentalists worry that the party’s focus on "slashing red tape" in pursuit of economic growth could undermine crucial protections for forests. The Department for Environment, Food & Rural Affairs has remained tight-lipped on when or how the legislation will be enforced.
Reid stresses the urgency of decisive action, warning that deforestation remains a major driver of climate change: “We know that deforestation is contributing massively to climate change through the release of carbon emissions” and that “carbon sequestration services are lost” when forests are chopped down.
With global temperatures rising and biodiversity in crisis, the question remains—will the UK finally take real action, or will it continue to fuel deforestation while hiding behind empty promises? Sustainable Times
----------
Indonesia Targets Completion of IEU-CEPA Negotiations in H1 2025
Indonesia is committed to completing negotiations on the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) in the first half of 2025. This agreement is expected to provide significant benefits to the Indonesian economy and improve trade relations with the European Union.
What is IEU-CEPA?
IEU-CEPA is a trade agreement that aims to strengthen economic cooperation between Indonesia and the European Union member states. Through this agreement, both parties hope to reduce trade barriers, attract investment, and increase market access for Indonesian products in Europe.
Economic Benefits : With the IEU-CEPA, Indonesia can expand its export market, especially in the leading commodity sectors such as food, beverages, and textile products. This is believed to boost national economic growth.
Better Investment : The IEU-CEPA also aims to create a better investment climate in Indonesia, by offering legal certainty and protection for foreign investors.
Steps Towards Completion
The Indonesian government, through the Ministry of Trade, has taken various proactive steps to speed up the negotiation process. Several meetings have been held to discuss important issues, including tariffs, regulations, and product standardization.
Negotiation Team : The Indonesian negotiation team consists of a number of experts and representatives from various sectors who are experienced in international trade, so it is hoped that they can reach a mutually beneficial agreement.
Open Dialogue : Indonesian officials also maintain good communication with European Union representatives to discuss each party's interests and find common ground. Kabarsebelas
---------
‘Sustainable’ palm oil firms continue illegal peatland clearing despite permit revocation
Local environmental NGOs Pantau Gambut and Kaoem Telapak investigated three companies operating in Central Kalimantan province on the island of Borneo: PT Agrindo Green Lestari (AGL), PT Citra Agro Abadi (CAA) and PT Bangun Cipta Mitra Perkasa (PT BCMP). Their findings implicate all three in illegal peatland conversion, deforestation and recurring fires.
Two of the three companies, AGL and CAA, are subsidiaries of the PT Ciliandry Anky Abadi, a privately held plantation company with a 120,000-hectare (300,000-acre) land bank in Central Kalimantan. Ciliandry Anky Abadi itself was identified as the single biggest deforesting palm oil company in Indonesia in 2023.
The AGL and CAA concessions cover a combined 18,224 hectares (45,032 acres) in Pulang Pisau district, overlapping with protected peatlands and high conservation value (HCV) areas. Around 6,000 hectares (15,000 acres) have been identified as critical orangutan habitat.
Satellite imagery from 2015 to 2023 reveals that most of the protected peatlands within CAA’s concessions have been converted into oil palm plantations, with planting beginning in 2022. As of 2023, 2,753 hectares (6,803 acres) of protected peat ecosystems had been cleared for planting — an area the size of 55,000 basketball courts.
These peatlands have protected status because of their deep peat layers that hold vast quantities of carbon, and also because of their high conservation value. But converting peatlands for planting requires digging canals to drain the waterlogged soil, releasing thousands of years’ worth of carbon emissions.
Field inspections in 2024 confirmed the construction of a network of canals across CAA’s concession, signaling further expansion into peatlands.
In the case of AGL, the report found 130 hectares (321 acres) of deforestation in its concession as of November 2023, overlapping with the village of Kasali Baru.
Despite these violations, both AGL and CAA hold certifications under Indonesia’s sustainable palm oil standard, the ISPO. The standard requires companies to protect natural forests and peatlands, which doesn’t appear to have been the case with AGL and CAA, according to Pantau Gambut advocacy and campaign manager Wahyu Perdana.
“What’s strange is how ISPO certificates could have been issued [for both concessions],” he said.
Operating plantations in protected peat areas also violates a 2016 government regulation on peatland protection, which limits activities in these ecosystems to research and education, Wahyu said.
Both companies have previously faced government sanctions for environmental violations. In 2017 and 2018, the Ministry of Environment and Forestry issued administrative sanctions against AGL and CAA due to recurring fires on their plantations. In 2018, the government ordered them to cease violations immediately and remedy the environmental damage they had caused.
In 2022, AGL and CAA were among the companies whose forestry permits were revoked by the ministry. However, it remains unclear whether the ministry has enforced the revocation.
AGL is also listed among palm oil companies that have developed plantations within forest areas without proper permits, said Ziadatunnisa, a campaigner at Kaoem Telapak. Mongabay
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TSE Group Joins SBTi to Achieve Net Zero Emissions 2050
SOUTH PAPUA – The forest, land, and agriculture (FLAG) sector is the second largest contributor of greenhouse gas emissions in the world after energy and industry, contributing 22%. However, this sector is also one of the most impacted by climate change. Realizing this, a number of companies in the FLAG sector have begun taking concrete steps to reduce their emissions, including the Tunas Sawa Erma (TSE) Group.
TSE Group, consisting of PT Tunas Sawa Erma, PT Berkat Cipta Abadi, PT Papua Agro Lestari in South Papua, and PT Gelora Mandiri Membangun in North Maluku, has officially joined the Science Based Targets initiative (SBTi). SBTi is a global program that helps companies set science-based greenhouse gas emission reduction targets. By joining the initiative since 2023, TSE Group is strengthening its commitment to achieving Net Zero Emissions by 2050.
TSE Group Director Luwy Leunufna said the company has drawn up a roadmap to achieve the target. Some of the main steps to be taken include the construction of Biogas Power Plants in five locations, the use of electric vehicles (EVs), the transition from biodiesel to biogas power and solar panels, and the replacement of chemical fertilizers with organic fertilizers. Infosawit
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Prabowo faces investor revolt over Indonesia’s economic path
(March 21): For months, President Prabowo Subianto’s moves to chip away at Indonesia’s long-established economic guardrails have stoked anxiety in markets. This week’s sudden rout suggests investor patience is wearing thin.
The ex-general has been causing unease with his populist spending measures, plans to dilute the central bank’s independence and aggressive policies against foreign businesses like Apple Inc. He fast-tracked laws to expand the role of the military too, triggering angry student protests in Jakarta.
The tipping point came on Tuesday, when rumours that Finance Minister Sri Mulyani Indrawati, who has kept a tight rein on spending during her cumulative 14 years in office, would resign. The stock market dropped the most in three years on the day, prompting government officials and Indrawati herself to come out, one by one, to dispel the speculation. Bank Indonesia was forced to step in to protect the rupiah, Asia’s worst performing currency this year.
The rumours have “renewed fears of reformists being purged and were a catalyst for exposing all the economic problems the country is facing”, said John Foo, founder of Valverde Investment Partners Pte.
While there’s been some reprieve in the markets since then, investors remain rattled by Prabowo’s policy moves, coming at a time when Southeast Asia’s biggest economy is also grappling with US President Donald Trump’s tariff threats and waning demand from China for raw materials.
op of mind for investors is the fiscal outlook. Once cited by Morgan Stanley as one of the “Fragile Five” markets prone to wild swings in foreign sentiment, Indonesia has steadily improved its credibility to investors thanks to prudent economic management that’s lifted its credit rating out of junk status.
Prabowo, 73, is now threatening to upend that trajectory. His policy steps since taking office in October could push the budget deficit closer to its legal limit of 3% of gross domestic product. He increased his cabinet to more than 100 from around 60 under his predecessor Joko Widodo. After a public outcry, he backtracked on hiking the value-added tax rate, a move which would’ve boosted government revenue.
He implemented a free lunch programme for students — a signature campaign pledge — that will cost US$30 billion (RM132.7 billion) a year, the equivalent of 14% of Indonesia’s entire 2024 budget. To pay for that, he slashed spending in other areas, like infrastructure projects and travel.
“People in the markets are concerned about economic policy making,” said Achmad Sukarsono, lead analyst for Indonesia at Control Risks. “They have seen that many policies — let’s just say — do not have sound economic grounding.”
Prabowo’s office didn’t immediately respond to a request for comment. The EdgeMY
International Day of Forests: How conserving and restoring forests will lead to a food-secure future
- Forests support global food systems by regulating water cycles, enriching soil, hosting pollinators and providing sustenance for billions of people.
- Conservation, agroforestry and sustainable land management can help reverse deforestation, improve agricultural productivity and mitigate carbon emissions.
- Governments, businesses and individuals must take collective action through policy advocacy, responsible sourcing and investment in sustainable practices to ensure forests continue sustaining people and the planet.
This year, under the theme “Forests and Foods,” the International Day of Forests highlights the vital link between forests and food security. From absorbing carbon from the atmosphere to providing sustenance and livelihoods, forests play a critical role in sustaining and feeding the world.
Why conservation and restoration matter
Forests are fundamental to life on Earth, serving as the planet’s lungs by absorbing carbon dioxide and releasing oxygen, regulating global temperatures and hydrological cycles and supporting biodiversity. However, the world has lost 178 million hectares of forest since 1990, an area the size of Libya.
Losing forests leads directly to increased carbon emissions, loss of biodiversity, the degradation of land and the disappearance of livelihoods in rural communities.
Forest conservation and restoration are essential to tackle these multiple challenges. This means preserving forests and plant and animal species diversity within them. It also includes reforestation – planting trees in previously forested areas, urban areas and farmland. WEForum
----------
Britain’s Hidden Deforestation Crisis: A Liverpool-Sized Footprint Every Year
Despite pledging environmental reforms, the UK continues to import commodities tied to deforestation at an alarming scale, according to a new analysis by Global Witness. Since the introduction of the 2021 Environment Act, Britain has amassed an annual deforestation footprint comparable in size to Liverpool, Cardiff, or Newcastle—a stark contradiction to its green commitments.
The legislation, introduced under the previous Conservative government, laid the groundwork for a "forest risk commodities" regulation, requiring companies to report and conduct due diligence on products like cattle (excluding dairy), cocoa, palm oil, and soybeans to ensure they aren’t sourced from illegally deforested land. However, the crucial secondary legislation needed to enforce these rules remains in limbo years later.
Without secondary legislation, the law remains little more than a symbolic gesture. The UK government has yet to define key aspects, such as:
Which commodities will be covered under the law?
Which businesses must comply (based on company size and supply chain impact)?
What penalties will be imposed for failure to comply?
Furthermore, there is no guarantee that the law will include human rights protections, such as ensuring supply chains are free from forced labor or the displacement of indigenous communities, says Alexandria Reid, Senior Global Policy Adviser at Global Witness.
Weaker Than the EU’s Law?
The UK's proposed policy falls short compared to the recently passed EU Deforestation Regulation. The EU law bans the importation of products linked to deforestation. At the same time, the UK's version only prohibits deforestation deemed illegal under local laws. This loophole could allow destruction to continue unchecked. Additionally, the UK proposal omits key commodities like coffee and rubber, which are included in the EU’s framework.
In 2024, the Environmental Audit Committee recommended strengthening the Environment Act to cover all deforestation, not just illegal cases. Reid welcomes this expansion and sees COP30, the UN climate summit in Brazil, as a crucial moment for the UK to finalize its secondary legislation.
With Labour now in power, environmentalists worry that the party’s focus on "slashing red tape" in pursuit of economic growth could undermine crucial protections for forests. The Department for Environment, Food & Rural Affairs has remained tight-lipped on when or how the legislation will be enforced.
Reid stresses the urgency of decisive action, warning that deforestation remains a major driver of climate change: “We know that deforestation is contributing massively to climate change through the release of carbon emissions” and that “carbon sequestration services are lost” when forests are chopped down.
With global temperatures rising and biodiversity in crisis, the question remains—will the UK finally take real action, or will it continue to fuel deforestation while hiding behind empty promises? Sustainable Times
----------
Indonesia Targets Completion of IEU-CEPA Negotiations in H1 2025
Indonesia is committed to completing negotiations on the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) in the first half of 2025. This agreement is expected to provide significant benefits to the Indonesian economy and improve trade relations with the European Union.
What is IEU-CEPA?
IEU-CEPA is a trade agreement that aims to strengthen economic cooperation between Indonesia and the European Union member states. Through this agreement, both parties hope to reduce trade barriers, attract investment, and increase market access for Indonesian products in Europe.
Economic Benefits : With the IEU-CEPA, Indonesia can expand its export market, especially in the leading commodity sectors such as food, beverages, and textile products. This is believed to boost national economic growth.
Better Investment : The IEU-CEPA also aims to create a better investment climate in Indonesia, by offering legal certainty and protection for foreign investors.
Steps Towards Completion
The Indonesian government, through the Ministry of Trade, has taken various proactive steps to speed up the negotiation process. Several meetings have been held to discuss important issues, including tariffs, regulations, and product standardization.
Negotiation Team : The Indonesian negotiation team consists of a number of experts and representatives from various sectors who are experienced in international trade, so it is hoped that they can reach a mutually beneficial agreement.
Open Dialogue : Indonesian officials also maintain good communication with European Union representatives to discuss each party's interests and find common ground. Kabarsebelas
---------
‘Sustainable’ palm oil firms continue illegal peatland clearing despite permit revocation
- Three palm oil companies in Indonesian Borneo, including subsidiaries of the country’s top deforesting firm in 2023, continue to clear protected peatlands and forests despite having their permits revoked.
- Despite also holding Indonesia’s sustainable palm oil certification, the ISPO, the companies have been found draining peatlands, deforesting, and expanding plantations in violation of environmental laws.
- The companies have faced multiple government sanctions, yet continue operations unchecked, highlighting Indonesia’s ongoing struggles with enforcing environmental regulations.
- Peatland destruction releases vast amounts of CO₂, contributing significantly to climate change; the report calls for stricter law enforcement; expanded deforestation regulations in the EU, a top export market; and better transparency in the palm oil sector.
Local environmental NGOs Pantau Gambut and Kaoem Telapak investigated three companies operating in Central Kalimantan province on the island of Borneo: PT Agrindo Green Lestari (AGL), PT Citra Agro Abadi (CAA) and PT Bangun Cipta Mitra Perkasa (PT BCMP). Their findings implicate all three in illegal peatland conversion, deforestation and recurring fires.
Two of the three companies, AGL and CAA, are subsidiaries of the PT Ciliandry Anky Abadi, a privately held plantation company with a 120,000-hectare (300,000-acre) land bank in Central Kalimantan. Ciliandry Anky Abadi itself was identified as the single biggest deforesting palm oil company in Indonesia in 2023.
The AGL and CAA concessions cover a combined 18,224 hectares (45,032 acres) in Pulang Pisau district, overlapping with protected peatlands and high conservation value (HCV) areas. Around 6,000 hectares (15,000 acres) have been identified as critical orangutan habitat.
Satellite imagery from 2015 to 2023 reveals that most of the protected peatlands within CAA’s concessions have been converted into oil palm plantations, with planting beginning in 2022. As of 2023, 2,753 hectares (6,803 acres) of protected peat ecosystems had been cleared for planting — an area the size of 55,000 basketball courts.
These peatlands have protected status because of their deep peat layers that hold vast quantities of carbon, and also because of their high conservation value. But converting peatlands for planting requires digging canals to drain the waterlogged soil, releasing thousands of years’ worth of carbon emissions.
Field inspections in 2024 confirmed the construction of a network of canals across CAA’s concession, signaling further expansion into peatlands.
In the case of AGL, the report found 130 hectares (321 acres) of deforestation in its concession as of November 2023, overlapping with the village of Kasali Baru.
Despite these violations, both AGL and CAA hold certifications under Indonesia’s sustainable palm oil standard, the ISPO. The standard requires companies to protect natural forests and peatlands, which doesn’t appear to have been the case with AGL and CAA, according to Pantau Gambut advocacy and campaign manager Wahyu Perdana.
“What’s strange is how ISPO certificates could have been issued [for both concessions],” he said.
Operating plantations in protected peat areas also violates a 2016 government regulation on peatland protection, which limits activities in these ecosystems to research and education, Wahyu said.
Both companies have previously faced government sanctions for environmental violations. In 2017 and 2018, the Ministry of Environment and Forestry issued administrative sanctions against AGL and CAA due to recurring fires on their plantations. In 2018, the government ordered them to cease violations immediately and remedy the environmental damage they had caused.
In 2022, AGL and CAA were among the companies whose forestry permits were revoked by the ministry. However, it remains unclear whether the ministry has enforced the revocation.
AGL is also listed among palm oil companies that have developed plantations within forest areas without proper permits, said Ziadatunnisa, a campaigner at Kaoem Telapak. Mongabay
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TSE Group Joins SBTi to Achieve Net Zero Emissions 2050
SOUTH PAPUA – The forest, land, and agriculture (FLAG) sector is the second largest contributor of greenhouse gas emissions in the world after energy and industry, contributing 22%. However, this sector is also one of the most impacted by climate change. Realizing this, a number of companies in the FLAG sector have begun taking concrete steps to reduce their emissions, including the Tunas Sawa Erma (TSE) Group.
TSE Group, consisting of PT Tunas Sawa Erma, PT Berkat Cipta Abadi, PT Papua Agro Lestari in South Papua, and PT Gelora Mandiri Membangun in North Maluku, has officially joined the Science Based Targets initiative (SBTi). SBTi is a global program that helps companies set science-based greenhouse gas emission reduction targets. By joining the initiative since 2023, TSE Group is strengthening its commitment to achieving Net Zero Emissions by 2050.
TSE Group Director Luwy Leunufna said the company has drawn up a roadmap to achieve the target. Some of the main steps to be taken include the construction of Biogas Power Plants in five locations, the use of electric vehicles (EVs), the transition from biodiesel to biogas power and solar panels, and the replacement of chemical fertilizers with organic fertilizers. Infosawit
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Prabowo faces investor revolt over Indonesia’s economic path
(March 21): For months, President Prabowo Subianto’s moves to chip away at Indonesia’s long-established economic guardrails have stoked anxiety in markets. This week’s sudden rout suggests investor patience is wearing thin.
The ex-general has been causing unease with his populist spending measures, plans to dilute the central bank’s independence and aggressive policies against foreign businesses like Apple Inc. He fast-tracked laws to expand the role of the military too, triggering angry student protests in Jakarta.
The tipping point came on Tuesday, when rumours that Finance Minister Sri Mulyani Indrawati, who has kept a tight rein on spending during her cumulative 14 years in office, would resign. The stock market dropped the most in three years on the day, prompting government officials and Indrawati herself to come out, one by one, to dispel the speculation. Bank Indonesia was forced to step in to protect the rupiah, Asia’s worst performing currency this year.
The rumours have “renewed fears of reformists being purged and were a catalyst for exposing all the economic problems the country is facing”, said John Foo, founder of Valverde Investment Partners Pte.
While there’s been some reprieve in the markets since then, investors remain rattled by Prabowo’s policy moves, coming at a time when Southeast Asia’s biggest economy is also grappling with US President Donald Trump’s tariff threats and waning demand from China for raw materials.
op of mind for investors is the fiscal outlook. Once cited by Morgan Stanley as one of the “Fragile Five” markets prone to wild swings in foreign sentiment, Indonesia has steadily improved its credibility to investors thanks to prudent economic management that’s lifted its credit rating out of junk status.
Prabowo, 73, is now threatening to upend that trajectory. His policy steps since taking office in October could push the budget deficit closer to its legal limit of 3% of gross domestic product. He increased his cabinet to more than 100 from around 60 under his predecessor Joko Widodo. After a public outcry, he backtracked on hiking the value-added tax rate, a move which would’ve boosted government revenue.
He implemented a free lunch programme for students — a signature campaign pledge — that will cost US$30 billion (RM132.7 billion) a year, the equivalent of 14% of Indonesia’s entire 2024 budget. To pay for that, he slashed spending in other areas, like infrastructure projects and travel.
“People in the markets are concerned about economic policy making,” said Achmad Sukarsono, lead analyst for Indonesia at Control Risks. “They have seen that many policies — let’s just say — do not have sound economic grounding.”
Prabowo’s office didn’t immediately respond to a request for comment. The EdgeMY
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March 19, 2025
Indonesia to raise palm oil export levy to 4.5% to 10%, official says
JAKARTA, March 18 (Reuters) - Indonesia will raise its palm oil export levy to between 4.5% and 10% of the crude palm oil reference price, up from 3% to 7.5%, to finance a mandated increase in the amount of the oil used in biodiesel, a plantation fund official said on Tuesday.
Indonesia raised the mandatory amount of palm oil in its biodiesel mix to 40% this year from 35%. It is studying increasing it to 50% in 2026, as well as a 3% blend for jet fuel next year, as it seeks to curb fuel imports.
Kabul Wijayanto, director at the Plantation Fund Agency, which is in charge of collecting and distributing the export levy, said authorities would impose the new rates three days after the regulation is issued.
Wijayanto said the regulation was being processed by the law ministry. The agency was expected to distribute 35.47 trillion rupiah ($2.15 billion) for the biodiesel subsidy this year. The increase in the crude palm oil levy to 10% from 7.5% was flagged by the government late last year, but has so far not been enacted. More refined palm oil products are charged lower levy rates. Reuters
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Apical Group Expands Palm Oil Plant In Padang To Boost Exports
The company's expansion aims to double production and support local economic growth in West Sumatra.
In a significant move to boost Indonesia's palm oil industry, Apical Group is expanding its Crude Palm Oil (CPO) processing plant in Padang, West Sumatra. The expansion, led by its subsidiary PT Padang Raya Cakrawala (PRC), aims to meet the growing export demands for CPO.
On March 18, 2025, Dodi Saputra, Head of PT Padang Raya Cakrawala, announced that the company's production target is set to double to 7,000 tons per day. Currently, the facility is processing 3,500 tons per day for exports. "With the current development, the production target can double from before," Dodi explained during a press conference. The groundbreaking for this expansion was completed in July 2024 at the PT PRC facility located in the Teluk Bayur area of Padang, with the aim of completing it by early 2026.
This substantial investment reflects Apical Group's commitment to the downstream development of the palm oil industry in Indonesia. Apical Group is not only one of the top five palm oil processors in the world but has also been operating in Indonesia for the past 15 years, contributing to the local economy.
Prama Yudha Amdan, the Head of Corporate Communication at Apical Group, emphasized the company's intent to collaborate with stakeholders and local communities. "We are ready to collaborate with all parties, stakeholders, and the community to continue providing positive contributions to the community, especially in West Sumatra," he said. ThePinnacleGazette
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A’Ibom Moves To Strengthen Palm Oil Traceability, Sustainability
…As Solidaridad inaugurates Inter-ministerial Committee
UYO – In its ongoing move to ensure a sustainable and traceable palm oil production in Nigeria, Solidaridad West Africa has inaugurated the Akwa Ibom State Palm Oil Traceability Inter-ministerial Committee.
The committee inaugurated at the end of a critical stakeholders meeting in Uyo on Tuesday, under the National Initiatives for Sustainable and Climate-Smart Oil Palm Smallholders (NISCOPs) aims at ensuring transparency, sustainability, and global competitiveness in the state’s oil palm industry.
Setting the tone for the meeting, Ernest Ita, Senior Programme Officer at Solidaridad West Africa, stressed the need for a traceability system that tracks palm oil along the value chain -from production to consumption. He warned that the absence of such a system has led to adulteration, quality decline, and loss of trust in the international market.
“Because a large quantity of production is not traceable, we have issues of adulteration, with people adding artificial coloring, leading to *poor-quality products. This lack of traceability also results in revenue loss since a significant volume of oil palm movements remains undocumented,” Ita said.
He further stressed that palm oil production is often linked to deforestation, a critical concern for the European Union’s deforestation implementation policy, which prohibits palm oil sourced from deforested areas from entering its markets.
“Smallholder farmers, who produce about 80% of Nigeria’s palm oil, are yet to fully adopt ethical and sustainable production methods. “If they do not transition to sustainable practices, our products will be shut out of the international market, and farmers will miss out on premium pricing,” he said.
To address these challenges, he advocated for climate-smart agriculture, urging farmers to convert already degraded lands rather than clearing forests for new plantations. IndependentNG
Indonesia to raise palm oil export levy to 4.5% to 10%, official says
JAKARTA, March 18 (Reuters) - Indonesia will raise its palm oil export levy to between 4.5% and 10% of the crude palm oil reference price, up from 3% to 7.5%, to finance a mandated increase in the amount of the oil used in biodiesel, a plantation fund official said on Tuesday.
Indonesia raised the mandatory amount of palm oil in its biodiesel mix to 40% this year from 35%. It is studying increasing it to 50% in 2026, as well as a 3% blend for jet fuel next year, as it seeks to curb fuel imports.
Kabul Wijayanto, director at the Plantation Fund Agency, which is in charge of collecting and distributing the export levy, said authorities would impose the new rates three days after the regulation is issued.
Wijayanto said the regulation was being processed by the law ministry. The agency was expected to distribute 35.47 trillion rupiah ($2.15 billion) for the biodiesel subsidy this year. The increase in the crude palm oil levy to 10% from 7.5% was flagged by the government late last year, but has so far not been enacted. More refined palm oil products are charged lower levy rates. Reuters
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Apical Group Expands Palm Oil Plant In Padang To Boost Exports
The company's expansion aims to double production and support local economic growth in West Sumatra.
In a significant move to boost Indonesia's palm oil industry, Apical Group is expanding its Crude Palm Oil (CPO) processing plant in Padang, West Sumatra. The expansion, led by its subsidiary PT Padang Raya Cakrawala (PRC), aims to meet the growing export demands for CPO.
On March 18, 2025, Dodi Saputra, Head of PT Padang Raya Cakrawala, announced that the company's production target is set to double to 7,000 tons per day. Currently, the facility is processing 3,500 tons per day for exports. "With the current development, the production target can double from before," Dodi explained during a press conference. The groundbreaking for this expansion was completed in July 2024 at the PT PRC facility located in the Teluk Bayur area of Padang, with the aim of completing it by early 2026.
This substantial investment reflects Apical Group's commitment to the downstream development of the palm oil industry in Indonesia. Apical Group is not only one of the top five palm oil processors in the world but has also been operating in Indonesia for the past 15 years, contributing to the local economy.
Prama Yudha Amdan, the Head of Corporate Communication at Apical Group, emphasized the company's intent to collaborate with stakeholders and local communities. "We are ready to collaborate with all parties, stakeholders, and the community to continue providing positive contributions to the community, especially in West Sumatra," he said. ThePinnacleGazette
----------
A’Ibom Moves To Strengthen Palm Oil Traceability, Sustainability
…As Solidaridad inaugurates Inter-ministerial Committee
UYO – In its ongoing move to ensure a sustainable and traceable palm oil production in Nigeria, Solidaridad West Africa has inaugurated the Akwa Ibom State Palm Oil Traceability Inter-ministerial Committee.
The committee inaugurated at the end of a critical stakeholders meeting in Uyo on Tuesday, under the National Initiatives for Sustainable and Climate-Smart Oil Palm Smallholders (NISCOPs) aims at ensuring transparency, sustainability, and global competitiveness in the state’s oil palm industry.
Setting the tone for the meeting, Ernest Ita, Senior Programme Officer at Solidaridad West Africa, stressed the need for a traceability system that tracks palm oil along the value chain -from production to consumption. He warned that the absence of such a system has led to adulteration, quality decline, and loss of trust in the international market.
“Because a large quantity of production is not traceable, we have issues of adulteration, with people adding artificial coloring, leading to *poor-quality products. This lack of traceability also results in revenue loss since a significant volume of oil palm movements remains undocumented,” Ita said.
He further stressed that palm oil production is often linked to deforestation, a critical concern for the European Union’s deforestation implementation policy, which prohibits palm oil sourced from deforested areas from entering its markets.
“Smallholder farmers, who produce about 80% of Nigeria’s palm oil, are yet to fully adopt ethical and sustainable production methods. “If they do not transition to sustainable practices, our products will be shut out of the international market, and farmers will miss out on premium pricing,” he said.
To address these challenges, he advocated for climate-smart agriculture, urging farmers to convert already degraded lands rather than clearing forests for new plantations. IndependentNG
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March 18, 2025
Indonesia preparing $487 million capital injection for state firm managing seized palm oil plantations
JAKARTA, March 18 (Reuters) - Indonesia is preparing about 8 trillion rupiah ($487.21 million) of capital injection for the new state firm Agrinas Palma Nusantara, senior finance ministry official Rionald Silaban said on Tuesday.
Agrinas, a state firm previously involved in construction that was converted into a palm oil company this year, will manage palm oil plantations confiscated as part of an ongoing corruption probe. Reuters
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First Resources unit inks deal for $439.4 million stake in Indonesian palm oil producer
SINGAPORE – First Resources’ majority-owned subsidiary Ciliandra Perkasa on March 18 entered a conditional shares purchase agreement to buy 3.1 billion shares or 91.2 per cent of the issued and paid-up capital of Austindo Nusantara Jaya for US$329.8 million (S$439.4 million).
The target company is listed on the Indonesia Stock Exchange (IDX), and is primarily engaged in the business of oil palm plantation.
It is also a holding company for various operating subsidiaries in the production and sale of palm oil and other sustainable food crops, as well as renewable energy.
First Resources noted that the proposed acquisition presents an opportunity for the group to expand its upstream oil palm plantation footprint and enhance feedstock availability for its growing downstream operations.
It will be funded by financing arrangements that the group will enter into with third parties.
Following the acquisition, the group’s planted area will increase by about 25 per cent, and its crop yield will also rise by 25 per cent to 1.25 million tonnes.
First Resources noted that the proposed acquisition presents an opportunity for the group to expand its upstream oil palm plantation footprint and enhance feedstock availability for its growing downstream operations.
It will be funded by financing arrangements that the group will enter into with third parties.
Following the acquisition, the group’s planted area will increase by about 25 per cent, and its crop yield will also rise by 25 per cent to 1.25 million tonnes. The Straits Times
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GAPKI Celebrates 44th Anniversary With A Call For Govt Support
JAKARTA – The Indonesian Palm Oil Association (GAPKI) celebrated its 44th anniversary on Thursday (06/03/2025) in Jakarta, with a call for the government to support the palm oil industries which play a significant role in the Indonesian economy.
GAPKI Chairman Eddy Martono said during the anniversary celebration that the palm oil industry is one of the major contributors of foreign exchange for Indonesia. “Even during the outbreak of Covid-19 pandemic, the palm oil industries could survive without any layoff, while other industries collapsed and have to cut the number of their workers to survive. It has shown the robustness of palm oil sector in weathering through the challenges of global economy.”
“Considering the important role of palm oil industries in Indonesian economy and in improving the public welfare, the government should support the palm oil industries with conducive policies,” said Eddy.
He said that the palm oil industries employ around 16.2 million people in Indonesia. “Indonesia is now facing a series of waves of layoffs in various economic sectors. Hopefully, it won’t happen in palm oil industries. So, we badly need supportive policies from the government to ensure the stability of our palm oil industries. We’ve seen that amid the uncertainty of global economy due trade wars and geopolitical tensions, the palm oil industries have proven its strong capacity to support our national economy,” he added.
Contribution To National Economy
Based on data from Statistics Indonesia (BPS) quoted from the official website of the Ministry of Finance, Indonesia’s economic growth during the third quarter of 2024 reached 4.95%. The agriculture and plantation sectors, including palm oil, saw a positive growth of 1.69%, indicating its important role in the economy. GAPKI
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Malaysia: New Business Plan Should Be Enforceable
Ensure Rights Protections for Indigenous Peoples
(Miri) – Malaysia should move swiftly to strengthen its proposed National Action Plan on Business and Human Rights by ensuring that its key provisions are enforceable, a coalition of three Indigenous, human rights, and environmental groups said today in responding to the Malaysian government’s draft plan. Priorities should include meeting Malaysia’s domestic and international commitments to halt and reverse deforestation, and to mitigate climate change while respecting rights.
The draft plan describes proposed reforms to address corruption, labor, and environmental issues that the Prime Minister’s Office will work to advance through legislation and government policies, as well as proposed measures businesses are encouraged to take to align their practices with international human rights standards. As it stands, although the plan proposes multiple positive measures to advance these goals, without corresponding legal reforms the commitments risk being unenforceable. HRW
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Malaysia-Call to enhance e-invoicing to tackle illegal palm oil fruit purchase
TAWAU: The Tawau Chinese Chamber of Commerce (CCCT) and the Tawau Agricultural Association (PPT) proposed that the Malaysian Palm Oil Board (MPOB) enhance the functionality of electronic invoicing within the Palm Oil Intelligent Management System (SIMS) to address the issue of illegal palm fruit purchases.
CCCT Deputy President William Tan also urged MPOB to install warning signs in high-risk areas to raise public awareness of this issue.
He said if the SIMS, which has already been launched since June of last year, could be expanded for use across the country, it would become an effective tool to tackle the problem of palm fruit theft.
“We propose that MPOB expedite the implementation of this system and mandate that all palm fruit buyers immediately adapt to SIMS to ensure that every transaction is recorded more transparently and traceably, thus guaranteeing a healthier development of the palm oil industry,” he said after visiting the MPOB Tawau office with PPT President Desmond Liew and their delegation, following reports of increasing palm fruit thefts in the district. Daily Express
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Raedial Farms & Malaysian Partner joins forces for 100,000-Hectare oil palm expansion reserving 10% for smallholder farmers’ blockchain farming
Nigeria’s oil palm industry is undergoing a major transformation, and Raedial Farms Limited is at the forefront. The company has partnered with a leading Malaysian firm to expand its one hundred-thousand-hectare oil palm plantation – one of the largest in Africa.
As part of its commitment to inclusive growth, ten percent of this land is dedicated to blockchain-enabled smallholder farming, ensuring efficiency, transparency, and long-term sustainability.
“Sustainability is the Core of Our Growth” – Group Managing Director, Raedial Farms
Raedial Farms Limited is dedicated to responsible agriculture. Mr. Uwadiale Agenmonmen, the Group Managing Director, emphasizes the company’s vision:
“Our focus is not just on oil palm cultivation but on fostering a future built on sustainability, community progress, and environmental responsibility. By adopting global sustainability standards such as the Roundtable on Sustainable Palm Oil and the Malaysian Sustainable Palm Oil certifications, we are ensuring long-term benefits for both the environment and the people. Our collaboration with a leading Malaysian firm strengthens our mission to transform Nigeria’s agricultural sector.” Naira Metrics
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No unanimous scientific evidence on adverse health effects of palm oil consumption: Government tells RS
The minister said that India has achieved the target of limiting trans fat in food products to not more than 2 per cent by weight.
NEW DELHI: The central government said that there is no unanimous 'scientific evidence' on the adverse health effects of palm oil consumption.
However, it informed that it is aware of health concerns regarding the use of refined oils, particularly palm oil in food products.
Minister of State for Health and Family Welfare, Prataprao Jadhav said that the Indian Council of Medical Research - National Institute of Nutrition (ICMR-NIN) has recommended consuming a variety of vegetable oils, including palm oil as 'complete dependence' on a single vegetable oil may not provide optimal balance of all fatty acids.
Further, the Food Safety and Standards Authority of India (FSSAI) is committed to ensure the availability of safe food products including refined oil to the consumers across the country.
He said that many steps have been taken in this regard, including the notification of standards of refined oils including palm oil under the Food Safety and Standards (Food Products Standards and Food Additive) Regulations, 2011.
FSSAI through state/UTs and its regional offices conducts surveillance, monitoring, inspection and random sampling of food products to check compliance with the standards.
In cases, where the food samples are found to be non-conforming, penal actions are initiated against the defaulting Food Business Operators.
FSSAI has introduced a nationwide campaign 'Eat Right India' movement with the tagline ‘Sahi Bhojan Behtar Jeevan’ (right food, better life), focusing on 'preventive health care' through social and behavioural change.
The minister said that India has achieved the target of limiting trans fat in food products to not more than 2 per cent by weight. It is in line with the recommendations of World Health Organization (WHO).
He also said that FSSAI conducted various online competitions and challenges like: ‘Healthy Recipe Contest: Ghar Ki Rasoi- Tasty Bhi, Healthy Bhi,’ ‘Tadke Bina Zaika’ (without the use of visible fat), 'Indigenous Food Challenge National Low Salt Cooking Challenge' for spreading awareness among the citizens. New Indian Express
Indonesia preparing $487 million capital injection for state firm managing seized palm oil plantations
JAKARTA, March 18 (Reuters) - Indonesia is preparing about 8 trillion rupiah ($487.21 million) of capital injection for the new state firm Agrinas Palma Nusantara, senior finance ministry official Rionald Silaban said on Tuesday.
Agrinas, a state firm previously involved in construction that was converted into a palm oil company this year, will manage palm oil plantations confiscated as part of an ongoing corruption probe. Reuters
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First Resources unit inks deal for $439.4 million stake in Indonesian palm oil producer
SINGAPORE – First Resources’ majority-owned subsidiary Ciliandra Perkasa on March 18 entered a conditional shares purchase agreement to buy 3.1 billion shares or 91.2 per cent of the issued and paid-up capital of Austindo Nusantara Jaya for US$329.8 million (S$439.4 million).
The target company is listed on the Indonesia Stock Exchange (IDX), and is primarily engaged in the business of oil palm plantation.
It is also a holding company for various operating subsidiaries in the production and sale of palm oil and other sustainable food crops, as well as renewable energy.
First Resources noted that the proposed acquisition presents an opportunity for the group to expand its upstream oil palm plantation footprint and enhance feedstock availability for its growing downstream operations.
It will be funded by financing arrangements that the group will enter into with third parties.
Following the acquisition, the group’s planted area will increase by about 25 per cent, and its crop yield will also rise by 25 per cent to 1.25 million tonnes.
First Resources noted that the proposed acquisition presents an opportunity for the group to expand its upstream oil palm plantation footprint and enhance feedstock availability for its growing downstream operations.
It will be funded by financing arrangements that the group will enter into with third parties.
Following the acquisition, the group’s planted area will increase by about 25 per cent, and its crop yield will also rise by 25 per cent to 1.25 million tonnes. The Straits Times
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GAPKI Celebrates 44th Anniversary With A Call For Govt Support
JAKARTA – The Indonesian Palm Oil Association (GAPKI) celebrated its 44th anniversary on Thursday (06/03/2025) in Jakarta, with a call for the government to support the palm oil industries which play a significant role in the Indonesian economy.
GAPKI Chairman Eddy Martono said during the anniversary celebration that the palm oil industry is one of the major contributors of foreign exchange for Indonesia. “Even during the outbreak of Covid-19 pandemic, the palm oil industries could survive without any layoff, while other industries collapsed and have to cut the number of their workers to survive. It has shown the robustness of palm oil sector in weathering through the challenges of global economy.”
“Considering the important role of palm oil industries in Indonesian economy and in improving the public welfare, the government should support the palm oil industries with conducive policies,” said Eddy.
He said that the palm oil industries employ around 16.2 million people in Indonesia. “Indonesia is now facing a series of waves of layoffs in various economic sectors. Hopefully, it won’t happen in palm oil industries. So, we badly need supportive policies from the government to ensure the stability of our palm oil industries. We’ve seen that amid the uncertainty of global economy due trade wars and geopolitical tensions, the palm oil industries have proven its strong capacity to support our national economy,” he added.
Contribution To National Economy
Based on data from Statistics Indonesia (BPS) quoted from the official website of the Ministry of Finance, Indonesia’s economic growth during the third quarter of 2024 reached 4.95%. The agriculture and plantation sectors, including palm oil, saw a positive growth of 1.69%, indicating its important role in the economy. GAPKI
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Malaysia: New Business Plan Should Be Enforceable
Ensure Rights Protections for Indigenous Peoples
(Miri) – Malaysia should move swiftly to strengthen its proposed National Action Plan on Business and Human Rights by ensuring that its key provisions are enforceable, a coalition of three Indigenous, human rights, and environmental groups said today in responding to the Malaysian government’s draft plan. Priorities should include meeting Malaysia’s domestic and international commitments to halt and reverse deforestation, and to mitigate climate change while respecting rights.
The draft plan describes proposed reforms to address corruption, labor, and environmental issues that the Prime Minister’s Office will work to advance through legislation and government policies, as well as proposed measures businesses are encouraged to take to align their practices with international human rights standards. As it stands, although the plan proposes multiple positive measures to advance these goals, without corresponding legal reforms the commitments risk being unenforceable. HRW
---------
Malaysia-Call to enhance e-invoicing to tackle illegal palm oil fruit purchase
TAWAU: The Tawau Chinese Chamber of Commerce (CCCT) and the Tawau Agricultural Association (PPT) proposed that the Malaysian Palm Oil Board (MPOB) enhance the functionality of electronic invoicing within the Palm Oil Intelligent Management System (SIMS) to address the issue of illegal palm fruit purchases.
CCCT Deputy President William Tan also urged MPOB to install warning signs in high-risk areas to raise public awareness of this issue.
He said if the SIMS, which has already been launched since June of last year, could be expanded for use across the country, it would become an effective tool to tackle the problem of palm fruit theft.
“We propose that MPOB expedite the implementation of this system and mandate that all palm fruit buyers immediately adapt to SIMS to ensure that every transaction is recorded more transparently and traceably, thus guaranteeing a healthier development of the palm oil industry,” he said after visiting the MPOB Tawau office with PPT President Desmond Liew and their delegation, following reports of increasing palm fruit thefts in the district. Daily Express
---------
Raedial Farms & Malaysian Partner joins forces for 100,000-Hectare oil palm expansion reserving 10% for smallholder farmers’ blockchain farming
Nigeria’s oil palm industry is undergoing a major transformation, and Raedial Farms Limited is at the forefront. The company has partnered with a leading Malaysian firm to expand its one hundred-thousand-hectare oil palm plantation – one of the largest in Africa.
As part of its commitment to inclusive growth, ten percent of this land is dedicated to blockchain-enabled smallholder farming, ensuring efficiency, transparency, and long-term sustainability.
“Sustainability is the Core of Our Growth” – Group Managing Director, Raedial Farms
Raedial Farms Limited is dedicated to responsible agriculture. Mr. Uwadiale Agenmonmen, the Group Managing Director, emphasizes the company’s vision:
“Our focus is not just on oil palm cultivation but on fostering a future built on sustainability, community progress, and environmental responsibility. By adopting global sustainability standards such as the Roundtable on Sustainable Palm Oil and the Malaysian Sustainable Palm Oil certifications, we are ensuring long-term benefits for both the environment and the people. Our collaboration with a leading Malaysian firm strengthens our mission to transform Nigeria’s agricultural sector.” Naira Metrics
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No unanimous scientific evidence on adverse health effects of palm oil consumption: Government tells RS
The minister said that India has achieved the target of limiting trans fat in food products to not more than 2 per cent by weight.
NEW DELHI: The central government said that there is no unanimous 'scientific evidence' on the adverse health effects of palm oil consumption.
However, it informed that it is aware of health concerns regarding the use of refined oils, particularly palm oil in food products.
Minister of State for Health and Family Welfare, Prataprao Jadhav said that the Indian Council of Medical Research - National Institute of Nutrition (ICMR-NIN) has recommended consuming a variety of vegetable oils, including palm oil as 'complete dependence' on a single vegetable oil may not provide optimal balance of all fatty acids.
Further, the Food Safety and Standards Authority of India (FSSAI) is committed to ensure the availability of safe food products including refined oil to the consumers across the country.
He said that many steps have been taken in this regard, including the notification of standards of refined oils including palm oil under the Food Safety and Standards (Food Products Standards and Food Additive) Regulations, 2011.
FSSAI through state/UTs and its regional offices conducts surveillance, monitoring, inspection and random sampling of food products to check compliance with the standards.
In cases, where the food samples are found to be non-conforming, penal actions are initiated against the defaulting Food Business Operators.
FSSAI has introduced a nationwide campaign 'Eat Right India' movement with the tagline ‘Sahi Bhojan Behtar Jeevan’ (right food, better life), focusing on 'preventive health care' through social and behavioural change.
The minister said that India has achieved the target of limiting trans fat in food products to not more than 2 per cent by weight. It is in line with the recommendations of World Health Organization (WHO).
He also said that FSSAI conducted various online competitions and challenges like: ‘Healthy Recipe Contest: Ghar Ki Rasoi- Tasty Bhi, Healthy Bhi,’ ‘Tadke Bina Zaika’ (without the use of visible fat), 'Indigenous Food Challenge National Low Salt Cooking Challenge' for spreading awareness among the citizens. New Indian Express
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March 17, 2025
Indonesia's Palm Oil Export Soars 58 Pct to $2.27 Billion
Jakarta. World's largest palm oil producer Indonesia announced Monday that exports of its top agricultural commodity had witnessed a double-digit increase in February.
Official data showed that the Indonesian crude palm oil (CPO) and derivatives exports reached $2.27 billion in February. This marked a 58.35 percent month-to-month growth from $1.44 billion the previous month. Exports had jumped 89.54 percent year-on-year as Indonesia shipped $1.2 billion worth of palm oil products in February 2024, according to the Central Statistics Agency (BPS).
"Our CPO and derivatives exports reached $2.27 billion in February. This is the highest [CPO] export that Indonesia has ever recorded since August 2023, during which our palm oil exports stood at around $2.4 billion," BPS' chief Amalia Adininggar Widyasanti told a press briefing.
Volume-wise, palm oil exports rose from 1.27 million tons in January 2025 to 2.06 million tons the following month. In February 2024, Indonesia sold 1.42 million tons of CPO and derivatives to its foreign trade partners. Palm oil products were worth approximately $1,101.3 per ton last month. The price per ton was around $1,134.08 in January 2025, and $847.58 in the second month of 2024.
The latest statistics signaled a recovery in Indonesia's palm oil exports. Southeast Asia's largest economy shipped fewer CPOs at the start of the year. Exports fell 24.1 percent from $1.89 billion in December 2024 to $1.44 billion the next month. The numbers also dropped 16.68 percent year-on-year in January.
According to Amalia, Indonesia's soaring palm oil exports in February had helped the country run a positive trade balance for 58 consecutive months since May 2020. India was the second-largest source of Indonesia's surplus last month, contributing almost $1.3 billion and placing just behind the US ($1.57 billion). Palm oil trade had made up a substantial part of its surplus with New Delhi.
Indonesia and its close neighbor Malaysia collectively represent over 80 percent of the global palm oil supply. Jakarta Globe
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Palm oil production at risk amid government crackdown on forest plantations
ndonesia’s palm oil production is under threat following the government's intensified efforts to regulate plantations within forest areas as ordered by the Ministry of Environment and Forestry (KLHK) under Ministerial Decree No. 36/2025 and Presidential Regulation No. 5/2025, which authorize the Ministry of Defense, the Attorney General’s Office, and law enforcement agencies to enforce plantation compliance.
The regulations grant authorities legitimacy to take over illegal plantations. Industry experts suggest that Agrinas, a state-backed entity, may be tasked with managing seized plantations, as seen in the case of PT Duta Palma’s 210,000-hectare estate, which was taken over due to corruption allegations. If Agrinas assumes control of the 317,000 hectares identified by KLHK, it could become Indonesia’s largest state-owned palm oil enterprise, potentially rivaling State plantation company PTPN, which has operated since the 1970s.
Palm oil production in Indonesia has already seen a decline, dropping from 54 million tons in 2023 to 52 million tons in 2024. Exports also fell from 32 million tons to 29 million tons during the same period.
Industry analysts warn that the military-led enforcement in plantations could exacerbate this downturn. If the 317,000 hectares of plantations remain unmanaged, palm oil production could decrease by an estimated 1.3 million tons. In a worst-case scenario, where all 3.4 million hectares of forest plantations are seized under Articles 110A and 110B of the Job Creation Law, crude palm oil (CPO) production could drop by 13.6 million tons, reducing total national output to just 35 million tons.
Palm oil analyst Mansuetus Darto expressed skepticism over the state’s ability to manage these plantations effectively.
“If the government takes aggressive action without careful planning, using force without dialog, national CPO production could suffer a major blow,” Darto spoke to Indonesia Business Post on Friday, March 14,2025. He pointed at previous inefficiencies in state-run enterprises like PTPN, citing mismanagement and corruption as recurring issues that hinder productivity.
Indonesia is expanding its biodiesel program, targeting a B40 blend, which requires approximately 15 million tons of palm oil annually. A drop in production could affect exports, reducing foreign exchange earnings. In 2024, palm oil exports contributed US$27.76 billion (Rp440 trillion) to the national economy. If production declines as projected, 2025 earnings could fall below this figure, further strained by increased export taxes and levies reaching $230 per metric ton.
“The government must consider all factors carefully,” Darto said. “Many state-owned enterprises managing natural resources are already facing financial difficulties. If they take a bigger share, they must ensure it does not backfire.” Indonesia Business Post
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NO PALM OIL: The deception behind the misleading labels
Widespread “No Palm Oil” labels are misleading and overlook Palm Oil’s industry’s efficiency and sustainability measures. Within a EU’s food labelling framework flawed and leading consumers to confusion, it is high time for these deceptive claims to be overcome.
The steadily growing trend of labels on food packaging is intended to help consumers in making informed choices, rather than creating confusion and misleading them. However, a recent special report published by the European Court of Auditors (ECA), titled Food labelling in the EU: Consumers can get lost in the maze of labels, revealed that the gaps in the EU legal framework and the weaknesses in monitoring, reporting, control systems, and sanctions, have led to consumers confronted with confusing and misleading labels.
One such misleading label is the widely used “No Palm Oil” label. The label, associating palm oil with negative allegations on the impacts on health and environment, has been used as a marketing tool despite the lack of science-based evidence supporting the allegations. The weaknesses in monitoring, reporting and control systems, among others, as reported in the special report, have contributed to the growing used of the “No Palm Oil” label.
More importantly, the main food labelling framework of the EU, the regulation on food information to consumers (No. 1169/2011) despite several amendments, failed to address misleading and confusing food labels such as the “No Palm Oil” label. The special report by ECA found that, although the EU legal framework provides for essential food labelling information, 7 out of 11 planned updates have not been completed. As a result, various initiatives have been implemented by Member States to compensate the missing elements, leading to inequity in consumer access to food related information across the EU. However, despite this lack of clarity, the regulation specified that food information should not mislead consumers by suggesting that a common characteristic in a food is something special “in particular by specifically emphasising the presence or absence of certain ingredients and/or nutrients”.
This article will explore the inconvenient truth and provide evidence to counter the misleading “No Palm Oil” label to help consumers in making a healthier and environmentally friendly decisions. This is especially important as we had just celebrated the World Consumer Rights Day on 15 March.
Palm oil is one of the 17 edible oils recognised by the Food and Agriculture Organization (FAO) and World Health Organization (WHO). Credible nutritional studies showed that palm oil does not raise cholesterol levels in the body. Scientific evidences have also confirmed that moderate consumption of palm oil is no worse than other cooking oils. The key, as with any ingredient, is moderation and balance.
Palm oil contains a balanced proportion of saturated fatty acids and unsaturated fatty acids, namely 50% saturated fatty acids, 40% monosaturated fatty acids and 10% polyunsaturated fatty acids. Palm oil is naturally semi-solid at room temperature and therefore, does not require hydrogenation process for use as a solid fat component, avoiding the formation of trans fatty acids. Trans fatty acids have been proven scientifically to have detrimental effects on health and have been limited in the usage in food. In this context, palm oil and palm stearin (the solid fraction of palm oil) are good alternatives to replace trans fatty acids for formulation of trans fatty acids-free food products.
Additionally, palm oil is the only vegetable oil which is a rich source of phytonutrients such as tocotrienols, tocopherol, carotenoids, phytosterols and squalene, among others. Red palm oil, palm oil refined using a milder processing technology, is rich with these phytonutrients which have been proven to be good for health, supported by extensive scientific studies.
Not only that palm oil is a vital part of the daily life and cultural heritage of many countries, part of the reasons of its growing demand is its land use efficiency. Oil palm trees are perennial crops with an economic life of 25 years. The same amount of land being used for producing one tonne of palm oil would require at least five to eight times the land area required for production of other vegetable oils. This means that if palm oil usage were to be significantly limited and replaced by other vegetable oils, the impacts to biodiversity and ecosystem could be catastrophic.
The cooperation between the governments and stakeholders of the palm oil producing countries through policies and regulations as well as voluntary initiatives play a pivotal role in steering oil palm cultivation into a more sustainable and efficient production, balancing the conservation of forest and biodiversity. In Indonesia and Malaysia, two largest producing countries making up over 80% of the global production of palm oil, mandatory national certification schemes have been implemented, namely the Indonesian Sustainable Palm Oil (ISPO) and Malaysian Sustainable Palm Oil (MSPO), respectively, to ensure that the production in both countries conform to the sustainability requirements.
Palm oil is the only vegetable oil in the world subjected to the most stringent sustainability requirements, unlike other vegetable oils that lack such mandatory schemes. In addition to the mandatory schemes, palm oil is subjected to voluntary certification scheme namely, the Roundtable on Sustainable Palm Oil (RSPO). The “No Palm Oil” label does not take into account the sustainability measures taken by producers, thus disregarding the existence of these practices and creating a disadvantageous generalisation to the whole industry, resulting in the discriminatory labelling against palm oil.
It is important to remember that foods have no inherent virtue. Demonising and assigning moral value to foods rather than focusing on balanced eating, only create confusion among consumers, leading to a misinformed consumption. To truly understand quality of food we consume, we must focus on their ingredients, instead of relying on marketing gimmicks using claims not substantiated by scientific evidence. The real question is: Why emphasise the absence of an ingredient instead of highlighting the presence of beneficial ingredients? So, the next time you see a product with a “No Palm Oil” label, think again – consider what ingredients are being used and whether they offer a healthier or more sustainable alternative. Euractiv
Indonesia's Palm Oil Export Soars 58 Pct to $2.27 Billion
Jakarta. World's largest palm oil producer Indonesia announced Monday that exports of its top agricultural commodity had witnessed a double-digit increase in February.
Official data showed that the Indonesian crude palm oil (CPO) and derivatives exports reached $2.27 billion in February. This marked a 58.35 percent month-to-month growth from $1.44 billion the previous month. Exports had jumped 89.54 percent year-on-year as Indonesia shipped $1.2 billion worth of palm oil products in February 2024, according to the Central Statistics Agency (BPS).
"Our CPO and derivatives exports reached $2.27 billion in February. This is the highest [CPO] export that Indonesia has ever recorded since August 2023, during which our palm oil exports stood at around $2.4 billion," BPS' chief Amalia Adininggar Widyasanti told a press briefing.
Volume-wise, palm oil exports rose from 1.27 million tons in January 2025 to 2.06 million tons the following month. In February 2024, Indonesia sold 1.42 million tons of CPO and derivatives to its foreign trade partners. Palm oil products were worth approximately $1,101.3 per ton last month. The price per ton was around $1,134.08 in January 2025, and $847.58 in the second month of 2024.
The latest statistics signaled a recovery in Indonesia's palm oil exports. Southeast Asia's largest economy shipped fewer CPOs at the start of the year. Exports fell 24.1 percent from $1.89 billion in December 2024 to $1.44 billion the next month. The numbers also dropped 16.68 percent year-on-year in January.
According to Amalia, Indonesia's soaring palm oil exports in February had helped the country run a positive trade balance for 58 consecutive months since May 2020. India was the second-largest source of Indonesia's surplus last month, contributing almost $1.3 billion and placing just behind the US ($1.57 billion). Palm oil trade had made up a substantial part of its surplus with New Delhi.
Indonesia and its close neighbor Malaysia collectively represent over 80 percent of the global palm oil supply. Jakarta Globe
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Palm oil production at risk amid government crackdown on forest plantations
ndonesia’s palm oil production is under threat following the government's intensified efforts to regulate plantations within forest areas as ordered by the Ministry of Environment and Forestry (KLHK) under Ministerial Decree No. 36/2025 and Presidential Regulation No. 5/2025, which authorize the Ministry of Defense, the Attorney General’s Office, and law enforcement agencies to enforce plantation compliance.
The regulations grant authorities legitimacy to take over illegal plantations. Industry experts suggest that Agrinas, a state-backed entity, may be tasked with managing seized plantations, as seen in the case of PT Duta Palma’s 210,000-hectare estate, which was taken over due to corruption allegations. If Agrinas assumes control of the 317,000 hectares identified by KLHK, it could become Indonesia’s largest state-owned palm oil enterprise, potentially rivaling State plantation company PTPN, which has operated since the 1970s.
Palm oil production in Indonesia has already seen a decline, dropping from 54 million tons in 2023 to 52 million tons in 2024. Exports also fell from 32 million tons to 29 million tons during the same period.
Industry analysts warn that the military-led enforcement in plantations could exacerbate this downturn. If the 317,000 hectares of plantations remain unmanaged, palm oil production could decrease by an estimated 1.3 million tons. In a worst-case scenario, where all 3.4 million hectares of forest plantations are seized under Articles 110A and 110B of the Job Creation Law, crude palm oil (CPO) production could drop by 13.6 million tons, reducing total national output to just 35 million tons.
Palm oil analyst Mansuetus Darto expressed skepticism over the state’s ability to manage these plantations effectively.
“If the government takes aggressive action without careful planning, using force without dialog, national CPO production could suffer a major blow,” Darto spoke to Indonesia Business Post on Friday, March 14,2025. He pointed at previous inefficiencies in state-run enterprises like PTPN, citing mismanagement and corruption as recurring issues that hinder productivity.
Indonesia is expanding its biodiesel program, targeting a B40 blend, which requires approximately 15 million tons of palm oil annually. A drop in production could affect exports, reducing foreign exchange earnings. In 2024, palm oil exports contributed US$27.76 billion (Rp440 trillion) to the national economy. If production declines as projected, 2025 earnings could fall below this figure, further strained by increased export taxes and levies reaching $230 per metric ton.
“The government must consider all factors carefully,” Darto said. “Many state-owned enterprises managing natural resources are already facing financial difficulties. If they take a bigger share, they must ensure it does not backfire.” Indonesia Business Post
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NO PALM OIL: The deception behind the misleading labels
Widespread “No Palm Oil” labels are misleading and overlook Palm Oil’s industry’s efficiency and sustainability measures. Within a EU’s food labelling framework flawed and leading consumers to confusion, it is high time for these deceptive claims to be overcome.
The steadily growing trend of labels on food packaging is intended to help consumers in making informed choices, rather than creating confusion and misleading them. However, a recent special report published by the European Court of Auditors (ECA), titled Food labelling in the EU: Consumers can get lost in the maze of labels, revealed that the gaps in the EU legal framework and the weaknesses in monitoring, reporting, control systems, and sanctions, have led to consumers confronted with confusing and misleading labels.
One such misleading label is the widely used “No Palm Oil” label. The label, associating palm oil with negative allegations on the impacts on health and environment, has been used as a marketing tool despite the lack of science-based evidence supporting the allegations. The weaknesses in monitoring, reporting and control systems, among others, as reported in the special report, have contributed to the growing used of the “No Palm Oil” label.
More importantly, the main food labelling framework of the EU, the regulation on food information to consumers (No. 1169/2011) despite several amendments, failed to address misleading and confusing food labels such as the “No Palm Oil” label. The special report by ECA found that, although the EU legal framework provides for essential food labelling information, 7 out of 11 planned updates have not been completed. As a result, various initiatives have been implemented by Member States to compensate the missing elements, leading to inequity in consumer access to food related information across the EU. However, despite this lack of clarity, the regulation specified that food information should not mislead consumers by suggesting that a common characteristic in a food is something special “in particular by specifically emphasising the presence or absence of certain ingredients and/or nutrients”.
This article will explore the inconvenient truth and provide evidence to counter the misleading “No Palm Oil” label to help consumers in making a healthier and environmentally friendly decisions. This is especially important as we had just celebrated the World Consumer Rights Day on 15 March.
Palm oil is one of the 17 edible oils recognised by the Food and Agriculture Organization (FAO) and World Health Organization (WHO). Credible nutritional studies showed that palm oil does not raise cholesterol levels in the body. Scientific evidences have also confirmed that moderate consumption of palm oil is no worse than other cooking oils. The key, as with any ingredient, is moderation and balance.
Palm oil contains a balanced proportion of saturated fatty acids and unsaturated fatty acids, namely 50% saturated fatty acids, 40% monosaturated fatty acids and 10% polyunsaturated fatty acids. Palm oil is naturally semi-solid at room temperature and therefore, does not require hydrogenation process for use as a solid fat component, avoiding the formation of trans fatty acids. Trans fatty acids have been proven scientifically to have detrimental effects on health and have been limited in the usage in food. In this context, palm oil and palm stearin (the solid fraction of palm oil) are good alternatives to replace trans fatty acids for formulation of trans fatty acids-free food products.
Additionally, palm oil is the only vegetable oil which is a rich source of phytonutrients such as tocotrienols, tocopherol, carotenoids, phytosterols and squalene, among others. Red palm oil, palm oil refined using a milder processing technology, is rich with these phytonutrients which have been proven to be good for health, supported by extensive scientific studies.
Not only that palm oil is a vital part of the daily life and cultural heritage of many countries, part of the reasons of its growing demand is its land use efficiency. Oil palm trees are perennial crops with an economic life of 25 years. The same amount of land being used for producing one tonne of palm oil would require at least five to eight times the land area required for production of other vegetable oils. This means that if palm oil usage were to be significantly limited and replaced by other vegetable oils, the impacts to biodiversity and ecosystem could be catastrophic.
The cooperation between the governments and stakeholders of the palm oil producing countries through policies and regulations as well as voluntary initiatives play a pivotal role in steering oil palm cultivation into a more sustainable and efficient production, balancing the conservation of forest and biodiversity. In Indonesia and Malaysia, two largest producing countries making up over 80% of the global production of palm oil, mandatory national certification schemes have been implemented, namely the Indonesian Sustainable Palm Oil (ISPO) and Malaysian Sustainable Palm Oil (MSPO), respectively, to ensure that the production in both countries conform to the sustainability requirements.
Palm oil is the only vegetable oil in the world subjected to the most stringent sustainability requirements, unlike other vegetable oils that lack such mandatory schemes. In addition to the mandatory schemes, palm oil is subjected to voluntary certification scheme namely, the Roundtable on Sustainable Palm Oil (RSPO). The “No Palm Oil” label does not take into account the sustainability measures taken by producers, thus disregarding the existence of these practices and creating a disadvantageous generalisation to the whole industry, resulting in the discriminatory labelling against palm oil.
It is important to remember that foods have no inherent virtue. Demonising and assigning moral value to foods rather than focusing on balanced eating, only create confusion among consumers, leading to a misinformed consumption. To truly understand quality of food we consume, we must focus on their ingredients, instead of relying on marketing gimmicks using claims not substantiated by scientific evidence. The real question is: Why emphasise the absence of an ingredient instead of highlighting the presence of beneficial ingredients? So, the next time you see a product with a “No Palm Oil” label, think again – consider what ingredients are being used and whether they offer a healthier or more sustainable alternative. Euractiv
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March 15, 2025
Palm oil regulations aim to stop deforestation for palm oil
For years, the Indonesian and Malaysian governments have attempted to regulate palm oil. Will they succeed?
https://www.foodnavigator.com/Article/2025/03/14/palm-oil-regulations-aim-to-stop-deforestation/
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MinyaKita Fraud Scandal: Indonesian Govt Condemns Company's Deceptive Practices
TEMPO.CO, Jakarta - Indonesian Trade Minister Budi Santoso revealed that PT Artha Eka Global Asia (AEGA) was proven to reduce the measurement of MinyaKita. According to Budi, PT AEGA packaged and distributed MinyaKita in 0.8 liters using non-Domestic Market Obligation (DMO) oil.
Budi stated that MinyaKita should only be produced from DMO rather than commercial oil. ''The company is indeed mischievous. They want to produce a large quantity, so they might use non-DMO oil by using commercial oil,'' said Budi in Karawang Regency, West Java, on Thursday, March 13, 2025.
DMO oil for MinyaKita is intended to ensure sufficient domestic stock or edible oil, especially when exporters want to market palm oil commodities internationally. Therefore, companies that want to export crude palm oil must first channel MinyaKita to the market. This is stipulated in the Minister of Trade Regulation No. 18 of 2024 concerning Packaged Palm Oil and the Management of People's Cooking Oil.
Budi considered that the DMO provisions have been fulfilled according to the quota. Thus, with limited DMO from manufacturers and many distributors, Budi saw this gap as an opportunity to deceive MinyaKita sales. ''They want to sell it, because they can't get DMO anymore as the DMO is sufficient, so they sell it using commercial oil. This can be done. This means it's a violation because they use the MinyaKita brand, while it's not DMO,'' Budi said. Tempo
Palm oil regulations aim to stop deforestation for palm oil
For years, the Indonesian and Malaysian governments have attempted to regulate palm oil. Will they succeed?
https://www.foodnavigator.com/Article/2025/03/14/palm-oil-regulations-aim-to-stop-deforestation/
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MinyaKita Fraud Scandal: Indonesian Govt Condemns Company's Deceptive Practices
TEMPO.CO, Jakarta - Indonesian Trade Minister Budi Santoso revealed that PT Artha Eka Global Asia (AEGA) was proven to reduce the measurement of MinyaKita. According to Budi, PT AEGA packaged and distributed MinyaKita in 0.8 liters using non-Domestic Market Obligation (DMO) oil.
Budi stated that MinyaKita should only be produced from DMO rather than commercial oil. ''The company is indeed mischievous. They want to produce a large quantity, so they might use non-DMO oil by using commercial oil,'' said Budi in Karawang Regency, West Java, on Thursday, March 13, 2025.
DMO oil for MinyaKita is intended to ensure sufficient domestic stock or edible oil, especially when exporters want to market palm oil commodities internationally. Therefore, companies that want to export crude palm oil must first channel MinyaKita to the market. This is stipulated in the Minister of Trade Regulation No. 18 of 2024 concerning Packaged Palm Oil and the Management of People's Cooking Oil.
Budi considered that the DMO provisions have been fulfilled according to the quota. Thus, with limited DMO from manufacturers and many distributors, Budi saw this gap as an opportunity to deceive MinyaKita sales. ''They want to sell it, because they can't get DMO anymore as the DMO is sufficient, so they sell it using commercial oil. This can be done. This means it's a violation because they use the MinyaKita brand, while it's not DMO,'' Budi said. Tempo
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March 14, 2025
Almost 80% of Malaysian palm oil smallholders comply with EUDR
KUALA LUMPUR (March 13): About 70% to 80% of local palm oil smallholders already complied with the European Union Deforestation Regulation (EUDR), said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
Hence, he said the government would support the remaining palm oil smallholders in complying with the regulation before the EUDR deadline of Dec 30, 2025.
Under the European Commission's proposal, large companies would have until Dec 30, 2025, to comply with the deadline, while small and medium enterprises (SMEs) would have until June 30, 2026, with no fewer than 45 countries calling for a delay in the EUDR implementation.
Johari said large plantations should have little difficulty complying with the EUDR as they are currently supplying European countries and have already met many international certifications.
"Only 1.5 million hectares are managed by the smallholders. We are going to do that (support them in meeting the EUDR deadline)," he said at a press conference after the Gema Ramadan Programme by Padiberas Nasional Bhd (Bernas) here on Thursday.
The minister was responding to a question about the readiness of Malaysian oil palm planters for the EUDR regulations, which were for a year.
Meanwhile, Johari, who is also the Member of Parliament for Titiwangsa, reached out to over 1,000 residents at the Hiliran Ampang People's Housing Project (PPR), who received essential goods such as rice and sugar, as well as porridge, during the event.
Also present were Bernas chairman Datuk Seri Rohani Abdul Karim and Bernas group chief executive officer Zulkiflee Abdul Rahman. The Edge/ Bernama
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Lab Alley Achieves RSPO Certification, Strengthening Commitment to Sustainability
(PRWeb) Lab Alley, a leading provider of natural, essential, and high-purity chemicals is proud to announce its official certification by the Roundtable on Sustainable Palm Oil (RSPO). This achievement reinforces Lab Alley's dedication to environmental responsibility and providing customers with sustainably sourced products that align with their values.
AUSTIN, Texas, March 13, 2025 /PRNewswire-PRWeb/ -- Lab Alley, a leading provider of natural, essential, and high-purity chemicals is proud to announce its official certification by the Roundtable on Sustainable Palm Oil (RSPO). This achievement reinforces Lab Alley's dedication to environmental responsibility and providing customers with sustainably sourced products that align with their values.
The RSPO is a globally recognized initiative that brings together stakeholders from across the palm oil supply chain, including growers, manufacturers, retailers, financial institutions, and environmental organizations. Its mission is to promote the growth and use of sustainable palm oil through collaboration and transparency.
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Malaysia’s PKS exports fall in 2024, wood pellets rise
Malaysia's total PKS exports stood at 1.27mn t in 2024, down from 1.33mn t in 2023 because of lower demand from Japan and Thailand as well as heavy rain that affected crude palm oil (CPO) output and PKS availability.
Malaysia exported 118,000t of PKS in December, down by 32pc from a year earlier, and 20pc lower than 148,000t in the previous month, according to GTT customs data. This is because of lower demand from Thailand, with Japanese demand levels rising slightly on the month in December.
But Japanese demand dropped on the year in 2024, because of outages at several power plants following fire incidents, with longer maintenance periods capping PKS consumption in early 2024. But demand picked up after August 2024, and this was reflected in prices.
Argus assessed prices for PKS fob Malaysia compliant with Japan's feed-in-tariff (FiT) at $94.63/t on 24 December, up from $83.92/t on 28 August. Argus last assessed the price at $95/t on 5 March this year.
The country shipped 117,000t of PKS to Japan in December, down by 7.5pc from 126,000t a year earlier and higher by 10pc from 107,000t in November. Japan was the top export destination for PKS, accounting for 99pc of Malaysia's total exports in December.
Shipments to Thailand stood at 829t in December, down by 98pc from 47,200t a year earlier, and 63pc lower from November.
Wood pellets
Total wood pellet exports from Malaysia were at 1.13mn t in 2024, rising by 31pc from 2023. Malaysia exported 143,000t of wood pellets in December 2024, 28pc higher from 111,000t a year earlier but lower by 10pc from 159,000t in November 2024, according to GTT customs data.
The increase in shipments comes as top wood pellet-consuming countries like South Korea and Japan look to diversify their sources, especially as prices of pellets from key supplier Vietnam have continued to increase.
Argus assessed the fob Vietnam to South Korea market at $131.63/t on 5 March from $122.19/t on 4 December, with the fob Vietnam to Japan market also climbing to $144/t from $134.83/t over the same period.
Japan accounted for 39pc of the country's wood pellet exports in December. Malaysian wood pellet shipments to Japan stood at 56,000t in December, almost tripling from 19,800t a year earlier, but 39pc lower than 91,700t in November.
Malaysian shipments of wood pellets to South Korea stood at 26,400t in December, more than doubling on the year but down by 31pc on the month. Shipments to South Korea accounted for 19pc of Malaysia's total wood pellet exports in December.
There was a significant volume of wood pellets shipped to the Netherlands in December, with one cargo of 60,000t. This shipment made up 42pc of Malaysia's pellet exports in December.
By Joshua Sim/ ArgusMedia
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Indonesia can produce more food without deforestation
JAKARTA - Indonesia's government hopes an initiative to turn millions of hectares of land, including forests and peatlands, into farmland will reduce the world's fourth-most populous nation's reliance on food imports to feed a booming population.
Food estates, or large-scale commercial plantations to raise strategic crops, are at the centre of the plan that environmentalists warn will require razing trees and ancient peatlands that store vast amounts of planet-heating carbon dioxide and exacerbate the climate crisis.
Here's what you need to know about Indonesia's ambitious food estate initiative.
Why does Indonesia need to increase food security?
Dependent on imports of commodities like rice, corn, sugar and wheat, Indonesia ranks 63rd out of 113 countries in the Economist Impact think tank's 2022 Global Food Security Index.
The production of the main staple of rice has plateaued in recent years at 31 million tons in 2023. Rice imports jumped to 3 million tons in 2023 from 305,000 tonnes in 2017 to feed a fast-growing population of 270 million people, according to government figures.
President Prabowo Subianto campaigned last year on a pledge to make Indonesia self-sufficient in its supply of food by 2028.
What is the food estate programme?
Introduced by his predecessor Joko Widodo, the food estate programme plans to convert 20 million hectares (49 million acres) of forests and peatland into farmland across Indonesia to produce rice, cassava, corn, sugar and other staples by 2027. That is roughly a tenth of Indonesia's total land area.
In 2020, the government launched a pilot project in Central Kalimantan, setting aside more than 1 million hectares of land for rice, corn and cassava.
Only 47,000 hectares had been planted by 2023, according to the Agriculture Ministry.
About 64% of the total area planned for the food estates is protected peatland, according to Indonesian environmental NGO Pantau Gambut.
Subianto plans to invest 124 trillion rupiah ($7.5 billion) this year for agriculture technology and infrastructure.
In 1995, the Mega Rice Project, a precursor to the food estate programme, converted 1 million hectares of peat swamp in Borneo for rice production. It was abandoned four years later, because a large portion of the land was unsuitable for rice cultivation.
What are the environmental impacts? Context
Almost 80% of Malaysian palm oil smallholders comply with EUDR
KUALA LUMPUR (March 13): About 70% to 80% of local palm oil smallholders already complied with the European Union Deforestation Regulation (EUDR), said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
Hence, he said the government would support the remaining palm oil smallholders in complying with the regulation before the EUDR deadline of Dec 30, 2025.
Under the European Commission's proposal, large companies would have until Dec 30, 2025, to comply with the deadline, while small and medium enterprises (SMEs) would have until June 30, 2026, with no fewer than 45 countries calling for a delay in the EUDR implementation.
Johari said large plantations should have little difficulty complying with the EUDR as they are currently supplying European countries and have already met many international certifications.
"Only 1.5 million hectares are managed by the smallholders. We are going to do that (support them in meeting the EUDR deadline)," he said at a press conference after the Gema Ramadan Programme by Padiberas Nasional Bhd (Bernas) here on Thursday.
The minister was responding to a question about the readiness of Malaysian oil palm planters for the EUDR regulations, which were for a year.
Meanwhile, Johari, who is also the Member of Parliament for Titiwangsa, reached out to over 1,000 residents at the Hiliran Ampang People's Housing Project (PPR), who received essential goods such as rice and sugar, as well as porridge, during the event.
Also present were Bernas chairman Datuk Seri Rohani Abdul Karim and Bernas group chief executive officer Zulkiflee Abdul Rahman. The Edge/ Bernama
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Lab Alley Achieves RSPO Certification, Strengthening Commitment to Sustainability
(PRWeb) Lab Alley, a leading provider of natural, essential, and high-purity chemicals is proud to announce its official certification by the Roundtable on Sustainable Palm Oil (RSPO). This achievement reinforces Lab Alley's dedication to environmental responsibility and providing customers with sustainably sourced products that align with their values.
AUSTIN, Texas, March 13, 2025 /PRNewswire-PRWeb/ -- Lab Alley, a leading provider of natural, essential, and high-purity chemicals is proud to announce its official certification by the Roundtable on Sustainable Palm Oil (RSPO). This achievement reinforces Lab Alley's dedication to environmental responsibility and providing customers with sustainably sourced products that align with their values.
The RSPO is a globally recognized initiative that brings together stakeholders from across the palm oil supply chain, including growers, manufacturers, retailers, financial institutions, and environmental organizations. Its mission is to promote the growth and use of sustainable palm oil through collaboration and transparency.
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Malaysia’s PKS exports fall in 2024, wood pellets rise
Malaysia's total PKS exports stood at 1.27mn t in 2024, down from 1.33mn t in 2023 because of lower demand from Japan and Thailand as well as heavy rain that affected crude palm oil (CPO) output and PKS availability.
Malaysia exported 118,000t of PKS in December, down by 32pc from a year earlier, and 20pc lower than 148,000t in the previous month, according to GTT customs data. This is because of lower demand from Thailand, with Japanese demand levels rising slightly on the month in December.
But Japanese demand dropped on the year in 2024, because of outages at several power plants following fire incidents, with longer maintenance periods capping PKS consumption in early 2024. But demand picked up after August 2024, and this was reflected in prices.
Argus assessed prices for PKS fob Malaysia compliant with Japan's feed-in-tariff (FiT) at $94.63/t on 24 December, up from $83.92/t on 28 August. Argus last assessed the price at $95/t on 5 March this year.
The country shipped 117,000t of PKS to Japan in December, down by 7.5pc from 126,000t a year earlier and higher by 10pc from 107,000t in November. Japan was the top export destination for PKS, accounting for 99pc of Malaysia's total exports in December.
Shipments to Thailand stood at 829t in December, down by 98pc from 47,200t a year earlier, and 63pc lower from November.
Wood pellets
Total wood pellet exports from Malaysia were at 1.13mn t in 2024, rising by 31pc from 2023. Malaysia exported 143,000t of wood pellets in December 2024, 28pc higher from 111,000t a year earlier but lower by 10pc from 159,000t in November 2024, according to GTT customs data.
The increase in shipments comes as top wood pellet-consuming countries like South Korea and Japan look to diversify their sources, especially as prices of pellets from key supplier Vietnam have continued to increase.
Argus assessed the fob Vietnam to South Korea market at $131.63/t on 5 March from $122.19/t on 4 December, with the fob Vietnam to Japan market also climbing to $144/t from $134.83/t over the same period.
Japan accounted for 39pc of the country's wood pellet exports in December. Malaysian wood pellet shipments to Japan stood at 56,000t in December, almost tripling from 19,800t a year earlier, but 39pc lower than 91,700t in November.
Malaysian shipments of wood pellets to South Korea stood at 26,400t in December, more than doubling on the year but down by 31pc on the month. Shipments to South Korea accounted for 19pc of Malaysia's total wood pellet exports in December.
There was a significant volume of wood pellets shipped to the Netherlands in December, with one cargo of 60,000t. This shipment made up 42pc of Malaysia's pellet exports in December.
By Joshua Sim/ ArgusMedia
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Indonesia can produce more food without deforestation
JAKARTA - Indonesia's government hopes an initiative to turn millions of hectares of land, including forests and peatlands, into farmland will reduce the world's fourth-most populous nation's reliance on food imports to feed a booming population.
Food estates, or large-scale commercial plantations to raise strategic crops, are at the centre of the plan that environmentalists warn will require razing trees and ancient peatlands that store vast amounts of planet-heating carbon dioxide and exacerbate the climate crisis.
Here's what you need to know about Indonesia's ambitious food estate initiative.
Why does Indonesia need to increase food security?
Dependent on imports of commodities like rice, corn, sugar and wheat, Indonesia ranks 63rd out of 113 countries in the Economist Impact think tank's 2022 Global Food Security Index.
The production of the main staple of rice has plateaued in recent years at 31 million tons in 2023. Rice imports jumped to 3 million tons in 2023 from 305,000 tonnes in 2017 to feed a fast-growing population of 270 million people, according to government figures.
President Prabowo Subianto campaigned last year on a pledge to make Indonesia self-sufficient in its supply of food by 2028.
What is the food estate programme?
Introduced by his predecessor Joko Widodo, the food estate programme plans to convert 20 million hectares (49 million acres) of forests and peatland into farmland across Indonesia to produce rice, cassava, corn, sugar and other staples by 2027. That is roughly a tenth of Indonesia's total land area.
In 2020, the government launched a pilot project in Central Kalimantan, setting aside more than 1 million hectares of land for rice, corn and cassava.
Only 47,000 hectares had been planted by 2023, according to the Agriculture Ministry.
About 64% of the total area planned for the food estates is protected peatland, according to Indonesian environmental NGO Pantau Gambut.
Subianto plans to invest 124 trillion rupiah ($7.5 billion) this year for agriculture technology and infrastructure.
In 1995, the Mega Rice Project, a precursor to the food estate programme, converted 1 million hectares of peat swamp in Borneo for rice production. It was abandoned four years later, because a large portion of the land was unsuitable for rice cultivation.
What are the environmental impacts? Context
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March 13, 2025
Indonesia Approves Congo's Palm Oil Council CPOPC Membership
Jakarta. Indonesia has greenlit Congo's full membership to the Council of Palm Oil Producing Countries or CPOPC, possibly making it the first African nation to join the group that aims to unite the commodity's producers across the globe.
Senior minister Airlangga Hartarto had signed a circular letter on the approval for Congo's accession as a CPOPC full member, the government announced on Wednesday night. The letter will have to earn the signature of other members, namely Malaysia, Honduras, and Papua New Guinea.
"Congo was CPOPC's guest country and observer country before becoming a full-fledged member. Congo is set to become the first African country that earns the full membership status. Having Congo in the group will strengthen CPOPC's position on the global stage, ... and expand the organization's influence in the global palm oil market," the a press release by the Indonesian Coordinating Ministry for Economic Affairs reads.
Indonesia said it considered Congo's membership to be able to help the group address trade barriers, although Jakarta did not specifically mention which hurdles was it referring to. Even so, the CPOPC members have been critical of the European Union or EU's anti-deforestation regulation which they fear can take a toll on the Europe-bound palm oil exports. Jakarta also said that Congo's membership could "pave the way for a more inclusive palm oil industry in Africa". Jakarta Globe
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Trade turnover of agricultural products between Russia, Indonesia grows 41% in 2024 to $1.5 bln - Agroexport
MOSCOW. March 12 (Interfax) - The trade turnover of agricultural products between Russia and Indonesia stood at nearly $1.5 billion in 2024, up 41.4% compared to the previous year, the Agroexport federal center said.
Russia supplied Indonesia with approximately 1.4 million tonnes of agricultural goods last year, compared to 1 million tonnes in 2023. They were worth $407.6 million ($338.8 million in 2023).
The main commodity items in the value structure of Indonesian imports from Russia in 2024 were wheat (92.3%), coriander seeds (2.6%) and frozen fish (2.2%). "The 20.3% increase in Indonesia's imports from Russia in value terms in 2024 was primarily driven by higher wheat purchases (+37%)," Agroexport said. At the same time, supplies of frozen fish fell 69.5%, millet 69.6%, and crustaceans 46.9%.
Indonesia exported 795,500 tonnes of agricultural products to Russia in 2024, up from 681,100 tonnes in 2023. The value of these deliveries increased from $715.1 million to $1.08 billion.
Within Indonesia's exports, the largest shares by value were palm oil (49.7%), palm kernel oil and babassu oil (11.7%), coffee (9.7%), cocoa butter and cocoa fat (8.5%) and cocoa powder (4.4%). The 51.4% increase in the value of Indonesia's exports to Russia in 2024 was mainly due to greater supplies of palm oil (+21%), coffee (up six-fold), as well as cocoa butter and cocoa fat (up 8.4-fold).
Russia imported 570,300 tonnes of palm oil (worth $538.2 million) from Indonesia last year, compared to 510,100 tonnes (worth $444.6 million) in 2023. Interfax
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Draw up oil palm replanting plans to sustain productivity, deputy minister tells industry
KUALA LUMPUR (March 12): The Ministry of Plantation and Commodities is urging oil palm plantation owners and companies to plan for replanting in order to sustain productivity with mature trees that provide optimal fresh fruit bunch (FFB) yields.
Deputy Minister Datuk Chan Foong Hin said that scheduled replanting programmes to reduce the acreage of old trees would help maintain farm productivity with mature trees aged 10 to 15 years.
“Palm trees older than 25 years are unproductive, and their heights also make harvesting difficult and increase labour costs.
According to Deputy Plantation and Commodities Minister Datuk Chan Foong Hin, the average replanting rate for oil palm estates in the 2014-2024 period was only about 2.2%, much lower than the recommended rate of 4% to 5%. (Photo by Shahrill Basri/The Edge)
KUALA LUMPUR (March 12): The Ministry of Plantation and Commodities is urging oil palm plantation owners and companies to plan for replanting in order to sustain productivity with mature trees that provide optimal fresh fruit bunch (FFB) yields.
Deputy Minister Datuk Chan Foong Hin said that scheduled replanting programmes to reduce the acreage of old trees would help maintain farm productivity with mature trees aged 10 to 15 years.
“Palm trees older than 25 years are unproductive, and their heights also make harvesting difficult and increase labour costs.
“The rising number of old palm trees owing to the low replanting rate is also affecting the industry’s productivity,” he said when winding up the debate on the motion of thanks for the royal address in the Dewan Negara on Wednesday.
According to Chan, the average replanting rate for oil palm estates in the 2014-2024 period was only about 2.2%, much lower than the recommended rate of 4% to 5%.
“However, based on statistics from the Malaysian Palm Oil Board, the average FFB yield in estates has shown an increase in the past three consecutive years despite the replanting rate remaining below the recommended level.
“The FFB yield increased from 15.47 tonnes per hectare in 2021 to 15.49 tonnes per hectare in 2022, 15.79 tonnes per hectare in 2023 and 16.70 tonnes per hectare in 2024,” he said.
Chan said the ministry will therefore continue to implement strategic measures to increase FFB yields in estates, and ensure that Malaysia's palm oil industry remains competitive and continues to contribute to national economic growth. The EdgeMY
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Sustainable palm oil certification inadvertently affects production efficiency in Malaysia
Sustainability certifications have rapidly gained prominence and become standards across many industries, yet knowledge about the potential unintended consequences of their criteria remains limited. Here, we use European Space Agency multispectral imagery satellite data in combination with economic and location data to investigate whether the certification process for palm oil production results in unintended consequences. Our results indicate decreases in plantation efficiency both prior to and following the certification obtainment. Our findings highlight the importance of considering possible unintended consequences of sustainability certifications beyond their immediate goals and criteria. Nature
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Indonesia Approves Congo's Palm Oil Council CPOPC Membership
Jakarta. Indonesia has greenlit Congo's full membership to the Council of Palm Oil Producing Countries or CPOPC, possibly making it the first African nation to join the group that aims to unite the commodity's producers across the globe.
Senior minister Airlangga Hartarto had signed a circular letter on the approval for Congo's accession as a CPOPC full member, the government announced on Wednesday night. The letter will have to earn the signature of other members, namely Malaysia, Honduras, and Papua New Guinea.
"Congo was CPOPC's guest country and observer country before becoming a full-fledged member. Congo is set to become the first African country that earns the full membership status. Having Congo in the group will strengthen CPOPC's position on the global stage, ... and expand the organization's influence in the global palm oil market," the a press release by the Indonesian Coordinating Ministry for Economic Affairs reads.
Indonesia said it considered Congo's membership to be able to help the group address trade barriers, although Jakarta did not specifically mention which hurdles was it referring to. Even so, the CPOPC members have been critical of the European Union or EU's anti-deforestation regulation which they fear can take a toll on the Europe-bound palm oil exports. Jakarta also said that Congo's membership could "pave the way for a more inclusive palm oil industry in Africa". Jakarta Globe
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Trade turnover of agricultural products between Russia, Indonesia grows 41% in 2024 to $1.5 bln - Agroexport
MOSCOW. March 12 (Interfax) - The trade turnover of agricultural products between Russia and Indonesia stood at nearly $1.5 billion in 2024, up 41.4% compared to the previous year, the Agroexport federal center said.
Russia supplied Indonesia with approximately 1.4 million tonnes of agricultural goods last year, compared to 1 million tonnes in 2023. They were worth $407.6 million ($338.8 million in 2023).
The main commodity items in the value structure of Indonesian imports from Russia in 2024 were wheat (92.3%), coriander seeds (2.6%) and frozen fish (2.2%). "The 20.3% increase in Indonesia's imports from Russia in value terms in 2024 was primarily driven by higher wheat purchases (+37%)," Agroexport said. At the same time, supplies of frozen fish fell 69.5%, millet 69.6%, and crustaceans 46.9%.
Indonesia exported 795,500 tonnes of agricultural products to Russia in 2024, up from 681,100 tonnes in 2023. The value of these deliveries increased from $715.1 million to $1.08 billion.
Within Indonesia's exports, the largest shares by value were palm oil (49.7%), palm kernel oil and babassu oil (11.7%), coffee (9.7%), cocoa butter and cocoa fat (8.5%) and cocoa powder (4.4%). The 51.4% increase in the value of Indonesia's exports to Russia in 2024 was mainly due to greater supplies of palm oil (+21%), coffee (up six-fold), as well as cocoa butter and cocoa fat (up 8.4-fold).
Russia imported 570,300 tonnes of palm oil (worth $538.2 million) from Indonesia last year, compared to 510,100 tonnes (worth $444.6 million) in 2023. Interfax
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Draw up oil palm replanting plans to sustain productivity, deputy minister tells industry
KUALA LUMPUR (March 12): The Ministry of Plantation and Commodities is urging oil palm plantation owners and companies to plan for replanting in order to sustain productivity with mature trees that provide optimal fresh fruit bunch (FFB) yields.
Deputy Minister Datuk Chan Foong Hin said that scheduled replanting programmes to reduce the acreage of old trees would help maintain farm productivity with mature trees aged 10 to 15 years.
“Palm trees older than 25 years are unproductive, and their heights also make harvesting difficult and increase labour costs.
According to Deputy Plantation and Commodities Minister Datuk Chan Foong Hin, the average replanting rate for oil palm estates in the 2014-2024 period was only about 2.2%, much lower than the recommended rate of 4% to 5%. (Photo by Shahrill Basri/The Edge)
KUALA LUMPUR (March 12): The Ministry of Plantation and Commodities is urging oil palm plantation owners and companies to plan for replanting in order to sustain productivity with mature trees that provide optimal fresh fruit bunch (FFB) yields.
Deputy Minister Datuk Chan Foong Hin said that scheduled replanting programmes to reduce the acreage of old trees would help maintain farm productivity with mature trees aged 10 to 15 years.
“Palm trees older than 25 years are unproductive, and their heights also make harvesting difficult and increase labour costs.
“The rising number of old palm trees owing to the low replanting rate is also affecting the industry’s productivity,” he said when winding up the debate on the motion of thanks for the royal address in the Dewan Negara on Wednesday.
According to Chan, the average replanting rate for oil palm estates in the 2014-2024 period was only about 2.2%, much lower than the recommended rate of 4% to 5%.
“However, based on statistics from the Malaysian Palm Oil Board, the average FFB yield in estates has shown an increase in the past three consecutive years despite the replanting rate remaining below the recommended level.
“The FFB yield increased from 15.47 tonnes per hectare in 2021 to 15.49 tonnes per hectare in 2022, 15.79 tonnes per hectare in 2023 and 16.70 tonnes per hectare in 2024,” he said.
Chan said the ministry will therefore continue to implement strategic measures to increase FFB yields in estates, and ensure that Malaysia's palm oil industry remains competitive and continues to contribute to national economic growth. The EdgeMY
---------
Sustainable palm oil certification inadvertently affects production efficiency in Malaysia
Sustainability certifications have rapidly gained prominence and become standards across many industries, yet knowledge about the potential unintended consequences of their criteria remains limited. Here, we use European Space Agency multispectral imagery satellite data in combination with economic and location data to investigate whether the certification process for palm oil production results in unintended consequences. Our results indicate decreases in plantation efficiency both prior to and following the certification obtainment. Our findings highlight the importance of considering possible unintended consequences of sustainability certifications beyond their immediate goals and criteria. Nature
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March 12, 2025
Indonesia to carry out downstreaming of palm industries in four stages
Jakarta (ANTARA) - The Indonesian government will carry out the downstreaming of the palm oil industry in four stages, National Development Planning Minister Rachmat Pambudy has said.
As it is a strategic commodity, based on the National Long-Term Development Plan 2025–2045, the downstreaming of palm oil will be carried out in at least four stages, he informed.
They are strengthening the industrialization ecosystem, increasing production capacity for domestic needs, strengthening industrial competitiveness toward global expansion, and achieving net exports.
"We hope that palm oil downstreaming will support high and sustainable growth," he said at an online seminar held by the IPB University on Tuesday.
According to Rachmat, palm oil downstreaming has good potential, considering Indonesia's position as the main producer of crude palm oil (CPO). The nation accounts for 68.7 percent of the total production, he added.
In addition, priority government programs, such as the mandatory B35 biofuel as well as the free nutritious meals program, are expected to increase the demand for processed palm oil.
He further said that palm oil plantations can also support food self-sufficiency by adopting intercropping or agroforestry mechanisms, as well as the cattle and oil palm integration system (SISKA).
This system aims to support food production and maintain environmental quality, as well as increase farmer incomes.
Palm oil has the potential to support energy security and support the achievement of national energy mix targets, including through the development of biofuels, he emphasized.
Biomass from oil palm fiber, shells, empty bunches, fronds, and replanting stems can also serve as an alternative source of energy.
He informed that palm oil production and management could potentially support the implementation of a circular economy. This would involve directing the components of oil palm for reuse into useful products.
Rachmat said that oil palm plantations can absorb carbon and release oxygen at different rates than forests.
"Land conversion causes carbon emissions, therefore, we need palm oil management that can support low-carbon development programs with peatland conversion as well as implementation of regenerative agriculture and sustainable palm oil," he added. Antara News
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Palm Biomass Has Huge Potential To Support Energy Resilience in Indonesia
JAKARTA – The biomass wastes from the palm oil industries are hugely potential to be used as a sustainable source of bioenergy to support the realization of energy self-sufficiency and resilience in Indonesia.
As most of the palm oil production is used for production of various kinds of food products, its biomass wastes can be used as feedstocks to produce biofuel with the technology of second generation biofuel or advanced biofuel. The application of second generation technology will reduce the impacts of trade-off between the use of palm oil for foods and for biofuel production with the first generation technology.
The palm oil has significantly contributed to Indonesian economy during the last few decades. Its production of crude palm oil (CPO) and palm kernel oil (PKO) have become one of Indonesia’s main export commodities and big contributor of foreign exchange. Based on data from the Indonesian Palm Oil Association (GAPKI) in 2024, Indonesia’s export volume of CPO+CPKO in 2023 reached 32.21 million tons with a total value of US$30.32 billion.
But as the world’s largest producer of palm oil from its total oil palm plantation acreage of 16.8 million hectares, the palm oil industries also have a huge potential of biomass wastes which can be used to produce biofuel to further increase its economic and environmental benefits to the country. From its palm fresh fruit bunches (FFB), only around 20-22 percent can be converted into palm oil products, while the rest will become wastes. (PASPI, 2021).
By optimally utilizing the palm oil wastes, Indonesia can prove that the palm oil industries have bigger potential of economic and environmental benefits. One of the uses of palm oil wastes that are useful and sustainable is the use of biomass or solid palm oil waste as second-generation biofuel.
The use of biomass will not cause a trade-off between food and energy, so that the European Union (European Union Renewable Energy Directives, RED) and the United States (US Renewable Fuels Standard, RFS) have recommend the use of second-generation biofuel from palm biomass wastes as the world’s most sustainable energy (Naik, et.al. 2010 in a journal entitled Production of First and Second Generation Biofuels).
PASPI (2021), in a report entitled “Potential for Utilization of Palm Wastes”, explains that palm biomass can be obtained during pruning in the forms of leaf stalks and palm stems during replanting. Other palm biomass wastes can be also obtained from palm oil mills in the forms of empty bunches, fibers, and fruit shells.
The results of Foo-Yuen Ng’s research (2011) on Malaysian oil palm plantations revealed that oil palm plantations can produce biomass from empty fruit bunches at around 1.4 tons per hectare per year; biomass from fruit fiber and shells at around 2.4 tons per hectare per year; biomass from fronds/leaves (oil palm frond) at around 9.3 tons per hectare per year; and biomass from oil palm trunks at around 2.9 tons per hectare per year.
Referring to the results of the study, PASPI in the same report concluded that Indonesia, with its total areas of oil palm plantations at 12.3 million hectares in 2017, will be able to produce a total of 196.8 million tons of dry biomass wastes per year. The biomass wastes consist of dry bunches at 17.22 million tons per year; fruit fiber and shells at 29.52 million tons per year; fronds and leaves at 114.39 million tons per year; and biomass from the palm trunks during replanting process at 35.67 million tons per year. GAPKI
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Malaysian Ministry Urges oil palm plantation owners to plan for replanting to maintain yield
KUALA LUMPUR, 12 Mac (Bernama) -- The Ministry of Plantation and Commodities (KPK) is urging oil palm plantation owners and companies to plan for replanting in order to sustain productivity with mature trees that provide optimal fresh fruit bunches (FFB) yields.
Deputy Minister Datuk Chan Foong Hin said that scheduled replanting programmes to reduce the acreage of old trees would help maintain farm productivity with mature trees aged 10 to 15 years.
“Palm trees older than 25 years are unproductive, and their heights also make harvesting difficult and increase labour costs.
“The rising number of old palm trees owing to the low replanting rate is also affecting the industry’s productivity,” he said when winding up the debate on the motion of thanks for royal address in the Dewan Negara today.
According to Chan, the average replanting rate for oil palm estates in the 2014-2024 period was only about 2.2 per cent, much lower than the recommended rate of four to five per cent.
“However, based on statistics from the Malaysian Palm Oil Board, the average FFB yield in estates has shown an increase in the past three consecutive years despite the replanting rate remaining below the recommended level.
“The FFB yield increased from 15.47 tonnes per hectare in 2021 to 15.49 tonnes per hectare in 2022, 15.79 tonnes per hectare in 2023 and 16.70 tonnes per hectare in 2024,” he said.
Chan said KPK will therefore continue to implement strategic measures to increase FFB yields in estates and ensure that Malaysia's palm oil industry remains competitive and continues to contribute to the national economic growth. BERNAMA
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ARB IOT Group Limited Secures Yearly Recurring Order of Approximately USD20 Million in Smart IoT Palm Farming Business in Sabah
Kuala Lumpur, Malaysia, March 11, 2025 (GLOBE NEWSWIRE) -- ARB IOT Group Limited (“ARB IOT” or the “Company”) (NASDAQ: ARBB) is pleased to announce that its wholly-owned subsidiary, ARB Agro Technology Sdn Bhd through its exclusive wholesaler, distributor, and system integrator, Whizzl Sdn Bhd, has obtained an order to manage 3,000 acres of palm oil plantations with its AI Smart IoT Palm Farming System which is expected to enhance the operational efficiency of the palm oil estates and improve the yield in the Sabah region, Malaysia. Palm oil production is a major industry in Malaysia, and palm oil is one of the country’s leading agricultural exports globally.
Malaysia is the world’s second-largest producer and exporter of palm oil, after Indonesia. In 2022, it exported around 15 million metric tons of palm oil and palm-based products. These exports were valued at around 137 billion Malaysian ringgit (approximately USD 30.4 billion). In total, the palm oil industry contributed around 35 billion ringgit (approximately USD 7.8 billion) to Malaysia’s total gross domestic product.
The Company’s Smart Farming System is designed to enhance efficiency, optimize resource allocation, and improve productivity for palm plantation. Leveraging Internet of Things (IoT) technology, this system provides real-time monitoring, data analytics, and automation to support precision fertilization and pesticides, ultimately driving sustainability and profitability in the agricultural palm oil sector in Malaysia.
Dato’ Sri Liew Kok Leong, CEO of ARB IOT said “The partnership with Whizzl marks a significant milestone for ARB IOT as we expand the reach of our Smart Farming System to one of the key regions in Malaysia. Through our collaboration with Whizzl in the Smart IoT Palm Farming business, we anticipate generating additional yearly recurring revenue of approximately USD 20 million. With Whizzl’s expertise and market presence, we are confident that more farmers and plantation owners will benefit from our cutting-edge smart farming technology. Morningstar
Indonesia to carry out downstreaming of palm industries in four stages
Jakarta (ANTARA) - The Indonesian government will carry out the downstreaming of the palm oil industry in four stages, National Development Planning Minister Rachmat Pambudy has said.
As it is a strategic commodity, based on the National Long-Term Development Plan 2025–2045, the downstreaming of palm oil will be carried out in at least four stages, he informed.
They are strengthening the industrialization ecosystem, increasing production capacity for domestic needs, strengthening industrial competitiveness toward global expansion, and achieving net exports.
"We hope that palm oil downstreaming will support high and sustainable growth," he said at an online seminar held by the IPB University on Tuesday.
According to Rachmat, palm oil downstreaming has good potential, considering Indonesia's position as the main producer of crude palm oil (CPO). The nation accounts for 68.7 percent of the total production, he added.
In addition, priority government programs, such as the mandatory B35 biofuel as well as the free nutritious meals program, are expected to increase the demand for processed palm oil.
He further said that palm oil plantations can also support food self-sufficiency by adopting intercropping or agroforestry mechanisms, as well as the cattle and oil palm integration system (SISKA).
This system aims to support food production and maintain environmental quality, as well as increase farmer incomes.
Palm oil has the potential to support energy security and support the achievement of national energy mix targets, including through the development of biofuels, he emphasized.
Biomass from oil palm fiber, shells, empty bunches, fronds, and replanting stems can also serve as an alternative source of energy.
He informed that palm oil production and management could potentially support the implementation of a circular economy. This would involve directing the components of oil palm for reuse into useful products.
Rachmat said that oil palm plantations can absorb carbon and release oxygen at different rates than forests.
"Land conversion causes carbon emissions, therefore, we need palm oil management that can support low-carbon development programs with peatland conversion as well as implementation of regenerative agriculture and sustainable palm oil," he added. Antara News
---------
Palm Biomass Has Huge Potential To Support Energy Resilience in Indonesia
JAKARTA – The biomass wastes from the palm oil industries are hugely potential to be used as a sustainable source of bioenergy to support the realization of energy self-sufficiency and resilience in Indonesia.
As most of the palm oil production is used for production of various kinds of food products, its biomass wastes can be used as feedstocks to produce biofuel with the technology of second generation biofuel or advanced biofuel. The application of second generation technology will reduce the impacts of trade-off between the use of palm oil for foods and for biofuel production with the first generation technology.
The palm oil has significantly contributed to Indonesian economy during the last few decades. Its production of crude palm oil (CPO) and palm kernel oil (PKO) have become one of Indonesia’s main export commodities and big contributor of foreign exchange. Based on data from the Indonesian Palm Oil Association (GAPKI) in 2024, Indonesia’s export volume of CPO+CPKO in 2023 reached 32.21 million tons with a total value of US$30.32 billion.
But as the world’s largest producer of palm oil from its total oil palm plantation acreage of 16.8 million hectares, the palm oil industries also have a huge potential of biomass wastes which can be used to produce biofuel to further increase its economic and environmental benefits to the country. From its palm fresh fruit bunches (FFB), only around 20-22 percent can be converted into palm oil products, while the rest will become wastes. (PASPI, 2021).
By optimally utilizing the palm oil wastes, Indonesia can prove that the palm oil industries have bigger potential of economic and environmental benefits. One of the uses of palm oil wastes that are useful and sustainable is the use of biomass or solid palm oil waste as second-generation biofuel.
The use of biomass will not cause a trade-off between food and energy, so that the European Union (European Union Renewable Energy Directives, RED) and the United States (US Renewable Fuels Standard, RFS) have recommend the use of second-generation biofuel from palm biomass wastes as the world’s most sustainable energy (Naik, et.al. 2010 in a journal entitled Production of First and Second Generation Biofuels).
PASPI (2021), in a report entitled “Potential for Utilization of Palm Wastes”, explains that palm biomass can be obtained during pruning in the forms of leaf stalks and palm stems during replanting. Other palm biomass wastes can be also obtained from palm oil mills in the forms of empty bunches, fibers, and fruit shells.
The results of Foo-Yuen Ng’s research (2011) on Malaysian oil palm plantations revealed that oil palm plantations can produce biomass from empty fruit bunches at around 1.4 tons per hectare per year; biomass from fruit fiber and shells at around 2.4 tons per hectare per year; biomass from fronds/leaves (oil palm frond) at around 9.3 tons per hectare per year; and biomass from oil palm trunks at around 2.9 tons per hectare per year.
Referring to the results of the study, PASPI in the same report concluded that Indonesia, with its total areas of oil palm plantations at 12.3 million hectares in 2017, will be able to produce a total of 196.8 million tons of dry biomass wastes per year. The biomass wastes consist of dry bunches at 17.22 million tons per year; fruit fiber and shells at 29.52 million tons per year; fronds and leaves at 114.39 million tons per year; and biomass from the palm trunks during replanting process at 35.67 million tons per year. GAPKI
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Malaysian Ministry Urges oil palm plantation owners to plan for replanting to maintain yield
KUALA LUMPUR, 12 Mac (Bernama) -- The Ministry of Plantation and Commodities (KPK) is urging oil palm plantation owners and companies to plan for replanting in order to sustain productivity with mature trees that provide optimal fresh fruit bunches (FFB) yields.
Deputy Minister Datuk Chan Foong Hin said that scheduled replanting programmes to reduce the acreage of old trees would help maintain farm productivity with mature trees aged 10 to 15 years.
“Palm trees older than 25 years are unproductive, and their heights also make harvesting difficult and increase labour costs.
“The rising number of old palm trees owing to the low replanting rate is also affecting the industry’s productivity,” he said when winding up the debate on the motion of thanks for royal address in the Dewan Negara today.
According to Chan, the average replanting rate for oil palm estates in the 2014-2024 period was only about 2.2 per cent, much lower than the recommended rate of four to five per cent.
“However, based on statistics from the Malaysian Palm Oil Board, the average FFB yield in estates has shown an increase in the past three consecutive years despite the replanting rate remaining below the recommended level.
“The FFB yield increased from 15.47 tonnes per hectare in 2021 to 15.49 tonnes per hectare in 2022, 15.79 tonnes per hectare in 2023 and 16.70 tonnes per hectare in 2024,” he said.
Chan said KPK will therefore continue to implement strategic measures to increase FFB yields in estates and ensure that Malaysia's palm oil industry remains competitive and continues to contribute to the national economic growth. BERNAMA
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ARB IOT Group Limited Secures Yearly Recurring Order of Approximately USD20 Million in Smart IoT Palm Farming Business in Sabah
Kuala Lumpur, Malaysia, March 11, 2025 (GLOBE NEWSWIRE) -- ARB IOT Group Limited (“ARB IOT” or the “Company”) (NASDAQ: ARBB) is pleased to announce that its wholly-owned subsidiary, ARB Agro Technology Sdn Bhd through its exclusive wholesaler, distributor, and system integrator, Whizzl Sdn Bhd, has obtained an order to manage 3,000 acres of palm oil plantations with its AI Smart IoT Palm Farming System which is expected to enhance the operational efficiency of the palm oil estates and improve the yield in the Sabah region, Malaysia. Palm oil production is a major industry in Malaysia, and palm oil is one of the country’s leading agricultural exports globally.
Malaysia is the world’s second-largest producer and exporter of palm oil, after Indonesia. In 2022, it exported around 15 million metric tons of palm oil and palm-based products. These exports were valued at around 137 billion Malaysian ringgit (approximately USD 30.4 billion). In total, the palm oil industry contributed around 35 billion ringgit (approximately USD 7.8 billion) to Malaysia’s total gross domestic product.
The Company’s Smart Farming System is designed to enhance efficiency, optimize resource allocation, and improve productivity for palm plantation. Leveraging Internet of Things (IoT) technology, this system provides real-time monitoring, data analytics, and automation to support precision fertilization and pesticides, ultimately driving sustainability and profitability in the agricultural palm oil sector in Malaysia.
Dato’ Sri Liew Kok Leong, CEO of ARB IOT said “The partnership with Whizzl marks a significant milestone for ARB IOT as we expand the reach of our Smart Farming System to one of the key regions in Malaysia. Through our collaboration with Whizzl in the Smart IoT Palm Farming business, we anticipate generating additional yearly recurring revenue of approximately USD 20 million. With Whizzl’s expertise and market presence, we are confident that more farmers and plantation owners will benefit from our cutting-edge smart farming technology. Morningstar
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March 11, 2025
Seized Palm Oil Lands Handed Over to State-Owned Companies
KBRN, Jakarta: The Attorney General's Office (AGO) has handed over the management of 221,000 hectares of palm oil plantation confiscated from a corruption case to the State-Owned Enterprises (BUMN) Ministry on Monday, March 10, 2025.
The land is part of the corruption case involving PT Duta Palma and will be managed directly by state-owned company PT Agrinas Palma Nusantara.
This initiative was made to support the government's food self-sufficiency program. The palm oil plantation is located in Riau province, spread across Kuantan Singingi, Rokan Hulu, and Kampar regencies.
"This involves substantial evidence in the form of long-established, productive palm oil plantations located in Indragiri Hulu Regency, with the suspect being a corporation," Special Crimes Deputy Attorney General Febrie Ardiansyah said in Jakarta, as reported by rri.co.id.
Febrie stated that the prosecutor's office has limitations in managing the evidence. The concern is not only its role as a component in the legal process but also the continuity of the business.
"Because there are quite a number of workers here, the potential of the plantation must be maintained. Additionally, there are contracts involving rights and obligations within the business framework that must not be disrupted," said Febrie.
He explained that the palm oil plantation land belongs to nine companies under PT Duta Palma Group. Of these, the suspects and their evidence from seven companies have been handed over from investigators to prosecutors.
"Among the nine corporate suspects, there are 37 plots of land and buildings related to palm oil plantation assets, covering a total area of 221,868.421 hectares.
Of these plots of land, seven plots covering 43,824.52 hectares are located in the Riau Province's Regencies of Kuantan Singingi, Rokan Hulu, Kampar, and Pelawan. Meanwhile, 21 other plots covering 137,626.01 hectares of land are located in Bengkayang and Sambas Regencies in West Kalimantan.
The AGO, therefore, entrusted the management of the land the BUMN Ministry. "The condition of the evidence handed over is satisfactory, reflecting the results of thorough coordination by the AGO, with support from relevant ministries," he concluded. RRI
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Confiscated oil palm land transferred to Agrinas for green energy production
State-owned palm oil company PT Agrinas Palma Nusantara has targeted the confiscated land it manages to produce at least 25 tons per hectare (ha) of palm oil per year, with a focus in the production of biofuel for diesel fuel mixtures − biodiesel.
President Director of Agrinas Palma Nusantara, Lieutenant General (ret.) Agus Sutomo, said the direction taken by the company is in line with the energy self-sufficiency target of the Prabowo Subianto-Gibran Rakabuming Raka administration. The product will be the ultimate goal of oil palm land management.
Agrinas manages oil palm land, which had been confiscated by the Attorney General’s Office (AGO) as evidence from the investigation into a corruption case involving oil palm plantation of PT Duta Palma Group.
The oil palm plantation was handed over by the AGO to the Ministry of State-Owned Enterprises (SOEs) to be managed by Agrinas Palma Nusantara.
Agus said that until now he does not know whether the management of the confiscated land will be carried out entirely by Agrinas or whether there will be cooperation with other parties, such as State-owned plantation company PT Perkebunan Nusantara IV.
Land handover
Attorney General ST Burhanuddin, along with Minister of SOEs Erick Thohir and Minister of Defense Sjafrie Sjamsoeddin, handed over some 222 thousand ha of confiscated oil palm plantation land to PT Agrinas Palma Nusantara on Monday, March 10, 2025.
Junior Attorney General for Special Crimes, Febrie Adriansyah, revealed said that the 222 thousand ha of plot of land was evidence confiscated from the investigation into corruption case at PT Duta Palma Group's oil palm plantation business activities.
"This location is in Indragiri Hulu Regency (Riau), where the suspect is a corporation. There are nine companies that are members of PT Duta Palma Group," Febrie said on Monday, March 10, 2025.
He cited that seven companies have handed over suspects and evidence from investigators to the public prosecutor. Meanwhile, two other companies are still under investigation. However, he did not mention the nine companies.
"Of the nine corporate suspects, there are 37 plots of land for oil palm plantation confiscated with a total area of 221,868.421 ha or some 222 thousand ha," he said.
The seven plots of land covering an area of 43,824.52 ha are located in Kuantan Singingi, Rokan Hulu, Kampar, and Pelalawan regencies of Riau province. Meanwhile, the other 21 plots of oil palm plantations covering an area of 137,626.01 ha are spread across Bengkayang and Sambas regencies in West Kalimantan province.
Febrie said that the plantation evidence is an important instrument not only because it is part of law enforcement, but also has many implications. He, however, said that the Attorney General’s Office has limitations in managing this evidence.
"There are workers that need to continue working, potential plantations that must be maintained, contracts of rights and obligations in business qualifications that must not be terminated. The Attorney General's Office has since the beginning appealed to the Ministry of SOEs so that this confiscated asset can be managed," he said. Indonesia Business Post
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RI eyes US$49B investment in food downstreaming to boost economy, cut imports
Minister of Agriculture, Amran Sulaiman, has revealed of Rp802.58 trillion (US$49 billion) investment opportunity in the food downstreaming program for 11 commodities, with initial project focusing on developing seven commodities of around Rp406 trillion investment.
"The food downstreaming program will improve people's welfare, save foreign exchange, and drive the regional economy," Amran said on Monday, March 10, 2025.
The seven commodities are garlic, cassava, palm oil, coconut, sugar cane, palm and cattle. The government is conducting this food downstreaming to stop imports of goods that can be produced by the local agricultural sector and increase the added value of export-oriented food products.
The agricultural sector with the largest downstream investment needs is palm oil worth Rp321.13 trillion. Two products are set as its main focus, namely crude palm oil (CPO) and biodiesel.
Then, the coconut downstream program, which will utilize productive coconut trees that have been planted on 300 thousand hectares (ha) of land in North Sulawesi, North Maluku, West Java, West Kalimantan and Riau.
Cassava downstreaming will absorb the largest workforce of up to 1.45 million people. The potential investment of Rp4.23 trillion will utilize existing cassava land of 300 thousand ha to produce raw materials for five tapioca flour factories and five fermented cassava flour factories (Mocaf).
Investment in the agricultural sector will drive other sectors and it will add up to 33 times more. Statistics Indonesia (BPS) has recorded that agricultural investment worth Rp1,366 trillion in 2016 successfully drove six economic sectors with a total value of Rp45,336 trillion.
Amran noted that investment in the agricultural sector in 2016 brought fresh funds worth Rp6,797 trillion to the manufacturing sector. The sector with the largest investment value was the service sector worth Rp30,369 trillion. Indonesia Business Post
Seized Palm Oil Lands Handed Over to State-Owned Companies
KBRN, Jakarta: The Attorney General's Office (AGO) has handed over the management of 221,000 hectares of palm oil plantation confiscated from a corruption case to the State-Owned Enterprises (BUMN) Ministry on Monday, March 10, 2025.
The land is part of the corruption case involving PT Duta Palma and will be managed directly by state-owned company PT Agrinas Palma Nusantara.
This initiative was made to support the government's food self-sufficiency program. The palm oil plantation is located in Riau province, spread across Kuantan Singingi, Rokan Hulu, and Kampar regencies.
"This involves substantial evidence in the form of long-established, productive palm oil plantations located in Indragiri Hulu Regency, with the suspect being a corporation," Special Crimes Deputy Attorney General Febrie Ardiansyah said in Jakarta, as reported by rri.co.id.
Febrie stated that the prosecutor's office has limitations in managing the evidence. The concern is not only its role as a component in the legal process but also the continuity of the business.
"Because there are quite a number of workers here, the potential of the plantation must be maintained. Additionally, there are contracts involving rights and obligations within the business framework that must not be disrupted," said Febrie.
He explained that the palm oil plantation land belongs to nine companies under PT Duta Palma Group. Of these, the suspects and their evidence from seven companies have been handed over from investigators to prosecutors.
"Among the nine corporate suspects, there are 37 plots of land and buildings related to palm oil plantation assets, covering a total area of 221,868.421 hectares.
Of these plots of land, seven plots covering 43,824.52 hectares are located in the Riau Province's Regencies of Kuantan Singingi, Rokan Hulu, Kampar, and Pelawan. Meanwhile, 21 other plots covering 137,626.01 hectares of land are located in Bengkayang and Sambas Regencies in West Kalimantan.
The AGO, therefore, entrusted the management of the land the BUMN Ministry. "The condition of the evidence handed over is satisfactory, reflecting the results of thorough coordination by the AGO, with support from relevant ministries," he concluded. RRI
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Confiscated oil palm land transferred to Agrinas for green energy production
State-owned palm oil company PT Agrinas Palma Nusantara has targeted the confiscated land it manages to produce at least 25 tons per hectare (ha) of palm oil per year, with a focus in the production of biofuel for diesel fuel mixtures − biodiesel.
President Director of Agrinas Palma Nusantara, Lieutenant General (ret.) Agus Sutomo, said the direction taken by the company is in line with the energy self-sufficiency target of the Prabowo Subianto-Gibran Rakabuming Raka administration. The product will be the ultimate goal of oil palm land management.
Agrinas manages oil palm land, which had been confiscated by the Attorney General’s Office (AGO) as evidence from the investigation into a corruption case involving oil palm plantation of PT Duta Palma Group.
The oil palm plantation was handed over by the AGO to the Ministry of State-Owned Enterprises (SOEs) to be managed by Agrinas Palma Nusantara.
Agus said that until now he does not know whether the management of the confiscated land will be carried out entirely by Agrinas or whether there will be cooperation with other parties, such as State-owned plantation company PT Perkebunan Nusantara IV.
Land handover
Attorney General ST Burhanuddin, along with Minister of SOEs Erick Thohir and Minister of Defense Sjafrie Sjamsoeddin, handed over some 222 thousand ha of confiscated oil palm plantation land to PT Agrinas Palma Nusantara on Monday, March 10, 2025.
Junior Attorney General for Special Crimes, Febrie Adriansyah, revealed said that the 222 thousand ha of plot of land was evidence confiscated from the investigation into corruption case at PT Duta Palma Group's oil palm plantation business activities.
"This location is in Indragiri Hulu Regency (Riau), where the suspect is a corporation. There are nine companies that are members of PT Duta Palma Group," Febrie said on Monday, March 10, 2025.
He cited that seven companies have handed over suspects and evidence from investigators to the public prosecutor. Meanwhile, two other companies are still under investigation. However, he did not mention the nine companies.
"Of the nine corporate suspects, there are 37 plots of land for oil palm plantation confiscated with a total area of 221,868.421 ha or some 222 thousand ha," he said.
The seven plots of land covering an area of 43,824.52 ha are located in Kuantan Singingi, Rokan Hulu, Kampar, and Pelalawan regencies of Riau province. Meanwhile, the other 21 plots of oil palm plantations covering an area of 137,626.01 ha are spread across Bengkayang and Sambas regencies in West Kalimantan province.
Febrie said that the plantation evidence is an important instrument not only because it is part of law enforcement, but also has many implications. He, however, said that the Attorney General’s Office has limitations in managing this evidence.
"There are workers that need to continue working, potential plantations that must be maintained, contracts of rights and obligations in business qualifications that must not be terminated. The Attorney General's Office has since the beginning appealed to the Ministry of SOEs so that this confiscated asset can be managed," he said. Indonesia Business Post
---------
RI eyes US$49B investment in food downstreaming to boost economy, cut imports
Minister of Agriculture, Amran Sulaiman, has revealed of Rp802.58 trillion (US$49 billion) investment opportunity in the food downstreaming program for 11 commodities, with initial project focusing on developing seven commodities of around Rp406 trillion investment.
"The food downstreaming program will improve people's welfare, save foreign exchange, and drive the regional economy," Amran said on Monday, March 10, 2025.
The seven commodities are garlic, cassava, palm oil, coconut, sugar cane, palm and cattle. The government is conducting this food downstreaming to stop imports of goods that can be produced by the local agricultural sector and increase the added value of export-oriented food products.
The agricultural sector with the largest downstream investment needs is palm oil worth Rp321.13 trillion. Two products are set as its main focus, namely crude palm oil (CPO) and biodiesel.
Then, the coconut downstream program, which will utilize productive coconut trees that have been planted on 300 thousand hectares (ha) of land in North Sulawesi, North Maluku, West Java, West Kalimantan and Riau.
Cassava downstreaming will absorb the largest workforce of up to 1.45 million people. The potential investment of Rp4.23 trillion will utilize existing cassava land of 300 thousand ha to produce raw materials for five tapioca flour factories and five fermented cassava flour factories (Mocaf).
Investment in the agricultural sector will drive other sectors and it will add up to 33 times more. Statistics Indonesia (BPS) has recorded that agricultural investment worth Rp1,366 trillion in 2016 successfully drove six economic sectors with a total value of Rp45,336 trillion.
Amran noted that investment in the agricultural sector in 2016 brought fresh funds worth Rp6,797 trillion to the manufacturing sector. The sector with the largest investment value was the service sector worth Rp30,369 trillion. Indonesia Business Post
March 10. 2025
The end of cheap palm oil? Output stalls as biodiesel demand surges
Used in everything from cakes and frying fats to cosmetics and cleaning products, palm oil makes up more than half of global vegetable oil shipments and is especially popular among consumers in emerging markets, led by India.
After decades of cheap palm oil, thanks to booming output and a battle for market share, output is slowing and Indonesia is using more to make biodiesel, respected industry analyst Dorab Mistry said.
"Those days of $400-per-ton discounts are gone," added Mistry, a director of Indian consumer goods company Godrej International. "Palm oil won't be that cheap again as long as Indonesia keeps prioritising biodiesel."
Indonesia increased the mandatory mix of palm oil in biodiesel to 40% this year, and is studying moving to 50% in 2026, as well as a 3% blend for jet fuel next year, as it seeks to curb fuel imports.
The biodiesel push will reduce Indonesia's exports to just 20 million metric tons in 2030, down a third from 29.5 million in 2024, estimates Eddy Martono, chairman of the southeast Asian nation's largest palm oil association, GAPKI.
Jakarta's biodiesel mandate, coupled with lower production because of floods in neighbouring Malaysia, has already lifted palm oil prices above rival soyoil, prompting buyers to cut purchases.
In India, the largest buyer of vegetable oils, crude palm oil (CPO) has commanded a premium over crude soybean oil for the past six months, sometimes exceeding $100 per ton. As recently as late 2022, palm oil traded at discounts of more than $400. Reuters
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Global Cooking Oil Reformation: How Indonesia's Biodiesel Push Alters Palm Oil Market
The global palm oil market is undergoing significant changes due to Indonesia's biodiesel initiative and stagnant production, causing prices to rise. This shift is influencing not only palm oil but also rival vegetable oils, complicating inflation control efforts in major consumer countries such as India.
The global palm oil market is facing significant upheaval as Indonesia, the world's largest producer, prioritizes biodiesel, effectively lifting palm oil prices. Industry analysts reveal that stagnating production, coupled with this biodiesel push, is eliminating the traditional cost advantage palm oil held over competitor oils, straining consumers worldwide.
Indonesia's increased use of palm oil for biodiesel, mandated at 40% this year with potential rise to 50% by 2026, is poised to cut exports by a third by 2030, as stated by the GAPKI. The initiative, along with natural disasters affecting production in Malaysia, has set the stage for unprecedented price hikes, significantly impacting India's massive market.
As stress grows over price inflation, producers and buyers are scrambling for solutions. Calls for relaxing Indonesia's new plantation moratorium echo across the industry, highlighting concerns of future shortages. The global demand for palm oil, both for chemicals and biofuels, promises continued pressure on prices and potential rippling effects on rival oil markets. Dev Discourse
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Indonesia to run palm plantations seized from troubled firm Duta Palma Group
(March 10): The Indonesian government took over management of palm oil plantations seized from a corporation facing a graft probe, under an initiative that may be extended to other troubled commodity-production sites.
State-owned PT Agrinas Palma Nusantara will take over the running of 221,000ha (546,000 acres) — roughly the size of Tokyo — in Riau and West Kalimantan provinces from Duta Palma Group, based on a deal signed at a press conference by State-Owned Enterprises Minister Erick Thohir and Attorney General ST Burhanuddin on Monday.
The plantations were seized by the Attorney General’s Office as part of a long-running corruption probe into Duta Palma, which allegedly cultivated the area without proper permits between 2003 and 2022, according to media reports. The firm is optimistic it can win the case, which will allow them to get their assets back, said Handika Honggowongso, the company’s lawyer.
Indonesia, the world’s biggest palm oil producer, has been trying to clamp down on illegal plantations since 2019 in an attempt to boost state revenues. Authorities will also seize and transfer other commodity assets under the initiative, saying it’s necessary for continued operations while companies tackle long legal processes.
“We are seeking help for other cases as well, like for mines, where we face limits in managing the asset, whereas state-owned enterprises have the capability to manage them,” said Febrie Adriansyah, assistant attorney general for special crimes, at the press conference in Jakarta.
Jakarta-based Agrinas Palma, currently headed by retired armed forces general Agus Sutomo, was established in January by repurposing state-owned construction company PT Indra Karya, according to its website. The EdgeMy/ Bloomberg
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4.89 Mln Ha Of Oil Palm Land MSPO Certified As At December 2024
KUALA LUMPUR, March 10 (Bernama) -- A total of 4.89 million hectares (ha), or 86.47 per cent of palm oil cultivation areas in Malaysia, have received certification under the Malaysian Sustainable Palm Oil (MSPO) standard as of Dec 31, 2024, demonstrating Malaysia’s commitment to sustainability.
Deputy Minister of Plantation and Commodities Datuk Chan Foong Hin said that commitment towards MSPO certification not only enhances the credibility and visibility of Malaysian sustainable palm oil in the international market but also ensures compliance with increasingly stringent global regulations.
He elaborated that this includes the European Union Deforestation-Free Regulation (EUDR), which will take effect on Dec 30, 2025, for players in the palm oil industry and by June 30, 2026, for small and medium enterprises (SMEs).
“A gap analysis study comparing the MSPO 2.0 certification scheme with the EUDR legislation, conducted by the European Forest Institute (EFI), found that MSPO certification has the potential to facilitate European Union (EU) operators’ compliance with the EUDR.
“The results of this study also provide guidance for adjusting MSPO certification to meet the additional information requirements of the EUDR,” he said during a question-and-answer session in the Dewan Negara today.
Chan was responding to Senator Datin Ros Suryani Alang's question about the extent to which the country’s palm oil output is strong as a sustainable, high-quality product recognised globally.
Additionally, he said the MSPO certificate recognition in the International Trade Centre (ITC) Sustainability Map in 2024 further strengthens Malaysia’s commitment to producing sustainable palm oil.
“The official listing of MSPO certification in the ITC Sustainability Map not only solidifies its position as an internationally recognised sustainability certification but also enhances the visibility of MSPO among global buyers and trade organisations,” he added. Bernama
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The end of cheap palm oil? Output stalls as biodiesel demand surges
- Palm oil production growth plummets to 1% from 7%
- Indonesia boosts biodiesel consumption, curbs exports
- Palm oil prices surge past soyoil amid tight supplies
- Biofuel demand to drive up vegoil prices
Used in everything from cakes and frying fats to cosmetics and cleaning products, palm oil makes up more than half of global vegetable oil shipments and is especially popular among consumers in emerging markets, led by India.
After decades of cheap palm oil, thanks to booming output and a battle for market share, output is slowing and Indonesia is using more to make biodiesel, respected industry analyst Dorab Mistry said.
"Those days of $400-per-ton discounts are gone," added Mistry, a director of Indian consumer goods company Godrej International. "Palm oil won't be that cheap again as long as Indonesia keeps prioritising biodiesel."
Indonesia increased the mandatory mix of palm oil in biodiesel to 40% this year, and is studying moving to 50% in 2026, as well as a 3% blend for jet fuel next year, as it seeks to curb fuel imports.
The biodiesel push will reduce Indonesia's exports to just 20 million metric tons in 2030, down a third from 29.5 million in 2024, estimates Eddy Martono, chairman of the southeast Asian nation's largest palm oil association, GAPKI.
Jakarta's biodiesel mandate, coupled with lower production because of floods in neighbouring Malaysia, has already lifted palm oil prices above rival soyoil, prompting buyers to cut purchases.
In India, the largest buyer of vegetable oils, crude palm oil (CPO) has commanded a premium over crude soybean oil for the past six months, sometimes exceeding $100 per ton. As recently as late 2022, palm oil traded at discounts of more than $400. Reuters
---------
Global Cooking Oil Reformation: How Indonesia's Biodiesel Push Alters Palm Oil Market
The global palm oil market is undergoing significant changes due to Indonesia's biodiesel initiative and stagnant production, causing prices to rise. This shift is influencing not only palm oil but also rival vegetable oils, complicating inflation control efforts in major consumer countries such as India.
The global palm oil market is facing significant upheaval as Indonesia, the world's largest producer, prioritizes biodiesel, effectively lifting palm oil prices. Industry analysts reveal that stagnating production, coupled with this biodiesel push, is eliminating the traditional cost advantage palm oil held over competitor oils, straining consumers worldwide.
Indonesia's increased use of palm oil for biodiesel, mandated at 40% this year with potential rise to 50% by 2026, is poised to cut exports by a third by 2030, as stated by the GAPKI. The initiative, along with natural disasters affecting production in Malaysia, has set the stage for unprecedented price hikes, significantly impacting India's massive market.
As stress grows over price inflation, producers and buyers are scrambling for solutions. Calls for relaxing Indonesia's new plantation moratorium echo across the industry, highlighting concerns of future shortages. The global demand for palm oil, both for chemicals and biofuels, promises continued pressure on prices and potential rippling effects on rival oil markets. Dev Discourse
---------
Indonesia to run palm plantations seized from troubled firm Duta Palma Group
(March 10): The Indonesian government took over management of palm oil plantations seized from a corporation facing a graft probe, under an initiative that may be extended to other troubled commodity-production sites.
State-owned PT Agrinas Palma Nusantara will take over the running of 221,000ha (546,000 acres) — roughly the size of Tokyo — in Riau and West Kalimantan provinces from Duta Palma Group, based on a deal signed at a press conference by State-Owned Enterprises Minister Erick Thohir and Attorney General ST Burhanuddin on Monday.
The plantations were seized by the Attorney General’s Office as part of a long-running corruption probe into Duta Palma, which allegedly cultivated the area without proper permits between 2003 and 2022, according to media reports. The firm is optimistic it can win the case, which will allow them to get their assets back, said Handika Honggowongso, the company’s lawyer.
Indonesia, the world’s biggest palm oil producer, has been trying to clamp down on illegal plantations since 2019 in an attempt to boost state revenues. Authorities will also seize and transfer other commodity assets under the initiative, saying it’s necessary for continued operations while companies tackle long legal processes.
“We are seeking help for other cases as well, like for mines, where we face limits in managing the asset, whereas state-owned enterprises have the capability to manage them,” said Febrie Adriansyah, assistant attorney general for special crimes, at the press conference in Jakarta.
Jakarta-based Agrinas Palma, currently headed by retired armed forces general Agus Sutomo, was established in January by repurposing state-owned construction company PT Indra Karya, according to its website. The EdgeMy/ Bloomberg
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4.89 Mln Ha Of Oil Palm Land MSPO Certified As At December 2024
KUALA LUMPUR, March 10 (Bernama) -- A total of 4.89 million hectares (ha), or 86.47 per cent of palm oil cultivation areas in Malaysia, have received certification under the Malaysian Sustainable Palm Oil (MSPO) standard as of Dec 31, 2024, demonstrating Malaysia’s commitment to sustainability.
Deputy Minister of Plantation and Commodities Datuk Chan Foong Hin said that commitment towards MSPO certification not only enhances the credibility and visibility of Malaysian sustainable palm oil in the international market but also ensures compliance with increasingly stringent global regulations.
He elaborated that this includes the European Union Deforestation-Free Regulation (EUDR), which will take effect on Dec 30, 2025, for players in the palm oil industry and by June 30, 2026, for small and medium enterprises (SMEs).
“A gap analysis study comparing the MSPO 2.0 certification scheme with the EUDR legislation, conducted by the European Forest Institute (EFI), found that MSPO certification has the potential to facilitate European Union (EU) operators’ compliance with the EUDR.
“The results of this study also provide guidance for adjusting MSPO certification to meet the additional information requirements of the EUDR,” he said during a question-and-answer session in the Dewan Negara today.
Chan was responding to Senator Datin Ros Suryani Alang's question about the extent to which the country’s palm oil output is strong as a sustainable, high-quality product recognised globally.
Additionally, he said the MSPO certificate recognition in the International Trade Centre (ITC) Sustainability Map in 2024 further strengthens Malaysia’s commitment to producing sustainable palm oil.
“The official listing of MSPO certification in the ITC Sustainability Map not only solidifies its position as an internationally recognised sustainability certification but also enhances the visibility of MSPO among global buyers and trade organisations,” he added. Bernama
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March 08, 2025
Alarming’ rise in palm oil products being imported into the EU to make biofuels due to loophole
Loopholes in EU regulations appear to be driving unsustainable and fraudulent palm oil trade.
EIA’s new briefing The Palm Oil Black Box – EU trade loopholes analyses EU trade patterns for palm oil and reveals a significant increase in the imports of waste and residues used to make biofuels.
Biofuels are renewable fuels used as alternatives to fossil fuels. Palm oil and its products can be turned into biodiesel, which is mixed with conventional diesel and sold at petrol stations.
Waste and residue products are incentivised by the EU Renewable Energy (RED) scheme that aims to increase the use of renewable energy in the bloc. Such products include used cooking oil, which can be palm oil previously used for cooking.
Unlike biodiesel made directly from virgin palm oil, such products can be exempt from the EU RED’s sustainability criteria and/or can be counted twice towards renewable energy targets.
Oil palm products used to make biofuels are also largely excluded from being regulated under the new EU Deforestation Regulation (EUDR). The EUDR requires certain palm oil products to be legal and to have not caused deforestation. It comes into effect at the end of this year.
This means there is a significant loophole whereby oil palm products used to make biofuels are not effectively regulated by either regulation.
EIA Senior Forests Campaigner Siobhan Pearce said: “It’s very alarming to see this trend of increasing imports of waste and residue products that can be derived from oil palm being used to make biofuels.”
Some of the products – such as the wastewater from palm oil mills known as palm oil mill effluent (POME) – reportedly exceed what could feasibly be produced.
The pressing concern is that these waste and residue products being used to make biofuels are in fact virgin palm oil that has come from unsustainable sources – which counts as fraud and is a failure of regulations.
The EU RED initiative heavily relies on the use of certification schemes to ensure compliance. Their use needs to be urgently reviewed to assess if they are fit for purpose.
Unwittingly. we could all be consuming such products. The standard diesel sold at petrol stations contains up to seven per cent biodiesel, labelled as B7.
The Palm Oil Black Box provides an overall analysis of multiple trade codes used for oil palm products. Tracking the overall trade in oil palm is complex due to its many products and uses; many of the international trade codes are not exclusively palm oil, which makes trade opaque and hides the real picture.
To counteract the concerns, EIA recommends the EU:
Malaysia-India Pact to Boost Awareness on Palm Oil's Health Benefits
The Malaysian Palm Oil Council and the Oil Technologists' Association of India have partnered to promote Malaysian palm oil's health benefits in India. The collaboration aims to educate consumers, engage the industry, and validate research to enhance palm oil's image and foster sustainable trade between the nations.
he Malaysian Palm Oil Council (MPOC) has joined forces with the Oil Technologists' Association of India (OTAI) to enhance awareness about the health benefits of Malaysian palm oil in the Indian market. This initiative aims to dismantle prevailing misconceptions and underscore palm oil's significance in nutrition, health, and industrial use.
India stands as a critical market for Malaysian palm oil, and this agreement aims to spearhead targeted campaigns focused on consumer education, industry involvement, and scientific research. Ms. Belvinder Sron, CEO of MPOC, stressed the importance of this initiative in promoting the factual benefits of palm oil within India's food sector.
OTAI, established in 1943, is poised to play a pivotal role in this collaboration, bringing its extensive network and expertise. Together, MPOC and OTAI will facilitate seminars, workshops, and research initiatives to provide science-backed insights, aiming to empower consumers and stakeholders to make informed decisions regarding palm oil's usage and benefits. Dev Discourse
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Public Comment - New Oil Palm planting on Sarawak NCR land
We graciously invite all stakeholders to participate in the public comment period for the draft:
Specific Guidance Document on MS 2530:2022 Compliance for New Oil Palm Planting on Sarawak Native Customary Rights (NCR) Land, open from 7th to 20th March 2025.
This document aims to ensure NCR land meets MSPO certification standards, supports sustainable agricultural development, and clarifies compliance requirements.
Please submit your feedback via the provided Word template to [email protected].
Your input is invaluable, and we appreciate your participation! Please share this announcement widely to ensure broad participation. Thank you! MSPO
Alarming’ rise in palm oil products being imported into the EU to make biofuels due to loophole
Loopholes in EU regulations appear to be driving unsustainable and fraudulent palm oil trade.
EIA’s new briefing The Palm Oil Black Box – EU trade loopholes analyses EU trade patterns for palm oil and reveals a significant increase in the imports of waste and residues used to make biofuels.
Biofuels are renewable fuels used as alternatives to fossil fuels. Palm oil and its products can be turned into biodiesel, which is mixed with conventional diesel and sold at petrol stations.
Waste and residue products are incentivised by the EU Renewable Energy (RED) scheme that aims to increase the use of renewable energy in the bloc. Such products include used cooking oil, which can be palm oil previously used for cooking.
Unlike biodiesel made directly from virgin palm oil, such products can be exempt from the EU RED’s sustainability criteria and/or can be counted twice towards renewable energy targets.
Oil palm products used to make biofuels are also largely excluded from being regulated under the new EU Deforestation Regulation (EUDR). The EUDR requires certain palm oil products to be legal and to have not caused deforestation. It comes into effect at the end of this year.
This means there is a significant loophole whereby oil palm products used to make biofuels are not effectively regulated by either regulation.
EIA Senior Forests Campaigner Siobhan Pearce said: “It’s very alarming to see this trend of increasing imports of waste and residue products that can be derived from oil palm being used to make biofuels.”
Some of the products – such as the wastewater from palm oil mills known as palm oil mill effluent (POME) – reportedly exceed what could feasibly be produced.
The pressing concern is that these waste and residue products being used to make biofuels are in fact virgin palm oil that has come from unsustainable sources – which counts as fraud and is a failure of regulations.
The EU RED initiative heavily relies on the use of certification schemes to ensure compliance. Their use needs to be urgently reviewed to assess if they are fit for purpose.
Unwittingly. we could all be consuming such products. The standard diesel sold at petrol stations contains up to seven per cent biodiesel, labelled as B7.
The Palm Oil Black Box provides an overall analysis of multiple trade codes used for oil palm products. Tracking the overall trade in oil palm is complex due to its many products and uses; many of the international trade codes are not exclusively palm oil, which makes trade opaque and hides the real picture.
To counteract the concerns, EIA recommends the EU:
- assesses the products regulated by the EUDR
- publishes its consultation on the inclusion of biofuels in the EUDR
- works with other countries to identify and address possible fraud
- assesses the role of certification schemes under the EU RED initiative and whether they are sufficient to stop fraud
- stops incentivising imported waste and residues if it cannot guarantee their origins and prevent fraudulent activity. EIA
Malaysia-India Pact to Boost Awareness on Palm Oil's Health Benefits
The Malaysian Palm Oil Council and the Oil Technologists' Association of India have partnered to promote Malaysian palm oil's health benefits in India. The collaboration aims to educate consumers, engage the industry, and validate research to enhance palm oil's image and foster sustainable trade between the nations.
he Malaysian Palm Oil Council (MPOC) has joined forces with the Oil Technologists' Association of India (OTAI) to enhance awareness about the health benefits of Malaysian palm oil in the Indian market. This initiative aims to dismantle prevailing misconceptions and underscore palm oil's significance in nutrition, health, and industrial use.
India stands as a critical market for Malaysian palm oil, and this agreement aims to spearhead targeted campaigns focused on consumer education, industry involvement, and scientific research. Ms. Belvinder Sron, CEO of MPOC, stressed the importance of this initiative in promoting the factual benefits of palm oil within India's food sector.
OTAI, established in 1943, is poised to play a pivotal role in this collaboration, bringing its extensive network and expertise. Together, MPOC and OTAI will facilitate seminars, workshops, and research initiatives to provide science-backed insights, aiming to empower consumers and stakeholders to make informed decisions regarding palm oil's usage and benefits. Dev Discourse
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Public Comment - New Oil Palm planting on Sarawak NCR land
We graciously invite all stakeholders to participate in the public comment period for the draft:
Specific Guidance Document on MS 2530:2022 Compliance for New Oil Palm Planting on Sarawak Native Customary Rights (NCR) Land, open from 7th to 20th March 2025.
This document aims to ensure NCR land meets MSPO certification standards, supports sustainable agricultural development, and clarifies compliance requirements.
Please submit your feedback via the provided Word template to [email protected].
Your input is invaluable, and we appreciate your participation! Please share this announcement widely to ensure broad participation. Thank you! MSPO
March 07, 2025
Malaysia’s MPOC, India’s OTAI sign agreement to boost palm oil awareness
NEW DELHI, Mar 7: The Malaysian Palm Oil Council (MPOC) and the Oil Technologists’ Association of India (OTAI) have signed an agreement to enhance awareness of Malaysian palm oil’s nutritional and health benefits in the Indian market, aiming to foster sustainable trade growth between the two countries.
India, a crucial market for Malaysian palm oil, will see targeted awareness campaigns addressing misconceptions and highlighting palm oil’s role in health, nutrition, and industrial applications under the new partnership.
The collaboration will focus on consumer education, industry engagement, and scientific research to strengthen palm oil’s position in India’s food and non-food sectors.
“India remains one of the most important markets for Malaysian palm oil, and fostering greater awareness through science-backed initiatives is key to reinforcing its acceptance,” MPOC CEO Belvinder Sron said in a statement.
“Collaborations with organisations like OTAI allow us to draw on their expertise and network to effectively engage with key stakeholders. By working together, we can dispel misinformation, drive consumer confidence, and ensure that the positive attributes of Malaysian palm oil are widely recognised,” Sron added.
Palm oil is free of trans fats and contains vitamin E antioxidants in two varieties: tocopherols and tocotrienols. It has a balance of saturated and unsaturated fatty acids, with natural compounds like tocotrienols and beta-carotene that support cardiovascular health.
Established in 1943, OTAI represents technologists, scientists, academicians, researchers, and industry professionals in oils, fats, oleochemicals, surfactants, and allied products. The association has regional offices across India and promotes technical advancements through seminars, workshops, and research initiatives.
Under the agreement, MPOC and OTAI will organise industry seminars, conferences, and academic lectures to educate Indian consumers, food manufacturers, and industry stakeholders about Malaysian palm oil’s benefits and applications.
The partners will also support research collaborations with Indian educational institutions to validate palm oil’s nutritional and functional properties, with findings to be published in scientific journals, industry forums, and media channels.
Additionally, the organisations will facilitate industry networking and policy exchanges to strengthen trade relationships between Malaysian and Indian palm oil stakeholders. (PTI) Daily Excelsior
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Papua to Have First Palm Oil Biogas Power Plant
South Papua, SAWIT INDONESIA – As the largest producer of crude palm oil (CPO) in the world, the opportunity to utilize biogas technology is very large due to domestic and international demands. Biogas factories have been established in palm oil producing areas such as Langkat and Belitung Island. The latest biogas factory is also being built in South Papua, precisely in Boven Digoel Regency, South Papua Province.
"We build a biogas plant whose initial investment will certainly be large. But in the long term we will reduce the use of fuel in all plantation and factory activities. With the development of a Biogas Power Plant connected to BioCNG in the long term, there will definitely be benefits for the company and the environment," explained Luwy Leunufna, Director of Tunas Sawa Erma (TSE) Group.
TSE Group, a company engaged in the palm oil sector that built the first Biogas Power Plant in South Papua. With a total investment of biogas facilities worth USD 3,600,000, TSE Group converts POME (Palm Oil Mill Effluent) or palm oil liquid waste into renewable energy.
From two biogas tanks with a capacity of 7,800 cubic meters, it is able to produce 2 MW of electricity which is used for operational activities of the Palm Kernel Crushing Plant and so on. When this Biogas Power Plant is running, the estimated emission reduction carried out by TSE Group reaches 60,708 tons of CO2 per year compared to without this facility.
The development of biogas is also a form of realization of the company's global efforts to achieve Zero Emissions by 2050.
According to Luwy, this is carried out based on the awareness and belief of the TSE Group that Net Zero Emissions can only be achieved through cooperation and innovation from all parties involved in the palm oil value chain.
Luwy added that this effort is also to support Indonesia as one of the countries that ratified the Paris Agreement, where one of the points of the agreement states that countries that sign the agreement agree to carry out voluntary national carbon emission reductions (nationally determined contributions/NDC) with the aim of keeping the global temperature increase below 2 degrees Celsius.
"Through the Net Zero Emissions commitment, we want to try to balance the emissions that have been released. Therefore, we are carrying out a series of activities such as the construction of the Biogas Power Plant-BioCNG, replacing the use of heavy equipment fueled by oil with EV, shifting slowly from B30 to B40 and B50 in accordance with government regulations, building solar panels and so on. The point is how we intervene effectively to make our emissions neutral or what we know as net zero," explained Luwy. Sawit Indonesia
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Indonesia needs to expand biodiesel capacity for B50, industry group says
JAKARTA, March 6 (Reuters) - Indonesia needs to expand its biodiesel production capacity by 4 million kilolitres to meet demand if the government expands the mandatory mix of biodiesel to 50%, producer group APROBI said on Thursday.
The country is the world's biggest palm oil producer and has increased its mandatory biodiesel blend to a 40% palm oil requirement, up from 35% previously, and is working to increase that blend to 50%, known as B50, next year.
Indonesia has about 19.6 million kilolitres of installed capacity for biodiesel production, APROBI Secretary General Ernest Gunawan told reporters. If the country implements the 50% blend, biodiesel demand is expected to increase to 19 million kilolitres per year, he said.
"We utilise, on average, 85% of the installed capacity because there are maintenance activities. We cannot run at 100% capacity," Gunawan said.
Biodiesel demand this year is estimated at 15.6 million kilolitres for the current 40% mix. Reuters
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B100 biodiesel trial in Malaysia by palm oil giant FGV
FGV Biotechnologies, a subsidiary of palm oil giant FGV, recently launched a B100 biodiesel campaign at Fraser’s Hill, Pahang. If you’re wondering what’s B100, yes it’s 100% palm oil-based biodiesel, just like how the B10 blend has 10% of palm oil content.
The company says that the initiative isn’t just a step forward in the push towards the use of palm oil-based biodiesel, but a significant effort in supporting small-scale farmers and strengthening the local palm oil industry. “With the implementation of B100, we can strengthen Malaysia’s position as a leader in sustainable fuels, giving positive impact to the country’s economy and environmental sustainability,” FGV said in a statement.
The company did not elaborate on the trial’s goals or parameters, merely saying that it is now testing the performance and efficiency of B100 biodiesel on a passenger car for one year. The car in question is a Mazda CX-8, one of only a few SUVs sold in Malaysia with a diesel engine. Its 2.2-litre Skyactiv-D unit churns out 188 hp and 450 Nm of torque, and is paired to a six-speed conventional automatic gearbox.
FGV said that last year, it ran a pilot test of B100 biodiesel for four months on its tankers. Presumably, that went well and the palm oil company is now proceeding to test the fuel blend on passenger cars.
In 2023, Shell Malaysia launched a pilot test of B100 biodiesel-fuelled Scania tankers operated by Konsortium Port Dickson. FAME (fatty acid methyl ester) is the generic chemical term for biodiesel derived from renewable sources, and all Scania trucks have been FAME-compatible up to B100 since 2019.
High palm oil content in biodiesel is a good thing for palm oil-producing countries like Malaysia and Indonesia, as it reduces the country’s fuel bill (diesel is for the most part still subsidised by the government) and at the same time increases demand for palm oil, which boosts the economy. The National Energy Transition Roadmap (NETR) is aiming for B30 biodiesel by 2030. At the pumps, we’re currently at B10, and the B20 rollout has been plagued by constant delays.
By the way, if you’re curious about FGV’s choice of Fraser’s Hill, it’s probably an ‘extreme test’ for the fuel as there are concerns about the gelling of biodiesel at lower temperatures, which hill resorts like Fraser’s get. To learn more about biodiesel, here’s a deep dive. Paul Tan
Malaysia’s MPOC, India’s OTAI sign agreement to boost palm oil awareness
NEW DELHI, Mar 7: The Malaysian Palm Oil Council (MPOC) and the Oil Technologists’ Association of India (OTAI) have signed an agreement to enhance awareness of Malaysian palm oil’s nutritional and health benefits in the Indian market, aiming to foster sustainable trade growth between the two countries.
India, a crucial market for Malaysian palm oil, will see targeted awareness campaigns addressing misconceptions and highlighting palm oil’s role in health, nutrition, and industrial applications under the new partnership.
The collaboration will focus on consumer education, industry engagement, and scientific research to strengthen palm oil’s position in India’s food and non-food sectors.
“India remains one of the most important markets for Malaysian palm oil, and fostering greater awareness through science-backed initiatives is key to reinforcing its acceptance,” MPOC CEO Belvinder Sron said in a statement.
“Collaborations with organisations like OTAI allow us to draw on their expertise and network to effectively engage with key stakeholders. By working together, we can dispel misinformation, drive consumer confidence, and ensure that the positive attributes of Malaysian palm oil are widely recognised,” Sron added.
Palm oil is free of trans fats and contains vitamin E antioxidants in two varieties: tocopherols and tocotrienols. It has a balance of saturated and unsaturated fatty acids, with natural compounds like tocotrienols and beta-carotene that support cardiovascular health.
Established in 1943, OTAI represents technologists, scientists, academicians, researchers, and industry professionals in oils, fats, oleochemicals, surfactants, and allied products. The association has regional offices across India and promotes technical advancements through seminars, workshops, and research initiatives.
Under the agreement, MPOC and OTAI will organise industry seminars, conferences, and academic lectures to educate Indian consumers, food manufacturers, and industry stakeholders about Malaysian palm oil’s benefits and applications.
The partners will also support research collaborations with Indian educational institutions to validate palm oil’s nutritional and functional properties, with findings to be published in scientific journals, industry forums, and media channels.
Additionally, the organisations will facilitate industry networking and policy exchanges to strengthen trade relationships between Malaysian and Indian palm oil stakeholders. (PTI) Daily Excelsior
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Papua to Have First Palm Oil Biogas Power Plant
South Papua, SAWIT INDONESIA – As the largest producer of crude palm oil (CPO) in the world, the opportunity to utilize biogas technology is very large due to domestic and international demands. Biogas factories have been established in palm oil producing areas such as Langkat and Belitung Island. The latest biogas factory is also being built in South Papua, precisely in Boven Digoel Regency, South Papua Province.
"We build a biogas plant whose initial investment will certainly be large. But in the long term we will reduce the use of fuel in all plantation and factory activities. With the development of a Biogas Power Plant connected to BioCNG in the long term, there will definitely be benefits for the company and the environment," explained Luwy Leunufna, Director of Tunas Sawa Erma (TSE) Group.
TSE Group, a company engaged in the palm oil sector that built the first Biogas Power Plant in South Papua. With a total investment of biogas facilities worth USD 3,600,000, TSE Group converts POME (Palm Oil Mill Effluent) or palm oil liquid waste into renewable energy.
From two biogas tanks with a capacity of 7,800 cubic meters, it is able to produce 2 MW of electricity which is used for operational activities of the Palm Kernel Crushing Plant and so on. When this Biogas Power Plant is running, the estimated emission reduction carried out by TSE Group reaches 60,708 tons of CO2 per year compared to without this facility.
The development of biogas is also a form of realization of the company's global efforts to achieve Zero Emissions by 2050.
According to Luwy, this is carried out based on the awareness and belief of the TSE Group that Net Zero Emissions can only be achieved through cooperation and innovation from all parties involved in the palm oil value chain.
Luwy added that this effort is also to support Indonesia as one of the countries that ratified the Paris Agreement, where one of the points of the agreement states that countries that sign the agreement agree to carry out voluntary national carbon emission reductions (nationally determined contributions/NDC) with the aim of keeping the global temperature increase below 2 degrees Celsius.
"Through the Net Zero Emissions commitment, we want to try to balance the emissions that have been released. Therefore, we are carrying out a series of activities such as the construction of the Biogas Power Plant-BioCNG, replacing the use of heavy equipment fueled by oil with EV, shifting slowly from B30 to B40 and B50 in accordance with government regulations, building solar panels and so on. The point is how we intervene effectively to make our emissions neutral or what we know as net zero," explained Luwy. Sawit Indonesia
--------
Indonesia needs to expand biodiesel capacity for B50, industry group says
JAKARTA, March 6 (Reuters) - Indonesia needs to expand its biodiesel production capacity by 4 million kilolitres to meet demand if the government expands the mandatory mix of biodiesel to 50%, producer group APROBI said on Thursday.
The country is the world's biggest palm oil producer and has increased its mandatory biodiesel blend to a 40% palm oil requirement, up from 35% previously, and is working to increase that blend to 50%, known as B50, next year.
Indonesia has about 19.6 million kilolitres of installed capacity for biodiesel production, APROBI Secretary General Ernest Gunawan told reporters. If the country implements the 50% blend, biodiesel demand is expected to increase to 19 million kilolitres per year, he said.
"We utilise, on average, 85% of the installed capacity because there are maintenance activities. We cannot run at 100% capacity," Gunawan said.
Biodiesel demand this year is estimated at 15.6 million kilolitres for the current 40% mix. Reuters
--------
B100 biodiesel trial in Malaysia by palm oil giant FGV
FGV Biotechnologies, a subsidiary of palm oil giant FGV, recently launched a B100 biodiesel campaign at Fraser’s Hill, Pahang. If you’re wondering what’s B100, yes it’s 100% palm oil-based biodiesel, just like how the B10 blend has 10% of palm oil content.
The company says that the initiative isn’t just a step forward in the push towards the use of palm oil-based biodiesel, but a significant effort in supporting small-scale farmers and strengthening the local palm oil industry. “With the implementation of B100, we can strengthen Malaysia’s position as a leader in sustainable fuels, giving positive impact to the country’s economy and environmental sustainability,” FGV said in a statement.
The company did not elaborate on the trial’s goals or parameters, merely saying that it is now testing the performance and efficiency of B100 biodiesel on a passenger car for one year. The car in question is a Mazda CX-8, one of only a few SUVs sold in Malaysia with a diesel engine. Its 2.2-litre Skyactiv-D unit churns out 188 hp and 450 Nm of torque, and is paired to a six-speed conventional automatic gearbox.
FGV said that last year, it ran a pilot test of B100 biodiesel for four months on its tankers. Presumably, that went well and the palm oil company is now proceeding to test the fuel blend on passenger cars.
In 2023, Shell Malaysia launched a pilot test of B100 biodiesel-fuelled Scania tankers operated by Konsortium Port Dickson. FAME (fatty acid methyl ester) is the generic chemical term for biodiesel derived from renewable sources, and all Scania trucks have been FAME-compatible up to B100 since 2019.
High palm oil content in biodiesel is a good thing for palm oil-producing countries like Malaysia and Indonesia, as it reduces the country’s fuel bill (diesel is for the most part still subsidised by the government) and at the same time increases demand for palm oil, which boosts the economy. The National Energy Transition Roadmap (NETR) is aiming for B30 biodiesel by 2030. At the pumps, we’re currently at B10, and the B20 rollout has been plagued by constant delays.
By the way, if you’re curious about FGV’s choice of Fraser’s Hill, it’s probably an ‘extreme test’ for the fuel as there are concerns about the gelling of biodiesel at lower temperatures, which hill resorts like Fraser’s get. To learn more about biodiesel, here’s a deep dive. Paul Tan
March 06, 2025
Indonesian court blocks palm oil expansion, but leaves Indigenous land rights in limbo
JAKARTA — The Indonesian Supreme Court has upheld a government decision to curb the expansion of a multibillion-dollar oil palm plantation project in the country’s easternmost region of Papua.
In its Dec. 2, 2024, ruling, the court rejected lawsuits filed by two plantation companies that are part of the Tanah Merah mega plantation project, PT Megakarya Jaya Raya (MJR) and PT Kartika Cipta Pratama (KCP).
The ruling spares 65,415 hectares (161,644 acres) of rainforest — an area the size of Jakarta — in both concessions from further clearing.
This sets a major legal precedent for forest conservation in the country as it reinforces that the forestry ministry has the legal authority to order companies to stop clearing forests if they fail to develop plantations or violate environmental regulations, said Sekar Banjaran Aji, a forest campaigner with Greenpeace Indonesia who represents the Indigenous Awyu tribe in the case.
“[The ruling shows] that if the government actually wants to evaluate permits and take action, they do have the power. They just need clear rules of the game, for example, a clear mechanism for evaluation,” she told Mongabay. “With this ruling, the forestry ministry shouldn’t be afraid anymore to crack down on problematic palm oil companies in Papua.”
The ruling marks the latest legal development in the Tanah Merah project, the world’s largest palm oil estate, which has seen investors battling over the rights to clear large swaths of primary rainforest. Mongabay
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Indonesian Trade Minister aims to wrap up IEU-CEPA talks in first half of 2025
Jakarta (ANTARA) - Trade Minister Budi Santoso is targeting to complete the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) negotiations in the first half of this year.
He informed that currently, several technical issues are being negotiated.
"The plan (for the next negotiation) is next week. So hopefully, in the first semester (of this year), it will be completed," Santoso said here on Wednesday.
He added that the IEU-CEPA is important to increase Indonesia's trade to the European market, including in textile, ready-to-wear clothing, and footwear products.
Through the IEU-CEPA, he continued, Indonesia is expected to have a wider market.
"Now that the competition is getting tighter, maybe entering other countries is also difficult. There is a lot of competition, but we have the opportunity to enter the European market," he said.
In February 2025, Coordinating Minister for Economic Affairs, Airlangga Hartarto, held an online meeting with EU Trade Commissioner Maros Sefcovic to align perceptions to accelerate the completion of the IEU-CEPA negotiations.
During the meeting, Commissioner Sefcovic emphasized the importance of maintaining momentum in discussing a realistic timeframe for completing the negotiations that is acceptable to both parties.
"Global trade conditions marked by tariff wars require an appropriate mitigation strategy to ensure the smooth flow of trade and investment between Indonesia and the EU," he added.
The IEU-CEPA is a comprehensive bilateral trade agreement between Indonesia and its partner countries in the EU.
Nineteen rounds of the IEU-CEPA negotiations have been carried out over the last nine years.
In general, the agreement has three main pillars: market access for trade in goods and services, investment and public procurement, and the harmonization of trade regulations, as well as cooperation and capacity building. Antara News
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Does Palm Oil Really Cause Cancer? Oncologist Decodes The Truth
Diagnosing with cancer can be life-changing, sparking fear and anxiety. We get what we eat and this includes us having the risk of getting the dreaded disease. And, if one ingredient has come under scrutiny nowadays for apparently causing cancer, it is palm oil. However, before drawing conclusions about the world’s most widely used edible oil, our expert helps us decode the truth.
Diagnosing with cancer can be life-changing, sparking fear and anxiety. We get what we eat and this includes us having the risk of getting the dreaded disease also. And, if one ingredient has come under scrutiny nowadays for apparently causing cancer, it 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, surgical oncologist, Manipal Hospitals, Delhi.
5 Ways Palm Oil Offers Protection Against Cancer
As per Dr. Rastogi, palm oil is used extensively in food production and cooking worldwide. "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," he adds.
A study done in 2017 lists the nutrients in red palm oil, which "may offer protective benefits against cancer," because of the following: More at Herzindagi
Indonesian court blocks palm oil expansion, but leaves Indigenous land rights in limbo
- Indonesia’s Supreme Court has upheld the government’s decision to block further expansion of the Tanah Merah oil palm project in Papua, preserving a Jakarta-sized swath of primary rainforest.
- The ruling strengthens the forestry ministry’s authority to halt deforestation and was influenced by testimonies from the Indigenous Awyu tribe, who rely on the forest for survival.
- While the decision prevents further clearing, it doesn’t grant Indigenous land rights to the Awyu, leaving the tribe vulnerable to future displacement.
- Other companies are vying for control over concessions within the Tanah Merah project, fueling further conflicts and prompting Indigenous groups to seek formal land rights recognition.
JAKARTA — The Indonesian Supreme Court has upheld a government decision to curb the expansion of a multibillion-dollar oil palm plantation project in the country’s easternmost region of Papua.
In its Dec. 2, 2024, ruling, the court rejected lawsuits filed by two plantation companies that are part of the Tanah Merah mega plantation project, PT Megakarya Jaya Raya (MJR) and PT Kartika Cipta Pratama (KCP).
The ruling spares 65,415 hectares (161,644 acres) of rainforest — an area the size of Jakarta — in both concessions from further clearing.
This sets a major legal precedent for forest conservation in the country as it reinforces that the forestry ministry has the legal authority to order companies to stop clearing forests if they fail to develop plantations or violate environmental regulations, said Sekar Banjaran Aji, a forest campaigner with Greenpeace Indonesia who represents the Indigenous Awyu tribe in the case.
“[The ruling shows] that if the government actually wants to evaluate permits and take action, they do have the power. They just need clear rules of the game, for example, a clear mechanism for evaluation,” she told Mongabay. “With this ruling, the forestry ministry shouldn’t be afraid anymore to crack down on problematic palm oil companies in Papua.”
The ruling marks the latest legal development in the Tanah Merah project, the world’s largest palm oil estate, which has seen investors battling over the rights to clear large swaths of primary rainforest. Mongabay
---------
Indonesian Trade Minister aims to wrap up IEU-CEPA talks in first half of 2025
Jakarta (ANTARA) - Trade Minister Budi Santoso is targeting to complete the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) negotiations in the first half of this year.
He informed that currently, several technical issues are being negotiated.
"The plan (for the next negotiation) is next week. So hopefully, in the first semester (of this year), it will be completed," Santoso said here on Wednesday.
He added that the IEU-CEPA is important to increase Indonesia's trade to the European market, including in textile, ready-to-wear clothing, and footwear products.
Through the IEU-CEPA, he continued, Indonesia is expected to have a wider market.
"Now that the competition is getting tighter, maybe entering other countries is also difficult. There is a lot of competition, but we have the opportunity to enter the European market," he said.
In February 2025, Coordinating Minister for Economic Affairs, Airlangga Hartarto, held an online meeting with EU Trade Commissioner Maros Sefcovic to align perceptions to accelerate the completion of the IEU-CEPA negotiations.
During the meeting, Commissioner Sefcovic emphasized the importance of maintaining momentum in discussing a realistic timeframe for completing the negotiations that is acceptable to both parties.
"Global trade conditions marked by tariff wars require an appropriate mitigation strategy to ensure the smooth flow of trade and investment between Indonesia and the EU," he added.
The IEU-CEPA is a comprehensive bilateral trade agreement between Indonesia and its partner countries in the EU.
Nineteen rounds of the IEU-CEPA negotiations have been carried out over the last nine years.
In general, the agreement has three main pillars: market access for trade in goods and services, investment and public procurement, and the harmonization of trade regulations, as well as cooperation and capacity building. Antara News
--------
Does Palm Oil Really Cause Cancer? Oncologist Decodes The Truth
Diagnosing with cancer can be life-changing, sparking fear and anxiety. We get what we eat and this includes us having the risk of getting the dreaded disease. And, if one ingredient has come under scrutiny nowadays for apparently causing cancer, it is palm oil. However, before drawing conclusions about the world’s most widely used edible oil, our expert helps us decode the truth.
Diagnosing with cancer can be life-changing, sparking fear and anxiety. We get what we eat and this includes us having the risk of getting the dreaded disease also. And, if one ingredient has come under scrutiny nowadays for apparently causing cancer, it 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, surgical oncologist, Manipal Hospitals, Delhi.
5 Ways Palm Oil Offers Protection Against Cancer
As per Dr. Rastogi, palm oil is used extensively in food production and cooking worldwide. "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," he adds.
A study done in 2017 lists the nutrients in red palm oil, which "may offer protective benefits against cancer," because of the following: More at Herzindagi
March 04, 2025
Trump Tariffs: A looming crisis for Colombian farmers and women workers
President Donald Trump sent a direct message to the “Great Farmers of the United States,” announcing that as of April 2, 2025, tariffs would be placed on “external” agricultural products. He urged farmers to “get ready” and “have fun” producing these goods.
Trump’s declaration, posted on his Truth Social platform, came just hours before the U.S. imposed hefty tariffs on Canada and Mexico. These tariffs on two of the U.S.’s largest trading partners now threaten to trigger an unprecedented trade war within North America—one that could drive up the cost of living for millions in the United States and across its northern and southern borders.
This momentous decision by the incoming administration to implement punitive measures against Canada and Mexico could soon be followed by 25% tariffs on Colombian-grown products, according to President Trump. These would include the country’s leading agricultural exports: coffee, bananas, avocados, cacao, flowers, and palm oil.
But the consequences of such a trade war could extend far beyond the U.S. and Canada. For Colombia, which relies heavily on its agricultural exports to the U.S. market, the tariffs would have a devastating impact on tens of thousands of workers, particularly women who are integral to the country’s agricultural sector. City Paper Bogota
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Oro Oil Ghana partners Nigerian investors to revive oil palm production
Ghana’s oil palm industry is set for a major boost as Oro Oil Ghana has entered into a 10-year partnership with Nigerian investors to enhance production, market expansion, and technological advancement.
The collaboration aims to reduce reliance on traditional methods and improve the income of smallholder farmers.
Beyond trade, the agreement will bring Nigerian investment, expertise, and machinery to Ghana’s oil palm sector. The country boasts over 10,000 hectares of cultivable land, an affordable workforce, and access to a large market through the African Continental Free Trade Area (AfCFTA).
Ghana’s oil palm production has suffered due to neglect and inadequate investment, leading to a decline in exports. The Oil Palm Development Association of Ghana reports that the country’s export volume for 2024 dropped by over 50%.
The sector’s decline is attributed to a lack of government support, poor planting materials, and technological gaps.
For Nigeria, where palm oil consumption stands at approximately three million metric tons annually, the partnership with Oro Oil Ghana aligns with its growth and export-driven strategy.
The collaboration will focus on international best practices to attract investors and boost market confidence. Oro Oil Ghana remains Ghana’s largest exporter of palm oil to Nigeria. 3News
Trump Tariffs: A looming crisis for Colombian farmers and women workers
President Donald Trump sent a direct message to the “Great Farmers of the United States,” announcing that as of April 2, 2025, tariffs would be placed on “external” agricultural products. He urged farmers to “get ready” and “have fun” producing these goods.
Trump’s declaration, posted on his Truth Social platform, came just hours before the U.S. imposed hefty tariffs on Canada and Mexico. These tariffs on two of the U.S.’s largest trading partners now threaten to trigger an unprecedented trade war within North America—one that could drive up the cost of living for millions in the United States and across its northern and southern borders.
This momentous decision by the incoming administration to implement punitive measures against Canada and Mexico could soon be followed by 25% tariffs on Colombian-grown products, according to President Trump. These would include the country’s leading agricultural exports: coffee, bananas, avocados, cacao, flowers, and palm oil.
But the consequences of such a trade war could extend far beyond the U.S. and Canada. For Colombia, which relies heavily on its agricultural exports to the U.S. market, the tariffs would have a devastating impact on tens of thousands of workers, particularly women who are integral to the country’s agricultural sector. City Paper Bogota
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Oro Oil Ghana partners Nigerian investors to revive oil palm production
Ghana’s oil palm industry is set for a major boost as Oro Oil Ghana has entered into a 10-year partnership with Nigerian investors to enhance production, market expansion, and technological advancement.
The collaboration aims to reduce reliance on traditional methods and improve the income of smallholder farmers.
Beyond trade, the agreement will bring Nigerian investment, expertise, and machinery to Ghana’s oil palm sector. The country boasts over 10,000 hectares of cultivable land, an affordable workforce, and access to a large market through the African Continental Free Trade Area (AfCFTA).
Ghana’s oil palm production has suffered due to neglect and inadequate investment, leading to a decline in exports. The Oil Palm Development Association of Ghana reports that the country’s export volume for 2024 dropped by over 50%.
The sector’s decline is attributed to a lack of government support, poor planting materials, and technological gaps.
For Nigeria, where palm oil consumption stands at approximately three million metric tons annually, the partnership with Oro Oil Ghana aligns with its growth and export-driven strategy.
The collaboration will focus on international best practices to attract investors and boost market confidence. Oro Oil Ghana remains Ghana’s largest exporter of palm oil to Nigeria. 3News
March 04, 2025
Idemitsu IFG Plantech Racing launches plant-based oil for top tier racing
TOKYO – A Japanese company has launched a groundbreaking racing engine oil that could change the way we think about sustainability in high-performance vehicles. Named Idemitsu IFG Plantech Racing, this innovative oil is made from over 80 percent plant-based materials, mainly palm oil, and meets the stringent standards of the American Petroleum Institute’s SP certification.
The product seamlessly combines environmental consciousness with top-tier racing performance. Idemitsu Kosan, a Tokyo-based company, is behind this breakthrough.
What makes this oil stand out? The engine oil uses sustainably sourced palm oil as its base, alongside esters from rapeseed and sunflower oils, to deliver high performance while significantly reducing environmental impact.
According to the company, the carbon footprint of Idemitsu IFG Plantech is 82 percent lower than conventional mineral oils. This figure, based on estimates from the Japan LP Gas Association, accounts for the entire lifecycle of the product—from production to disposal.
“We want to push the boundaries of what’s possible in both sustainability and performance,” the company shared in a statement.
This plant-based motor oil isn’t just environmentally friendly—it also delivers exceptional results in demanding conditions. Rigorous testing by Idemitsu revealed; 194% greater toughness compared to other flagship oils, ensuring durability during high-stress scenarios. 50% lower friction, which translates to reduced power loss and better fuel efficiency. 169% enhanced protection for critical engine components. 124% improved piston cleanliness, helping engines run smoothly and efficiently.
The plant-based motor oil is suitable for use in the challenging Super Taikyu. Image Tokumeigakarinoaoshima, CC BY-SA 4.0, via Wikimedia Commons.
The plant-based motor oil proved its worth in the real world, too. During the Super Taikyu Series, a competitive pro-am racing event, Mazda Spirit Racing’s Roadster CNF concept car ran on Idemitsu IFG Plantech Racing oil for an intense five-hour race. The oil performed flawlessly, solidifying its place as a game-changer in the racing world. GAPKI
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Making Liquid Sugar from Old Palm Tree Trunks
This potential can be utilized by farmers in implementing the PSR program.
JAKARTA – Old oil palm trunks, over 30 years old, have very high economic benefits. One of them is by utilizing sap from old oil palm trunks to make liquid sugar. The findings of Dr. Siti Nurdjanah, a professor at the Faculty of Agriculture, University of Lampung, can be a solution for farmers who are rejuvenating their oil palm plants. During the rejuvenation period, there is potential income for farmers.
One old oil palm tree produces 100 liters of sap. In one hectare, there is a potential of 10,000 liters of sap that can be used as raw material for liquid sugar. With an area of oil palm plantations in Indonesia of 16.38 million hectares, the sap produced reaches 5 million liters. The potential for sugar produced is very large because the total sugar content of old oil palm sap reaches 17.6%. This potential can be utilized by farmers in implementing the PSR program.
The research on old oil palm trunks by Dr. Siti Nurdjanah was funded by the Plantation Fund Management Agency (BPDP) and published in the book Grant Riset Sawit 2024 entitled Development of Liquid Sugar Production Technology from Old Oil Palm Trunks to Support the PSR Program . This finding also became the material for Dr. Siti Nurdjanah's inaugural scientific oration in her inauguration as a professor at the Faculty of Agriculture, University of Lampung at the end of 2024.
To produce liquid sugar from old oil palm trunks, the process begins with the extraction of sap from the trunk or trunk of the oil palm, reduced to a size of 3 meters. The cut trunks are stored in a storage room at a temperature of (25±5 °C), relative humidity of 75±5% for 4 days. After that, the trunks are peeled and chopped into small particles and then pressed using a screw press to extract the sap.
The resulting sap is filtered with a two-layer 200 mesh filter cloth and then evaporated until the total dissolved solids reach ≥70° brix. This treatment produces a liquid sugar yield of 24% with a heating time of 135 minutes. This liquid sugar has characteristics of pH 5.5, 72° brix, ash content of 3.17%, total reducing sugar of 87.82 g/100 g, total phenolic compounds of 872.7 mg/100 g, total flavonoids of 28.42 mg/100 mg, DPPH antioxidant activity of 80.394% and ABTS antioxidant activity of 89.300%.
From several trials and results, the business of making liquid sugar from old oil palm trunks is feasible. The resulting liquid sugar does not contain heavy metals, tastes sweet, has no bitter aftertaste , a calorific value of 232.86 k calories / 100 g and a shelf life of 2 years. The conclusion will of course still be tested again by utilizing old oil palm trunks from different areas because the variation in the content of oil palm trunks can be different.
According to Dr. Siti Nurdjanah, this research still needs to be increased in production scale from laboratory scale to mini plant scale with a capacity of 150-200 L of liquid sugar per day. "The method of obtaining sap can be by tapping or pressing," she said. Sawit Kita
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How U.S. Soybean Farmers Are Making Their Fields More Sustainable
Soybeans exploded in popularity in the United States, but growing the crop comes with a host of environmental impacts. American soybean farmers are starting to do things differently, resulting in a much lower carbon footprint than many other soy-producing countries.
For a plant native to Asia that was first domesticated 9,000 years ago, soy has become surprisingly popular in the United States. The country is one of the world’s largest soy producers, having increased its output by 55 percent since 2000, according to research from Our World in Data. One might think vegetarians’ penchant for tofu is fueling this rise, but in reality, the vast majority of soy is used as animal feed.
While they are a high-quality source of protein and energy for animals, soybeans come with a planetary price. Global soybean production is linked with deforestation, habitat degradation, soil erosion and water pollution. After beef and palm oil, soy production is one of the main drivers of tropical deforestation — especially in Brazil and other parts of Central and South America.
But American soy farmers are starting to do things differently. Since 1980, they’ve reduced greenhouse gas emissions per bushel by 42 percent, according to the U.S. Soybean Export Council. As a result, U.S. soy has a much lower carbon footprint than many other soy-producing countries. Over the same period, farmers also increased land use efficiency by 47 percent and energy use efficiency by 45 percent, according to the council.
By adopting techniques like conservation tillage, agroforestry and buffer strips, U.S. farmers are putting soy back on the sustainability map.
Planting prairies on soybean farms
U.S. soy farmers are using a wide variety of techniques to adapt to climate change, improve soil quality and ensure food security. One such method involves planting native prairie strips along the contours and edges of fields.
“If you can take 10 percent of the field out of production and plant it to a narrow strip of prairie, it's as good as a terrace as far as keeping soil in place and preventing nutrient runoff,” said Paul Mugge, who grows organic soybeans, corn, grain and alfalfa in Iowa. “They're very, very effective, and you get all these other benefits, too. It's habitat for pollinator insects. It's habitat for beneficial insects.”
These narrow vegetation bands cover the soil, slow water flow and anchor the soil with deep-rooted plants. As a result, converting just 10 percent of fields into prairie strips can reduce water pollution — particularly the phosphorus and nitrogen carried away in runoff — and soil erosion by 85 percent or more, according to research from Iowa State University.
Another similar practice is beetle banks. On Mugge’s farm, these raised strips of land are planted with bunch grasses — which grow in clumps or tufts — and positioned next to the prairie strips. Triple Pundit
Idemitsu IFG Plantech Racing launches plant-based oil for top tier racing
TOKYO – A Japanese company has launched a groundbreaking racing engine oil that could change the way we think about sustainability in high-performance vehicles. Named Idemitsu IFG Plantech Racing, this innovative oil is made from over 80 percent plant-based materials, mainly palm oil, and meets the stringent standards of the American Petroleum Institute’s SP certification.
The product seamlessly combines environmental consciousness with top-tier racing performance. Idemitsu Kosan, a Tokyo-based company, is behind this breakthrough.
What makes this oil stand out? The engine oil uses sustainably sourced palm oil as its base, alongside esters from rapeseed and sunflower oils, to deliver high performance while significantly reducing environmental impact.
According to the company, the carbon footprint of Idemitsu IFG Plantech is 82 percent lower than conventional mineral oils. This figure, based on estimates from the Japan LP Gas Association, accounts for the entire lifecycle of the product—from production to disposal.
“We want to push the boundaries of what’s possible in both sustainability and performance,” the company shared in a statement.
This plant-based motor oil isn’t just environmentally friendly—it also delivers exceptional results in demanding conditions. Rigorous testing by Idemitsu revealed; 194% greater toughness compared to other flagship oils, ensuring durability during high-stress scenarios. 50% lower friction, which translates to reduced power loss and better fuel efficiency. 169% enhanced protection for critical engine components. 124% improved piston cleanliness, helping engines run smoothly and efficiently.
The plant-based motor oil is suitable for use in the challenging Super Taikyu. Image Tokumeigakarinoaoshima, CC BY-SA 4.0, via Wikimedia Commons.
The plant-based motor oil proved its worth in the real world, too. During the Super Taikyu Series, a competitive pro-am racing event, Mazda Spirit Racing’s Roadster CNF concept car ran on Idemitsu IFG Plantech Racing oil for an intense five-hour race. The oil performed flawlessly, solidifying its place as a game-changer in the racing world. GAPKI
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Making Liquid Sugar from Old Palm Tree Trunks
This potential can be utilized by farmers in implementing the PSR program.
JAKARTA – Old oil palm trunks, over 30 years old, have very high economic benefits. One of them is by utilizing sap from old oil palm trunks to make liquid sugar. The findings of Dr. Siti Nurdjanah, a professor at the Faculty of Agriculture, University of Lampung, can be a solution for farmers who are rejuvenating their oil palm plants. During the rejuvenation period, there is potential income for farmers.
One old oil palm tree produces 100 liters of sap. In one hectare, there is a potential of 10,000 liters of sap that can be used as raw material for liquid sugar. With an area of oil palm plantations in Indonesia of 16.38 million hectares, the sap produced reaches 5 million liters. The potential for sugar produced is very large because the total sugar content of old oil palm sap reaches 17.6%. This potential can be utilized by farmers in implementing the PSR program.
The research on old oil palm trunks by Dr. Siti Nurdjanah was funded by the Plantation Fund Management Agency (BPDP) and published in the book Grant Riset Sawit 2024 entitled Development of Liquid Sugar Production Technology from Old Oil Palm Trunks to Support the PSR Program . This finding also became the material for Dr. Siti Nurdjanah's inaugural scientific oration in her inauguration as a professor at the Faculty of Agriculture, University of Lampung at the end of 2024.
To produce liquid sugar from old oil palm trunks, the process begins with the extraction of sap from the trunk or trunk of the oil palm, reduced to a size of 3 meters. The cut trunks are stored in a storage room at a temperature of (25±5 °C), relative humidity of 75±5% for 4 days. After that, the trunks are peeled and chopped into small particles and then pressed using a screw press to extract the sap.
The resulting sap is filtered with a two-layer 200 mesh filter cloth and then evaporated until the total dissolved solids reach ≥70° brix. This treatment produces a liquid sugar yield of 24% with a heating time of 135 minutes. This liquid sugar has characteristics of pH 5.5, 72° brix, ash content of 3.17%, total reducing sugar of 87.82 g/100 g, total phenolic compounds of 872.7 mg/100 g, total flavonoids of 28.42 mg/100 mg, DPPH antioxidant activity of 80.394% and ABTS antioxidant activity of 89.300%.
From several trials and results, the business of making liquid sugar from old oil palm trunks is feasible. The resulting liquid sugar does not contain heavy metals, tastes sweet, has no bitter aftertaste , a calorific value of 232.86 k calories / 100 g and a shelf life of 2 years. The conclusion will of course still be tested again by utilizing old oil palm trunks from different areas because the variation in the content of oil palm trunks can be different.
According to Dr. Siti Nurdjanah, this research still needs to be increased in production scale from laboratory scale to mini plant scale with a capacity of 150-200 L of liquid sugar per day. "The method of obtaining sap can be by tapping or pressing," she said. Sawit Kita
--------
How U.S. Soybean Farmers Are Making Their Fields More Sustainable
Soybeans exploded in popularity in the United States, but growing the crop comes with a host of environmental impacts. American soybean farmers are starting to do things differently, resulting in a much lower carbon footprint than many other soy-producing countries.
For a plant native to Asia that was first domesticated 9,000 years ago, soy has become surprisingly popular in the United States. The country is one of the world’s largest soy producers, having increased its output by 55 percent since 2000, according to research from Our World in Data. One might think vegetarians’ penchant for tofu is fueling this rise, but in reality, the vast majority of soy is used as animal feed.
While they are a high-quality source of protein and energy for animals, soybeans come with a planetary price. Global soybean production is linked with deforestation, habitat degradation, soil erosion and water pollution. After beef and palm oil, soy production is one of the main drivers of tropical deforestation — especially in Brazil and other parts of Central and South America.
But American soy farmers are starting to do things differently. Since 1980, they’ve reduced greenhouse gas emissions per bushel by 42 percent, according to the U.S. Soybean Export Council. As a result, U.S. soy has a much lower carbon footprint than many other soy-producing countries. Over the same period, farmers also increased land use efficiency by 47 percent and energy use efficiency by 45 percent, according to the council.
By adopting techniques like conservation tillage, agroforestry and buffer strips, U.S. farmers are putting soy back on the sustainability map.
Planting prairies on soybean farms
U.S. soy farmers are using a wide variety of techniques to adapt to climate change, improve soil quality and ensure food security. One such method involves planting native prairie strips along the contours and edges of fields.
“If you can take 10 percent of the field out of production and plant it to a narrow strip of prairie, it's as good as a terrace as far as keeping soil in place and preventing nutrient runoff,” said Paul Mugge, who grows organic soybeans, corn, grain and alfalfa in Iowa. “They're very, very effective, and you get all these other benefits, too. It's habitat for pollinator insects. It's habitat for beneficial insects.”
These narrow vegetation bands cover the soil, slow water flow and anchor the soil with deep-rooted plants. As a result, converting just 10 percent of fields into prairie strips can reduce water pollution — particularly the phosphorus and nitrogen carried away in runoff — and soil erosion by 85 percent or more, according to research from Iowa State University.
Another similar practice is beetle banks. On Mugge’s farm, these raised strips of land are planted with bunch grasses — which grow in clumps or tufts — and positioned next to the prairie strips. Triple Pundit
March 02, 2025
Johor state launches Malaysia's first sustainable palm oil complex
KUALA LUMPUR: Johor has strengthened its position as a global leader in sustainable palm oil production with the launch of the Integrated Sustainable Palm Oil Complex (iSPOC).
The facility, the first in Malaysia, will integrate the entire palm oil industry chain within a single sustainable ecosystem.
Menteri Besar Datuk Onn Hafiz Ghazi in a Facebook post said the complex, developed by Johor Plantation Group Bhd, adopts a circular economy and zero-waste approach, utilising 100 per cent renewable energy from biogas and biomass.
He said that with the involvement of industry partners such as Fuji Oil Asia, iSPOC would enhance the production of high-value palm oil products, including specialty oils and fats, animal feed, and palm kernel oil.
"The project is also expected to attract new investments and generate added value for Johor's economic ecosystem.
"It will create 250 direct job opportunities, with an average salary of RM4,200 per month, while supporting hundreds of indirect jobs in sectors such as logistics, maintenance, and retail," he said.
Through the Johor-Singapore Special Economic Zone (JS-SEZ) initiative, Onn Hafiz said iSPOC would serve as a catalyst for a more modern, efficient, and environmentally friendly palm oil industry, further positioning Johor as a key leader in the sector.New Straits Times
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Patanjali Foods to Establish Oil Palm Mill in Mizoram to Strengthen India’s Edible Oil Retail Sector
Patanjali Foods Ltd. is set to establish an oil palm mill in Mizoram as part of its efforts to expand operations in India's edible oil retail sector, an official confirmed.
Two senior company officials met Chief Minister Lalduhoma in Aizawl to discuss the project. The mill will be located in Liapha, Lawngtlai district, and is expected to be completed within a year, the official said.
Company representatives informed the Chief Minister that oil palm will be sourced from farmers in Serchhip, Lunglei, Lawngtlai, and Siaha districts.
During the meeting, Lalduhoma addressed the challenges faced by oil palm cultivators in the southern districts and outlined the state government's plans to expand oil palm farming.
Patanjali Foods officials stated that they will take necessary steps to support increased oil palm cultivation in the region, the official added. Indian Retailer
Johor state launches Malaysia's first sustainable palm oil complex
KUALA LUMPUR: Johor has strengthened its position as a global leader in sustainable palm oil production with the launch of the Integrated Sustainable Palm Oil Complex (iSPOC).
The facility, the first in Malaysia, will integrate the entire palm oil industry chain within a single sustainable ecosystem.
Menteri Besar Datuk Onn Hafiz Ghazi in a Facebook post said the complex, developed by Johor Plantation Group Bhd, adopts a circular economy and zero-waste approach, utilising 100 per cent renewable energy from biogas and biomass.
He said that with the involvement of industry partners such as Fuji Oil Asia, iSPOC would enhance the production of high-value palm oil products, including specialty oils and fats, animal feed, and palm kernel oil.
"The project is also expected to attract new investments and generate added value for Johor's economic ecosystem.
"It will create 250 direct job opportunities, with an average salary of RM4,200 per month, while supporting hundreds of indirect jobs in sectors such as logistics, maintenance, and retail," he said.
Through the Johor-Singapore Special Economic Zone (JS-SEZ) initiative, Onn Hafiz said iSPOC would serve as a catalyst for a more modern, efficient, and environmentally friendly palm oil industry, further positioning Johor as a key leader in the sector.New Straits Times
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Patanjali Foods to Establish Oil Palm Mill in Mizoram to Strengthen India’s Edible Oil Retail Sector
Patanjali Foods Ltd. is set to establish an oil palm mill in Mizoram as part of its efforts to expand operations in India's edible oil retail sector, an official confirmed.
Two senior company officials met Chief Minister Lalduhoma in Aizawl to discuss the project. The mill will be located in Liapha, Lawngtlai district, and is expected to be completed within a year, the official said.
Company representatives informed the Chief Minister that oil palm will be sourced from farmers in Serchhip, Lunglei, Lawngtlai, and Siaha districts.
During the meeting, Lalduhoma addressed the challenges faced by oil palm cultivators in the southern districts and outlined the state government's plans to expand oil palm farming.
Patanjali Foods officials stated that they will take necessary steps to support increased oil palm cultivation in the region, the official added. Indian Retailer
March 01, 2025
Sweden Backs EU-Malaysia Free Trade Agreement To Strengthen Economic Ties
KUALA LUMPUR, March 1 (Bernama) -- Sweden has voiced strong support for a European Union (EU)-Malaysia free trade agreement (FTA), expressing hope that it will be finalised this year, seeing it as a crucial step towards boosting economic cooperation and attracting European investments.
Sweden’s Third Deputy Speaker of Parliament, Kerstin Lundgren, said the agreement could enhance Malaysia’s trade visibility in Europe and serve as a stepping stone for broader ASEAN-EU economic collaboration.
“We will be supportive of that, and I hope it can be agreed upon this year.
“A free trade agreement with the EU could help Malaysia move ahead in a better way and increase its visibility for European foreign direct investments. It could also open doors for other Southeast Asian countries,” she told Bernama in an exclusive interview.
In January this year, Malaysian Prime Minister Datuk Seri Anwar Ibrahim and EU President Ursula von der Leyen announced the resumption of negotiations for the Malaysia-EU FTA, following a decade-long stall due to concerns over palm oil procurement policies and sustainability clauses.
The Prime Minister’s Office (PMO) said the renewed engagement marks a significant milestone in strengthening Malaysia’s economic ties with one of the world’s largest trading blocs and underscores the country’s commitment to fostering deeper economic ties with the EU, a major trade and investment partner for Malaysia.
As part of Sweden’s broader commitment to Malaysia, Lundgren emphasised the importance of strengthening cooperation in trade, sustainability, and governance within the ASEAN framework.
She highlighted green technology and academic collaboration as key areas for further engagement, noting that Swedish companies are already investing in Malaysia’s renewable energy and energy efficiency solutions.
“Malaysia has knowledge in various areas from a warmer climate, and as a country in the high north, it is also important to learn from your experiences,” she said.
Lundgren reaffirmed that these investments reinforce Malaysia’s role as a strategic partner in sustainability efforts, adding that Malaysia’s ASEAN chairmanship and sustainability agenda align with Sweden’s priorities for regional economic and diplomatic cooperation.
Beyond trade, Lundgren also shared insights on Sweden’s parliamentary system, comparing its unicameral Riksdag with Malaysia’s bicameral system.
She explained that Sweden’s current system, implemented in 1974, was designed to strengthen parliamentary democracy by ensuring direct voter representation in government decisions.
Lundgren, who has played a significant role in Sweden’s parliament, also underscored the importance of female representation in politics.
She highlighted that women make up 47 per cent of the Swedish parliament, attributing this progress to political parties actively promoting gender equality through election list systems that encourage female participation.
“We try to do our best. We are not at the top, but we have made progress,” she noted, referring to Sweden’s former prime minister, who was elected in November 2021 as the country’s first female leader, as well as the increasing presence of women in leadership positions.-- BERNAMA
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FGV awaits US CBP's response on efforts to lift WRO
KUALA LUMPUR: FGV Holdings Bhd is actively engaging with the United States (US) Customs and Border Protection (CBP) to lift the withhold release order (WRO), following its submission of the petition to modify the WRO to the US CBP in June 2024.
The US CBP issued the WRO against the palm oil and palm oil products of FGV and its subsidiaries and joint ventures on Sept 30, 2020, barring entry of these products to the US.
Group chief executive officer Fakhrunniam Othman said FGV is waiting for the agency's response after submitting additional clarifications on labour compliance in mid-February 2025.
"We have submitted the petition to modify the WRO in June of last year. After that, the US CBP engaged with FGV to get additional information on specific issues relating to labour compliance according to the Malaysian laws,” he said.
In addition, group chief financial officer Datuk Mohd Hairul Abdul Hamid said that among the key clarifications sought by US CBP were the working hours and aspects related to the Malaysian immigration laws concerning foreign workers.
"There are certain clarifications that have been requested in terms of the overtime, because if you look at international labour standards, your overtime cannot exceed 60 hours per week whereas in Malaysia, it is up to 104 hours.
"So, they need confirmation on whether FGV has complied with the Malaysian law,” he said. The StarMY
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FGV earnings soar to RM276mil driven by CPO prices, productivity
KUALA LUMPUR: FGV Holdings Bhd's net profit more than doubled to RM276.25 million for the financial year ended Dec 31, 2024 (FY24) compared to RM101.62 million in FY23.
FGV's top-line growth remained resilient, with solid revenue of RM22.2 billion in FY24 compared to RM19.4 billion a year ago.
Group chief executive officer Fakhrunniam Othman said 2024 had been challenging yet rewarding, proving FGV's resilience in an increasingly dynamic and regulated market.
He noted that crude palm oil (CPO) prices fluctuated due to global supply-demand shifts and geopolitical tensions.
Meanwhile, stricter certification and sustainability standards, such as the Roundtable on Sustainable Palm Oil and the European Union Deforestation Regulation, are pushing the company to raise its standards.
"After a tough 2023, we have come back stronger, delivering solid results that reaffirm our position as a leading agribusiness player" he said at FGV's 2024 financial results briefing here today.
The company also registered an operating profit before fair value changes in land lease agreement and impairment of RM1.2 billion, representing an increase of 89 per cent from last year.
According to FGV, the plantation division emerged as the primary growth driver, contributing significantly to the company's overall performance.
It said this was underpinned by higher fresh fruit bunch (FFB) yield, stronger margins on palm products, supported by higher average CPO price realised at RM4,102 per tonne, compared to RM3,901 in FY23.
"The sugar division was also a strong contributor to the company's overall performance through higher sales volume and increased contributions," it said.
For the fourth quarter (Q4) ended Dec 31, 2024, FGV's net profit rose 65 per cent to RM116.21 million from RM70.44 million in the same period a year earlier.
The rise in net profit for the quarter was due to higher FFB prices as well as its sugar division's higher capacity utilisation.
Revenue for the quarter rose 10.4 per cent to RM5.92 billion in Q4 2024 versus RM5.36 billion last year.
FGV announced a final dividend payment of five sen per share, translating to a total dividend pay-out of RM182.41 million. New Straits Times
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Resolving the misguided perceptions of deforestation for sustainable growth
The government needs to immediately address the issue of deforestation as a key problem affecting both the environmental and economic viability of investment in the palm oil industry.
Food and renewable energy are among the top priority targets for investment through Danantara, the new sovereign wealth fund launched on Feb. 24 by President Prabowo Subianto. With US$900 billion in assets under its management, the development of palm oil fits well with the program due to the role this commodity plays as a major source of food and biofuel.
Logically, the huge amount of investment needed in natural resource-based industry development will require more space and land resources for expansion. Unfortunately, such land development plans may encounter classic social and environmental issues, particularly deforestation allegations which often hinder investment.
It is then necessary for the government and Danantara to work on the potential roadblocks and immediately address the deforestation issue as one of the key pertinent problems affecting both the environmental and economic viability of investment in the palm oil industry.
Indonesia, with a total land area of 188 million hectares (ha), is divided into two general spatial and land-use management categories, namely “forest area” and “non-forest area”, or “other land-use area”. Based on Forestry Ministry data, there are 120.3 million ha, or 64 percent of Indonesia's landmass, designated as forest area, while the remaining 36 percent is designated as development or other land-use area.
Judging from the landmass and land development opportunity, Danantara’s investment in the palm oil industry is not only highly economically viable and profitable, but also fits well with renewable energy, one of its priority investment targets. Even Malaysia, the world’s second largest palm oil producer after Indonesia, announced recently its ambition to become a major producer of renewable energy based on palm oil. Jakarta Post
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How your choices at the checkout can affect wildlife at home and abroad
The surprising connections between wildlife and our household goods and tips for making more informed choices
Have you ever enjoyed your morning coffee while considering the plight of migratory birds? Sipped a glass of Pinot Noir while thinking about Pacific salmon?
The products we buy have impacts on the natural world, including wildlife, that we might not think of. And with limitless consumer choice, it's easy to overlook where these items come from.
But whether it's coffee that protects the habitats of migratory birds in Latin America and Africa, or vineyards that implement practices to help restore salmon habitats in the Pacific Northwest, there is a growing market for wildlife-friendly products.
The four-part series Shared Planet highlights the benefits that come from working with nature, including the more ethical consumer goods that make their way to you.
Can palm oil be orangutan-friendly?
Versatile and inexpensive, palm oil is in about half of the products on store shelves — everything from lipstick and chocolate to laundry detergent.
But palm oil is highly unsustainable. Indonesia and Malaysia produce more than 80 per cent of the world's palm oil, and millions of hectares of tropical rainforest have been cleared for palm plantations — destroying the habitat of wildlife like the orangutan. It's estimated that tens of thousands of orangutans have died over the last 20 years because of palm oil production.
In the heart of oil palm country on Borneo, the Shared Planet team met Mariana (Dadai) Singgong. Born and raised in the Kinabatangan district, she has witnessed first-hand the massive scale of deforestation there.
Now, she's working for a local conservation group, Hutan, and leads a reforestation team, in tandem with the Malaysian government's ambitious plan to replant 100 million native trees across Malaysia.
Hutan has planted more than 220,000 trees in the Keruak Wildlife Corridor along the Kinabatangan River. It reconnects two areas of protected forest, transforming the landscape from a vast monoculture into a mosaic of palms and native species.
The results speak for themselves, as orangutans have moved back into these smaller patches of forest.
The palm oil produced from the plantation that provided some of the land for the corridor is certified as sustainable, and the reforestation efforts are good for business as well. CBC
Sweden Backs EU-Malaysia Free Trade Agreement To Strengthen Economic Ties
KUALA LUMPUR, March 1 (Bernama) -- Sweden has voiced strong support for a European Union (EU)-Malaysia free trade agreement (FTA), expressing hope that it will be finalised this year, seeing it as a crucial step towards boosting economic cooperation and attracting European investments.
Sweden’s Third Deputy Speaker of Parliament, Kerstin Lundgren, said the agreement could enhance Malaysia’s trade visibility in Europe and serve as a stepping stone for broader ASEAN-EU economic collaboration.
“We will be supportive of that, and I hope it can be agreed upon this year.
“A free trade agreement with the EU could help Malaysia move ahead in a better way and increase its visibility for European foreign direct investments. It could also open doors for other Southeast Asian countries,” she told Bernama in an exclusive interview.
In January this year, Malaysian Prime Minister Datuk Seri Anwar Ibrahim and EU President Ursula von der Leyen announced the resumption of negotiations for the Malaysia-EU FTA, following a decade-long stall due to concerns over palm oil procurement policies and sustainability clauses.
The Prime Minister’s Office (PMO) said the renewed engagement marks a significant milestone in strengthening Malaysia’s economic ties with one of the world’s largest trading blocs and underscores the country’s commitment to fostering deeper economic ties with the EU, a major trade and investment partner for Malaysia.
As part of Sweden’s broader commitment to Malaysia, Lundgren emphasised the importance of strengthening cooperation in trade, sustainability, and governance within the ASEAN framework.
She highlighted green technology and academic collaboration as key areas for further engagement, noting that Swedish companies are already investing in Malaysia’s renewable energy and energy efficiency solutions.
“Malaysia has knowledge in various areas from a warmer climate, and as a country in the high north, it is also important to learn from your experiences,” she said.
Lundgren reaffirmed that these investments reinforce Malaysia’s role as a strategic partner in sustainability efforts, adding that Malaysia’s ASEAN chairmanship and sustainability agenda align with Sweden’s priorities for regional economic and diplomatic cooperation.
Beyond trade, Lundgren also shared insights on Sweden’s parliamentary system, comparing its unicameral Riksdag with Malaysia’s bicameral system.
She explained that Sweden’s current system, implemented in 1974, was designed to strengthen parliamentary democracy by ensuring direct voter representation in government decisions.
Lundgren, who has played a significant role in Sweden’s parliament, also underscored the importance of female representation in politics.
She highlighted that women make up 47 per cent of the Swedish parliament, attributing this progress to political parties actively promoting gender equality through election list systems that encourage female participation.
“We try to do our best. We are not at the top, but we have made progress,” she noted, referring to Sweden’s former prime minister, who was elected in November 2021 as the country’s first female leader, as well as the increasing presence of women in leadership positions.-- BERNAMA
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FGV awaits US CBP's response on efforts to lift WRO
KUALA LUMPUR: FGV Holdings Bhd is actively engaging with the United States (US) Customs and Border Protection (CBP) to lift the withhold release order (WRO), following its submission of the petition to modify the WRO to the US CBP in June 2024.
The US CBP issued the WRO against the palm oil and palm oil products of FGV and its subsidiaries and joint ventures on Sept 30, 2020, barring entry of these products to the US.
Group chief executive officer Fakhrunniam Othman said FGV is waiting for the agency's response after submitting additional clarifications on labour compliance in mid-February 2025.
"We have submitted the petition to modify the WRO in June of last year. After that, the US CBP engaged with FGV to get additional information on specific issues relating to labour compliance according to the Malaysian laws,” he said.
In addition, group chief financial officer Datuk Mohd Hairul Abdul Hamid said that among the key clarifications sought by US CBP were the working hours and aspects related to the Malaysian immigration laws concerning foreign workers.
"There are certain clarifications that have been requested in terms of the overtime, because if you look at international labour standards, your overtime cannot exceed 60 hours per week whereas in Malaysia, it is up to 104 hours.
"So, they need confirmation on whether FGV has complied with the Malaysian law,” he said. The StarMY
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FGV earnings soar to RM276mil driven by CPO prices, productivity
KUALA LUMPUR: FGV Holdings Bhd's net profit more than doubled to RM276.25 million for the financial year ended Dec 31, 2024 (FY24) compared to RM101.62 million in FY23.
FGV's top-line growth remained resilient, with solid revenue of RM22.2 billion in FY24 compared to RM19.4 billion a year ago.
Group chief executive officer Fakhrunniam Othman said 2024 had been challenging yet rewarding, proving FGV's resilience in an increasingly dynamic and regulated market.
He noted that crude palm oil (CPO) prices fluctuated due to global supply-demand shifts and geopolitical tensions.
Meanwhile, stricter certification and sustainability standards, such as the Roundtable on Sustainable Palm Oil and the European Union Deforestation Regulation, are pushing the company to raise its standards.
"After a tough 2023, we have come back stronger, delivering solid results that reaffirm our position as a leading agribusiness player" he said at FGV's 2024 financial results briefing here today.
The company also registered an operating profit before fair value changes in land lease agreement and impairment of RM1.2 billion, representing an increase of 89 per cent from last year.
According to FGV, the plantation division emerged as the primary growth driver, contributing significantly to the company's overall performance.
It said this was underpinned by higher fresh fruit bunch (FFB) yield, stronger margins on palm products, supported by higher average CPO price realised at RM4,102 per tonne, compared to RM3,901 in FY23.
"The sugar division was also a strong contributor to the company's overall performance through higher sales volume and increased contributions," it said.
For the fourth quarter (Q4) ended Dec 31, 2024, FGV's net profit rose 65 per cent to RM116.21 million from RM70.44 million in the same period a year earlier.
The rise in net profit for the quarter was due to higher FFB prices as well as its sugar division's higher capacity utilisation.
Revenue for the quarter rose 10.4 per cent to RM5.92 billion in Q4 2024 versus RM5.36 billion last year.
FGV announced a final dividend payment of five sen per share, translating to a total dividend pay-out of RM182.41 million. New Straits Times
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Resolving the misguided perceptions of deforestation for sustainable growth
The government needs to immediately address the issue of deforestation as a key problem affecting both the environmental and economic viability of investment in the palm oil industry.
Food and renewable energy are among the top priority targets for investment through Danantara, the new sovereign wealth fund launched on Feb. 24 by President Prabowo Subianto. With US$900 billion in assets under its management, the development of palm oil fits well with the program due to the role this commodity plays as a major source of food and biofuel.
Logically, the huge amount of investment needed in natural resource-based industry development will require more space and land resources for expansion. Unfortunately, such land development plans may encounter classic social and environmental issues, particularly deforestation allegations which often hinder investment.
It is then necessary for the government and Danantara to work on the potential roadblocks and immediately address the deforestation issue as one of the key pertinent problems affecting both the environmental and economic viability of investment in the palm oil industry.
Indonesia, with a total land area of 188 million hectares (ha), is divided into two general spatial and land-use management categories, namely “forest area” and “non-forest area”, or “other land-use area”. Based on Forestry Ministry data, there are 120.3 million ha, or 64 percent of Indonesia's landmass, designated as forest area, while the remaining 36 percent is designated as development or other land-use area.
Judging from the landmass and land development opportunity, Danantara’s investment in the palm oil industry is not only highly economically viable and profitable, but also fits well with renewable energy, one of its priority investment targets. Even Malaysia, the world’s second largest palm oil producer after Indonesia, announced recently its ambition to become a major producer of renewable energy based on palm oil. Jakarta Post
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How your choices at the checkout can affect wildlife at home and abroad
The surprising connections between wildlife and our household goods and tips for making more informed choices
Have you ever enjoyed your morning coffee while considering the plight of migratory birds? Sipped a glass of Pinot Noir while thinking about Pacific salmon?
The products we buy have impacts on the natural world, including wildlife, that we might not think of. And with limitless consumer choice, it's easy to overlook where these items come from.
But whether it's coffee that protects the habitats of migratory birds in Latin America and Africa, or vineyards that implement practices to help restore salmon habitats in the Pacific Northwest, there is a growing market for wildlife-friendly products.
The four-part series Shared Planet highlights the benefits that come from working with nature, including the more ethical consumer goods that make their way to you.
Can palm oil be orangutan-friendly?
Versatile and inexpensive, palm oil is in about half of the products on store shelves — everything from lipstick and chocolate to laundry detergent.
But palm oil is highly unsustainable. Indonesia and Malaysia produce more than 80 per cent of the world's palm oil, and millions of hectares of tropical rainforest have been cleared for palm plantations — destroying the habitat of wildlife like the orangutan. It's estimated that tens of thousands of orangutans have died over the last 20 years because of palm oil production.
In the heart of oil palm country on Borneo, the Shared Planet team met Mariana (Dadai) Singgong. Born and raised in the Kinabatangan district, she has witnessed first-hand the massive scale of deforestation there.
Now, she's working for a local conservation group, Hutan, and leads a reforestation team, in tandem with the Malaysian government's ambitious plan to replant 100 million native trees across Malaysia.
Hutan has planted more than 220,000 trees in the Keruak Wildlife Corridor along the Kinabatangan River. It reconnects two areas of protected forest, transforming the landscape from a vast monoculture into a mosaic of palms and native species.
The results speak for themselves, as orangutans have moved back into these smaller patches of forest.
The palm oil produced from the plantation that provided some of the land for the corridor is certified as sustainable, and the reforestation efforts are good for business as well. CBC
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Palm oil news. March 2025 CSPO Watch