Palm oil news March 2025
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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