Palm oil news December 2025
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December 31, 2025
DPR Says Indonesian Palm Oil Industry is a Target of European Trade Interests
Member of Commission IV of the House of Representatives, Firman Soebagyo, said that the Indonesian palm oil industry is often the target of negative campaigns that are not entirely based on environmental concerns, but are wrapped in the interests of the economy and trade protectionism of developed countries, especially Europe.
According to him, the accusation that palm oil is the main cause of deforestation, environmental damage, and human rights violations is often presented unilaterally without seeing the global context and comparative facts with other commodities.
"The environmental issues directed at palm oil do not stand in a vacuum. There are very strong trade interests behind it. Our palm oil is too competitive, too efficient, and it disrupts the vegetable oil market of European countries," said Firman in his statement, Tuesday, December 30.
The Golkar Party legislator from the Central Java III District believes that oil palm has the highest productivity compared to other vegetable oil commodities. With a smaller land area, said Firman, oil palm is able to produce a large amount of oil, so that it is more environmentally efficient if managed properly.
Firman also highlighted the double standards that are often played in the global anti-palm oil campaign. He assessed that the countries that are most vocal in criticizing palm oil actually turn a blind eye to their own agricultural practices, which also have significant environmental impacts.
"When it comes to the environment, it must be fair. Don't just highlight palm oil, while soybeans, sunflowers, or rapeseed that need much wider land have never been questioned," said the Deputy Chairman of KADIN Indonesia.
Furthermore, Firman reminded that millions of Indonesians depend on the palm oil sector, ranging from small farmers, plantation workers, to UMKM players in the production center area. Therefore, according to him, the narrative that blindly discredits palm oil has the potential to threaten the economic and social resilience of the community.
"For us, palm oil is not just an export commodity. This is about employment, poverty alleviation, and the sustainability of rural economies. Don't sacrifice the interests of the people just to meet the standards of a developed country," said Firman.
The Deputy Chairman of the Golkar Party Faction of the MPR RI also admitted that the sustainability of the palm oil industry remains an important concern. However, he hopes that Indonesia will not remain silent by implementing various policies, ranging from ISPO certification, a moratorium on new permits, to strengthening the transparency of plantation governance.
"Indonesia and Malaysia have moved towards a sustainable palm oil industry. This is a fact that is often ignored by NGOs and critic countries," said Firman.
He also dismissed the notion that palm oil is always synonymous with environmental damage. According to Firman, with proper management, palm plantations actually have ecological contributions, including carbon absorption and land use improvement.
"What we have to fight is not the palm oil, but the bad practices. If managed properly, palm oil should actually be a solution, not a problem that we should be worried about," said this member of the DPR Baleg.
Firman also encouraged the government to be more aggressive in building international diplomacy and fighting global disinformation about Indonesian palm oil. He emphasized the importance of data-based narratives and national interests so that Indonesia does not continue to be in a defensive position.
"We must not continue to ask for understanding. We must speak firmly, based on data, and defend the interests of farmers and our own nation," he concluded. VOI
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Egypt emerges Indonesia’s biggest African export market with $1.59 billion in 2025
Indonesia’s trade relationship with Egypt reached a new high in 2025, with Indonesian exports to the North African country valued at $1.59 billion in the first 10 months of the year, according to data from Statistics Indonesia.
The latest numbers underscore a deepening economic partnership between Southeast Asia’s largest economy and one of Africa’s most populous nations.
Overall trade between the two countries expanded by 37.16 per cent as of October 2025 compared with the same period last year, reflecting what Indonesian officials describe as increasingly robust commercial ties.
Indonesia’s ambassador to Egypt, Lutfi Rauf, said the export performance highlights Egypt's growing importance in Indonesia’s Africa strategy.
“Indonesian exports value to Egypt reaches $1.59 billion, making it the largest in Africa,” he said during a visit to Al Shorouk Company for Import and Export Plantation in Egypt’s Menofia Province.
Beyond the headline growth, the trade relationship has shown resilience over time. Indonesia and Egypt have recorded positive trade growth for five consecutive years, averaging 5.77 per cent annually. In 2025, Indonesia maintained a strong trade surplus with Egypt, estimated at $1.23 billion. Business Insider Africa
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EU legislation intended to fight deforestation has been effectively ‘dismantled’
Law’s original author points to removal of obligations for downstream traders to verify origin of commodities
It was hailed by campaigners around the world as a game-changing piece of legislation that would help stop deforestation.
But when a bullet-ridden version of the EU’s deforestation regulation, once supposed to be the crown of the Green Deal, finally limped across the legislative line this month, not even its architect was smiling, and one politician said it had been pretty much “dismantled”.
Hugo Schally, the law’s original author who has since retired from the European Commission, told the Guardian he believed it had been “hollowed out” by the removal of obligations on downstream traders to verify the origin of commodities such as palm oil, soy, wood, beef, rubber, cocoa and coffee.
“There now will be fewer actors with direct obligations, fewer data points along the value chain and less precise origin data, which will make enforcement and eventual prosecution more difficult,” he said.
The Green party’s vice-president in the European Parliament, Marie Toussaint, went further, saying that delays, loopholes and an added exemption for printed products – an apparent sop to appease President Donald Trump – amounted to the “political dismantling” of the law. She called on the commission to withdraw the proposal.
It is a far cry from the hopes of the 1.2 million EU citizens who signed the petition kickstarting the process to ban deforestation-linked products from Europe’s market in 2020. Launching the proposal in 2021, the EU’s then-Green Deal commissioner, Frans Timmermans, trumpeted it as “the most ambitious … ever put forward” to combat forest loss.
Four hundred and 20 million hectares of forest – an area larger than the EU itself – have disappeared since 1990, in part thanks to Europe’s consumption patterns. Timmermans said that the draft law showed “our willingness to walk our ‘green talks’ globally”.
But critics say that the proposal’s unravelling shows the EU’s willingness to walk back the green talk. The law was twice delayed, for 12 months each time, over IT issues, drawing condemnation even from the environment commissioner who initially oversaw it. “By reopening this file instead of solving a simple IT problem, the commission opened Pandora’s box,” Toussaint said. The Guardian
DPR Says Indonesian Palm Oil Industry is a Target of European Trade Interests
Member of Commission IV of the House of Representatives, Firman Soebagyo, said that the Indonesian palm oil industry is often the target of negative campaigns that are not entirely based on environmental concerns, but are wrapped in the interests of the economy and trade protectionism of developed countries, especially Europe.
According to him, the accusation that palm oil is the main cause of deforestation, environmental damage, and human rights violations is often presented unilaterally without seeing the global context and comparative facts with other commodities.
"The environmental issues directed at palm oil do not stand in a vacuum. There are very strong trade interests behind it. Our palm oil is too competitive, too efficient, and it disrupts the vegetable oil market of European countries," said Firman in his statement, Tuesday, December 30.
The Golkar Party legislator from the Central Java III District believes that oil palm has the highest productivity compared to other vegetable oil commodities. With a smaller land area, said Firman, oil palm is able to produce a large amount of oil, so that it is more environmentally efficient if managed properly.
Firman also highlighted the double standards that are often played in the global anti-palm oil campaign. He assessed that the countries that are most vocal in criticizing palm oil actually turn a blind eye to their own agricultural practices, which also have significant environmental impacts.
"When it comes to the environment, it must be fair. Don't just highlight palm oil, while soybeans, sunflowers, or rapeseed that need much wider land have never been questioned," said the Deputy Chairman of KADIN Indonesia.
Furthermore, Firman reminded that millions of Indonesians depend on the palm oil sector, ranging from small farmers, plantation workers, to UMKM players in the production center area. Therefore, according to him, the narrative that blindly discredits palm oil has the potential to threaten the economic and social resilience of the community.
"For us, palm oil is not just an export commodity. This is about employment, poverty alleviation, and the sustainability of rural economies. Don't sacrifice the interests of the people just to meet the standards of a developed country," said Firman.
The Deputy Chairman of the Golkar Party Faction of the MPR RI also admitted that the sustainability of the palm oil industry remains an important concern. However, he hopes that Indonesia will not remain silent by implementing various policies, ranging from ISPO certification, a moratorium on new permits, to strengthening the transparency of plantation governance.
"Indonesia and Malaysia have moved towards a sustainable palm oil industry. This is a fact that is often ignored by NGOs and critic countries," said Firman.
He also dismissed the notion that palm oil is always synonymous with environmental damage. According to Firman, with proper management, palm plantations actually have ecological contributions, including carbon absorption and land use improvement.
"What we have to fight is not the palm oil, but the bad practices. If managed properly, palm oil should actually be a solution, not a problem that we should be worried about," said this member of the DPR Baleg.
Firman also encouraged the government to be more aggressive in building international diplomacy and fighting global disinformation about Indonesian palm oil. He emphasized the importance of data-based narratives and national interests so that Indonesia does not continue to be in a defensive position.
"We must not continue to ask for understanding. We must speak firmly, based on data, and defend the interests of farmers and our own nation," he concluded. VOI
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Egypt emerges Indonesia’s biggest African export market with $1.59 billion in 2025
Indonesia’s trade relationship with Egypt reached a new high in 2025, with Indonesian exports to the North African country valued at $1.59 billion in the first 10 months of the year, according to data from Statistics Indonesia.
- Indonesia’s exports to Egypt hit a record $1.59 billion in the first ten months of 2025.
- The milestone makes Egypt Indonesia’s largest export market in Africa and third in the Middle East.
- Overall bilateral trade grew by over 37 per cent year-on-year, with Indonesia maintaining a $1.23 billion surplus.
- Both countries are expanding the range of traded goods, from palm oil and coffee to fertiliser and dates.
The latest numbers underscore a deepening economic partnership between Southeast Asia’s largest economy and one of Africa’s most populous nations.
Overall trade between the two countries expanded by 37.16 per cent as of October 2025 compared with the same period last year, reflecting what Indonesian officials describe as increasingly robust commercial ties.
Indonesia’s ambassador to Egypt, Lutfi Rauf, said the export performance highlights Egypt's growing importance in Indonesia’s Africa strategy.
“Indonesian exports value to Egypt reaches $1.59 billion, making it the largest in Africa,” he said during a visit to Al Shorouk Company for Import and Export Plantation in Egypt’s Menofia Province.
Beyond the headline growth, the trade relationship has shown resilience over time. Indonesia and Egypt have recorded positive trade growth for five consecutive years, averaging 5.77 per cent annually. In 2025, Indonesia maintained a strong trade surplus with Egypt, estimated at $1.23 billion. Business Insider Africa
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EU legislation intended to fight deforestation has been effectively ‘dismantled’
Law’s original author points to removal of obligations for downstream traders to verify origin of commodities
It was hailed by campaigners around the world as a game-changing piece of legislation that would help stop deforestation.
But when a bullet-ridden version of the EU’s deforestation regulation, once supposed to be the crown of the Green Deal, finally limped across the legislative line this month, not even its architect was smiling, and one politician said it had been pretty much “dismantled”.
Hugo Schally, the law’s original author who has since retired from the European Commission, told the Guardian he believed it had been “hollowed out” by the removal of obligations on downstream traders to verify the origin of commodities such as palm oil, soy, wood, beef, rubber, cocoa and coffee.
“There now will be fewer actors with direct obligations, fewer data points along the value chain and less precise origin data, which will make enforcement and eventual prosecution more difficult,” he said.
The Green party’s vice-president in the European Parliament, Marie Toussaint, went further, saying that delays, loopholes and an added exemption for printed products – an apparent sop to appease President Donald Trump – amounted to the “political dismantling” of the law. She called on the commission to withdraw the proposal.
It is a far cry from the hopes of the 1.2 million EU citizens who signed the petition kickstarting the process to ban deforestation-linked products from Europe’s market in 2020. Launching the proposal in 2021, the EU’s then-Green Deal commissioner, Frans Timmermans, trumpeted it as “the most ambitious … ever put forward” to combat forest loss.
Four hundred and 20 million hectares of forest – an area larger than the EU itself – have disappeared since 1990, in part thanks to Europe’s consumption patterns. Timmermans said that the draft law showed “our willingness to walk our ‘green talks’ globally”.
But critics say that the proposal’s unravelling shows the EU’s willingness to walk back the green talk. The law was twice delayed, for 12 months each time, over IT issues, drawing condemnation even from the environment commissioner who initially oversaw it. “By reopening this file instead of solving a simple IT problem, the commission opened Pandora’s box,” Toussaint said. The Guardian
December 30, 2025
The Biofuel Tug-of-War: Shifting Soybean and Palm Oil Dynamics
As 2025 draws to a close, the global agricultural markets are witnessing a fundamental restructuring of the relationship between the world’s two most important vegetable oils. For decades, the price spread between soybean oil and palm oil was dictated by harvest cycles and kitchen demand. However, as of December 29, 2025, that historical logic has been largely discarded, replaced by a volatile, policy-driven dynamic fueled by aggressive biofuel mandates in Southeast Asia and a protectionist shift in United States energy policy.
The immediate implications are stark: the "food vs. fuel" debate has evolved into a full-scale competition for feedstock dominance. With Indonesia aggressively locking down its palm oil supply for domestic energy and the U.S. implementing strict domestic-only requirements for biofuel tax credits, the global "fat gap" is narrowing. This has created a "wait-and-see" volatility where prices for Archer-Daniels-Midland (NYSE: ADM) and Bunge Global SA (NYSE: BG) are now more sensitive to carbon-intensity scores and legislative "Regulatory Freezes" than to actual crop yields.
A Year of Policy Shocks and Narrowing Spreads
The primary catalyst for this market transformation was the implementation of Indonesia’s B40 mandate on January 1, 2025. By requiring a 40% palm-based blend in domestic diesel, Indonesia effectively placed a "floor" under palm oil prices, curtailing exports and driving Bursa Malaysia futures to hover between 4,100 and 4,500 ringgit (~$970–$1,050/mt) throughout the year. This aggressive move was further complicated by President Prabowo Subianto’s push for a B50 mandate. While technical hurdles have led the government to consider a B45 interim step for 2026, the signal to the market was clear: palm oil is no longer just a cooking ingredient; it is a strategic energy reserve.
In the United States, the passage of the "One Big Beautiful Bill" (OBBB) in July 2025 sent shockwaves through the soybean complex. The legislation extended the Section 45Z Clean Fuel Production Credit but introduced a "North American-only" feedstock requirement. This move was designed to boost domestic soybean oil demand but has ironically led to a period of "crush margin compression." Refiners, uncertain of the final carbon-intensity (CI) scoring guidance due to a late-year regulatory freeze, have been hesitant to sign long-term contracts. Consequently, the soybean oil premium over palm oil, which peaked at $247/mt in mid-2025, has narrowed significantly to approximately $50/mt as of late December.
Winners and Losers in the New Regulatory Landscape
The divergence in corporate performance this year has been a tale of two strategies: global agility versus domestic concentration. Bunge Global SA (NYSE: BG) has emerged as a relative winner, successfully integrating its $7.3 billion acquisition of Viterra. This massive footprint has allowed Bunge to navigate regional trade bottlenecks and leverage strong South American processing capacity to offset thin margins in North America. Conversely, Archer-Daniels-Midland (NYSE: ADM) has struggled, significantly slashing its 2025 guidance after reporting a 93% drop in 3Q crushing profits. ADM’s heavy reliance on the U.S. domestic market made it particularly vulnerable to the 45Z policy delays and the resulting margin squeeze.
In the specialized biofuel sector, Darling Ingredients (NYSE: DAR) has positioned itself as a "clear winner" of the OBBB Act. By controlling the largest North American network for waste fats, such as used cooking oil (UCO) and tallow, Darling has created a protective moat. Foreign competitors like Neste (HEL: NESTE) have been forced to re-optimize their global flows, moving Singapore-produced shipments away from the U.S. and toward the European Union to meet ReFuelEU aviation mandates. While Neste's Sustainable Aviation Fuel (SAF) volumes tripled in 2025, its margins have faced pressure from the loss of U.S. subsidy eligibility for its non-North American feedstocks.
The Energy-Linked Decoupling
The wider significance of these shifts lies in the "industrial decoupling" of vegetable oils from the broader agricultural complex. Historically, soybean oil prices were tethered to soybean meal—the protein used for animal feed. In 2025, however, soybean oil has increasingly traded in parallel with crude oil and the "POGO" (Palm Oil-Gasoil) spread. This energy-linkage means that agricultural traders now spend as much time analyzing OPEC+ production cuts as they do South American weather patterns.
Furthermore, the "North American-first" policy in the U.S. has triggered a global ripple effect. By effectively banning imported Chinese UCO and Brazilian tallow for subsidized fuel production, the U.S. has forced these feedstocks into the European and Asian markets, creating a two-tiered pricing system for "low-carbon" fats. This regulatory fragmentation is reshaping global trade routes, with "green" fuels flowing toward the highest subsidy regimes rather than the most efficient logistical paths. Historical precedents, such as the 2007 Renewable Fuel Standard, pale in comparison to the sheer volume of vegetable oil now being diverted from plates to fuel tanks.
The Road Ahead: B50 and the SAF Frontier
Looking toward 2026, the market is bracing for the next phase of this transition. The short-term focus remains on the U.S. Treasury’s final 45Z guidance, which will determine the exact value of tax credits based on farming practices. If the guidance favors "climate-smart" agriculture, we could see a massive influx of investment into low-CI soybean production. Meanwhile, Indonesia’s potential move to B45 or B50 remains the "X-factor" for palm oil. A full B50 implementation would require nearly 20 million kiloliters of palm oil annually, a volume that could theoretically eliminate Indonesia’s export surplus and send global vegetable oil prices into a new stratosphere.
The long-term opportunity lies in Sustainable Aviation Fuel (SAF). With major carriers like DHL Express signing massive offtake agreements with Neste, and Darling Ingredients scaling its Port Arthur facility to upgrade half of its capacity to SAF, the aviation sector is becoming the new "must-serve" customer. For companies like Wilmar International (SGX: F34), the challenge will be maintaining access to the European market under the EU Deforestation Regulation (EUDR) while simultaneously feeding the growing energy hunger of the Southeast Asian domestic market.
Final Thoughts for the 2026 Investor
The era of "cheap" vegetable oil appears to be a relic of the past. As we enter 2026, the market has transitioned from being supply-driven to being policy-driven. While record harvests in Brazil might traditionally suggest lower prices, the voracious appetite of the biofuel and SAF sectors is effectively neutralizing any supply surplus. For investors, the key takeaway is that agricultural stocks are now, for all intents and purposes, energy stocks.
Moving forward, the primary indicators to watch are the Palm Oil-Gasoil spread, the finalization of the 45Z carbon scoring, and any shifts in Southeast Asian export levies. The "fat gap" is real, and as the world’s transportation sectors look to decarbonize, the humble soybean and oil palm have become the most contested commodities on the planet. Markets
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Food Industry Shouldering Unprecedented Financial Pressure, New Report Reveals
The latest findings from the Ideagen Food Industry Audit Report show financial risks are dominating the industry’s top 10 concerns, with 64% of businesses citing credit as their top anxiety, closely followed by commodity inflation (63%), liquidity (62%) and currency (53%).
Food and beverage businesses are navigating the most challenging financial environment in years, according to the latest report from Ideagen, a UK-based global software company that provides regulatory and compliance solutions.
The latest findings from the Ideagen Food Industry Audit Report show financial risks are dominating the industry’s top 10 concerns, with 64% of businesses citing credit as their top anxiety, closely followed by commodity inflation (63%), liquidity (62%) and currency (53%).
"Few industries matter more to everyday life than food and beverage," said Ideagen CEO Ben Dorks. “Whether it's the morning coffee that starts our day, the lunch that fuels us or the dinner that brings families together, this sector touches all of us in the most fundamental way. And yet, the sector is facing a financial squeeze that is dominating boardroom agendas at a time when businesses are also managing multiple competing priorities like supply chain fragility and geopolitical volatility. Business leaders are working to balance immediate operational needs with the strategic imperatives that drive long-term success."
Liquidity has emerged as the fastest-growing risk, surging 16 percentage points from 46% to 62% — the largest increase of any risk factor Ideagen tracked.
Supply chain risk has climbed to fifth place at 49%, up from 38% in 2024, as businesses continue adapting to permanent complexity. Geopolitical tensions, extreme weather events and shifting regulatory landscapes are creating ongoing challenges. An example of this is the European Deforestation Regulation (EUDR), set to take effect in the coming 12 months. The regulation mandates comprehensive traceability and geolocation data proving products are deforestation-free, covering key commodities including coffee, cocoa, soy and palm oil.
The report also reveals how climate pressures are reshaping operations, with nearly half (49%) of businesses now citing climate-related risks. This figure would place climate in fifth position overall if combined as a single category. Extreme weather events are prompting companies to diversify their supplier base geographically, as traditional sourcing patterns face new challenges. With 2024 confirmed as the warmest year on record globally, the agricultural impact on food production is becoming increasingly visible.
Regulatory risk holds firm at 27%, reflecting ongoing compliance requirements that demand attention across the sector. Meanwhile, labor shortage and workforce challenges affect over a third of the industry when combined, highlighting the operational complexity businesses are managing.
"Business leaders are demonstrating resilience and adaptability in a demanding environment," added Dorks. "The most successful operators are finding efficient ways to maintain their focus on quality assurance, compliance and operational excellence while managing immediate financial pressures. Technology platforms that integrate quality management, compliance and supply chain visibility can deliver both operational efficiency and strategic advantage — turning challenges into opportunities even in tight markets."
The report highlights that the business leaders who navigate this environment successfully will be those who maintain strategic discipline alongside financial management — with the approaches developed now shaping competitive positioning when market conditions normalize.
The full report is available here. Quality Assurance Mag
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Malaysian palm oil eyes US growth on zero tariffs
KUALA LUMPUR: Malaysia's palm oil industry is eyeing fresh growth in the United States after selected palm products secured zero-tariff access under the Malaysia-US agreement on reciprocal trade (ART).
Malaysian Palm Oil Board (MPOB) director general Datuk Dr Ahmad Parveez Ghulam Kadir said palm oil exports to the US remained strong in 2025, with shipments rising marginally to 173,005 tonnes from January to November.
Export value climbed 9.4 per cent to RM857.32 million, supported largely by downstream products such as oleochemicals and specialty fats, which benefit from stronger pricing power and buyer loyalty.
"Malaysia can remain competitive by focusing on value-added products while ensuring quality, continuity and choice for US buyers," he told Business Times.
Ahmad Parveez said the tariff-free access under ART has further strengthened Malaysia's competitiveness in the US market, particularly for downstream and specialised applications.
On sustainability, he said Malaysia is well positioned to meet increasingly stringent global regulations, including the European Union Deforestation Regulation (EUDR).
"Our strengthened Malaysian Sustainable Palm Oil (MSPO) 2.0 certification scheme and the National Traceability System ensure transparency and compliance with international standards," he said.
These initiatives integrate plantation mapping, licensing and certification data, reinforcing Malaysia's credibility and competitiveness in international markets.
Economist and plantation expert Dr Mohd Zulkufli Zakaria described the US zero-tariff access as a potential "game-changer" for Malaysia.
He said the agreement could lift biofuel-related demand and add one to two million tonnes of palm oil exports to the US.
However, he cautioned that stricter EU deforestation rules could disproportionately affect smallholders, potentially reshaping Malaysia's export mix.
"Malaysia may need to divert more CPO to markets such as India, China, the Middle East and Africa, while exports to the EU could fall significantly, possibly by up to 30 per cent," he said.
While Indonesia is likely to remain the world's largest exporter, Mohd Zulkufli said Malaysia could leverage its sustainability credentials to secure premium market niches, particularly in downstream and certified segments.
He also warned that US zero-tariff access is not guaranteed over the longer term, with outcomes dependent on factors such as inflation trends, global oilseed supply and rising operational costs linked to sustainability compliance.
To remain competitive, he said Malaysia must continue investing in smallholder support and accelerating digitalisation for traceability, even if this raises compliance costs for exports to the EU and the United Kingdom. NST
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MPOC: Boosting yields critical to palm oil sustainability
MALAYSIA’S future competitiveness and sustainability in palm oil increasingly hinge on the raising of yields, as stagnant production growth is beginning to constrain supply — a concern industry players have been flagging for decades.
Malaysian Palm Oil Council (MPOC) chairman Datuk Carl Bek-Nielsen says the industry has been talking about the need to lift yields for more than 30 years, yet progress has been limited and, in some cases, yields have even “regressed”. Setting “realistic” targets, rather than chasing ambitious benchmarks, is the most important sustainability criterion for the palm oil sector.
"If yields are low and commodity prices should swing south, that is a recipe for disaster. Whereas if your yields are high, you can somewhat cushion the extent if commodity prices should go lower,” he tells The Edge in an interview at MPOC’s headquarters in Petaling Jaya. He was joined by CEO Belvinder Kaur Sron.
This is his first media interview in his capacity as MPOC chairman since taking on the role in May 2023. A Danish national with permanent resident status in Malaysia, Bek-Nielsen has spent more than 30 years in the palm oil industry. He began his career at United Plantations Bhd (KL:UTDPLT) in 1993 as a cadet planter and has served as the group’s CEO since January 2013.
During the interview, he highlights that the target to lift national yields to six to seven tonnes of crude palm oil (CPO) per hectare is unrealistic, given the prevalence of ageing palms and delayed replanting, especially among smallholders. The national CPO yield stood at 3.28 tonnes/ha in 2024.
Instead, the industry should focus on incremental gains toward a more achievable target of about 4.5 tonnes/ha, which he believes Malaysia can reach by 2035. Improving yields would also support Malaysia’s case under the European Union Deforestation Regulation (EUDR), as higher productivity reduces the need to expand plantation land and addresses deforestation concerns.
“This (higher yield target) has been the talk for decades, yet we have never gotten there. It is time to move away from 3.3 tonnes/ha and gradually raise yields to about 4.5 tonnes/ha. If Malaysia could achieve this 4.5 tonnes/ha, it would be a truly marvellous achievement. I think it’s realistic, I really truly believe this is a goal we can work towards over time.”
“If you produce 4.5 tonnes of oil per hectare compared to what we are achieving now, you are using the same inputs and the same labour but getting much more, which immediately minimises the need to expand land and drive deforestation. Our job in this industry is to produce more food with less land, not more food with more land.
“If we can add 1.2 tonnes/ha, Malaysia would be producing about seven million tonnes more than it does today. Just imagine what that would mean for incomes, tax revenues and company profitability. From a sustainability perspective, producing an additional seven million tonnes of oil without expanding land means there is no need to clear more forests. That is the key sustainability issue,” he adds.
There is no single solution to raising yields. Instead, Bek-Nielsen says it requires a combination of initiatives that must be carried out across the industry and sustained over time, starting with replanting ageing palms with higher-yielding material.
“We need to make a concerted, systematic and disciplined approach. There has to be a top-down approach — this is what we are going to do, this is how we are going to do it — and then push it forward. Replanting has to start. After that, there must be better understanding and implementation of improved agronomic practices. When replanting, growers must use good, high-yielding seed material. It is futile to use inferior seedsbecause you will end up with the same results. It comes down to replanting with quality planting material and improving agronomic practices,” he explains.
The push to raise yields comes amid tightening global palm oil supply dynamics, as Indonesia — the world’s largest producer — diverts more output into its B40 biodiesel programme and its planned B50 rollout, while stepping up enforcement against oil palm plantations deemed illegal or lacking proper permits. If these trends persist, Bek-Nielsen warns that global supply constraints could emerge within the next six to nine months.
“Ten years ago, in 2015, Indonesia consumed about seven million tonnes of palm oil. Today, by the end of this year, Indonesia is likely to consume around 24 million tonnes. Look at that growth — the majority of it has come from biodiesel.
“In the past, what was available for the export market — palm oil, which has always been an exportable vegetable oil accounting for about 55% of all exportable oils — largely came from Indonesia and Malaysia. Now, the dynamics have changed because the volume of exportable oils is not so much there,” he says.
Indonesia and Malaysia are the top two palm oil producers in the world, producing 48.16 million tonnes and 19.34 million tonnes respectively in 2024.
Another challenge facing the palm oil industry is rising input costs, particularly higher prices for fertilisers, spare parts and logistics. Logistics costs have climbed sharply following stricter enforcement on lorries, which has reduced load capacity and forced operators to deploy more vehicles to move the same volume of goods, says Bek-Nielsen.
EUDR delay adds confusion instead of clarity
The MPOC — the agency tasked with promoting Malaysian palm oil globally — has been vocal in criticising the EUDR’s implementation, arguing that its “standard” risk classification fails to reflect Malaysia’s sustainability progress and that compliance requirements remain unclear and costly.
Bek-Nielson points out that Malaysia has already curbed deforestation, with the country’s oil palm planted area declining from 5.88 million ha in 2020 to about 5.6 million ha in 2024 — the first sustained drop in nearly two decades. The reduction, which he says is equivalent to four times the size of Singapore, contrasts sharply with the continued expansion of soybean acreage by 10 million ha in Brazil and Argentina over the same period.
This is largely because plantation land has been repurposed for infrastructure, housing, data centres and solar farms, he says. For instance, several local plantation groups have begun leveraging their extensive land banks for non-plantation use, including industrial parks and renewable energy projects. Despite this, Malaysia remains classified as “standard risk” under the EUDR.
“It’s important for people to understand that we in the industry are intent on doing things in a more sustainable way. Does that mean that we are perfect? No. We have a lot of areas we can improve upon, and in the past we’ve done things that should not have been done when you look back retrospectively. But the good thing is, do we have good aspirations going forward? I would say yes,” he stresses.
The EUDR is aimed at ensuring that certain commodities sold in or exported from the EU are not linked to deforestation or forest degradation. It covers products such as palm oil, soy, beef, cocoa, coffee, rubber and timber, as well as their derivatives. The regulation was originally slated to take effect on Dec 30, 2024, but was delayed by a year to Dec 30, 2025, with a further postponement now expected to push implementation to end-2026.
The EU is Malaysia’s third-largest palm oil export destination — after India and Kenya — with 944,567 tonnes shipped from January to November 2025, accounting for about 6.8% of total Malaysian palm oil exports. India remained the largest market at 2.41 million tonnes (17.3% of total exports), followed by Kenya at 1.09 million tonnes (7.8% of total exports), Malaysian Palm Oil Board (MPOB) data shows.
The latest delay is “definitely not good news” for European manufacturers that have invested heavily in preparing for compliance, Bek-Nielsen says, adding that many are understandably frustrated by the lack of clarity and shifting timelines.
Among the affected commodities, palm oil is one of the most prepared for EUDR compliance, in contrast to crops such as coffee and cocoa, where production is dominated by millions of independent smallholders who face far greater challenges in meeting the regulation’s traceability and due-diligence requirements, he adds.
“Malaysia is ready. We can flood the EU with as much sustainable palm oil as they want, no problem. But I think they are not ready on their side because if they implement the EUDR, you have to ask this question: what is going to happen to the millions of independent smallholder cocoa and coffee farmers? They don’t know what a polygon is. They don’t have land titles — land has been passed down from ancestor to ancestor.
“So, you know, they are going to have problems. They are going to run out of coffee beans. There will be no café latte in Brussels or Strasbourg. That’s why they are holding back on the EUDR — they’re just not ready in Europe,” Bek-Nielsen adds.
he debate over EUDR compliance has also revived questions over which sustainability standards the EU should recognise. Bek-Nielsen argues that Malaysian Sustainable Palm Oil (MSPO) certification is ultimately more impactful than the Roundtable on Sustainable Palm Oil (RSPO), as it raises sustainability standards across the entire industry rather than among a select group of producers.
While RSPO remains important and may continue to command a price premium — buyers pay more for certified oil. Its stringent and evolving criteria mean that only about 20% of global palm oil producers can comply, he says.
“Don’t forget, I sat as co-chair of RSPO for 10 years, so I’m telling you RSPO is good — but it’s an elitist club. You will never get more than 20% of global palm oil producers to comply because the standards are extremely strict and the goalposts keep changing. What kind of sustainability impact does that have if only 20% can comply? What about the other 80%? To me, that is not impactful. With MSPO, the Malaysian government has taken a strong top-down approach. It may not fully match RSPO, but it is very close. And if you can get 95% of producers in Malaysia to comply, it is like a rising tide lifting both small sampans and big yachts at the same time. The impact is tremendous. It delivers a far greater sustainability impact than RSPO because it raises both the floor and the ceiling simultaneously.
“RSPO can still command a premium. But MSPO, at scale, will have a disproportionately larger positive environmental impact simply because almost everyone complies,” he adds.
Africa ‘can’t get enough’ of palm oil
Against a backdrop of softer demand and negative sentiment in the EU, Malaysia has been diversifying its palm oil export markets, redirecting volumes to other regions. Africa is expected to emerge as a key growth market, supported by rapid population growth and rising consumption, says Bek-Nielsen.
Africa is already a net importer of palm oil and “can’t get enough” of the commodity as its population continues to expand. Bek-Nielsen points to projections showing Africa’s population rising from about 1.4 billion today to roughly 4 billion by 2100, by which time nearly 80% of the world’s population is expected to live in Africa or Asia.
He sees opportunity in the gap between Africa’s and the developed world’s oils and fats consumption per capita of 12kg-13kg and 70kg-80kg. “There is going to be huge demand coming from Africa, and that is one of the areas MPOC is focusing on, as we divert our attention to some of these emerging markets.
“The great thing about Africa is that negative perceptions of palm oil do not exist, as it is part of daily household consumption. They welcome palm oil, but they do not have enough of it. Africa is a major net importer of palm oil today, and demand continues to grow as the population expands and the middle class booms,” Bek-Nielsen adds.
In fact, Africa’s rapid population growth and the potential for stronger palm oil demand have led to MPOC relocating its African office from Johannesburg in South Africa to Nairobi in Kenya while adding a branch office in Lagos, Nigeria, says Belvinder.
“Because it has become our most important market, we feel we should be there. We need at least two offices to manage our marketing and promotional activities in the region,” she adds.
CPO output seen at 20.3 mil tonnes for 2025
In the first nine months of 2025, nearly 50% of Malaysia’s palm oil exports went to sub-Saharan Africa, Asean and the Middle East, according to Belvinder. She notes that demand has softened in traditional markets such as India and China, as palm oil has lost its price discount to rival oils, prompting buyers to switch to soybean and sunflower oil.
“But as long as prices move to a level where palm oil becomes attractive again, we may see them return to the market. It is largely about price in these markets. They will still remain big buyers,” she adds.
Malaysia’s total CPO production in 2025 is expected to come in at 20.0 million to 20.3 million tonnes, supported by favourable weather conditions and improved labour availability, says Bek-Nielsen.
This would exceed the MPOB’s original full-year target of 19.5 million tonnes, which was revised to 20 million to 20.5 million tonnes recently. This followed November’s production data of 1.94 million tonnes — the highest since 2017 for the month, bringing CPO production for the 11 months in 2025 to 18.45 million tonnes.
In 2015, Malaysian recorded CPO production of 19.96 million tonnes, the highest level so far.
One of the main reasons for higher total production this year has been favourable climatic conditions.
“Also, for the first time in 15 to 20 years, the plantation industry has found itself in a situation that is no longer marked by acute labour shortages, but rather one with adequate or manageable labour,” he says, crediting former plantation and commodity minister Datuk Seri Johari Abdul Ghani for addressing the problem during his tenure. The Edge
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SE Asia’s smallholders struggling to meet EUDR: Interview with RECOFTC’s Martin Greijmans
The European Union Deforestation Regulation (EUDR) is set to take effect at the end of 2026, after EU lawmakers voted earlier this month to postpone its implementation for the second year in a row, citing technical concerns.
Its goal is to ensure that forest-linked products imported into the EU are deforestation-free by introducing mechanisms that enable companies trading seven commodities — cattle, cocoa, coffee, palm oil, rubber, soy and timber — to track their products’ origins throughout the entire supply chain.
While experts say increased oversight is a vital step to reduce the footprint of EU consumption on forests, others have warned that without appropriate support and governance mechanisms, the new rules could introduce inequities that harm small-scale producers.
Many smallholders lack the capacity and capital to comply with some aspects of the new regulations, for instance. This could see them sidelined in favor of bigger producers who can more easily adapt, according to Martin Greijmans, community enterprise program lead at RECOFTC, a Thailand-based community forest nonprofit.
Further complicating matters are limited resources to inform smallholders about how the regulations will affect their businesses, underscoring the need for greater efforts by governments and private companies to help smallholders adapt, he says.
“One shocking thing that I still come across is that many smallholders and small-scale companies still lack understanding of the EUDR’s mandatory nature,” Greijmans tells Mongabay. “They often mistake it for a voluntary certification.” Mongabay
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The Biofuel Tug-of-War: Shifting Soybean and Palm Oil Dynamics
As 2025 draws to a close, the global agricultural markets are witnessing a fundamental restructuring of the relationship between the world’s two most important vegetable oils. For decades, the price spread between soybean oil and palm oil was dictated by harvest cycles and kitchen demand. However, as of December 29, 2025, that historical logic has been largely discarded, replaced by a volatile, policy-driven dynamic fueled by aggressive biofuel mandates in Southeast Asia and a protectionist shift in United States energy policy.
The immediate implications are stark: the "food vs. fuel" debate has evolved into a full-scale competition for feedstock dominance. With Indonesia aggressively locking down its palm oil supply for domestic energy and the U.S. implementing strict domestic-only requirements for biofuel tax credits, the global "fat gap" is narrowing. This has created a "wait-and-see" volatility where prices for Archer-Daniels-Midland (NYSE: ADM) and Bunge Global SA (NYSE: BG) are now more sensitive to carbon-intensity scores and legislative "Regulatory Freezes" than to actual crop yields.
A Year of Policy Shocks and Narrowing Spreads
The primary catalyst for this market transformation was the implementation of Indonesia’s B40 mandate on January 1, 2025. By requiring a 40% palm-based blend in domestic diesel, Indonesia effectively placed a "floor" under palm oil prices, curtailing exports and driving Bursa Malaysia futures to hover between 4,100 and 4,500 ringgit (~$970–$1,050/mt) throughout the year. This aggressive move was further complicated by President Prabowo Subianto’s push for a B50 mandate. While technical hurdles have led the government to consider a B45 interim step for 2026, the signal to the market was clear: palm oil is no longer just a cooking ingredient; it is a strategic energy reserve.
In the United States, the passage of the "One Big Beautiful Bill" (OBBB) in July 2025 sent shockwaves through the soybean complex. The legislation extended the Section 45Z Clean Fuel Production Credit but introduced a "North American-only" feedstock requirement. This move was designed to boost domestic soybean oil demand but has ironically led to a period of "crush margin compression." Refiners, uncertain of the final carbon-intensity (CI) scoring guidance due to a late-year regulatory freeze, have been hesitant to sign long-term contracts. Consequently, the soybean oil premium over palm oil, which peaked at $247/mt in mid-2025, has narrowed significantly to approximately $50/mt as of late December.
Winners and Losers in the New Regulatory Landscape
The divergence in corporate performance this year has been a tale of two strategies: global agility versus domestic concentration. Bunge Global SA (NYSE: BG) has emerged as a relative winner, successfully integrating its $7.3 billion acquisition of Viterra. This massive footprint has allowed Bunge to navigate regional trade bottlenecks and leverage strong South American processing capacity to offset thin margins in North America. Conversely, Archer-Daniels-Midland (NYSE: ADM) has struggled, significantly slashing its 2025 guidance after reporting a 93% drop in 3Q crushing profits. ADM’s heavy reliance on the U.S. domestic market made it particularly vulnerable to the 45Z policy delays and the resulting margin squeeze.
In the specialized biofuel sector, Darling Ingredients (NYSE: DAR) has positioned itself as a "clear winner" of the OBBB Act. By controlling the largest North American network for waste fats, such as used cooking oil (UCO) and tallow, Darling has created a protective moat. Foreign competitors like Neste (HEL: NESTE) have been forced to re-optimize their global flows, moving Singapore-produced shipments away from the U.S. and toward the European Union to meet ReFuelEU aviation mandates. While Neste's Sustainable Aviation Fuel (SAF) volumes tripled in 2025, its margins have faced pressure from the loss of U.S. subsidy eligibility for its non-North American feedstocks.
The Energy-Linked Decoupling
The wider significance of these shifts lies in the "industrial decoupling" of vegetable oils from the broader agricultural complex. Historically, soybean oil prices were tethered to soybean meal—the protein used for animal feed. In 2025, however, soybean oil has increasingly traded in parallel with crude oil and the "POGO" (Palm Oil-Gasoil) spread. This energy-linkage means that agricultural traders now spend as much time analyzing OPEC+ production cuts as they do South American weather patterns.
Furthermore, the "North American-first" policy in the U.S. has triggered a global ripple effect. By effectively banning imported Chinese UCO and Brazilian tallow for subsidized fuel production, the U.S. has forced these feedstocks into the European and Asian markets, creating a two-tiered pricing system for "low-carbon" fats. This regulatory fragmentation is reshaping global trade routes, with "green" fuels flowing toward the highest subsidy regimes rather than the most efficient logistical paths. Historical precedents, such as the 2007 Renewable Fuel Standard, pale in comparison to the sheer volume of vegetable oil now being diverted from plates to fuel tanks.
The Road Ahead: B50 and the SAF Frontier
Looking toward 2026, the market is bracing for the next phase of this transition. The short-term focus remains on the U.S. Treasury’s final 45Z guidance, which will determine the exact value of tax credits based on farming practices. If the guidance favors "climate-smart" agriculture, we could see a massive influx of investment into low-CI soybean production. Meanwhile, Indonesia’s potential move to B45 or B50 remains the "X-factor" for palm oil. A full B50 implementation would require nearly 20 million kiloliters of palm oil annually, a volume that could theoretically eliminate Indonesia’s export surplus and send global vegetable oil prices into a new stratosphere.
The long-term opportunity lies in Sustainable Aviation Fuel (SAF). With major carriers like DHL Express signing massive offtake agreements with Neste, and Darling Ingredients scaling its Port Arthur facility to upgrade half of its capacity to SAF, the aviation sector is becoming the new "must-serve" customer. For companies like Wilmar International (SGX: F34), the challenge will be maintaining access to the European market under the EU Deforestation Regulation (EUDR) while simultaneously feeding the growing energy hunger of the Southeast Asian domestic market.
Final Thoughts for the 2026 Investor
The era of "cheap" vegetable oil appears to be a relic of the past. As we enter 2026, the market has transitioned from being supply-driven to being policy-driven. While record harvests in Brazil might traditionally suggest lower prices, the voracious appetite of the biofuel and SAF sectors is effectively neutralizing any supply surplus. For investors, the key takeaway is that agricultural stocks are now, for all intents and purposes, energy stocks.
Moving forward, the primary indicators to watch are the Palm Oil-Gasoil spread, the finalization of the 45Z carbon scoring, and any shifts in Southeast Asian export levies. The "fat gap" is real, and as the world’s transportation sectors look to decarbonize, the humble soybean and oil palm have become the most contested commodities on the planet. Markets
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Food Industry Shouldering Unprecedented Financial Pressure, New Report Reveals
The latest findings from the Ideagen Food Industry Audit Report show financial risks are dominating the industry’s top 10 concerns, with 64% of businesses citing credit as their top anxiety, closely followed by commodity inflation (63%), liquidity (62%) and currency (53%).
Food and beverage businesses are navigating the most challenging financial environment in years, according to the latest report from Ideagen, a UK-based global software company that provides regulatory and compliance solutions.
The latest findings from the Ideagen Food Industry Audit Report show financial risks are dominating the industry’s top 10 concerns, with 64% of businesses citing credit as their top anxiety, closely followed by commodity inflation (63%), liquidity (62%) and currency (53%).
"Few industries matter more to everyday life than food and beverage," said Ideagen CEO Ben Dorks. “Whether it's the morning coffee that starts our day, the lunch that fuels us or the dinner that brings families together, this sector touches all of us in the most fundamental way. And yet, the sector is facing a financial squeeze that is dominating boardroom agendas at a time when businesses are also managing multiple competing priorities like supply chain fragility and geopolitical volatility. Business leaders are working to balance immediate operational needs with the strategic imperatives that drive long-term success."
Liquidity has emerged as the fastest-growing risk, surging 16 percentage points from 46% to 62% — the largest increase of any risk factor Ideagen tracked.
Supply chain risk has climbed to fifth place at 49%, up from 38% in 2024, as businesses continue adapting to permanent complexity. Geopolitical tensions, extreme weather events and shifting regulatory landscapes are creating ongoing challenges. An example of this is the European Deforestation Regulation (EUDR), set to take effect in the coming 12 months. The regulation mandates comprehensive traceability and geolocation data proving products are deforestation-free, covering key commodities including coffee, cocoa, soy and palm oil.
The report also reveals how climate pressures are reshaping operations, with nearly half (49%) of businesses now citing climate-related risks. This figure would place climate in fifth position overall if combined as a single category. Extreme weather events are prompting companies to diversify their supplier base geographically, as traditional sourcing patterns face new challenges. With 2024 confirmed as the warmest year on record globally, the agricultural impact on food production is becoming increasingly visible.
Regulatory risk holds firm at 27%, reflecting ongoing compliance requirements that demand attention across the sector. Meanwhile, labor shortage and workforce challenges affect over a third of the industry when combined, highlighting the operational complexity businesses are managing.
"Business leaders are demonstrating resilience and adaptability in a demanding environment," added Dorks. "The most successful operators are finding efficient ways to maintain their focus on quality assurance, compliance and operational excellence while managing immediate financial pressures. Technology platforms that integrate quality management, compliance and supply chain visibility can deliver both operational efficiency and strategic advantage — turning challenges into opportunities even in tight markets."
The report highlights that the business leaders who navigate this environment successfully will be those who maintain strategic discipline alongside financial management — with the approaches developed now shaping competitive positioning when market conditions normalize.
The full report is available here. Quality Assurance Mag
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Malaysian palm oil eyes US growth on zero tariffs
KUALA LUMPUR: Malaysia's palm oil industry is eyeing fresh growth in the United States after selected palm products secured zero-tariff access under the Malaysia-US agreement on reciprocal trade (ART).
Malaysian Palm Oil Board (MPOB) director general Datuk Dr Ahmad Parveez Ghulam Kadir said palm oil exports to the US remained strong in 2025, with shipments rising marginally to 173,005 tonnes from January to November.
Export value climbed 9.4 per cent to RM857.32 million, supported largely by downstream products such as oleochemicals and specialty fats, which benefit from stronger pricing power and buyer loyalty.
"Malaysia can remain competitive by focusing on value-added products while ensuring quality, continuity and choice for US buyers," he told Business Times.
Ahmad Parveez said the tariff-free access under ART has further strengthened Malaysia's competitiveness in the US market, particularly for downstream and specialised applications.
On sustainability, he said Malaysia is well positioned to meet increasingly stringent global regulations, including the European Union Deforestation Regulation (EUDR).
"Our strengthened Malaysian Sustainable Palm Oil (MSPO) 2.0 certification scheme and the National Traceability System ensure transparency and compliance with international standards," he said.
These initiatives integrate plantation mapping, licensing and certification data, reinforcing Malaysia's credibility and competitiveness in international markets.
Economist and plantation expert Dr Mohd Zulkufli Zakaria described the US zero-tariff access as a potential "game-changer" for Malaysia.
He said the agreement could lift biofuel-related demand and add one to two million tonnes of palm oil exports to the US.
However, he cautioned that stricter EU deforestation rules could disproportionately affect smallholders, potentially reshaping Malaysia's export mix.
"Malaysia may need to divert more CPO to markets such as India, China, the Middle East and Africa, while exports to the EU could fall significantly, possibly by up to 30 per cent," he said.
While Indonesia is likely to remain the world's largest exporter, Mohd Zulkufli said Malaysia could leverage its sustainability credentials to secure premium market niches, particularly in downstream and certified segments.
He also warned that US zero-tariff access is not guaranteed over the longer term, with outcomes dependent on factors such as inflation trends, global oilseed supply and rising operational costs linked to sustainability compliance.
To remain competitive, he said Malaysia must continue investing in smallholder support and accelerating digitalisation for traceability, even if this raises compliance costs for exports to the EU and the United Kingdom. NST
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MPOC: Boosting yields critical to palm oil sustainability
MALAYSIA’S future competitiveness and sustainability in palm oil increasingly hinge on the raising of yields, as stagnant production growth is beginning to constrain supply — a concern industry players have been flagging for decades.
Malaysian Palm Oil Council (MPOC) chairman Datuk Carl Bek-Nielsen says the industry has been talking about the need to lift yields for more than 30 years, yet progress has been limited and, in some cases, yields have even “regressed”. Setting “realistic” targets, rather than chasing ambitious benchmarks, is the most important sustainability criterion for the palm oil sector.
"If yields are low and commodity prices should swing south, that is a recipe for disaster. Whereas if your yields are high, you can somewhat cushion the extent if commodity prices should go lower,” he tells The Edge in an interview at MPOC’s headquarters in Petaling Jaya. He was joined by CEO Belvinder Kaur Sron.
This is his first media interview in his capacity as MPOC chairman since taking on the role in May 2023. A Danish national with permanent resident status in Malaysia, Bek-Nielsen has spent more than 30 years in the palm oil industry. He began his career at United Plantations Bhd (KL:UTDPLT) in 1993 as a cadet planter and has served as the group’s CEO since January 2013.
During the interview, he highlights that the target to lift national yields to six to seven tonnes of crude palm oil (CPO) per hectare is unrealistic, given the prevalence of ageing palms and delayed replanting, especially among smallholders. The national CPO yield stood at 3.28 tonnes/ha in 2024.
Instead, the industry should focus on incremental gains toward a more achievable target of about 4.5 tonnes/ha, which he believes Malaysia can reach by 2035. Improving yields would also support Malaysia’s case under the European Union Deforestation Regulation (EUDR), as higher productivity reduces the need to expand plantation land and addresses deforestation concerns.
“This (higher yield target) has been the talk for decades, yet we have never gotten there. It is time to move away from 3.3 tonnes/ha and gradually raise yields to about 4.5 tonnes/ha. If Malaysia could achieve this 4.5 tonnes/ha, it would be a truly marvellous achievement. I think it’s realistic, I really truly believe this is a goal we can work towards over time.”
“If you produce 4.5 tonnes of oil per hectare compared to what we are achieving now, you are using the same inputs and the same labour but getting much more, which immediately minimises the need to expand land and drive deforestation. Our job in this industry is to produce more food with less land, not more food with more land.
“If we can add 1.2 tonnes/ha, Malaysia would be producing about seven million tonnes more than it does today. Just imagine what that would mean for incomes, tax revenues and company profitability. From a sustainability perspective, producing an additional seven million tonnes of oil without expanding land means there is no need to clear more forests. That is the key sustainability issue,” he adds.
There is no single solution to raising yields. Instead, Bek-Nielsen says it requires a combination of initiatives that must be carried out across the industry and sustained over time, starting with replanting ageing palms with higher-yielding material.
“We need to make a concerted, systematic and disciplined approach. There has to be a top-down approach — this is what we are going to do, this is how we are going to do it — and then push it forward. Replanting has to start. After that, there must be better understanding and implementation of improved agronomic practices. When replanting, growers must use good, high-yielding seed material. It is futile to use inferior seedsbecause you will end up with the same results. It comes down to replanting with quality planting material and improving agronomic practices,” he explains.
The push to raise yields comes amid tightening global palm oil supply dynamics, as Indonesia — the world’s largest producer — diverts more output into its B40 biodiesel programme and its planned B50 rollout, while stepping up enforcement against oil palm plantations deemed illegal or lacking proper permits. If these trends persist, Bek-Nielsen warns that global supply constraints could emerge within the next six to nine months.
“Ten years ago, in 2015, Indonesia consumed about seven million tonnes of palm oil. Today, by the end of this year, Indonesia is likely to consume around 24 million tonnes. Look at that growth — the majority of it has come from biodiesel.
“In the past, what was available for the export market — palm oil, which has always been an exportable vegetable oil accounting for about 55% of all exportable oils — largely came from Indonesia and Malaysia. Now, the dynamics have changed because the volume of exportable oils is not so much there,” he says.
Indonesia and Malaysia are the top two palm oil producers in the world, producing 48.16 million tonnes and 19.34 million tonnes respectively in 2024.
Another challenge facing the palm oil industry is rising input costs, particularly higher prices for fertilisers, spare parts and logistics. Logistics costs have climbed sharply following stricter enforcement on lorries, which has reduced load capacity and forced operators to deploy more vehicles to move the same volume of goods, says Bek-Nielsen.
EUDR delay adds confusion instead of clarity
The MPOC — the agency tasked with promoting Malaysian palm oil globally — has been vocal in criticising the EUDR’s implementation, arguing that its “standard” risk classification fails to reflect Malaysia’s sustainability progress and that compliance requirements remain unclear and costly.
Bek-Nielson points out that Malaysia has already curbed deforestation, with the country’s oil palm planted area declining from 5.88 million ha in 2020 to about 5.6 million ha in 2024 — the first sustained drop in nearly two decades. The reduction, which he says is equivalent to four times the size of Singapore, contrasts sharply with the continued expansion of soybean acreage by 10 million ha in Brazil and Argentina over the same period.
This is largely because plantation land has been repurposed for infrastructure, housing, data centres and solar farms, he says. For instance, several local plantation groups have begun leveraging their extensive land banks for non-plantation use, including industrial parks and renewable energy projects. Despite this, Malaysia remains classified as “standard risk” under the EUDR.
“It’s important for people to understand that we in the industry are intent on doing things in a more sustainable way. Does that mean that we are perfect? No. We have a lot of areas we can improve upon, and in the past we’ve done things that should not have been done when you look back retrospectively. But the good thing is, do we have good aspirations going forward? I would say yes,” he stresses.
The EUDR is aimed at ensuring that certain commodities sold in or exported from the EU are not linked to deforestation or forest degradation. It covers products such as palm oil, soy, beef, cocoa, coffee, rubber and timber, as well as their derivatives. The regulation was originally slated to take effect on Dec 30, 2024, but was delayed by a year to Dec 30, 2025, with a further postponement now expected to push implementation to end-2026.
The EU is Malaysia’s third-largest palm oil export destination — after India and Kenya — with 944,567 tonnes shipped from January to November 2025, accounting for about 6.8% of total Malaysian palm oil exports. India remained the largest market at 2.41 million tonnes (17.3% of total exports), followed by Kenya at 1.09 million tonnes (7.8% of total exports), Malaysian Palm Oil Board (MPOB) data shows.
The latest delay is “definitely not good news” for European manufacturers that have invested heavily in preparing for compliance, Bek-Nielsen says, adding that many are understandably frustrated by the lack of clarity and shifting timelines.
Among the affected commodities, palm oil is one of the most prepared for EUDR compliance, in contrast to crops such as coffee and cocoa, where production is dominated by millions of independent smallholders who face far greater challenges in meeting the regulation’s traceability and due-diligence requirements, he adds.
“Malaysia is ready. We can flood the EU with as much sustainable palm oil as they want, no problem. But I think they are not ready on their side because if they implement the EUDR, you have to ask this question: what is going to happen to the millions of independent smallholder cocoa and coffee farmers? They don’t know what a polygon is. They don’t have land titles — land has been passed down from ancestor to ancestor.
“So, you know, they are going to have problems. They are going to run out of coffee beans. There will be no café latte in Brussels or Strasbourg. That’s why they are holding back on the EUDR — they’re just not ready in Europe,” Bek-Nielsen adds.
he debate over EUDR compliance has also revived questions over which sustainability standards the EU should recognise. Bek-Nielsen argues that Malaysian Sustainable Palm Oil (MSPO) certification is ultimately more impactful than the Roundtable on Sustainable Palm Oil (RSPO), as it raises sustainability standards across the entire industry rather than among a select group of producers.
While RSPO remains important and may continue to command a price premium — buyers pay more for certified oil. Its stringent and evolving criteria mean that only about 20% of global palm oil producers can comply, he says.
“Don’t forget, I sat as co-chair of RSPO for 10 years, so I’m telling you RSPO is good — but it’s an elitist club. You will never get more than 20% of global palm oil producers to comply because the standards are extremely strict and the goalposts keep changing. What kind of sustainability impact does that have if only 20% can comply? What about the other 80%? To me, that is not impactful. With MSPO, the Malaysian government has taken a strong top-down approach. It may not fully match RSPO, but it is very close. And if you can get 95% of producers in Malaysia to comply, it is like a rising tide lifting both small sampans and big yachts at the same time. The impact is tremendous. It delivers a far greater sustainability impact than RSPO because it raises both the floor and the ceiling simultaneously.
“RSPO can still command a premium. But MSPO, at scale, will have a disproportionately larger positive environmental impact simply because almost everyone complies,” he adds.
Africa ‘can’t get enough’ of palm oil
Against a backdrop of softer demand and negative sentiment in the EU, Malaysia has been diversifying its palm oil export markets, redirecting volumes to other regions. Africa is expected to emerge as a key growth market, supported by rapid population growth and rising consumption, says Bek-Nielsen.
Africa is already a net importer of palm oil and “can’t get enough” of the commodity as its population continues to expand. Bek-Nielsen points to projections showing Africa’s population rising from about 1.4 billion today to roughly 4 billion by 2100, by which time nearly 80% of the world’s population is expected to live in Africa or Asia.
He sees opportunity in the gap between Africa’s and the developed world’s oils and fats consumption per capita of 12kg-13kg and 70kg-80kg. “There is going to be huge demand coming from Africa, and that is one of the areas MPOC is focusing on, as we divert our attention to some of these emerging markets.
“The great thing about Africa is that negative perceptions of palm oil do not exist, as it is part of daily household consumption. They welcome palm oil, but they do not have enough of it. Africa is a major net importer of palm oil today, and demand continues to grow as the population expands and the middle class booms,” Bek-Nielsen adds.
In fact, Africa’s rapid population growth and the potential for stronger palm oil demand have led to MPOC relocating its African office from Johannesburg in South Africa to Nairobi in Kenya while adding a branch office in Lagos, Nigeria, says Belvinder.
“Because it has become our most important market, we feel we should be there. We need at least two offices to manage our marketing and promotional activities in the region,” she adds.
CPO output seen at 20.3 mil tonnes for 2025
In the first nine months of 2025, nearly 50% of Malaysia’s palm oil exports went to sub-Saharan Africa, Asean and the Middle East, according to Belvinder. She notes that demand has softened in traditional markets such as India and China, as palm oil has lost its price discount to rival oils, prompting buyers to switch to soybean and sunflower oil.
“But as long as prices move to a level where palm oil becomes attractive again, we may see them return to the market. It is largely about price in these markets. They will still remain big buyers,” she adds.
Malaysia’s total CPO production in 2025 is expected to come in at 20.0 million to 20.3 million tonnes, supported by favourable weather conditions and improved labour availability, says Bek-Nielsen.
This would exceed the MPOB’s original full-year target of 19.5 million tonnes, which was revised to 20 million to 20.5 million tonnes recently. This followed November’s production data of 1.94 million tonnes — the highest since 2017 for the month, bringing CPO production for the 11 months in 2025 to 18.45 million tonnes.
In 2015, Malaysian recorded CPO production of 19.96 million tonnes, the highest level so far.
One of the main reasons for higher total production this year has been favourable climatic conditions.
“Also, for the first time in 15 to 20 years, the plantation industry has found itself in a situation that is no longer marked by acute labour shortages, but rather one with adequate or manageable labour,” he says, crediting former plantation and commodity minister Datuk Seri Johari Abdul Ghani for addressing the problem during his tenure. The Edge
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SE Asia’s smallholders struggling to meet EUDR: Interview with RECOFTC’s Martin Greijmans
- The European Union Deforestation Regulation (EUDR) is set to take effect at the end of 2026, after EU lawmakers voted to postpone its implementation for a second year.
- The legislation aims to reduce commodity-driven deforestation and illegal trade in forest products by enabling companies importing into the EU to trace entire supply chains.
- Experts say the increased oversight is a vital step to reduce the footprint of EU consumption on forests, but caution that many smallholders across Southeast Asia need more support to prepare for compliance, especially on land documentation and geolocation data.
- Without appropriate technical, financial and governance support, observers warn, the new rules could sideline smallholders or push them into less regulated markets, deepening already existing inequities.
The European Union Deforestation Regulation (EUDR) is set to take effect at the end of 2026, after EU lawmakers voted earlier this month to postpone its implementation for the second year in a row, citing technical concerns.
Its goal is to ensure that forest-linked products imported into the EU are deforestation-free by introducing mechanisms that enable companies trading seven commodities — cattle, cocoa, coffee, palm oil, rubber, soy and timber — to track their products’ origins throughout the entire supply chain.
While experts say increased oversight is a vital step to reduce the footprint of EU consumption on forests, others have warned that without appropriate support and governance mechanisms, the new rules could introduce inequities that harm small-scale producers.
Many smallholders lack the capacity and capital to comply with some aspects of the new regulations, for instance. This could see them sidelined in favor of bigger producers who can more easily adapt, according to Martin Greijmans, community enterprise program lead at RECOFTC, a Thailand-based community forest nonprofit.
Further complicating matters are limited resources to inform smallholders about how the regulations will affect their businesses, underscoring the need for greater efforts by governments and private companies to help smallholders adapt, he says.
“One shocking thing that I still come across is that many smallholders and small-scale companies still lack understanding of the EUDR’s mandatory nature,” Greijmans tells Mongabay. “They often mistake it for a voluntary certification.” Mongabay
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December 29, 2025
Carbon credits: A strategic growth opportunity for Malaysia’s palm oil industry
The Malaysian palm oil industry has a unique opportunity to decarbonise and turn these actions into a revenue stream via the carbon markets. This would enable industry players to contribute to global climate mitigation, while providing a much-needed boost for the emerging technologies and solutions to be implemented.
Carbon markets facilitate the trading of carbon credits. Each carbon credit represents one tonne of carbon dioxide or its equivalent in greenhouse gas (GHG) removed, reduced or avoided. Entities seeking to offset their emissions do so by purchasing these credits.
The role of carbon markets in the global transition towards net zero emissions is increasingly important, and various efforts are ongoing in the global and national levels to establish robust governance and trading mechanisms.
Negotiations under Article 6 of the Paris Agreement at the United Nations Conference of Parties to allow country-to-country transfer of carbon credits, for instance, are advancing. In the past year, Malaysia signed memorandums of understanding with South Korea and Singapore to explore such collaborations.
Additionally, the International Civil Aviation Organization (ICAO) has developed the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), mandating airlines to reduce or offset emissions with high-quality carbon credits.
Domestically, Bursa Malaysia Bhd established the Bursa Carbon Exchange in 2022, which is the world’s first shariah-compliant carbon exchange. Regionally, the Asean Common Carbon Framework was launched last year, comprising major industry players and associations that are potential buyers and generators of carbon credits, to explore a unified carbon market for Southeast Asia.
Many available decarbonisation solutions
There are multiple ways for the Malaysian palm oil industry to benefit from these developments.
It is the biggest plantation industry in Malaysia, contributing 3% to the nation’s gross domestic product. According to the Malaysian Palm Oil Council’s (MPOC)’s previously released Towards Net-Zero Emissions Report (2024), jointly produced with Swinburne University of Technology Sarawak Campus, the biggest source of emissions comes from palm oil mill effluent (POME) degradation, followed by biomass degradation and energy consumption at the mill.
Various decarbonisation solutions are already adopted, including mulching of oil palm fronds, using palm mesocarp fibre and palm kernel shells (PKS) in combined heat and power systems, POME anaerobic digestion to generate biogas and energy, and direct co-firing of PKS in coal power plants.
Yet many decarbonisation solutions remain within reach, and some of these could be utilised to generate carbon credits, allowing plantation owners to earn extra revenue.
Initial findings from a soon-to-be-completed joint study by MPOC, Swinburne University, and Sunway University on voluntary carbon markets (VCMs) finds that several technology-based solution decarbonisation pathways, particularly direct biomass combustion in combined heat and power systems, biomass briquetting and pelletisation, are some of the most cost-effective carbon abatement potentials.
Another example is biochar, generated from pyrolysis of empty fruit bunches, which permanently stores carbon. It can be used by farmers to improve soil quality — thus avoiding as much use of chemical fertilisers — and removes carbon by storing it in the ground. Although the production cost is high (estimated at between US$52 and US$113/t CO-eq), biochar production fetches a premium price on the carbon market.
Demand for biochar carbon credits in VCMs globally has been increasing in recent years, driven by interest from big technology companies such as Google and Microsoft.
Earlier this year, Google signed its largest-ever biochar carbon removal agreement with India’s Varaha and the US’ Charm Industrial, to purchase a total of 200,000 tonnes of carbon credits by 2030.
These solutions can accelerate the industry’s push towards net zero emissions, and the revenues generated from the sales of carbon credits could support the development of emerging technologies.
Of course, to generate high-quality carbon credits accepted by global markets, project operators must abide by the standards of major carbon credit verification companies, such as Verra and Gold Standard, and the requirements of CORSIA, if they choose to tap that market.
The Core Carbon Principles by the Integrity Council for the Voluntary Carbon Market, which is a multi-stakeholder led governance body, could be referred to as a benchmark for high-quality carbon credits.
Leveraging demand for carbon credits
According to the United Nations (UN) Environment Programme’s Emissions Gap Report 2025, even if all the climate targets (in the form of nationally determined contributions submitted to the UN) are fully implemented, global average temperatures are still expected to rise by 2.5°C over this century.
Reductions of annual emissions of 35% and 55%, compared with 2019 levels, are needed by 2035 to align with the Paris Agreement goal to limit warming to below 2°C and 1.5°C.
Clearly, more action is needed to decarbonise and more support has to be given to emerging technologies and solutions. The report, in fact, highlights the significant upfront investments required for the technologies as a hurdle.
Carbon markets could provide financial support to bridge this gap, while also helping companies, especially those in hard-to-abate sectors, achieve their net zero targets.
According to Accenture’s Destination Net Zero 2025 report in November 2025, a steadily increasing number of companies are setting net zero targets, encompassing Scope 1, 2 and 3 emissions.
To help the palm oil industry to quantify and reduce emissions, the Malaysian Sustainable Palm Oil scheme has introduced a GHG calculator.
To accelerate progress in this area, MPOC’s VCM joint study, now in its final stages, also recommends the prioritisation of early mover pilot projects in POME biogas, biochar and briquetting, supported by stronger monitoring, reporting, and verification capacity and clearer guidance on additionality and regulatory surplus.
As 2050 — the net zero emissions deadline set by many countries, including Malaysia, and companies — draws near, the demand for carbon credits could increase. These are developments that could drive the demand for carbon credits going forward. The Malaysian palm oil industry is in a good position to leverage this demand and contribute to global decarbonisation efforts in a sustainable manner. MPOC/ The Edge
--------
Malaysia to rely on technology for palm oil industry growth
KUALA LUMPUR: With no room left for land expansion, productivity in Malaysia's palm oil industry must now come from technology, automation and artificial intelligence (AI), Malaysian Palm Oil Board (MPOB) said.
Director-general Datuk Dr Ahmad Parveez Ghulam Kadir said the sector can no longer rely on "business-as-usual" practices, as stricter sustainability requirements have effectively closed off any further expansion of planted areas.
This comes amid decades of structural constraints, including stagnant yields, ageing trees and chronic labour shortages, leaving the industry with little choice but to accelerate technology adoption to sustain long-term growth.
"With Malaysian Sustainable Palm Oil 2.0 and the European Union Deforestation Regulation, there is no room to open new land," he said.
"Productivity must now come from technology, mechanisation and better planting material," Parveez said in a group interview during the International Palm Oil Congress and Exhibition (PIPOC) 2025.
Malaysia's oil palm yields have remained largely flat for nearly two decades, compounded by slow replanting and a rising proportion of ageing trees.
Although crude palm oil (CPO) output may reach 19.5 million tonnes this year, Parveez said sustaining long-term growth will require fundamental change.
"Our trees are now in their fourth generation after more than 100 years of planting. Yield has stagnated, and replanting has been slow," he said.
"With no new land available, increasing productivity is the only way forward."
Higher palm oil prices in recent years have prompted plantation companies to invest more heavily in automation, particularly during the pandemic when labour shortages became acute.
As companies realised they either had to innovate or face escalating losses, many began adopting AI, drones, satellite imaging and mechanisation to manage estates more efficiently, Parveez said.
Examples include the use of satellite data by Kuala Lumpur Kepong Bhd to plan replanting, assess terrain and soil conditions, and determine suitable planting materials and fertiliser regimes.
Firms are also using drones and imaging technology to detect pests such as bagworms, mealybugs and rhinoceros beetles before they spread.
MPOB itself established the Mechanisation and Automation Research Consortium of Oil Palm in 2021 to accelerate industry-wide adoption of such technologies.
Parveez said these tools will be essential as global demand for vegetable oils continues to grow, while major producers such as Indonesia increasingly divert palm oil to non-food uses, including biodiesel mandates moving toward B50.
"If Indonesia channels more oil into non-food applications, we must be ready to fill the remaining market. But with no land expansion possible, we must optimise what we have," he said.
"This means better genetics, replanting with the right materials, and using technology to ensure every hectare is maximised."
COUNTERING NEGATIVE NARRATIVES
Malaysia's push for higher productivity also comes amid persistent negative narratives against palm oil in Western markets, particularly on deforestation and biodiversity loss.
MPOB chairman Datuk Mohamad Helmy Othman Basha said Malaysia is not suited to emulate Indonesia's approach of absorbing more palm oil into domestic consumption, as the two countries have fundamentally different market structures.
He said Indonesia's large population allows it to divert significant volumes of palm oil into biodiesel without jeopardising its export capacity, reducing almost four million tonnes from the global market when it increased its domestic blending mandates.
"Malaysia's position is different. We rely heavily on exports because our population is much smaller," he said.
Helmy also rejected claims that Malaysia's palm oil expansion has driven large-scale deforestation, saying that the crop occupies only 8.5 per cent of global oilseed farmland.
This represents about 28 million hectares, compared with 288 million hectares planted with soybean, rapeseed, sunflower and other oil crops.
Despite using a fraction of the land, palm oil accounts for 37 per cent of global vegetable oil supply.
Helmy said claims around wildlife loss also overlook the fact that palm plantations occupy just 0.6 per cent of the world's 4.8 billion hectares of land.
"Palm oil remains the most efficient and productive vegetable oil, rich in tocotrienols and vitamin E, and continues to replace petrochemical-derived ingredients in industries such as cosmetics," he added. NST
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Cardiologists Call for Science-Led Reassessment of Saturated Fats and Palm Oil at IMA NATCON 2025
At the 100th National Conference of the Indian Medical Association (IMA NATCON 2025), cardiologists called for a more evidence-based understanding of dietary fats and cardiovascular health, emphasising that long-standing assumptions must be reviewed in light of evolving scientific evidence. The centenary edition of IMA NATCON brought together thousands of doctors, researchers, and healthcare leaders from across India, reinforcing its role as a key platform for shaping clinical and public-health perspectives.
Two expert-led sessions by Dr Varun Bansal and Dr Ketan Mehta provided clinical clarity on topics often clouded by misinformation, examining the role of dietary fats, palm oil and emerging cardiometabolic interventions through the lens of clinical evidence and global research.
In his presentation, “Atherosclerosis, Dietary Saturated Fats and Palm Oil: Are They Really Connected?”, Dr Bansal challenged long-held assumptions linking saturated fats directly to heart disease. Drawing from multi-country studies, he highlighted that saturated fats are not nutritionally uniform and that cardiovascular risk is influenced by overall dietary patterns, lifestyle and total caloric intake. He noted that while certain fat substitutions may lower cholesterol, they do not consistently reduce cardiovascular mortality, and that comparisons with trans fats show favourable outcomes for palm oil. His session aligned with WHO and ICMR–NIN guidelines that emphasise moderation, diversity of oils and balanced intake.
“Nutrition science cannot be reduced to simplistic labels. What matters is balance, variety and informed choices, not fear-driven avoidance,” said Dr Varun Bansal.
Complementing this, Dr Mehta presented on “Palm Tocotrienols in Cardiometabolic Syndrome”, focusing on the rising burden of diabetes, obesity, hypertension and dyslipidaemia in India. He highlighted tocotrienols, a form of Vitamin E present in red palm oil, citing evidence of their antioxidant, anti-inflammatory and cardioprotective potential. Dr Mehta also pointed to the strong safety profile of palm-derived tocotrienols, which hold GRAS status from the US FDA, and stressed their role as a supportive, science-backed intervention alongside lifestyle and clinical care.
“Cardiometabolic syndrome is complex and multifactorial. The focus must be on integrating well-researched nutritional components into patient-centric care,” Dr Ketan Mehta noted.
The sessions generated strong engagement from attending medical professionals, with active discussion and questioning reflecting interest in reassessing long-held dietary assumptions through current scientific evidence. The discussions reinforced the importance of ongoing, science-led dialogue within the medical community to support balanced, evidence-based dietary guidance for cardiovascular and metabolic health. The Live Nagpur
--------
Ultra-processed foods under fire as experts called for global action!
A major new three-paper series published in The Lancet warned that the rapid rise of ultra-processed foods (UPFs) in diets around the world had become an urgent public health issue and required coordinated government action.
Authored by 43 global experts, the series reported that UPFs – such as packaged snacks, sugary drinks and many ready-to-eat products – were increasingly replacing fresh and minimally processed foods. Powerful food corporations, using aggressive marketing and political lobbying to boost sales and block effective regulation, drove this shift, according to the authors.
The first paper reviewed more than a decade of research and found strong links between high UPF consumption and poorer diet quality, overeating and higher risks of conditions including obesity, type 2 diabetes, heart disease, depression and early death. National surveys showed UPF intake had risen sharply in countries such as Spain, China, Brazil and Mexico, while remaining at very high levels in the UK and USA.
The second paper set out policy options to curb UPFs, including clearer front-of-pack labelling, tighter restrictions on advertising – especially to children – bans in schools and hospitals, and taxes on selected products to help fund access to healthier foods. Successful examples, such as Brazil's school meals programme prioritising fresh food, were highlighted.
The final paper argued that corporations, not individual choices, were driving unhealthy diets. It compared the situation to tobacco control and called for global action to protect health policy from industry influence and to build fairer, healthier food systems that benefited communities rather than shareholders. The Daily Star
Carbon credits: A strategic growth opportunity for Malaysia’s palm oil industry
The Malaysian palm oil industry has a unique opportunity to decarbonise and turn these actions into a revenue stream via the carbon markets. This would enable industry players to contribute to global climate mitigation, while providing a much-needed boost for the emerging technologies and solutions to be implemented.
Carbon markets facilitate the trading of carbon credits. Each carbon credit represents one tonne of carbon dioxide or its equivalent in greenhouse gas (GHG) removed, reduced or avoided. Entities seeking to offset their emissions do so by purchasing these credits.
The role of carbon markets in the global transition towards net zero emissions is increasingly important, and various efforts are ongoing in the global and national levels to establish robust governance and trading mechanisms.
Negotiations under Article 6 of the Paris Agreement at the United Nations Conference of Parties to allow country-to-country transfer of carbon credits, for instance, are advancing. In the past year, Malaysia signed memorandums of understanding with South Korea and Singapore to explore such collaborations.
Additionally, the International Civil Aviation Organization (ICAO) has developed the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), mandating airlines to reduce or offset emissions with high-quality carbon credits.
Domestically, Bursa Malaysia Bhd established the Bursa Carbon Exchange in 2022, which is the world’s first shariah-compliant carbon exchange. Regionally, the Asean Common Carbon Framework was launched last year, comprising major industry players and associations that are potential buyers and generators of carbon credits, to explore a unified carbon market for Southeast Asia.
Many available decarbonisation solutions
There are multiple ways for the Malaysian palm oil industry to benefit from these developments.
It is the biggest plantation industry in Malaysia, contributing 3% to the nation’s gross domestic product. According to the Malaysian Palm Oil Council’s (MPOC)’s previously released Towards Net-Zero Emissions Report (2024), jointly produced with Swinburne University of Technology Sarawak Campus, the biggest source of emissions comes from palm oil mill effluent (POME) degradation, followed by biomass degradation and energy consumption at the mill.
Various decarbonisation solutions are already adopted, including mulching of oil palm fronds, using palm mesocarp fibre and palm kernel shells (PKS) in combined heat and power systems, POME anaerobic digestion to generate biogas and energy, and direct co-firing of PKS in coal power plants.
Yet many decarbonisation solutions remain within reach, and some of these could be utilised to generate carbon credits, allowing plantation owners to earn extra revenue.
Initial findings from a soon-to-be-completed joint study by MPOC, Swinburne University, and Sunway University on voluntary carbon markets (VCMs) finds that several technology-based solution decarbonisation pathways, particularly direct biomass combustion in combined heat and power systems, biomass briquetting and pelletisation, are some of the most cost-effective carbon abatement potentials.
Another example is biochar, generated from pyrolysis of empty fruit bunches, which permanently stores carbon. It can be used by farmers to improve soil quality — thus avoiding as much use of chemical fertilisers — and removes carbon by storing it in the ground. Although the production cost is high (estimated at between US$52 and US$113/t CO-eq), biochar production fetches a premium price on the carbon market.
Demand for biochar carbon credits in VCMs globally has been increasing in recent years, driven by interest from big technology companies such as Google and Microsoft.
Earlier this year, Google signed its largest-ever biochar carbon removal agreement with India’s Varaha and the US’ Charm Industrial, to purchase a total of 200,000 tonnes of carbon credits by 2030.
These solutions can accelerate the industry’s push towards net zero emissions, and the revenues generated from the sales of carbon credits could support the development of emerging technologies.
Of course, to generate high-quality carbon credits accepted by global markets, project operators must abide by the standards of major carbon credit verification companies, such as Verra and Gold Standard, and the requirements of CORSIA, if they choose to tap that market.
The Core Carbon Principles by the Integrity Council for the Voluntary Carbon Market, which is a multi-stakeholder led governance body, could be referred to as a benchmark for high-quality carbon credits.
Leveraging demand for carbon credits
According to the United Nations (UN) Environment Programme’s Emissions Gap Report 2025, even if all the climate targets (in the form of nationally determined contributions submitted to the UN) are fully implemented, global average temperatures are still expected to rise by 2.5°C over this century.
Reductions of annual emissions of 35% and 55%, compared with 2019 levels, are needed by 2035 to align with the Paris Agreement goal to limit warming to below 2°C and 1.5°C.
Clearly, more action is needed to decarbonise and more support has to be given to emerging technologies and solutions. The report, in fact, highlights the significant upfront investments required for the technologies as a hurdle.
Carbon markets could provide financial support to bridge this gap, while also helping companies, especially those in hard-to-abate sectors, achieve their net zero targets.
According to Accenture’s Destination Net Zero 2025 report in November 2025, a steadily increasing number of companies are setting net zero targets, encompassing Scope 1, 2 and 3 emissions.
To help the palm oil industry to quantify and reduce emissions, the Malaysian Sustainable Palm Oil scheme has introduced a GHG calculator.
To accelerate progress in this area, MPOC’s VCM joint study, now in its final stages, also recommends the prioritisation of early mover pilot projects in POME biogas, biochar and briquetting, supported by stronger monitoring, reporting, and verification capacity and clearer guidance on additionality and regulatory surplus.
As 2050 — the net zero emissions deadline set by many countries, including Malaysia, and companies — draws near, the demand for carbon credits could increase. These are developments that could drive the demand for carbon credits going forward. The Malaysian palm oil industry is in a good position to leverage this demand and contribute to global decarbonisation efforts in a sustainable manner. MPOC/ The Edge
--------
Malaysia to rely on technology for palm oil industry growth
KUALA LUMPUR: With no room left for land expansion, productivity in Malaysia's palm oil industry must now come from technology, automation and artificial intelligence (AI), Malaysian Palm Oil Board (MPOB) said.
Director-general Datuk Dr Ahmad Parveez Ghulam Kadir said the sector can no longer rely on "business-as-usual" practices, as stricter sustainability requirements have effectively closed off any further expansion of planted areas.
This comes amid decades of structural constraints, including stagnant yields, ageing trees and chronic labour shortages, leaving the industry with little choice but to accelerate technology adoption to sustain long-term growth.
"With Malaysian Sustainable Palm Oil 2.0 and the European Union Deforestation Regulation, there is no room to open new land," he said.
"Productivity must now come from technology, mechanisation and better planting material," Parveez said in a group interview during the International Palm Oil Congress and Exhibition (PIPOC) 2025.
Malaysia's oil palm yields have remained largely flat for nearly two decades, compounded by slow replanting and a rising proportion of ageing trees.
Although crude palm oil (CPO) output may reach 19.5 million tonnes this year, Parveez said sustaining long-term growth will require fundamental change.
"Our trees are now in their fourth generation after more than 100 years of planting. Yield has stagnated, and replanting has been slow," he said.
"With no new land available, increasing productivity is the only way forward."
Higher palm oil prices in recent years have prompted plantation companies to invest more heavily in automation, particularly during the pandemic when labour shortages became acute.
As companies realised they either had to innovate or face escalating losses, many began adopting AI, drones, satellite imaging and mechanisation to manage estates more efficiently, Parveez said.
Examples include the use of satellite data by Kuala Lumpur Kepong Bhd to plan replanting, assess terrain and soil conditions, and determine suitable planting materials and fertiliser regimes.
Firms are also using drones and imaging technology to detect pests such as bagworms, mealybugs and rhinoceros beetles before they spread.
MPOB itself established the Mechanisation and Automation Research Consortium of Oil Palm in 2021 to accelerate industry-wide adoption of such technologies.
Parveez said these tools will be essential as global demand for vegetable oils continues to grow, while major producers such as Indonesia increasingly divert palm oil to non-food uses, including biodiesel mandates moving toward B50.
"If Indonesia channels more oil into non-food applications, we must be ready to fill the remaining market. But with no land expansion possible, we must optimise what we have," he said.
"This means better genetics, replanting with the right materials, and using technology to ensure every hectare is maximised."
COUNTERING NEGATIVE NARRATIVES
Malaysia's push for higher productivity also comes amid persistent negative narratives against palm oil in Western markets, particularly on deforestation and biodiversity loss.
MPOB chairman Datuk Mohamad Helmy Othman Basha said Malaysia is not suited to emulate Indonesia's approach of absorbing more palm oil into domestic consumption, as the two countries have fundamentally different market structures.
He said Indonesia's large population allows it to divert significant volumes of palm oil into biodiesel without jeopardising its export capacity, reducing almost four million tonnes from the global market when it increased its domestic blending mandates.
"Malaysia's position is different. We rely heavily on exports because our population is much smaller," he said.
Helmy also rejected claims that Malaysia's palm oil expansion has driven large-scale deforestation, saying that the crop occupies only 8.5 per cent of global oilseed farmland.
This represents about 28 million hectares, compared with 288 million hectares planted with soybean, rapeseed, sunflower and other oil crops.
Despite using a fraction of the land, palm oil accounts for 37 per cent of global vegetable oil supply.
Helmy said claims around wildlife loss also overlook the fact that palm plantations occupy just 0.6 per cent of the world's 4.8 billion hectares of land.
"Palm oil remains the most efficient and productive vegetable oil, rich in tocotrienols and vitamin E, and continues to replace petrochemical-derived ingredients in industries such as cosmetics," he added. NST
--------
Cardiologists Call for Science-Led Reassessment of Saturated Fats and Palm Oil at IMA NATCON 2025
At the 100th National Conference of the Indian Medical Association (IMA NATCON 2025), cardiologists called for a more evidence-based understanding of dietary fats and cardiovascular health, emphasising that long-standing assumptions must be reviewed in light of evolving scientific evidence. The centenary edition of IMA NATCON brought together thousands of doctors, researchers, and healthcare leaders from across India, reinforcing its role as a key platform for shaping clinical and public-health perspectives.
Two expert-led sessions by Dr Varun Bansal and Dr Ketan Mehta provided clinical clarity on topics often clouded by misinformation, examining the role of dietary fats, palm oil and emerging cardiometabolic interventions through the lens of clinical evidence and global research.
In his presentation, “Atherosclerosis, Dietary Saturated Fats and Palm Oil: Are They Really Connected?”, Dr Bansal challenged long-held assumptions linking saturated fats directly to heart disease. Drawing from multi-country studies, he highlighted that saturated fats are not nutritionally uniform and that cardiovascular risk is influenced by overall dietary patterns, lifestyle and total caloric intake. He noted that while certain fat substitutions may lower cholesterol, they do not consistently reduce cardiovascular mortality, and that comparisons with trans fats show favourable outcomes for palm oil. His session aligned with WHO and ICMR–NIN guidelines that emphasise moderation, diversity of oils and balanced intake.
“Nutrition science cannot be reduced to simplistic labels. What matters is balance, variety and informed choices, not fear-driven avoidance,” said Dr Varun Bansal.
Complementing this, Dr Mehta presented on “Palm Tocotrienols in Cardiometabolic Syndrome”, focusing on the rising burden of diabetes, obesity, hypertension and dyslipidaemia in India. He highlighted tocotrienols, a form of Vitamin E present in red palm oil, citing evidence of their antioxidant, anti-inflammatory and cardioprotective potential. Dr Mehta also pointed to the strong safety profile of palm-derived tocotrienols, which hold GRAS status from the US FDA, and stressed their role as a supportive, science-backed intervention alongside lifestyle and clinical care.
“Cardiometabolic syndrome is complex and multifactorial. The focus must be on integrating well-researched nutritional components into patient-centric care,” Dr Ketan Mehta noted.
The sessions generated strong engagement from attending medical professionals, with active discussion and questioning reflecting interest in reassessing long-held dietary assumptions through current scientific evidence. The discussions reinforced the importance of ongoing, science-led dialogue within the medical community to support balanced, evidence-based dietary guidance for cardiovascular and metabolic health. The Live Nagpur
--------
Ultra-processed foods under fire as experts called for global action!
A major new three-paper series published in The Lancet warned that the rapid rise of ultra-processed foods (UPFs) in diets around the world had become an urgent public health issue and required coordinated government action.
Authored by 43 global experts, the series reported that UPFs – such as packaged snacks, sugary drinks and many ready-to-eat products – were increasingly replacing fresh and minimally processed foods. Powerful food corporations, using aggressive marketing and political lobbying to boost sales and block effective regulation, drove this shift, according to the authors.
The first paper reviewed more than a decade of research and found strong links between high UPF consumption and poorer diet quality, overeating and higher risks of conditions including obesity, type 2 diabetes, heart disease, depression and early death. National surveys showed UPF intake had risen sharply in countries such as Spain, China, Brazil and Mexico, while remaining at very high levels in the UK and USA.
The second paper set out policy options to curb UPFs, including clearer front-of-pack labelling, tighter restrictions on advertising – especially to children – bans in schools and hospitals, and taxes on selected products to help fund access to healthier foods. Successful examples, such as Brazil's school meals programme prioritising fresh food, were highlighted.
The final paper argued that corporations, not individual choices, were driving unhealthy diets. It compared the situation to tobacco control and called for global action to protect health policy from industry influence and to build fairer, healthier food systems that benefited communities rather than shareholders. The Daily Star
December 27, 2025
Indonesian Palm Oil to Get ‘Close to Zero’ Tariffs on Eurasian Trade Pact
Jakarta. The freshly signed Eurasian trade pact is set to lower the region’s tariffs on Indonesian palm oil “close to zero”, according to a minister.
Indonesia recently signed a free trade agreement with the Eurasian Economic Union (EAEU). This bloc brings together Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan. The Jakarta Globe asked Trade Minister Budi Santoso about how big the tariff cut on Indonesian palm oil would be under this deal, given that the agrifood commodity is a major export to the group’s richest economy, Russia.
“The EAEU pact will bring down the tariffs on nearly all products to close to 0%. This also applies to our palm oil,” Budi told a press briefing in Jakarta on Friday.
Budi did not disclose the exact import duty rate on Indonesian palm oil. The minister went on to say that the deal would present ample opportunities for Indonesian apparel and footwear. Jakarta is hoping that the agreement can double its trade with the EAEU, which totaled approximately $4.5 billion in 2024.
“This could also be our gateway to the neighboring countries,” Budi said, naming Ukraine and Uzbekistan as examples.
Budi was in St. Petersburg to ink the EAEU trade accord last week.
Jakarta’s side had previously stated that they wanted to see the accord enter into force in Q4 2026 or by 2027. The document still has to gain lawmakers' approval before that can happen.
The EAEU has committed to granting preferential rates for 90.5% of the tariff lines. This is equivalent to 95.1% of the group’s Indonesian imports. Indonesia is willing to give preferential rates for 90% of the tariff lines for goods coming from the 5-strong bloc. The Russian government reported that Jakarta’s average tariff rates on EAEU goods would drop from 10.2% to 2%. Jakarta Globe
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Southeast Asia, Especially Indonesia, is a Major Contributor to Greenhouse Gases
Deforestation and the use of fossil fuels in Southeast Asia, particularly Indonesia, are the world's main sources of greenhouse gases.
JAKARTA, KOMPAS - A new regional assessment indicates that Southeast Asia, particularly Indonesia, has become a major source of greenhouse gases in the world. The high emissions are primarily contributed by land use changes and an increase in fossil fuel consumption that exceeds the capacity of natural carbon storage, which refers to reservoirs that store carbon-containing chemical compounds over long periods.
A comprehensive assessment of greenhouse gas balance in Southeast Asia was conducted by an international research team led by researchers from Hiroshima University. This assessment indicates that the Southeast Asian region is a significant source of gases that contribute to climate warming.
The main causes of climate warming are deforestation, peatland degradation, fires, and the rapid increase in fossil fuel use. The study, published in the journal Global Biogeochemical Cycles on Tuesday (December 23, 2025), highlights the challenges facing countries in the region in achieving climate neutrality. It emphasizes the need for countries to work together as soon as possible.
Kompas
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SD Guthrie to develop living wage policy for Malaysian operations in 1Q2026
KUALA LUMPUR (Dec 26): SD Guthrie Bhd (KL:SDG) has committed to developing a living wage policy for its Malaysian operations, with the framework expected to be finalised in the first quarter of 2026.
In a statement on Friday, the group said the policy will be implemented in phases, beginning with about 8,000 non-plantation employees. The first phase is targeted for completion by December 2026 and will be aligned with the Employees Provident Fund’s Belanjawanku Expenditure Guide.
The initiative aims to ensure more equitable pay while supporting broader socio-economic objectives in Malaysia. The move is part of major shareholder Permodalan Nasional Bhd and other government-linked investment companies’ plan to adopt living wage policies under the government’s Government-linked Enterprises Activation and Reform Programme (GEAR-uP) led by the Finance Ministry.
SD Guthrie said the policy will take into account its existing labour-related commitments and international standards it has signed up to, including compliance with Malaysian labour laws such as the Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990 (Act 446), as amended in 2019.
It will also consider regional cost-of-living differences and the value of existing employee benefits.
The group said it also adheres to standards set by the Roundtable on Sustainable Palm Oil and the International Labour Organization.
SD Guthrie’s Malaysian operations span 11 states, covering 121 estates, 31 mills, and downstream as well as renewable energy facilities. The group employs more than 35,000 workers from several countries.
The group's shares rose 1.25% to RM5.69 at market close on Friday, giving it a market value of RM39.35 billion. The stock is up 14.95% this year. The Edge
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Industry Ministry Formalizes Public Complaints and NGO Oversight in Downstream ISPO
PALMOILMAGAZINE, JAKARTA — The Ministry of Industry (Kemenperin) has opened broad participation for civil society and non-governmental organizations (NGOs) to strengthen downstream Indonesian Sustainable Palm Oil (ISPO) implementation. Through Minister of Industry Regulation (Permenperin) No. 38 of 2025 on Indonesian Sustainable Palm Oil Certification for the Downstream Palm Oil Industry, the government formally establishes complaint mechanisms, special audits, and a national information system to safeguard sustainability in the palm oil sector.
The policy was outlined by RR Citra Rapati from the Directorate of Chemical, Oleochemical, and Animal Feed Industries under the Ministry of Industry’s Directorate General of Agro-Industry, during a presentation on the role of NGOs and the public in downstream ISPO implementation.
According to RR Citra, Permenperin 38/2025 explicitly regulates access to a complaint mechanism that can be initiated not only by business actors, but also by the government and the public. Members of the public may appoint representatives, including NGOs, to formally submit complaints.
“Complaints may be submitted by the government, business actors, or the public, provided they are accompanied by a written document signed by the complainant or their authorized representative, along with supporting evidence,” she explained during the ISPO Update Focus Group Discussion attended by Palmoilmagazine.com, Monday (22/12/2025).
She noted that the complaint mechanism differs from an appeal process. Appeals are submitted by companies to certification bodies, while complaints may be filed by the public against certification bodies conducting ISPO processes.
The regulation also stipulates a clear timeline for complaint resolution. In line with existing provisions, complaints must be resolved within a maximum of 30 working days from the date they are officially received.
Beyond complaints, Kemenperin has introduced a special audit mechanism as an additional layer of oversight. Such audits may be conducted outside routine audit schedules upon request from the Minister of Industry, the Director General, or in response to public complaints. Palm oil magazine
Indonesian Palm Oil to Get ‘Close to Zero’ Tariffs on Eurasian Trade Pact
Jakarta. The freshly signed Eurasian trade pact is set to lower the region’s tariffs on Indonesian palm oil “close to zero”, according to a minister.
Indonesia recently signed a free trade agreement with the Eurasian Economic Union (EAEU). This bloc brings together Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan. The Jakarta Globe asked Trade Minister Budi Santoso about how big the tariff cut on Indonesian palm oil would be under this deal, given that the agrifood commodity is a major export to the group’s richest economy, Russia.
“The EAEU pact will bring down the tariffs on nearly all products to close to 0%. This also applies to our palm oil,” Budi told a press briefing in Jakarta on Friday.
Budi did not disclose the exact import duty rate on Indonesian palm oil. The minister went on to say that the deal would present ample opportunities for Indonesian apparel and footwear. Jakarta is hoping that the agreement can double its trade with the EAEU, which totaled approximately $4.5 billion in 2024.
“This could also be our gateway to the neighboring countries,” Budi said, naming Ukraine and Uzbekistan as examples.
Budi was in St. Petersburg to ink the EAEU trade accord last week.
Jakarta’s side had previously stated that they wanted to see the accord enter into force in Q4 2026 or by 2027. The document still has to gain lawmakers' approval before that can happen.
The EAEU has committed to granting preferential rates for 90.5% of the tariff lines. This is equivalent to 95.1% of the group’s Indonesian imports. Indonesia is willing to give preferential rates for 90% of the tariff lines for goods coming from the 5-strong bloc. The Russian government reported that Jakarta’s average tariff rates on EAEU goods would drop from 10.2% to 2%. Jakarta Globe
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Southeast Asia, Especially Indonesia, is a Major Contributor to Greenhouse Gases
Deforestation and the use of fossil fuels in Southeast Asia, particularly Indonesia, are the world's main sources of greenhouse gases.
JAKARTA, KOMPAS - A new regional assessment indicates that Southeast Asia, particularly Indonesia, has become a major source of greenhouse gases in the world. The high emissions are primarily contributed by land use changes and an increase in fossil fuel consumption that exceeds the capacity of natural carbon storage, which refers to reservoirs that store carbon-containing chemical compounds over long periods.
A comprehensive assessment of greenhouse gas balance in Southeast Asia was conducted by an international research team led by researchers from Hiroshima University. This assessment indicates that the Southeast Asian region is a significant source of gases that contribute to climate warming.
The main causes of climate warming are deforestation, peatland degradation, fires, and the rapid increase in fossil fuel use. The study, published in the journal Global Biogeochemical Cycles on Tuesday (December 23, 2025), highlights the challenges facing countries in the region in achieving climate neutrality. It emphasizes the need for countries to work together as soon as possible.
Kompas
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SD Guthrie to develop living wage policy for Malaysian operations in 1Q2026
KUALA LUMPUR (Dec 26): SD Guthrie Bhd (KL:SDG) has committed to developing a living wage policy for its Malaysian operations, with the framework expected to be finalised in the first quarter of 2026.
In a statement on Friday, the group said the policy will be implemented in phases, beginning with about 8,000 non-plantation employees. The first phase is targeted for completion by December 2026 and will be aligned with the Employees Provident Fund’s Belanjawanku Expenditure Guide.
The initiative aims to ensure more equitable pay while supporting broader socio-economic objectives in Malaysia. The move is part of major shareholder Permodalan Nasional Bhd and other government-linked investment companies’ plan to adopt living wage policies under the government’s Government-linked Enterprises Activation and Reform Programme (GEAR-uP) led by the Finance Ministry.
SD Guthrie said the policy will take into account its existing labour-related commitments and international standards it has signed up to, including compliance with Malaysian labour laws such as the Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990 (Act 446), as amended in 2019.
It will also consider regional cost-of-living differences and the value of existing employee benefits.
The group said it also adheres to standards set by the Roundtable on Sustainable Palm Oil and the International Labour Organization.
SD Guthrie’s Malaysian operations span 11 states, covering 121 estates, 31 mills, and downstream as well as renewable energy facilities. The group employs more than 35,000 workers from several countries.
The group's shares rose 1.25% to RM5.69 at market close on Friday, giving it a market value of RM39.35 billion. The stock is up 14.95% this year. The Edge
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Industry Ministry Formalizes Public Complaints and NGO Oversight in Downstream ISPO
PALMOILMAGAZINE, JAKARTA — The Ministry of Industry (Kemenperin) has opened broad participation for civil society and non-governmental organizations (NGOs) to strengthen downstream Indonesian Sustainable Palm Oil (ISPO) implementation. Through Minister of Industry Regulation (Permenperin) No. 38 of 2025 on Indonesian Sustainable Palm Oil Certification for the Downstream Palm Oil Industry, the government formally establishes complaint mechanisms, special audits, and a national information system to safeguard sustainability in the palm oil sector.
The policy was outlined by RR Citra Rapati from the Directorate of Chemical, Oleochemical, and Animal Feed Industries under the Ministry of Industry’s Directorate General of Agro-Industry, during a presentation on the role of NGOs and the public in downstream ISPO implementation.
According to RR Citra, Permenperin 38/2025 explicitly regulates access to a complaint mechanism that can be initiated not only by business actors, but also by the government and the public. Members of the public may appoint representatives, including NGOs, to formally submit complaints.
“Complaints may be submitted by the government, business actors, or the public, provided they are accompanied by a written document signed by the complainant or their authorized representative, along with supporting evidence,” she explained during the ISPO Update Focus Group Discussion attended by Palmoilmagazine.com, Monday (22/12/2025).
She noted that the complaint mechanism differs from an appeal process. Appeals are submitted by companies to certification bodies, while complaints may be filed by the public against certification bodies conducting ISPO processes.
The regulation also stipulates a clear timeline for complaint resolution. In line with existing provisions, complaints must be resolved within a maximum of 30 working days from the date they are officially received.
Beyond complaints, Kemenperin has introduced a special audit mechanism as an additional layer of oversight. Such audits may be conducted outside routine audit schedules upon request from the Minister of Industry, the Director General, or in response to public complaints. Palm oil magazine
December 26, 2026
Indonesia Revokes Palm Oil and Timber Permits, Tightens Natural Resource Management
BANDA ACEH — One month after floods and landslides struck West Sumatra, Aceh, and North Sumatra, the government has reaffirmed its commitment to implementing comprehensive reforms in natural resource management to prevent similar disasters in the future.
Coordinating Minister for Human Development and Cultural Affairs Pratikno delivered this message during a press update on Wednesday regarding the flood and landslide response in Aceh, North Sumatra, and West Sumatra, following his direct inspection of affected areas in Banda Aceh.
Pratikno stated that the central government has taken firm steps to reorganize forest and natural resource management on the island of Sumatra. One key measure is the revocation of large-scale business permits deemed to have the potential for environmental damage and to exacerbate disaster impacts.
"The central government, through the Ministry of Forestry, has revoked large-scale land use permits, including millions of hectares of palm oil plantation permits and timber utilization permits," Pratikno said.
According to him, this policy is part of a comprehensive evaluation of unsustainable land-use practices that have damaged ecosystems, especially in disaster-prone areas.
Beyond the forestry sector, the government is also cracking down on mining activities considered risky for environmental sustainability.
Pratikno noted that the Ministry of Environment has sealed the operations of five major mining companies.
"Five mining companies have been sealed off because they were assessed as having the potential to cause environmental damage," he asserted.
These law enforcement actions, Pratikno added, signal that the government will no longer tolerate business practices that neglect environmental concerns and public safety.
These measures align with President Prabowo Subianto's directive that post-disaster efforts should not stop at physical recovery alone.
“We are not only restoring conditions to what they were, but we must ensure they are better in the future,” Pratikno said. Prabowo Subianto
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Palm Oil Wins Under Prabowo–Trump Deal, Manufacturers Seek More Concessions
Jakarta. President Prabowo Subianto and US President Donald Trump are expected to sign a landmark reciprocal trade agreement within the next month, a deal welcomed by Indonesian businesses but seen as falling short of broader tariff relief.
Under the latest round of negotiations, the United States agreed to allow Indonesian palm oil to enter its market tariff-free. The Trump administration had earlier rolled back tariffs on cocoa and coffee through an executive order issued in November.
The Indonesian Employers Association (Apindo) said the palm oil exemption showed Indonesia was on the “right track” by prioritizing sectors with strong comparative advantages and high employment impact. However, it said the private sector hopes the government will press Washington for tariff reductions on manufactured goods.
“Tariff exemptions should gradually expand to other products, especially high-value manufactured goods, so the pact does not only boost commodity exports but also supports industrial upgrading and export diversification,” Apindo chairwoman Shinta Kamdani told the Jakarta Globe.
Coordinating Economic Affairs Minister Airlangga Hartarto, who led Indonesia’s negotiating team, has said there were no major changes from the terms agreed by both governments in July.
The deal is widely seen as a win for the palm oil industry. Indonesia controls about 89% of the US palm oil market, with Malaysia as its main competitor. Malaysian palm oil has entered the US market tariff-free since October, while a 19% tariff on Indonesian palm oil officially took effect on Aug. 7.
The Indonesian Palm Oil Association (Gapki) said the higher tariffs had not significantly affected shipments to the US, as recent exports were likely based on contracts signed before the duty increase.
“If the US truly lowers palm oil tariffs to zero, it will clearly boost our exports, which have risen over the past five years despite a slight decline in 2024,” Gapki chairman Eddy Martono said, noting that palm oil prices outperformed other vegetable oils last year. Jakarta Globe
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Palm oil remains top contributor as Malaysia’s agriculture sector expands 3.1pc in 2024
PUTRAJAYA, Dec 26 — The strong performance of palm oil continues to be the main driver of growth in the country’s agricultural sector, which expanded 3.1 per cent in 2024 compared with 0.2 per cent in the previous year, according to the Selected Agricultural Indicators 2025 report released today by the Department of Statistics Malaysia (DOSM).
Chief statistician Datuk Seri Dr. Mohd Uzir Mahidin stated that palm oil recorded a growth rate of 5.1 per cent in 2024, compared to 0.2 per cent in 2023, thereby contributing significantly to the value-added of the agricultural sector.
“Palm oil remains the largest contributor to the value added of the agricultural sector with a contribution of RM38.1 billion, or 36.8 per cent, followed by other agriculture segments at RM29.7 billion, or 28.7 per cent, while the livestock subsector recorded a contribution of RM17.4 billion, or 16.9 per cent,” he said in a statement here today.
Commenting on agricultural production performance, Mohd Uzir stated that the production of fresh fruit bunches (palm oil) recorded the highest volume among agricultural commodities, at 100,163.5 metric tonnes, representing a 5.5 per cent increase compared to the previous year. “The highest increase in production was recorded by cocoa beans at 33.3 per cent, followed by selected vegetables (11.8 per cent), kenaf (dry stalks) (11.5 per cent), natural rubber (11.1 per cent), pepper (7.5 per cent), and selected fruits (4.5 per cent),” he said.
For the livestock subsector, Mohd Uzir noted that the number of chickens increased by 3.5 per cent to 327.3 million birds in 2024 compared with 316.2 million birds in 2023. Chicken meat production rose by 13.7 per cent, followed by beef and buffalo meat at 9.6 per cent and fresh milk at 5.7 per cent.
He said brackishwater aquaculture production in 2024 declined by 0.4 per cent to 392,400 metric tonnes compared with the previous year, while marine fish landings and freshwater aquaculture production increased by 9.6 per cent and 5.7 per cent, respectively.
From a regional perspective, Mohd Uzir said that the contribution of the agricultural sector to gross domestic product (GDP) among Asean countries ranged from 0.03 to 20.8 per cent. “Myanmar recorded the highest contribution at 20.8 per cent, followed by Laos (16.8 per cent), Cambodia (16.6 per cent), Indonesia (12.6 per cent) and Vietnam (11.9 per cent). Malaysia, with a contribution of 8.2 per cent, ranked eighth out of ten Asean countries,” he said.
Mohd Uzir highlighted that the agricultural sector plays an important role in ensuring that the country’s food supply remains sufficient, while also contributing significantly to national income and export earnings.
“The total exports of agri-food and selected agricultural products increased from RM160.7 billion in 2023 to RM179.2 billion in 2024. At the same time, total imports rose to RM154.4 billion in 2024 compared with RM135.4 billion in 2023, with the country’s food imports amounting to RM93.8 billion in 2024,” he added. -- Bernama/Malaymail
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Palm Oil Extends Rally Driven by Robust Malaysian Shipments
Palm oil continued to rise for a fourth consecutive session because of increased demand for Malaysian goods, reaching its highest level
Quick overview
Intertek Testing Services reports that during the first 25 days of December, exports from Malaysia, the second-largest grower, increased by 1.6% month over month.
India was the largest buyer, a 66 percent increase over the same period last month, with 279,550 tons imported. “As the festival season’s demand catches up, exports are bound to rise now,” stated Gnanasekar Thiagarajan, Kaleesuwari Intercontinental’s head of trading and hedging strategies.
Prices are anticipated to rise in February 2026 due to demand before the Lunar New Year and Ramadan. He did, however, add that a stronger ringgit might limit gains. After strengthening for a third day, the Malaysian ringgit is poised to reach a four-and-a-half-year high, making the tropical commodity less appealing to foreign buyers. FX Leaders
Indonesia Revokes Palm Oil and Timber Permits, Tightens Natural Resource Management
BANDA ACEH — One month after floods and landslides struck West Sumatra, Aceh, and North Sumatra, the government has reaffirmed its commitment to implementing comprehensive reforms in natural resource management to prevent similar disasters in the future.
Coordinating Minister for Human Development and Cultural Affairs Pratikno delivered this message during a press update on Wednesday regarding the flood and landslide response in Aceh, North Sumatra, and West Sumatra, following his direct inspection of affected areas in Banda Aceh.
Pratikno stated that the central government has taken firm steps to reorganize forest and natural resource management on the island of Sumatra. One key measure is the revocation of large-scale business permits deemed to have the potential for environmental damage and to exacerbate disaster impacts.
"The central government, through the Ministry of Forestry, has revoked large-scale land use permits, including millions of hectares of palm oil plantation permits and timber utilization permits," Pratikno said.
According to him, this policy is part of a comprehensive evaluation of unsustainable land-use practices that have damaged ecosystems, especially in disaster-prone areas.
Beyond the forestry sector, the government is also cracking down on mining activities considered risky for environmental sustainability.
Pratikno noted that the Ministry of Environment has sealed the operations of five major mining companies.
"Five mining companies have been sealed off because they were assessed as having the potential to cause environmental damage," he asserted.
These law enforcement actions, Pratikno added, signal that the government will no longer tolerate business practices that neglect environmental concerns and public safety.
These measures align with President Prabowo Subianto's directive that post-disaster efforts should not stop at physical recovery alone.
“We are not only restoring conditions to what they were, but we must ensure they are better in the future,” Pratikno said. Prabowo Subianto
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Palm Oil Wins Under Prabowo–Trump Deal, Manufacturers Seek More Concessions
Jakarta. President Prabowo Subianto and US President Donald Trump are expected to sign a landmark reciprocal trade agreement within the next month, a deal welcomed by Indonesian businesses but seen as falling short of broader tariff relief.
Under the latest round of negotiations, the United States agreed to allow Indonesian palm oil to enter its market tariff-free. The Trump administration had earlier rolled back tariffs on cocoa and coffee through an executive order issued in November.
The Indonesian Employers Association (Apindo) said the palm oil exemption showed Indonesia was on the “right track” by prioritizing sectors with strong comparative advantages and high employment impact. However, it said the private sector hopes the government will press Washington for tariff reductions on manufactured goods.
“Tariff exemptions should gradually expand to other products, especially high-value manufactured goods, so the pact does not only boost commodity exports but also supports industrial upgrading and export diversification,” Apindo chairwoman Shinta Kamdani told the Jakarta Globe.
Coordinating Economic Affairs Minister Airlangga Hartarto, who led Indonesia’s negotiating team, has said there were no major changes from the terms agreed by both governments in July.
The deal is widely seen as a win for the palm oil industry. Indonesia controls about 89% of the US palm oil market, with Malaysia as its main competitor. Malaysian palm oil has entered the US market tariff-free since October, while a 19% tariff on Indonesian palm oil officially took effect on Aug. 7.
The Indonesian Palm Oil Association (Gapki) said the higher tariffs had not significantly affected shipments to the US, as recent exports were likely based on contracts signed before the duty increase.
“If the US truly lowers palm oil tariffs to zero, it will clearly boost our exports, which have risen over the past five years despite a slight decline in 2024,” Gapki chairman Eddy Martono said, noting that palm oil prices outperformed other vegetable oils last year. Jakarta Globe
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Palm oil remains top contributor as Malaysia’s agriculture sector expands 3.1pc in 2024
PUTRAJAYA, Dec 26 — The strong performance of palm oil continues to be the main driver of growth in the country’s agricultural sector, which expanded 3.1 per cent in 2024 compared with 0.2 per cent in the previous year, according to the Selected Agricultural Indicators 2025 report released today by the Department of Statistics Malaysia (DOSM).
Chief statistician Datuk Seri Dr. Mohd Uzir Mahidin stated that palm oil recorded a growth rate of 5.1 per cent in 2024, compared to 0.2 per cent in 2023, thereby contributing significantly to the value-added of the agricultural sector.
“Palm oil remains the largest contributor to the value added of the agricultural sector with a contribution of RM38.1 billion, or 36.8 per cent, followed by other agriculture segments at RM29.7 billion, or 28.7 per cent, while the livestock subsector recorded a contribution of RM17.4 billion, or 16.9 per cent,” he said in a statement here today.
Commenting on agricultural production performance, Mohd Uzir stated that the production of fresh fruit bunches (palm oil) recorded the highest volume among agricultural commodities, at 100,163.5 metric tonnes, representing a 5.5 per cent increase compared to the previous year. “The highest increase in production was recorded by cocoa beans at 33.3 per cent, followed by selected vegetables (11.8 per cent), kenaf (dry stalks) (11.5 per cent), natural rubber (11.1 per cent), pepper (7.5 per cent), and selected fruits (4.5 per cent),” he said.
For the livestock subsector, Mohd Uzir noted that the number of chickens increased by 3.5 per cent to 327.3 million birds in 2024 compared with 316.2 million birds in 2023. Chicken meat production rose by 13.7 per cent, followed by beef and buffalo meat at 9.6 per cent and fresh milk at 5.7 per cent.
He said brackishwater aquaculture production in 2024 declined by 0.4 per cent to 392,400 metric tonnes compared with the previous year, while marine fish landings and freshwater aquaculture production increased by 9.6 per cent and 5.7 per cent, respectively.
From a regional perspective, Mohd Uzir said that the contribution of the agricultural sector to gross domestic product (GDP) among Asean countries ranged from 0.03 to 20.8 per cent. “Myanmar recorded the highest contribution at 20.8 per cent, followed by Laos (16.8 per cent), Cambodia (16.6 per cent), Indonesia (12.6 per cent) and Vietnam (11.9 per cent). Malaysia, with a contribution of 8.2 per cent, ranked eighth out of ten Asean countries,” he said.
Mohd Uzir highlighted that the agricultural sector plays an important role in ensuring that the country’s food supply remains sufficient, while also contributing significantly to national income and export earnings.
“The total exports of agri-food and selected agricultural products increased from RM160.7 billion in 2023 to RM179.2 billion in 2024. At the same time, total imports rose to RM154.4 billion in 2024 compared with RM135.4 billion in 2023, with the country’s food imports amounting to RM93.8 billion in 2024,” he added. -- Bernama/Malaymail
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Palm Oil Extends Rally Driven by Robust Malaysian Shipments
Palm oil continued to rise for a fourth consecutive session because of increased demand for Malaysian goods, reaching its highest level
Quick overview
- Palm oil prices have risen for four consecutive sessions, reaching a two-week high due to increased demand for Malaysian goods.
- Malaysia's palm oil exports increased by 1.6% month over month in December, with India being the largest buyer, importing 279,550 tons.
- The rise in exports is attributed to heightened demand during the festival season, with expectations for further price increases in February 2026.
- However, a strengthening Malaysian ringgit may limit price gains by making palm oil less attractive to foreign buyers.
Intertek Testing Services reports that during the first 25 days of December, exports from Malaysia, the second-largest grower, increased by 1.6% month over month.
India was the largest buyer, a 66 percent increase over the same period last month, with 279,550 tons imported. “As the festival season’s demand catches up, exports are bound to rise now,” stated Gnanasekar Thiagarajan, Kaleesuwari Intercontinental’s head of trading and hedging strategies.
Prices are anticipated to rise in February 2026 due to demand before the Lunar New Year and Ramadan. He did, however, add that a stronger ringgit might limit gains. After strengthening for a third day, the Malaysian ringgit is poised to reach a four-and-a-half-year high, making the tropical commodity less appealing to foreign buyers. FX Leaders
December 25, 2025
Indonesia sets 2026 palm biodiesel allocation at 15.65 million kilolitres
Jakarta: Indonesia’s Ministry of Energy and Mineral Resources has issued a decree allocating 15.65 million kilolitres of palm oil-based biodiesel for the country’s fuel blending programme in 2026, a ministry official said on Tuesday, reports Market Screener.
Of the total volume, 7.45 million kilolitres have been set aside for the public service obligation segment, which includes sectors such as public transport. Fuel sold under this category will be supported through subsidies from Indonesia’s palm oil fund.
The remaining 8.20 million kilolitres will be supplied outside the public service obligation scheme and sold at market prices, said Eniya Listiani Dewi from the Energy and Mineral Resources Ministry.
Indonesia’s allocation for 2026 is slightly higher than the 15.6 million kilolitres set aside for 2025.
The country currently requires diesel to contain 40% palm oil-based biodiesel and plans to raise this share to 50% from next year, as part of efforts to cut dependence on imported fossil fuels.
Road tests for the proposed 50% blend, known as B50, began in early December and are expected to run for about six months. Energy Minister Bahlil Lahadalia has said the mandatory use of the higher blend is likely to start in the second half of 2026.
According to the biodiesel producers association APROBI, rolling out the B50 mandate could require as much as 19 million kilolitres of palm oil fuel each year.
APROBI secretary general Ernest Gunawan said the plan would move ahead if vehicle testing results are satisfactory and enough raw materials are available. He added that the ministry may revise the current allocation decree in the second half of the year to match the needs of the higher blending requirement.
Indonesia’s palm oil stockpiles fell by 10% in October from the previous month to 2.33 million metric tonnes, even as production increased. Domestic use rose 8.5% to 2.22 million tonnes, driven by stronger demand for biodiesel and food.
As the world’s largest palm oil producer, Indonesia may also consider regulating crude palm oil exports to make sure there is sufficient supply at home to meet biodiesel production. Bioenergy Times
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Indonesia Targets $8.5 Billion in Fines from Palm Oil and Mining Firms
Jakarta. The Attorney General’s Office has identified potential state revenue of Rp 142.23 trillion ($8.5 billion) from administrative fines imposed on palm oil plantation and mining companies found to have violated forest land-use regulations, Attorney General Sanitiar Burhanuddin said on Wednesday.
The potential revenue includes Rp 109.6 trillion from palm oil companies and Rp 32.63 trillion from mining firms operating illegally in forest areas, Burhanuddin told a press conference at his office in Jakarta.
“For 2026, there is significant potential for administrative fine revenue from palm oil and mining industries operating within forest zones,” Burhanuddin said.
His remarks came after the Attorney General’s Office symbolically handed over Rp 6.6 trillion in forestry-related fines to the state earlier the same day. Jakarta Globe
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Indonesia's Forest Task Force Returns Millions of Hectares of Palm Oil and Conservation Land to State
JAKARTA — The government, through the Task Force for Forest Area Control (Satgas PKH), has demonstrated a strong commitment to law enforcement, forest restoration, and reclaiming state rights over natural resources. To date, a total of 4 million hectares of land has been successfully returned to state control.
"As of today, we can report that the total forest area successfully reclaimed has reached 4,081,560.58 hectares," said Indonesian Attorney General ST Burhanuddin during a press conference at the Attorney General's Office on Wednesday.
From this total, the PKH Task Force has handed over a fifth tranche of forest area, consisting of 896,969,143 hectares of palm oil plantations, to relevant ministries and agencies. A further 240,575.38 hectares were transferred via the Ministry of Finance and the State Asset Management Agency (Danantara) to PT Agrinas Palma Nusantara to be managed professionally for the national interest.
"Meanwhile, forest land conservation has been handed over to the Ministry of Forestry for restoration, covering 688,427 hectares spread across nine provinces," he added.
In a move to ensure public accountability, the Attorney General also announced the transfer of state funds totaling IDR 6,625,294,190,469.74. These funds consist of administrative fines collected by the PKH Task Force from forestry violations amounting to Rp. 2,344,965,750, sourced from 20 palm oil companies and one nickel mining company. Additionally, IDR 4,280,328,440,469.74 was recovered by the Attorney General's Office from handling criminal corruption cases.
The recovered state funds stem from investigations into alleged corruption in granting export facilities for crude palm oil (CPO) and cases involving sugar imports. Furthermore, the Attorney General highlighted the significant potential state revenue for 2026 from administrative fines related to palm oil and mining activities within forest areas. Prabowo Subianto
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Prabowo Says Forestry Fines Could Build 100000 Homes for Flood Victims
TEMPO.CO, Jakarta - Indonesian president Prabowo Subianto said that the Rp6.62 trillion in forestry administrative fines and state financial recoveries returned by the Attorney General’s Office could fund at least 100,000 permanent homes for flood victims in Aceh and other parts of Sumatra.
He described the fines collected from 20 palm oil companies as just a small fraction of the actual state losses.
“If we examine this closely, the fines should perhaps reach hundreds of trillions. Some companies are stubborn and consider it trivial, but we have proven and will continue to show that we are serious,” Prabowo said, as quoted by Antara, during the handover ceremony at the Attorney General’s Office Round Building in Jakarta on Wednesday, December 24, 2025.
Prabowo highlighted that the returned state funds could also renovate around 6,000 schools in addition to building permanent homes for disaster victims.
During the event, the President asked ministers from his Red and White Cabinet about the housing needs for refugees. He was informed that nearly 200,000 permanent homes are needed for victims of floods and landslides. Tempo
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Opalm to build five palm oil plants in Cameroon to cut supply gap by about 50%
Opalm has announced the launch of construction works for a palm oil production plant in the Nyong-Ekelle department of Cameroon’s Center region, scheduled for the first quarter of 2026. The facility, expected to be delivered by the third quarter of 2027 at the latest, will be the first in a series of five plants the company has committed to build in Cameroon’s palm oil producing areas over a five-year period.
The total investment is estimated at CFA45 billion and is expected to create 450 direct jobs and about 1,200 indirect jobs.
The project was officially unveiled on December 22, 2025, at the Prime Minister’s Office in Yaoundé during a ceremony to sign the legal agreements governing the investment. These include two investment conventions: one between Opalm and the government, represented by the ministers of Agriculture, Trade, and Industry, and another between Opalm and the Investment Promotion Agency, allowing the project to benefit from incentives provided under Cameroon’s private investment promotion law. Opalm and the Ministry of Agriculture also signed specifications outlining cooperation to improve support for palm fruit producers.
According to Opalm Chief Executive Officer Tarek Daoud, the agro-industrial project has two main objectives: supporting the government’s efforts to better structure and plan rural development, and increasing national palm oil production. He said Cameroon’s current palm oil deficit stands at about 300,000 tons, and that Opalm’s program aims to add 108,000 tons to the supply available to local industries, representing a reduction of the deficit of around 50%.
Import substitution
Due to insufficient palm oil supply, processing industries such as refined oil producers and soap manufacturers typically operate at only 40% to 50% of installed capacity. Agriculture Minister Gabriel Mbairobe said Cameroon currently has about 1.2 million tons of oilseed refining capacity, which could be more fully utilized once additional palm oil becomes available.
Beyond boosting processing activity, the Opalm project supports Cameroon’s import-substitution policy, which seeks to increase local production in order to reduce imports and, by extension, the trade deficit.
According to the agriculture minister, palm oil imports are estimated at around CFA100 billion per year, making the product one of the largest contributors to Cameroon’s trade imbalance. He said the Opalm project is expected to help partially rebalance the country’s trade position. Business in Cameroon
Indonesia sets 2026 palm biodiesel allocation at 15.65 million kilolitres
Jakarta: Indonesia’s Ministry of Energy and Mineral Resources has issued a decree allocating 15.65 million kilolitres of palm oil-based biodiesel for the country’s fuel blending programme in 2026, a ministry official said on Tuesday, reports Market Screener.
Of the total volume, 7.45 million kilolitres have been set aside for the public service obligation segment, which includes sectors such as public transport. Fuel sold under this category will be supported through subsidies from Indonesia’s palm oil fund.
The remaining 8.20 million kilolitres will be supplied outside the public service obligation scheme and sold at market prices, said Eniya Listiani Dewi from the Energy and Mineral Resources Ministry.
Indonesia’s allocation for 2026 is slightly higher than the 15.6 million kilolitres set aside for 2025.
The country currently requires diesel to contain 40% palm oil-based biodiesel and plans to raise this share to 50% from next year, as part of efforts to cut dependence on imported fossil fuels.
Road tests for the proposed 50% blend, known as B50, began in early December and are expected to run for about six months. Energy Minister Bahlil Lahadalia has said the mandatory use of the higher blend is likely to start in the second half of 2026.
According to the biodiesel producers association APROBI, rolling out the B50 mandate could require as much as 19 million kilolitres of palm oil fuel each year.
APROBI secretary general Ernest Gunawan said the plan would move ahead if vehicle testing results are satisfactory and enough raw materials are available. He added that the ministry may revise the current allocation decree in the second half of the year to match the needs of the higher blending requirement.
Indonesia’s palm oil stockpiles fell by 10% in October from the previous month to 2.33 million metric tonnes, even as production increased. Domestic use rose 8.5% to 2.22 million tonnes, driven by stronger demand for biodiesel and food.
As the world’s largest palm oil producer, Indonesia may also consider regulating crude palm oil exports to make sure there is sufficient supply at home to meet biodiesel production. Bioenergy Times
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Indonesia Targets $8.5 Billion in Fines from Palm Oil and Mining Firms
Jakarta. The Attorney General’s Office has identified potential state revenue of Rp 142.23 trillion ($8.5 billion) from administrative fines imposed on palm oil plantation and mining companies found to have violated forest land-use regulations, Attorney General Sanitiar Burhanuddin said on Wednesday.
The potential revenue includes Rp 109.6 trillion from palm oil companies and Rp 32.63 trillion from mining firms operating illegally in forest areas, Burhanuddin told a press conference at his office in Jakarta.
“For 2026, there is significant potential for administrative fine revenue from palm oil and mining industries operating within forest zones,” Burhanuddin said.
His remarks came after the Attorney General’s Office symbolically handed over Rp 6.6 trillion in forestry-related fines to the state earlier the same day. Jakarta Globe
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Indonesia's Forest Task Force Returns Millions of Hectares of Palm Oil and Conservation Land to State
JAKARTA — The government, through the Task Force for Forest Area Control (Satgas PKH), has demonstrated a strong commitment to law enforcement, forest restoration, and reclaiming state rights over natural resources. To date, a total of 4 million hectares of land has been successfully returned to state control.
"As of today, we can report that the total forest area successfully reclaimed has reached 4,081,560.58 hectares," said Indonesian Attorney General ST Burhanuddin during a press conference at the Attorney General's Office on Wednesday.
From this total, the PKH Task Force has handed over a fifth tranche of forest area, consisting of 896,969,143 hectares of palm oil plantations, to relevant ministries and agencies. A further 240,575.38 hectares were transferred via the Ministry of Finance and the State Asset Management Agency (Danantara) to PT Agrinas Palma Nusantara to be managed professionally for the national interest.
"Meanwhile, forest land conservation has been handed over to the Ministry of Forestry for restoration, covering 688,427 hectares spread across nine provinces," he added.
In a move to ensure public accountability, the Attorney General also announced the transfer of state funds totaling IDR 6,625,294,190,469.74. These funds consist of administrative fines collected by the PKH Task Force from forestry violations amounting to Rp. 2,344,965,750, sourced from 20 palm oil companies and one nickel mining company. Additionally, IDR 4,280,328,440,469.74 was recovered by the Attorney General's Office from handling criminal corruption cases.
The recovered state funds stem from investigations into alleged corruption in granting export facilities for crude palm oil (CPO) and cases involving sugar imports. Furthermore, the Attorney General highlighted the significant potential state revenue for 2026 from administrative fines related to palm oil and mining activities within forest areas. Prabowo Subianto
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Prabowo Says Forestry Fines Could Build 100000 Homes for Flood Victims
TEMPO.CO, Jakarta - Indonesian president Prabowo Subianto said that the Rp6.62 trillion in forestry administrative fines and state financial recoveries returned by the Attorney General’s Office could fund at least 100,000 permanent homes for flood victims in Aceh and other parts of Sumatra.
He described the fines collected from 20 palm oil companies as just a small fraction of the actual state losses.
“If we examine this closely, the fines should perhaps reach hundreds of trillions. Some companies are stubborn and consider it trivial, but we have proven and will continue to show that we are serious,” Prabowo said, as quoted by Antara, during the handover ceremony at the Attorney General’s Office Round Building in Jakarta on Wednesday, December 24, 2025.
Prabowo highlighted that the returned state funds could also renovate around 6,000 schools in addition to building permanent homes for disaster victims.
During the event, the President asked ministers from his Red and White Cabinet about the housing needs for refugees. He was informed that nearly 200,000 permanent homes are needed for victims of floods and landslides. Tempo
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Opalm to build five palm oil plants in Cameroon to cut supply gap by about 50%
Opalm has announced the launch of construction works for a palm oil production plant in the Nyong-Ekelle department of Cameroon’s Center region, scheduled for the first quarter of 2026. The facility, expected to be delivered by the third quarter of 2027 at the latest, will be the first in a series of five plants the company has committed to build in Cameroon’s palm oil producing areas over a five-year period.
The total investment is estimated at CFA45 billion and is expected to create 450 direct jobs and about 1,200 indirect jobs.
The project was officially unveiled on December 22, 2025, at the Prime Minister’s Office in Yaoundé during a ceremony to sign the legal agreements governing the investment. These include two investment conventions: one between Opalm and the government, represented by the ministers of Agriculture, Trade, and Industry, and another between Opalm and the Investment Promotion Agency, allowing the project to benefit from incentives provided under Cameroon’s private investment promotion law. Opalm and the Ministry of Agriculture also signed specifications outlining cooperation to improve support for palm fruit producers.
According to Opalm Chief Executive Officer Tarek Daoud, the agro-industrial project has two main objectives: supporting the government’s efforts to better structure and plan rural development, and increasing national palm oil production. He said Cameroon’s current palm oil deficit stands at about 300,000 tons, and that Opalm’s program aims to add 108,000 tons to the supply available to local industries, representing a reduction of the deficit of around 50%.
Import substitution
Due to insufficient palm oil supply, processing industries such as refined oil producers and soap manufacturers typically operate at only 40% to 50% of installed capacity. Agriculture Minister Gabriel Mbairobe said Cameroon currently has about 1.2 million tons of oilseed refining capacity, which could be more fully utilized once additional palm oil becomes available.
Beyond boosting processing activity, the Opalm project supports Cameroon’s import-substitution policy, which seeks to increase local production in order to reduce imports and, by extension, the trade deficit.
According to the agriculture minister, palm oil imports are estimated at around CFA100 billion per year, making the product one of the largest contributors to Cameroon’s trade imbalance. He said the Opalm project is expected to help partially rebalance the country’s trade position. Business in Cameroon
December 24, 2025
Indonesia plans to fine palm oil growers, miners $8.5 billion for forest encroachment
JAKARTA, Dec 24 (Reuters) – Indonesia has identified potential fines amounting to $8.5 billion that the government could collect in 2026 from palm oil companies and miners operating illegally in forest areas, the country’s attorney general said on Wednesday.
President Prabowo Subianto’s forestry task force, made up of military personnel, police, prosecutors and government officials, has this year cracked down on an unprecedented scale on plantations and mines in what authorities say were supposed to be forest areas.
The military-backed campaign has unnerved the palm oil industry, with analysts predicting that in combination with Indonesia’s ambitious biodiesel plans, the seizures could put even more upward pressure on global prices by disrupting production.
Attorney General Sanitiar Burhanuddin, speaking at a ceremony in front of tall stacks of red rupiah banknotes, said the task force has already taken over 4.1 million hectares (9.8 million acres) of illegal plantations and mines, a total area about the size of the Netherlands.
Burhanuddin also handed to the finance minister over 2.34 trillion rupiah ($139.70 million) in fines the task force collected from 20 palm oil companies and one nickel miner.
“For 2026, there is revenue potential from administrative fines from palm oil plantations and mines within forest areas, amounting to 109.6 trillion rupiah ($6.54 billion) for palm oil and 32.63 trillion rupiah ($1.95 billion) for mining,” Burhanuddin said.
He did not name any of the companies.
Burhanuddin also transferred more than 240,500 hectares of plantations to state firm Agrinas Palma Nusantara, which was set up early in 2025. Agrinas’s total land size has now reached 1.7 million hectares, consolidating its position as the largest palm oil company in the world by area.
At the ceremony, Prabowo praised the task force and railed against those he said had tried to bleed Indonesia dry as well as foreign forces undermining his government.
“Even though the work, the journey is tough, I have an instinct in 2026 we will take even bolder steps … We will save this nation’s wealth without hesitation,” he said.
Indonesia is the world’s biggest exporter of palm oil, thermal coal, nickel and tin. Reuters
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Imports decline as production of palm oil and oilseeds goes up in India
Ashwani Maindola, New Delhi
The latest trade figures for the month of November show that edible oil imports into India were not only lower than the previous month but also registered a significant decline compared to the same period last year, resulting in a significant shift that has been observed in the edible oil market in recent months. As per experts, increased production of palm oil and other domestic oilseeds in India, coupled with inflation, import duties, and international market dynamics, has transformed the landscape of India's edible oil imports.
According to Shankar Thakkar, president, All India Edible Oil Federation, in November alone, India's vegetable oil imports decreased by approximately 11 percent month-on-month, while registering a sharp decline of 28 percent year-on-year. The biggest reason for this decline is the near-zero import of palm oil. Imports of palm oil fell to just 3,500 tons in November, a significantly lower figure compared to the previous year.
"Besides palm oil, imports of crude sunflower oil and degummed soybean oil also decreased in November. However, there was a slight increase in the import of crude palm oil during this period. Overall, a clear decline was observed in the imports of sunflower and soybean oils," said Thakkar.
Further, experts observed that the impact of reduced imports is clearly visible in the country's edible oil stocks. As of December 1, the total stock of edible oil had decreased to approximately 1.62 million tons, compared to 1.73 million tons on November 1. Crude palm oil constitutes the largest share of this stock. Palm kernel oil, RBD palm oil, degummed soybean oil, crude sunflower oil, and mustard oil are also included in this stock.
While the total import of the palm oil group was lower than last year, its share in total vegetable oil imports increased. This is because the import of soft oils declined at a faster rate.
Thakkar added that the impact of the Central Government's decision in June to reduce the effective import duty on crude edible oils to 16.5 percent and maintain the duty on refined oils at 37.75 percent is now clearly visible.
"This has led companies to increase imports of crude oil instead of refined oil, in order to boost domestic refining. Overall, the decline in edible oil imports in November indicates that the impact of government policies and global conditions is now becoming visible in the market. Furthermore, the positive effects of the Indian government's schemes to increase oilseed production are also clearly evident," said Thakkar. F&B NewsID
Indonesia plans to fine palm oil growers, miners $8.5 billion for forest encroachment
JAKARTA, Dec 24 (Reuters) – Indonesia has identified potential fines amounting to $8.5 billion that the government could collect in 2026 from palm oil companies and miners operating illegally in forest areas, the country’s attorney general said on Wednesday.
President Prabowo Subianto’s forestry task force, made up of military personnel, police, prosecutors and government officials, has this year cracked down on an unprecedented scale on plantations and mines in what authorities say were supposed to be forest areas.
The military-backed campaign has unnerved the palm oil industry, with analysts predicting that in combination with Indonesia’s ambitious biodiesel plans, the seizures could put even more upward pressure on global prices by disrupting production.
Attorney General Sanitiar Burhanuddin, speaking at a ceremony in front of tall stacks of red rupiah banknotes, said the task force has already taken over 4.1 million hectares (9.8 million acres) of illegal plantations and mines, a total area about the size of the Netherlands.
Burhanuddin also handed to the finance minister over 2.34 trillion rupiah ($139.70 million) in fines the task force collected from 20 palm oil companies and one nickel miner.
“For 2026, there is revenue potential from administrative fines from palm oil plantations and mines within forest areas, amounting to 109.6 trillion rupiah ($6.54 billion) for palm oil and 32.63 trillion rupiah ($1.95 billion) for mining,” Burhanuddin said.
He did not name any of the companies.
Burhanuddin also transferred more than 240,500 hectares of plantations to state firm Agrinas Palma Nusantara, which was set up early in 2025. Agrinas’s total land size has now reached 1.7 million hectares, consolidating its position as the largest palm oil company in the world by area.
At the ceremony, Prabowo praised the task force and railed against those he said had tried to bleed Indonesia dry as well as foreign forces undermining his government.
“Even though the work, the journey is tough, I have an instinct in 2026 we will take even bolder steps … We will save this nation’s wealth without hesitation,” he said.
Indonesia is the world’s biggest exporter of palm oil, thermal coal, nickel and tin. Reuters
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Imports decline as production of palm oil and oilseeds goes up in India
Ashwani Maindola, New Delhi
The latest trade figures for the month of November show that edible oil imports into India were not only lower than the previous month but also registered a significant decline compared to the same period last year, resulting in a significant shift that has been observed in the edible oil market in recent months. As per experts, increased production of palm oil and other domestic oilseeds in India, coupled with inflation, import duties, and international market dynamics, has transformed the landscape of India's edible oil imports.
According to Shankar Thakkar, president, All India Edible Oil Federation, in November alone, India's vegetable oil imports decreased by approximately 11 percent month-on-month, while registering a sharp decline of 28 percent year-on-year. The biggest reason for this decline is the near-zero import of palm oil. Imports of palm oil fell to just 3,500 tons in November, a significantly lower figure compared to the previous year.
"Besides palm oil, imports of crude sunflower oil and degummed soybean oil also decreased in November. However, there was a slight increase in the import of crude palm oil during this period. Overall, a clear decline was observed in the imports of sunflower and soybean oils," said Thakkar.
Further, experts observed that the impact of reduced imports is clearly visible in the country's edible oil stocks. As of December 1, the total stock of edible oil had decreased to approximately 1.62 million tons, compared to 1.73 million tons on November 1. Crude palm oil constitutes the largest share of this stock. Palm kernel oil, RBD palm oil, degummed soybean oil, crude sunflower oil, and mustard oil are also included in this stock.
While the total import of the palm oil group was lower than last year, its share in total vegetable oil imports increased. This is because the import of soft oils declined at a faster rate.
Thakkar added that the impact of the Central Government's decision in June to reduce the effective import duty on crude edible oils to 16.5 percent and maintain the duty on refined oils at 37.75 percent is now clearly visible.
"This has led companies to increase imports of crude oil instead of refined oil, in order to boost domestic refining. Overall, the decline in edible oil imports in November indicates that the impact of government policies and global conditions is now becoming visible in the market. Furthermore, the positive effects of the Indian government's schemes to increase oilseed production are also clearly evident," said Thakkar. F&B NewsID
December 23, 2025
Indonesia eyes US tariff deal signing in January, says all issues settled
Senior Economic Minister Airlangga Hartarto, speaking from Washington late on Monday after meeting U.S. Trade Representative Jamieson Greer, said the United States wanted access to Indonesia's critical minerals and had agreed to give tariff exemptions to its palm oil, tea and coffee.
Indonesia is the world's biggest exporter of palm oil and a major global supplier of robusta coffee beans.
Talks between the two countries had appeared at risk of collapse earlier this month after the United States accused Indonesia of backtracking on prior commitments, although Jakarta said their "dynamics" were normal and it was just a matter of "harmonising the language".
Airlangga repeated there were "dynamics" during the talks, but said all substantial issues had been resolved and that the latest round of talks went well.
"The main thing, of course, is providing balanced market access for American products, and at the same time, market access for Indonesia to the U.S.," Airlangga said in a video briefing with Indonesian media.
Officials from both countries are now seeking to set up a meeting between Prabowo and Trump by the end of January, where a trade agreement could be signed.
Airlangga said there was no provision in the agreement that would limit Indonesia from making trade deals with other countries.
"No Indonesian policies are restricted by this agreement. This agreement is commercial and strategic in nature, and benefits the economic interests of both countries in a balanced manner," Airlangga said.
A provision in a U.S.-Malaysia, opens new tab tariff deal allows the United States to end the pact and restore the tariff Trump announced in April, if new deals endanger key U.S. interests and talks fail to resolve its concerns.
Cambodia, opens new tab also has a similar clause in its U.S. deal agreed in October, with some difference in the wording. Reuters
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Indonesian President Signals Big Expansion of Palm Plantations in Papua
JAKARTA – President Prabowo Subianto has given a strong signal of change in the direction of government’s energy policy by pushing for the inclusion of Papua into oil palm plantation map of Indonesia.
The palm oil is projected not just a plantation commodity for foods, but also a source of alternative energy to realize energy self-sufficiency in eastern Indonesia.
During the meeting on acceleration of Papua development at the state palace in Jakarta on Tuesday (16/12/2025), Prabowo underlined the importance of utilizing the potential lands in Papua for planting energy crops.
He mentioned the palm oil as one of the strategic commodities as raw materials to produce oil fuels (BBM) that will allow the regions to realize energy self-sufficiency and stop reliance on foreign supplies.
Besides the palm oil, Prabowo also opens the opportunities for developing sugarcane and cassava as raw materials to produce bioethanol.
The combination of various energy sources based on agriculture is seen able to accelerate the realization of targets of energy self-sufficiency and food self-sufficiency across all regions of Indonesia.
President targets that during the next five years every region in Indonesia, including Papua, will be able to rely on themselves in fulfilling their needs of foods and energy.
The energy produced in regions is expected to meet the energy need of local people, and not just for shipping to other regions outside the producing regions.
But instead of only relying on plantations, Prabowo also urges the optimization of other renewable energy sources such as solar power and hydropower.
According to him, technological development has made the solar power and hydropower more affordable and relevant to reach remote areas in Papua and other regions in eastern Indonesia.
“The energy self-sufficiency in regions is the key. If the solar power and hydropower are available in regions, we will no longer need to send the expensive oil fuels from other regions,” he said.
Prabowo stated that if Indonesia can implement the strategy then the reliance of Indonesia on imported oil fuels can be reduced significantly.
The saving of state budget is potential ro reach hundreds of trillions of rupiah every year, along with the reduction of spending for energy imports.
By including Papua in the national agenda of energy transition, Prabowo said the development of eastern Indonesia is not just a matter of infrastructure, but also its strategic role in maintaining national energy resilience. GAPKI
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Indonesia’s new trade imperative is storytelling
Sondang Sirait
Modern trade agreements rarely fail on technical merits. They fail when the public rejects their story.
As Indonesia accelerates its network of Comprehensive Economic Partnership Agreements (CEPAs) from Europe to North America, mastering the narrative is increasingly becoming an imperative that determines whether these deals endure.
To build supportive domestic narratives, perceptions must be reciprocal.
Indonesia’s ambitions are clear. Its CEPAs with the EU and Canada, its role in ASEAN and the Regional Comprehensive Economic Partnership, and its path towards OECD membership all signal a country demanding greater weight in global value chains. But integration now occurs in a hyper-politicised, digitally crowded arena. The old technical model where governments negotiate, businesses benefit, and the public acquiesces, is obsolete.
Recent history proves the point. The Trans-Pacific Partnership and the EU-US Transatlantic Trade and Investment Partnership didn’t collapse over tariffs but because the public narratives around them, framed as threats to sovereignty and jobs, became politically toxic.
The Indonesia-EU CEPA faces this precise challenge. On paper, it promises deeper trade and sustainability ties. In practice, it faces complex political headwinds. The European discourse is dominated by environmental and ethical concerns, particularly around palm oil and deforestation. In Indonesia, these are often perceived as protectionist barriers disguised as ethical concerns, hindering fair access for its commodities. Bridging this gap requires a public narrative that connects facts to feelings: positioning Indonesia as an essential partner in building sustainable supply chains and Europe as a collaborator respecting Indonesia’s development trajectory.
The Indonesia–Canada CEPA operates in similar territory, especially concerning critical minerals. Canada brings intense public scrutiny of Indonesia’s extraction and labour practices. Indonesia brings determined industrial ambitions and expectations of policy space for downstream processing. Without a story that reconciles these positions, the agreement risks being picked apart by interests on both sides.
Economic partnership without cultural familiarity risks becoming purely transactional.
The IndonesiaAustralia CEPA demonstrates what happens when substance runs ahead of public understanding. When the agreement entered into force in 2021, years of technical cooperation had already built substantial foundations, but public familiarity with the agreement’s potential was still developing. Polling showed large perception gaps: fewer than half of Australians viewed Indonesia as a democracy, while only a small share of Indonesians considered Australia their closest partner.
The Katalis initiative, established to support implementation of the Australia–Indonesia agreement, worked right from the start to ensure narrative catch up with policy. The shift began when cooperation was translated to human-scale stories. Consider Indonesian students graduating from an Australian-certified aged care program in Jakarta. That single image made abstract mobility provisions real, demonstrating shared standards and creating a tangible mutual benefit in a sector the public understands.
Katalis also regularly showcased Indonesian SMEs entering Australian markets and Australian training providers expanding reach into Indonesia, curating stories of reciprocal opportunity. This consistent, multi-sector and multi-channel storytelling didn’t just inform. The strategy reframed the story and demonstrated that the agreement was a platform for job-ready skills, business growth, and mutual resilience.
Southeast Asia’s online population, exceeding 460 million with Indonesia at its core, has turned economic diplomacy into a contest for attention. Deals framed only in GDP projections or tariff schedules can appear remote and elitist. In that vacuum, misinformation on issues like foreign workers, environmental obligations, or market access for sensitive sectors can spread rapidly.
This environment requires more than a social media account. It demands storytelling grounded in lived experience: small businesses entering new supply chains, farmers securing higher-value markets, or students accessing recognised qualifications. These stories humanise policy and make economic openness feel inclusive rather than imposed.
To build supportive domestic narratives, perceptions must be reciprocal. Partners in Europe and North America need to update outdated impressions of Indonesia as a passive commodity exporter. This is a G20 economy with a fast-growing tech sector and clear industrial policy goals. Conversely, Indonesia must frame Australia, Canada, and the EU not as donors or mere buyers but as collaborators in industrial upgrading and shared prosperity.
The narrative gaps extend beyond commerce. The parallel decline of Indonesian language studies in Australian universities during IA-CEPA’s rollout (2020–25) was a telling warning. Economic partnership without cultural familiarity risks becoming purely transactional. Lasting coordination requires a bedrock of public understanding.
To avoid past mistakes, narrative strategy must be embedded in economic diplomacy from the outset. Three shifts are critical. Lowy Institute
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Opinion: Where to find the olive oil of the tropics
WHEN people think of healthy oils, olive oil usually comes to mind. It is the star of the Mediterranean diet, praised for lowering cholesterol and protecting the heart. But here in the tropics, another oil quietly plays a similar role: palm olein, the liquid fraction of palm oil. Could this be the “olive oil of the tropics”?
The answer lies in a fascinating piece of biochemistry known as the SN-2 hypothesis. It may sound technical, but the idea is simple: the way fatty acids are arranged on the oil molecule matters for how our bodies absorb and use them.
The science made simple
Every cooking oil is made up of triglycerides — three fatty acids attached to a glycerol backbone. Imagine a three-pronged fork, with each prong holding a fatty acid. Scientists call these prongs SN-1, SN-2, and SN-3.
When we digest fat, enzymes snip off the fatty acids at SN-1 and SN-3. The one at SN-2 stays intact and is absorbed directly. That means the fatty acid sitting in the SN-2 position has a special influence on our blood cholesterol and overall metabolism.
Here’s the twist:
In animal fats like butter and lard, the SN-2 position is often occupied by palmitic acid, a saturated fat suspected of raising LDL cholesterol.
In olive oil, the SN-2 position is occupied by oleic acid, a monounsaturated fat that is heart-friendly.
In palm olein, surprisingly, the SN-2 position is also occupied by oleic acid.
So although palm olein contains saturated fat overall, its structure makes it behave more like olive oil than butter. That is the essence of the SN-2 hypothesis.
Malaysia’s scientific contribution
This discovery was first highlighted by Malaysian scientists led by Tan Sri Augustine Ong, who championed the idea that palm olein’s molecular structure explained its unexpectedly benign effects on cholesterol. Later, international researchers confirmed the insight: P Lucci in Italy and Welma Stonehouse in Australia both published clinical studies showing palm olein’s metabolic behaviour mirrors olive oil.
Between 1992 and 2017, nine controlled clinical trials across Malaysia, Australia, India, China, Denmark and Italy, compared palm olein with olive oil, canola oil, and groundnut oil. The results were consistent: palm olein performed on par with these unsaturated oils, showing no elevation of LDL cholesterol. In other words, palm olein did not behave like animal fats — it behaved like olive oil.
For Malaysia, this was a quiet triumph. It meant that a home-grown tropical oil could stand shoulder to shoulder with the Mediterranean’s most celebrated fat.
Why don’t we hear about this?
Despite decades of evidence, the findings remain little known. Part of the reason is perception: palm oil is often discussed in the context of environmental debates, while nutrition science gets overshadowed. Another reason is marketing — olive oil enjoys centuries of cultural prestige and strong branding, while palm olein is sold as a humble, everyday cooking oil.
The result is a gap between science and public awareness. Many consumers still assume palm oil is “bad” simply because it contains saturated fat, without realising that its molecular structure changes how the body responds.
Price and practicality
In Malaysia today, the price difference is striking:
Extra virgin olive oil (EVOO): RM72.50/kg
Pure olive oil: RM70.95/kg
Palm olein: RM6.90/kg
EVOO is prized for its fruity, grassy, or nutty aroma, with a complex taste balancing bitter, peppery, and sometimes sweet notes. It shines in salads, dips, and low-heat cooking. Pure olive oil, a blend of refined olive oil with 10% to 15% EVOO, has a milder flavour and is suitable for frying and baking.
Palm olein, by contrast, is bland — yet versatile. It works as a salad oil, but its real strength lies in frying and deep-frying. Thanks to its oxidative stability, palm olein lasts longer in the wok or fryer, making it a practical choice for tropical kitchens.
For families who do not need the aroma of EVOO, palm olein offers a wise financial alternative without sacrificing health.
Why this matters for you
For those who want to make informed choices, the message is clear:
Not all saturated fats are equal. The position of fatty acids in the oil molecule changes how they affect health.
Palm olein is different from butter. Thanks to its SN-2 oleic acid, it behaves more like olive oil in digestion.
Practical choices count. In tropical kitchens, using palm olein instead of animal fats can be a step towards better heart health.
Palm olein is a smart choice, with its molecular structure giving it olive-oil-like benefits. Like all oils, it should be used in moderation. But it does mean we should look beyond simple labels of “good” and “bad” fats.
Conclusion
So, do you know where to find the olive oil of the tropics? The answer may be closer than you think — right in the bottle of palm olein on your kitchen shelf.
Palm olein is not identical to olive oil, but its unique structure makes it more heart-friendly than many assume. By understanding the SN-2 hypothesis, we can appreciate the science behind our everyday cooking oil and make smarter choices for our health.
The story of palm olein reminds us that nutrition science is not just about broad dietary patterns. Sometimes, the details hidden in a molecule can change the way we see the food on our plate.
Qua Kiat Seng is an adjunct senior lecturer at Monash University Malaysia and has more than 50 years of experience in the oils and fats industry. The Edge
Indonesia eyes US tariff deal signing in January, says all issues settled
- Officials setting up Prabowo-Trump meeting in January
- No Indonesian policies are restricted by the deal, Jakarta says
- U.S. wants access to Indonesian critical minerals
- Jakarta seeking tariff exemptions for palm oil, tea, coffee
Senior Economic Minister Airlangga Hartarto, speaking from Washington late on Monday after meeting U.S. Trade Representative Jamieson Greer, said the United States wanted access to Indonesia's critical minerals and had agreed to give tariff exemptions to its palm oil, tea and coffee.
Indonesia is the world's biggest exporter of palm oil and a major global supplier of robusta coffee beans.
Talks between the two countries had appeared at risk of collapse earlier this month after the United States accused Indonesia of backtracking on prior commitments, although Jakarta said their "dynamics" were normal and it was just a matter of "harmonising the language".
Airlangga repeated there were "dynamics" during the talks, but said all substantial issues had been resolved and that the latest round of talks went well.
"The main thing, of course, is providing balanced market access for American products, and at the same time, market access for Indonesia to the U.S.," Airlangga said in a video briefing with Indonesian media.
Officials from both countries are now seeking to set up a meeting between Prabowo and Trump by the end of January, where a trade agreement could be signed.
Airlangga said there was no provision in the agreement that would limit Indonesia from making trade deals with other countries.
"No Indonesian policies are restricted by this agreement. This agreement is commercial and strategic in nature, and benefits the economic interests of both countries in a balanced manner," Airlangga said.
A provision in a U.S.-Malaysia, opens new tab tariff deal allows the United States to end the pact and restore the tariff Trump announced in April, if new deals endanger key U.S. interests and talks fail to resolve its concerns.
Cambodia, opens new tab also has a similar clause in its U.S. deal agreed in October, with some difference in the wording. Reuters
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Indonesian President Signals Big Expansion of Palm Plantations in Papua
JAKARTA – President Prabowo Subianto has given a strong signal of change in the direction of government’s energy policy by pushing for the inclusion of Papua into oil palm plantation map of Indonesia.
The palm oil is projected not just a plantation commodity for foods, but also a source of alternative energy to realize energy self-sufficiency in eastern Indonesia.
During the meeting on acceleration of Papua development at the state palace in Jakarta on Tuesday (16/12/2025), Prabowo underlined the importance of utilizing the potential lands in Papua for planting energy crops.
He mentioned the palm oil as one of the strategic commodities as raw materials to produce oil fuels (BBM) that will allow the regions to realize energy self-sufficiency and stop reliance on foreign supplies.
Besides the palm oil, Prabowo also opens the opportunities for developing sugarcane and cassava as raw materials to produce bioethanol.
The combination of various energy sources based on agriculture is seen able to accelerate the realization of targets of energy self-sufficiency and food self-sufficiency across all regions of Indonesia.
President targets that during the next five years every region in Indonesia, including Papua, will be able to rely on themselves in fulfilling their needs of foods and energy.
The energy produced in regions is expected to meet the energy need of local people, and not just for shipping to other regions outside the producing regions.
But instead of only relying on plantations, Prabowo also urges the optimization of other renewable energy sources such as solar power and hydropower.
According to him, technological development has made the solar power and hydropower more affordable and relevant to reach remote areas in Papua and other regions in eastern Indonesia.
“The energy self-sufficiency in regions is the key. If the solar power and hydropower are available in regions, we will no longer need to send the expensive oil fuels from other regions,” he said.
Prabowo stated that if Indonesia can implement the strategy then the reliance of Indonesia on imported oil fuels can be reduced significantly.
The saving of state budget is potential ro reach hundreds of trillions of rupiah every year, along with the reduction of spending for energy imports.
By including Papua in the national agenda of energy transition, Prabowo said the development of eastern Indonesia is not just a matter of infrastructure, but also its strategic role in maintaining national energy resilience. GAPKI
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Indonesia’s new trade imperative is storytelling
Sondang Sirait
Modern trade agreements rarely fail on technical merits. They fail when the public rejects their story.
As Indonesia accelerates its network of Comprehensive Economic Partnership Agreements (CEPAs) from Europe to North America, mastering the narrative is increasingly becoming an imperative that determines whether these deals endure.
To build supportive domestic narratives, perceptions must be reciprocal.
Indonesia’s ambitions are clear. Its CEPAs with the EU and Canada, its role in ASEAN and the Regional Comprehensive Economic Partnership, and its path towards OECD membership all signal a country demanding greater weight in global value chains. But integration now occurs in a hyper-politicised, digitally crowded arena. The old technical model where governments negotiate, businesses benefit, and the public acquiesces, is obsolete.
Recent history proves the point. The Trans-Pacific Partnership and the EU-US Transatlantic Trade and Investment Partnership didn’t collapse over tariffs but because the public narratives around them, framed as threats to sovereignty and jobs, became politically toxic.
The Indonesia-EU CEPA faces this precise challenge. On paper, it promises deeper trade and sustainability ties. In practice, it faces complex political headwinds. The European discourse is dominated by environmental and ethical concerns, particularly around palm oil and deforestation. In Indonesia, these are often perceived as protectionist barriers disguised as ethical concerns, hindering fair access for its commodities. Bridging this gap requires a public narrative that connects facts to feelings: positioning Indonesia as an essential partner in building sustainable supply chains and Europe as a collaborator respecting Indonesia’s development trajectory.
The Indonesia–Canada CEPA operates in similar territory, especially concerning critical minerals. Canada brings intense public scrutiny of Indonesia’s extraction and labour practices. Indonesia brings determined industrial ambitions and expectations of policy space for downstream processing. Without a story that reconciles these positions, the agreement risks being picked apart by interests on both sides.
Economic partnership without cultural familiarity risks becoming purely transactional.
The IndonesiaAustralia CEPA demonstrates what happens when substance runs ahead of public understanding. When the agreement entered into force in 2021, years of technical cooperation had already built substantial foundations, but public familiarity with the agreement’s potential was still developing. Polling showed large perception gaps: fewer than half of Australians viewed Indonesia as a democracy, while only a small share of Indonesians considered Australia their closest partner.
The Katalis initiative, established to support implementation of the Australia–Indonesia agreement, worked right from the start to ensure narrative catch up with policy. The shift began when cooperation was translated to human-scale stories. Consider Indonesian students graduating from an Australian-certified aged care program in Jakarta. That single image made abstract mobility provisions real, demonstrating shared standards and creating a tangible mutual benefit in a sector the public understands.
Katalis also regularly showcased Indonesian SMEs entering Australian markets and Australian training providers expanding reach into Indonesia, curating stories of reciprocal opportunity. This consistent, multi-sector and multi-channel storytelling didn’t just inform. The strategy reframed the story and demonstrated that the agreement was a platform for job-ready skills, business growth, and mutual resilience.
Southeast Asia’s online population, exceeding 460 million with Indonesia at its core, has turned economic diplomacy into a contest for attention. Deals framed only in GDP projections or tariff schedules can appear remote and elitist. In that vacuum, misinformation on issues like foreign workers, environmental obligations, or market access for sensitive sectors can spread rapidly.
This environment requires more than a social media account. It demands storytelling grounded in lived experience: small businesses entering new supply chains, farmers securing higher-value markets, or students accessing recognised qualifications. These stories humanise policy and make economic openness feel inclusive rather than imposed.
To build supportive domestic narratives, perceptions must be reciprocal. Partners in Europe and North America need to update outdated impressions of Indonesia as a passive commodity exporter. This is a G20 economy with a fast-growing tech sector and clear industrial policy goals. Conversely, Indonesia must frame Australia, Canada, and the EU not as donors or mere buyers but as collaborators in industrial upgrading and shared prosperity.
The narrative gaps extend beyond commerce. The parallel decline of Indonesian language studies in Australian universities during IA-CEPA’s rollout (2020–25) was a telling warning. Economic partnership without cultural familiarity risks becoming purely transactional. Lasting coordination requires a bedrock of public understanding.
To avoid past mistakes, narrative strategy must be embedded in economic diplomacy from the outset. Three shifts are critical. Lowy Institute
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Opinion: Where to find the olive oil of the tropics
WHEN people think of healthy oils, olive oil usually comes to mind. It is the star of the Mediterranean diet, praised for lowering cholesterol and protecting the heart. But here in the tropics, another oil quietly plays a similar role: palm olein, the liquid fraction of palm oil. Could this be the “olive oil of the tropics”?
The answer lies in a fascinating piece of biochemistry known as the SN-2 hypothesis. It may sound technical, but the idea is simple: the way fatty acids are arranged on the oil molecule matters for how our bodies absorb and use them.
The science made simple
Every cooking oil is made up of triglycerides — three fatty acids attached to a glycerol backbone. Imagine a three-pronged fork, with each prong holding a fatty acid. Scientists call these prongs SN-1, SN-2, and SN-3.
When we digest fat, enzymes snip off the fatty acids at SN-1 and SN-3. The one at SN-2 stays intact and is absorbed directly. That means the fatty acid sitting in the SN-2 position has a special influence on our blood cholesterol and overall metabolism.
Here’s the twist:
In animal fats like butter and lard, the SN-2 position is often occupied by palmitic acid, a saturated fat suspected of raising LDL cholesterol.
In olive oil, the SN-2 position is occupied by oleic acid, a monounsaturated fat that is heart-friendly.
In palm olein, surprisingly, the SN-2 position is also occupied by oleic acid.
So although palm olein contains saturated fat overall, its structure makes it behave more like olive oil than butter. That is the essence of the SN-2 hypothesis.
Malaysia’s scientific contribution
This discovery was first highlighted by Malaysian scientists led by Tan Sri Augustine Ong, who championed the idea that palm olein’s molecular structure explained its unexpectedly benign effects on cholesterol. Later, international researchers confirmed the insight: P Lucci in Italy and Welma Stonehouse in Australia both published clinical studies showing palm olein’s metabolic behaviour mirrors olive oil.
Between 1992 and 2017, nine controlled clinical trials across Malaysia, Australia, India, China, Denmark and Italy, compared palm olein with olive oil, canola oil, and groundnut oil. The results were consistent: palm olein performed on par with these unsaturated oils, showing no elevation of LDL cholesterol. In other words, palm olein did not behave like animal fats — it behaved like olive oil.
For Malaysia, this was a quiet triumph. It meant that a home-grown tropical oil could stand shoulder to shoulder with the Mediterranean’s most celebrated fat.
Why don’t we hear about this?
Despite decades of evidence, the findings remain little known. Part of the reason is perception: palm oil is often discussed in the context of environmental debates, while nutrition science gets overshadowed. Another reason is marketing — olive oil enjoys centuries of cultural prestige and strong branding, while palm olein is sold as a humble, everyday cooking oil.
The result is a gap between science and public awareness. Many consumers still assume palm oil is “bad” simply because it contains saturated fat, without realising that its molecular structure changes how the body responds.
Price and practicality
In Malaysia today, the price difference is striking:
Extra virgin olive oil (EVOO): RM72.50/kg
Pure olive oil: RM70.95/kg
Palm olein: RM6.90/kg
EVOO is prized for its fruity, grassy, or nutty aroma, with a complex taste balancing bitter, peppery, and sometimes sweet notes. It shines in salads, dips, and low-heat cooking. Pure olive oil, a blend of refined olive oil with 10% to 15% EVOO, has a milder flavour and is suitable for frying and baking.
Palm olein, by contrast, is bland — yet versatile. It works as a salad oil, but its real strength lies in frying and deep-frying. Thanks to its oxidative stability, palm olein lasts longer in the wok or fryer, making it a practical choice for tropical kitchens.
For families who do not need the aroma of EVOO, palm olein offers a wise financial alternative without sacrificing health.
Why this matters for you
For those who want to make informed choices, the message is clear:
Not all saturated fats are equal. The position of fatty acids in the oil molecule changes how they affect health.
Palm olein is different from butter. Thanks to its SN-2 oleic acid, it behaves more like olive oil in digestion.
Practical choices count. In tropical kitchens, using palm olein instead of animal fats can be a step towards better heart health.
Palm olein is a smart choice, with its molecular structure giving it olive-oil-like benefits. Like all oils, it should be used in moderation. But it does mean we should look beyond simple labels of “good” and “bad” fats.
Conclusion
So, do you know where to find the olive oil of the tropics? The answer may be closer than you think — right in the bottle of palm olein on your kitchen shelf.
Palm olein is not identical to olive oil, but its unique structure makes it more heart-friendly than many assume. By understanding the SN-2 hypothesis, we can appreciate the science behind our everyday cooking oil and make smarter choices for our health.
The story of palm olein reminds us that nutrition science is not just about broad dietary patterns. Sometimes, the details hidden in a molecule can change the way we see the food on our plate.
Qua Kiat Seng is an adjunct senior lecturer at Monash University Malaysia and has more than 50 years of experience in the oils and fats industry. The Edge
December 22, 2025
EU sustainability curbs risk diverting palm oil exports says experts
KUALA LUMPUR: Growing pressure from global sustainability requirements, including new regulations introduced by the European Union (EU), may prompt some palm oil producers to divert exports to markets with more lenient standards.
French Agricultural Research Centre for International Development (CIRAD) Southeast Asia regional director Professor Alain Rival said this trend could undermine ongoing efforts to strengthen certification compliance.
"The rising cost and complexity of compliance could also force smallholders out of sustainable certification systems," he said at the Malaysian Palm Oil Board (MPOB) International Palm Oil Congress and Exhibition (PIPOC 2025) recently.
Rival, who participated in the early discussions leading to the formation of the Roundtable on Sustainable Palm Oil (RSPO), cautioned that overly stringent rules and escalating compliance costs may push producers towards countries that continue to accept palm oil without complex conditions.
"If regulations are too strict and the cost is too high, the industry will shift to other markets such as China or India, which still accept palm oil without complicated requirements," he said.
He noted that RSPO certification costs ranging from 50 to 70 euros (RM238 to RM334) per hectare pose a heavy burden on smallholders operating with very slim profit margins.
While certification delivers clear environmental benefits and improves field efficiency, Rival said authorities must ensure the requirements remain within the financial capacity of smaller producers.
"As audit costs, geolocation tracking, and documentation requirements increase, some will inevitably exit the certification scheme," he said.
Rival warned of the emerging risk of a dual global trading system, certified palm oil for premium markets and uncertified palm oil for countries that do not impose strict sustainability conditions.
"This situation weakens our collective efforts to build a more sustainable industry. As long as there is room for a more lenient market, producers will naturally be drawn to it," he said.
Rival also highlighted the persistent issue of counterfeit seeds, with impacts only detected four to five years later when trees reach maturity, a major setback for smallholders.
He outlined two major long-term challenges expected to shape the industry over the next decade which include climate change and labour shortages.
Extreme weather events and El Nino can significantly reduce yields, while labour crises across producing countries call for shifts in wage structures and employment conditions.
"If the sector wants to remain attractive, wages must become more competitive. The industry can no longer rely on a low-cost labour model," he added. NST
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CPOPC Announces Results of the 13th Ministerial Meeting in Kuala Lumpur
Kuala Lumpur, SAWIT INDONESIA – The 13th Ministerial Meeting of the Council of Palm Oil Producing Countries (CPOPC) was held on 17 December 2025 in Kuala Lumpur, Malaysia, under the chairmanship of YBhg. Dato’ Yusran Shah bin Mohd Yusof on behalf of the Minister of Plantation and Commodities of Malaysia.
The Meeting was also attended by Honourable Dida Gardera on behalf of Coordinating Minister for Economic Affairs of Indonesia; Honourable Francis Galia Maneke, Minister for Oil Palm of the Independent State of Papua New Guinea; Mr. Josue Nzangi Kambale, Advisor to the Minister, Ministry of Agriculture and Food Security Democratic Republic of the Congo (DRC); and online by Her Excellency Laura Suazo, PhD, Minister of Agriculture and Livestock of Honduras.
Representatives of observer countries, Dr. Andrews Osei Okrah, Chief Executive Officer, Tree Crops Development Authority, Ghana; Dr. Alphonsus Inyang, President National Palm Produce Association of Nigeria (NPPAN), Nigeria; Mr. Juan Carlos Moreno Gutierrez, Charge d’ Affaires, Embassy of Colombia in Kuala Lumpur; together with the representatives of guest countries, Her Excellency Madam Daniella Ortega De Paiva Menezes, Ambassador of Brazil to Malaysia attended the Meeting. The growing number of participants reflects growing international interest in creating a platform for solidarity and collective action among palm oil–producing countries through CPOPC. The meeting welcomed CPOPC’s progress with Ghana and Nigeria toward full membership, and growing interest from Ecuador, Peru, and Costa Rica, which together enhance CPOPC’s global representation.
The Meeting commended CPOPC for strengthening global visibility through active engagement in international and regional platforms. Participation in the United Nations ECOSOC High-Level Political Forum 2025 is a milestone for showcasing palm oil’s contributions to gender equality, rural development, and economic growth. In addition, engagements with the World Bank, ASEAN, the International Food Policy Research Institute, and the Global Biofuel Alliance, further reinforce CPOPC’s role in global discussions. Sawit Indonesia
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Government working with farmers’ interests as top priority: PM Modi
Prime Minister Narendra Modi has said, in building a developed India, the nation’s farmers and annadatas have a crucial role and the government is working with farmers’ interests as the top priority. He said farmer-friendly schemes are being extended to all. The Prime Minister was speaking after laying the foundation stone of Ammonia-Urea Fertilizer Project at Namrup in Dibrugarh, Assam on Sunday. The facility will have an annual urea production capacity of 12.7 lakh metric tonnes and the project is scheduled for commissioning in 2030.
Stressing the importance of ensuring a steady supply of fertilizers the Prime Minister said, a new urea plant will soon secure this supply for the nation’s farmers. He said, with production taking place locally, supply will be faster and logistic costs will be reduced.
Emphasising that the Namrup plant will generate thousands of new opportunities for recruitment and self-employment, Mr Modi said, associated work such as repair, supply and other related activities will also provide jobs to the youth. He, however, cautioned farmers against spraying urea uncontrollably to get higher yields, as it affects the soil quality.
The PM also said, the Centre’s palm oil mission will make the northeast self-sufficient in edible oil, and increase farmers’ income in the coming days.
On the second day of his visit to Assam, the Prime Minister also interacted with students during a ‘Pariksha Pe Charcha’ programme aboard a cruise ship on the Brahmaputra River.
The Prime Minister also visited the newly constructed Swahid Smarak Kshetra at Boragaon in Guwahati in memory of 860 martyrs of Assam Movement to pay tribute to the martyrs. GOV.IN
EU sustainability curbs risk diverting palm oil exports says experts
KUALA LUMPUR: Growing pressure from global sustainability requirements, including new regulations introduced by the European Union (EU), may prompt some palm oil producers to divert exports to markets with more lenient standards.
French Agricultural Research Centre for International Development (CIRAD) Southeast Asia regional director Professor Alain Rival said this trend could undermine ongoing efforts to strengthen certification compliance.
"The rising cost and complexity of compliance could also force smallholders out of sustainable certification systems," he said at the Malaysian Palm Oil Board (MPOB) International Palm Oil Congress and Exhibition (PIPOC 2025) recently.
Rival, who participated in the early discussions leading to the formation of the Roundtable on Sustainable Palm Oil (RSPO), cautioned that overly stringent rules and escalating compliance costs may push producers towards countries that continue to accept palm oil without complex conditions.
"If regulations are too strict and the cost is too high, the industry will shift to other markets such as China or India, which still accept palm oil without complicated requirements," he said.
He noted that RSPO certification costs ranging from 50 to 70 euros (RM238 to RM334) per hectare pose a heavy burden on smallholders operating with very slim profit margins.
While certification delivers clear environmental benefits and improves field efficiency, Rival said authorities must ensure the requirements remain within the financial capacity of smaller producers.
"As audit costs, geolocation tracking, and documentation requirements increase, some will inevitably exit the certification scheme," he said.
Rival warned of the emerging risk of a dual global trading system, certified palm oil for premium markets and uncertified palm oil for countries that do not impose strict sustainability conditions.
"This situation weakens our collective efforts to build a more sustainable industry. As long as there is room for a more lenient market, producers will naturally be drawn to it," he said.
Rival also highlighted the persistent issue of counterfeit seeds, with impacts only detected four to five years later when trees reach maturity, a major setback for smallholders.
He outlined two major long-term challenges expected to shape the industry over the next decade which include climate change and labour shortages.
Extreme weather events and El Nino can significantly reduce yields, while labour crises across producing countries call for shifts in wage structures and employment conditions.
"If the sector wants to remain attractive, wages must become more competitive. The industry can no longer rely on a low-cost labour model," he added. NST
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CPOPC Announces Results of the 13th Ministerial Meeting in Kuala Lumpur
Kuala Lumpur, SAWIT INDONESIA – The 13th Ministerial Meeting of the Council of Palm Oil Producing Countries (CPOPC) was held on 17 December 2025 in Kuala Lumpur, Malaysia, under the chairmanship of YBhg. Dato’ Yusran Shah bin Mohd Yusof on behalf of the Minister of Plantation and Commodities of Malaysia.
The Meeting was also attended by Honourable Dida Gardera on behalf of Coordinating Minister for Economic Affairs of Indonesia; Honourable Francis Galia Maneke, Minister for Oil Palm of the Independent State of Papua New Guinea; Mr. Josue Nzangi Kambale, Advisor to the Minister, Ministry of Agriculture and Food Security Democratic Republic of the Congo (DRC); and online by Her Excellency Laura Suazo, PhD, Minister of Agriculture and Livestock of Honduras.
Representatives of observer countries, Dr. Andrews Osei Okrah, Chief Executive Officer, Tree Crops Development Authority, Ghana; Dr. Alphonsus Inyang, President National Palm Produce Association of Nigeria (NPPAN), Nigeria; Mr. Juan Carlos Moreno Gutierrez, Charge d’ Affaires, Embassy of Colombia in Kuala Lumpur; together with the representatives of guest countries, Her Excellency Madam Daniella Ortega De Paiva Menezes, Ambassador of Brazil to Malaysia attended the Meeting. The growing number of participants reflects growing international interest in creating a platform for solidarity and collective action among palm oil–producing countries through CPOPC. The meeting welcomed CPOPC’s progress with Ghana and Nigeria toward full membership, and growing interest from Ecuador, Peru, and Costa Rica, which together enhance CPOPC’s global representation.
The Meeting commended CPOPC for strengthening global visibility through active engagement in international and regional platforms. Participation in the United Nations ECOSOC High-Level Political Forum 2025 is a milestone for showcasing palm oil’s contributions to gender equality, rural development, and economic growth. In addition, engagements with the World Bank, ASEAN, the International Food Policy Research Institute, and the Global Biofuel Alliance, further reinforce CPOPC’s role in global discussions. Sawit Indonesia
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Government working with farmers’ interests as top priority: PM Modi
Prime Minister Narendra Modi has said, in building a developed India, the nation’s farmers and annadatas have a crucial role and the government is working with farmers’ interests as the top priority. He said farmer-friendly schemes are being extended to all. The Prime Minister was speaking after laying the foundation stone of Ammonia-Urea Fertilizer Project at Namrup in Dibrugarh, Assam on Sunday. The facility will have an annual urea production capacity of 12.7 lakh metric tonnes and the project is scheduled for commissioning in 2030.
Stressing the importance of ensuring a steady supply of fertilizers the Prime Minister said, a new urea plant will soon secure this supply for the nation’s farmers. He said, with production taking place locally, supply will be faster and logistic costs will be reduced.
Emphasising that the Namrup plant will generate thousands of new opportunities for recruitment and self-employment, Mr Modi said, associated work such as repair, supply and other related activities will also provide jobs to the youth. He, however, cautioned farmers against spraying urea uncontrollably to get higher yields, as it affects the soil quality.
The PM also said, the Centre’s palm oil mission will make the northeast self-sufficient in edible oil, and increase farmers’ income in the coming days.
On the second day of his visit to Assam, the Prime Minister also interacted with students during a ‘Pariksha Pe Charcha’ programme aboard a cruise ship on the Brahmaputra River.
The Prime Minister also visited the newly constructed Swahid Smarak Kshetra at Boragaon in Guwahati in memory of 860 martyrs of Assam Movement to pay tribute to the martyrs. GOV.IN
December 21, 2025
Indonesia calls in military to help clear forests at rapid pace
Deforestation under way on 3mn hectares for state-backed food project
Indonesia is clearing forests at a rapid pace with military assistance in one of its most biodiverse regions for a state-backed agricultural project, even as recent fatal floods have illustrated the dangers of deforestation.
Billed as a project to ensure the fourth most populous nation’s food and energy security, Indonesia is planning to cultivate rice and sugar on 3mn hectares in the eastern province of Papua. The area covers a mix of primary forests, grasslands, woodlands and wetlands.
It will ultimately be five times the size of London and bring irreversible environmental consequences, worsen greenhouse gas emissions and reverse the south-east Asian country’s progress over the past decade in slowing deforestation for palm oil production.
A former general is overseeing the project, and five battalions have been placed in Papua to support the government’s food security initiatives in the province.
Residents and local activists say soldiers are involved in the clearing of forests and eviction of residents, in addition to providing security. Some soldiers have posted videos on TikTok posing with excavators and regular patrols.
Military posts have also been set up near food estate developments, according to the residents and satellite imagery analysed by the FT.
“Since the clearing of the forest, the military has been actively involved,” said Ariston Moiwen, a resident in the South Papua town of Merauke, whose family land has been taken over for rice cultivation. “The military operates the heavy equipment too,” said Ariston, who still lives nearby.
Between May 2024 and November 2025, more than 40,000 hectares of land were cleared, according to a Financial Times analysis of satellite imagery.
While a fraction of the total being razed, the pace has been swift. Most of the land cleared so far is being prepared for sugarcane, which will also be used to produce bioethanol. Financial Times
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"We Are Just as Big": Indonesian President Prabowo Compares Indonesia to Europe
TEMPO.CO, Jakarta - President Prabowo Subianto said Indonesia is as vast as Europe, from London in the west to Moscow in the east.
The head of state delivered the statement while attending the mass signing of 50,030 subsidized housing units through home loan (KPR) under the Housing Financing Liquidity Facility (FLPP) program, which are distributed across 33 provinces in Indonesia on Saturday, December 20, 2025.
Indonesia is even longer than the United States, Prabowo emphasized. "We span three time zones. Our territory spans as wide as from London to Moscow in Europe," Prabowo said as quoted from the Presidential Secretariat's YouTube channel, on Saturday, December 20, 2025.
Besides, Indonesia's population is on par with that of Western Europe, Prabowo said.
"They have 27 Finance Ministers, 27 Attorneys General, 27 Military Commanders, 27 Police Chiefs, 27 Bappenas (National Development Planning Agency), 27 Central Banks. Meanwhile, we only have one," he said, referring to members of the European Union.
Prabowo also expressed gratitude for Indonesia's 80 years of unity despite the reputation of being a diverse nation, with hundreds of ethnic groups and 718 regional languages, excluding the dialects. "There is a region in Papua with 17 valleys, and each valley speaks a different language," he said.
Prabowo then addressed various difficulties faced by Indonesia, reflecting on history. He spoke about various nations colonizing the newly emerging Indonesia, including Japan, England, and the Netherlands. And this newly independent country, he said, live different factions with their own ideologies, like communist or religious.
"We are fortunate that, due to our capable leaders at the time, youths from different groups, were able to unite. We had just finished reclaiming sovereignty but were disturbed and intervened continuously. This is not something I invented; this is history,
he said.
Prabowo went on to talk about how the Netherlands attempted to seize Indonesia's sovereignty through the Legion of the Just Ruler (Angkatan Perang Ratu Adil, or APRA) led by Westerling. "Westerling attempted to kill the leaders of the Republic, take over. This is history. Then there are separatists after separatists," he said.
According to him, the Indonesian people are not aware of the vastness and richness of their own country. Nevertheless, there are parties who dislike big countries like Indonesia, hence the constant disturbance. "I'm talking about this because our goal as a nation is for the people who reside in Indonesia Nusantara to live prosperously. Our independence goal is for the people to prosper," said Prabowo. Tempo
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Palm oil mission NMEO-OP will make northeast self-sufficient in edible oil, increase farmers' income: PM Modi at rally in Assam's Dibrugarh.
This initiative aims to enhance farmer incomes, foster rural economy, and promote agricultural innovation. The project promises self-employment opportunities and serves as a model for agriculture-based entrepreneurship, supported by various state schemes. Dev Discourse
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Senegal launches $191.7m agro-industrial zone to cut food imports and boost local processing
Senegal has launched a $191.7 million agro-industrial processing zone aimed at strengthening food sovereignty, creating jobs and reducing the country’s heavy reliance on food imports. The Agropole Centre, unveiled on December 16 in the central part of the country, is financed by the Senegalese state with support from the African Development Bank, the Islamic Development Bank and Belgium’s Enabel. It targets agricultural value chains that dominate rural livelihoods but have long remained trapped at low levels of processing, limiting incomes and exposing the country to external food shocks.
Read also: Ghana bans mining in forest reserves, testing the future of environmental enforcement
The project is located across the regions of Kaolack, Kaffrine, Fatick and Diourbel, an area often described as Senegal’s agricultural heartland. These regions produce large volumes of peanuts, millet, maize, sorghum and salt, yet most of these products leave farms in raw form. Until now, processing rates have remained modest, with cereals processed locally at about 6 percent and peanuts at roughly 15 percent. Under the Agropole Centre plan, authorities say cereal processing should rise to 30 percent, peanuts to 50 percent and salt to 30 percent once facilities are fully operational.
The scale of the ambition reflects pressures Senegal has faced in recent years. Rising global food prices following the COVID-19 pandemic and the war in Ukraine exposed how dependent the country remains on imported staples. Between 2021 and 2023, Senegal imported food worth an average of $1.88 billion annually, according to UNCTAD figures, making it the second-largest food importer in the West African Economic and Monetary Union. Africa Sustainability Matters
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Cameroon: Standard Chartered Finalizes $86M Loan to Boost CDC’s Agro-Industry
The conclusion of this borrowing was authorized by President Paul Biya on September 25, 2025, paving the way for the final agreement with the British bank. However, the specific financial terms of the loan—including interest rates, maturity, and grace periods—have not been made public. The project is led by the CDC, a strategic state-owned agro-industrial company specializing in export crops such as oil palm, rubber, and bananas.
Crucially, the financing model relies on the fact that the goods produced will be sold on international markets, generating the necessary hard currency to service the debt. This export-backed mechanism is a central element of the project's financial sustainability, particularly given the authorities' increased vigilance regarding public debt.
The investment comes at a time of mixed signals in the rubber market. Despite recent price volatility driven by fluctuating Asian demand and competition from synthetic rubber, medium-to-long-term perspectives remain positive. The gradual recovery of the global automotive industry and growing tire demand in Asia and Africa support the market for natural rubber. For Cameroon, local processing represents a strategic lever to create value-added products and reduce reliance on raw exports.
Beyond this agricultural deal, Standard Chartered held two other loan authorizations signed with the State of Cameroon as of September 20, 2025, which have not yet been concluded. The first is a 15 billion FCFA ($25 million) financing guaranteed by UK Export Finance for healthcare infrastructure, authorized in July 2025, intended for a gastro-pneumological hospital in Yaoundé and a psychiatric hospital in Mfou.
The second, authorized in August 2023, is a 130.4 billion FCFA ($217 million) loan for the strategic Ebolowa–Akom II–Ebolowa road connecting the south to the Kribi deep-sea port. With the finalization of the CDC financing, Cameroon's debt exposure to Standard Chartered increases by approximately 23 billion FCFA ($38 million), reinforcing the British institution's position among the country's key bilateral financial partners. Ecofin Agency
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Sarawak Dayak Oil Palm Planters Association (Doppa) seek SST, labour policy reform to address rising costs and outdated regulations
KUCHING (Dec 21): The Sarawak Dayak Oil Palm Planters Association (Doppa) has called for urgent reforms to key state and labour policies, warning that rising costs and outdated regulations are undermining the competitiveness and sustainability of Sarawak’s oil palm industry, particularly among independent smallholders.
Doppa in a statement urged the state government to review the Sarawak Sales Tax (SST) framework and the Foreign Workers Transformation Approach (FWTA), saying both policies must be recalibrated to reflect current economic realities and operational challenges faced by growers.
Its president Dr Napolean R Ningkos said the existing SST thresholds no longer correspond with today’s production costs and market prices, placing an increasing financial burden on planters.
According to figures from the Malaysian Estate Owners Association (MEOA), Sarawak’s oil palm industry generated RM886 million in SST revenue in 2024, from the production of 4.17 million metric tonnes of crude palm oil (CPO) and 380,332 metric tonnes of crude palm kernel oil (CPKO).
Currently, SST is imposed at 2.5 per cent on CPO when prices exceed RM1,000 per tonne, and five per cent on CPKO when prices go beyond RM1,500 per tonne.
However, Napolean noted that average market prices in 2024 stood at RM4,172 per tonne for CPO and RM5,475 per tonne for CPKO — far above thresholds set more than two decades ago.
“The SST was introduced in 1998 when production costs were about RM750 per tonne. Today, costs have risen to between RM2,800 and RM3,000 per tonne due to higher input prices, labour expenses and administrative costs,” he said.
“The threshold values must be revised to align with current realities.”
Doppa proposed that the state consider a mechanism similar to the federal windfall profit levy and exempt independent smallholders from SST to ease financial pressure on smaller operators.
The association also raised serious concerns over labour-related costs following the introduction of the FWTA, which imposes a new fee of RM1,854 per foreign worker.
Napolean said the additional charge would further strain smallholders already grappling with rising operational expenses.
Compounding the issue, he highlighted problems arising from the transition from the Monitoring System on the Employment of Non-Sarawakian (MSEN) to the Sarawak Advanced Non-Sarawakian Online Labour System (SANSOLS).
Under the current arrangement, foreign workers previously registered under MSEN are required to return to their home countries, mainly Indonesia, to re-register under SANSOLS when renewing work permits.
“This requirement is unnecessary, costly and disruptive,” he said, noting that it leads to additional travel and recruitment expenses, delays in permit renewals and potential labour shortages.
Doppa has urged the state government to allow direct transfer of worker data from MSEN to SANSOLS to streamline the renewal process, reduce costs and ensure workforce continuity.
The association also called on the government to utilise SST revenue to fund the maintenance and enhancement of industry systems and infrastructure, rather than introducing new charges to the sector.
“With the oil palm industry subject to multiple levies — including the windfall profit levy, Malaysian Palm Oil Board cess, SST and corporate tax — cumulative taxation is weighing heavily on stakeholders, particularly smallholder farmers,” Napolean said.
“The oil palm sector remains a key pillar of Sarawak’s economy, supporting employment and rural development. Policy reforms are essential to safeguard its long-term sustainability and competitiveness,” he added. The Borneo Post
Indonesia calls in military to help clear forests at rapid pace
Deforestation under way on 3mn hectares for state-backed food project
Indonesia is clearing forests at a rapid pace with military assistance in one of its most biodiverse regions for a state-backed agricultural project, even as recent fatal floods have illustrated the dangers of deforestation.
Billed as a project to ensure the fourth most populous nation’s food and energy security, Indonesia is planning to cultivate rice and sugar on 3mn hectares in the eastern province of Papua. The area covers a mix of primary forests, grasslands, woodlands and wetlands.
It will ultimately be five times the size of London and bring irreversible environmental consequences, worsen greenhouse gas emissions and reverse the south-east Asian country’s progress over the past decade in slowing deforestation for palm oil production.
A former general is overseeing the project, and five battalions have been placed in Papua to support the government’s food security initiatives in the province.
Residents and local activists say soldiers are involved in the clearing of forests and eviction of residents, in addition to providing security. Some soldiers have posted videos on TikTok posing with excavators and regular patrols.
Military posts have also been set up near food estate developments, according to the residents and satellite imagery analysed by the FT.
“Since the clearing of the forest, the military has been actively involved,” said Ariston Moiwen, a resident in the South Papua town of Merauke, whose family land has been taken over for rice cultivation. “The military operates the heavy equipment too,” said Ariston, who still lives nearby.
Between May 2024 and November 2025, more than 40,000 hectares of land were cleared, according to a Financial Times analysis of satellite imagery.
While a fraction of the total being razed, the pace has been swift. Most of the land cleared so far is being prepared for sugarcane, which will also be used to produce bioethanol. Financial Times
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"We Are Just as Big": Indonesian President Prabowo Compares Indonesia to Europe
TEMPO.CO, Jakarta - President Prabowo Subianto said Indonesia is as vast as Europe, from London in the west to Moscow in the east.
The head of state delivered the statement while attending the mass signing of 50,030 subsidized housing units through home loan (KPR) under the Housing Financing Liquidity Facility (FLPP) program, which are distributed across 33 provinces in Indonesia on Saturday, December 20, 2025.
Indonesia is even longer than the United States, Prabowo emphasized. "We span three time zones. Our territory spans as wide as from London to Moscow in Europe," Prabowo said as quoted from the Presidential Secretariat's YouTube channel, on Saturday, December 20, 2025.
Besides, Indonesia's population is on par with that of Western Europe, Prabowo said.
"They have 27 Finance Ministers, 27 Attorneys General, 27 Military Commanders, 27 Police Chiefs, 27 Bappenas (National Development Planning Agency), 27 Central Banks. Meanwhile, we only have one," he said, referring to members of the European Union.
Prabowo also expressed gratitude for Indonesia's 80 years of unity despite the reputation of being a diverse nation, with hundreds of ethnic groups and 718 regional languages, excluding the dialects. "There is a region in Papua with 17 valleys, and each valley speaks a different language," he said.
Prabowo then addressed various difficulties faced by Indonesia, reflecting on history. He spoke about various nations colonizing the newly emerging Indonesia, including Japan, England, and the Netherlands. And this newly independent country, he said, live different factions with their own ideologies, like communist or religious.
"We are fortunate that, due to our capable leaders at the time, youths from different groups, were able to unite. We had just finished reclaiming sovereignty but were disturbed and intervened continuously. This is not something I invented; this is history,
he said.
Prabowo went on to talk about how the Netherlands attempted to seize Indonesia's sovereignty through the Legion of the Just Ruler (Angkatan Perang Ratu Adil, or APRA) led by Westerling. "Westerling attempted to kill the leaders of the Republic, take over. This is history. Then there are separatists after separatists," he said.
According to him, the Indonesian people are not aware of the vastness and richness of their own country. Nevertheless, there are parties who dislike big countries like Indonesia, hence the constant disturbance. "I'm talking about this because our goal as a nation is for the people who reside in Indonesia Nusantara to live prosperously. Our independence goal is for the people to prosper," said Prabowo. Tempo
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Palm oil mission NMEO-OP will make northeast self-sufficient in edible oil, increase farmers' income: PM Modi at rally in Assam's Dibrugarh.
This initiative aims to enhance farmer incomes, foster rural economy, and promote agricultural innovation. The project promises self-employment opportunities and serves as a model for agriculture-based entrepreneurship, supported by various state schemes. Dev Discourse
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Senegal launches $191.7m agro-industrial zone to cut food imports and boost local processing
Senegal has launched a $191.7 million agro-industrial processing zone aimed at strengthening food sovereignty, creating jobs and reducing the country’s heavy reliance on food imports. The Agropole Centre, unveiled on December 16 in the central part of the country, is financed by the Senegalese state with support from the African Development Bank, the Islamic Development Bank and Belgium’s Enabel. It targets agricultural value chains that dominate rural livelihoods but have long remained trapped at low levels of processing, limiting incomes and exposing the country to external food shocks.
Read also: Ghana bans mining in forest reserves, testing the future of environmental enforcement
The project is located across the regions of Kaolack, Kaffrine, Fatick and Diourbel, an area often described as Senegal’s agricultural heartland. These regions produce large volumes of peanuts, millet, maize, sorghum and salt, yet most of these products leave farms in raw form. Until now, processing rates have remained modest, with cereals processed locally at about 6 percent and peanuts at roughly 15 percent. Under the Agropole Centre plan, authorities say cereal processing should rise to 30 percent, peanuts to 50 percent and salt to 30 percent once facilities are fully operational.
The scale of the ambition reflects pressures Senegal has faced in recent years. Rising global food prices following the COVID-19 pandemic and the war in Ukraine exposed how dependent the country remains on imported staples. Between 2021 and 2023, Senegal imported food worth an average of $1.88 billion annually, according to UNCTAD figures, making it the second-largest food importer in the West African Economic and Monetary Union. Africa Sustainability Matters
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Cameroon: Standard Chartered Finalizes $86M Loan to Boost CDC’s Agro-Industry
- Standard Chartered finalized a FCFA 51.7 billion ($86 million) loan to build rubber and palm oil factories for the state-owned CDC.
- Repayment is secured by future export revenues, ensuring financial sustainability amidst scrutiny over public debt levels.
- The bank also holds pending authorizations for healthcare projects and the strategic Ebolowa-Kribi road infrastructure.
The conclusion of this borrowing was authorized by President Paul Biya on September 25, 2025, paving the way for the final agreement with the British bank. However, the specific financial terms of the loan—including interest rates, maturity, and grace periods—have not been made public. The project is led by the CDC, a strategic state-owned agro-industrial company specializing in export crops such as oil palm, rubber, and bananas.
Crucially, the financing model relies on the fact that the goods produced will be sold on international markets, generating the necessary hard currency to service the debt. This export-backed mechanism is a central element of the project's financial sustainability, particularly given the authorities' increased vigilance regarding public debt.
The investment comes at a time of mixed signals in the rubber market. Despite recent price volatility driven by fluctuating Asian demand and competition from synthetic rubber, medium-to-long-term perspectives remain positive. The gradual recovery of the global automotive industry and growing tire demand in Asia and Africa support the market for natural rubber. For Cameroon, local processing represents a strategic lever to create value-added products and reduce reliance on raw exports.
Beyond this agricultural deal, Standard Chartered held two other loan authorizations signed with the State of Cameroon as of September 20, 2025, which have not yet been concluded. The first is a 15 billion FCFA ($25 million) financing guaranteed by UK Export Finance for healthcare infrastructure, authorized in July 2025, intended for a gastro-pneumological hospital in Yaoundé and a psychiatric hospital in Mfou.
The second, authorized in August 2023, is a 130.4 billion FCFA ($217 million) loan for the strategic Ebolowa–Akom II–Ebolowa road connecting the south to the Kribi deep-sea port. With the finalization of the CDC financing, Cameroon's debt exposure to Standard Chartered increases by approximately 23 billion FCFA ($38 million), reinforcing the British institution's position among the country's key bilateral financial partners. Ecofin Agency
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Sarawak Dayak Oil Palm Planters Association (Doppa) seek SST, labour policy reform to address rising costs and outdated regulations
KUCHING (Dec 21): The Sarawak Dayak Oil Palm Planters Association (Doppa) has called for urgent reforms to key state and labour policies, warning that rising costs and outdated regulations are undermining the competitiveness and sustainability of Sarawak’s oil palm industry, particularly among independent smallholders.
Doppa in a statement urged the state government to review the Sarawak Sales Tax (SST) framework and the Foreign Workers Transformation Approach (FWTA), saying both policies must be recalibrated to reflect current economic realities and operational challenges faced by growers.
Its president Dr Napolean R Ningkos said the existing SST thresholds no longer correspond with today’s production costs and market prices, placing an increasing financial burden on planters.
According to figures from the Malaysian Estate Owners Association (MEOA), Sarawak’s oil palm industry generated RM886 million in SST revenue in 2024, from the production of 4.17 million metric tonnes of crude palm oil (CPO) and 380,332 metric tonnes of crude palm kernel oil (CPKO).
Currently, SST is imposed at 2.5 per cent on CPO when prices exceed RM1,000 per tonne, and five per cent on CPKO when prices go beyond RM1,500 per tonne.
However, Napolean noted that average market prices in 2024 stood at RM4,172 per tonne for CPO and RM5,475 per tonne for CPKO — far above thresholds set more than two decades ago.
“The SST was introduced in 1998 when production costs were about RM750 per tonne. Today, costs have risen to between RM2,800 and RM3,000 per tonne due to higher input prices, labour expenses and administrative costs,” he said.
“The threshold values must be revised to align with current realities.”
Doppa proposed that the state consider a mechanism similar to the federal windfall profit levy and exempt independent smallholders from SST to ease financial pressure on smaller operators.
The association also raised serious concerns over labour-related costs following the introduction of the FWTA, which imposes a new fee of RM1,854 per foreign worker.
Napolean said the additional charge would further strain smallholders already grappling with rising operational expenses.
Compounding the issue, he highlighted problems arising from the transition from the Monitoring System on the Employment of Non-Sarawakian (MSEN) to the Sarawak Advanced Non-Sarawakian Online Labour System (SANSOLS).
Under the current arrangement, foreign workers previously registered under MSEN are required to return to their home countries, mainly Indonesia, to re-register under SANSOLS when renewing work permits.
“This requirement is unnecessary, costly and disruptive,” he said, noting that it leads to additional travel and recruitment expenses, delays in permit renewals and potential labour shortages.
Doppa has urged the state government to allow direct transfer of worker data from MSEN to SANSOLS to streamline the renewal process, reduce costs and ensure workforce continuity.
The association also called on the government to utilise SST revenue to fund the maintenance and enhancement of industry systems and infrastructure, rather than introducing new charges to the sector.
“With the oil palm industry subject to multiple levies — including the windfall profit levy, Malaysian Palm Oil Board cess, SST and corporate tax — cumulative taxation is weighing heavily on stakeholders, particularly smallholder farmers,” Napolean said.
“The oil palm sector remains a key pillar of Sarawak’s economy, supporting employment and rural development. Policy reforms are essential to safeguard its long-term sustainability and competitiveness,” he added. The Borneo Post
December 20, 2025
Malaysia’s palm oil sector will remain stable thanks to the removal of US duties and the deferment of EUDR
Palm oil sector to remain stable in 2025 after relief from crippling US tariffs
Malaysia’s palm oil sector breathed a sigh of relief after being exempted from a 19% import tariff imposed by the United States, maintaining solid momentum this year despite weak external demand and high inventories.
Crude palm oil (CPO) was sold at RM4,089.50 per tonne in November 2025, up from RM5,011.50 in November 2024, but prices are projected to rise to around RM4,500 early next year. As of December 10 this year, the CPO price was RM4,000 per tonne.
Exports have remained stable this year. Production totaled 22.55 million tonnes in the first 11 months of 2025, valued at MYR 103.01 billion, compared to 26.66 million tonnes, valued at MYR 109.39 billion, for the full year 2024.
Palm oil, the country’s largest export commodity, remains the mainstay of the industry, with farm-based fresh fruit bunch (FFB) yields increasing to 14.45 tonnes per hectare in January-October 2025, compared to 13.96 tonnes per hectare in the same period last year.
In the reporting year, production gains were offset by lower external demand, rising inventories, and increased sustainability pressures in key markets, particularly China, as buyers sought cheaper alternatives such as soybean oil.
Weaker demand contributed to domestic inventories rising to more than 2.7 million tonnes, the highest level in six years.
Higher prices caused palm oil supplies to major markets, particularly China, to plummet by nearly 30% in the first 10 months of this year, as buyers turned to comparatively cheaper alternatives such as soybean oil.
The imbalance between high production volumes and slowing overseas purchases continued to weigh on consumer prices, limiting upside potential despite favorable fundamentals in the first half of the year.
Malaysia’s commodity sector faced a turbulent 2025, as US tariff announcements added to ongoing uncertainty, beginning with a 24% tariff announced on April 9 and culminating in reports of a 25% rate from August 1.
A turning point came on October 26 with the signing of the Reciprocal Trade Agreement (ART) during the 47th ASEAN Summit in Kuala Lumpur.
The agreement exempted 1,711 tariff lines, including key exports such as palm oil, from the 19% tariff, covering approximately US$5.2 billion (RMB22 billion) in exports and providing much-needed relief after months of instability.
EUDR deferral, MSPO recognition – further relief for Malaysia
Beyond trade, the commodities sector gained greater market access and improved its global standing in 2025 following key changes to the EU Deforestation Regulation (EUDR) and the recognition of the Malaysian Sustainable Palm Oil Standard (MSPO).
On November 26, the European Parliament approved a one-year deferment for the EUDR. This gives large operators until December 30, 2026, and small businesses until June 30, 2027, to comply, allowing more time for a smoother transition and updating the EU’s digital due diligence system.
The EU’s official recognition of the MSPO on September 10 as a credible and traceable sustainability certification further strengthened Malaysia’s position.
This approval reduces compliance barriers for Malaysian exporters, facilitates smoother trade flows, and cements the country’s leadership in sustainable palm oil production.
Budget Increase and Outlook for 2026
Budget 2026 brought good news for smallholder farmers, as the government allocated funds to modernize agribusiness and support smallholder farmers.
Almost MYR 2.4 billion was announced to protect over 720,000 settlers, smallholders, and their families through the Federal Land Development Authority (FELDA), the Rubber Industry Smallholders Development Authority (RISDA), and the Federal Land Consolidation and Rehabilitation Authority (FELCRA).
Approximately MYR 20 million will be allocated to support start-ups in the production of mechanization and automation equipment, in collaboration with the Malaysian Palm Oil Board and major palm oil companies, to reduce reliance on foreign labor and encourage local innovation.
Looking ahead, the palm oil sector is expected to continue to demonstrate strong potential, albeit in a highly competitive environment, as key industries face export recovery and bullish momentum.
A recovery in soybean oil prices will narrow the significant price gap between these two oils, as a recovery in soybean oil prices will strengthen the sector.
The Palm Oil Council of Malaysia stated that palm oil prices could rise to MYR 4,500 per tonne in 2026, driven by robust import demand ahead of the Lunar New Year and Ramadan, while policy uncertainty in Indonesia continues to support palm oil prices. UKR Agroconsult
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Hidden health benefits of red palm oil
IN recent years, gut health has emerged as a central focus of wellness, with probiotics, fibre-rich foods and fermented products becoming everyday staples. Amid this attention, one common ingredient in Malaysian kitchens has been largely overlooked: palm oil.
New research suggests that, when sourced responsibly and used appropriately, especially in its red or unrefined form, palm oil can play a valuable role in supporting gut health, aiding nutrient absorption, and contributing to overall wellness.
Red palm oil or RPO is nutritionally remarkable because it is rich in fat-soluble bioactive compounds, including carotenoids, which convert to vitamin A, as well as the two main forms of vitamin E, like tocotrienols and tocopherols, and other antioxidants.
According to a 2025 review article, these bioactive compounds, particularly tocotrienols, possess strong antioxidant and anti-inflammatory properties that help mitigate oxidative stress and cellular damage.
Another recent review confirms that palm cooking oil, when consumed as part of a balanced diet, can support heart health, protect the brain and improve absorption of fat-soluble vitamins.
Beyond its antioxidant and heart health benefits, the nutritional profile of RPO supports essential bodily functions.
Vitamin A promotes healthy vision and immune function. Vitamin E protects cells.
Fat-soluble vitamins in general need dietary fat for optimal absorption, which palm oil can provide.
New evidence from a recent study by the Malaysia Palm Oil Board (MPOB) titled, 'Red palm olein biscuit supplementation modulates gut microbiota in vitamin A-deficient rural Malaysian schoolchildren: a randomised controlled trial' highlights the link between red palm oil and gut health.
In this double-blind trial, 328 primary schoolchildren aged 8 to 12 from rural areas, all vitamin A deficient, were given biscuits enriched with red palm olein over six months, four days per week.
Compared with children receiving control biscuits with regular palm olein, those consuming RPO-enriched biscuits had a notable increase in beneficial gut bacteria, including Anaerostipes, UCG 010 and Lachnospiraceae NK4A136 group.
The researchers also observed improvements in micronutrient status, including higher levels of provitamin A carotenoids, vitamin E and better haematological parameters such as packed cell volume and mean corpuscular volume.
Children in the RPO group also showed a more stable and cohesive gut microbial network, indicating improved microbial interactions.
The study concluded that six-month supplementation with RPO-enriched biscuits can positively modulate the gut microbiota of vitamin A-deficient children, increase beneficial bacterial populations and improve nutrient and haematological status.
Experts agree that red palm oil is most beneficial when consumed as part of a balanced diet.
Much of the negative perception of palm oil comes from outdated assumptions that all saturated fats are harmful, or that the antioxidant-rich components in RPO do not matter.
Malaysian regulatory and consumer advocacy organisations have publicly countered these stigmas, noting that typical palm oil consumption is not harmful and that it remains trans-fat free and cholesterol free.
Malaysia continues to lead global research into palm oil nutrition, including its bioactive compounds and health effects.
The MPOB and other scientific bodies can help promote an evidence-based understanding of palm oil's benefits and limitations.
For the average Malaysian, whether preparing nasi lemak for breakfast, cooking sambal for dinner or frying snacks for guests, red palm oil can be embraced as a nutrient-rich and culturally significant oil that, when used as part of a balanced diet, supports gut health, micronutrient sufficiency and general wellbeing.
There remains a need for more large-scale, long-term clinical studies, especially on gut microbiome modulation in adults, metabolic outcomes and interactions with Malaysian dietary patterns.
In the meantime, it is time to reset the palm oil narrative as an under-appreciated ally, especially for a Malaysian diet rich in tradition and flavour. NST
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Researchers find concerning gaps in global maps used for EUDR compliance
The authors write that those inconsistencies point to the need for EU companies to be discerning about which maps they use to ensure they comply with the regulation. The requirements will go into effect for most companies on Dec. 30, 2026, after a second postponement in as many years by the European Parliament.
Only two of the 21 data sets in the assessment met all of the indicators used to assess risk used by the EUDR.
The regulation will apply to seven commodities — cattle, cocoa, coffee, palm oil, rubber, soy and timber — as well as the products they’re used to make. Companies and government agencies are planning to use maps of satellite and other remote-sensing data to determine whether products entering EU countries are linked to deforestation after Dec. 31, 2020, the regulation’s cutoff date.
Importing companies and the EU countries’ government agencies tasked with screening imported goods for compliance will compare georeferenced plots for a commodity with historical maps of forest and tree cover to determine whether it was produced at the expense of recently cleared forest.
But many such maps exist, and the EUDR doesn’t specify the use of any one map. That means that a company using one map to verify compliance might come to a different conclusion about deforestation risk than an EU government agency that uses another map, said study co-author Melvin Lippe, a land system scientist at the Thünen Institute of Forestry in Hamburg, Germany. Mongabay
Malaysia’s palm oil sector will remain stable thanks to the removal of US duties and the deferment of EUDR
Palm oil sector to remain stable in 2025 after relief from crippling US tariffs
Malaysia’s palm oil sector breathed a sigh of relief after being exempted from a 19% import tariff imposed by the United States, maintaining solid momentum this year despite weak external demand and high inventories.
Crude palm oil (CPO) was sold at RM4,089.50 per tonne in November 2025, up from RM5,011.50 in November 2024, but prices are projected to rise to around RM4,500 early next year. As of December 10 this year, the CPO price was RM4,000 per tonne.
Exports have remained stable this year. Production totaled 22.55 million tonnes in the first 11 months of 2025, valued at MYR 103.01 billion, compared to 26.66 million tonnes, valued at MYR 109.39 billion, for the full year 2024.
Palm oil, the country’s largest export commodity, remains the mainstay of the industry, with farm-based fresh fruit bunch (FFB) yields increasing to 14.45 tonnes per hectare in January-October 2025, compared to 13.96 tonnes per hectare in the same period last year.
In the reporting year, production gains were offset by lower external demand, rising inventories, and increased sustainability pressures in key markets, particularly China, as buyers sought cheaper alternatives such as soybean oil.
Weaker demand contributed to domestic inventories rising to more than 2.7 million tonnes, the highest level in six years.
Higher prices caused palm oil supplies to major markets, particularly China, to plummet by nearly 30% in the first 10 months of this year, as buyers turned to comparatively cheaper alternatives such as soybean oil.
The imbalance between high production volumes and slowing overseas purchases continued to weigh on consumer prices, limiting upside potential despite favorable fundamentals in the first half of the year.
Malaysia’s commodity sector faced a turbulent 2025, as US tariff announcements added to ongoing uncertainty, beginning with a 24% tariff announced on April 9 and culminating in reports of a 25% rate from August 1.
A turning point came on October 26 with the signing of the Reciprocal Trade Agreement (ART) during the 47th ASEAN Summit in Kuala Lumpur.
The agreement exempted 1,711 tariff lines, including key exports such as palm oil, from the 19% tariff, covering approximately US$5.2 billion (RMB22 billion) in exports and providing much-needed relief after months of instability.
EUDR deferral, MSPO recognition – further relief for Malaysia
Beyond trade, the commodities sector gained greater market access and improved its global standing in 2025 following key changes to the EU Deforestation Regulation (EUDR) and the recognition of the Malaysian Sustainable Palm Oil Standard (MSPO).
On November 26, the European Parliament approved a one-year deferment for the EUDR. This gives large operators until December 30, 2026, and small businesses until June 30, 2027, to comply, allowing more time for a smoother transition and updating the EU’s digital due diligence system.
The EU’s official recognition of the MSPO on September 10 as a credible and traceable sustainability certification further strengthened Malaysia’s position.
This approval reduces compliance barriers for Malaysian exporters, facilitates smoother trade flows, and cements the country’s leadership in sustainable palm oil production.
Budget Increase and Outlook for 2026
Budget 2026 brought good news for smallholder farmers, as the government allocated funds to modernize agribusiness and support smallholder farmers.
Almost MYR 2.4 billion was announced to protect over 720,000 settlers, smallholders, and their families through the Federal Land Development Authority (FELDA), the Rubber Industry Smallholders Development Authority (RISDA), and the Federal Land Consolidation and Rehabilitation Authority (FELCRA).
Approximately MYR 20 million will be allocated to support start-ups in the production of mechanization and automation equipment, in collaboration with the Malaysian Palm Oil Board and major palm oil companies, to reduce reliance on foreign labor and encourage local innovation.
Looking ahead, the palm oil sector is expected to continue to demonstrate strong potential, albeit in a highly competitive environment, as key industries face export recovery and bullish momentum.
A recovery in soybean oil prices will narrow the significant price gap between these two oils, as a recovery in soybean oil prices will strengthen the sector.
The Palm Oil Council of Malaysia stated that palm oil prices could rise to MYR 4,500 per tonne in 2026, driven by robust import demand ahead of the Lunar New Year and Ramadan, while policy uncertainty in Indonesia continues to support palm oil prices. UKR Agroconsult
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Hidden health benefits of red palm oil
IN recent years, gut health has emerged as a central focus of wellness, with probiotics, fibre-rich foods and fermented products becoming everyday staples. Amid this attention, one common ingredient in Malaysian kitchens has been largely overlooked: palm oil.
New research suggests that, when sourced responsibly and used appropriately, especially in its red or unrefined form, palm oil can play a valuable role in supporting gut health, aiding nutrient absorption, and contributing to overall wellness.
Red palm oil or RPO is nutritionally remarkable because it is rich in fat-soluble bioactive compounds, including carotenoids, which convert to vitamin A, as well as the two main forms of vitamin E, like tocotrienols and tocopherols, and other antioxidants.
According to a 2025 review article, these bioactive compounds, particularly tocotrienols, possess strong antioxidant and anti-inflammatory properties that help mitigate oxidative stress and cellular damage.
Another recent review confirms that palm cooking oil, when consumed as part of a balanced diet, can support heart health, protect the brain and improve absorption of fat-soluble vitamins.
Beyond its antioxidant and heart health benefits, the nutritional profile of RPO supports essential bodily functions.
Vitamin A promotes healthy vision and immune function. Vitamin E protects cells.
Fat-soluble vitamins in general need dietary fat for optimal absorption, which palm oil can provide.
New evidence from a recent study by the Malaysia Palm Oil Board (MPOB) titled, 'Red palm olein biscuit supplementation modulates gut microbiota in vitamin A-deficient rural Malaysian schoolchildren: a randomised controlled trial' highlights the link between red palm oil and gut health.
In this double-blind trial, 328 primary schoolchildren aged 8 to 12 from rural areas, all vitamin A deficient, were given biscuits enriched with red palm olein over six months, four days per week.
Compared with children receiving control biscuits with regular palm olein, those consuming RPO-enriched biscuits had a notable increase in beneficial gut bacteria, including Anaerostipes, UCG 010 and Lachnospiraceae NK4A136 group.
The researchers also observed improvements in micronutrient status, including higher levels of provitamin A carotenoids, vitamin E and better haematological parameters such as packed cell volume and mean corpuscular volume.
Children in the RPO group also showed a more stable and cohesive gut microbial network, indicating improved microbial interactions.
The study concluded that six-month supplementation with RPO-enriched biscuits can positively modulate the gut microbiota of vitamin A-deficient children, increase beneficial bacterial populations and improve nutrient and haematological status.
Experts agree that red palm oil is most beneficial when consumed as part of a balanced diet.
Much of the negative perception of palm oil comes from outdated assumptions that all saturated fats are harmful, or that the antioxidant-rich components in RPO do not matter.
Malaysian regulatory and consumer advocacy organisations have publicly countered these stigmas, noting that typical palm oil consumption is not harmful and that it remains trans-fat free and cholesterol free.
Malaysia continues to lead global research into palm oil nutrition, including its bioactive compounds and health effects.
The MPOB and other scientific bodies can help promote an evidence-based understanding of palm oil's benefits and limitations.
For the average Malaysian, whether preparing nasi lemak for breakfast, cooking sambal for dinner or frying snacks for guests, red palm oil can be embraced as a nutrient-rich and culturally significant oil that, when used as part of a balanced diet, supports gut health, micronutrient sufficiency and general wellbeing.
There remains a need for more large-scale, long-term clinical studies, especially on gut microbiome modulation in adults, metabolic outcomes and interactions with Malaysian dietary patterns.
In the meantime, it is time to reset the palm oil narrative as an under-appreciated ally, especially for a Malaysian diet rich in tradition and flavour. NST
--------
Researchers find concerning gaps in global maps used for EUDR compliance
- Most companies importing certain products into the EU must comply with the European Union’s Regulation on Deforestation-free products (EUDR), which will go into application on Dec. 30, 2026.
- Satellite and other remote-sensing maps can guide both companies trying to comply with the regulation and government agencies verifying levels of deforestation risk attached to imports.
- But a recent review paper suggests that most of the available maps struggle to meet all of the requirements of the EUDR and could over- or underestimate the risk of deforestation for certain products.
- A key issue is the maps’ ability to differentiate forest from systems that look similar, such as agroforestry, commonly practiced by smallholder farmers producing cocoa, coffee and rubber.
The authors write that those inconsistencies point to the need for EU companies to be discerning about which maps they use to ensure they comply with the regulation. The requirements will go into effect for most companies on Dec. 30, 2026, after a second postponement in as many years by the European Parliament.
Only two of the 21 data sets in the assessment met all of the indicators used to assess risk used by the EUDR.
The regulation will apply to seven commodities — cattle, cocoa, coffee, palm oil, rubber, soy and timber — as well as the products they’re used to make. Companies and government agencies are planning to use maps of satellite and other remote-sensing data to determine whether products entering EU countries are linked to deforestation after Dec. 31, 2020, the regulation’s cutoff date.
Importing companies and the EU countries’ government agencies tasked with screening imported goods for compliance will compare georeferenced plots for a commodity with historical maps of forest and tree cover to determine whether it was produced at the expense of recently cleared forest.
But many such maps exist, and the EUDR doesn’t specify the use of any one map. That means that a company using one map to verify compliance might come to a different conclusion about deforestation risk than an EU government agency that uses another map, said study co-author Melvin Lippe, a land system scientist at the Thünen Institute of Forestry in Hamburg, Germany. Mongabay
December 19, 2025
EU countries approve year-long delay to deforestation law
BRUSSELS, Dec 18 (Reuters) - European Union countries on Thursday approved a deal to delay the anti-deforestation law by a year following pushback from industry and concerns the digital system to enforce it was not ready, the Council of the EU said, clearing the final legal hurdle for the delay to pass into law.
The world-first policy would ban imports into the EU of cocoa, palm oil and other commodities linked to forest destruction, requiring foreign exporters of these commodities to provide due diligence statements proving their products did not contribute to forest destruction.
Originally due to apply from December 2024, the law was designed as a key plank of the EU's green agenda. Brussels had already delayed it by a year, but that did not quell opposition from industry and trade partners including Brazil, Indonesia and the U.S., which said complying with the rules would be costly and hurt their exports to Europe.
Under the amended EU law, large companies will now have to comply from December 30, 2026, followed by smaller firms with a turnover of less than 10 million euros in the products affected, from June 30, 2027.
The EU proposed delaying, opens new tab the law for a second time in September, citing concerns about the readiness of information-technology systems needed to support it. Reuters
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Mapping every acre? EU Deforestation Rule piles on costs for American farmers
Farm News Media
A rule from the European Union (EU) that requires imports of certain commodities to prove that they didn’t come from deforested land is taking a toll on American farmers, even though the rule isn’t even being enforced yet.
The EU Deforestation Rule (EUDR) passed in 2023 applies to imports of cattle, soy, wood, cocoa, palm oil, coffee and rubber, along with any products produced with them.
While the rules were originally developed with the goal of combating the destruction of tropical rainforests, especially in places like Brazil, American farmers are being swept into significant traceability and compliance hurdles, according to American Farm Bureau Federation Economist Samantha Ayoub.
“EU officials have once again delayed enforcement of the rule until the end of 2026 due to concerns over the rule’s complexity, but anticipation of EUDR has caused significant trade barriers for American farmers, ranchers and foresters,” Ayoub wrote in a new Market Intel report.
The impact of EU trade
As the fourth-largest export market for U.S. commodities, Ayoub said EU regulations can have significant impact on American production — especially on industries with a high volume of export sales to member countries.
Of the commodities covered under EUDR, the EU is the second-largest market for U.S. soybeans, fourth for forest products and eighth for beef.
“All seven covered commodities account for nearly $5.6 billion, almost 44% of the total $12.85 billion in U.S. agricultural exports to the European Union in 2024,” Ayoub noted.
Even without implementation of the rule, trade of the covered commodities decreased 15% from 2022-24, while overall ag exports to the EU increased 4% over the same period.
Traceability troubles
The core of EUDR revolves around being able to prove that each plot of land used to produce EU imports was not recently in forestland.
While the U.S. is classified as “low-risk,” which cuts down on the number of inspections businesses are subject to, Ayoub said it does not erase the extensive data and traceability requirements required to ensure compliance.
“Interestingly, despite being recognized as a major deforester, Brazil is only categorized as a standard risk and also have less stringent compliance checks, largely due to government tracking of the issue rather than actual prevention of deforestation,” she added.
Logistical challenges arise from commodities imported to the EU under the deforestation rule being required to provide geographic coordinates to the exact plot of the land they were was produced on. Those issues include private property information being shared with numerous businesses and government entities, along with the fact that bulk commodities, like soybeans, are mixed in storage facilities.
“Products like soybean meal or wood chips are also by-products of other production measures, so will mix an even greater amount of individual farmer products together to produce an export volume,” Ayoub wrote.
“Ensuring that each shipment accurately reflects the location of each field input into the shipment will require advanced supply chain monitoring throughout harvest, transport, storage and purchasing.”
For small farms without extensive administrative teams or tracking, Ayoub said these additional traceability requirements may require outside assistance at high costs. Michigan Farm News
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No change in sustainability requirements for Malaysian palm oil producers
PETALING JAYA: The European Union’s (EU) decision to formally extend the implementation timeline of the EU Deforestation Regulation (EUDR), by 12 months does not change existing compliance obligations for Malaysian palm oil exporters, the Malaysian Palm Oil Council (MPOC) says.
It does, however, provide additional time for the industry to push for Malaysia to be benchmarked as a low-risk producer country, the council said.
MPOC noted the EU has announced a further postponement of the EUDR, extending its application by 12 months following ongoing operational and technical challenges, including the readiness of the EUDR IT system.
Under the revised EUDR framework, application deadlines are extended to Dec 30, 2026 for large EU operators and traders and to June 30, 2027 for micro and small enterprises. The StarMY
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Malaysian Palm Oil Council seeks low-risk status from EU amid delay in landmark anti-deforestation law
KUALA LUMPUR (Dec 18): The Malaysian Palm Oil Council (MPOC) is seeking low-risk status from the European Union (EU) following a delay in the implementation of its landmark anti-deforestation law.
For now, Malaysian exporters will continue to comply fully with the EU Deforestation Regulation and provide due diligence statement to buyers in the bloc as required under the legislation now postponed by 12 months, the council said in a statement.
The council also calls on the EU “to ensure that smallholder farmers are not excluded from international supply chains as a result of disproportionate compliance requirements”, said MPOC chief executive officer Belvinder Kaur Sron.
The EU pushed the application deadline amid operational and technical challenges. The new timeline now falls on Dec 30, 2026 for large operators and traders, while micro and small enterprises will have until June 30, 2027 to comply.
The law, also known as the EUDR, bans the import, export, and trade within the bloc of certain commodities and products linked to deforestation or forest degradation after Dec 31, 2020. The goal was said to ensure EU consumption does not contribute to global forest loss, a major driver of climate change and biodiversity loss.
The regulation has faced resistance from major supplier countries including Malaysia, the world’s top producer after Indonesia, as well as some EU member states over high compliance costs and potential supply chain disruptions.
Still, Malaysia is among the most prepared producing countries for EUDR compliance, having made significant progress in traceability through a national traceability system, Belvinder said.
The platform integrates e-MSPO, GeoSawit and SIMS, consolidating certification data, geolocation coordinates and verified transactions into a unified system that allows EUDR-relevant information to be centrally accessed and shared with EU partners.
Belvinder added that the country’s own mandatory Malaysian Sustainable Palm Oil (MSPO) certification provides a nationally enforced assurance framework that can help simplify compliance for EU buyers, while reducing administrative burdens across the supply chain.
In 2024, Malaysia’s palm oil industry generated RM109 billion in export earnings, accounting for 24% of global palm oil production and 32% of global exports. The Edge
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Massive farmers protests in Brussels over EU regulations • FRANCE 24 English
EU countries approve year-long delay to deforestation law
BRUSSELS, Dec 18 (Reuters) - European Union countries on Thursday approved a deal to delay the anti-deforestation law by a year following pushback from industry and concerns the digital system to enforce it was not ready, the Council of the EU said, clearing the final legal hurdle for the delay to pass into law.
The world-first policy would ban imports into the EU of cocoa, palm oil and other commodities linked to forest destruction, requiring foreign exporters of these commodities to provide due diligence statements proving their products did not contribute to forest destruction.
Originally due to apply from December 2024, the law was designed as a key plank of the EU's green agenda. Brussels had already delayed it by a year, but that did not quell opposition from industry and trade partners including Brazil, Indonesia and the U.S., which said complying with the rules would be costly and hurt their exports to Europe.
Under the amended EU law, large companies will now have to comply from December 30, 2026, followed by smaller firms with a turnover of less than 10 million euros in the products affected, from June 30, 2027.
The EU proposed delaying, opens new tab the law for a second time in September, citing concerns about the readiness of information-technology systems needed to support it. Reuters
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Mapping every acre? EU Deforestation Rule piles on costs for American farmers
Farm News Media
A rule from the European Union (EU) that requires imports of certain commodities to prove that they didn’t come from deforested land is taking a toll on American farmers, even though the rule isn’t even being enforced yet.
The EU Deforestation Rule (EUDR) passed in 2023 applies to imports of cattle, soy, wood, cocoa, palm oil, coffee and rubber, along with any products produced with them.
While the rules were originally developed with the goal of combating the destruction of tropical rainforests, especially in places like Brazil, American farmers are being swept into significant traceability and compliance hurdles, according to American Farm Bureau Federation Economist Samantha Ayoub.
“EU officials have once again delayed enforcement of the rule until the end of 2026 due to concerns over the rule’s complexity, but anticipation of EUDR has caused significant trade barriers for American farmers, ranchers and foresters,” Ayoub wrote in a new Market Intel report.
The impact of EU trade
As the fourth-largest export market for U.S. commodities, Ayoub said EU regulations can have significant impact on American production — especially on industries with a high volume of export sales to member countries.
Of the commodities covered under EUDR, the EU is the second-largest market for U.S. soybeans, fourth for forest products and eighth for beef.
“All seven covered commodities account for nearly $5.6 billion, almost 44% of the total $12.85 billion in U.S. agricultural exports to the European Union in 2024,” Ayoub noted.
Even without implementation of the rule, trade of the covered commodities decreased 15% from 2022-24, while overall ag exports to the EU increased 4% over the same period.
Traceability troubles
The core of EUDR revolves around being able to prove that each plot of land used to produce EU imports was not recently in forestland.
While the U.S. is classified as “low-risk,” which cuts down on the number of inspections businesses are subject to, Ayoub said it does not erase the extensive data and traceability requirements required to ensure compliance.
“Interestingly, despite being recognized as a major deforester, Brazil is only categorized as a standard risk and also have less stringent compliance checks, largely due to government tracking of the issue rather than actual prevention of deforestation,” she added.
Logistical challenges arise from commodities imported to the EU under the deforestation rule being required to provide geographic coordinates to the exact plot of the land they were was produced on. Those issues include private property information being shared with numerous businesses and government entities, along with the fact that bulk commodities, like soybeans, are mixed in storage facilities.
“Products like soybean meal or wood chips are also by-products of other production measures, so will mix an even greater amount of individual farmer products together to produce an export volume,” Ayoub wrote.
“Ensuring that each shipment accurately reflects the location of each field input into the shipment will require advanced supply chain monitoring throughout harvest, transport, storage and purchasing.”
For small farms without extensive administrative teams or tracking, Ayoub said these additional traceability requirements may require outside assistance at high costs. Michigan Farm News
--------
No change in sustainability requirements for Malaysian palm oil producers
PETALING JAYA: The European Union’s (EU) decision to formally extend the implementation timeline of the EU Deforestation Regulation (EUDR), by 12 months does not change existing compliance obligations for Malaysian palm oil exporters, the Malaysian Palm Oil Council (MPOC) says.
It does, however, provide additional time for the industry to push for Malaysia to be benchmarked as a low-risk producer country, the council said.
MPOC noted the EU has announced a further postponement of the EUDR, extending its application by 12 months following ongoing operational and technical challenges, including the readiness of the EUDR IT system.
Under the revised EUDR framework, application deadlines are extended to Dec 30, 2026 for large EU operators and traders and to June 30, 2027 for micro and small enterprises. The StarMY
--------
Malaysian Palm Oil Council seeks low-risk status from EU amid delay in landmark anti-deforestation law
KUALA LUMPUR (Dec 18): The Malaysian Palm Oil Council (MPOC) is seeking low-risk status from the European Union (EU) following a delay in the implementation of its landmark anti-deforestation law.
For now, Malaysian exporters will continue to comply fully with the EU Deforestation Regulation and provide due diligence statement to buyers in the bloc as required under the legislation now postponed by 12 months, the council said in a statement.
The council also calls on the EU “to ensure that smallholder farmers are not excluded from international supply chains as a result of disproportionate compliance requirements”, said MPOC chief executive officer Belvinder Kaur Sron.
The EU pushed the application deadline amid operational and technical challenges. The new timeline now falls on Dec 30, 2026 for large operators and traders, while micro and small enterprises will have until June 30, 2027 to comply.
The law, also known as the EUDR, bans the import, export, and trade within the bloc of certain commodities and products linked to deforestation or forest degradation after Dec 31, 2020. The goal was said to ensure EU consumption does not contribute to global forest loss, a major driver of climate change and biodiversity loss.
The regulation has faced resistance from major supplier countries including Malaysia, the world’s top producer after Indonesia, as well as some EU member states over high compliance costs and potential supply chain disruptions.
Still, Malaysia is among the most prepared producing countries for EUDR compliance, having made significant progress in traceability through a national traceability system, Belvinder said.
The platform integrates e-MSPO, GeoSawit and SIMS, consolidating certification data, geolocation coordinates and verified transactions into a unified system that allows EUDR-relevant information to be centrally accessed and shared with EU partners.
Belvinder added that the country’s own mandatory Malaysian Sustainable Palm Oil (MSPO) certification provides a nationally enforced assurance framework that can help simplify compliance for EU buyers, while reducing administrative burdens across the supply chain.
In 2024, Malaysia’s palm oil industry generated RM109 billion in export earnings, accounting for 24% of global palm oil production and 32% of global exports. The Edge
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Massive farmers protests in Brussels over EU regulations • FRANCE 24 English
On the sidelines of the European summit, hundreds of farmers are gathering in Brussels, blocking parts of the Belgian capital to protest against EU regulations and the signing of a Mercosur trade deal, which they call unfair competition for European farmers.
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Brussels tried to help farmers. The tractors are back anyway.
Ahead of their biggest protest since the 1990s, farmers are madder than ever. We rate the policy responses and reactions on a pen-and-manure scale.
Brussels is about to get another reminder that tractors don’t run on promises.
Despite a flood of legislative goodies and concessions, some 10,000 farmers from all 27 EU countries are expected to descend on the EU quarter for what the bloc’s main farm lobby Copa-Cogeca says will be the biggest farm protests Brussels has seen this century. Tractors are expected. Speeches are planned. As for manure or burning hay? That, apparently, depends on who shows up.
“We’ve told everyone to behave,” said Peter Meedendorp, the head of Europe’s young farmers group CEJA. “But maybe the group from northern France — they are more radical — we can’t say what they’ll do.”
Even the EU’s agriculture commissioner admits the protest defies a single explanation.
Some farmers are coming over trade. Others over the next EU budget. Others over animal diseases or green rules.
“It’s difficult to say they are coming for one or the other reason,” Christophe Hansen told POLITICO. “There are several reasons — and they are not the same depending on where the farmers are coming from.”
That helps explain why farmers are back in Brussels — again — even as the European Commission insists it has bent over backward to meet their demands. From shielding farm payments in the next EU budget, to rewriting pesticide rules and slowing down trade deals, Brussels says it’s trying. Farmers say it’s still not enough.
Below, we break down the main grievances driving Thursday’s march — and rate both the EU’s response and the farmers’ level of anger using our highly scientific pen-and-poop scale: Five pens for a robust policy response; a five-manure rating for peak anger. Politico
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The EU-Indonesia Comprehensive Economic Partnership Agreement (CEPA)
Briefing 18-12-2025
Located in south-east Asia, Indonesia is the world's fourth biggest country by population, but only 33rd among EU (European Union) trading partners, well behind even other countries in the region. Data on trade in services and on foreign direct investment (FDI) also point to untapped potential between the EU and the fifth biggest Asian economy. After almost a decade of negotiations, in September 2025 the EU and Indonesia announced the conclusion of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) and an Investment Protection Agreement (IPA). Once signed, the texts will be transmitted to the European Parliament for consent. The CEPA is more complex than a simple free trade agreement (FTA); the EU and Indonesia engaged in a broad economic partnership including investment, services, intellectual property, and regulatory cooperation. The EU and Indonesia are to eliminate 98.5 % of tariff lines. Liberalisation will be effective at 80 % when the agreement enters into force; the remaining tariff lines will be eliminated over the following five years. The EU agri-food, chemicals, machinery and automotive industries will benefit in particular from the CEPA. Indonesia has agreed to protect 221 EU Geographical Indications (GIs), while the EU will protect 72 Indonesian GIs. Raw materials are included in the CEPA, which also contains a Protocol on palm oil, one of the most contentious issues during the negotiations. The IPA does not contain any investor–state dispute settlement – or ISDS – provisions. The Parties agreed a voluntary mediation mechanism for investor-state disputes and a state–state dispute settlement mechanism (SSDS). They will continue negotiations to agree on an ISDS within three years. Europarl
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Brussels tried to help farmers. The tractors are back anyway.
Ahead of their biggest protest since the 1990s, farmers are madder than ever. We rate the policy responses and reactions on a pen-and-manure scale.
Brussels is about to get another reminder that tractors don’t run on promises.
Despite a flood of legislative goodies and concessions, some 10,000 farmers from all 27 EU countries are expected to descend on the EU quarter for what the bloc’s main farm lobby Copa-Cogeca says will be the biggest farm protests Brussels has seen this century. Tractors are expected. Speeches are planned. As for manure or burning hay? That, apparently, depends on who shows up.
“We’ve told everyone to behave,” said Peter Meedendorp, the head of Europe’s young farmers group CEJA. “But maybe the group from northern France — they are more radical — we can’t say what they’ll do.”
Even the EU’s agriculture commissioner admits the protest defies a single explanation.
Some farmers are coming over trade. Others over the next EU budget. Others over animal diseases or green rules.
“It’s difficult to say they are coming for one or the other reason,” Christophe Hansen told POLITICO. “There are several reasons — and they are not the same depending on where the farmers are coming from.”
That helps explain why farmers are back in Brussels — again — even as the European Commission insists it has bent over backward to meet their demands. From shielding farm payments in the next EU budget, to rewriting pesticide rules and slowing down trade deals, Brussels says it’s trying. Farmers say it’s still not enough.
Below, we break down the main grievances driving Thursday’s march — and rate both the EU’s response and the farmers’ level of anger using our highly scientific pen-and-poop scale: Five pens for a robust policy response; a five-manure rating for peak anger. Politico
--------
The EU-Indonesia Comprehensive Economic Partnership Agreement (CEPA)
Briefing 18-12-2025
Located in south-east Asia, Indonesia is the world's fourth biggest country by population, but only 33rd among EU (European Union) trading partners, well behind even other countries in the region. Data on trade in services and on foreign direct investment (FDI) also point to untapped potential between the EU and the fifth biggest Asian economy. After almost a decade of negotiations, in September 2025 the EU and Indonesia announced the conclusion of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) and an Investment Protection Agreement (IPA). Once signed, the texts will be transmitted to the European Parliament for consent. The CEPA is more complex than a simple free trade agreement (FTA); the EU and Indonesia engaged in a broad economic partnership including investment, services, intellectual property, and regulatory cooperation. The EU and Indonesia are to eliminate 98.5 % of tariff lines. Liberalisation will be effective at 80 % when the agreement enters into force; the remaining tariff lines will be eliminated over the following five years. The EU agri-food, chemicals, machinery and automotive industries will benefit in particular from the CEPA. Indonesia has agreed to protect 221 EU Geographical Indications (GIs), while the EU will protect 72 Indonesian GIs. Raw materials are included in the CEPA, which also contains a Protocol on palm oil, one of the most contentious issues during the negotiations. The IPA does not contain any investor–state dispute settlement – or ISDS – provisions. The Parties agreed a voluntary mediation mechanism for investor-state disputes and a state–state dispute settlement mechanism (SSDS). They will continue negotiations to agree on an ISDS within three years. Europarl
December 18, 2025
Palm oil expansion in Papua raises eyebrows
JAKARTA: President Prabowo Subianto’s aspiration to expand palm oil plantations in Papua for biofuel production has drawn strong backlash from environmentalists, who warn the policy risks repeating the ecological disasters already unfolding in Sumatra.
Prabowo made the remarks during a meeting with Papuan regional leaders in Jakarta on Tuesday (Dec 16), stressing that the country’s easternmost region must achieve self-sufficiency in strategic sectors, including food and energy.
“We hope Papua can be planted with oil palm so it can produce fuel from palm oil,” he said, adding that sugarcane and cassava could also be developed as part of efforts to achieve energy self-sufficiency within the next five years.
The President claimed that producing alternative energy, including from palm oil, cassava, sugarcane, solar and hydropower could save the state hundreds of trillions of rupiah currently spent on fuel subsidies and imports.
Annual fuel imports, which have reached Rp 520 trillion (US$31.77 billion), could be reduced by half or even eliminated, with the savings reallocated to regional governments, he added.
“The potential exists, the plans are in place and we will prove it.”
The remarks came amid heightened scrutiny of extractive industries, including palm oil, over their alleged role in worsening floods and landslides in Aceh, North and West Sumatra last month, which have claimed over 1,000 lives and displaced hundreds of thousands.
Environmental organizations attributed the severe toll to large-scale deforestation and lacklustre enforcement of environmental regulations.
The Indonesian Forum for the Environment (Walhi) noted that 1.4 million hectares of forest cover had been cleared across the three provinces between 2016 and 2025 to make way for businesses such as plantations and mining.
Critics warn that Papua could face similar ecological and social crises if palm oil expansion proceeds unchecked, noting that large-scale clearing in Papua threatens not only the environment but also local communities who depend on the forests for their livelihoods.
Environmental group Sawit Watch reported that Papua’s oil palm plantations are already approaching their ecological limit, covering approximately 290,600 ha, just below the estimated maximum of 290,800 ha.
Observing a similar trend nationwide, the group urged the government to impose a moratorium of further expansion. The StarMY
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Greenpeace Rings Ecological Disaster Alarm as Prabowo Pushes for Papua Palm Oil Plantations
TEMPO.CO, Jakarta - Greenpeace Indonesia and Pusaka Bentala Rakyat Foundation have voiced their concerns over President Prabowo Subianto's push to drive palm oil, sugarcane, and cassava plantations in Papua. They believed the initiative could bring ecological disasters to the region.
Prabowo mentioned during his meeting with Papua leaders and the Executive Committee for the Acceleration of Special Autonomy Development in Papua that his plan aims for energy and food self-sufficiency.
"In pursuit of food and energy self-sufficiency ambitions, Prabowo is designing an ecological disaster for Papua," said Asep Komarudin, Greenpeace Indonesia's Forest Campaigner, in a written statement received by Tempo on December 17, 2025.
The head of state's ambition could mean land clearing of millions of natural forest land while disregarding the indigenous Papuan communities as the landowners.
Prabowo, Asep said, is not learning from the ecological disasters in Sumatra, which were caused by massive deforestation by palm oil and forestry extractive businesses, which have led to the deaths of 1,030 people. The Sumatra disaster has also caused an economic loss of Rp68.8 trillion and the destruction of property and socio-economic infrastructure.
Asep said the "Papua must be cultivated" remark reflects a top-down approach that disregards the right to self-determination over living spaces. Papua is once again positioned as an object of national policy, disregarding the rights of indigenous communities.
"The statement contains a colonial logic: the most powerful state determines and alters the social life of the people and the natural environment in Papua, as if Papua is an empty space waiting to be developed by state projects," he said.
Existing Palm Oil Plantations in Papua
Meanwhile, Pusaka Bentala Rakyat Foundation identified 94 palm oil plantation companies in Papua covering 1,332,032 hectares. Tigor Hutapea, Advocacy Staff at Pusaka Bentala Rakyat Foundation, stated that the palm oil plantations are controlled and owned by a handful of corporations close to high-ranking state officials. Tempo
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Palm oil expansion in Papua raises eyebrows
JAKARTA: President Prabowo Subianto’s aspiration to expand palm oil plantations in Papua for biofuel production has drawn strong backlash from environmentalists, who warn the policy risks repeating the ecological disasters already unfolding in Sumatra.
Prabowo made the remarks during a meeting with Papuan regional leaders in Jakarta on Tuesday (Dec 16), stressing that the country’s easternmost region must achieve self-sufficiency in strategic sectors, including food and energy.
“We hope Papua can be planted with oil palm so it can produce fuel from palm oil,” he said, adding that sugarcane and cassava could also be developed as part of efforts to achieve energy self-sufficiency within the next five years.
The President claimed that producing alternative energy, including from palm oil, cassava, sugarcane, solar and hydropower could save the state hundreds of trillions of rupiah currently spent on fuel subsidies and imports.
Annual fuel imports, which have reached Rp 520 trillion (US$31.77 billion), could be reduced by half or even eliminated, with the savings reallocated to regional governments, he added.
“The potential exists, the plans are in place and we will prove it.”
The remarks came amid heightened scrutiny of extractive industries, including palm oil, over their alleged role in worsening floods and landslides in Aceh, North and West Sumatra last month, which have claimed over 1,000 lives and displaced hundreds of thousands.
Environmental organizations attributed the severe toll to large-scale deforestation and lacklustre enforcement of environmental regulations.
The Indonesian Forum for the Environment (Walhi) noted that 1.4 million hectares of forest cover had been cleared across the three provinces between 2016 and 2025 to make way for businesses such as plantations and mining.
Critics warn that Papua could face similar ecological and social crises if palm oil expansion proceeds unchecked, noting that large-scale clearing in Papua threatens not only the environment but also local communities who depend on the forests for their livelihoods.
Environmental group Sawit Watch reported that Papua’s oil palm plantations are already approaching their ecological limit, covering approximately 290,600 ha, just below the estimated maximum of 290,800 ha.
Observing a similar trend nationwide, the group urged the government to impose a moratorium of further expansion. The StarMY
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Greenpeace Rings Ecological Disaster Alarm as Prabowo Pushes for Papua Palm Oil Plantations
TEMPO.CO, Jakarta - Greenpeace Indonesia and Pusaka Bentala Rakyat Foundation have voiced their concerns over President Prabowo Subianto's push to drive palm oil, sugarcane, and cassava plantations in Papua. They believed the initiative could bring ecological disasters to the region.
Prabowo mentioned during his meeting with Papua leaders and the Executive Committee for the Acceleration of Special Autonomy Development in Papua that his plan aims for energy and food self-sufficiency.
"In pursuit of food and energy self-sufficiency ambitions, Prabowo is designing an ecological disaster for Papua," said Asep Komarudin, Greenpeace Indonesia's Forest Campaigner, in a written statement received by Tempo on December 17, 2025.
The head of state's ambition could mean land clearing of millions of natural forest land while disregarding the indigenous Papuan communities as the landowners.
Prabowo, Asep said, is not learning from the ecological disasters in Sumatra, which were caused by massive deforestation by palm oil and forestry extractive businesses, which have led to the deaths of 1,030 people. The Sumatra disaster has also caused an economic loss of Rp68.8 trillion and the destruction of property and socio-economic infrastructure.
Asep said the "Papua must be cultivated" remark reflects a top-down approach that disregards the right to self-determination over living spaces. Papua is once again positioned as an object of national policy, disregarding the rights of indigenous communities.
"The statement contains a colonial logic: the most powerful state determines and alters the social life of the people and the natural environment in Papua, as if Papua is an empty space waiting to be developed by state projects," he said.
Existing Palm Oil Plantations in Papua
Meanwhile, Pusaka Bentala Rakyat Foundation identified 94 palm oil plantation companies in Papua covering 1,332,032 hectares. Tigor Hutapea, Advocacy Staff at Pusaka Bentala Rakyat Foundation, stated that the palm oil plantations are controlled and owned by a handful of corporations close to high-ranking state officials. Tempo
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December 17, 2025
Malaysia to keep zero expansion policy for palm oil
MALAYSIA will maintain its zero expansion policy for palm oil plantations, focusing instead on replanting, productivity gains and research-driven applications to support the industry’s long-term sustainability and export earnings.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani (picture) said the palm oil sector remains on a steady footing heading into 2026, underpinned by strong global demand, higher-value downstream applications and firm prices, despite the absence of new plantation openings.
“We stop deforestation. We are now focusing on what we already have by increasing yields through good planting material, good agricultural practices and technology,” he told reporters after attending Malaysian Palm Oil Board (MPOB) Awards at its headquarters today.
He said nearly one in four oil palm trees has exceeded its biological prime, making replanting critical to sustaining output without expanding land use.
“The way forward is replanting, but it must be done in a staggered manner so planters can still maintain income,” he said.
To support this transition, Johari said the government allocates RM100 million annually to assist independent smallholders with replanting efforts, noting that without intervention, declining yields could threaten livelihoods.
“If we don’t help them, they cannot put food on the table to take care of their families,” he said.
On fiscal measures, Johari said implementing a windfall tax remains challenging as the government continues to subsidise domestic cooking oil consumption.
“We are subsidising about RM1.4 billion for cooking oil, so the windfall tax is effectively offset by what we give back to the rakyat,” he said.
Johari said palm oil prices remain structurally supported above RM4,000 per tonne, compared with RM1,800 to RM2,000 per tonne in previous years, reflecting stronger demand driven by broader industrial and non-food applications.
He added that continuous research and development by MPOB will remain central to expanding new uses for palm oil globally, ensuring the industry stays competitive while meeting increasingly stringent sustainability requirements The Malaysian Reserve
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Malaysia to speed up licensing to draw foreign investment in sustainable aviation fuel
Petaling Jaya: The government will accelerate and simplify licensing approvals for activities related to sustainable aviation fuel (SAF) to attract greater foreign investment and strengthen Malaysia’s position in the emerging sector, Plantation and Commodities Minister Johari Ghani said, reports Free Malaysia Today.
Speaking in the Dewan Negara, Johari said the initiative is aimed at turning Malaysia into a regional SAF hub while improving investor confidence in the domestic industry, according to a report by Utusan Malaysia.
He said the government is making it easier for companies to obtain approvals for building facilities, producing SAF and exporting the fuel, adding that faster and clearer processes would encourage industry players to base their operations in Malaysia.
Johari was responding to a question from Senator Che Alias Hamid on steps being taken to attract foreign investors beyond offering tax incentives.
The minister said Malaysia is capitalising on its status as the world’s second-largest palm oil producer by using feedstock such as used cooking oil, palm oil mill effluent oil and other palm-based biomass for SAF production.
He added that efforts are also under way to increase public awareness about the collection of used cooking oil, while the government is studying measures to ensure that raw materials used for SAF remain sustainable over the long term. Bioenergy Times
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Malaysia eyes UCO, POME export curbs to secure feedstock for SAF push
Malaysia is considering restricting exports of used cooking oil and palm oil residues as part of a broader strategy to secure feedstock supplies for its emerging sustainable aviation fuel sector, senior government officials said, according to local media reports.
Malaysia is targeting the production of nearly 1 million metric tons/year of SAF by 2028, underpinned by two domestic facilities, Plantation and Commodities Minister Johari Abdul Ghani told the upper house of the Malaysian Parliament Dec. 15.
A Hong Kong-based company, EcoCeres, already operates a SAF plant in Malaysia with a capacity of 350,000 mt/year, while state-owned Petronas is developing a second facility with 650,000 mt/year of capacity, expected to be completed by 2028, Ghani said, according to local media reports.
"To ensure sufficient and stable raw material supply, the government is adopting two main approaches," Ghani said.
Under the first approach, Malaysia currently continues to allow exports of used cooking oil, as domestic SAF production has yet to fully ramp up. However, the government is considering halting UCO exports in the future to safeguard feedstock availability once large-scale SAF production begins, Ghani said.
The second approach focuses on strengthening circular economy practices in the plantation sector, particularly through the use of palm oil waste streams as SAF feedstock.
Ghani said materials such as palm oil mill effluent, empty fruit bunches and other palm biomass residues that still contain recoverable oil would be reprocessed for SAF and other green energy applications, according to local media.
"Emphasis on the circular economy is crucial to ensure a sustainable supply of raw materials for the country's SAF industry," Ghani said, adding that the strategy would also support Malaysia's broader energy transition and green industry development goals.
Malaysia is the world's second-largest palm oil producer and has been positioning itself as a regional SAF hub by leveraging access to biomass-based feedstocks, streamlining licensing approvals and facilitating investment under its National Energy Transition Roadmap. SP Global
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Indonesia to Fight For Zero Tariffs on Palm Oil in This Week’s US Trade Talks
Jakarta. Indonesia’s chief negotiator Airlangga Hartarto recently said that he would fight for tariff cuts on palm oil in an upcoming round of trade talks with US officials, as Washington has already rolled back on its cocoa import tax.
Senior minister Airlangga has reconfirmed his plans to meet US Trade Representative Jamieson Greer in Washington later this week. Speaking to the Jakarta-based press on Tuesday evening, Airlangga admitted that he would be the only Indonesian minister participating in the discussions.
He went on to say that Jakarta would pursue zero tariffs on palm oil — something that Malaysia already got in a trade deal struck in October. Jakarta initially had been nudging the Washington into drop the tariffs on cocoa, citing the latter’s inability to grow sufficient amount of the commodity in its own soil. But just last month, US President Donald Trump inked an executive order that exempted cocoa, alongside hundreds of other agricultural products, from the reciprocal tariffs amidst Americans’ concerns over the high costs of groceries.
“The tariff [reductions] on our palm oil are indeed something that we will discuss. Malaysia already has it. The US already has an executive order [that frees] cocoa [from the reciprocal tariffs]. But the [import tax] on palm oil needs to be discussed bilaterally,” Airlangga said.
ndonesia is the world’s largest supplier of palm oil alongside Malaysia. The Indonesian Palm Oil Association (Gapki) reported that Jakarta had a huge lead in US-bound exports compared to Kuala Lumpur. Between January and October 2025, Indonesia exported nearly $1.8 billion worth of animal or vegetable fats and oils, according to the Trade Ministry. Palm oil falls within this sub-category.
Trump’s 19% tariffs on Indonesian goods officially entered into force in August, although the rate was lower than the 32% tax that Trump had originally intended. Airlangga revealed that the upcoming discussions would not revolve around tariffs on footwear and textiles — despite being Jakarta’s main exports to the US. Jakarta Globe
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Why Prabowo Is Advocating Palm Oil Plantation Expansion in Papua
TEMPO.CO, Jakarta - Indonesian president Prabowo Subianto has explained why he is advocating for the cultivation of palm oil in Papua, linking it to the government’s goal of ending Indonesia’s dependency on imported gasoline.
According to Prabowo, achieving fuel self-sufficiency is realistic given Indonesia’s potential for renewable energy sources (EBT) across various regions, including Papua. Policies are being prepared to ensure that energy-producing areas directly benefit from the energy they generate.
“In remote and challenging regions, we should use solar or hydro energy. Solar technology is becoming more affordable and can reach isolated areas, and mini-hydro plants can also be installed in remote locations,” Prabowo said at the State Palace in Jakarta on Tuesday, December 16, 2025, as reported by Antara.
Beyond solar and hydro, the president is promoting bioenergy development using palm oil, sugarcane, and cassava as feedstocks for biodiesel and bioethanol. He said these initiatives could reduce the country’s fuel imports while strengthening regional energy independence.
“All of this is aimed at achieving independence for each region. If solar and hydro energy are available locally, there is no need to transport expensive fuel to remote areas,” Prabowo said. “In Papua, oil palm can produce biofuel, and sugarcane can be used to make ethanol.”
Prabowo also stressed the broader economic impact. Indonesia currently spends around Rp520 trillion annually on fuel imports. Halving this dependence could save the country approximately Rp250 trillion each year.
“This year, we spend hundreds of trillions of rupiah on fuel imports. By planting oil palm, cassava, and sugarcane, and using solar and hydro energy, imagine the savings each year,” Prabowo said.
The government has already begun steps to stop importing diesel by 2026 and aims to eliminate gasoline imports as well. Prabowo expressed confidence that the country’s renewable energy potential, particularly in Papua, makes this target achievable. Tempo
--------
Can green trade barriers save the environment?
By M Rajshekhar
What Malaysia’s experience with Sustainable Palm Oil tells us about tropical deforestation — and CBAM.
Oil palm is hard to miss in Malaysia. Its plantations are visible along the highway between Kuala Lumpur International Airport and Kuala Lumpur itself. A few days later, when CarbonCopy travelled to the eastern province of Sabah in Borneo, oil palm was omnipresent there as well.
Flying over Sabah’s forested interior, we saw large geometric patches, each a much lighter shade of green than the surrounding forest, carved into what was once one of the biggest tropical jungles in the world. Those, too, are oil palm plantations.
The scene is similar elsewhere in Sabah, too, like the land abutting the Kinabatangan river. Other provinces, like Sarawak in Borneo and Kelantan and Pahang in peninsular Malaysia, are said to be no different.
Little here is a surprise. Unlike India, which began evangelising oil palm to farmers about 20 years ago, Malaysia has been growing it for much longer. First introduced to the country by the British, it began to be planted as a cash crop in the 1960s. Since then, as a conservationist in Kota Kinabalu, the capital of Sabah, told CarbonCopy, it has spread like wildfire. Oil palm plantations now occupy 17% of Malaysia’s area — and account for about 4% of the country’s GDP and a little over a fourth of its exports.
In recent years, however, a dark cloud has settled over the sector. Like India, thickly forested Borneo was logged intensively during colonialism. Thereafter, plantations for rubber — and then for oil Palm — came up on these deforested tracts.
After independence, as oil palm, cheaper than other oilseeds, found its way into biofuels, cooking oil markets, processed foods and cosmetics, these processes of deforestation and cash crop plantation continued, albeit under local elites. With that, like clear-felling of rainforests for cattle ranching and soy, oil palm’s growth, too, is decimating Malaysia’s rainforests and pushing indigenous communities and biodiversity, including Sumatran tigers and Orangutans, into extinction.
Some of this history has been coming back to haunt oil palm growers. A clutch of nations, whether motivated by their own oilseed growers or ecological concerns, are trying to rein in the sector — chiefly through trade barriers that will only let sustainable palm oil through.
Under the 2023 EU Deforestation Regulation (EUDR), anything not forest-friendly will lose access to the EU market with its large buyers like Unilever and Nestle. In tandem, to protect their businesses, oil palm growers, too, have rolled out initiatives like Roundtable on Sustainable Palm Oil (RSPO), which certify environmentally and socially responsible palm oil. Apart from RSPO, Malaysia and Indonesia, the two biggest growers and exporters of Palm Oil, have their own sustainability certifications — Malaysia Sustainable Palm Oil (MSPO) and Indonesia Sustainable Palm Oil (ISPO). Carbon Copy
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Expert reaction to systematic review study looking at saturated fat intake and cardiovascular disease events
A systematic review published in Annals of Internal Medicine looks at saturated fat intake and cardiovascular events.
Prof Nita Forouhi, Professor of Population Health and Nutrition, MRC Epidemiology Unit, University of Cambridge, said:
“The authors acknowledged several prior systematic reviews of saturated fat and cardiovascular disease or mortality, but justified their current analysis based on making methodological improvements, which, I agree, is true for some issues and a positive step. However, they also introduced some new methodological challenges that limit interpretation.
“They differentiated between individuals with low vs. high baseline CVD risk and evaluated the absolute risk reduction for CVD or mortality outcomes at 5 years. They did not consider any systematic differences by baseline risk groups nor what may happen over a longer time horizon of 10 years, which is out of step with typical CVD risk prediction algorithms that are used in clinical practice. A sensitivity analysis with comparative results at 10 years is important to inform this gap as 5 years may be too short to capture meaningful differences in CVD events or mortality especially in low- risk individuals.
“The inclusion criteria for individual RCTs were much more permissive in this meta-analysis than some other meta-analyses that included, for instance, only four RCTs as eligible core trials. Their current approach increases sample size and the range of intervention criteria and trial designs, but this comes at the cost of including, for instance, the Women’s Health Initiative (WHI) study (the biggest study that they included by several fold), which is not a trial of saturated fat. In the WHI study the goal was to reduce total fat, and as the authors acknowledge, the “low-fat” intervention diet reduced SFA intakes modestly but also reduced the “beneficial” MUFA and PUFA to a similar or greater degree. Moreover, in the WHI study the replacement nutrient when reducing SFA was not PUFA – the current public health recommendation – but carbohydrates.
“For these methodological reasons it is premature to consider any change to the existing dietary guidelines that recommend saturated fat reduction to under 10% of energy intake in the UK. Importantly, there is increasing knowledge from our own research and that of others that saturated fat is a complex entity, and it is not all the same – its health effects vary by saturated fat sub-types and its food sources. For example, saturated fat in red or processed meat vs that in fermented dairy (yoghurt, cheese) exerts different health effects. The focus needs to shift from the nutrient as the sole consideration to the foods that the nutrient comes from.” Science Media Centre
--------
Effect of Interventions Aimed at Reducing or Modifying Saturated Fat Intake on Cholesterol, Mortality, and Major Cardiovascular Events: A Risk Stratified Systematic Review of Randomized Trials
Abstract
Background:
Debates about optimal saturated fat advice continue.
Purpose:
To systematically summarize randomized trial data on reducing or modifying saturated fat intake on cholesterol, mortality, and major cardiovascular events.
Data Sources:
MEDLINE, Embase, and Cochrane Central Register of Controlled Trials from inception to July 2025.
Study Selection:
Eligible trials enrolled adults with or without cardiovascular disease and studied the effect of reducing or modifying saturated fat intake.
Data Extraction:
Standard Cochrane methods.
Data Synthesis:
There were 17 eligible trials (66 337 participants). Risk stratified evidence provides low to moderate certainty that reducing saturated fat intake may result in a reduction in all-cause mortality (risk ratio [RR], 0.96 [95% CI, 0.88 to 1.06]), cardiovascular mortality (RR, 0.93 [CI, 0.77 to 1.11]), nonfatal myocardial infarction (MI) (RR, 0.86 [CI, 0.70 to 1.06]), and fatal and nonfatal stroke (RR, 0.83 [CI, 0.58 to 1.19]). For persons at low baseline cardiovascular risk, absolute reductions were below our thresholds of importance (5 and 10 per 1000 persons followed over 5 years for fatal and nonfatal outcomes, respectively); for those at high risk, the benefits were above our thresholds, suggesting there may be important absolute reductions. The effects were more pronounced when replacing saturated fat with polyunsaturated fat for nonfatal MI (RR, 0.75 [CI, 0.58 to 0.99]; P for interaction = 0.05; moderate credibility of subgroup effect based on Instrument to assess the Credibility of Effect Modification Analyses assessments). ACP Journals
Malaysia to keep zero expansion policy for palm oil
MALAYSIA will maintain its zero expansion policy for palm oil plantations, focusing instead on replanting, productivity gains and research-driven applications to support the industry’s long-term sustainability and export earnings.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani (picture) said the palm oil sector remains on a steady footing heading into 2026, underpinned by strong global demand, higher-value downstream applications and firm prices, despite the absence of new plantation openings.
“We stop deforestation. We are now focusing on what we already have by increasing yields through good planting material, good agricultural practices and technology,” he told reporters after attending Malaysian Palm Oil Board (MPOB) Awards at its headquarters today.
He said nearly one in four oil palm trees has exceeded its biological prime, making replanting critical to sustaining output without expanding land use.
“The way forward is replanting, but it must be done in a staggered manner so planters can still maintain income,” he said.
To support this transition, Johari said the government allocates RM100 million annually to assist independent smallholders with replanting efforts, noting that without intervention, declining yields could threaten livelihoods.
“If we don’t help them, they cannot put food on the table to take care of their families,” he said.
On fiscal measures, Johari said implementing a windfall tax remains challenging as the government continues to subsidise domestic cooking oil consumption.
“We are subsidising about RM1.4 billion for cooking oil, so the windfall tax is effectively offset by what we give back to the rakyat,” he said.
Johari said palm oil prices remain structurally supported above RM4,000 per tonne, compared with RM1,800 to RM2,000 per tonne in previous years, reflecting stronger demand driven by broader industrial and non-food applications.
He added that continuous research and development by MPOB will remain central to expanding new uses for palm oil globally, ensuring the industry stays competitive while meeting increasingly stringent sustainability requirements The Malaysian Reserve
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Malaysia to speed up licensing to draw foreign investment in sustainable aviation fuel
Petaling Jaya: The government will accelerate and simplify licensing approvals for activities related to sustainable aviation fuel (SAF) to attract greater foreign investment and strengthen Malaysia’s position in the emerging sector, Plantation and Commodities Minister Johari Ghani said, reports Free Malaysia Today.
Speaking in the Dewan Negara, Johari said the initiative is aimed at turning Malaysia into a regional SAF hub while improving investor confidence in the domestic industry, according to a report by Utusan Malaysia.
He said the government is making it easier for companies to obtain approvals for building facilities, producing SAF and exporting the fuel, adding that faster and clearer processes would encourage industry players to base their operations in Malaysia.
Johari was responding to a question from Senator Che Alias Hamid on steps being taken to attract foreign investors beyond offering tax incentives.
The minister said Malaysia is capitalising on its status as the world’s second-largest palm oil producer by using feedstock such as used cooking oil, palm oil mill effluent oil and other palm-based biomass for SAF production.
He added that efforts are also under way to increase public awareness about the collection of used cooking oil, while the government is studying measures to ensure that raw materials used for SAF remain sustainable over the long term. Bioenergy Times
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Malaysia eyes UCO, POME export curbs to secure feedstock for SAF push
Malaysia is considering restricting exports of used cooking oil and palm oil residues as part of a broader strategy to secure feedstock supplies for its emerging sustainable aviation fuel sector, senior government officials said, according to local media reports.
Malaysia is targeting the production of nearly 1 million metric tons/year of SAF by 2028, underpinned by two domestic facilities, Plantation and Commodities Minister Johari Abdul Ghani told the upper house of the Malaysian Parliament Dec. 15.
A Hong Kong-based company, EcoCeres, already operates a SAF plant in Malaysia with a capacity of 350,000 mt/year, while state-owned Petronas is developing a second facility with 650,000 mt/year of capacity, expected to be completed by 2028, Ghani said, according to local media reports.
"To ensure sufficient and stable raw material supply, the government is adopting two main approaches," Ghani said.
Under the first approach, Malaysia currently continues to allow exports of used cooking oil, as domestic SAF production has yet to fully ramp up. However, the government is considering halting UCO exports in the future to safeguard feedstock availability once large-scale SAF production begins, Ghani said.
The second approach focuses on strengthening circular economy practices in the plantation sector, particularly through the use of palm oil waste streams as SAF feedstock.
Ghani said materials such as palm oil mill effluent, empty fruit bunches and other palm biomass residues that still contain recoverable oil would be reprocessed for SAF and other green energy applications, according to local media.
"Emphasis on the circular economy is crucial to ensure a sustainable supply of raw materials for the country's SAF industry," Ghani said, adding that the strategy would also support Malaysia's broader energy transition and green industry development goals.
Malaysia is the world's second-largest palm oil producer and has been positioning itself as a regional SAF hub by leveraging access to biomass-based feedstocks, streamlining licensing approvals and facilitating investment under its National Energy Transition Roadmap. SP Global
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Indonesia to Fight For Zero Tariffs on Palm Oil in This Week’s US Trade Talks
Jakarta. Indonesia’s chief negotiator Airlangga Hartarto recently said that he would fight for tariff cuts on palm oil in an upcoming round of trade talks with US officials, as Washington has already rolled back on its cocoa import tax.
Senior minister Airlangga has reconfirmed his plans to meet US Trade Representative Jamieson Greer in Washington later this week. Speaking to the Jakarta-based press on Tuesday evening, Airlangga admitted that he would be the only Indonesian minister participating in the discussions.
He went on to say that Jakarta would pursue zero tariffs on palm oil — something that Malaysia already got in a trade deal struck in October. Jakarta initially had been nudging the Washington into drop the tariffs on cocoa, citing the latter’s inability to grow sufficient amount of the commodity in its own soil. But just last month, US President Donald Trump inked an executive order that exempted cocoa, alongside hundreds of other agricultural products, from the reciprocal tariffs amidst Americans’ concerns over the high costs of groceries.
“The tariff [reductions] on our palm oil are indeed something that we will discuss. Malaysia already has it. The US already has an executive order [that frees] cocoa [from the reciprocal tariffs]. But the [import tax] on palm oil needs to be discussed bilaterally,” Airlangga said.
ndonesia is the world’s largest supplier of palm oil alongside Malaysia. The Indonesian Palm Oil Association (Gapki) reported that Jakarta had a huge lead in US-bound exports compared to Kuala Lumpur. Between January and October 2025, Indonesia exported nearly $1.8 billion worth of animal or vegetable fats and oils, according to the Trade Ministry. Palm oil falls within this sub-category.
Trump’s 19% tariffs on Indonesian goods officially entered into force in August, although the rate was lower than the 32% tax that Trump had originally intended. Airlangga revealed that the upcoming discussions would not revolve around tariffs on footwear and textiles — despite being Jakarta’s main exports to the US. Jakarta Globe
--------
Why Prabowo Is Advocating Palm Oil Plantation Expansion in Papua
TEMPO.CO, Jakarta - Indonesian president Prabowo Subianto has explained why he is advocating for the cultivation of palm oil in Papua, linking it to the government’s goal of ending Indonesia’s dependency on imported gasoline.
According to Prabowo, achieving fuel self-sufficiency is realistic given Indonesia’s potential for renewable energy sources (EBT) across various regions, including Papua. Policies are being prepared to ensure that energy-producing areas directly benefit from the energy they generate.
“In remote and challenging regions, we should use solar or hydro energy. Solar technology is becoming more affordable and can reach isolated areas, and mini-hydro plants can also be installed in remote locations,” Prabowo said at the State Palace in Jakarta on Tuesday, December 16, 2025, as reported by Antara.
Beyond solar and hydro, the president is promoting bioenergy development using palm oil, sugarcane, and cassava as feedstocks for biodiesel and bioethanol. He said these initiatives could reduce the country’s fuel imports while strengthening regional energy independence.
“All of this is aimed at achieving independence for each region. If solar and hydro energy are available locally, there is no need to transport expensive fuel to remote areas,” Prabowo said. “In Papua, oil palm can produce biofuel, and sugarcane can be used to make ethanol.”
Prabowo also stressed the broader economic impact. Indonesia currently spends around Rp520 trillion annually on fuel imports. Halving this dependence could save the country approximately Rp250 trillion each year.
“This year, we spend hundreds of trillions of rupiah on fuel imports. By planting oil palm, cassava, and sugarcane, and using solar and hydro energy, imagine the savings each year,” Prabowo said.
The government has already begun steps to stop importing diesel by 2026 and aims to eliminate gasoline imports as well. Prabowo expressed confidence that the country’s renewable energy potential, particularly in Papua, makes this target achievable. Tempo
--------
Can green trade barriers save the environment?
By M Rajshekhar
What Malaysia’s experience with Sustainable Palm Oil tells us about tropical deforestation — and CBAM.
Oil palm is hard to miss in Malaysia. Its plantations are visible along the highway between Kuala Lumpur International Airport and Kuala Lumpur itself. A few days later, when CarbonCopy travelled to the eastern province of Sabah in Borneo, oil palm was omnipresent there as well.
Flying over Sabah’s forested interior, we saw large geometric patches, each a much lighter shade of green than the surrounding forest, carved into what was once one of the biggest tropical jungles in the world. Those, too, are oil palm plantations.
The scene is similar elsewhere in Sabah, too, like the land abutting the Kinabatangan river. Other provinces, like Sarawak in Borneo and Kelantan and Pahang in peninsular Malaysia, are said to be no different.
Little here is a surprise. Unlike India, which began evangelising oil palm to farmers about 20 years ago, Malaysia has been growing it for much longer. First introduced to the country by the British, it began to be planted as a cash crop in the 1960s. Since then, as a conservationist in Kota Kinabalu, the capital of Sabah, told CarbonCopy, it has spread like wildfire. Oil palm plantations now occupy 17% of Malaysia’s area — and account for about 4% of the country’s GDP and a little over a fourth of its exports.
In recent years, however, a dark cloud has settled over the sector. Like India, thickly forested Borneo was logged intensively during colonialism. Thereafter, plantations for rubber — and then for oil Palm — came up on these deforested tracts.
After independence, as oil palm, cheaper than other oilseeds, found its way into biofuels, cooking oil markets, processed foods and cosmetics, these processes of deforestation and cash crop plantation continued, albeit under local elites. With that, like clear-felling of rainforests for cattle ranching and soy, oil palm’s growth, too, is decimating Malaysia’s rainforests and pushing indigenous communities and biodiversity, including Sumatran tigers and Orangutans, into extinction.
Some of this history has been coming back to haunt oil palm growers. A clutch of nations, whether motivated by their own oilseed growers or ecological concerns, are trying to rein in the sector — chiefly through trade barriers that will only let sustainable palm oil through.
Under the 2023 EU Deforestation Regulation (EUDR), anything not forest-friendly will lose access to the EU market with its large buyers like Unilever and Nestle. In tandem, to protect their businesses, oil palm growers, too, have rolled out initiatives like Roundtable on Sustainable Palm Oil (RSPO), which certify environmentally and socially responsible palm oil. Apart from RSPO, Malaysia and Indonesia, the two biggest growers and exporters of Palm Oil, have their own sustainability certifications — Malaysia Sustainable Palm Oil (MSPO) and Indonesia Sustainable Palm Oil (ISPO). Carbon Copy
--------
Expert reaction to systematic review study looking at saturated fat intake and cardiovascular disease events
A systematic review published in Annals of Internal Medicine looks at saturated fat intake and cardiovascular events.
Prof Nita Forouhi, Professor of Population Health and Nutrition, MRC Epidemiology Unit, University of Cambridge, said:
“The authors acknowledged several prior systematic reviews of saturated fat and cardiovascular disease or mortality, but justified their current analysis based on making methodological improvements, which, I agree, is true for some issues and a positive step. However, they also introduced some new methodological challenges that limit interpretation.
“They differentiated between individuals with low vs. high baseline CVD risk and evaluated the absolute risk reduction for CVD or mortality outcomes at 5 years. They did not consider any systematic differences by baseline risk groups nor what may happen over a longer time horizon of 10 years, which is out of step with typical CVD risk prediction algorithms that are used in clinical practice. A sensitivity analysis with comparative results at 10 years is important to inform this gap as 5 years may be too short to capture meaningful differences in CVD events or mortality especially in low- risk individuals.
“The inclusion criteria for individual RCTs were much more permissive in this meta-analysis than some other meta-analyses that included, for instance, only four RCTs as eligible core trials. Their current approach increases sample size and the range of intervention criteria and trial designs, but this comes at the cost of including, for instance, the Women’s Health Initiative (WHI) study (the biggest study that they included by several fold), which is not a trial of saturated fat. In the WHI study the goal was to reduce total fat, and as the authors acknowledge, the “low-fat” intervention diet reduced SFA intakes modestly but also reduced the “beneficial” MUFA and PUFA to a similar or greater degree. Moreover, in the WHI study the replacement nutrient when reducing SFA was not PUFA – the current public health recommendation – but carbohydrates.
“For these methodological reasons it is premature to consider any change to the existing dietary guidelines that recommend saturated fat reduction to under 10% of energy intake in the UK. Importantly, there is increasing knowledge from our own research and that of others that saturated fat is a complex entity, and it is not all the same – its health effects vary by saturated fat sub-types and its food sources. For example, saturated fat in red or processed meat vs that in fermented dairy (yoghurt, cheese) exerts different health effects. The focus needs to shift from the nutrient as the sole consideration to the foods that the nutrient comes from.” Science Media Centre
--------
Effect of Interventions Aimed at Reducing or Modifying Saturated Fat Intake on Cholesterol, Mortality, and Major Cardiovascular Events: A Risk Stratified Systematic Review of Randomized Trials
Abstract
Background:
Debates about optimal saturated fat advice continue.
Purpose:
To systematically summarize randomized trial data on reducing or modifying saturated fat intake on cholesterol, mortality, and major cardiovascular events.
Data Sources:
MEDLINE, Embase, and Cochrane Central Register of Controlled Trials from inception to July 2025.
Study Selection:
Eligible trials enrolled adults with or without cardiovascular disease and studied the effect of reducing or modifying saturated fat intake.
Data Extraction:
Standard Cochrane methods.
Data Synthesis:
There were 17 eligible trials (66 337 participants). Risk stratified evidence provides low to moderate certainty that reducing saturated fat intake may result in a reduction in all-cause mortality (risk ratio [RR], 0.96 [95% CI, 0.88 to 1.06]), cardiovascular mortality (RR, 0.93 [CI, 0.77 to 1.11]), nonfatal myocardial infarction (MI) (RR, 0.86 [CI, 0.70 to 1.06]), and fatal and nonfatal stroke (RR, 0.83 [CI, 0.58 to 1.19]). For persons at low baseline cardiovascular risk, absolute reductions were below our thresholds of importance (5 and 10 per 1000 persons followed over 5 years for fatal and nonfatal outcomes, respectively); for those at high risk, the benefits were above our thresholds, suggesting there may be important absolute reductions. The effects were more pronounced when replacing saturated fat with polyunsaturated fat for nonfatal MI (RR, 0.75 [CI, 0.58 to 0.99]; P for interaction = 0.05; moderate credibility of subgroup effect based on Instrument to assess the Credibility of Effect Modification Analyses assessments). ACP Journals
December 15, 2025
Match deforestation policy ambition with real implementation, says palm oil chief
Without clarity on the EUDR, producers ready to comply risk being left in regulatory limbo, warns CPOPC chief
As the European Union nears the final stretch in negotiations over the Deforestation Regulation (EUDR), producing countries gathered in Brussels for high-stakes talks with policymakers and industry stakeholders.
Against a backdrop of shifting timelines, the Council of Palm Oil Producing Countries (CPOPC) urged recognition of real-world gains in sustainable production and called for regulatory clarity that preserves both environmental ambition and smallholder livelihoods.
CPOPC Secretary General Izzana Salleh spoke with Euractiv about progress in Indonesia and Malaysia on curbing deforestation. Salleh sets out what producing countries need to ensure a fair and workable path forward under the revised EUDR.
EV: CPOPC recently concluded some intensive meetings with European policymakers and relevant stakeholders in Brussels. What were your key messages to them, and how do you feel that the European Commission is now more receptive to the concerns of producing countries? Euractiv
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Mondelēz Accused of Falling Short on Deforestation Promises
A report from nonprofit AidEnvironment claims that there are major gaps between chocolate manufacturing giant Mondelēz International's sustainability commitments, and its actual progress in keeping its cocoa and palm oil supply chains free from deforestation.
According to satellite data analyzed by the nonprofit, more than 4,100 hectares of forest were cleared after 2020 in areas connected to Mondelēz’s cocoa and palm oil suppliers. The group also pointed to several transparency gaps, including Mondelēz’s continued use of sourcing systems that don’t allow for full traceability, its decision to stop publishing a full list of cocoa suppliers after 2021, and the lack of a public log showing how it handles complaints about suppliers.
Mondelēz, which was spun off from Kraft Foods in 2012, makes cookies, chocolates, gums, and powdered beverages in over 160 countries, reporting revenue for 2024 of $36.4 billion. Although Mondelēz has long positioned itself as a leader in the cocoa sector for its efforts to curb deforestation in its supply chains, AidEnvironment claims that the company's recent actions run counter to that public image.
“Mondelēz helped build the narrative that traceability and compliance are achievable, and then stepped back when accountability approached," AidEnvironment senior researcher Sarah Drost said. Supply Chain Brain
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From Price Risk to Power Risk: How Market Concentration Is Quietly Reshaping Malaysia's Geopolitical Exposure
By Samirul Ariff Othman
For much of Malaysia's post-industrialisation history, trade vulnerability was understood largely in commercial terms: price cycles, demand shocks, exchange rates and competitiveness.
That framing is no longer sufficient. Today, Malaysia's trade patterns carry direct geopolitical and geoeconomic consequences. Tariffs, technology controls and supply-chain power now operate as instruments of statecraft. Who Malaysia sells to — and how concentrated those markets have become — now shapes national exposure as much as diplomacy.
Debates on trade risk often focus on what Malaysia exports: electronics, palm oil, rubber, petroleum products and machinery. This is commodity concentration. Yet an equally consequential risk often escapes attention: market concentration, or where those exports go. In today's climate of weaponised trade, market concentration now carries greater strategic risk than commodity concentration itself.
From Diversification to Quiet Re-Concentration
Over the past two decades, Malaysia's export relationship with the United States has followed a full arc of dependence, diversification and quiet return. In 2005, nearly one-fifth of Malaysia's total exports were destined for the US. By 2015, that share had fallen below ten per cent as Malaysia diversified across East Asia, Asean and other emerging markets. By the early to mid-2020s, however, the US export share edged back up to around 11–12 per cent. On its own, this appears modest. Read alongside rising export-market concentration and intensifying US trade assertiveness, however, its geopolitical implications become significant. NST
Match deforestation policy ambition with real implementation, says palm oil chief
Without clarity on the EUDR, producers ready to comply risk being left in regulatory limbo, warns CPOPC chief
As the European Union nears the final stretch in negotiations over the Deforestation Regulation (EUDR), producing countries gathered in Brussels for high-stakes talks with policymakers and industry stakeholders.
Against a backdrop of shifting timelines, the Council of Palm Oil Producing Countries (CPOPC) urged recognition of real-world gains in sustainable production and called for regulatory clarity that preserves both environmental ambition and smallholder livelihoods.
CPOPC Secretary General Izzana Salleh spoke with Euractiv about progress in Indonesia and Malaysia on curbing deforestation. Salleh sets out what producing countries need to ensure a fair and workable path forward under the revised EUDR.
EV: CPOPC recently concluded some intensive meetings with European policymakers and relevant stakeholders in Brussels. What were your key messages to them, and how do you feel that the European Commission is now more receptive to the concerns of producing countries? Euractiv
--------
Mondelēz Accused of Falling Short on Deforestation Promises
A report from nonprofit AidEnvironment claims that there are major gaps between chocolate manufacturing giant Mondelēz International's sustainability commitments, and its actual progress in keeping its cocoa and palm oil supply chains free from deforestation.
According to satellite data analyzed by the nonprofit, more than 4,100 hectares of forest were cleared after 2020 in areas connected to Mondelēz’s cocoa and palm oil suppliers. The group also pointed to several transparency gaps, including Mondelēz’s continued use of sourcing systems that don’t allow for full traceability, its decision to stop publishing a full list of cocoa suppliers after 2021, and the lack of a public log showing how it handles complaints about suppliers.
Mondelēz, which was spun off from Kraft Foods in 2012, makes cookies, chocolates, gums, and powdered beverages in over 160 countries, reporting revenue for 2024 of $36.4 billion. Although Mondelēz has long positioned itself as a leader in the cocoa sector for its efforts to curb deforestation in its supply chains, AidEnvironment claims that the company's recent actions run counter to that public image.
“Mondelēz helped build the narrative that traceability and compliance are achievable, and then stepped back when accountability approached," AidEnvironment senior researcher Sarah Drost said. Supply Chain Brain
--------
From Price Risk to Power Risk: How Market Concentration Is Quietly Reshaping Malaysia's Geopolitical Exposure
By Samirul Ariff Othman
For much of Malaysia's post-industrialisation history, trade vulnerability was understood largely in commercial terms: price cycles, demand shocks, exchange rates and competitiveness.
That framing is no longer sufficient. Today, Malaysia's trade patterns carry direct geopolitical and geoeconomic consequences. Tariffs, technology controls and supply-chain power now operate as instruments of statecraft. Who Malaysia sells to — and how concentrated those markets have become — now shapes national exposure as much as diplomacy.
Debates on trade risk often focus on what Malaysia exports: electronics, palm oil, rubber, petroleum products and machinery. This is commodity concentration. Yet an equally consequential risk often escapes attention: market concentration, or where those exports go. In today's climate of weaponised trade, market concentration now carries greater strategic risk than commodity concentration itself.
From Diversification to Quiet Re-Concentration
Over the past two decades, Malaysia's export relationship with the United States has followed a full arc of dependence, diversification and quiet return. In 2005, nearly one-fifth of Malaysia's total exports were destined for the US. By 2015, that share had fallen below ten per cent as Malaysia diversified across East Asia, Asean and other emerging markets. By the early to mid-2020s, however, the US export share edged back up to around 11–12 per cent. On its own, this appears modest. Read alongside rising export-market concentration and intensifying US trade assertiveness, however, its geopolitical implications become significant. NST
December 14, 2025
Indonesia Targets 100% Export Growth to Eurasia After FTA Deal
Inp.polri.go.id - Jakarta. Indonesia is targeting a 100 percent increase in exports to the Eurasian Economic Union (EAEU) following the planned signing of the Indonesia–EAEU Free Trade Agreement, Minister of Trade Budi Santoso said on Friday (12/12/2025).
The agreement covers trade with Russia, Kazakhstan, Armenia, Belarus, and Kyrgyzstan and is expected to eliminate import tariffs on Indonesian products.
"Our target is to double exports, a 100 percent increase," Minister Budi said, as cited by antarnews.com.
He explained that the zero-percent tariff under the I-EAEU FTA will significantly improve the competitiveness of Indonesian goods, including palm oil, textiles, manufactured products, and fisheries. Indonesia also imports capital goods from the region, such as wheat and fertilizer.
In 2024, bilateral trade will reach USD 4.1 billion, with Indonesian exports totaling USD 1.5 billion, up 36 percent year on year. The agreement is expected to be signed at the EAEU Summit in St. Petersburg on 20 and 21 December 2025. Polri
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Nigerian Society of Engineers & Assetrise launch 3-tonnes-per-hour oil palm mill to drive local production, export growth, and investor opportunities
Assetrise Limited, in partnership with the Nigerian Society of Engineers, has commissioned a locally fabricated three-ton-per-hour palm oil mill and integrated ranching system at Palmrich Estate Phase 5 Ibadan
This milestone marks a new era of engineering-led agricultural development, strengthened by Assetrise’s commitment to transforming land ownership into productive, export-ready, sustainable, wealth.
NSE: Engineering the Future of Nigeria’s Agro-Industrial Growth
The Nigerian Society of Engineers, the nation’s foremost professional engineering body, played a central role in the design, fabrication, and installation of the new mill. With over 65 years of advancing engineering excellence, the NSE is committed to: Nairametrics
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Cross River, Presco Sign MoU to Revitalize Boki, Nsadop Oil Palm Estates
The Cross River State Government and Presco PLC have signed a Memorandum of Understanding (MoU) to cement a strategic partnership aimed at revitalising the Boki and Nsadop Oil Palm Estates and repositioning the state as a key player in Nigeria’s oil palm value chain.
The MoU signing ceremony, which took place at the Cross River State Privatization Council office in Calabar over the weekend, marked a significant milestone in the state’s agricultural renewal and economic reform drive under the administration of Governor Bassey Otu.
Speaking at the event, the Chairman of the State Privatization Council, Chief Bassey Okon, traced the historical roots of oil palm development in the former Eastern Region to the visionary leadership of Dr. Michael Okpara, with the support of renowned businessman Sir Odumegwu Ojukwu. He noted that following the creation of states in 1967, Cross River State emerged with a substantial number of oil palm estates owing to its vast landmass and expansive forest resources.
Chief Okon explained that successive administrations had made concerted efforts to revive the once-thriving estates after years of decline, beginning with the privatization framework introduced during the administration of former Governor Donald Duke and sustained under Governor Liyel Imoke. According to him, the present administration of Senator Bassey Otu is building on these reforms by opening up the Boki and Nsadop estates to private-sector expertise, guided by the principle of maximum social gains.
He said Presco PLC was selected based on its strong track record in Edo, Delta and Rivers States, noting that the company’s investment is expected to unlock massive employment opportunities, stimulate rural development and boost government revenues through taxes, produce fees and related economic activities. The initiative, he added, would create thousands of direct and indirect jobs, curb rural–urban migration and contribute to improved security in host communities. Cross River State
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What is biomethane and how will it help Singapore decarbonise?
SINGAPORE – Touted as a “renewable fuel”, biomethane is one of the latest low-carbon fuels Singapore is looking into as it seeks to reduce emissions from its power sector.
In October, Singapore announced the establishment of a regulatory sandbox – a controlled environment where companies can test innovations under the supervision of a regulator – of up to 300MW to catalyse biomethane supply chain development and facilitate adoption by key industry players.
A 300MW capacity can supply the energy needs of around 600,000 HDB households.
The Straits Times explains what biomethane is and its role in energy transition.
What is biomethane and how is it produced?
Biomethane is a renewable, low-carbon gas produced from organic materials such as food waste, agricultural waste, animal manure and sewage sludge.
According to the International Energy Agency (IEA), it is mainly produced by upgrading biogas from organic waste in a process that removes carbon dioxide and other contaminants.
It is chemically identical to fossil-derived methane – the main component of natural gas.
How is biomethane cleaner and how does it reduce emissions?
Currently, Singapore relies on natural gas – a type of fossil fuel – for about 95 per cent of its electricity generation. The Republic’s power sector contributes 40 per cent of national emissions, as burning natural gas releases planet-warming emissions.
Because biomethane has a composition similar to natural gas, a key advantage is that it can be used within the existing natural gas infrastructure without costly retrofits. By contrast, using hydrogen or ammonia would require upgrades to existing plants. Straits Times
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Heart-healthy cooking oils: Which to avoid and smart swaps for better cardiovascular health
Cooking oils can make all the difference when it comes to heart health, yet some decisions silently increase your chances of problems such as clogged arteries and high cholesterol. Decades of studies have confirmatively documented certain oils, packed either with trans fats, excess omega-6-or too much saturated fat, which feed inflammation and cardiovascular disease. The good news is that all it takes to protect your heart is some pretty simple swaps and smart habits.
The worst oils and the science behind them
Refined seed oils are at the top of the danger list. Think sunflower, soybean, corn, safflower—and cottonseed oils. They contain high amounts of omega-6 fatty acids, in particular linoleic acid. A 2018 review in the British Medical Journal highlighted that replacing saturated fats with such oils in trials actually increased coronary heart disease rates. A separate National Institutes of Health-linked study concluded that high intakes of omega-6 led to long-term artery damage. When heated repeatedly-as with deep frying-they will form harmful compounds that worsen cholesterol levels and the stiffness of blood-vessels, says a 2014 PubMed-analysis.
Palm oil and coconut oil are in the middle. Both have similar high amounts of saturated fat as that of butter. A 2021 study in PMC compared cooking fats and reported that palm and coconut raised total mortality risks more than options like olive oil. Experts from the American Heart Association note these fats boost LDL cholesterol-the bad kind of cholesterol that builds plaque in arteries. While coconut oil has its fans for its medium—chain triglycerides, research shows it still spikes cholesterol when-consumed in large quantities.
Then there are hydrogenated oils, such as vanaspati ghee or dalda, which is very common in processed snacks and fried foods. The trans fats found in these kinds of foods are the most unwanted. According to the Mayo Clinic—not only do trans fats increase LDL, but it lowers HDL, the good cholesterol that opens arteries. A landmark 2016 study on New York restaurant bans proved it: cutting trans fats dropped cardiovascular deaths by 6.2 percent. According to the WHO, the top dietary risk factor calls trans fat, while meta-analyses have confirmed its link to heart attacks and all-cause mortality. Times of India
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First Scheduled Waste Management Facility At SOGIP Set To Create New Jobs For Sabahans
SIPITANG, Dec 13 (Bernama) -- A strategic investment of more than RM1 billion in the development of a mini scheduled waste management facility at the Sipitang Oil and Gas Industrial Park (SOGIP) here is expected to generate new employment opportunities for the people of Sabah while supporting the growth of a sustainable, safe, and competitive industrial sector.
The groundbreaking ceremony for the project - the first mini facility of its kind in Sabah, developed by E-Concern (Borneo) Sdn Bhd - was officiated today by Sabah Deputy Chief Minister III Datuk Ewon Benedick, who is also the state’s Minister of Industrial Development, Entrepreneurship and Transport.
Benedick said the construction of the facility aligns with the “Sabah First” vision introduced by his ministry, which aims to increase Sabahans’ participation in the industrial sector, either as business owners or as a skilled workforce.
“The scheduled waste management facility is a critical requirement to support industrial growth, especially when the management of scheduled waste is later taken over by the state government. Among the main benefits of this project are reducing dependence on facilities outside Sabah, lowering logistics costs, ensuring compliance with environmental standards, reducing pollution risks, and attracting new investments to SOGIP, Kota Kinabalu Industrial Park (KKIP) and Palm Oil Industrial Park (POIC),” he said in a statement today.
Benedick added that the facility is projected to generate about 270 job opportunities once fully operational, with priority given to Sabahans.
He expressed hope that all relevant agencies and departments, including the Department of Environment, the Sabah Environmental Protection Department, SOGDC, MIDA, local authorities, and the Public Works Department, would continue to work together to ensure the smooth implementation of the project and compliance with established standards.
According to Benedick, his ministry remains committed to strengthening the investment ecosystem in line with the ‘Sabah Maju Jaya’ aspirations through three key focus areas - enhancing investor confidence through clear policies and efficient inter-agency coordination; empowering local entrepreneurs to participate in investors’ supply chains; and strengthening the logistics and transportation ecosystem, including port capacity, industrial facilities, and supporting utilities. Bernama
Indonesia Targets 100% Export Growth to Eurasia After FTA Deal
Inp.polri.go.id - Jakarta. Indonesia is targeting a 100 percent increase in exports to the Eurasian Economic Union (EAEU) following the planned signing of the Indonesia–EAEU Free Trade Agreement, Minister of Trade Budi Santoso said on Friday (12/12/2025).
The agreement covers trade with Russia, Kazakhstan, Armenia, Belarus, and Kyrgyzstan and is expected to eliminate import tariffs on Indonesian products.
"Our target is to double exports, a 100 percent increase," Minister Budi said, as cited by antarnews.com.
He explained that the zero-percent tariff under the I-EAEU FTA will significantly improve the competitiveness of Indonesian goods, including palm oil, textiles, manufactured products, and fisheries. Indonesia also imports capital goods from the region, such as wheat and fertilizer.
In 2024, bilateral trade will reach USD 4.1 billion, with Indonesian exports totaling USD 1.5 billion, up 36 percent year on year. The agreement is expected to be signed at the EAEU Summit in St. Petersburg on 20 and 21 December 2025. Polri
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Nigerian Society of Engineers & Assetrise launch 3-tonnes-per-hour oil palm mill to drive local production, export growth, and investor opportunities
Assetrise Limited, in partnership with the Nigerian Society of Engineers, has commissioned a locally fabricated three-ton-per-hour palm oil mill and integrated ranching system at Palmrich Estate Phase 5 Ibadan
- The project demonstrates Nigeria’s capacity for indigenous engineering solutions while creating a fully integrated agro real estate model that combines plantation processing livestock, and logistics for sustainable wealth creation
- Palmrich Phase 5 positions investors to benefit from the entire palm oil value chain and supports national food security through structured ranching systems aligned with the Federal Government’s policy shift away from open grazing
This milestone marks a new era of engineering-led agricultural development, strengthened by Assetrise’s commitment to transforming land ownership into productive, export-ready, sustainable, wealth.
NSE: Engineering the Future of Nigeria’s Agro-Industrial Growth
The Nigerian Society of Engineers, the nation’s foremost professional engineering body, played a central role in the design, fabrication, and installation of the new mill. With over 65 years of advancing engineering excellence, the NSE is committed to: Nairametrics
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Cross River, Presco Sign MoU to Revitalize Boki, Nsadop Oil Palm Estates
The Cross River State Government and Presco PLC have signed a Memorandum of Understanding (MoU) to cement a strategic partnership aimed at revitalising the Boki and Nsadop Oil Palm Estates and repositioning the state as a key player in Nigeria’s oil palm value chain.
The MoU signing ceremony, which took place at the Cross River State Privatization Council office in Calabar over the weekend, marked a significant milestone in the state’s agricultural renewal and economic reform drive under the administration of Governor Bassey Otu.
Speaking at the event, the Chairman of the State Privatization Council, Chief Bassey Okon, traced the historical roots of oil palm development in the former Eastern Region to the visionary leadership of Dr. Michael Okpara, with the support of renowned businessman Sir Odumegwu Ojukwu. He noted that following the creation of states in 1967, Cross River State emerged with a substantial number of oil palm estates owing to its vast landmass and expansive forest resources.
Chief Okon explained that successive administrations had made concerted efforts to revive the once-thriving estates after years of decline, beginning with the privatization framework introduced during the administration of former Governor Donald Duke and sustained under Governor Liyel Imoke. According to him, the present administration of Senator Bassey Otu is building on these reforms by opening up the Boki and Nsadop estates to private-sector expertise, guided by the principle of maximum social gains.
He said Presco PLC was selected based on its strong track record in Edo, Delta and Rivers States, noting that the company’s investment is expected to unlock massive employment opportunities, stimulate rural development and boost government revenues through taxes, produce fees and related economic activities. The initiative, he added, would create thousands of direct and indirect jobs, curb rural–urban migration and contribute to improved security in host communities. Cross River State
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What is biomethane and how will it help Singapore decarbonise?
SINGAPORE – Touted as a “renewable fuel”, biomethane is one of the latest low-carbon fuels Singapore is looking into as it seeks to reduce emissions from its power sector.
In October, Singapore announced the establishment of a regulatory sandbox – a controlled environment where companies can test innovations under the supervision of a regulator – of up to 300MW to catalyse biomethane supply chain development and facilitate adoption by key industry players.
A 300MW capacity can supply the energy needs of around 600,000 HDB households.
The Straits Times explains what biomethane is and its role in energy transition.
What is biomethane and how is it produced?
Biomethane is a renewable, low-carbon gas produced from organic materials such as food waste, agricultural waste, animal manure and sewage sludge.
According to the International Energy Agency (IEA), it is mainly produced by upgrading biogas from organic waste in a process that removes carbon dioxide and other contaminants.
It is chemically identical to fossil-derived methane – the main component of natural gas.
How is biomethane cleaner and how does it reduce emissions?
Currently, Singapore relies on natural gas – a type of fossil fuel – for about 95 per cent of its electricity generation. The Republic’s power sector contributes 40 per cent of national emissions, as burning natural gas releases planet-warming emissions.
Because biomethane has a composition similar to natural gas, a key advantage is that it can be used within the existing natural gas infrastructure without costly retrofits. By contrast, using hydrogen or ammonia would require upgrades to existing plants. Straits Times
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Heart-healthy cooking oils: Which to avoid and smart swaps for better cardiovascular health
Cooking oils can make all the difference when it comes to heart health, yet some decisions silently increase your chances of problems such as clogged arteries and high cholesterol. Decades of studies have confirmatively documented certain oils, packed either with trans fats, excess omega-6-or too much saturated fat, which feed inflammation and cardiovascular disease. The good news is that all it takes to protect your heart is some pretty simple swaps and smart habits.
The worst oils and the science behind them
Refined seed oils are at the top of the danger list. Think sunflower, soybean, corn, safflower—and cottonseed oils. They contain high amounts of omega-6 fatty acids, in particular linoleic acid. A 2018 review in the British Medical Journal highlighted that replacing saturated fats with such oils in trials actually increased coronary heart disease rates. A separate National Institutes of Health-linked study concluded that high intakes of omega-6 led to long-term artery damage. When heated repeatedly-as with deep frying-they will form harmful compounds that worsen cholesterol levels and the stiffness of blood-vessels, says a 2014 PubMed-analysis.
Palm oil and coconut oil are in the middle. Both have similar high amounts of saturated fat as that of butter. A 2021 study in PMC compared cooking fats and reported that palm and coconut raised total mortality risks more than options like olive oil. Experts from the American Heart Association note these fats boost LDL cholesterol-the bad kind of cholesterol that builds plaque in arteries. While coconut oil has its fans for its medium—chain triglycerides, research shows it still spikes cholesterol when-consumed in large quantities.
Then there are hydrogenated oils, such as vanaspati ghee or dalda, which is very common in processed snacks and fried foods. The trans fats found in these kinds of foods are the most unwanted. According to the Mayo Clinic—not only do trans fats increase LDL, but it lowers HDL, the good cholesterol that opens arteries. A landmark 2016 study on New York restaurant bans proved it: cutting trans fats dropped cardiovascular deaths by 6.2 percent. According to the WHO, the top dietary risk factor calls trans fat, while meta-analyses have confirmed its link to heart attacks and all-cause mortality. Times of India
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First Scheduled Waste Management Facility At SOGIP Set To Create New Jobs For Sabahans
SIPITANG, Dec 13 (Bernama) -- A strategic investment of more than RM1 billion in the development of a mini scheduled waste management facility at the Sipitang Oil and Gas Industrial Park (SOGIP) here is expected to generate new employment opportunities for the people of Sabah while supporting the growth of a sustainable, safe, and competitive industrial sector.
The groundbreaking ceremony for the project - the first mini facility of its kind in Sabah, developed by E-Concern (Borneo) Sdn Bhd - was officiated today by Sabah Deputy Chief Minister III Datuk Ewon Benedick, who is also the state’s Minister of Industrial Development, Entrepreneurship and Transport.
Benedick said the construction of the facility aligns with the “Sabah First” vision introduced by his ministry, which aims to increase Sabahans’ participation in the industrial sector, either as business owners or as a skilled workforce.
“The scheduled waste management facility is a critical requirement to support industrial growth, especially when the management of scheduled waste is later taken over by the state government. Among the main benefits of this project are reducing dependence on facilities outside Sabah, lowering logistics costs, ensuring compliance with environmental standards, reducing pollution risks, and attracting new investments to SOGIP, Kota Kinabalu Industrial Park (KKIP) and Palm Oil Industrial Park (POIC),” he said in a statement today.
Benedick added that the facility is projected to generate about 270 job opportunities once fully operational, with priority given to Sabahans.
He expressed hope that all relevant agencies and departments, including the Department of Environment, the Sabah Environmental Protection Department, SOGDC, MIDA, local authorities, and the Public Works Department, would continue to work together to ensure the smooth implementation of the project and compliance with established standards.
According to Benedick, his ministry remains committed to strengthening the investment ecosystem in line with the ‘Sabah Maju Jaya’ aspirations through three key focus areas - enhancing investor confidence through clear policies and efficient inter-agency coordination; empowering local entrepreneurs to participate in investors’ supply chains; and strengthening the logistics and transportation ecosystem, including port capacity, industrial facilities, and supporting utilities. Bernama
December 13, 2025
Solidaridad and Propcom Plus to Partner Enugu Govt On Sustainable Oil Palm Production
An international civil society group, Solidaridad, in partnership with Propcom Plus, a climate-smart agricultural programme powered by the United Kingdom (UK) Foreign, Commonwealth and Development Office (FCDO), is supporting Enugu State government in the development of a sustainable oil palm policy.
Solidaridad, which operates in over 40 countries across five continents, has been in existence for over 55 years, working to create resilient communities and sustainable supply chains and promoting sustainable land-use planning and production in oil palm.
In partnership with Propcom Plus, the organisation concluded a stakeholder engagement on Thursday in Enugu, as part of ongoing consultations to support the development of a sustainable oil palm policy for the state government.
The joint efforts are geared toward the formulation and adoption of the Enugu State Sustainable Oil Palm Policy (ESSOP).
At the event, Solidaridad programme manager, Mr Kene Onukwube, explained that the policy is designed to promote inclusive, climate-resilient and environmentally sustainable oil palm production in the state, with the goals of enhancing productivity, reducing deforestation and improving the livelihoods of smallholder farmers.
He hinted that Solidaridad implements the National Initiative for Sustainable and Climate-Smart Oil Palm Smallholders (NISCOPS) in Akwa Ibom, Cross River, Enugu and Kogi states.
“The programme is improving land-use practices, ensuring that more oil palm landscapes are sustainably managed and climate-resilient.
“It is also increasing the incomes of smallholder farmers and creating exclusive markets for sustainably produced palm oil,” he said.
In his remark, Enugu State Commissioner for lands, Barrister Chimaobi Okorie, thanked Solidaridad and its partners for their interventions in the state, assuring that the Governor Peter Mbah-led administration is fully committed to ensuring that an acceptable ESSOP document is put in place.
Participants at the consultative engagement included representatives from the state ministries of land, environment, trade and commerce, and agriculture as well as the Oil Palm Growers Association of Nigeria (OPGAN), the National Palm Produce Association of Nigeria (NPPAN), traditional rulers, and civil society organisations. Leadership NG
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Presco acquires 10,000 hectares Nsadop, Boki plantations in new expansion drive
Nigeria’s largest oil palm producer, Presco Plc, said today it’s acquiring 10,000 hectares across the Nsadop and Boki plantations in Cross River State in its latest expansion move.
The palm oil maker said the acquisition will significantly expand its production footprint and strengthen the company’s ability to meet the rapidly growing domestic demand for edible oil products.
It also sees the new move unlocking new agronomic potential while securing a broader raw material base to support higher processing and refining throughput across Presco’s value chain.
“This acquisition is a decisive execution of the commitments we made to our shareholders,” Reji George, managing director and CEO of Presco Plc said.
The Edo-based crude oil palm maker has been on an aggressive expansion strategy as it acquires Ghana Oil Development Company (GOPDC) and Saro Oil Palm Limited (SOP) in a combined deal worth $171.6 million.
The renewed expansion drive led to the opening of a N237 billion rights issue targeted at existing shareholders to fund the various acquisitions.
“Nsadop and Boki are strategically located estates that complement our existing operations and expand the scale required to power our mills and refineries at higher capacity,” George said.
“This move is not only about expanding land, it is about strengthening our leadership, securing long-term supply, and reinforcing our belief in the future of Nigeria’s agribusiness sector,” he added.
Analysts see the acquisitions playing a significant role in helping Presco advance its profitability streak while maintaining its upward growth trajectory. Business DayNG
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Handover of illegal palm oil and mining operations to PT Agrinas Palma Nusantara does not solve problems of legality says PUSTAKA ALAM
InfoSAWIT, JAKARTA – December 12, 2025 — The Forest Area Enforcement Task Force (PKH Task Force) reported that it had collected fines totaling Rp 38.6 trillion from 71 palm oil and mining companies operating without permits in forest areas. As of December 8, 2025, enforcement had covered an area of 3,771,467.31 hectares. Of this total area, 1,504,625.21 hectares were transferred to the state-owned company, PT Agrinas Palma Nusantara.
However, this move has drawn sharp criticism. The Center for the Study and Advocacy of Natural Resources Law (PUSTAKA ALAM) believes that the handover of the cleared land to PT Agrinas Palma Nusantara has actually created new problems.
This is because the company allegedly lacks the required permits—including a KKPR/Location Permit, a Mining Business License (IUP), environmental approval and AMDAL (Environmental Impact Assessment), as well as a forest area release permit and HGU (HGU) permit.
According to the Director of PUSTAKA ALAM, Muhamad Zainal Arifin, this action raises major questions about the direction and objectives of the forest area regulation program. "There is no legal basis for the state to hand over millions of hectares of land to entities that have no permits at all and then allow them to operate immediately. The Task Force's actions have actually created new disorder by facilitating illegal plantation practices," he said in an official statement received by InfoSAWIT on Saturday (12/13/2025). Infosawit
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Illegal palm oil plantations in Berbak and Sembilang National Park, Sumatra, removed in joint agency operation
Kota Jambi (ANTARA) - The Berbak and Sembilang National Park Office conducted a joint patrol to eradicate nearly 99 hectares of illegal palm oil plantations inside the national park area.
“Encroachment control is carried out to protect the peat ecosystem. This operation aims to curb encroachment and maintain the sustainability of the national park’s ecological functions,” TNBS Head Yunaidi said in Jambi on Saturday.
He said the operation was carried out from December 4 to 10, 2025, targeting encroachment in the protected peat swamp ecosystem.
The operation took place at the Sungai Rambut Resort, under National Park Management Section Region I, located administratively in Sungai Palas Hamlet, Rantau Rasau Village, Berbak sub-district, East Tanjung Jabung District.
Yunaidi said the operation involved 51 joint personnel from six institutions, including the TNBS Office, the Sumatra Forestry Law Enforcement Agency, the police, the army, sub-district and village authorities, and Forestry Police Community Partners.
Using chainsaws, machetes, and other equipment, the team cleared illegal palm oil plantations, eradicating approximately 98.88 hectares of land.
He emphasized that the area cleared during the operation was different from locations currently under legal prosecution. The TNBS Office confirmed that the eradication site is separate from an encroachment area involved in an ongoing forestry crime case with two suspects.
The clarification was provided to ensure accurate public information and to prevent the perception that the operation was directly linked to the ongoing legal process.
Berbak and Sembilang National Park is one of the most important peat swamp ecosystems in Sumatra and serves as a habitat for various wildlife species, including protected animals.
Encroachment and land clearing for plantations, including illegal palm oil cultivation, can damage ecosystem structures and increase the risk of forest and land fires.
The security operation forms part of the national park office’s regular efforts to curb encroachment, preserve peatland hydrology, protect biodiversity, and strengthen integrated, community-based patrol monitoring.
The TNBS Office expressed its appreciation to all parties involved and stressed the importance of cross-agency cooperation to ensure the conservation area remains protected. Antara News
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Building Climate-Resilient Farms: FORTASBI Guides Independent Smallholders Toward Low Emissions
PALMOILMAGAZINE, YOGYAKARTA — The impacts of climate change are becoming increasingly evident, creating serious challenges for independent oil palm smallholders. Unpredictable rainfall, prolonged droughts, and rising pest and disease attacks are putting the future of smallholder plantations at greater risk. In this situation, sustainability, adaptation, and mitigation efforts are essential to maintaining productivity and ensuring long-term resilience.
According to the Indonesian Sustainable Palm Oil Farmers Forum (FORTASBI), the organization has supported 60 independent smallholder groups throughout 2025, all of whom share a dual commitment: improving productivity while implementing sustainable farming practices. FORTASBI considers this commitment a crucial foundation in facing climate-related threats on the ground.
FORTASBI has been actively strengthening the climate-mitigation capacity of its members. Throughout the year, the organization has conducted various trainings, including regenerative agriculture, Carbon Training of Trainers (ToT), and workshops on carbon footprint assessment and greenhouse gas (GHG) reduction for hundreds of farmers. These activities aim to equip smallholders with the skills to implement low-carbon plantation management. Palm Oil Magazine
Solidaridad and Propcom Plus to Partner Enugu Govt On Sustainable Oil Palm Production
An international civil society group, Solidaridad, in partnership with Propcom Plus, a climate-smart agricultural programme powered by the United Kingdom (UK) Foreign, Commonwealth and Development Office (FCDO), is supporting Enugu State government in the development of a sustainable oil palm policy.
Solidaridad, which operates in over 40 countries across five continents, has been in existence for over 55 years, working to create resilient communities and sustainable supply chains and promoting sustainable land-use planning and production in oil palm.
In partnership with Propcom Plus, the organisation concluded a stakeholder engagement on Thursday in Enugu, as part of ongoing consultations to support the development of a sustainable oil palm policy for the state government.
The joint efforts are geared toward the formulation and adoption of the Enugu State Sustainable Oil Palm Policy (ESSOP).
At the event, Solidaridad programme manager, Mr Kene Onukwube, explained that the policy is designed to promote inclusive, climate-resilient and environmentally sustainable oil palm production in the state, with the goals of enhancing productivity, reducing deforestation and improving the livelihoods of smallholder farmers.
He hinted that Solidaridad implements the National Initiative for Sustainable and Climate-Smart Oil Palm Smallholders (NISCOPS) in Akwa Ibom, Cross River, Enugu and Kogi states.
“The programme is improving land-use practices, ensuring that more oil palm landscapes are sustainably managed and climate-resilient.
“It is also increasing the incomes of smallholder farmers and creating exclusive markets for sustainably produced palm oil,” he said.
In his remark, Enugu State Commissioner for lands, Barrister Chimaobi Okorie, thanked Solidaridad and its partners for their interventions in the state, assuring that the Governor Peter Mbah-led administration is fully committed to ensuring that an acceptable ESSOP document is put in place.
Participants at the consultative engagement included representatives from the state ministries of land, environment, trade and commerce, and agriculture as well as the Oil Palm Growers Association of Nigeria (OPGAN), the National Palm Produce Association of Nigeria (NPPAN), traditional rulers, and civil society organisations. Leadership NG
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Presco acquires 10,000 hectares Nsadop, Boki plantations in new expansion drive
Nigeria’s largest oil palm producer, Presco Plc, said today it’s acquiring 10,000 hectares across the Nsadop and Boki plantations in Cross River State in its latest expansion move.
The palm oil maker said the acquisition will significantly expand its production footprint and strengthen the company’s ability to meet the rapidly growing domestic demand for edible oil products.
It also sees the new move unlocking new agronomic potential while securing a broader raw material base to support higher processing and refining throughput across Presco’s value chain.
“This acquisition is a decisive execution of the commitments we made to our shareholders,” Reji George, managing director and CEO of Presco Plc said.
The Edo-based crude oil palm maker has been on an aggressive expansion strategy as it acquires Ghana Oil Development Company (GOPDC) and Saro Oil Palm Limited (SOP) in a combined deal worth $171.6 million.
The renewed expansion drive led to the opening of a N237 billion rights issue targeted at existing shareholders to fund the various acquisitions.
“Nsadop and Boki are strategically located estates that complement our existing operations and expand the scale required to power our mills and refineries at higher capacity,” George said.
“This move is not only about expanding land, it is about strengthening our leadership, securing long-term supply, and reinforcing our belief in the future of Nigeria’s agribusiness sector,” he added.
Analysts see the acquisitions playing a significant role in helping Presco advance its profitability streak while maintaining its upward growth trajectory. Business DayNG
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Handover of illegal palm oil and mining operations to PT Agrinas Palma Nusantara does not solve problems of legality says PUSTAKA ALAM
InfoSAWIT, JAKARTA – December 12, 2025 — The Forest Area Enforcement Task Force (PKH Task Force) reported that it had collected fines totaling Rp 38.6 trillion from 71 palm oil and mining companies operating without permits in forest areas. As of December 8, 2025, enforcement had covered an area of 3,771,467.31 hectares. Of this total area, 1,504,625.21 hectares were transferred to the state-owned company, PT Agrinas Palma Nusantara.
However, this move has drawn sharp criticism. The Center for the Study and Advocacy of Natural Resources Law (PUSTAKA ALAM) believes that the handover of the cleared land to PT Agrinas Palma Nusantara has actually created new problems.
This is because the company allegedly lacks the required permits—including a KKPR/Location Permit, a Mining Business License (IUP), environmental approval and AMDAL (Environmental Impact Assessment), as well as a forest area release permit and HGU (HGU) permit.
According to the Director of PUSTAKA ALAM, Muhamad Zainal Arifin, this action raises major questions about the direction and objectives of the forest area regulation program. "There is no legal basis for the state to hand over millions of hectares of land to entities that have no permits at all and then allow them to operate immediately. The Task Force's actions have actually created new disorder by facilitating illegal plantation practices," he said in an official statement received by InfoSAWIT on Saturday (12/13/2025). Infosawit
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Illegal palm oil plantations in Berbak and Sembilang National Park, Sumatra, removed in joint agency operation
Kota Jambi (ANTARA) - The Berbak and Sembilang National Park Office conducted a joint patrol to eradicate nearly 99 hectares of illegal palm oil plantations inside the national park area.
“Encroachment control is carried out to protect the peat ecosystem. This operation aims to curb encroachment and maintain the sustainability of the national park’s ecological functions,” TNBS Head Yunaidi said in Jambi on Saturday.
He said the operation was carried out from December 4 to 10, 2025, targeting encroachment in the protected peat swamp ecosystem.
The operation took place at the Sungai Rambut Resort, under National Park Management Section Region I, located administratively in Sungai Palas Hamlet, Rantau Rasau Village, Berbak sub-district, East Tanjung Jabung District.
Yunaidi said the operation involved 51 joint personnel from six institutions, including the TNBS Office, the Sumatra Forestry Law Enforcement Agency, the police, the army, sub-district and village authorities, and Forestry Police Community Partners.
Using chainsaws, machetes, and other equipment, the team cleared illegal palm oil plantations, eradicating approximately 98.88 hectares of land.
He emphasized that the area cleared during the operation was different from locations currently under legal prosecution. The TNBS Office confirmed that the eradication site is separate from an encroachment area involved in an ongoing forestry crime case with two suspects.
The clarification was provided to ensure accurate public information and to prevent the perception that the operation was directly linked to the ongoing legal process.
Berbak and Sembilang National Park is one of the most important peat swamp ecosystems in Sumatra and serves as a habitat for various wildlife species, including protected animals.
Encroachment and land clearing for plantations, including illegal palm oil cultivation, can damage ecosystem structures and increase the risk of forest and land fires.
The security operation forms part of the national park office’s regular efforts to curb encroachment, preserve peatland hydrology, protect biodiversity, and strengthen integrated, community-based patrol monitoring.
The TNBS Office expressed its appreciation to all parties involved and stressed the importance of cross-agency cooperation to ensure the conservation area remains protected. Antara News
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Building Climate-Resilient Farms: FORTASBI Guides Independent Smallholders Toward Low Emissions
PALMOILMAGAZINE, YOGYAKARTA — The impacts of climate change are becoming increasingly evident, creating serious challenges for independent oil palm smallholders. Unpredictable rainfall, prolonged droughts, and rising pest and disease attacks are putting the future of smallholder plantations at greater risk. In this situation, sustainability, adaptation, and mitigation efforts are essential to maintaining productivity and ensuring long-term resilience.
According to the Indonesian Sustainable Palm Oil Farmers Forum (FORTASBI), the organization has supported 60 independent smallholder groups throughout 2025, all of whom share a dual commitment: improving productivity while implementing sustainable farming practices. FORTASBI considers this commitment a crucial foundation in facing climate-related threats on the ground.
FORTASBI has been actively strengthening the climate-mitigation capacity of its members. Throughout the year, the organization has conducted various trainings, including regenerative agriculture, Carbon Training of Trainers (ToT), and workshops on carbon footprint assessment and greenhouse gas (GHG) reduction for hundreds of farmers. These activities aim to equip smallholders with the skills to implement low-carbon plantation management. Palm Oil Magazine
December 12, 2025
Indonesian companies pledge action against gender-based violence and harassment at work
Indonesian companies signed the Zero Tolerance for Gender-Based Violence and Harassment Pledge, supported by the International Labour Organization (ILO) and the Indonesia Business Coalition for Women’s Empowerment (IBCWE).
JAKARTA, Indonesia (ILO News) — Indonesian workers remain vulnerable to violence and harassment in the workplace. A survey by the International Labour Organization (ILO) revealed that more than 70 percent of workers in Indonesia have experienced or become victims of some form of violence or harassment at work. This underscores the urgent need for companies to foster safe, respectful and productive environments by establishing and enforcing workplace policies that guarantee freedom from such practices.
Against this backdrop, the ILO, in collaboration with the Indonesia Business Coalition for Women’s Empowerment (IBCWE), convened the Leaders’ Gathering under the theme “Building a Workplace Free from Violence and Harassment” in Jakarta today (11/12). Held in conjunction with the global 16 Days of Activism against Gender-Based Violence campaign, the event brought together more than 20 leading companies from diverse sectors, including manufacturing, electronics, garment and footwear and palm oil.
A key highlight of the event was the signing of the Zero Tolerance for Gender-Based Violence and Harassment (GBVH) Pledge by participating businesses, symbolizing the collective commitment of business leaders to intensify efforts to prevent workplace violence and harassment. Through this pledge, they formally affirmed their dedication to building safe and dignified workplaces free from all forms of violence and harassment, including gender-based violence.
The pledge further reflects business support for strengthened prevention and response measures, the promotion of equitable and inclusive work cultures, the establishment of safe and fear-free reporting mechanisms and collaboration with relevant stakeholders to ensure effective implementation in line with company contexts and applicable regulations. Importantly, this pledge aligns with ILO Convention No. 190 on Violence and Harassment, adopted in 2019, which is the first international treaty to recognize the universal right to a world of work free from violence and harassment.
Myra Hanartani, Head of the Regulatory Committee of the Indonesian Employers Association (Apindo), underscored the business community’s commitment to building workplaces free from violence and harassment. With support from the ILO, Apindo published the Guidelines for the Prevention and Handling of Violence and Sexual Harassment in the Workplace in 2022 to provide companies with practical tools for action. ILO
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Seals Palm Oil Plantation Suspected of Causing Floods in Central Tapanuli
TEMPO.CO, Jakarta - The Ministry of Environment (KLH) has sealed the PT Tri Bahtera Srikandi (PT TBS) palm oil plantation, a subsidiary of PT Sago Nauli Plantation (PT SNP) in Tapanuli Tengah, North Sumatra, which is suspected to have contributed to flooding at the end of last November. The Minister of Environment, Hanif Faisol Nurofiq, stated that the operation of the plantation and its factory, which are at risk of worsening the hydrological conditions, must be temporarily halted, while ensuring compliance with environmental regulations.
"This step is a strengthening of government supervision over business activities that potentially affect water management and public safety," he said in a written statement on Thursday, December 11, 2025.
Before installing supervision signs at the PT TBS work area, the ministry officers had monitored several points in North Sumatra after extreme rainfall. The monitoring team conducted field verifications and found indications of land management practices that need clarification. The signs will be installed once TBS's environmental information and documents have been verified.
"This sealing is not a final punishment, but the initial step to ensure that all environmental obligations are fulfilled and the company's activities do not worsen the ecological conditions around it," said Hanif.
The authorities have officially requested information from PT SNP as the parent company of PT TBS. The management was asked to submit Environmental Impact Assessments (AMDAL), environmental permits, and evidence of the implementation of environmental management and monitoring measures. The ministry inspectors will assess the company's compliance with administrative and technical requirements, including the implementation of soil conservation practices, drainage management, and relevant erosion mitigation efforts related to flood control. Tempo
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Wasco Greenergy seeks clearer Indonesian rules before committing to major biomass investments
Kuala Lumpur: Renewable-energy equipment supplier Wasco Greenergy Bhd (KL:GENERGY) said it needs clearer policies in Indonesia—its largest revenue contributor—before committing to major investments in biomass steam-energy systems. Indonesia accounted for 49% of the company’s revenue for the financial year ended Dec 31, 2024, reports The Edge Malaysia.
Following its listing on Bursa Malaysia’s Main Market, the company plans to expand its Indonesia operations by opening a sales office in Jakarta and establishing service centres in Pekanbaru and Sulawesi. This expansion will require leasing and upgrading facilities, purchasing equipment, hiring local staff and adding vehicles for service and logistics.
Chief executive officer Lee Yee Chong said that although Indonesia supports biomass energy, biodiesel use and plantation expansion, clearer policy direction is needed to guide the company’s long-term investments. He said Wasco Greenergy will continue working closely with customers and government agencies to understand expected developments.
Lee noted that both Malaysia and Indonesia have significant agricultural waste, making biomass a viable energy source. “Industries here depend heavily on steam, and they produce a lot of waste that can be converted into useful clean energy,” he said.
He added that Indonesia’s move towards B50 biodiesel will further increase palm oil demand, and authorities plan to allocate another 600,000 hectares of land for palm-oil-related activities.
In Malaysia, the company’s second-largest market, the biomass sector has remained underdeveloped, but Lee said this could change with new renewable-energy programmes. The government will introduce 300MW under the Feed-in-Tariff scheme next year, with half of that capacity designated for biomass. Lee said Wasco Greenergy’s strength lies in providing a full range of equipment, from biomass processing systems to boilers and Shinko steam turbine generator systems, enabling it to support palm oil mills as well as other industries aiming to reduce fossil fuel use.
He said demand is rising not only from palm oil mills but also from general industries seeking to cut carbon emissions by switching to biomass technologies. The company expects its renewable-energy business to be evenly distributed between Malaysia and Indonesia, with additional contributions from Latin America and Africa.
As at end-September, Wasco Greenergy’s order book totalled about RM249 million, of which 80% to 90% consists of renewable-energy contracts. The company currently has 31 ongoing steam-energy system projects and 81 active orders for steam turbine generators, with capacities ranging from 4.5 to 90 tonnes per hour and 0.50MW to 3.50MW.
The company plans a dividend payout ratio of 20% to 40%, depending on working capital and investment requirements.
Wasco Greenergy’s shares opened 5% lower at 95 sen on their debut, compared with the IPO price of RM1, and were trading at 94.5 sen by 11.43am, down 5.5%. Bioenergy Times
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Indonesia aims to end diesel imports in 2026 with expanded biodiesel program
JAKARTA, Dec. 12 (Xinhua) -- Indonesia aims to halt diesel fuel imports in 2026 as the government accelerates its biodiesel program and boosts domestic refinery capacity, marking a major step toward strengthening energy security and reducing reliance on foreign fuel supplies.
A key measure in this effort is the planned nationwide rollout of B50, a diesel blend containing 50 percent palm-oil-based biodiesel. The government expects to begin introducing B50 in the second half of 2026, building on the country's longstanding biodiesel mandate and representing its most ambitious shift yet toward renewable energy.
Energy and Mineral Resources Minister Bahlil Lahadalia said the combination of the B50 program and refinery upgrades puts Indonesia in a strong position to eliminate diesel imports next year.
"We are moving forward with the mandatory B50 program and preparing to inaugurate the Balikpapan Refinery Development Master Plan (RDMP). These two factors support our target to stop importing diesel in 2026," Lahadalia told local media.
The Balikpapan RDMP, one of Indonesia's largest downstream energy investments, is central to this transition. Once fully completed, the refinery will increase its processing capacity by 100,000 barrels per day to 360,000 barrels per day. It is operated by PT Kilang Pertamina Balikpapan, a subsidiary of PT Kilang Pertamina International.
The upgraded capacity is expected to significantly boost domestic fuel production, reduce diesel import needs, and enhance national fuel resilience.
Indonesia has long relied on imported diesel for transportation, power generation, and industrial activities. The government has sought for years to curb this dependency, particularly during periods of heightened global oil prices.
The B50 policy further advances Indonesia's use of biodiesel made from fatty-acid methyl ester (FAME), largely derived from crude palm oil. As one of the country's key export commodities, palm oil plays a crucial role in supporting farmer incomes, strengthening downstream industries, and diversifying the national energy mix.
According to the Ministry of Energy and Mineral Resources, the biodiesel program saved Indonesia 673.73 trillion rupiah (about 40.7 billion U.S. dollars) in foreign exchange between 2020 and 2025 by reducing fossil diesel imports and increasing domestic palm-oil utilization. The program also created jobs across the plantation and processing sectors.
Lahadalia said the economic gains will expand further once B50 is fully adopted. In 2026 alone, the policy is expected to save 179.28 trillion rupiah (about 10.84 billion U.S. dollars) in foreign exchange.
Indonesia currently enforces a nationwide B40 biodiesel mandate. The shift to B50 will place the country among the world's leading adopters of large-scale biodiesel use and reinforce its role as a major producer of sustainable palm-based energy. Xinhua
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Malaysia to stop plantation expansions to reduce human–wildlife conflicts
SUNGKAI: The government will no longer permit the opening of new land for plantation purposes, in a move aimed at reducing human–wildlife conflicts caused by shrinking forest habitats.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said expanding plantation areas through deforestation would worsen encounters between humans and protected wildlife, such as tigers and tapirs, which are increasingly forced into populated areas due to habitat loss.
"All our economic activities should not cause further deforestation. Instead, we must focus on increasing productivity within land that has already been developed.
"In my discussions with the Natural Resources and Environmental Sustainability Ministry (NRES), I emphasised the importance of preserving our forests.
"If we fail to do so, these animals will lose their habitats and end up in conflict with humans. Malaysia made a commitment to the United Nations in 1992 to ensure that our natural forest cover never falls below 50 per cent.
"In the context of plantations, I've told the ministry that we already have enough land. What we need to prioritise is not opening new areas. Opening new areas leads to human–wildlife conflicts," he said. NST
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Red Palm Oil Gains Spotlight For Diabetes-Friendly Nutrition
Malaysia’s push into science-driven nutraceuticals took centre stage at PIPOC 2025, where red palm oil was highlighted as a promising tool for diabetes-friendly diets amid growing regional concerns over metabolic health.
Speaking at the congress, Profes Lipid Sdn Bhd founder Steven JJ Lee said red palm oil’s carotenoids and tocotrienols give it functional properties that appeal to consumers seeking better blood-sugar management.
“Red palm oil helps reduce sugar spikes,” he explained, noting its relevance in moderating the glycaemic impact of rice consumption, a key issue for Malaysians.
Lee’s work is rooted in more than a decade of experience in palm refinery engineering and food technology, a background that eventually led him to establish a dedicated red palm oil processing facility in Semenyih. The plant supports the production of Harvist Red Palm Oil, which now serves domestic consumers and export markets including the United States, Singapore, and Taiwan.
He emphasised that the sector’s scientific progress is closely tied to institutional support.
“MPOB gave us a great deal of support. Their technology strengthened our company’s image and elevated our presence, especially in markets that value scientific credibility,” he said.
Access to research infrastructure and analytical facilities has helped companies pursue stronger validation for palm-based functional ingredients.
The discussion also touched on international perceptions of palm products, which Lee said have often been shaped by misinformation. However, he noted that attitudes are shifting as more consumers in markets such as the US adopt evidence-based dietary choices.
“With new food guidelines emerging in the United States, things are shifting,” he observed. Business Today
Indonesian companies pledge action against gender-based violence and harassment at work
Indonesian companies signed the Zero Tolerance for Gender-Based Violence and Harassment Pledge, supported by the International Labour Organization (ILO) and the Indonesia Business Coalition for Women’s Empowerment (IBCWE).
JAKARTA, Indonesia (ILO News) — Indonesian workers remain vulnerable to violence and harassment in the workplace. A survey by the International Labour Organization (ILO) revealed that more than 70 percent of workers in Indonesia have experienced or become victims of some form of violence or harassment at work. This underscores the urgent need for companies to foster safe, respectful and productive environments by establishing and enforcing workplace policies that guarantee freedom from such practices.
Against this backdrop, the ILO, in collaboration with the Indonesia Business Coalition for Women’s Empowerment (IBCWE), convened the Leaders’ Gathering under the theme “Building a Workplace Free from Violence and Harassment” in Jakarta today (11/12). Held in conjunction with the global 16 Days of Activism against Gender-Based Violence campaign, the event brought together more than 20 leading companies from diverse sectors, including manufacturing, electronics, garment and footwear and palm oil.
A key highlight of the event was the signing of the Zero Tolerance for Gender-Based Violence and Harassment (GBVH) Pledge by participating businesses, symbolizing the collective commitment of business leaders to intensify efforts to prevent workplace violence and harassment. Through this pledge, they formally affirmed their dedication to building safe and dignified workplaces free from all forms of violence and harassment, including gender-based violence.
The pledge further reflects business support for strengthened prevention and response measures, the promotion of equitable and inclusive work cultures, the establishment of safe and fear-free reporting mechanisms and collaboration with relevant stakeholders to ensure effective implementation in line with company contexts and applicable regulations. Importantly, this pledge aligns with ILO Convention No. 190 on Violence and Harassment, adopted in 2019, which is the first international treaty to recognize the universal right to a world of work free from violence and harassment.
Myra Hanartani, Head of the Regulatory Committee of the Indonesian Employers Association (Apindo), underscored the business community’s commitment to building workplaces free from violence and harassment. With support from the ILO, Apindo published the Guidelines for the Prevention and Handling of Violence and Sexual Harassment in the Workplace in 2022 to provide companies with practical tools for action. ILO
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Seals Palm Oil Plantation Suspected of Causing Floods in Central Tapanuli
TEMPO.CO, Jakarta - The Ministry of Environment (KLH) has sealed the PT Tri Bahtera Srikandi (PT TBS) palm oil plantation, a subsidiary of PT Sago Nauli Plantation (PT SNP) in Tapanuli Tengah, North Sumatra, which is suspected to have contributed to flooding at the end of last November. The Minister of Environment, Hanif Faisol Nurofiq, stated that the operation of the plantation and its factory, which are at risk of worsening the hydrological conditions, must be temporarily halted, while ensuring compliance with environmental regulations.
"This step is a strengthening of government supervision over business activities that potentially affect water management and public safety," he said in a written statement on Thursday, December 11, 2025.
Before installing supervision signs at the PT TBS work area, the ministry officers had monitored several points in North Sumatra after extreme rainfall. The monitoring team conducted field verifications and found indications of land management practices that need clarification. The signs will be installed once TBS's environmental information and documents have been verified.
"This sealing is not a final punishment, but the initial step to ensure that all environmental obligations are fulfilled and the company's activities do not worsen the ecological conditions around it," said Hanif.
The authorities have officially requested information from PT SNP as the parent company of PT TBS. The management was asked to submit Environmental Impact Assessments (AMDAL), environmental permits, and evidence of the implementation of environmental management and monitoring measures. The ministry inspectors will assess the company's compliance with administrative and technical requirements, including the implementation of soil conservation practices, drainage management, and relevant erosion mitigation efforts related to flood control. Tempo
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Wasco Greenergy seeks clearer Indonesian rules before committing to major biomass investments
Kuala Lumpur: Renewable-energy equipment supplier Wasco Greenergy Bhd (KL:GENERGY) said it needs clearer policies in Indonesia—its largest revenue contributor—before committing to major investments in biomass steam-energy systems. Indonesia accounted for 49% of the company’s revenue for the financial year ended Dec 31, 2024, reports The Edge Malaysia.
Following its listing on Bursa Malaysia’s Main Market, the company plans to expand its Indonesia operations by opening a sales office in Jakarta and establishing service centres in Pekanbaru and Sulawesi. This expansion will require leasing and upgrading facilities, purchasing equipment, hiring local staff and adding vehicles for service and logistics.
Chief executive officer Lee Yee Chong said that although Indonesia supports biomass energy, biodiesel use and plantation expansion, clearer policy direction is needed to guide the company’s long-term investments. He said Wasco Greenergy will continue working closely with customers and government agencies to understand expected developments.
Lee noted that both Malaysia and Indonesia have significant agricultural waste, making biomass a viable energy source. “Industries here depend heavily on steam, and they produce a lot of waste that can be converted into useful clean energy,” he said.
He added that Indonesia’s move towards B50 biodiesel will further increase palm oil demand, and authorities plan to allocate another 600,000 hectares of land for palm-oil-related activities.
In Malaysia, the company’s second-largest market, the biomass sector has remained underdeveloped, but Lee said this could change with new renewable-energy programmes. The government will introduce 300MW under the Feed-in-Tariff scheme next year, with half of that capacity designated for biomass. Lee said Wasco Greenergy’s strength lies in providing a full range of equipment, from biomass processing systems to boilers and Shinko steam turbine generator systems, enabling it to support palm oil mills as well as other industries aiming to reduce fossil fuel use.
He said demand is rising not only from palm oil mills but also from general industries seeking to cut carbon emissions by switching to biomass technologies. The company expects its renewable-energy business to be evenly distributed between Malaysia and Indonesia, with additional contributions from Latin America and Africa.
As at end-September, Wasco Greenergy’s order book totalled about RM249 million, of which 80% to 90% consists of renewable-energy contracts. The company currently has 31 ongoing steam-energy system projects and 81 active orders for steam turbine generators, with capacities ranging from 4.5 to 90 tonnes per hour and 0.50MW to 3.50MW.
The company plans a dividend payout ratio of 20% to 40%, depending on working capital and investment requirements.
Wasco Greenergy’s shares opened 5% lower at 95 sen on their debut, compared with the IPO price of RM1, and were trading at 94.5 sen by 11.43am, down 5.5%. Bioenergy Times
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Indonesia aims to end diesel imports in 2026 with expanded biodiesel program
JAKARTA, Dec. 12 (Xinhua) -- Indonesia aims to halt diesel fuel imports in 2026 as the government accelerates its biodiesel program and boosts domestic refinery capacity, marking a major step toward strengthening energy security and reducing reliance on foreign fuel supplies.
A key measure in this effort is the planned nationwide rollout of B50, a diesel blend containing 50 percent palm-oil-based biodiesel. The government expects to begin introducing B50 in the second half of 2026, building on the country's longstanding biodiesel mandate and representing its most ambitious shift yet toward renewable energy.
Energy and Mineral Resources Minister Bahlil Lahadalia said the combination of the B50 program and refinery upgrades puts Indonesia in a strong position to eliminate diesel imports next year.
"We are moving forward with the mandatory B50 program and preparing to inaugurate the Balikpapan Refinery Development Master Plan (RDMP). These two factors support our target to stop importing diesel in 2026," Lahadalia told local media.
The Balikpapan RDMP, one of Indonesia's largest downstream energy investments, is central to this transition. Once fully completed, the refinery will increase its processing capacity by 100,000 barrels per day to 360,000 barrels per day. It is operated by PT Kilang Pertamina Balikpapan, a subsidiary of PT Kilang Pertamina International.
The upgraded capacity is expected to significantly boost domestic fuel production, reduce diesel import needs, and enhance national fuel resilience.
Indonesia has long relied on imported diesel for transportation, power generation, and industrial activities. The government has sought for years to curb this dependency, particularly during periods of heightened global oil prices.
The B50 policy further advances Indonesia's use of biodiesel made from fatty-acid methyl ester (FAME), largely derived from crude palm oil. As one of the country's key export commodities, palm oil plays a crucial role in supporting farmer incomes, strengthening downstream industries, and diversifying the national energy mix.
According to the Ministry of Energy and Mineral Resources, the biodiesel program saved Indonesia 673.73 trillion rupiah (about 40.7 billion U.S. dollars) in foreign exchange between 2020 and 2025 by reducing fossil diesel imports and increasing domestic palm-oil utilization. The program also created jobs across the plantation and processing sectors.
Lahadalia said the economic gains will expand further once B50 is fully adopted. In 2026 alone, the policy is expected to save 179.28 trillion rupiah (about 10.84 billion U.S. dollars) in foreign exchange.
Indonesia currently enforces a nationwide B40 biodiesel mandate. The shift to B50 will place the country among the world's leading adopters of large-scale biodiesel use and reinforce its role as a major producer of sustainable palm-based energy. Xinhua
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Malaysia to stop plantation expansions to reduce human–wildlife conflicts
SUNGKAI: The government will no longer permit the opening of new land for plantation purposes, in a move aimed at reducing human–wildlife conflicts caused by shrinking forest habitats.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said expanding plantation areas through deforestation would worsen encounters between humans and protected wildlife, such as tigers and tapirs, which are increasingly forced into populated areas due to habitat loss.
"All our economic activities should not cause further deforestation. Instead, we must focus on increasing productivity within land that has already been developed.
"In my discussions with the Natural Resources and Environmental Sustainability Ministry (NRES), I emphasised the importance of preserving our forests.
"If we fail to do so, these animals will lose their habitats and end up in conflict with humans. Malaysia made a commitment to the United Nations in 1992 to ensure that our natural forest cover never falls below 50 per cent.
"In the context of plantations, I've told the ministry that we already have enough land. What we need to prioritise is not opening new areas. Opening new areas leads to human–wildlife conflicts," he said. NST
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Red Palm Oil Gains Spotlight For Diabetes-Friendly Nutrition
Malaysia’s push into science-driven nutraceuticals took centre stage at PIPOC 2025, where red palm oil was highlighted as a promising tool for diabetes-friendly diets amid growing regional concerns over metabolic health.
Speaking at the congress, Profes Lipid Sdn Bhd founder Steven JJ Lee said red palm oil’s carotenoids and tocotrienols give it functional properties that appeal to consumers seeking better blood-sugar management.
“Red palm oil helps reduce sugar spikes,” he explained, noting its relevance in moderating the glycaemic impact of rice consumption, a key issue for Malaysians.
Lee’s work is rooted in more than a decade of experience in palm refinery engineering and food technology, a background that eventually led him to establish a dedicated red palm oil processing facility in Semenyih. The plant supports the production of Harvist Red Palm Oil, which now serves domestic consumers and export markets including the United States, Singapore, and Taiwan.
He emphasised that the sector’s scientific progress is closely tied to institutional support.
“MPOB gave us a great deal of support. Their technology strengthened our company’s image and elevated our presence, especially in markets that value scientific credibility,” he said.
Access to research infrastructure and analytical facilities has helped companies pursue stronger validation for palm-based functional ingredients.
The discussion also touched on international perceptions of palm products, which Lee said have often been shaped by misinformation. However, he noted that attitudes are shifting as more consumers in markets such as the US adopt evidence-based dietary choices.
“With new food guidelines emerging in the United States, things are shifting,” he observed. Business Today
December 11, 2025
IATA warns poorly designed SAF mandates threaten decarbonisation
The International Air Transport Association (IATA) has released updated estimates for sustainable aviation fuel (SAF) production, highlighting significant challenges for the aviation industry in meeting decarbonisation targets.
According to IATA, SAF production in 2025 is expected to reach 1.9 million tonnes (2.4 billion litres), doubling from the 1 million tonnes produced in 2024. However, growth is projected to slow in 2026, reaching just 2.4 million tonnes. SAF will account for only 0.6% of total jet fuel consumption in 2025, rising to 0.8% in 2026, while the SAF premium is expected to add $3.6 billion (€3.1 billion) in fuel costs for the airline industry in 2025.
This downward revision from earlier forecasts reflects insufficient policy support, high SAF prices — up to five times the cost of fossil-based jet fuel in mandated markets — and underutilised production capacity.
“SAF production growth fell short of expectations as poorly designed mandates stalled momentum in the fledgling SAF industry.
“If the goal of SAF mandates was to slow progress and increase prices, policymakers knocked it out of the park. But if the objective is to increase SAF production to further decarbonisation, regulators need to learn from failure and work with the airline industry to design incentives that will actually work,” said Willie Walsh, IATA director general.
Mandates in Europe and the UK have failed to accelerate SAF adoption. In Europe, the ReFuelEU Aviation framework has sharply increased costs amid limited SAF capacity and oligopolistic supply chains, forcing airlines to pay up to five times the price of conventional jet fuel without guaranteed supply or consistent documentation. In the UK, SAF mandates have triggered similar price spikes, leaving airlines to absorb significant costs.
“Europe’s fragmented policies distort markets, slow investment, and undermine efforts to scale SAF production. Regulators must recognise the current approach is not working and urgently correct course. Announcements alone are not enough – action is required,” Walsh added.
“Current policies are not producing the desired effect. Regulators must ensure SAF production is viable long-term, achieve scale, and bring costs down. Mandates alone have done the opposite, and it would be outrageous to repeat the same mistakes with e-SAF,” said Marie Owens Thomsen, IATA senior vice-president for sustainability and chief economist. Biofuels News
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ICAO Approves Palm Oil Waste as a Base for Bioavtur
TEMPO.CO, Jakarta - The International Civil Aviation Organization (ICAO) has approved the use of palm oil waste or Palm Oil Mill Effluent (POME) as a raw material for bioavtur. Indonesia's Ministry of Transportation stated that this is a significant achievement in the effort to develop environmentally friendly aviation fuel.
The Director General of Air Transportation, Lukman F. Laisa, stated that the result was announced after Indonesia submitted the default Life Cycle Assessment (LCA) value calculation for the raw material. According to him, ICAO's recognition is a strategic milestone for Indonesia to enter the global bioavtur market.
"This approval confirms that POME is recognized as a sustainable aviation fuel raw material with highly competitive emission values, capable of reducing emissions by up to 80 percent compared to fossil fuels," Lukman said, as quoted from a written statement on Thursday, December 11, 2025.
He mentioned that Indonesia submitted the Core LCA Default Value through Indonesian representatives at ICAO, namely the Committee on Aviation Environmental Protection. The submission was made in January 2025 after the Directorate General of Air Transportation coordinated with the Ministry of Foreign Affairs and collaborated with two Indonesian partners, Indonesia Palm Oil Strategic Studies and PT Tripatra.
Following a technical evaluation by independent experts from the University of Hasselt in Belgium and verification by the ICAO Council in late November 2025, the emission value of POME-based sustainable aviation fuel (SAF) was determined to be 18.1 grams of CO2 per megajoule (CO/MJ). This figure is stated in the official ICAO document, CORSIA Default Life Cycle Emissions Values for CORSIA Eligible Fuels.
POME, a byproduct of crude palm oil processing, is included in ICAO's positive list as a raw material with significant potential to reduce emissions. "With a large raw material potential, Indonesia has a strong opportunity to become a competitive SAF supplier in Asia," Lukman said.
Although ICAO's recognition opens up great opportunities for Indonesia's bioavtur industry, Lukman stated that the government needs to ensure sustainable POME supply, have a clear supply chain, and meet global sustainability standards.
Therefore, he encourages support from various parties to ensure consistent production of POME-based bioavtur. "Collaboration in the form of policies, incentives, investments, and the development of supporting facilities is crucial," he said. Tempo
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German cabinet sets 59% GHG quota by 2040, bans double-counting, adds SAF mandate
HIGHLIGHTS
The "Second Law for the Further Development of the Greenhouse Gas Reduction Quota" is designed to implement the EU's RED III directive and the ReFuelEU Aviation regulation into national law. It aims to provide investment security for producers of advanced biofuels and green hydrogen while cracking down on fraudulent imports that have plagued the market in recent years.
Market activity across the biofuels complex in recent weeks has been suppressed amid ongoing speculation about the expected timeline for implementing Germany's RED III bill. The German Cabinet was initially scheduled to discuss the legislation in the first week of October, with the aim of transposing it ahead of Jan. 1, 2026.
Subsequently, however, the Cabinet postponed reaching a decision on the bill week to week, amid a reported lack of consensus among the key ministries involved in drafting the bill.
As a result, the available window for the bill to pass this year through both the lower and upper houses of Germany's parliament, known respectively as the Bundestag and Bundesrat, has now become too tight. Consequently, the legislation will be passed into law in 2026, with most, but not all, policies within instructed to take effect retroactively from Jan. 1, 2026.
Ambitious quota trajectory
According to the draft text seen by S&P Global Energy, the headline GHG reduction obligation for fuel suppliers is expected to rise significantly from current levels. The law sets a fixed trajectory extending well beyond the previous 2030 horizon:
2026: 12%
2030: 25%
2035: 36%
2040: 59%
Read more SP Global
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German cabinet passes EU RED III
The German cabinet on 10 December approved legislation to implement the EU's Renewable Energy Directive (RED III) into national law.
This will adjust the greenhouse gas (GHG) reduction quota and abolish double counting of advanced fuels from 2026. But it is unlikely to pass remaining legislative processes in time for the EU's 1 January deadline.
The bill passed by the cabinet largely follows a draft dated 29 October that was leaked in November. The overall quota level will rise to 59pc by 2040. Aviation and marine fuels are exempt from the quota obligation.
The law will end the eligibility of palm oil products, most notably palm oil mill effluent (Pome), for compliance towards the GHG quota. This exclusion, and a requirement for fuel producers to allow on-site audits, will not come into effect until 2027, leaving 2026 as a transitional year.
The end of double counting for advanced biofuels removes a key point of market uncertainty. Under current rules, advanced biofuels can be counted as twice their energy value towards the GHG quota, provided the minimum sub-mandate for advanced fuels has been met. But the change to end double counting will apply to the entire compliance year and all subsequent years, meaning it will be retroactive to 1 January. The only exception is for fuels supplied prior to 1 January 2026.
The law will enter into force on the second day after publication in the Federal Law Gazette, with selected sections taking effect a day earlier for procedural reasons. Before that can happen, the bill must be submitted to the Germany's lower and upper parliaments for debate. The lower house's approval is not required, and the upper house could initiate changes. The bill can only be submitted to the Federal President for his signature once the upper house has given approval.
This process is likely to conclude in the first quarter of 2026.
Changes to sub-quotas, RFNBOs, biomethane
The sub-mandate for advanced biofuels, made from feedstocks listed in Annex IX of RED III, will rise to 9pc by 2040.
The mandate for renewable fuels of non-biological origin (RFNBOs) — such as e-fuels and green hydrogen — is higher will rise to 2.5pc of an obligated company's energy mix in 2034, and then to 8pc in 2040. The penalty for non-compliance is €120/GJ.
Imported biomethane can be counted towards the GHG quota, provided it meets certain conditions, such as a connection to the EU gas grid. The baseline emissions value is 94kg CO2e/GJ, aligned with the rest of the EU. The registration deadline with the main customs office is 1 June.
The market for GHG certificates reacted immediately. Other certificates for 2025 are trading around €20/t CO2e higher than the previous day, and prices for 2026 certificates are rising. Prices for 2025 certificates are rising, although they are unaffected by the change. They are seen as a substitute for 2027 certificates because excess 2025 compliance will be carried over.
Hydrotreated vegetable oil (HVO) could now play a central role in meeting the GHG quota, which can influence certificate prices. Demand for advanced HVO could increase significantly, as it can be counted without limit towards the GHG quota as a blending component and as a pure fuel and can be used in most of the existing diesel vehicle fleet.
The end of double counting could increase demand for non-advanced biodiesel grades, such as rapeseed-based RME and used cooking oil-based Ucome. Although the eligibility of these is capped to a certain percentage of a company's energy mix, this limit has not always been fully utilised in the past.
by Max Steinhau and Chloe Jardine/ Argus Media
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South Sumatra Police Chief Flags Dozens of Palm Oil Mills Operating Without Core Plantations
Inp.polri.go.id - Jakarta. South Sumatra Regional Police Chief Inspector General Andi R. Djajadi warned on Tuesday (9/12/2025) that 22 palm oil mills across the province are operating without core plantations, raising concerns over supply security and unlawful sourcing of fresh fruit bunches (FFB).
“They may have permits, but they have no guaranteed raw material supply from their own plantations,” he said, as quoted by antaranews.com.
The mills are located in Banyuasin, Muara Enim, Musi Rawas, and Musi Banyuasin. Chief Andi noted that the absence of core plantations increases the risk of unhealthy competition for FFB and encourages illegal practices, including theft.
“This situation can create alternative oil supply chains, known as ram sawit, which are often linked to illegal FFB transactions,” he said.
South Sumatra recorded 373 FFB theft cases in 2025, with 456 suspects named. Governor Herman Deru said the trend could undermine plantation investment confidence.
The province has 997,559 hectares of oil palm plantations managed by 277 companies. INP POLRI
IATA warns poorly designed SAF mandates threaten decarbonisation
The International Air Transport Association (IATA) has released updated estimates for sustainable aviation fuel (SAF) production, highlighting significant challenges for the aviation industry in meeting decarbonisation targets.
According to IATA, SAF production in 2025 is expected to reach 1.9 million tonnes (2.4 billion litres), doubling from the 1 million tonnes produced in 2024. However, growth is projected to slow in 2026, reaching just 2.4 million tonnes. SAF will account for only 0.6% of total jet fuel consumption in 2025, rising to 0.8% in 2026, while the SAF premium is expected to add $3.6 billion (€3.1 billion) in fuel costs for the airline industry in 2025.
This downward revision from earlier forecasts reflects insufficient policy support, high SAF prices — up to five times the cost of fossil-based jet fuel in mandated markets — and underutilised production capacity.
“SAF production growth fell short of expectations as poorly designed mandates stalled momentum in the fledgling SAF industry.
“If the goal of SAF mandates was to slow progress and increase prices, policymakers knocked it out of the park. But if the objective is to increase SAF production to further decarbonisation, regulators need to learn from failure and work with the airline industry to design incentives that will actually work,” said Willie Walsh, IATA director general.
Mandates in Europe and the UK have failed to accelerate SAF adoption. In Europe, the ReFuelEU Aviation framework has sharply increased costs amid limited SAF capacity and oligopolistic supply chains, forcing airlines to pay up to five times the price of conventional jet fuel without guaranteed supply or consistent documentation. In the UK, SAF mandates have triggered similar price spikes, leaving airlines to absorb significant costs.
“Europe’s fragmented policies distort markets, slow investment, and undermine efforts to scale SAF production. Regulators must recognise the current approach is not working and urgently correct course. Announcements alone are not enough – action is required,” Walsh added.
“Current policies are not producing the desired effect. Regulators must ensure SAF production is viable long-term, achieve scale, and bring costs down. Mandates alone have done the opposite, and it would be outrageous to repeat the same mistakes with e-SAF,” said Marie Owens Thomsen, IATA senior vice-president for sustainability and chief economist. Biofuels News
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ICAO Approves Palm Oil Waste as a Base for Bioavtur
TEMPO.CO, Jakarta - The International Civil Aviation Organization (ICAO) has approved the use of palm oil waste or Palm Oil Mill Effluent (POME) as a raw material for bioavtur. Indonesia's Ministry of Transportation stated that this is a significant achievement in the effort to develop environmentally friendly aviation fuel.
The Director General of Air Transportation, Lukman F. Laisa, stated that the result was announced after Indonesia submitted the default Life Cycle Assessment (LCA) value calculation for the raw material. According to him, ICAO's recognition is a strategic milestone for Indonesia to enter the global bioavtur market.
"This approval confirms that POME is recognized as a sustainable aviation fuel raw material with highly competitive emission values, capable of reducing emissions by up to 80 percent compared to fossil fuels," Lukman said, as quoted from a written statement on Thursday, December 11, 2025.
He mentioned that Indonesia submitted the Core LCA Default Value through Indonesian representatives at ICAO, namely the Committee on Aviation Environmental Protection. The submission was made in January 2025 after the Directorate General of Air Transportation coordinated with the Ministry of Foreign Affairs and collaborated with two Indonesian partners, Indonesia Palm Oil Strategic Studies and PT Tripatra.
Following a technical evaluation by independent experts from the University of Hasselt in Belgium and verification by the ICAO Council in late November 2025, the emission value of POME-based sustainable aviation fuel (SAF) was determined to be 18.1 grams of CO2 per megajoule (CO/MJ). This figure is stated in the official ICAO document, CORSIA Default Life Cycle Emissions Values for CORSIA Eligible Fuels.
POME, a byproduct of crude palm oil processing, is included in ICAO's positive list as a raw material with significant potential to reduce emissions. "With a large raw material potential, Indonesia has a strong opportunity to become a competitive SAF supplier in Asia," Lukman said.
Although ICAO's recognition opens up great opportunities for Indonesia's bioavtur industry, Lukman stated that the government needs to ensure sustainable POME supply, have a clear supply chain, and meet global sustainability standards.
Therefore, he encourages support from various parties to ensure consistent production of POME-based bioavtur. "Collaboration in the form of policies, incentives, investments, and the development of supporting facilities is crucial," he said. Tempo
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German cabinet sets 59% GHG quota by 2040, bans double-counting, adds SAF mandate
HIGHLIGHTS
- GHG quota to reduce fuel emissions by 59% by 2040
- Bans double-counting of advanced biofuels from 2026
- Introduces Sustainable Aviation Fuel mandate
The "Second Law for the Further Development of the Greenhouse Gas Reduction Quota" is designed to implement the EU's RED III directive and the ReFuelEU Aviation regulation into national law. It aims to provide investment security for producers of advanced biofuels and green hydrogen while cracking down on fraudulent imports that have plagued the market in recent years.
Market activity across the biofuels complex in recent weeks has been suppressed amid ongoing speculation about the expected timeline for implementing Germany's RED III bill. The German Cabinet was initially scheduled to discuss the legislation in the first week of October, with the aim of transposing it ahead of Jan. 1, 2026.
Subsequently, however, the Cabinet postponed reaching a decision on the bill week to week, amid a reported lack of consensus among the key ministries involved in drafting the bill.
As a result, the available window for the bill to pass this year through both the lower and upper houses of Germany's parliament, known respectively as the Bundestag and Bundesrat, has now become too tight. Consequently, the legislation will be passed into law in 2026, with most, but not all, policies within instructed to take effect retroactively from Jan. 1, 2026.
Ambitious quota trajectory
According to the draft text seen by S&P Global Energy, the headline GHG reduction obligation for fuel suppliers is expected to rise significantly from current levels. The law sets a fixed trajectory extending well beyond the previous 2030 horizon:
2026: 12%
2030: 25%
2035: 36%
2040: 59%
Read more SP Global
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German cabinet passes EU RED III
The German cabinet on 10 December approved legislation to implement the EU's Renewable Energy Directive (RED III) into national law.
This will adjust the greenhouse gas (GHG) reduction quota and abolish double counting of advanced fuels from 2026. But it is unlikely to pass remaining legislative processes in time for the EU's 1 January deadline.
The bill passed by the cabinet largely follows a draft dated 29 October that was leaked in November. The overall quota level will rise to 59pc by 2040. Aviation and marine fuels are exempt from the quota obligation.
The law will end the eligibility of palm oil products, most notably palm oil mill effluent (Pome), for compliance towards the GHG quota. This exclusion, and a requirement for fuel producers to allow on-site audits, will not come into effect until 2027, leaving 2026 as a transitional year.
The end of double counting for advanced biofuels removes a key point of market uncertainty. Under current rules, advanced biofuels can be counted as twice their energy value towards the GHG quota, provided the minimum sub-mandate for advanced fuels has been met. But the change to end double counting will apply to the entire compliance year and all subsequent years, meaning it will be retroactive to 1 January. The only exception is for fuels supplied prior to 1 January 2026.
The law will enter into force on the second day after publication in the Federal Law Gazette, with selected sections taking effect a day earlier for procedural reasons. Before that can happen, the bill must be submitted to the Germany's lower and upper parliaments for debate. The lower house's approval is not required, and the upper house could initiate changes. The bill can only be submitted to the Federal President for his signature once the upper house has given approval.
This process is likely to conclude in the first quarter of 2026.
Changes to sub-quotas, RFNBOs, biomethane
The sub-mandate for advanced biofuels, made from feedstocks listed in Annex IX of RED III, will rise to 9pc by 2040.
The mandate for renewable fuels of non-biological origin (RFNBOs) — such as e-fuels and green hydrogen — is higher will rise to 2.5pc of an obligated company's energy mix in 2034, and then to 8pc in 2040. The penalty for non-compliance is €120/GJ.
Imported biomethane can be counted towards the GHG quota, provided it meets certain conditions, such as a connection to the EU gas grid. The baseline emissions value is 94kg CO2e/GJ, aligned with the rest of the EU. The registration deadline with the main customs office is 1 June.
The market for GHG certificates reacted immediately. Other certificates for 2025 are trading around €20/t CO2e higher than the previous day, and prices for 2026 certificates are rising. Prices for 2025 certificates are rising, although they are unaffected by the change. They are seen as a substitute for 2027 certificates because excess 2025 compliance will be carried over.
Hydrotreated vegetable oil (HVO) could now play a central role in meeting the GHG quota, which can influence certificate prices. Demand for advanced HVO could increase significantly, as it can be counted without limit towards the GHG quota as a blending component and as a pure fuel and can be used in most of the existing diesel vehicle fleet.
The end of double counting could increase demand for non-advanced biodiesel grades, such as rapeseed-based RME and used cooking oil-based Ucome. Although the eligibility of these is capped to a certain percentage of a company's energy mix, this limit has not always been fully utilised in the past.
by Max Steinhau and Chloe Jardine/ Argus Media
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South Sumatra Police Chief Flags Dozens of Palm Oil Mills Operating Without Core Plantations
Inp.polri.go.id - Jakarta. South Sumatra Regional Police Chief Inspector General Andi R. Djajadi warned on Tuesday (9/12/2025) that 22 palm oil mills across the province are operating without core plantations, raising concerns over supply security and unlawful sourcing of fresh fruit bunches (FFB).
“They may have permits, but they have no guaranteed raw material supply from their own plantations,” he said, as quoted by antaranews.com.
The mills are located in Banyuasin, Muara Enim, Musi Rawas, and Musi Banyuasin. Chief Andi noted that the absence of core plantations increases the risk of unhealthy competition for FFB and encourages illegal practices, including theft.
“This situation can create alternative oil supply chains, known as ram sawit, which are often linked to illegal FFB transactions,” he said.
South Sumatra recorded 373 FFB theft cases in 2025, with 456 suspects named. Governor Herman Deru said the trend could undermine plantation investment confidence.
The province has 997,559 hectares of oil palm plantations managed by 277 companies. INP POLRI
December 10, 2025
Indonesia sets rules to fine miners operating in forest areas
By Reuters
JAKARTA, Dec 10 (Reuters) - Indonesia has set the fines it will impose on miners operating illegally in forest areas, part of government efforts to protect forest areas from illegal clearing, the Energy and Mineral Resources Ministry said on Wednesday.
Nickel miners found to be clearing forest illegally will be fined 6.5 billion rupiah ($389,688) per hectare, bauxite miners will be fined 1.76 billion rupiah per hectare, and tin miners will be fined 1.25 billion rupiah a hectare, the ministry said in a statement.
Coal miners will be fined 354 million rupiah per hectare.
A government forestry task force, made up of military personnel and law enforcement officials, will collect the fines based on findings of their investigations.
Earlier this week, the task force ordered dozens of companies in palm oil cultivation and mining to pay fines totalling 38.62 trillion rupiah for operating illegally in forest areas. Reuters
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Malaysia-FGV resumes operations after Felda remediation deadline extended
KUALA TERENGGANU: FGV Holdings has resumed plantation operations following the Terengganu government’s decision to extend the remediation deadline to Jan 7.
In a joint statement, Felda and FGV said operations could now focus on boosting yields, supporting settler incomes, and strengthening community development.
They said this development not only restored confidence among settlers and workers but also ensured the continued stability of the local economy.
"This development comes as a major relief to the settlers, who for several weeks have faced uncertainty regarding their income, their future and livelihood.
“From the outset, our priority has been to safeguard the welfare, economic security, and emotional wellbeing of the settlers, particularly the native sons and daughters of Terengganu,” they said.
Felda and FGV also expressed their appreciation to the Terengganu government for its commitment and willingness to continue discussions professionally.
“This cooperation is deeply meaningful because, ultimately, the wellbeing of the settlers, who have been the foundation and lifeblood of Felda since its establishment, is a shared priority that must be continually upheld,” they said.
State secretary Zulkifli Ali yesterday confirmed the government had extended the remediation deadline under the National Land Code Section 425 notice to Jan 7, suspending the earlier notice issued to the FGV board.
The extension follows constructive negotiations between the state government, Felda, and FGV. Free Malaysia Today
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Beating the bottlenecks for Sustainable Aviation Fuels
The aviation industry has been under mounting pressure to tackle its carbon footprint. Now, a new study has delivered a vital message: the pathway to net-zero carbon emissions by 2050 is achievable – but only with urgent and coordinated global action.
The report, published by the International Air Transport Association (IATA) in collaboration with Worley Consulting, concludes that there is enough sustainable feedstock to produce the volumes of sustainable aviation fuel (SAF) needed to decarbonise the industry over the next 25 years.
Crucially, all the feedstocks considered in the study meet strict sustainability standards, meaning they would not lead to land-use changes or compete with food production.
“We now have unequivocal evidence that if SAF production is prioritised, then feedstock availability is not a barrier in the industry’s path to decarbonisation,” said Willie Walsh, IATA’s director general. “However, this will only be accomplished with a major acceleration of the SAF industry’s growth. We need shovels in the ground now.”
The scale of the challenge Biofuels News
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Malaysia Gathers Industry Views To Draft National SAF Strategy Document
KUALA LUMPUR, Dec 10 (Bernama) -- The government has gathered the relevant input for the National Sustainable Aviation Fuel (SAF) Strategy Document through a series of workshops and discussions with industry players and stakeholders.
Deputy Minister of Plantation and Commodities (KPK) Datuk Chan Foong Hin said the document, currently being developed by KPK together with the Ministry of Investment, Trade and Industry (MITI), is now at the preliminary discussion stage before further action is taken. He said the document is expected to be finalised after taking into account all factors, including production, demand, technological developments, and the implementation of SAF mandates by neighbouring countries.
“Further discussions with MITI will be held in the first quarter of 2026. Following that, the work of drafting and reviewing the final version of the document will continue until the end of 2026, before it is presented to the Cabinet in early 2027,” he said during a question-and-answer session in the Dewan Negara today.
Chan was responding to a question from Senator Che Alias Hamid, who asked about the expected timeline for finalising the National SAF Strategy Document to support Malaysia’s goal of becoming one of the world’s leading SAF producers.
He said the government is currently formulating the introduction of an SAF blending mandate to encourage demand for the sustainable fuel. “The introduction of the SAF blending mandate will be proposed to begin at one per cent and will be increased progressively according to suitability and need.” BERNAMA
Indonesia sets rules to fine miners operating in forest areas
By Reuters
JAKARTA, Dec 10 (Reuters) - Indonesia has set the fines it will impose on miners operating illegally in forest areas, part of government efforts to protect forest areas from illegal clearing, the Energy and Mineral Resources Ministry said on Wednesday.
Nickel miners found to be clearing forest illegally will be fined 6.5 billion rupiah ($389,688) per hectare, bauxite miners will be fined 1.76 billion rupiah per hectare, and tin miners will be fined 1.25 billion rupiah a hectare, the ministry said in a statement.
Coal miners will be fined 354 million rupiah per hectare.
A government forestry task force, made up of military personnel and law enforcement officials, will collect the fines based on findings of their investigations.
Earlier this week, the task force ordered dozens of companies in palm oil cultivation and mining to pay fines totalling 38.62 trillion rupiah for operating illegally in forest areas. Reuters
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Malaysia-FGV resumes operations after Felda remediation deadline extended
KUALA TERENGGANU: FGV Holdings has resumed plantation operations following the Terengganu government’s decision to extend the remediation deadline to Jan 7.
In a joint statement, Felda and FGV said operations could now focus on boosting yields, supporting settler incomes, and strengthening community development.
They said this development not only restored confidence among settlers and workers but also ensured the continued stability of the local economy.
"This development comes as a major relief to the settlers, who for several weeks have faced uncertainty regarding their income, their future and livelihood.
“From the outset, our priority has been to safeguard the welfare, economic security, and emotional wellbeing of the settlers, particularly the native sons and daughters of Terengganu,” they said.
Felda and FGV also expressed their appreciation to the Terengganu government for its commitment and willingness to continue discussions professionally.
“This cooperation is deeply meaningful because, ultimately, the wellbeing of the settlers, who have been the foundation and lifeblood of Felda since its establishment, is a shared priority that must be continually upheld,” they said.
State secretary Zulkifli Ali yesterday confirmed the government had extended the remediation deadline under the National Land Code Section 425 notice to Jan 7, suspending the earlier notice issued to the FGV board.
The extension follows constructive negotiations between the state government, Felda, and FGV. Free Malaysia Today
---------
Beating the bottlenecks for Sustainable Aviation Fuels
The aviation industry has been under mounting pressure to tackle its carbon footprint. Now, a new study has delivered a vital message: the pathway to net-zero carbon emissions by 2050 is achievable – but only with urgent and coordinated global action.
The report, published by the International Air Transport Association (IATA) in collaboration with Worley Consulting, concludes that there is enough sustainable feedstock to produce the volumes of sustainable aviation fuel (SAF) needed to decarbonise the industry over the next 25 years.
Crucially, all the feedstocks considered in the study meet strict sustainability standards, meaning they would not lead to land-use changes or compete with food production.
“We now have unequivocal evidence that if SAF production is prioritised, then feedstock availability is not a barrier in the industry’s path to decarbonisation,” said Willie Walsh, IATA’s director general. “However, this will only be accomplished with a major acceleration of the SAF industry’s growth. We need shovels in the ground now.”
The scale of the challenge Biofuels News
--------
Malaysia Gathers Industry Views To Draft National SAF Strategy Document
KUALA LUMPUR, Dec 10 (Bernama) -- The government has gathered the relevant input for the National Sustainable Aviation Fuel (SAF) Strategy Document through a series of workshops and discussions with industry players and stakeholders.
Deputy Minister of Plantation and Commodities (KPK) Datuk Chan Foong Hin said the document, currently being developed by KPK together with the Ministry of Investment, Trade and Industry (MITI), is now at the preliminary discussion stage before further action is taken. He said the document is expected to be finalised after taking into account all factors, including production, demand, technological developments, and the implementation of SAF mandates by neighbouring countries.
“Further discussions with MITI will be held in the first quarter of 2026. Following that, the work of drafting and reviewing the final version of the document will continue until the end of 2026, before it is presented to the Cabinet in early 2027,” he said during a question-and-answer session in the Dewan Negara today.
Chan was responding to a question from Senator Che Alias Hamid, who asked about the expected timeline for finalising the National SAF Strategy Document to support Malaysia’s goal of becoming one of the world’s leading SAF producers.
He said the government is currently formulating the introduction of an SAF blending mandate to encourage demand for the sustainable fuel. “The introduction of the SAF blending mandate will be proposed to begin at one per cent and will be increased progressively according to suitability and need.” BERNAMA
December 08, 2025
Indonesia fines dozens of palm oil, mining companies $2.3 billion for operating in forest areas
By Reuters
Summary
President Prabowo Subianto's forestry task force, made up of military personnel and law enforcement officials, has this year cracked down on an unprecedented scale on plantations and on mines that authorities say have operated illegally in forest areas.
The task force has seized 3.7 million hectares (9.1 million acres) of plantations and more than 5,300 hectares of mining operations, with a target to reach 4 million hectares by the end of the year.
Following the seizures, it has issued fines totalling 9.42 trillion rupiah to 49 plantation companies and 29.2 trillion rupiah for 22 mining companies, said Barita Simanjutak, an official with the Attorney General's Office and a task force member. He described them as some of the previous owners of the asset, but did not disclose the names of the companies.
The palm oil companies were expected to pay 25 million rupiah per hectare per year, he said, providing no explanation for how the fines were calculated.
SOME COMPANIES HAVE PAID, OTHERS HAVE OBJECTED
Some companies have paid, while others have objected, Simanjuntak said. He said task force was open to dialogue but it would be strict in its enforcement of the law.
"We urge companies to be cooperative," he said.
"It is not impossible for the task force to take legal action if compliance is not heeded," he added.
The task force has handed over 1.5 million hectares of plantations that it seized to state firm Agrinas Palma Nusantara, which was set up early this year, making it the world's largest palm oil company by land size.
The military-backed seizures have unnerved the palm oil industry. Analysts predicted that, together with Indonesia's biodiesel plan, they would exert upward pressure on global prices as they are expected to disrupt productivity.
Indonesia is the world's biggest exporter of palm oil, thermal coal, nickel and tin. Reuters
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Palm Oil Conclave 2025 reclaims the nutrition narrative, calls for science-led dialogue and sustainable growth
Bhopal (Madhya Pradesh) [India], December 8: The Palm Oil Conclave 2025, organised by the Asian Palm Oil Alliance (APOA), Solidaridad and The Solvent Extractors' Association of India (SEA), concluded in Bhopal with a powerful, evidence-driven push to dismantle long-standing myths about palm oil and establish a balanced national narrative on health, markets, and sustainability.
Held under the theme "Reshaping Perceptions through Palm Oil Dialogues - Health, Markets, Climate," the Conclave gathered more than 200 experts from nutrition science, medical practice, FMCG, food processing, journalism, academia, industry and consumers. The central message emerging from the day-long discussions was clear: India needs fact-based communication and science-guided public understanding of palm oil.
Delivering the welcome address, Atul Chaturvedi, Chairman, APOA, stressed the need for India to reclaim the discourse on palm oil "India has long been influenced by external narratives, many of which do not reflect our realities or our needs. Today's deliberations show that India is ready to steer its own informed direction--grounded in facts, transparency, and collaboration. This Conclave has brought clarity at a time when consumer trust is essential."
Dr. Shatadru Chattopadhayay, Managing Director, Solidaridad Asia, emphasised the role of science in shaping balanced public perception "Palm oil has suffered from fragmented and often misleading information. Through dialogues like these, backed by the India Palm Oil Sustainability (IPOS) framework, we are building a resilient, responsible supply chain that benefits farmers and protects the environment. Today's discussions reaffirmed that sustainability and growth must move together."
Health and nutrition experts from the National Institute of Nutrition, medical academia, and public health departments debunked widespread misconceptions around palm oil, highlighting its fatty acid profile, safe use in Indian diets, and importance in food security. Senior journalist Mrityunjay Kumar Jha, put forth clear, science-backed answers to concerns frequently raised by consumers and the media.
"As someone working at the intersection of science, policy, and regional collaboration, I see palm oil not just as a commodity but as a strategic solution for India's food and nutrition security. The evidence is clear--palm oil contains essential vitamins, balanced fatty acids, and is one of the most efficient crops globally. It is time we replace myths with meaningful, research-driven conversations."- Said Dr. Suresh Motwani, Secretary General, Asian Palm Oil Alliance.
"The Palm Oil Conclave 2025 comes at a pivotal moment when there continues to be an increased consumer focus on health and sustainability. As the citizens priorities health and improved nutrition, it is crucial that we come together and build a shared understanding and direction. This conclave provides a platform for open dialogue, practical solutions, and stronger collaboration to create a more resilient and responsible palm oil ecosystem for India."- Sougata Niyogi, CEO, Oil Palm Business, Godrej Agrovet Ltd.
B.V. Mehta, Executive Director of the Solvent Extractors' Association of India, highlighted that "Atma Nirbhar Bharat begins in our fields. When we empower farmers with better seeds, scientific knowledge, fair markets, and modern processing systems, India naturally moves toward self-reliance in edible oils. The potential is enormous--we only need to harness it with commitment and consistency."
The Palm Oil Conclave featured a vibrant exhibition showcasing a wide range of palm oil-based products all under one roof. From everyday edible items to innovative value-added products, the display highlighted the versatility and economic relevance of palm oil in India's food ecosystem. The exhibition drew thousands of visitors, including industry experts, students, entrepreneurs, and consumers, making it one of the most engaging and informative attractions of the conclave.
A significant highlight was the launch of the book "Oil Palm Statistics in India: Trends and Insights," offering a comprehensive overview of production trends, global comparisons, policies, and future pathways for India's oil palm sector. Solidaridad presented key findings from its climate-smart agriculture interventions, demonstrating how farmer-centric innovations--from weather advisories to soil health restoration--are helping future-proof India's palm oil landscapes.
Special video messages from Prof. Rattan Lal, World Food Prize Laureate, and Ms. Izzana Salleh, Secretary General of the Council of Palm Oil Producing Countries (CPOPC), reinforced the importance of sustainability, soil stewardship, and international cooperation. Business Standard
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India's palm oil acreage reaches 6.20 lakh hectares in the push for edible oil self-reliance under NMEO
India’s efforts to reduce dependence on edible oil imports have gained momentum under the National Mission on Edible Oils (NMEO), with the Centre reporting notable progress in both oil palm expansion and oilseed productivity.
According to an August 2024 NITI Aayog report, India now ranks first globally in the production of rice bran oil, castor seed, safflower, sesame and niger. However, domestic output continues to meet only 44% of the country’s edible oil requirement.
The NMEO–Oil Palm (OP), launched in 2021, aims to bring 6.5 lakh hectares under oil palm by 2025–26. By November 2025, 2.50 lakh hectares had been added, taking the total cultivated area to 6.20 lakh hectares nationwide.
Crude Palm Oil (CPO) production has increased from 1.91 lakh tonnes in 2014–15 to 3.80 lakh tonnes in 2024–25. The scheme provides farmers with a Viability Price (VP) for Fresh Fruit Bunches (FFBs), insulating them from international CPO price fluctuations.
A financial outlay of Rs 11,040 crore has been earmarked for the mission, with major focus on seed gardens, nurseries, high-yield planting material, drip irrigation and intercropping during the gestation period.
Oilseeds Mission Targets 69.7 MT Output by 2030–31
The second component, NMEO–Oilseeds (OS), approved in 2024 for a seven-year period, targets raising primary oilseed output from 39 MT in 2022–23 to 69.7 MT by 2030–31. The mission seeks to expand total oilseed acreage to 33 million hectares, improve yield and strengthen seed systems through cluster-based interventions.
Over 600 value-chain clusters have been created, covering more than 10 lakh hectares annually. Farmers are being given free high-quality seeds, training in good agricultural practices and support for post-harvest infrastructure.
The government plans to expand oilseed cultivation by an additional 40 lakh hectares, mainly through fallow land utilisation and intercropping. Together with NMEO-OP, domestic edible oil production is projected to reach 25.45 million tonnes by 2030–31, meeting around 72% of projected domestic demand.
Addressing Import Dependence
India’s edible oil consumption has risen sharply, with per capita intake increasing by 83.68% in rural and 48.74% in urban areas between 2004–05 and 2022–23. Despite production reaching 12.18 MT in 2023–24, the country still imported 15.66 MT of edible oils in the same year.
Import dependence has, however, declined from 63.2% in 2015–16 to 56.25% in 2023–24, driven by domestic interventions and higher MSPs for major oilseeds. The government also raised effective customs duties on crude and refined edible oils to protect local producers.
Research and Seed Development
ICAR is developing high-yielding, climate-resilient varieties through coordinated research projects. Between 2014 and 2025, 432 oilseed varieties and hybrids have been released. The SATHI seed traceability portal and the digital Krishi Mapper platform are being used to streamline seed planning and mission monitoring. DD News
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Malaysia seeks to regain palm oil market share in China
Malaysia is aiming to increase palm oil exports to China after shipments dropped by almost 39% in the first 10 months of 2025 due to logistic challenges and pricing pressures, according to a New Straits Times report quoting the country’s Plantation and Commodities Minister Johari Abdul Ghani.
The decline in exports was partly due to rising palm oil prices, which had overtaken soyabean oil prices, making the latter the preferred choice for Chinese buyers, Johari said in the 27 November report.
“For the first time, the price of our palm oil has increased and is more expensive than soyabean oil,” he told reporters at the Malaysian Palm Oil Council (MPOC) Industry Dialogue with Chinese Buyers.
Johari said China had been a key and strategic market for Malaysia, maintaining its position as one of the country’s top palm oil export destinations for over a decade.
“However, our exports to China have fallen by almost 39% in the first 10 months of this year. This sharp decline suggests deeper challenges relating not only to competitiveness and logistics but also to pricing dynamics and market positioning,” he added.
Johari said the aim of the event was to understand how Malaysia could regain its competitiveness and restore its long-established position in the Chinese market.
“This group collectively accounts for roughly 2.5M tonnes of China’s palm oil requirements,” he said in his opening remarks.
“We also welcome continuous dialogue to better align expectations on pricing trends, market developments and long-term supply planning.”
MPOC hosted a trade networking visit for 37 Chinese buyers from 25-27 November aimed at expanding Malaysian palm oil exports and reinforcing confidence in Malaysia’s palm oil supply chain. OFI Magazine
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China Palm Oil Market Size, Share, Trends and Forecast by Application and Region, 2025-2033
China Palm Oil Market Overview:
The China palm oil market size reached USD 9,427.25 Million in 2024. Looking forward, the market is expected to reach USD 12,826.05 Million by 2033, exhibiting a growth rate (CAGR) of 3.48% during 2025-2033. The market is shaped by strong import reliance, mainly from Indonesia and Malaysia, catering to food, cosmetic, and oleochemical industries. Price-sensitive dynamics favor cheaper edible oils such as soybean oil, causing demand volatility. Consumer and private-sector interest in certified sustainable sourcing is emerging slowly, influencing trade patterns and strategies in the China palm oil market share.
China Palm Oil Market Trends:
High Demand from the Food Processing Industry
The massive food industry in China also contributes to the palm oil demand. The diversity, shelf life and economic benefit of palm oil in instant noodles, bake goods, and sweet and frying have led it to be the choice of ingredient. The usage of products that contain palm oil keeps increasing as the urban population of the country and the living standards of consumers become more inclined towards accessible and pre-cooked viands. Also, the semi-solid quality of palm oil that results at room temperature simply means that palm oil does not have to be hydrogenated, which takes away the allure to use it as a substitute for oils with trans fat. This industrial preference, along with steady growth in domestic food manufacturing and retail sectors, reinforces palm oil’s vital role in China’s edible oil mix and strengthens overall market demand. IMARC Group
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MSPO certificate can be revoked if NCR land rights violated
KUALA LUMPUR (Dec 8): The Malaysian Sustainable Palm Oil (MSPO) certificate of a company found to be non-compliant, such as through encroachment or violation of land rights, including Native Customary Rights (NCR) land, can be suspended or revoked until the issue is resolved.
Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said the action of accredited certification bodies in suspending certificates is in line with MSPO 2022 requirements.
He emphasised that conflicts should be resolved through negotiations with the state government or in court.
“MSPO requires lawful land ownership and land free of disputes, as specified in Criteria 3.3 and 3.4 of MSPO 2022,” he said.
Chan explained that two things are happening during an official dispute; firstly, an audit may be unable to fully verify compliance, particularly indicators related to legal ownership and community rights.
“Secondly, the reputational risk rises if MSPO is seen to be certifying a company involved in a land dispute,” he told the Dewan Negara during a question-and-answer session today.
The deputy minister was responding to Senator Abun Sui Anyit regarding efforts to increase MSPO certification for Sarawak’s palm oil for export markets and whether MSPO certification also takes into account encroachment or complaints related to rights violations, including NCR, within the country.
Chan said MSPO 2.0, which took effect on Jan 1, 2025, emphasises the auditing process by certification bodies accredited by the Department of Standards Malaysia and requires operators to demonstrate the status and evidence of lawful land ownership, including NCR land recognised under state law.
“In this context, MSPO has issued the Specific Guidance Document on MS2530:2022 Compliance of New Oil Palm Planting for Sarawak NCR land, developed in consultation with state government representatives, community stakeholders and palm oil industry players in Sarawak.
“This document provides clear guidance to NCR landowners on documentation processes, community verification and compliance steps to obtain MSPO certification,” he said.
Chan said MSPO 2.0 also emphasises the need to obtain consent, engage and consult with local communities, conduct social impact assessments and high conservation value assessments, and provide complaint and dispute-resolution mechanisms through the e-MSPO system, which is open to all stakeholders.
“The government, through the Ministry of Plantation and Commodities and its agencies, remains committed to increasing the rate of MSPO certification nationwide, including in Sarawak, to ensure the country’s palm oil remains competitive and accepted in international markets.
“Among the government’s main efforts are continuous engagement programmes, training and technical guidance, support and incentives for independent smallholders to cover certification costs, assistance with mapping, and cooperating with state governments to facilitate compliance and land issues,” he added. – Bernama/ The Borneo Post
Indonesia fines dozens of palm oil, mining companies $2.3 billion for operating in forest areas
By Reuters
Summary
- Seizures could push global prices higher
- Fines issues to 49 plantation and 22 mining companies
President Prabowo Subianto's forestry task force, made up of military personnel and law enforcement officials, has this year cracked down on an unprecedented scale on plantations and on mines that authorities say have operated illegally in forest areas.
The task force has seized 3.7 million hectares (9.1 million acres) of plantations and more than 5,300 hectares of mining operations, with a target to reach 4 million hectares by the end of the year.
Following the seizures, it has issued fines totalling 9.42 trillion rupiah to 49 plantation companies and 29.2 trillion rupiah for 22 mining companies, said Barita Simanjutak, an official with the Attorney General's Office and a task force member. He described them as some of the previous owners of the asset, but did not disclose the names of the companies.
The palm oil companies were expected to pay 25 million rupiah per hectare per year, he said, providing no explanation for how the fines were calculated.
SOME COMPANIES HAVE PAID, OTHERS HAVE OBJECTED
Some companies have paid, while others have objected, Simanjuntak said. He said task force was open to dialogue but it would be strict in its enforcement of the law.
"We urge companies to be cooperative," he said.
"It is not impossible for the task force to take legal action if compliance is not heeded," he added.
The task force has handed over 1.5 million hectares of plantations that it seized to state firm Agrinas Palma Nusantara, which was set up early this year, making it the world's largest palm oil company by land size.
The military-backed seizures have unnerved the palm oil industry. Analysts predicted that, together with Indonesia's biodiesel plan, they would exert upward pressure on global prices as they are expected to disrupt productivity.
Indonesia is the world's biggest exporter of palm oil, thermal coal, nickel and tin. Reuters
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Palm Oil Conclave 2025 reclaims the nutrition narrative, calls for science-led dialogue and sustainable growth
Bhopal (Madhya Pradesh) [India], December 8: The Palm Oil Conclave 2025, organised by the Asian Palm Oil Alliance (APOA), Solidaridad and The Solvent Extractors' Association of India (SEA), concluded in Bhopal with a powerful, evidence-driven push to dismantle long-standing myths about palm oil and establish a balanced national narrative on health, markets, and sustainability.
Held under the theme "Reshaping Perceptions through Palm Oil Dialogues - Health, Markets, Climate," the Conclave gathered more than 200 experts from nutrition science, medical practice, FMCG, food processing, journalism, academia, industry and consumers. The central message emerging from the day-long discussions was clear: India needs fact-based communication and science-guided public understanding of palm oil.
Delivering the welcome address, Atul Chaturvedi, Chairman, APOA, stressed the need for India to reclaim the discourse on palm oil "India has long been influenced by external narratives, many of which do not reflect our realities or our needs. Today's deliberations show that India is ready to steer its own informed direction--grounded in facts, transparency, and collaboration. This Conclave has brought clarity at a time when consumer trust is essential."
Dr. Shatadru Chattopadhayay, Managing Director, Solidaridad Asia, emphasised the role of science in shaping balanced public perception "Palm oil has suffered from fragmented and often misleading information. Through dialogues like these, backed by the India Palm Oil Sustainability (IPOS) framework, we are building a resilient, responsible supply chain that benefits farmers and protects the environment. Today's discussions reaffirmed that sustainability and growth must move together."
Health and nutrition experts from the National Institute of Nutrition, medical academia, and public health departments debunked widespread misconceptions around palm oil, highlighting its fatty acid profile, safe use in Indian diets, and importance in food security. Senior journalist Mrityunjay Kumar Jha, put forth clear, science-backed answers to concerns frequently raised by consumers and the media.
"As someone working at the intersection of science, policy, and regional collaboration, I see palm oil not just as a commodity but as a strategic solution for India's food and nutrition security. The evidence is clear--palm oil contains essential vitamins, balanced fatty acids, and is one of the most efficient crops globally. It is time we replace myths with meaningful, research-driven conversations."- Said Dr. Suresh Motwani, Secretary General, Asian Palm Oil Alliance.
"The Palm Oil Conclave 2025 comes at a pivotal moment when there continues to be an increased consumer focus on health and sustainability. As the citizens priorities health and improved nutrition, it is crucial that we come together and build a shared understanding and direction. This conclave provides a platform for open dialogue, practical solutions, and stronger collaboration to create a more resilient and responsible palm oil ecosystem for India."- Sougata Niyogi, CEO, Oil Palm Business, Godrej Agrovet Ltd.
B.V. Mehta, Executive Director of the Solvent Extractors' Association of India, highlighted that "Atma Nirbhar Bharat begins in our fields. When we empower farmers with better seeds, scientific knowledge, fair markets, and modern processing systems, India naturally moves toward self-reliance in edible oils. The potential is enormous--we only need to harness it with commitment and consistency."
The Palm Oil Conclave featured a vibrant exhibition showcasing a wide range of palm oil-based products all under one roof. From everyday edible items to innovative value-added products, the display highlighted the versatility and economic relevance of palm oil in India's food ecosystem. The exhibition drew thousands of visitors, including industry experts, students, entrepreneurs, and consumers, making it one of the most engaging and informative attractions of the conclave.
A significant highlight was the launch of the book "Oil Palm Statistics in India: Trends and Insights," offering a comprehensive overview of production trends, global comparisons, policies, and future pathways for India's oil palm sector. Solidaridad presented key findings from its climate-smart agriculture interventions, demonstrating how farmer-centric innovations--from weather advisories to soil health restoration--are helping future-proof India's palm oil landscapes.
Special video messages from Prof. Rattan Lal, World Food Prize Laureate, and Ms. Izzana Salleh, Secretary General of the Council of Palm Oil Producing Countries (CPOPC), reinforced the importance of sustainability, soil stewardship, and international cooperation. Business Standard
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India's palm oil acreage reaches 6.20 lakh hectares in the push for edible oil self-reliance under NMEO
India’s efforts to reduce dependence on edible oil imports have gained momentum under the National Mission on Edible Oils (NMEO), with the Centre reporting notable progress in both oil palm expansion and oilseed productivity.
According to an August 2024 NITI Aayog report, India now ranks first globally in the production of rice bran oil, castor seed, safflower, sesame and niger. However, domestic output continues to meet only 44% of the country’s edible oil requirement.
The NMEO–Oil Palm (OP), launched in 2021, aims to bring 6.5 lakh hectares under oil palm by 2025–26. By November 2025, 2.50 lakh hectares had been added, taking the total cultivated area to 6.20 lakh hectares nationwide.
Crude Palm Oil (CPO) production has increased from 1.91 lakh tonnes in 2014–15 to 3.80 lakh tonnes in 2024–25. The scheme provides farmers with a Viability Price (VP) for Fresh Fruit Bunches (FFBs), insulating them from international CPO price fluctuations.
A financial outlay of Rs 11,040 crore has been earmarked for the mission, with major focus on seed gardens, nurseries, high-yield planting material, drip irrigation and intercropping during the gestation period.
Oilseeds Mission Targets 69.7 MT Output by 2030–31
The second component, NMEO–Oilseeds (OS), approved in 2024 for a seven-year period, targets raising primary oilseed output from 39 MT in 2022–23 to 69.7 MT by 2030–31. The mission seeks to expand total oilseed acreage to 33 million hectares, improve yield and strengthen seed systems through cluster-based interventions.
Over 600 value-chain clusters have been created, covering more than 10 lakh hectares annually. Farmers are being given free high-quality seeds, training in good agricultural practices and support for post-harvest infrastructure.
The government plans to expand oilseed cultivation by an additional 40 lakh hectares, mainly through fallow land utilisation and intercropping. Together with NMEO-OP, domestic edible oil production is projected to reach 25.45 million tonnes by 2030–31, meeting around 72% of projected domestic demand.
Addressing Import Dependence
India’s edible oil consumption has risen sharply, with per capita intake increasing by 83.68% in rural and 48.74% in urban areas between 2004–05 and 2022–23. Despite production reaching 12.18 MT in 2023–24, the country still imported 15.66 MT of edible oils in the same year.
Import dependence has, however, declined from 63.2% in 2015–16 to 56.25% in 2023–24, driven by domestic interventions and higher MSPs for major oilseeds. The government also raised effective customs duties on crude and refined edible oils to protect local producers.
Research and Seed Development
ICAR is developing high-yielding, climate-resilient varieties through coordinated research projects. Between 2014 and 2025, 432 oilseed varieties and hybrids have been released. The SATHI seed traceability portal and the digital Krishi Mapper platform are being used to streamline seed planning and mission monitoring. DD News
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Malaysia seeks to regain palm oil market share in China
Malaysia is aiming to increase palm oil exports to China after shipments dropped by almost 39% in the first 10 months of 2025 due to logistic challenges and pricing pressures, according to a New Straits Times report quoting the country’s Plantation and Commodities Minister Johari Abdul Ghani.
The decline in exports was partly due to rising palm oil prices, which had overtaken soyabean oil prices, making the latter the preferred choice for Chinese buyers, Johari said in the 27 November report.
“For the first time, the price of our palm oil has increased and is more expensive than soyabean oil,” he told reporters at the Malaysian Palm Oil Council (MPOC) Industry Dialogue with Chinese Buyers.
Johari said China had been a key and strategic market for Malaysia, maintaining its position as one of the country’s top palm oil export destinations for over a decade.
“However, our exports to China have fallen by almost 39% in the first 10 months of this year. This sharp decline suggests deeper challenges relating not only to competitiveness and logistics but also to pricing dynamics and market positioning,” he added.
Johari said the aim of the event was to understand how Malaysia could regain its competitiveness and restore its long-established position in the Chinese market.
“This group collectively accounts for roughly 2.5M tonnes of China’s palm oil requirements,” he said in his opening remarks.
“We also welcome continuous dialogue to better align expectations on pricing trends, market developments and long-term supply planning.”
MPOC hosted a trade networking visit for 37 Chinese buyers from 25-27 November aimed at expanding Malaysian palm oil exports and reinforcing confidence in Malaysia’s palm oil supply chain. OFI Magazine
--------
China Palm Oil Market Size, Share, Trends and Forecast by Application and Region, 2025-2033
China Palm Oil Market Overview:
The China palm oil market size reached USD 9,427.25 Million in 2024. Looking forward, the market is expected to reach USD 12,826.05 Million by 2033, exhibiting a growth rate (CAGR) of 3.48% during 2025-2033. The market is shaped by strong import reliance, mainly from Indonesia and Malaysia, catering to food, cosmetic, and oleochemical industries. Price-sensitive dynamics favor cheaper edible oils such as soybean oil, causing demand volatility. Consumer and private-sector interest in certified sustainable sourcing is emerging slowly, influencing trade patterns and strategies in the China palm oil market share.
China Palm Oil Market Trends:
High Demand from the Food Processing Industry
The massive food industry in China also contributes to the palm oil demand. The diversity, shelf life and economic benefit of palm oil in instant noodles, bake goods, and sweet and frying have led it to be the choice of ingredient. The usage of products that contain palm oil keeps increasing as the urban population of the country and the living standards of consumers become more inclined towards accessible and pre-cooked viands. Also, the semi-solid quality of palm oil that results at room temperature simply means that palm oil does not have to be hydrogenated, which takes away the allure to use it as a substitute for oils with trans fat. This industrial preference, along with steady growth in domestic food manufacturing and retail sectors, reinforces palm oil’s vital role in China’s edible oil mix and strengthens overall market demand. IMARC Group
--------
MSPO certificate can be revoked if NCR land rights violated
KUALA LUMPUR (Dec 8): The Malaysian Sustainable Palm Oil (MSPO) certificate of a company found to be non-compliant, such as through encroachment or violation of land rights, including Native Customary Rights (NCR) land, can be suspended or revoked until the issue is resolved.
Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said the action of accredited certification bodies in suspending certificates is in line with MSPO 2022 requirements.
He emphasised that conflicts should be resolved through negotiations with the state government or in court.
“MSPO requires lawful land ownership and land free of disputes, as specified in Criteria 3.3 and 3.4 of MSPO 2022,” he said.
Chan explained that two things are happening during an official dispute; firstly, an audit may be unable to fully verify compliance, particularly indicators related to legal ownership and community rights.
“Secondly, the reputational risk rises if MSPO is seen to be certifying a company involved in a land dispute,” he told the Dewan Negara during a question-and-answer session today.
The deputy minister was responding to Senator Abun Sui Anyit regarding efforts to increase MSPO certification for Sarawak’s palm oil for export markets and whether MSPO certification also takes into account encroachment or complaints related to rights violations, including NCR, within the country.
Chan said MSPO 2.0, which took effect on Jan 1, 2025, emphasises the auditing process by certification bodies accredited by the Department of Standards Malaysia and requires operators to demonstrate the status and evidence of lawful land ownership, including NCR land recognised under state law.
“In this context, MSPO has issued the Specific Guidance Document on MS2530:2022 Compliance of New Oil Palm Planting for Sarawak NCR land, developed in consultation with state government representatives, community stakeholders and palm oil industry players in Sarawak.
“This document provides clear guidance to NCR landowners on documentation processes, community verification and compliance steps to obtain MSPO certification,” he said.
Chan said MSPO 2.0 also emphasises the need to obtain consent, engage and consult with local communities, conduct social impact assessments and high conservation value assessments, and provide complaint and dispute-resolution mechanisms through the e-MSPO system, which is open to all stakeholders.
“The government, through the Ministry of Plantation and Commodities and its agencies, remains committed to increasing the rate of MSPO certification nationwide, including in Sarawak, to ensure the country’s palm oil remains competitive and accepted in international markets.
“Among the government’s main efforts are continuous engagement programmes, training and technical guidance, support and incentives for independent smallholders to cover certification costs, assistance with mapping, and cooperating with state governments to facilitate compliance and land issues,” he added. – Bernama/ The Borneo Post
December 07, 2025
The Threat of Ecological Disaster Behind the Extractive Industries of Indonesia
The major disaster in northern Sumatra is a profound sorrow for the Indonesian people. It serves as a natural reprimand for the ecological damage resulting from extractive economic practices.
By Nurul Intan, Antonius Purwanto
he extractive economy has become one of the pillars of Indonesia's economy. In general, the practice of the extractive economy is understood as the activity of directly extracting value or natural resources from the earth's crust in the form of minerals, coal, petroleum, and natural gas.
The Financial Note and the 2026 Draft State Budget (RAPBN) set a natural resource (SDA) revenue target of Rp 236.6 trillion for 2026. Specifically, oil and gas revenues reached Rp 113.1 trillion and non-oil and gas revenues Rp 123.5 trillion. Meanwhile, natural resource revenues in 2025 are estimated to reach Rp 230 trillion. Therefore, the natural resource revenue target in the 2026 Draft State Budget is expected to grow 2.8 percent from the 2025 outlook.
The economic reliance on revenue from natural resources continues the previous contributions. Revenue from oil and gas natural resources, for instance, is projected to experience an average growth of 16.8 percent during the period of 2021-2024. The performance of natural resources derived from both oil and gas and non-oil and gas during 2021-2024 is expected to contribute an average of 39.6 percent each year to non-tax state revenue.
The mining sector is one of the five sectors that significantly contributes to the growth of Indonesia's gross domestic product (GDP) in the second quarter of 2025, with a percentage reaching 8.59 percent. Observing the trend of the mining sector's contribution to GDP, the percentage has consistently remained above six percent year after year. In fact, in 2022, the percentage reached 12.22 percent.
As a country with extraordinary natural wealth, the utilization of natural resources is indeed commonplace. However, this extractive business model does not guarantee sustainability in the long term. The reason is that these natural resource commodities will inevitably be depleted due to continuous production.
Based on the data from the "National Mineral and Coal Resource Balance and Reserves 2025," the amount of coal reserves in Indonesia in 2024 reaches 31.95 billion tons. This consists of estimated reserves of 14.418 billion tons and proven reserves of 17.536 billion tons.
If there are no new discoveries, the amount of reserves is estimated to be sufficient to meet needs for only the next 45 years, assuming that national coal production is set at an average of 700 million tons per year.
In addition to coal, several other mining and mineral commodities continue to experience depletion. Nickel ore, for instance, has a total reserve recorded at 5.931 billion tons in 2024. Assuming an estimated annual production of 73 million tons, the remaining lifespan of nickel reserves in Indonesia is projected to last only until 34 years from now. Kompas
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Indonesian Minister of Environment Suspends All Company Operations in Batang Toru Watershed for Audit
Batang Toru. Minister of Environment Hanif Faisol Nurofiq has ordered all companies operating in the Batang Toru watershed in North Sumatra, including palm oil, mining, and hydropower firms, to suspend activities starting 6 December 2025 for a mandatory environmental audit.
“All companies in the upstream Batang Toru watershed must halt operations and undergo an environmental audit. They have been summoned for an official examination on 8 December in Jakarta,” he said on Saturday (6/12/2025), as reported by antaranews.com.
The decision followed aerial and ground inspections assessing disaster triggers and the impact of business activities on rising flood and landslide risks. Authorities visited PT Agincourt Resources, PTPN III, and PT North Sumatera Hydro Energy before deciding on a temporary shutdown.
The ministry cited extreme rainfall exceeding 300 mm per day and evidence of large-scale land clearing. Officials warned that legal action, including criminal proceedings, could follow if violations are confirmed. Oversight of environmental permits and spatial compliance will be tightened across steep slopes and upstream river zones. Polri
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Automated systems with AI could improve yield and quality of Indonesian palm oil
Sundahri 1, Wisnu Bahrudin Hafid 2, Satria Dwi Sanjaya 3, Dhea Rosita Sari 4, Fani Riski Romadhani 5.
The Department of Agronomy, Faculty of Agriculture, The University of Jember
Corresponding author: [email protected]
The oil palm industry plays a vital role in the economies of many tropical countries, particularly in Southeast Asia. However, the standards for sorting harvested oil palm fruit bunches (FFB) at the plantation level can often be considered low, leading to issues affecting oil yield and fruit quality. Current practices predominantly rely on manual sorting, which may lack efficiency and consistency. This paper explores the limitations of existing sorting standards and suggests improvements based on advanced technologies. Kompasiana
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50 Reasons Why Malaysia-US ART Deal Is Beneficial
The debate over national sovereignty and interests in the Malaysia–US Agreement on Reciprocal Trade (ART) is a non-starter. Accusations and misperceptions abound, but Malaysia will get long term tangible and intangible benefits not only from the ART, but most importantly on the multi-faceted positive safeguard of our economic, security, technological and geopolitical strength and needs through enhanced ties with the US.
The opponents of the ART and the various agreements see them as a potential backdoor for foreign interference and erosion of policy autonomy but far from it, they form the needed push for a long term economic and security assurance from Washington, especially under President Trump’s renewed focus and presence in this region.
Trump’s presence in Kuala Lumpur is a strong message to the country and the region, that “Malaysia is not just a partner but a pillar of stability, innovation, and leadership in Southeast Asia.”, with the clear message that Washington is now back investing its presence in this region, and that Malaysia lies at the central stage to this strategy.
Malaysia has vulnerabilities in strategic sectors: semiconductors, energy transition minerals, digital security, and supply chain choke points, and this new strengthening of ties and agreement strengthens the country.
Here are 50 strategic arguments in why an elevated and deeply layered long term positive partnership with the US through ART and overall holistic ties directly benefit Malaysia and the region: Business Today
The Threat of Ecological Disaster Behind the Extractive Industries of Indonesia
The major disaster in northern Sumatra is a profound sorrow for the Indonesian people. It serves as a natural reprimand for the ecological damage resulting from extractive economic practices.
By Nurul Intan, Antonius Purwanto
he extractive economy has become one of the pillars of Indonesia's economy. In general, the practice of the extractive economy is understood as the activity of directly extracting value or natural resources from the earth's crust in the form of minerals, coal, petroleum, and natural gas.
The Financial Note and the 2026 Draft State Budget (RAPBN) set a natural resource (SDA) revenue target of Rp 236.6 trillion for 2026. Specifically, oil and gas revenues reached Rp 113.1 trillion and non-oil and gas revenues Rp 123.5 trillion. Meanwhile, natural resource revenues in 2025 are estimated to reach Rp 230 trillion. Therefore, the natural resource revenue target in the 2026 Draft State Budget is expected to grow 2.8 percent from the 2025 outlook.
The economic reliance on revenue from natural resources continues the previous contributions. Revenue from oil and gas natural resources, for instance, is projected to experience an average growth of 16.8 percent during the period of 2021-2024. The performance of natural resources derived from both oil and gas and non-oil and gas during 2021-2024 is expected to contribute an average of 39.6 percent each year to non-tax state revenue.
The mining sector is one of the five sectors that significantly contributes to the growth of Indonesia's gross domestic product (GDP) in the second quarter of 2025, with a percentage reaching 8.59 percent. Observing the trend of the mining sector's contribution to GDP, the percentage has consistently remained above six percent year after year. In fact, in 2022, the percentage reached 12.22 percent.
As a country with extraordinary natural wealth, the utilization of natural resources is indeed commonplace. However, this extractive business model does not guarantee sustainability in the long term. The reason is that these natural resource commodities will inevitably be depleted due to continuous production.
Based on the data from the "National Mineral and Coal Resource Balance and Reserves 2025," the amount of coal reserves in Indonesia in 2024 reaches 31.95 billion tons. This consists of estimated reserves of 14.418 billion tons and proven reserves of 17.536 billion tons.
If there are no new discoveries, the amount of reserves is estimated to be sufficient to meet needs for only the next 45 years, assuming that national coal production is set at an average of 700 million tons per year.
In addition to coal, several other mining and mineral commodities continue to experience depletion. Nickel ore, for instance, has a total reserve recorded at 5.931 billion tons in 2024. Assuming an estimated annual production of 73 million tons, the remaining lifespan of nickel reserves in Indonesia is projected to last only until 34 years from now. Kompas
--------
Indonesian Minister of Environment Suspends All Company Operations in Batang Toru Watershed for Audit
Batang Toru. Minister of Environment Hanif Faisol Nurofiq has ordered all companies operating in the Batang Toru watershed in North Sumatra, including palm oil, mining, and hydropower firms, to suspend activities starting 6 December 2025 for a mandatory environmental audit.
“All companies in the upstream Batang Toru watershed must halt operations and undergo an environmental audit. They have been summoned for an official examination on 8 December in Jakarta,” he said on Saturday (6/12/2025), as reported by antaranews.com.
The decision followed aerial and ground inspections assessing disaster triggers and the impact of business activities on rising flood and landslide risks. Authorities visited PT Agincourt Resources, PTPN III, and PT North Sumatera Hydro Energy before deciding on a temporary shutdown.
The ministry cited extreme rainfall exceeding 300 mm per day and evidence of large-scale land clearing. Officials warned that legal action, including criminal proceedings, could follow if violations are confirmed. Oversight of environmental permits and spatial compliance will be tightened across steep slopes and upstream river zones. Polri
--------
Automated systems with AI could improve yield and quality of Indonesian palm oil
Sundahri 1, Wisnu Bahrudin Hafid 2, Satria Dwi Sanjaya 3, Dhea Rosita Sari 4, Fani Riski Romadhani 5.
The Department of Agronomy, Faculty of Agriculture, The University of Jember
Corresponding author: [email protected]
The oil palm industry plays a vital role in the economies of many tropical countries, particularly in Southeast Asia. However, the standards for sorting harvested oil palm fruit bunches (FFB) at the plantation level can often be considered low, leading to issues affecting oil yield and fruit quality. Current practices predominantly rely on manual sorting, which may lack efficiency and consistency. This paper explores the limitations of existing sorting standards and suggests improvements based on advanced technologies. Kompasiana
--------
50 Reasons Why Malaysia-US ART Deal Is Beneficial
The debate over national sovereignty and interests in the Malaysia–US Agreement on Reciprocal Trade (ART) is a non-starter. Accusations and misperceptions abound, but Malaysia will get long term tangible and intangible benefits not only from the ART, but most importantly on the multi-faceted positive safeguard of our economic, security, technological and geopolitical strength and needs through enhanced ties with the US.
The opponents of the ART and the various agreements see them as a potential backdoor for foreign interference and erosion of policy autonomy but far from it, they form the needed push for a long term economic and security assurance from Washington, especially under President Trump’s renewed focus and presence in this region.
Trump’s presence in Kuala Lumpur is a strong message to the country and the region, that “Malaysia is not just a partner but a pillar of stability, innovation, and leadership in Southeast Asia.”, with the clear message that Washington is now back investing its presence in this region, and that Malaysia lies at the central stage to this strategy.
Malaysia has vulnerabilities in strategic sectors: semiconductors, energy transition minerals, digital security, and supply chain choke points, and this new strengthening of ties and agreement strengthens the country.
Here are 50 strategic arguments in why an elevated and deeply layered long term positive partnership with the US through ART and overall holistic ties directly benefit Malaysia and the region: Business Today
December 06, 2025
World Bank hails Malaysia’s poverty gains, urges shift towards more equitable growth
A senior World Bank economist says Malaysia has largely achieved its hardcore poverty eradication target and must now prioritise inclusive development, especially in education and healthcare
KUALA LUMPUR – The World Bank has praised Malaysia’s success in drastically reducing poverty levels, but says the country’s next challenge lies in achieving more equitable and inclusive growth.
World Bank senior economist for poverty and equity, Ririn Salwa Purnamasari, acknowledged Malaysia’s rapid progress over recent decades, noting that hardcore poverty has now been almost completely eliminated.
“Malaysia’s efforts in poverty and inequality reduction have been impressive. Hardcore poverty is now almost non-existent. The government’s target on eliminating hardcore poverty has essentially been met,” she was quoted saying by Bernama.
Ririn said the nation must now move beyond eradicating hardcore poverty and look towards improving the overall quality of development. She highlighted the need for stronger outcomes in education and health in order to sustain long-term inclusive growth.
“Malaysia’s success is not only about lifting people out of hardcore poverty. The country needs to have bigger ambitions,” she said.
She added that Malaysia already has solid foundations in place, including high enrolment at secondary level, wide healthcare access and the framework outlined in the 13th Malaysia Plan.
“The next steps for Malaysia are not about doing more of everything but about better connecting what Malaysia already has,” she said, adding that the country is well positioned to achieve a fair and high-income future. – December 6, 2025 SCOOP
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Felda proposes establishing national taskforce to develop oil palm carbon framework
GENTING HIGHLANDS: The Federal Land Development Authority (FELDA) has proposed the establishment a national task force led by the Ministry of Natural Resources and Environmental Sustainability to ensure that Malaysia develops a robust, transparent, and internationally recognised framework for oil palm-based carbon credits.
FELDA chairman Datuk Seri Ahmad Shabery Cheek said the agency with its extensive footprint and smallholder ecosystem, can serve as the national pilot project to operationalise and validate this framework.
"I propose that the taskforce include the Malaysian Green Technology and Climate Change Corporation or Bursa Malaysia as the operator of the national carbon registry.
"The Malaysian Palm Oil Board would act as the technical authority and methodology developer for oil palm-based carbon standards, while SIRIM Bhd, through SIRIM QAS International, would function as the accredited certification and verification body,” he said.
Ahmad Shabery said this in his keynote address at the Second Unlocking Revenue and Sustainability Exploring Carbon Credit Opportunities at the Palm Oil Industry 2025 Conference here, today.
With the theme, "ASEAN Biomass in Focus”, the conference has established itself as a key platform connecting the carbon market with the palm oil sector and supporting a future for the industry to lead in sustainability, leveraging carbon credits to reduce environmental impact and drive innovation.
Ahmad Shabery also said that the first step in the palm oil sector’s carbon-credit journey is to recognise and register Malaysia’s own oil palm-based carbon credits under a national carbon registry.
Once the carbon credits are recognised and traded, they will embody both pillars of Malaysia’s ASEAN 2025 vision: sustainability and inclusivity.
"They will represent the collective commitment of our government, industry, and smallholders to a greener, fairer, and more resilient future,” he said.
Meanwhile, Ahmad Shabery has also suggested introducing a carbon enhancement protocol into the Malaysian Sustainable Palm Oil (MSPO) certification, effectively transforming it into MSPO 3.0.
"This version (MSPO 3.0) will integrate carbon accounting and crediting mechanisms within the certification process,” he added. - Bernama/ The StarMY
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Indonesian Borneo’s Last Biodiverse Backbone Under Threat
Keeping Indigenous Peoples' stewardship on the frontlines of protecting biodiversity against industrial corporations
Key Findings
Mahakam Ulu Regency, which is located in the middle of the Kalimantan forest landscape bordering Malaysia, is a part of Kalimantan’s last forest backbone and biodiversity hotspots. It is also the upstream area of the second-longest river in Indonesia, the Mahakam River. With an administrative area of 1,531,500 hectares, about 89.5% of the area is still tropical forest, which has high biodiversity potential.
Nusantara Atlas estimated that in 2023, Mahakam Ulu still had 1,571,456 hectares of forest cover remaining, or about 85% of the district’s administrative area. This remaining forest is under threat by deforestation for the conversion of forests to palm oil plantations that began in early 2010, with the area of oil palm concession in 2023 being around 33,982 ha, pushing many species toward extinction and driving biodiversity toward collapse.
Key finding of the forest footprint evaluation in RAN’s Keep Borneo’s Forest Standing report 2021 shows that 172,709 hectares of rainforests have been converted to oil palm plantations in East Kalimantan — controlled by major corporate suppliers — channeling forest-risk commodities into global supply chains. Much of this deforestation overlaps with Indigenous Dayak territories, threatening their livelihoods, cultural survival, and land rights. Despite corporate “zero-deforestation” pledges, these industrial corporations continue to drive ecosystem collapse and human rights violations through their sourcing practices.
In the heart of East Kalimantan, where the Mahakam River meanders through dense tropical forests and ancient peat swamps, lies one of Borneo’s last living ecosystem backbones — the Mahakam Landscape. This vast mosaic of rainforests, rivers, and wetlands still carries the memory of an island once blanketed in green.
The Mahakam landscape refers to the watershed of Indonesia’s second-longest river, which flows for 931 km. This landscape stretches over 77,000 km² and is divided into upstream and downstream areas. The upper river area located in Mahakam Ulu regency is one of the last bastions of intact rainforest in the landscape — it forms part of the backbone of biodiversity in Kalimantan, connecting forest corridors in the provinces of West Kalimantan and North Kalimantan. Lower Mahakam, which lies in the two other adjacent regencies of West Kutai and Kutai Kartanegara, is also home to critical wetlands and peatlands, yet extractive industries are already having a destructive impact. Rainforest Action Network
World Bank hails Malaysia’s poverty gains, urges shift towards more equitable growth
A senior World Bank economist says Malaysia has largely achieved its hardcore poverty eradication target and must now prioritise inclusive development, especially in education and healthcare
KUALA LUMPUR – The World Bank has praised Malaysia’s success in drastically reducing poverty levels, but says the country’s next challenge lies in achieving more equitable and inclusive growth.
World Bank senior economist for poverty and equity, Ririn Salwa Purnamasari, acknowledged Malaysia’s rapid progress over recent decades, noting that hardcore poverty has now been almost completely eliminated.
“Malaysia’s efforts in poverty and inequality reduction have been impressive. Hardcore poverty is now almost non-existent. The government’s target on eliminating hardcore poverty has essentially been met,” she was quoted saying by Bernama.
Ririn said the nation must now move beyond eradicating hardcore poverty and look towards improving the overall quality of development. She highlighted the need for stronger outcomes in education and health in order to sustain long-term inclusive growth.
“Malaysia’s success is not only about lifting people out of hardcore poverty. The country needs to have bigger ambitions,” she said.
She added that Malaysia already has solid foundations in place, including high enrolment at secondary level, wide healthcare access and the framework outlined in the 13th Malaysia Plan.
“The next steps for Malaysia are not about doing more of everything but about better connecting what Malaysia already has,” she said, adding that the country is well positioned to achieve a fair and high-income future. – December 6, 2025 SCOOP
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Felda proposes establishing national taskforce to develop oil palm carbon framework
GENTING HIGHLANDS: The Federal Land Development Authority (FELDA) has proposed the establishment a national task force led by the Ministry of Natural Resources and Environmental Sustainability to ensure that Malaysia develops a robust, transparent, and internationally recognised framework for oil palm-based carbon credits.
FELDA chairman Datuk Seri Ahmad Shabery Cheek said the agency with its extensive footprint and smallholder ecosystem, can serve as the national pilot project to operationalise and validate this framework.
"I propose that the taskforce include the Malaysian Green Technology and Climate Change Corporation or Bursa Malaysia as the operator of the national carbon registry.
"The Malaysian Palm Oil Board would act as the technical authority and methodology developer for oil palm-based carbon standards, while SIRIM Bhd, through SIRIM QAS International, would function as the accredited certification and verification body,” he said.
Ahmad Shabery said this in his keynote address at the Second Unlocking Revenue and Sustainability Exploring Carbon Credit Opportunities at the Palm Oil Industry 2025 Conference here, today.
With the theme, "ASEAN Biomass in Focus”, the conference has established itself as a key platform connecting the carbon market with the palm oil sector and supporting a future for the industry to lead in sustainability, leveraging carbon credits to reduce environmental impact and drive innovation.
Ahmad Shabery also said that the first step in the palm oil sector’s carbon-credit journey is to recognise and register Malaysia’s own oil palm-based carbon credits under a national carbon registry.
Once the carbon credits are recognised and traded, they will embody both pillars of Malaysia’s ASEAN 2025 vision: sustainability and inclusivity.
"They will represent the collective commitment of our government, industry, and smallholders to a greener, fairer, and more resilient future,” he said.
Meanwhile, Ahmad Shabery has also suggested introducing a carbon enhancement protocol into the Malaysian Sustainable Palm Oil (MSPO) certification, effectively transforming it into MSPO 3.0.
"This version (MSPO 3.0) will integrate carbon accounting and crediting mechanisms within the certification process,” he added. - Bernama/ The StarMY
--------
Indonesian Borneo’s Last Biodiverse Backbone Under Threat
Keeping Indigenous Peoples' stewardship on the frontlines of protecting biodiversity against industrial corporations
Key Findings
Mahakam Ulu Regency, which is located in the middle of the Kalimantan forest landscape bordering Malaysia, is a part of Kalimantan’s last forest backbone and biodiversity hotspots. It is also the upstream area of the second-longest river in Indonesia, the Mahakam River. With an administrative area of 1,531,500 hectares, about 89.5% of the area is still tropical forest, which has high biodiversity potential.
Nusantara Atlas estimated that in 2023, Mahakam Ulu still had 1,571,456 hectares of forest cover remaining, or about 85% of the district’s administrative area. This remaining forest is under threat by deforestation for the conversion of forests to palm oil plantations that began in early 2010, with the area of oil palm concession in 2023 being around 33,982 ha, pushing many species toward extinction and driving biodiversity toward collapse.
Key finding of the forest footprint evaluation in RAN’s Keep Borneo’s Forest Standing report 2021 shows that 172,709 hectares of rainforests have been converted to oil palm plantations in East Kalimantan — controlled by major corporate suppliers — channeling forest-risk commodities into global supply chains. Much of this deforestation overlaps with Indigenous Dayak territories, threatening their livelihoods, cultural survival, and land rights. Despite corporate “zero-deforestation” pledges, these industrial corporations continue to drive ecosystem collapse and human rights violations through their sourcing practices.
In the heart of East Kalimantan, where the Mahakam River meanders through dense tropical forests and ancient peat swamps, lies one of Borneo’s last living ecosystem backbones — the Mahakam Landscape. This vast mosaic of rainforests, rivers, and wetlands still carries the memory of an island once blanketed in green.
The Mahakam landscape refers to the watershed of Indonesia’s second-longest river, which flows for 931 km. This landscape stretches over 77,000 km² and is divided into upstream and downstream areas. The upper river area located in Mahakam Ulu regency is one of the last bastions of intact rainforest in the landscape — it forms part of the backbone of biodiversity in Kalimantan, connecting forest corridors in the provinces of West Kalimantan and North Kalimantan. Lower Mahakam, which lies in the two other adjacent regencies of West Kutai and Kutai Kartanegara, is also home to critical wetlands and peatlands, yet extractive industries are already having a destructive impact. Rainforest Action Network
December 05, 2025
EU to delay anti-deforestation law. Again.
It continues a trend of cutting back, delaying and cancelling EU laws brought in under the European Green Deal.
The European Union will delay for a year and cut back a controversial law targeting global deforestation, following a backlash from member countries and right-wing lawmakers.
The European Commission, which holds executive power, bowed to pressure from the Parliament and the Council of the EU late Thursday, agreeing to put off implementation of the anti-deforestation law until Dec. 2026 and review the rules early next year.
It's the second time the EU has delayed the law for a year, and continues a trend of weakening and cancelling EU environmental laws under pressure from business, trading partners and far-right lawmakers.
“The aim is to ensure simplification of the deforestation regulation so it can be implemented effectively and without unnecessary burdens, while keeping its environmental ambition,” said the Danish presidency of the Council in a written statement.
The EU's anti-deforestation law requires that companies police their supply chains to ensure that any commodities they use, such as palm oil, beef or coffee, have not contributed to deforestation.
In a bid to appease unhappy trade partners and businesses, the Commission in October proposed to make the law effective Dec. 30 with some simplifying amendments and a six-month grace period for companies that struggle to comply.
But now, under the deal struck Thursday night, businesses will have at least one more year to comply with the rules. It will apply for large operators and traders as of Dec. 30, 2026, and for small operators as of June 30, 2027.
The agreement introduces simpler due diligence requirements. By next April the Commission must review the law’s impact and its administrative burden.
The co-legislators also agreed to exclude printed products from the scope of the regulation, as requested by the Parliament. Books are “sources of content and information and should not be treated as commodities,” said Federation of European Publishers President Sonia Draga last week.
"The omnibus reaps yet another victim: forests and their protections against the endless consumption of pulp and paper,” said Mateus Carvalho, a consumption reduction campaigner at the Environmental Paper Network.
The Parliament is scheduled to vote on the deal Dec. 16.Politico
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EU hits deal to delay key deforestation law, review in April
Lawmakers agreed to exempt printed products from the scope of the regulation
EU lawmakers reached a political agreement on Thursday evening to delay the implementation of the EU Deforestation Regulation (EUDR) by one year and insert a review clause, focusing on simplification, to be carried out by April 2026.
The deal, struck in a single round of negotiations between MEPs and Council, will now be formally approved by the European Parliament during the Strasbourg plenary in the week of 15 December.
Meanwhile, EU governments will also have to give their final endorsement.
The law’s implementation had already been pushed back after a similarly rushed negotiation process in December last year.
The agreement confirms that companies placing products such as cocoa, coffee, soy, palm oil, rubber, livestock, and timber on the EU market will now have until the end of 2026 to comply with due-diligence obligations proving their supply chains are not linked to deforestation.
Small companies will only have to comply from 30 June, 2027 under the deal.
Parliament and Council agreed to request a new impact assessment by April 2026, a move that could pave the way for reopening of the legislation.
Socialist Delara Burkhardt said the outcome was expected but still disappointing. “We had two clear red lines: we cannot accept a review before the regulation even enters into application,” she added.
Speaking to Euractiv before the negotiations, the lead Parliament negotiator, Christine Schneider from the European People’s Party, said that the review clause doesn’t necessarily mean that the entire text will be reopened in April.
“We want to avoid again being under time pressure without the possibility to discuss things in a democratic way,” she added, noting that this would help in case that, the Commission “comes again with a problem” by October.
Lawmakers also agreed to exempt printed products such as books, newspapers and pictures from the scope of the regulation – a demand coming from MEPs.
Green MEP Marie Toussaint feared that other goods would follow after the printed products’ exemption, including leather. “This was not a technical adjustment: it is a political dismantling,” she said. Euractiv
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Palm oil consumption forecast to increase
PETALING JAYA: Bearish supply demand fundamentals in the edible oils market could weigh on the price of crude palm oil (CPO) in 2026, according to MARC Ratings.
It projects CPO prices to range between RM3,850 and RM4,250 per tonne in 2026 as compared to RM4,300 per tonne in 2025, underpinned by more favourable weather patterns, recovering yields and a gradual normalisation in global production of edible oils.
The ratings firm said other factors include demand for biodiesel and a weaker US dollar, underpinned a higher average CPO price in 2025 compared to 2024 – supported by elevated prices of competing vegetable oils.
It noted demand dynamics are supportive with the US Department of Agriculture forecasting global palm oil consumption to grow but at slightly below total production.
Major destination markets like India are expected to maintain purchases, supported by CPO’s price competitiveness against other vegetable oils.
The Food and Agriculture Organization of the United Nations is projecting a 2.1% increase in the utilisation of oils and fats in 2026, mainly for biofuels.
Indonesia’s move to increase its biodiesel blend rate to 40% (B40) from 35% (B35) helped CPO prices in 2025.
MARC Ratings stated a 10% increase in the biodiesel blend rate could raise annual palm oil consumption by above four million tonnes or around 5% of global production.
Jakarta intends to raise the blend rate further to B50 in 2026, according to reports.
CPO production has been supported by yield recovery with the improved weather conditions after the 2023-2024 El Niño event. Total output in Indonesia had risen by 11.3% year-to-date as at September, while Malaysia posted a modest 1.8% increase as at October, it added.
Drier weather in Canada and Europe may hinder yield recovery in rapeseed oil production there, but Brazil’s soybean production is set to grow in 2026, which could offset any drop in production in Argentina or the United States.
“Collectively, these mixed conditions for competing oils suggest that CPO may struggle to revisit the price highs observed in late 2024 and early 2025,” MARC Ratings forecastThe Star
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Palm oil sector could drive Malaysia’s net-zero emissions goals
GENTING HIGHLANDS (Dec 5): The palm oil sector could be a major contributor towards Malaysia’s goal of achieving net-zero emissions by 2050, rather than a liability, as mature oil palm plantations sequester substantial amounts of carbon dioxide (CO2).
Malaysian Palm Oil Board (MPOB) director general Datuk Dr Ahmad Parveez Ghulam Khadir said with sustainable practices and innovations, the sector could further enhance carbon stocks while supplying food, fuel, and materials to a growing world.
“Malaysia is home to approximately 5.7 million hectares of oil palm, making us the world’s second-largest producer of palm oil.
“This vast plantation area is more than just a source of edible oil and renewable energy; it is a massive carbon sink, a biodiversity corridor when managed sustainably, and now, increasingly, a platform for generating high-integrity carbon credits,” he said.
Ahmad Parveez said this during his opening address at the 2nd Unlocking Revenue and Sustainability Exploring Carbon Credit Opportunities in The Palm Oil Industry 2025 Conference here on Friday.
With the theme “Asean Biomass in Focus”, the conference established itself as a key platform connecting the carbon market with the palm oil sector, and supporting a future for the industry to lead in sustainability, leveraging carbon credits to reduce environmental impact and drive innovation.
According to Ahmad Parveez, studies also showed that mature oil palm plantations could store an estimated up to 30-40 tonnes of carbon per hectare in the standing biomass alone, proving their role as a significant terrestrial carbon sink.
He also said carbon credit methodologies are specifically needed to design oil palm biomass shine, as Malaysia generates more than 100 million tonnes of oil palm biomass annually from trunks, fronds, empty fruit bunches, mesocarp fibres, palm kernel shells, and mill effluent.
This significant volume of by-products represents immense potential as an abundant, renewable, and sustainable resource for renewable energy generation, the production of high-value bio-products and biochemicals, as well as for the application in sustainable construction and green building materials. The Edge
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COP30: Biofuel industries advocate changes to the Soy Moratorium, a pact against Amazon deforestation
Signed by environmentalists and businesses, the moratorium is seen as one of the main factors for reducing deforestation in municipalities with grain plantations in the Amazon. The debate on biofuels takes place at a time when Brazil is trying to be a global leader on the subject.
FROM BELÉM, Pará – André Nassar is the executive president of the Brazilian Association of Vegetable Oil Industries (ABIOVE), an organization representing the country's largest grain processors. He says that companies do not want to “break with the soy moratorium,” but he advocates “some kind of improvement” in the agreement that bans sourcing from areas deforested after July 2008 in the Amazon.
The statement was given to Repórter Brasil after he participated in a panel on Saturday (15) during COP30, in Belém, Pará. The event discussed biofuel production in Brazil. Today, seven out of ten liters of diesel manufactured from agricultural raw materials come from soybeans.
Environmental organizations claim that changes to the agreement could weaken the fight against deforestation and advocate keeping the current rules. To date, no concrete proposal has been presented to change them.
Signed by private companies, NGOs, and public authorities, the moratorium is considered one of the main instruments for preserving the Amazon biome, having contributed to a 69% reduction in clearing of native forests by 2022 , according to estimates by the Soy Working Group (GTS), which includes environmental organizations, the federal government, businesses, and associations such as ABIOVE itself.
Rural producers critical of the agreement want to plant soy in areas deforested after 2008, which cannot supply signatory companies, according to the rules of the agreement.
Currently, the business pact is under evaluation by Brazil's Administrative Council for Economic Defense (CADE) and the Supreme Federal Court (STF).
Supreme Court Justice Flávio Dino ordered the suspension of all legal and administrative actions that discuss the validity of the moratorium and its compatibility with competition rules. The injunction seeks to avoid conflicting decisions and establish a “safe legal framework” for agribusinesses in a scenario of billion-dollar disputes.
The president of ABIOVE says that the industry has been committed to the pact for almost 20 years. According to Nassar, rural producer associations have been pressuring companies to be paid compensation for areas that have ceased to be cultivated due to the moratorium, which he sees as “absurd.”
Asked if increasing soybean production to meet the higher demand for biofuels could increase pressure on the forests, he disagreed. "I don't agree with the argument that more biodiesel results in more soybean-planted area. Expansion of plantations is driven much more by exports of soybeans as grains. It's the demand for food, not the demand for energy," he argued.
Biofuel offensive involves “producing” science, executive says
In his presentation at the COP30 panel, Nassar stated that the soybean oil industry needs to “produce science to work on all the communication aspects.” Addressed to an audience dominated by industry representatives, the sentence was used to advocate agricultural biofuels at a time when the sector is under criticism.
Nassar stated that, after the UN climate conference, “the whole world will zoom in on Brazil” to discuss agricultural biofuels and question two points: competition with food production and deforestation associated with supply chains. “We are ready for that,” he said.
The optimistic statements contrast with the scenario that social organizations and researchers have been documenting on the ground. Far from the controlled environment of the COP30 negotiation zone, the supply chains that underpin ethanol, biodiesel, and SAF (sustainable aviation fuel) have been associated with territorial conflicts, deforestation, and labor violations. Reporter Brasil
The debate on biofuels at the climate summit is taking place at a time when the Brazilian government is trying to make the country a global leader on the agenda. In Brasília, President Lula presented the Belém 4X Commitment – an international declaration sponsored by Brazil, Italy, and Japan that proposes quadrupling the global use of sustainable fuels by 2035 over 2024.
The document includes biofuels, biogas, hydrogen, and e-fuels, and speaks of energy transition, carbon neutrality, and rapid expansion of these sources in sectors such as transportation, aviation, and industry.
The debate over the land use for food or biofuel has not been overcome
According to ABIOVE's president, two-thirds of Brazilian soybean production is exported as grains, and only one-third is processed. The goal is to increase industrialization – converting soybeans into biofuel is a core part of this process. He says that industrialization would increase the value paid to producers by 50% and add four times more value to the soybean supply chain.
Despite the enthusiasm for the COP showcase, he acknowledged that the “food vs. fuel” debate – the dispute between food and fuel production regarding land use – has not been overcome yet, especially in Europe. He said that there are several documents and studies that, in the industry's view, show the absence of relevant adverse effects, but that “the other parties cling to the food vs. fuel argument based on premises rather than evidence.”
In his opinion, the main obstacle is improving communication. He pointed out the need to “disseminate positive data and information” about biofuels to influence decision-making forums and public opinion.
He recalled that COP30 has “several panels on the subject” and that it is necessary to “keep the subject alive so as not to create resistance.” Asked about the legacy of the conference, he replied that it is “the recognition of biofuels as decarbonization-based energy transition” and declared that he was “super happy about that.” Reporter Brasil
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Top cooking oils linked to obesity in India
Some cooking oils and fats when consumed often or in large amounts increase body weight, fat accumulation, or metabolic problems. Below are six cooking oils and fats based on a study conducted by NIH associated with higher obesity and health risk potential.
Soybean Oil: Frequent consumption of oils high in certain polyunsaturated fats like soybean oil may contribute to greater weight gain compared with other oils. Animal research suggests soybean oil diets led to more fat accumulation than other fats in comparable calorie diets.
Butter and Margarine: Regular consumption of solid fats such as butter and margarine is associated with higher cardiometabolic risk and increased mortality which often correlates with obesity and its complications.
Palm Oil: Palm oil is rich in saturated fats and palmitic acid. High intake of saturated fat oils such as palm oil has been linked to increased LDL (“bad”) cholesterol, and historically, saturated-fat heavy oils are associated with obesity and related metabolic problems.
Over use of Any High Calorie Oil: Even “healthy” oils contain a lot of calories. Regularly cooking or frying with large amounts of oil can lead to excessive calorie intake, which over time can contribute to weight gain, fat accumulation, and obesity, regardless of the type of oil. This is a general risk with oils and fats. Indian Express
EU to delay anti-deforestation law. Again.
It continues a trend of cutting back, delaying and cancelling EU laws brought in under the European Green Deal.
The European Union will delay for a year and cut back a controversial law targeting global deforestation, following a backlash from member countries and right-wing lawmakers.
The European Commission, which holds executive power, bowed to pressure from the Parliament and the Council of the EU late Thursday, agreeing to put off implementation of the anti-deforestation law until Dec. 2026 and review the rules early next year.
It's the second time the EU has delayed the law for a year, and continues a trend of weakening and cancelling EU environmental laws under pressure from business, trading partners and far-right lawmakers.
“The aim is to ensure simplification of the deforestation regulation so it can be implemented effectively and without unnecessary burdens, while keeping its environmental ambition,” said the Danish presidency of the Council in a written statement.
The EU's anti-deforestation law requires that companies police their supply chains to ensure that any commodities they use, such as palm oil, beef or coffee, have not contributed to deforestation.
In a bid to appease unhappy trade partners and businesses, the Commission in October proposed to make the law effective Dec. 30 with some simplifying amendments and a six-month grace period for companies that struggle to comply.
But now, under the deal struck Thursday night, businesses will have at least one more year to comply with the rules. It will apply for large operators and traders as of Dec. 30, 2026, and for small operators as of June 30, 2027.
The agreement introduces simpler due diligence requirements. By next April the Commission must review the law’s impact and its administrative burden.
The co-legislators also agreed to exclude printed products from the scope of the regulation, as requested by the Parliament. Books are “sources of content and information and should not be treated as commodities,” said Federation of European Publishers President Sonia Draga last week.
"The omnibus reaps yet another victim: forests and their protections against the endless consumption of pulp and paper,” said Mateus Carvalho, a consumption reduction campaigner at the Environmental Paper Network.
The Parliament is scheduled to vote on the deal Dec. 16.Politico
--------
EU hits deal to delay key deforestation law, review in April
Lawmakers agreed to exempt printed products from the scope of the regulation
EU lawmakers reached a political agreement on Thursday evening to delay the implementation of the EU Deforestation Regulation (EUDR) by one year and insert a review clause, focusing on simplification, to be carried out by April 2026.
The deal, struck in a single round of negotiations between MEPs and Council, will now be formally approved by the European Parliament during the Strasbourg plenary in the week of 15 December.
Meanwhile, EU governments will also have to give their final endorsement.
The law’s implementation had already been pushed back after a similarly rushed negotiation process in December last year.
The agreement confirms that companies placing products such as cocoa, coffee, soy, palm oil, rubber, livestock, and timber on the EU market will now have until the end of 2026 to comply with due-diligence obligations proving their supply chains are not linked to deforestation.
Small companies will only have to comply from 30 June, 2027 under the deal.
Parliament and Council agreed to request a new impact assessment by April 2026, a move that could pave the way for reopening of the legislation.
Socialist Delara Burkhardt said the outcome was expected but still disappointing. “We had two clear red lines: we cannot accept a review before the regulation even enters into application,” she added.
Speaking to Euractiv before the negotiations, the lead Parliament negotiator, Christine Schneider from the European People’s Party, said that the review clause doesn’t necessarily mean that the entire text will be reopened in April.
“We want to avoid again being under time pressure without the possibility to discuss things in a democratic way,” she added, noting that this would help in case that, the Commission “comes again with a problem” by October.
Lawmakers also agreed to exempt printed products such as books, newspapers and pictures from the scope of the regulation – a demand coming from MEPs.
Green MEP Marie Toussaint feared that other goods would follow after the printed products’ exemption, including leather. “This was not a technical adjustment: it is a political dismantling,” she said. Euractiv
--------
Palm oil consumption forecast to increase
PETALING JAYA: Bearish supply demand fundamentals in the edible oils market could weigh on the price of crude palm oil (CPO) in 2026, according to MARC Ratings.
It projects CPO prices to range between RM3,850 and RM4,250 per tonne in 2026 as compared to RM4,300 per tonne in 2025, underpinned by more favourable weather patterns, recovering yields and a gradual normalisation in global production of edible oils.
The ratings firm said other factors include demand for biodiesel and a weaker US dollar, underpinned a higher average CPO price in 2025 compared to 2024 – supported by elevated prices of competing vegetable oils.
It noted demand dynamics are supportive with the US Department of Agriculture forecasting global palm oil consumption to grow but at slightly below total production.
Major destination markets like India are expected to maintain purchases, supported by CPO’s price competitiveness against other vegetable oils.
The Food and Agriculture Organization of the United Nations is projecting a 2.1% increase in the utilisation of oils and fats in 2026, mainly for biofuels.
Indonesia’s move to increase its biodiesel blend rate to 40% (B40) from 35% (B35) helped CPO prices in 2025.
MARC Ratings stated a 10% increase in the biodiesel blend rate could raise annual palm oil consumption by above four million tonnes or around 5% of global production.
Jakarta intends to raise the blend rate further to B50 in 2026, according to reports.
CPO production has been supported by yield recovery with the improved weather conditions after the 2023-2024 El Niño event. Total output in Indonesia had risen by 11.3% year-to-date as at September, while Malaysia posted a modest 1.8% increase as at October, it added.
Drier weather in Canada and Europe may hinder yield recovery in rapeseed oil production there, but Brazil’s soybean production is set to grow in 2026, which could offset any drop in production in Argentina or the United States.
“Collectively, these mixed conditions for competing oils suggest that CPO may struggle to revisit the price highs observed in late 2024 and early 2025,” MARC Ratings forecastThe Star
---------
Palm oil sector could drive Malaysia’s net-zero emissions goals
GENTING HIGHLANDS (Dec 5): The palm oil sector could be a major contributor towards Malaysia’s goal of achieving net-zero emissions by 2050, rather than a liability, as mature oil palm plantations sequester substantial amounts of carbon dioxide (CO2).
Malaysian Palm Oil Board (MPOB) director general Datuk Dr Ahmad Parveez Ghulam Khadir said with sustainable practices and innovations, the sector could further enhance carbon stocks while supplying food, fuel, and materials to a growing world.
“Malaysia is home to approximately 5.7 million hectares of oil palm, making us the world’s second-largest producer of palm oil.
“This vast plantation area is more than just a source of edible oil and renewable energy; it is a massive carbon sink, a biodiversity corridor when managed sustainably, and now, increasingly, a platform for generating high-integrity carbon credits,” he said.
Ahmad Parveez said this during his opening address at the 2nd Unlocking Revenue and Sustainability Exploring Carbon Credit Opportunities in The Palm Oil Industry 2025 Conference here on Friday.
With the theme “Asean Biomass in Focus”, the conference established itself as a key platform connecting the carbon market with the palm oil sector, and supporting a future for the industry to lead in sustainability, leveraging carbon credits to reduce environmental impact and drive innovation.
According to Ahmad Parveez, studies also showed that mature oil palm plantations could store an estimated up to 30-40 tonnes of carbon per hectare in the standing biomass alone, proving their role as a significant terrestrial carbon sink.
He also said carbon credit methodologies are specifically needed to design oil palm biomass shine, as Malaysia generates more than 100 million tonnes of oil palm biomass annually from trunks, fronds, empty fruit bunches, mesocarp fibres, palm kernel shells, and mill effluent.
This significant volume of by-products represents immense potential as an abundant, renewable, and sustainable resource for renewable energy generation, the production of high-value bio-products and biochemicals, as well as for the application in sustainable construction and green building materials. The Edge
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COP30: Biofuel industries advocate changes to the Soy Moratorium, a pact against Amazon deforestation
Signed by environmentalists and businesses, the moratorium is seen as one of the main factors for reducing deforestation in municipalities with grain plantations in the Amazon. The debate on biofuels takes place at a time when Brazil is trying to be a global leader on the subject.
FROM BELÉM, Pará – André Nassar is the executive president of the Brazilian Association of Vegetable Oil Industries (ABIOVE), an organization representing the country's largest grain processors. He says that companies do not want to “break with the soy moratorium,” but he advocates “some kind of improvement” in the agreement that bans sourcing from areas deforested after July 2008 in the Amazon.
The statement was given to Repórter Brasil after he participated in a panel on Saturday (15) during COP30, in Belém, Pará. The event discussed biofuel production in Brazil. Today, seven out of ten liters of diesel manufactured from agricultural raw materials come from soybeans.
Environmental organizations claim that changes to the agreement could weaken the fight against deforestation and advocate keeping the current rules. To date, no concrete proposal has been presented to change them.
Signed by private companies, NGOs, and public authorities, the moratorium is considered one of the main instruments for preserving the Amazon biome, having contributed to a 69% reduction in clearing of native forests by 2022 , according to estimates by the Soy Working Group (GTS), which includes environmental organizations, the federal government, businesses, and associations such as ABIOVE itself.
Rural producers critical of the agreement want to plant soy in areas deforested after 2008, which cannot supply signatory companies, according to the rules of the agreement.
Currently, the business pact is under evaluation by Brazil's Administrative Council for Economic Defense (CADE) and the Supreme Federal Court (STF).
Supreme Court Justice Flávio Dino ordered the suspension of all legal and administrative actions that discuss the validity of the moratorium and its compatibility with competition rules. The injunction seeks to avoid conflicting decisions and establish a “safe legal framework” for agribusinesses in a scenario of billion-dollar disputes.
The president of ABIOVE says that the industry has been committed to the pact for almost 20 years. According to Nassar, rural producer associations have been pressuring companies to be paid compensation for areas that have ceased to be cultivated due to the moratorium, which he sees as “absurd.”
Asked if increasing soybean production to meet the higher demand for biofuels could increase pressure on the forests, he disagreed. "I don't agree with the argument that more biodiesel results in more soybean-planted area. Expansion of plantations is driven much more by exports of soybeans as grains. It's the demand for food, not the demand for energy," he argued.
Biofuel offensive involves “producing” science, executive says
In his presentation at the COP30 panel, Nassar stated that the soybean oil industry needs to “produce science to work on all the communication aspects.” Addressed to an audience dominated by industry representatives, the sentence was used to advocate agricultural biofuels at a time when the sector is under criticism.
Nassar stated that, after the UN climate conference, “the whole world will zoom in on Brazil” to discuss agricultural biofuels and question two points: competition with food production and deforestation associated with supply chains. “We are ready for that,” he said.
The optimistic statements contrast with the scenario that social organizations and researchers have been documenting on the ground. Far from the controlled environment of the COP30 negotiation zone, the supply chains that underpin ethanol, biodiesel, and SAF (sustainable aviation fuel) have been associated with territorial conflicts, deforestation, and labor violations. Reporter Brasil
The debate on biofuels at the climate summit is taking place at a time when the Brazilian government is trying to make the country a global leader on the agenda. In Brasília, President Lula presented the Belém 4X Commitment – an international declaration sponsored by Brazil, Italy, and Japan that proposes quadrupling the global use of sustainable fuels by 2035 over 2024.
The document includes biofuels, biogas, hydrogen, and e-fuels, and speaks of energy transition, carbon neutrality, and rapid expansion of these sources in sectors such as transportation, aviation, and industry.
The debate over the land use for food or biofuel has not been overcome
According to ABIOVE's president, two-thirds of Brazilian soybean production is exported as grains, and only one-third is processed. The goal is to increase industrialization – converting soybeans into biofuel is a core part of this process. He says that industrialization would increase the value paid to producers by 50% and add four times more value to the soybean supply chain.
Despite the enthusiasm for the COP showcase, he acknowledged that the “food vs. fuel” debate – the dispute between food and fuel production regarding land use – has not been overcome yet, especially in Europe. He said that there are several documents and studies that, in the industry's view, show the absence of relevant adverse effects, but that “the other parties cling to the food vs. fuel argument based on premises rather than evidence.”
In his opinion, the main obstacle is improving communication. He pointed out the need to “disseminate positive data and information” about biofuels to influence decision-making forums and public opinion.
He recalled that COP30 has “several panels on the subject” and that it is necessary to “keep the subject alive so as not to create resistance.” Asked about the legacy of the conference, he replied that it is “the recognition of biofuels as decarbonization-based energy transition” and declared that he was “super happy about that.” Reporter Brasil
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Top cooking oils linked to obesity in India
Some cooking oils and fats when consumed often or in large amounts increase body weight, fat accumulation, or metabolic problems. Below are six cooking oils and fats based on a study conducted by NIH associated with higher obesity and health risk potential.
Soybean Oil: Frequent consumption of oils high in certain polyunsaturated fats like soybean oil may contribute to greater weight gain compared with other oils. Animal research suggests soybean oil diets led to more fat accumulation than other fats in comparable calorie diets.
Butter and Margarine: Regular consumption of solid fats such as butter and margarine is associated with higher cardiometabolic risk and increased mortality which often correlates with obesity and its complications.
Palm Oil: Palm oil is rich in saturated fats and palmitic acid. High intake of saturated fat oils such as palm oil has been linked to increased LDL (“bad”) cholesterol, and historically, saturated-fat heavy oils are associated with obesity and related metabolic problems.
Over use of Any High Calorie Oil: Even “healthy” oils contain a lot of calories. Regularly cooking or frying with large amounts of oil can lead to excessive calorie intake, which over time can contribute to weight gain, fat accumulation, and obesity, regardless of the type of oil. This is a general risk with oils and fats. Indian Express
December 04, 2025
What to expect in the end-game of EU deforestation talks
The Parliament and Council positions are mostly aligned, except on an exemption for books and other printed products
With the real political fights already settled, negotiators from the European Parliament and Council are poised to clinch an easy deal Thursday on tweaks to the EU’s deforestation rules.
The EU Deforestation Regulation (EUDR) should have entered into force by December this year and requires companies to demonstrate that certain products sold in the EU – including cocoa, coffee, soy, palm oil, rubber, livestock, and timber – did not contribute to deforestation.
Thursday evening’s meeting will be the only round of inter-institutional talks needed to seal a one-year delay and include a clause allowing the legislation to be reopened for further changes by April next year.
After EU governments signed off on their position – which was heavily shaped by Germany – the centre-right European People’s Party (EPP) moved to mirror it, aiming to fast-track talks and avoid slipping past the December implementation deadline.
The decision to reopen the file was prompted by Commission warnings that technical snags could derail the planned December 2025 rollout. Enforcement had already been pushed back once, in 2024, after a similarly frantic pre-Christmas round of negotiations.
This time, however, MEPs and member states pushed well beyond the Commission’s proposal. In their negotiating positions, in addition to the extra year for all companies to comply, both institutions call for a new impact assessment by April 2026, which could pave the way for yet another legislative reopening.
That demand split the pro-EU camp. The Socialist and Renew negotiators, Delara Burkhardt and Pascal Canfin, failed to strike a deal with the EPP after multiple rounds of talks, opposing a review of the law before it even enters into force.
To show discontent with the right-wing alliance, the lead negotiators for the S&D, Renew, and the Greens/EFA won’t be present at tomorrow’s meeting, two parliamentary staffers confirmed.
At last week’s plenary vote, the EPP instead turned to the right-wing bloc – including Patriots for Europe and the European Conservatives and Reformists – to push through several amendments. Some of the changes were ultimately also backed by 40% of Renew MEPs, who broke with Canfin’s line.
The only sticking point that is still dividing Parliament and Council is that MEPs want to carve out an exemption for printed books, newspapers, photographs, and other products from the printing sector. However, a parliamentary staffer close to the negotiations said that even if the Council doesn’t accept it, it won’t be a dealbreaker for MEPs. Euractiv
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Agri-feedstocks, the emerging backbone of Europe’s biofuel ambitions
Europe’s energy giants are seeking to harness the potential of agricultural residues to increase the use of biofuel
As Europe races to decarbonise transport, biofuels are taking on renewed strategic importance. The European Commission has just published a bioeconomy strategy which recommends increasing the use of advanced biofuels for heavy transport. Europe’s energy companies are busy looking at ways to do that, and they have one major element in their sights – agri-feedstocks.
Biofuels derived from agricultural residues and non-food crops are emerging as a critical pillar of Europe’s clean-energy strategy. They are able to provide immediate emissions reductions in sectors where alternatives remain costly or technically challenging. They’re also compatible with existing transport infrastructure, particularly for Sustainable Aviation Fuels (SAF) and marine fuels.
The International Energy Agency expects a surge in demand for these fuels: by 2030, advanced biofuels from waste, residues, and non-food crops could represent more than 40% of global consumption, up from just 9% in 2021.
But biofuels also come with challenges and controversy. The EU backtracked on its original subtarget for biofuels in transport as part of the Renewable Energy Directive (RED) because it was found that the incentives to use ‘first-generation’ biofuels such as palm oil were driving indirect land use change (ILUC), diverting food crops to fuel and contributing to deforestation. Now, only second-generation biofuels can be counted toward the subtarget.
An agricultural revolution
Energy companies in Europe are examining how agri-feedstock chains can be carefully designed to be utilised for biofuels without disrupting food production or driving deforestation. This can be achieved, for instance, by utilising feedstocks derived from degraded land, rotational crops, or residues. But this will require changes to how agriculture is conducted in Europe, says Nicolò Aggogeri, head of Agribusiness at the Italian energy giant Eni, which is growing its biofuels business.
“To fully unlock the potential of biofuels in decarbonising transport, agriculture needs to undergo a strategic transformation at scale,” he says. “The key lies in integrating new cropping systems – particularly intermediate crops – into existing production cycles and enhancing the productivity of underutilised [degraded] land, enabling feedstock expansion without triggering additional land use or compromising food security.”
Aggogeri says there is now a clear regulatory path forward for this approach, thanks to the inclusion of intermediate crops and crops cultivated on severely degraded lands in Annex IX of the revised RED. “Achieving this shift demands innovation on several fronts,” he says.
“Agronomic practices need to be reoriented toward soil regeneration, precision agriculture and water-efficient cultivation, supported by advanced seed genetics developed specifically for resilience and oil yield performance.”
The vegetable oil path
ENI is positioning itself to supply its growing biorefining network with sustainable vegetable oils for hydrogenated vegetable oil (HVO) production. Their strategy focuses on oil-bearing plants grown on degraded or underutilised land, especially castor crops resilient to arid conditions. Rotational crops such as rapeseed and sunflower that fit into existing agricultural cycles without competing with food production are also being pursued, as well as waste and residue streams such as used cooking oils, agro-industrial residues, and forestry by-products.
“HVO can contribute to the immediate decarbonization of transport sectors, both for light vehicles, supporting the development of alternative energy carriers, and for hard-to-abate transport sectors like road heavy duty, maritime and aviation,” says Aggogeri. “It is already available biofuel, and it is a drop-in product that can be used – also in pure form – in the existing distribution infrastructures and in all engines approved for its use.”
The RED’s emissions calculation criteria say HVO enables an emissions reduction of between 60% and 90% compared to fossil fuels, he says.
Such biorefineries, called Enilive, can be found in Venice and Sicily. They process waste feedstocks such as used cooking oil and animal fat, and agro-food industry residues integrated by vegetable oil volumes. These raw materials are delivered to the biorefineries by ships and tanker trucks and stored in tanks before undergoing a number of physical and chemical treatments to convert them into biofuels.
The feedstocks processed in biorefineries consist mainly of triglycerides and fatty acids, which are converted into hydrocarbons in the Ecofining unit. The final product properties are almost identical to those of fossil-based diesel fuel.
ENI isn’t the only energy company pursuing this strategy. Neste in Finland, Europe’s largest renewable diesel and SAF producer, has built one of the world’s biggest supply chains for waste- and residue-based oils.
TotalEnergies in France is converting several French refineries into biorefineries using rapeseed, animal fats and agricultural residues. Repsol in Spain is building an advanced biofuels plant in Cartagena that will rely on agricultural residues, and BP in the UK is expanding its European biofuel capacities through joint ventures with agricultural processors using advanced ethanol-to-jet technologies.
Partnerships with Africa
ENI and others are using agri-hubs, local pressing plants that form the industrial backbone of its supply chain, which are often operated with partners. By-products from pressing are valorised into animal feed or fertilisers, but can also be used as feedstocks. ENI now has these partnerships outside Italy in eight countries: Kenya, Ivory Coast, Mozambique, Congo, Angola, Kazakhstan, Vietnam and Indonesia, with further assessments underway in Europe, Brazil, Africa and Asia.
Since 2021, ENI has built a robust agri-feedstock chain in Kenya with two agri-hubs in Makueni and Bonje, with a combined capacity of 70,000 tonnes of vegetable oil annually. In the Congo, ENI has cultivated 15,000 hectares in 2025, supported by 200 new agricultural vehicles. They’ve also launched training programmes to build mechanisation skills and create a specialised labour force, with around 400 local technicians and tractor operators involved
All of this activity needs robust certification to demonstrate its contribution to sustainability. Agri feedstock supply chains are certified according to the European sustainability scheme ISCC-EU (International Sustainability and Carbon Certification) as required by the current EU RED regulatory framework.
A recent report by the consultancy Studio Gear Up provided recommendations for certification of these intermediate crops in the RED.
The report recommends introducing a definition of intermediate crops that focuses on the role they have in providing additional feedstock volumes compared to the existing practice at a farm, and that relates to their position in the rotation scheme. It also says the Commission should widen the optionality in RED definitions to allow for intermediate crops to count toward subtargets in all transport sectors. Euractiv
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Malaysia plans strengthened response to forced labour
A proposed new national action plan will help Malaysia reach its goal of eliminating forced labour by 2030.
Kuala Lumpur (ILO News) – Malaysia is strengthening its response to forced labour through the development of the country’s next National Action Plan on Forced Labour (NAP-FL) for the period 2026-2030.
A workshop organized by the Ministry of Human Resources (KESUMA) on 20-21 November 2025 with technical support from the International Labour Organization (ILO), brought together representatives of government, employers’, workers’ and civil society to review the draft plan.
Aimed at driving Malaysia toward meeting its goal of eliminating forced labour by 2030, the plan includes renewed commitments to prevention, stronger governance of labour migration and recruitment, improved enforcement and compliance systems, and expanded protection and remedy for victims, including migrant workers.
Participants discussed the main elements of the draft plan and also examined proposals for a strengthened governance structure to support coordinated implementation in Peninsular Malaysia, Sabah and Sarawak.
The Ministry of Human Resources underlined the Government’s determination to build on the first NAP-FL (2021–2025) and to keep forced labour high on the national agenda.
“The action plan that will be developed for 2026–2030 must be proactive, effective and commit to the nation’s aspiration of eliminating forced labour by 2030,” said Rafea'ah Binti Nahar, Undersecretary of the Policy Division, Ministry of Human Resources.
The ILO underscored that Malaysia’s efforts are anchored in its obligations under the ILO Forced Labour Convention, 1930 (No. 29) and its 2014 Protocol, and relevant international labour standards.
“The draft Plan is the result of a comprehensive and inclusive process, that reflects the strength of Malaysia’s approach and the belief that sustainable change is only possible when everyone is part of the solution,” said Tuomo Poutiainen, Deputy Regional Director of the ILO Regional Office for Asia and the Pacific. “Through collective action, we are building a future where forced labour is consigned to history.”
Following the workshop, the Ministry of Human Resources will consolidate inputs into a revised draft NAP-FL 2026–2030, which will be shared with the relevant ministries and agencies before being submitted to the Cabinet for approval. The ILO will continue to support Malaysia in implementing the plan, and in meeting its commitments under international labour standards, including ILO Convention 29 and its Protocol of 2014. ILO
What to expect in the end-game of EU deforestation talks
The Parliament and Council positions are mostly aligned, except on an exemption for books and other printed products
With the real political fights already settled, negotiators from the European Parliament and Council are poised to clinch an easy deal Thursday on tweaks to the EU’s deforestation rules.
The EU Deforestation Regulation (EUDR) should have entered into force by December this year and requires companies to demonstrate that certain products sold in the EU – including cocoa, coffee, soy, palm oil, rubber, livestock, and timber – did not contribute to deforestation.
Thursday evening’s meeting will be the only round of inter-institutional talks needed to seal a one-year delay and include a clause allowing the legislation to be reopened for further changes by April next year.
After EU governments signed off on their position – which was heavily shaped by Germany – the centre-right European People’s Party (EPP) moved to mirror it, aiming to fast-track talks and avoid slipping past the December implementation deadline.
The decision to reopen the file was prompted by Commission warnings that technical snags could derail the planned December 2025 rollout. Enforcement had already been pushed back once, in 2024, after a similarly frantic pre-Christmas round of negotiations.
This time, however, MEPs and member states pushed well beyond the Commission’s proposal. In their negotiating positions, in addition to the extra year for all companies to comply, both institutions call for a new impact assessment by April 2026, which could pave the way for yet another legislative reopening.
That demand split the pro-EU camp. The Socialist and Renew negotiators, Delara Burkhardt and Pascal Canfin, failed to strike a deal with the EPP after multiple rounds of talks, opposing a review of the law before it even enters into force.
To show discontent with the right-wing alliance, the lead negotiators for the S&D, Renew, and the Greens/EFA won’t be present at tomorrow’s meeting, two parliamentary staffers confirmed.
At last week’s plenary vote, the EPP instead turned to the right-wing bloc – including Patriots for Europe and the European Conservatives and Reformists – to push through several amendments. Some of the changes were ultimately also backed by 40% of Renew MEPs, who broke with Canfin’s line.
The only sticking point that is still dividing Parliament and Council is that MEPs want to carve out an exemption for printed books, newspapers, photographs, and other products from the printing sector. However, a parliamentary staffer close to the negotiations said that even if the Council doesn’t accept it, it won’t be a dealbreaker for MEPs. Euractiv
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Agri-feedstocks, the emerging backbone of Europe’s biofuel ambitions
Europe’s energy giants are seeking to harness the potential of agricultural residues to increase the use of biofuel
As Europe races to decarbonise transport, biofuels are taking on renewed strategic importance. The European Commission has just published a bioeconomy strategy which recommends increasing the use of advanced biofuels for heavy transport. Europe’s energy companies are busy looking at ways to do that, and they have one major element in their sights – agri-feedstocks.
Biofuels derived from agricultural residues and non-food crops are emerging as a critical pillar of Europe’s clean-energy strategy. They are able to provide immediate emissions reductions in sectors where alternatives remain costly or technically challenging. They’re also compatible with existing transport infrastructure, particularly for Sustainable Aviation Fuels (SAF) and marine fuels.
The International Energy Agency expects a surge in demand for these fuels: by 2030, advanced biofuels from waste, residues, and non-food crops could represent more than 40% of global consumption, up from just 9% in 2021.
But biofuels also come with challenges and controversy. The EU backtracked on its original subtarget for biofuels in transport as part of the Renewable Energy Directive (RED) because it was found that the incentives to use ‘first-generation’ biofuels such as palm oil were driving indirect land use change (ILUC), diverting food crops to fuel and contributing to deforestation. Now, only second-generation biofuels can be counted toward the subtarget.
An agricultural revolution
Energy companies in Europe are examining how agri-feedstock chains can be carefully designed to be utilised for biofuels without disrupting food production or driving deforestation. This can be achieved, for instance, by utilising feedstocks derived from degraded land, rotational crops, or residues. But this will require changes to how agriculture is conducted in Europe, says Nicolò Aggogeri, head of Agribusiness at the Italian energy giant Eni, which is growing its biofuels business.
“To fully unlock the potential of biofuels in decarbonising transport, agriculture needs to undergo a strategic transformation at scale,” he says. “The key lies in integrating new cropping systems – particularly intermediate crops – into existing production cycles and enhancing the productivity of underutilised [degraded] land, enabling feedstock expansion without triggering additional land use or compromising food security.”
Aggogeri says there is now a clear regulatory path forward for this approach, thanks to the inclusion of intermediate crops and crops cultivated on severely degraded lands in Annex IX of the revised RED. “Achieving this shift demands innovation on several fronts,” he says.
“Agronomic practices need to be reoriented toward soil regeneration, precision agriculture and water-efficient cultivation, supported by advanced seed genetics developed specifically for resilience and oil yield performance.”
The vegetable oil path
ENI is positioning itself to supply its growing biorefining network with sustainable vegetable oils for hydrogenated vegetable oil (HVO) production. Their strategy focuses on oil-bearing plants grown on degraded or underutilised land, especially castor crops resilient to arid conditions. Rotational crops such as rapeseed and sunflower that fit into existing agricultural cycles without competing with food production are also being pursued, as well as waste and residue streams such as used cooking oils, agro-industrial residues, and forestry by-products.
“HVO can contribute to the immediate decarbonization of transport sectors, both for light vehicles, supporting the development of alternative energy carriers, and for hard-to-abate transport sectors like road heavy duty, maritime and aviation,” says Aggogeri. “It is already available biofuel, and it is a drop-in product that can be used – also in pure form – in the existing distribution infrastructures and in all engines approved for its use.”
The RED’s emissions calculation criteria say HVO enables an emissions reduction of between 60% and 90% compared to fossil fuels, he says.
Such biorefineries, called Enilive, can be found in Venice and Sicily. They process waste feedstocks such as used cooking oil and animal fat, and agro-food industry residues integrated by vegetable oil volumes. These raw materials are delivered to the biorefineries by ships and tanker trucks and stored in tanks before undergoing a number of physical and chemical treatments to convert them into biofuels.
The feedstocks processed in biorefineries consist mainly of triglycerides and fatty acids, which are converted into hydrocarbons in the Ecofining unit. The final product properties are almost identical to those of fossil-based diesel fuel.
ENI isn’t the only energy company pursuing this strategy. Neste in Finland, Europe’s largest renewable diesel and SAF producer, has built one of the world’s biggest supply chains for waste- and residue-based oils.
TotalEnergies in France is converting several French refineries into biorefineries using rapeseed, animal fats and agricultural residues. Repsol in Spain is building an advanced biofuels plant in Cartagena that will rely on agricultural residues, and BP in the UK is expanding its European biofuel capacities through joint ventures with agricultural processors using advanced ethanol-to-jet technologies.
Partnerships with Africa
ENI and others are using agri-hubs, local pressing plants that form the industrial backbone of its supply chain, which are often operated with partners. By-products from pressing are valorised into animal feed or fertilisers, but can also be used as feedstocks. ENI now has these partnerships outside Italy in eight countries: Kenya, Ivory Coast, Mozambique, Congo, Angola, Kazakhstan, Vietnam and Indonesia, with further assessments underway in Europe, Brazil, Africa and Asia.
Since 2021, ENI has built a robust agri-feedstock chain in Kenya with two agri-hubs in Makueni and Bonje, with a combined capacity of 70,000 tonnes of vegetable oil annually. In the Congo, ENI has cultivated 15,000 hectares in 2025, supported by 200 new agricultural vehicles. They’ve also launched training programmes to build mechanisation skills and create a specialised labour force, with around 400 local technicians and tractor operators involved
All of this activity needs robust certification to demonstrate its contribution to sustainability. Agri feedstock supply chains are certified according to the European sustainability scheme ISCC-EU (International Sustainability and Carbon Certification) as required by the current EU RED regulatory framework.
A recent report by the consultancy Studio Gear Up provided recommendations for certification of these intermediate crops in the RED.
The report recommends introducing a definition of intermediate crops that focuses on the role they have in providing additional feedstock volumes compared to the existing practice at a farm, and that relates to their position in the rotation scheme. It also says the Commission should widen the optionality in RED definitions to allow for intermediate crops to count toward subtargets in all transport sectors. Euractiv
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Malaysia plans strengthened response to forced labour
A proposed new national action plan will help Malaysia reach its goal of eliminating forced labour by 2030.
Kuala Lumpur (ILO News) – Malaysia is strengthening its response to forced labour through the development of the country’s next National Action Plan on Forced Labour (NAP-FL) for the period 2026-2030.
A workshop organized by the Ministry of Human Resources (KESUMA) on 20-21 November 2025 with technical support from the International Labour Organization (ILO), brought together representatives of government, employers’, workers’ and civil society to review the draft plan.
Aimed at driving Malaysia toward meeting its goal of eliminating forced labour by 2030, the plan includes renewed commitments to prevention, stronger governance of labour migration and recruitment, improved enforcement and compliance systems, and expanded protection and remedy for victims, including migrant workers.
Participants discussed the main elements of the draft plan and also examined proposals for a strengthened governance structure to support coordinated implementation in Peninsular Malaysia, Sabah and Sarawak.
The Ministry of Human Resources underlined the Government’s determination to build on the first NAP-FL (2021–2025) and to keep forced labour high on the national agenda.
“The action plan that will be developed for 2026–2030 must be proactive, effective and commit to the nation’s aspiration of eliminating forced labour by 2030,” said Rafea'ah Binti Nahar, Undersecretary of the Policy Division, Ministry of Human Resources.
The ILO underscored that Malaysia’s efforts are anchored in its obligations under the ILO Forced Labour Convention, 1930 (No. 29) and its 2014 Protocol, and relevant international labour standards.
“The draft Plan is the result of a comprehensive and inclusive process, that reflects the strength of Malaysia’s approach and the belief that sustainable change is only possible when everyone is part of the solution,” said Tuomo Poutiainen, Deputy Regional Director of the ILO Regional Office for Asia and the Pacific. “Through collective action, we are building a future where forced labour is consigned to history.”
Following the workshop, the Ministry of Human Resources will consolidate inputs into a revised draft NAP-FL 2026–2030, which will be shared with the relevant ministries and agencies before being submitted to the Cabinet for approval. The ILO will continue to support Malaysia in implementing the plan, and in meeting its commitments under international labour standards, including ILO Convention 29 and its Protocol of 2014. ILO
December 03, 2025
Brazil votes to allow most projects & farms to skip environmental licensing
Brazil’s lawmakers have voted, by an overwhelming majority, to weaken the nation’s environmental licensing system, overturning key protections that Brazilian President Luiz Inácio Lula da Silva had vetoed earlier this year.
Congress first passed the law, commonly called the “devastation bill” across national media outlets, in July 2025 despite widespread protests. In September, President Lula vetoed dozens of clauses in the bill to avoid the worst environmental setbacks.
In a Nov. 27 joint session on the General Environmental Licensing Law, Congress voted to overturn 56 of the 63 presential vetoes. The Chamber of Deputies voted 268-190 in favor of overriding the vetoes, while the Senate voted 50-18.
One of the impacts of the lawmakers’ vote is that businesses will no longer need to consider impacts on communities that haven’t completed their land titling process. Indigenous and Quilombola — descendants of enslaved people — communities will be heavily impacted.
The decision to overturn the vetoes has “cemented the institutionalization of environmental racism and deepened conflicts in traditional territories,” said Alice Dandara de Assis Correia, an attorney at the Brazilian nonprofit Socioenvironmental Institute (ISA).
“If this law stands, we will face high legal uncertainty and weaker social and environmental protections,” Correia added. According to ISA, 32.6% of all Indigenous territories and 80% of Quilombola communities would be excluded from impact studies, which until now were a prerequisite for environmental licensing.
Another overturned veto allows farms that have illegally deforested or grabbed land to operate and sell their products without an environmental license, according to the Climate Observatory, a Brazilian environmental watchdog organization.
Environmental licensing would also no longer be required for large infrastructure projects, such as paving the BR-319 highway across 885 kilometers (550 miles) of the Amazon, the Climate Observatory added. “In addition to being unconstitutional, [the law] puts the health and safety of Brazilians at risk, allows broad destruction of our ecosystems and violates the country’s climate goals,” the organization wrote in a statement.
In the coming days, Congress will vote on overturning the remaining seven presidential vetoes, including one of the most contentious clauses, which would allow an estimated 90% of medium-impact businesses to “self-license.” If overturned, companies will be able to automatically produce their own environmental licenses at the click of a button by filling out an online form.
Brazil’s Environment Minister Marina Silva has announced that the government is considering challenging the Congressional overrides in court.
“We cannot treat environmental laws like they exist to hinder development. There is no development without a stable climate,” she said during a Nov. 28 interview on state-owned TV. “It is unconstitutional to override Article 225 of the Federal Constitution, which says that all citizens have the right to a healthy environment.” Mongabay
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Smarter Palm Oil: How Technology Is Making the Supply Chain More Transparent in Pakistan
Pakistan relies heavily on imported palm oil to meet its edible oil needs. In the fiscal year 2024–25, Pakistan’s edible oil imports were projected at 3.8 million tonnes, with palm oil accounting for over 75% of this volume. Indonesia supplies the bulk of this demand—fueling everything from vanaspati ghee to snack foods and baked goods. But behind this essential commodity lies a complex and often opaque global supply chain—one increasingly under pressure to become cleaner, more accountable, and transparent.
As global regulations tighten and scrutiny grows—especially around deforestation and labor practices—transparency in the palm oil trade is no longer optional. And while Pakistan doesn’t produce palm oil, it’s deeply connected to this evolving system as a major importer. That means the technologies reshaping how palm oil is tracked—from plantation to port—matter more than ever for the country’s food security, trade stability, and international reputation.
Why Transparency Matters in Pakistan’s Palm Oil Supply
Palm oil’s affordability makes it vital to Pakistan’s economy, but that reliance also comes with risk. Any disruption in supply whether due to climate shocks, export bans, or sustainability crackdowns—hits fast and hard. Plus, international buyers are demanding more than just low prices; they want guarantees that the palm oil comes from ethical, traceable sources.
Pakistan is increasingly in the spotlight. Regulations like the EU Deforestation Regulation (EUDR) don’t just affect producers, they ripple through to every buyer, especially those who can’t verify the origin of their shipments. Without transparency, Pakistan’s food and FMCG sectors face serious exposure ranging from blocked shipments to reputational damage.
Blockchain: From Plantation to Port
Blockchain is quickly becoming the backbone of traceable palm oil. It creates a tamper-proof digital record of every step in the supply chain—from where the oil palm was grown, to which mill processed it, to how it got shipped. In Malaysia and Indonesia, major exporters are already piloting blockchain-based tracking systems.
For Pakistani importers and refiners, this tech means more than just paperwork. It’s a way to prove their oil isn’t linked to deforestation or other violations. And with growing demand for RSPO-certified and NDPE-compliant (No Deforestation, No Peat, No Exploitation) palm oil, being able to show blockchain-backed proof of origin is quickly becoming a competitive advantage.
Satellites Are Watching
Satellite imaging is another game-changer. High-resolution images, powered by AI, can detect illegal land clearing, identify plantation boundaries, and even assess the age of oil palms. Major buyers in the industry already use this tech to make sure their supply chains are deforestation-free.
Pakistani companies can tap into this too. With satellite data, importers don’t need to take supplier claims at face value—they can verify them. That’s a huge step toward reducing risk and aligning with international expectations.
Small Farmers, Big Impact
One of the hardest parts of traceability is the first mile: smallholder farmers. Many of them sell their crops through middlemen, with no digital trail. But mobile apps are starting to fill that gap.
These platforms allow farmers to log data—location, harvest dates, land size—straight from their phones. That info then feeds into broader traceability systems. For Pakistan, this means importers can trace their oil all the way back to individual farms, making it far easier to source responsibly and meet sustainability targets.
National Platforms and Digital Dashboards
Governments are getting in on the action too. Indonesia, for example, is building a national digital tracking platform for palm oil to help meet the EU’s import requirements. These kinds of systems make it easier for buyers—including those in Pakistan—to monitor compliance and source more confidently.
Refiners and importers in Pakistan can align with these platforms to get access to better data, more reliable suppliers, and fewer supply chain surprises. It’s not just about ethics—it’s about stability.
What This Means for Pakistan
For Pakistan’s palm oil industry, smarter supply chains are more than a trend—they’re a strategic necessity. Transparent sourcing means fewer risks, better deals, and stronger global partnerships. It protects businesses from reputational blowback, future-proofs export plans, and builds resilience in a volatile global market.
Of course, tech adoption comes with costs. Blockchain systems, satellite subscriptions, and mobile integration don’t come cheap. But the cost of doing nothing—getting cut off from regulated markets, losing supplier trust, or facing backlash from consumers, is far higher.
The real challenge is making sure everyone benefits, especially smallholders. If traceability tools are only accessible to big players, the system will never be fully reliable. Inclusion isn’t just fair, it’s smart business.
Looking Ahead
Pakistan’s role in the palm oil supply chain is evolving. It’s no longer enough to import at the lowest cost. With global rules changing fast, the smarter move is to embrace traceability now using blockchain, satellite data, and mobile tools to build a clearer, stronger, and more responsible supply chain.
Transparency isn’t just the future of palm oil—it’s the foundation of smarter trade. Pakistan has everything to gain by leading, not following. GAPKI
---------
Malaysia's Felda, FGV say Terengganu land spat could disrupt operations, impact national output
KUALA LUMPUR, Dec 2 (Reuters) - Malaysia's Federal Land Development Authority (Felda) and its commercial arm FGV Holdings Berhad said on Tuesday they had been issued an order by Terengganu state to vacate palm oil plantation land there, warning it could impact operations and national output.
FGV, one of the world’s largest palm oil producers, in a joint statement with Felda said a notice had been issued to vacate and demolish building structures and destroy crops in Terengganu within three days, describing that as an extremely tight timeline.
The Terengganu state government could not be reached by Reuters and did not immediately respond to an email request for comment outside of business hours. No notices related to Felda and FGV were reported on the state government's website on Tuesday.
FGV was privatised in August and is now fully owned and controlled by Felda, a government agency. FGV has a total oil palm landbank of 324,563 hectares and its fresh fruit bunches production reached 3.97 million metric tons last year.
Local media outlet Berita Harian on Sunday reported a trespass notice had been issued to FGV and Felda to remove assets from 10 plantations covering 15,000 hectares in the state and that the notice stemmed from a protracted disagreement about profit-sharing. Reuters
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Indian nutritionist Sakshi Lalwani Debunks Myths on Palm Oil, Labels and Everyday Nutrition
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Sakshi Lalwani Debunks Myths on Palm Oil, Labels and Everyday Nutrition
written by TLN Team December 3, 2025
With growing confusion around which cooking oils are truly healthy, the ongoing podcast series aims to help Indian households make informed, science-based choices. An episode that features nutritionist Sakshi Lalwani, who clarifies everyday concerns about cooking oil selection, label reading and safe cooking practices. The episodes blend relatable food conversations with evidence-led insights on fats, nutrition and the important role palm oil plays in Indian kitchens.
In the first Episode, Sakshi explains the basics of palm oil, a plant-based oil extracted from the fruit of the oil palm tree. She breaks down how palm olein is naturally trans-fat free, stable at high temperatures, and contains Vitamin E tocotrienols and, the red palm oil contains beta-carotene, a source of provitamin A. She highlights palm oil’s balanced fatty acid mix (around 50% saturated, 40% monounsaturated and 10% polyunsaturated fats) and emphasizes that smart cooking habits, not the elimination of any one oil, are key to healthier meals.
In the next Episode, she unfolds the increasing appearance of “No Palm Oil” labels and explains how these tags are largely marketing-led, designed to create a perception of being healthier without reflecting true nutritional value. She advises listeners to look beyond front labels, check the ingredients list, and understand what oils are used as a replacement when palm oil is removed.
What Science Says About Palm Oil
The series highlights that palm oil, when used as part of a balanced diet, contains beneficial compounds such as tocotrienols and carotenoids (in red palm oil), which are powerful antioxidants. Food science shows that palm oil is stable at high temperatures, resistant to oxidation, neutral in flavour, has a long shelf life, less chances of forming harmful compounds as compared to other vegetable oils, and is naturally trans-fat free and does not need to go through the process of partial hydrogenation. It also absorbs less oil into food, leading to crisp and evenly fried dishes. The Live Nagpur
Brazil votes to allow most projects & farms to skip environmental licensing
Brazil’s lawmakers have voted, by an overwhelming majority, to weaken the nation’s environmental licensing system, overturning key protections that Brazilian President Luiz Inácio Lula da Silva had vetoed earlier this year.
Congress first passed the law, commonly called the “devastation bill” across national media outlets, in July 2025 despite widespread protests. In September, President Lula vetoed dozens of clauses in the bill to avoid the worst environmental setbacks.
In a Nov. 27 joint session on the General Environmental Licensing Law, Congress voted to overturn 56 of the 63 presential vetoes. The Chamber of Deputies voted 268-190 in favor of overriding the vetoes, while the Senate voted 50-18.
One of the impacts of the lawmakers’ vote is that businesses will no longer need to consider impacts on communities that haven’t completed their land titling process. Indigenous and Quilombola — descendants of enslaved people — communities will be heavily impacted.
The decision to overturn the vetoes has “cemented the institutionalization of environmental racism and deepened conflicts in traditional territories,” said Alice Dandara de Assis Correia, an attorney at the Brazilian nonprofit Socioenvironmental Institute (ISA).
“If this law stands, we will face high legal uncertainty and weaker social and environmental protections,” Correia added. According to ISA, 32.6% of all Indigenous territories and 80% of Quilombola communities would be excluded from impact studies, which until now were a prerequisite for environmental licensing.
Another overturned veto allows farms that have illegally deforested or grabbed land to operate and sell their products without an environmental license, according to the Climate Observatory, a Brazilian environmental watchdog organization.
Environmental licensing would also no longer be required for large infrastructure projects, such as paving the BR-319 highway across 885 kilometers (550 miles) of the Amazon, the Climate Observatory added. “In addition to being unconstitutional, [the law] puts the health and safety of Brazilians at risk, allows broad destruction of our ecosystems and violates the country’s climate goals,” the organization wrote in a statement.
In the coming days, Congress will vote on overturning the remaining seven presidential vetoes, including one of the most contentious clauses, which would allow an estimated 90% of medium-impact businesses to “self-license.” If overturned, companies will be able to automatically produce their own environmental licenses at the click of a button by filling out an online form.
Brazil’s Environment Minister Marina Silva has announced that the government is considering challenging the Congressional overrides in court.
“We cannot treat environmental laws like they exist to hinder development. There is no development without a stable climate,” she said during a Nov. 28 interview on state-owned TV. “It is unconstitutional to override Article 225 of the Federal Constitution, which says that all citizens have the right to a healthy environment.” Mongabay
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Smarter Palm Oil: How Technology Is Making the Supply Chain More Transparent in Pakistan
Pakistan relies heavily on imported palm oil to meet its edible oil needs. In the fiscal year 2024–25, Pakistan’s edible oil imports were projected at 3.8 million tonnes, with palm oil accounting for over 75% of this volume. Indonesia supplies the bulk of this demand—fueling everything from vanaspati ghee to snack foods and baked goods. But behind this essential commodity lies a complex and often opaque global supply chain—one increasingly under pressure to become cleaner, more accountable, and transparent.
As global regulations tighten and scrutiny grows—especially around deforestation and labor practices—transparency in the palm oil trade is no longer optional. And while Pakistan doesn’t produce palm oil, it’s deeply connected to this evolving system as a major importer. That means the technologies reshaping how palm oil is tracked—from plantation to port—matter more than ever for the country’s food security, trade stability, and international reputation.
Why Transparency Matters in Pakistan’s Palm Oil Supply
Palm oil’s affordability makes it vital to Pakistan’s economy, but that reliance also comes with risk. Any disruption in supply whether due to climate shocks, export bans, or sustainability crackdowns—hits fast and hard. Plus, international buyers are demanding more than just low prices; they want guarantees that the palm oil comes from ethical, traceable sources.
Pakistan is increasingly in the spotlight. Regulations like the EU Deforestation Regulation (EUDR) don’t just affect producers, they ripple through to every buyer, especially those who can’t verify the origin of their shipments. Without transparency, Pakistan’s food and FMCG sectors face serious exposure ranging from blocked shipments to reputational damage.
Blockchain: From Plantation to Port
Blockchain is quickly becoming the backbone of traceable palm oil. It creates a tamper-proof digital record of every step in the supply chain—from where the oil palm was grown, to which mill processed it, to how it got shipped. In Malaysia and Indonesia, major exporters are already piloting blockchain-based tracking systems.
For Pakistani importers and refiners, this tech means more than just paperwork. It’s a way to prove their oil isn’t linked to deforestation or other violations. And with growing demand for RSPO-certified and NDPE-compliant (No Deforestation, No Peat, No Exploitation) palm oil, being able to show blockchain-backed proof of origin is quickly becoming a competitive advantage.
Satellites Are Watching
Satellite imaging is another game-changer. High-resolution images, powered by AI, can detect illegal land clearing, identify plantation boundaries, and even assess the age of oil palms. Major buyers in the industry already use this tech to make sure their supply chains are deforestation-free.
Pakistani companies can tap into this too. With satellite data, importers don’t need to take supplier claims at face value—they can verify them. That’s a huge step toward reducing risk and aligning with international expectations.
Small Farmers, Big Impact
One of the hardest parts of traceability is the first mile: smallholder farmers. Many of them sell their crops through middlemen, with no digital trail. But mobile apps are starting to fill that gap.
These platforms allow farmers to log data—location, harvest dates, land size—straight from their phones. That info then feeds into broader traceability systems. For Pakistan, this means importers can trace their oil all the way back to individual farms, making it far easier to source responsibly and meet sustainability targets.
National Platforms and Digital Dashboards
Governments are getting in on the action too. Indonesia, for example, is building a national digital tracking platform for palm oil to help meet the EU’s import requirements. These kinds of systems make it easier for buyers—including those in Pakistan—to monitor compliance and source more confidently.
Refiners and importers in Pakistan can align with these platforms to get access to better data, more reliable suppliers, and fewer supply chain surprises. It’s not just about ethics—it’s about stability.
What This Means for Pakistan
For Pakistan’s palm oil industry, smarter supply chains are more than a trend—they’re a strategic necessity. Transparent sourcing means fewer risks, better deals, and stronger global partnerships. It protects businesses from reputational blowback, future-proofs export plans, and builds resilience in a volatile global market.
Of course, tech adoption comes with costs. Blockchain systems, satellite subscriptions, and mobile integration don’t come cheap. But the cost of doing nothing—getting cut off from regulated markets, losing supplier trust, or facing backlash from consumers, is far higher.
The real challenge is making sure everyone benefits, especially smallholders. If traceability tools are only accessible to big players, the system will never be fully reliable. Inclusion isn’t just fair, it’s smart business.
Looking Ahead
Pakistan’s role in the palm oil supply chain is evolving. It’s no longer enough to import at the lowest cost. With global rules changing fast, the smarter move is to embrace traceability now using blockchain, satellite data, and mobile tools to build a clearer, stronger, and more responsible supply chain.
Transparency isn’t just the future of palm oil—it’s the foundation of smarter trade. Pakistan has everything to gain by leading, not following. GAPKI
---------
Malaysia's Felda, FGV say Terengganu land spat could disrupt operations, impact national output
KUALA LUMPUR, Dec 2 (Reuters) - Malaysia's Federal Land Development Authority (Felda) and its commercial arm FGV Holdings Berhad said on Tuesday they had been issued an order by Terengganu state to vacate palm oil plantation land there, warning it could impact operations and national output.
FGV, one of the world’s largest palm oil producers, in a joint statement with Felda said a notice had been issued to vacate and demolish building structures and destroy crops in Terengganu within three days, describing that as an extremely tight timeline.
The Terengganu state government could not be reached by Reuters and did not immediately respond to an email request for comment outside of business hours. No notices related to Felda and FGV were reported on the state government's website on Tuesday.
FGV was privatised in August and is now fully owned and controlled by Felda, a government agency. FGV has a total oil palm landbank of 324,563 hectares and its fresh fruit bunches production reached 3.97 million metric tons last year.
Local media outlet Berita Harian on Sunday reported a trespass notice had been issued to FGV and Felda to remove assets from 10 plantations covering 15,000 hectares in the state and that the notice stemmed from a protracted disagreement about profit-sharing. Reuters
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Indian nutritionist Sakshi Lalwani Debunks Myths on Palm Oil, Labels and Everyday Nutrition
Select Language
Powered by Google TranslateTranslate
Featured
Sakshi Lalwani Debunks Myths on Palm Oil, Labels and Everyday Nutrition
written by TLN Team December 3, 2025
With growing confusion around which cooking oils are truly healthy, the ongoing podcast series aims to help Indian households make informed, science-based choices. An episode that features nutritionist Sakshi Lalwani, who clarifies everyday concerns about cooking oil selection, label reading and safe cooking practices. The episodes blend relatable food conversations with evidence-led insights on fats, nutrition and the important role palm oil plays in Indian kitchens.
In the first Episode, Sakshi explains the basics of palm oil, a plant-based oil extracted from the fruit of the oil palm tree. She breaks down how palm olein is naturally trans-fat free, stable at high temperatures, and contains Vitamin E tocotrienols and, the red palm oil contains beta-carotene, a source of provitamin A. She highlights palm oil’s balanced fatty acid mix (around 50% saturated, 40% monounsaturated and 10% polyunsaturated fats) and emphasizes that smart cooking habits, not the elimination of any one oil, are key to healthier meals.
In the next Episode, she unfolds the increasing appearance of “No Palm Oil” labels and explains how these tags are largely marketing-led, designed to create a perception of being healthier without reflecting true nutritional value. She advises listeners to look beyond front labels, check the ingredients list, and understand what oils are used as a replacement when palm oil is removed.
What Science Says About Palm Oil
The series highlights that palm oil, when used as part of a balanced diet, contains beneficial compounds such as tocotrienols and carotenoids (in red palm oil), which are powerful antioxidants. Food science shows that palm oil is stable at high temperatures, resistant to oxidation, neutral in flavour, has a long shelf life, less chances of forming harmful compounds as compared to other vegetable oils, and is naturally trans-fat free and does not need to go through the process of partial hydrogenation. It also absorbs less oil into food, leading to crisp and evenly fried dishes. The Live Nagpur
December 02, 2025
Indonesian Palm Oil Export Up Over 25% to $20.2 Billion
Jakarta. Indonesia registered a double-digit growth in its palm oil exports as of October, enabling the resource-rich economy to enjoy 66 months of being in the black, according to the Central Statistics Agency (BPS).
The agency data showed that Indonesia exported about $20.2 billion of palm oil, be it crude or processed, between January and October 2025. Palm oil -- which is pivotal in food manufacturing and beauty products -- made up 9.05 percent of Jakarta’s non-oil and gas exports that period.
“Our export of CPO [crude palm oil] and its derivatives jumped 25.73 percent as of October, value-wise compared to 2024,” Pudji Ismartini, a deputy at BPS, told a press briefing on Monday.
Southeast Asia’s biggest economy also enjoyed a price advantage as palm oil prices rose 0.80 percent month-month on global markets in October, reaching $1,045.04 per metric ton.
From a volume standpoint, the 2025 January-October palm oil exports totaled 19.49 million tons, up 7.83 percent versus 2024 levels. The country sold 18.08 million tons to foreign markets in the first ten months of last year. Palm oil exports stood at 1.91 milion tons in October alone.
BPS did not disclose the top buyers, although the commodity had been key to Jakarta's trade relations with India.
Indonesia’s non-oil and gas exports to India hit $15.32 billion so far this year as of October. Some $1.38 billion of those exports were goods categorized as animal fat/vegetable oil. This export category includes palm oil, which often sees soaring demand in New Delhi during the festival season as people consume more sweets and fried foods.
Animal fat/vegetable oils added a $28.12 billion surplus to Indonesia’s trade balance. Jakarta Globe
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Power struggle over Indonesian nickel and palm oil
JAKARTA: Indonesia is reluctant to join a European Union (EU) push to use a stopgap appeal mechanism to resolve their World Trade Organisation (WTO) disputes, a standoff experts say reflects a broader power struggle over nickel and palm oil amid an impaired WTO dispute settlement mechanism.
The disputes concerned EU import duties imposed on Indonesian biodiesel and stainless steel that a WTO panel ruled inconsistent with global trade rules.
Both cases are now in limbo, as the rulings in favour of Indonesia cannot be enforced due to the bloc’s appeal.
Edi Prio Pambudi, undersecretary for coordination of international economic cooperation at the Office of the Coordinating Economy Minister, said Indonesia was not inclined to participate in the multi-party interim appeal arbitration arrangement (MPIA), stressing that the country preferred to follow the trade body’s established mechanisms.
“We are a member of the WTO. Even if we are invited, it is not certain we will join. We must first examine what the issue entails and consider its consequences,” Edi told reporters last Thursday.
Edi added that Indonesia remained committed to multilateral rules and had, like many members, sought answers from the United States over its long-running block on new WTO adjudicators, a move that had hobbled the system since 2019.
With no functioning appeals bench, disputes can be stalled though a tactic that has become known as “appealing into the void”, leaving WTO panel rulings unenforceable. In 2020, the EU, China, Japan and dozens of other WTO members created and joined the MPIA as an alternative arrangement to adjudicate appeals of WTO panel rulings. The StarMY
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Indigenous Dayak sound alarm as palm oil firm razes orangutan habitat in Indonesian Borneo
The company, PT Equator Sumber Rezeki (ESR), is a subsidiary of the Jakarta-based First Borneo Group, owned by Indonesian tycoon Alexander Thaslim. It has cleared nearly 1,500 hectares (3,700 acres) of rainforest since it began operating last year in Kapuas Hulu, a landlocked district deep in Indonesia’s West Kalimantan province on the island of Borneo, near the border with Malaysia.
ESR’s 15,000-hectare (37,000-acre) oil palm plantation concession overlaps with part of the Labian–Leboyan watershed, a wildlife corridor connecting Betung Kerihun and Danau Sentarum national parks — two of the last strongholds for the critically endangered Bornean orangutan (Pongo pygmaeus).
Conservationists estimate that as much as 80% of the concession area contains rainforest deemed of high conservation value, making it especially vital to protect. Orangutans inhabit about a quarter of the concession, according to a government-backed study from 2016. Mongabay
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Global rapeseed area set to rise as Asia drives expansion, says IGC
The International Grains Council (IGC) expects the world’s rapeseed area to edge up to 44.1 million hectares in its latest outlook, a modest increase of 0.2 million hectares on the current 2025/26 season. While major exporters are set for a slight contraction, growth across other regions—most notably Asia—is forecast to more than offset the decline.
Across the EU-27, the rapeseed area is projected to hold steady at 6.1 million hectares. A bumper 2025 harvest in south-eastern member states, particularly Romania, could spur further planting, even as growers elsewhere trim back their sown area.
Russia’s rapeseed footprint is also expected to remain unchanged at 3.0 million hectares after a year of strong expansion. Conversely, new research from Agrarmarkt Informations-Gesellschaft (mbH) indicates Ukraine’s plantings will shrink by around 100,000 hectares to 1.3 million hectares. Despite this, the combined area across the Commonwealth of Independent States is set to reach its second-highest level on record, highlighting rapeseed’s rising strategic significance.
Outlooks for top exporters Canada and Australia remain less certain, with sowing still months away. Canada’s planted area is forecast to hover near its long-term average at 8.7 million hectares, supported by expectations of firm global demand. Australia is likewise set to keep its rapeseed area stable year-on-year at around 3.4 million hectares. Biofuels News
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America’s Most Popular Cooking Oil Linked to Obesity in New Study
A new study has found that soybean oil contributed to obesity in mice, prompting concern that the United States' most popular cooking oil could be playing a role in the country's obesity problem.
The University of California, Riverside study, published in the Journal of Lipid Research in October, investigated how mice metabolized linoleic acid, an omega-6 fatty acid widely present in soybean oil, by feeding them a high-fat diet based on the common cooking oil.
While the study was conducted on mice, Frances Sladek, a UCR professor of cell biology and author of the study, told Newsweek that the findings "were translatable to humans as the pathways we found involved in soybean oil-induced obesity are highly conserved between mouse and human."
Why It Matters
Soybean oil is by far the most widely used cooking oil in the country, with rapeseed oil second and palm oil third, according to data from Statista. Soybean oil is also made up of more than 50 percent linoleic acid, Sladek said.
The finding raises notable concern, not only because of the oil's popularity, but also because of America's high obesity rates—one in five children and two in five adults are obese in the U.S., meaning they have a Body Mass Index (BMI) higher than 30.
Obesity is known to be associated with higher risks of health problems, including diabetes, heart disease and strokes.
The American diet has also been called into question by studies previously, as last year a study found that the majority of Americans ate a diet that promoted inflammation, increasing the risk of diseases such as heart disease, obesity, diabetes, depression and certain cancers.
What To Know
The study specifically examined the effects of molecules called oxylipins on mice. These molecules are what linoleic acid is broken down into in the body, and so the higher the consumption of the acid, the higher the amount of these molecules will be in the body.
While other fatty acids also break down into oxylipins, the oxylipins derived from linoleic acid were the ones the authors found contributed to obesity in mice.
The finding is not new; the researchers noted this result in a previous study. What they did differently in this study was test the impact of a diet high in soybean oil in a group of male mice genetically engineered to express a different version of a liver regulatory gene, P2-HNF4α.
This meant they had different metabolic pathways from the control group, as the genetic change reduced the activity of enzymes that convert linoleic acid into oxylipins.
The researchers found that the modified mice had healthier livers and gained less weight than the control group on the same diet, further supporting the idea that oxylipins contribute to obesity.
“This may be the first step toward understanding why some people gain weight more easily than others on a diet high in soybean oil,” said Sonia Deol, a UCR biomedical scientist and another author of the study.
Although the researchers also note that the genetically modified mice had elevated oxylipins on a low-fat diet without becoming obese, suggesting that other metabolic factors are at play.
Sladek said that they found that "it is the levels of the oxylipins present in the liver, not circulating in the blood, that correlate with obesity."
How Much Soybean Oil Do Americans Actually Consume?
Consuming a small amount of linoleic acid is actually required for human health and is part of a healthy diet; however, the researchers noted that America has had a "remarkable increase" in its consumption of the oil over the past 50 years.
The required amount of linoleic acid for health is around 1 to 2 percent of a person's calorific intake, the study authors noted, as small amounts play an important role in maintaining good health.
Most Americans broadly have a much higher intake of linoleic acid at around 15 to 25 percent of their calorific intake, the study authors said.
Sladek said that consuming small amounts of soybean oil is "perfectly safe and provides a good source of the essential fatty acid linoleic acid."
He said that the problem is that "processed foods are becoming an ever larger part of our diet and many of those foods have soybean oil in them, or they have corn oil, safflower seed oil, sunflower seed oil — all these seed oils are made up of large amounts of linoleic acid, just like soybean oil."
"So in general, we are taking in much more of these seed oils, all of which have high levels of linoleic acid, than our body needs," he added.
What Does Soybean Oil Do to Your Body?
It is not clear from the study how these findings would translate to the human body, and further research is needed to determine the impact of soybean oil on human health. Newsweek
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Nutritionist Leema Mahajan Clears Myths on Palm Oil and Misleading Labels with Science-Backed Facts
Mumbai, Maharashtra, India
Amid rising consumer confusion around edible oils and growing online misinformation, the Malaysian Palm Oil Council (MPOC) has launched a new six-part podcast series, aimed at helping Indian households make informed, science-backed choices. The series builds on MPOC’s earlier digital initiatives that reached millions of Indian consumers by simplifying the nutrition, science and sustainability behind Malaysian palm oil.
The first two podcast episodes in the series feature nutrition expert and creator Leema Mahajan as the guest. The podcast blends relatable kitchen conversations with evidence-based insights on health, dietary fats, sustainability, and misleading marketing labels. Each episode breaks down widely circulated myths and offers listeners clear, practical takeaways for everyday cooking.
Episode Highlights
In the first Episode, Leema simplifies the big question, which oil is truly healthy? by stressing balance, and smart cooking habits over eliminating any single oil. She briefly touches on palm oil’s science-backed benefits and the importance of rotating oils at home. In the next Episode, she breaks down the rising “No Palm Oil” labels, explaining why they’re often fear-driven and misleading. She urges viewers to look beyond front packet claims and understand what truly makes a product healthy.
What Science Says About Palm Oil
The series integrates current research showing that palm oil is rich in tocotrienols and carotenoids (in red palm oil), compounds recognised for their antioxidant and potential cardiometabolic benefits. Palm oil is naturally cholesterol-free, as cholesterol is found only in animal-based fats. When consumed as part of a balanced diet, palm oil has a neutral impact on blood cholesterol levels.
Aligned With ICMR Dietary Guidelines
The podcast reiterates the ICMR–NIN Dietary Guidelines (2024), which recommend limiting visible fats to 25–30 g per person per day and rotating multiple plant-based oils to maintain a balanced fatty acid profile. In this context, palm oil is positioned as one of several healthy options suitable for Indian cooking patterns.
Supporting India’s Edible Oil Goals: NMEO–OP
The series also contextualises palm oil within India’s broader edible oil landscape. Under the Government of India’s National Mission on Edible Oils – Oil Palm (NMEO–OP), states across the country are expanding oil palm cultivation to strengthen domestic availability and reduce reliance on imports. Malaysian expertise continues to support this growth across multiple regions.
Addressing Misleading ‘No Palm Oil’ Labels
Responding to growing market confusion, the podcast reinforces recent statements by industry bodies such as IFBA and OTAI, which have labelled “No Palm Oil” tags as misleading marketing tactics rather than evidence-based health claims. The series urges consumers to prioritise overall nutrition, moderation and credible science over fear-based messaging.
Through scientific facts MPOC aims to bring clarity, context and accuracy to empower consumers to make informed and balanced choices.
About the Series
This is a six-episode podcast series by the Malaysian Palm Oil Council (MPOC) designed to address misinformation and share scientific facts about palm oil in a simple, relatable way.
Each episode brings expert voices and everyday perspectives to topics like nutrition, health, and sustainability helping listeners replace myths with understanding. With these conversations, MPOC hopes to encourage balanced, fact-based discussions and highlight palm oil’s rightful place as a versatile, nutritious, and sustainably produced edible oil. Newsvoir
Indonesian Palm Oil Export Up Over 25% to $20.2 Billion
Jakarta. Indonesia registered a double-digit growth in its palm oil exports as of October, enabling the resource-rich economy to enjoy 66 months of being in the black, according to the Central Statistics Agency (BPS).
The agency data showed that Indonesia exported about $20.2 billion of palm oil, be it crude or processed, between January and October 2025. Palm oil -- which is pivotal in food manufacturing and beauty products -- made up 9.05 percent of Jakarta’s non-oil and gas exports that period.
“Our export of CPO [crude palm oil] and its derivatives jumped 25.73 percent as of October, value-wise compared to 2024,” Pudji Ismartini, a deputy at BPS, told a press briefing on Monday.
Southeast Asia’s biggest economy also enjoyed a price advantage as palm oil prices rose 0.80 percent month-month on global markets in October, reaching $1,045.04 per metric ton.
From a volume standpoint, the 2025 January-October palm oil exports totaled 19.49 million tons, up 7.83 percent versus 2024 levels. The country sold 18.08 million tons to foreign markets in the first ten months of last year. Palm oil exports stood at 1.91 milion tons in October alone.
BPS did not disclose the top buyers, although the commodity had been key to Jakarta's trade relations with India.
Indonesia’s non-oil and gas exports to India hit $15.32 billion so far this year as of October. Some $1.38 billion of those exports were goods categorized as animal fat/vegetable oil. This export category includes palm oil, which often sees soaring demand in New Delhi during the festival season as people consume more sweets and fried foods.
Animal fat/vegetable oils added a $28.12 billion surplus to Indonesia’s trade balance. Jakarta Globe
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Power struggle over Indonesian nickel and palm oil
JAKARTA: Indonesia is reluctant to join a European Union (EU) push to use a stopgap appeal mechanism to resolve their World Trade Organisation (WTO) disputes, a standoff experts say reflects a broader power struggle over nickel and palm oil amid an impaired WTO dispute settlement mechanism.
The disputes concerned EU import duties imposed on Indonesian biodiesel and stainless steel that a WTO panel ruled inconsistent with global trade rules.
Both cases are now in limbo, as the rulings in favour of Indonesia cannot be enforced due to the bloc’s appeal.
Edi Prio Pambudi, undersecretary for coordination of international economic cooperation at the Office of the Coordinating Economy Minister, said Indonesia was not inclined to participate in the multi-party interim appeal arbitration arrangement (MPIA), stressing that the country preferred to follow the trade body’s established mechanisms.
“We are a member of the WTO. Even if we are invited, it is not certain we will join. We must first examine what the issue entails and consider its consequences,” Edi told reporters last Thursday.
Edi added that Indonesia remained committed to multilateral rules and had, like many members, sought answers from the United States over its long-running block on new WTO adjudicators, a move that had hobbled the system since 2019.
With no functioning appeals bench, disputes can be stalled though a tactic that has become known as “appealing into the void”, leaving WTO panel rulings unenforceable. In 2020, the EU, China, Japan and dozens of other WTO members created and joined the MPIA as an alternative arrangement to adjudicate appeals of WTO panel rulings. The StarMY
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Indigenous Dayak sound alarm as palm oil firm razes orangutan habitat in Indonesian Borneo
- Indigenous Dayak communities report wildlife encroaching into villages, land grabbing, and loss of cultural and livelihood resources as a palm oil company begins clearing forests on their customary lands — in some cases without consent or even prior notification.
- PT Equator Sumber Rezeki (ESR) has already cleared nearly 1,500 hectares (3,700 hectares) of rainforest inside this region that’s designated a UNESCO Biosphere Reserve and orangutan habitat, with much of the deforestation occurring this year and signaling far more destruction to come.
- The company’s parent group, First Borneo, is driving widespread deforestation across Kapuas Hulu with two other plantations, yet its palm fruit is still entering global “zero-deforestation” supply chains through intermediary mills despite corporate no-buy pledges.
- Environmental groups are urging the government to halt or revoke ESR’s permits and protect the orangutan-rich landscape, warning that continued clearing undermines Indonesia’s climate commitments and threatens both biodiversity and cultural survival.
The company, PT Equator Sumber Rezeki (ESR), is a subsidiary of the Jakarta-based First Borneo Group, owned by Indonesian tycoon Alexander Thaslim. It has cleared nearly 1,500 hectares (3,700 acres) of rainforest since it began operating last year in Kapuas Hulu, a landlocked district deep in Indonesia’s West Kalimantan province on the island of Borneo, near the border with Malaysia.
ESR’s 15,000-hectare (37,000-acre) oil palm plantation concession overlaps with part of the Labian–Leboyan watershed, a wildlife corridor connecting Betung Kerihun and Danau Sentarum national parks — two of the last strongholds for the critically endangered Bornean orangutan (Pongo pygmaeus).
Conservationists estimate that as much as 80% of the concession area contains rainforest deemed of high conservation value, making it especially vital to protect. Orangutans inhabit about a quarter of the concession, according to a government-backed study from 2016. Mongabay
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Global rapeseed area set to rise as Asia drives expansion, says IGC
The International Grains Council (IGC) expects the world’s rapeseed area to edge up to 44.1 million hectares in its latest outlook, a modest increase of 0.2 million hectares on the current 2025/26 season. While major exporters are set for a slight contraction, growth across other regions—most notably Asia—is forecast to more than offset the decline.
Across the EU-27, the rapeseed area is projected to hold steady at 6.1 million hectares. A bumper 2025 harvest in south-eastern member states, particularly Romania, could spur further planting, even as growers elsewhere trim back their sown area.
Russia’s rapeseed footprint is also expected to remain unchanged at 3.0 million hectares after a year of strong expansion. Conversely, new research from Agrarmarkt Informations-Gesellschaft (mbH) indicates Ukraine’s plantings will shrink by around 100,000 hectares to 1.3 million hectares. Despite this, the combined area across the Commonwealth of Independent States is set to reach its second-highest level on record, highlighting rapeseed’s rising strategic significance.
Outlooks for top exporters Canada and Australia remain less certain, with sowing still months away. Canada’s planted area is forecast to hover near its long-term average at 8.7 million hectares, supported by expectations of firm global demand. Australia is likewise set to keep its rapeseed area stable year-on-year at around 3.4 million hectares. Biofuels News
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America’s Most Popular Cooking Oil Linked to Obesity in New Study
A new study has found that soybean oil contributed to obesity in mice, prompting concern that the United States' most popular cooking oil could be playing a role in the country's obesity problem.
The University of California, Riverside study, published in the Journal of Lipid Research in October, investigated how mice metabolized linoleic acid, an omega-6 fatty acid widely present in soybean oil, by feeding them a high-fat diet based on the common cooking oil.
While the study was conducted on mice, Frances Sladek, a UCR professor of cell biology and author of the study, told Newsweek that the findings "were translatable to humans as the pathways we found involved in soybean oil-induced obesity are highly conserved between mouse and human."
Why It Matters
Soybean oil is by far the most widely used cooking oil in the country, with rapeseed oil second and palm oil third, according to data from Statista. Soybean oil is also made up of more than 50 percent linoleic acid, Sladek said.
The finding raises notable concern, not only because of the oil's popularity, but also because of America's high obesity rates—one in five children and two in five adults are obese in the U.S., meaning they have a Body Mass Index (BMI) higher than 30.
Obesity is known to be associated with higher risks of health problems, including diabetes, heart disease and strokes.
The American diet has also been called into question by studies previously, as last year a study found that the majority of Americans ate a diet that promoted inflammation, increasing the risk of diseases such as heart disease, obesity, diabetes, depression and certain cancers.
What To Know
The study specifically examined the effects of molecules called oxylipins on mice. These molecules are what linoleic acid is broken down into in the body, and so the higher the consumption of the acid, the higher the amount of these molecules will be in the body.
While other fatty acids also break down into oxylipins, the oxylipins derived from linoleic acid were the ones the authors found contributed to obesity in mice.
The finding is not new; the researchers noted this result in a previous study. What they did differently in this study was test the impact of a diet high in soybean oil in a group of male mice genetically engineered to express a different version of a liver regulatory gene, P2-HNF4α.
This meant they had different metabolic pathways from the control group, as the genetic change reduced the activity of enzymes that convert linoleic acid into oxylipins.
The researchers found that the modified mice had healthier livers and gained less weight than the control group on the same diet, further supporting the idea that oxylipins contribute to obesity.
“This may be the first step toward understanding why some people gain weight more easily than others on a diet high in soybean oil,” said Sonia Deol, a UCR biomedical scientist and another author of the study.
Although the researchers also note that the genetically modified mice had elevated oxylipins on a low-fat diet without becoming obese, suggesting that other metabolic factors are at play.
Sladek said that they found that "it is the levels of the oxylipins present in the liver, not circulating in the blood, that correlate with obesity."
How Much Soybean Oil Do Americans Actually Consume?
Consuming a small amount of linoleic acid is actually required for human health and is part of a healthy diet; however, the researchers noted that America has had a "remarkable increase" in its consumption of the oil over the past 50 years.
The required amount of linoleic acid for health is around 1 to 2 percent of a person's calorific intake, the study authors noted, as small amounts play an important role in maintaining good health.
Most Americans broadly have a much higher intake of linoleic acid at around 15 to 25 percent of their calorific intake, the study authors said.
Sladek said that consuming small amounts of soybean oil is "perfectly safe and provides a good source of the essential fatty acid linoleic acid."
He said that the problem is that "processed foods are becoming an ever larger part of our diet and many of those foods have soybean oil in them, or they have corn oil, safflower seed oil, sunflower seed oil — all these seed oils are made up of large amounts of linoleic acid, just like soybean oil."
"So in general, we are taking in much more of these seed oils, all of which have high levels of linoleic acid, than our body needs," he added.
What Does Soybean Oil Do to Your Body?
It is not clear from the study how these findings would translate to the human body, and further research is needed to determine the impact of soybean oil on human health. Newsweek
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Nutritionist Leema Mahajan Clears Myths on Palm Oil and Misleading Labels with Science-Backed Facts
Mumbai, Maharashtra, India
Amid rising consumer confusion around edible oils and growing online misinformation, the Malaysian Palm Oil Council (MPOC) has launched a new six-part podcast series, aimed at helping Indian households make informed, science-backed choices. The series builds on MPOC’s earlier digital initiatives that reached millions of Indian consumers by simplifying the nutrition, science and sustainability behind Malaysian palm oil.
The first two podcast episodes in the series feature nutrition expert and creator Leema Mahajan as the guest. The podcast blends relatable kitchen conversations with evidence-based insights on health, dietary fats, sustainability, and misleading marketing labels. Each episode breaks down widely circulated myths and offers listeners clear, practical takeaways for everyday cooking.
Episode Highlights
In the first Episode, Leema simplifies the big question, which oil is truly healthy? by stressing balance, and smart cooking habits over eliminating any single oil. She briefly touches on palm oil’s science-backed benefits and the importance of rotating oils at home. In the next Episode, she breaks down the rising “No Palm Oil” labels, explaining why they’re often fear-driven and misleading. She urges viewers to look beyond front packet claims and understand what truly makes a product healthy.
What Science Says About Palm Oil
The series integrates current research showing that palm oil is rich in tocotrienols and carotenoids (in red palm oil), compounds recognised for their antioxidant and potential cardiometabolic benefits. Palm oil is naturally cholesterol-free, as cholesterol is found only in animal-based fats. When consumed as part of a balanced diet, palm oil has a neutral impact on blood cholesterol levels.
Aligned With ICMR Dietary Guidelines
The podcast reiterates the ICMR–NIN Dietary Guidelines (2024), which recommend limiting visible fats to 25–30 g per person per day and rotating multiple plant-based oils to maintain a balanced fatty acid profile. In this context, palm oil is positioned as one of several healthy options suitable for Indian cooking patterns.
Supporting India’s Edible Oil Goals: NMEO–OP
The series also contextualises palm oil within India’s broader edible oil landscape. Under the Government of India’s National Mission on Edible Oils – Oil Palm (NMEO–OP), states across the country are expanding oil palm cultivation to strengthen domestic availability and reduce reliance on imports. Malaysian expertise continues to support this growth across multiple regions.
Addressing Misleading ‘No Palm Oil’ Labels
Responding to growing market confusion, the podcast reinforces recent statements by industry bodies such as IFBA and OTAI, which have labelled “No Palm Oil” tags as misleading marketing tactics rather than evidence-based health claims. The series urges consumers to prioritise overall nutrition, moderation and credible science over fear-based messaging.
Through scientific facts MPOC aims to bring clarity, context and accuracy to empower consumers to make informed and balanced choices.
About the Series
This is a six-episode podcast series by the Malaysian Palm Oil Council (MPOC) designed to address misinformation and share scientific facts about palm oil in a simple, relatable way.
Each episode brings expert voices and everyday perspectives to topics like nutrition, health, and sustainability helping listeners replace myths with understanding. With these conversations, MPOC hopes to encourage balanced, fact-based discussions and highlight palm oil’s rightful place as a versatile, nutritious, and sustainably produced edible oil. Newsvoir
December 01, 2025
Sustainable Palm Oil Market Growth and Restrain Factors Analysis Report
InsightAce Analytic Pvt. Ltd. announces the release of a market assessment report on the "Global Sustainable Palm Oil Market - (By Type (Kernel Oil, Red Palm Oil, White Palm Oil, Fractional Palm Oil), By Distribution Channel (Online, Offline), By End-User (Food, Cosmetics, Bakery Products, Margarine, Pet Food, Ice Cream, Soap And Detergents, Confectionery Products)), Trends, Industry Competition Analysis, Revenue and Forecast To 2031."
According to the latest research by InsightAce Analytic, the Global Sustainable Palm Oil Market is valued at US$ 1.05 Bn in 2023, and it is expected to reach US$ 1.52 Bn by 2031, with a CAGR of 4.9% during the forecast period of 2024-2031.
Request For Free Sample Pages:
https://www.insightaceanalytic.com/request-sample/2588
Palm oil is a widely utilized vegetable oil derived from the oil palm tree, found in numerous food and non-food products. However, traditional production methods have come under scrutiny for contributing to environmental issues such as deforestation and habitat destruction. This has led to the emergence and growth of the sustainable palm oil market, which emphasizes responsible production practices that minimize environmental impact and support local communities.
The market's expansion is largely driven by increasing awareness of these challenges. Certification programs, such as the Roundtable on Sustainable Palm Oil (RSPO), play a key role in promoting sustainable practices within the industry. As consumer demand for ethically sourced products rises, food companies are increasingly adopting sustainable palm oil sourcing practices. This growing commitment to responsible sourcing is further fueling market growth. Continued collaboration among all stakeholders remains critical for advancing the global sustainable palm oil market.
List of Prominent Players in the Sustainable Palm Oil Market:
• Sime Darby Berhad
• Hap Seng Plantation Holdings Berhad
• Kuala Lumpur Kepong Berhad
• IOI Corporation Berhad
• Wilmar International Ltd
• Cargill, Incorporated.
• SIPEF NV
• Kulim Berhad
• New Britain Palm Oil Ltd
• Golden Agri-Resources Ltd.
• Archer Daniels Midland
• Univanich Palm Oil Public Company Ltd.
Market Dynamics:
Drivers-
The sustainable palm oil market is driven by several key factors, including consumer awareness, corporate initiatives, and government regulations. Growing consumer awareness regarding the environmental and social impacts of conventional palm oil production has led to a heightened demand for responsibly sourced palm oil. Additionally, the market is supported by increasing consumer preference for environmentally friendly products, stricter regulatory frameworks, and greater corporate commitment to sustainability.
Curious About This Latest Version Of The Report? Enquiry Before Buying: https://www.insightaceanalytic.com/enquiry-before-buying/2588
Challenges:
sustainable palm oil production include the significant costs and time involved in obtaining certification for sustainable practices. Smaller businesses, in particular, may find these costs prohibitive, potentially limiting their participation in the sustainable market. Furthermore, the complex interplay of environmental, social, and economic factors in palm oil production creates ongoing challenges. Despite efforts to promote sustainability, habitat destruction and deforestation continue in some regions due to illegal logging and the expansion of palm oil plantations. This results in reduced biodiversity and increased carbon emissions, undermining efforts to create a sustainable palm oil supply chain.
Regional Trends:
The demand for sustainable palm oil is growing as consumers, food manufacturers, and retailers increasingly seek products sourced in an environmentally and socially responsible manner. Concerns over deforestation, biodiversity loss, and human rights issues associated with conventional palm oil production are driving this shift.
Certification programs like RSPO play an important role in promoting responsible practices within the industry. Stakeholders across the supply chain are working together to increase the availability of sustainable palm oil to meet consumer expectations and support conservation efforts. The Asia Pacific region is expected to retain a significant market share in the sustainable palm oil industry, driven by the adoption of innovative strategies by key industry players.
Recent Developments:
• In Sept 2023, Sime Darby Plantation Bhd and India's Godrej Agrovet Ltd (GAVL) formed a partnership to work together on the supply of oil palm seeds and agricultural innovation. Sime Darby Plantation supplied oil palm seeds to GAVL's commercial unit and constructed a cutting-edge seed production plant in India as a component of the collaboration. The integrated plantation conglomerate had intended to supply India with 1.3 million germinated seeds in 2024, obtained from its operations in three countries, specifically Indonesia, Malaysia, and Papua New Guinea. Open PR
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Indonesia Palm Oil Association strengthens US and European partnerships to boost sustainable practices
In the Netherlands, Food Ingredients reported that the Indonesian Palm Oil Association (GAPKI) has signed six Memoranda of Understanding (MoUs) with partner organizations across the US and Europe as part of its ongoing campaign for Indonesian palm oil.
GAPKI represents Indonesia’s palm oil producers, who account for approximately 60% of global palm oil production. The association continues to engage with stakeholders worldwide to advance sustainable practices and promote fact-based dialogue on the palm oil sector, according to the report.
The six MoUs signed during the visit establish frameworks for cooperation spanning trade facilitation, sustainability initiatives, knowledge sharing, and technical capacity building. The agreements represent a significant expansion of GAPKI’s international footprint and reflect growing interest among global partners in engaging constructively with Indonesian palm oil producers, the report added. Biofuels Digest/ Food Ingredients First
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Africa’s new palm oil frontier: PHC positions DRC for growth and invites Malaysian collaboration
When conversations arise about the future of the global palm oil industry, attention has long remained centred on Malaysia and Indonesia. But quietly and strategically, the Democratic Republic of the Congo (DRC) is emerging as the next major frontier — and no company embodies this momentum more than Plantations et Huileries du Congo (PHC).
In an industry long dominated by Southeast Asian giants, PHC is rewriting the narrative and at its helm is a rare figure — CEO Monique Gieskes, a dynamic woman leader in agribusiness, since February 2021.
Under her stewardship, PHC is positioning DRC as Africa’s new frontier for the global palm oil industry, and is actively inviting Malaysian industry players to participate in building the continent’s next palm oil powerhouse.
CPOPC accession: A strategic gateway for expansion
The accession of DRC to the Council of Palm Oil Producing Countries (CPOPC) in 2025 was a pivotal point in the company’s growth path — a milestone heavily facilitated by PHC.
This membership does more than just place the DRC on the global palm oil map. It aligns the country with internationally recognised standards.
According to Gieskes, the development signals a new phase of industry maturity. “CPOPC’s membership is transformative for us. The membership is more than an endorsement. It is a gateway,” she explains. “It gives the DRC access to structured technical support, knowledge transfer and global cooperation. It is essential for modernising our sector, attracting international partners and building a sustainable future.”
CPOPC membership provides a recognised policy and governance framework that strengthens the DRC’s credibility, signals regulatory stability and enhances investor confidence, particularly for Malaysian partners familiar with CPOPC’s standards and mechanisms. The accession also creates a direct institutional bridge for collaboration in breeding, agronomy, technology exchange and sustainability, aligning the DRC with the same global structures that have shaped Malaysia’s leadership in the palm oil sector. The Edge
CSPO Watch Palm oil news December 2025
Sustainable Palm Oil Market Growth and Restrain Factors Analysis Report
InsightAce Analytic Pvt. Ltd. announces the release of a market assessment report on the "Global Sustainable Palm Oil Market - (By Type (Kernel Oil, Red Palm Oil, White Palm Oil, Fractional Palm Oil), By Distribution Channel (Online, Offline), By End-User (Food, Cosmetics, Bakery Products, Margarine, Pet Food, Ice Cream, Soap And Detergents, Confectionery Products)), Trends, Industry Competition Analysis, Revenue and Forecast To 2031."
According to the latest research by InsightAce Analytic, the Global Sustainable Palm Oil Market is valued at US$ 1.05 Bn in 2023, and it is expected to reach US$ 1.52 Bn by 2031, with a CAGR of 4.9% during the forecast period of 2024-2031.
Request For Free Sample Pages:
https://www.insightaceanalytic.com/request-sample/2588
Palm oil is a widely utilized vegetable oil derived from the oil palm tree, found in numerous food and non-food products. However, traditional production methods have come under scrutiny for contributing to environmental issues such as deforestation and habitat destruction. This has led to the emergence and growth of the sustainable palm oil market, which emphasizes responsible production practices that minimize environmental impact and support local communities.
The market's expansion is largely driven by increasing awareness of these challenges. Certification programs, such as the Roundtable on Sustainable Palm Oil (RSPO), play a key role in promoting sustainable practices within the industry. As consumer demand for ethically sourced products rises, food companies are increasingly adopting sustainable palm oil sourcing practices. This growing commitment to responsible sourcing is further fueling market growth. Continued collaboration among all stakeholders remains critical for advancing the global sustainable palm oil market.
List of Prominent Players in the Sustainable Palm Oil Market:
• Sime Darby Berhad
• Hap Seng Plantation Holdings Berhad
• Kuala Lumpur Kepong Berhad
• IOI Corporation Berhad
• Wilmar International Ltd
• Cargill, Incorporated.
• SIPEF NV
• Kulim Berhad
• New Britain Palm Oil Ltd
• Golden Agri-Resources Ltd.
• Archer Daniels Midland
• Univanich Palm Oil Public Company Ltd.
Market Dynamics:
Drivers-
The sustainable palm oil market is driven by several key factors, including consumer awareness, corporate initiatives, and government regulations. Growing consumer awareness regarding the environmental and social impacts of conventional palm oil production has led to a heightened demand for responsibly sourced palm oil. Additionally, the market is supported by increasing consumer preference for environmentally friendly products, stricter regulatory frameworks, and greater corporate commitment to sustainability.
Curious About This Latest Version Of The Report? Enquiry Before Buying: https://www.insightaceanalytic.com/enquiry-before-buying/2588
Challenges:
sustainable palm oil production include the significant costs and time involved in obtaining certification for sustainable practices. Smaller businesses, in particular, may find these costs prohibitive, potentially limiting their participation in the sustainable market. Furthermore, the complex interplay of environmental, social, and economic factors in palm oil production creates ongoing challenges. Despite efforts to promote sustainability, habitat destruction and deforestation continue in some regions due to illegal logging and the expansion of palm oil plantations. This results in reduced biodiversity and increased carbon emissions, undermining efforts to create a sustainable palm oil supply chain.
Regional Trends:
The demand for sustainable palm oil is growing as consumers, food manufacturers, and retailers increasingly seek products sourced in an environmentally and socially responsible manner. Concerns over deforestation, biodiversity loss, and human rights issues associated with conventional palm oil production are driving this shift.
Certification programs like RSPO play an important role in promoting responsible practices within the industry. Stakeholders across the supply chain are working together to increase the availability of sustainable palm oil to meet consumer expectations and support conservation efforts. The Asia Pacific region is expected to retain a significant market share in the sustainable palm oil industry, driven by the adoption of innovative strategies by key industry players.
Recent Developments:
• In Sept 2023, Sime Darby Plantation Bhd and India's Godrej Agrovet Ltd (GAVL) formed a partnership to work together on the supply of oil palm seeds and agricultural innovation. Sime Darby Plantation supplied oil palm seeds to GAVL's commercial unit and constructed a cutting-edge seed production plant in India as a component of the collaboration. The integrated plantation conglomerate had intended to supply India with 1.3 million germinated seeds in 2024, obtained from its operations in three countries, specifically Indonesia, Malaysia, and Papua New Guinea. Open PR
--------
Indonesia Palm Oil Association strengthens US and European partnerships to boost sustainable practices
In the Netherlands, Food Ingredients reported that the Indonesian Palm Oil Association (GAPKI) has signed six Memoranda of Understanding (MoUs) with partner organizations across the US and Europe as part of its ongoing campaign for Indonesian palm oil.
GAPKI represents Indonesia’s palm oil producers, who account for approximately 60% of global palm oil production. The association continues to engage with stakeholders worldwide to advance sustainable practices and promote fact-based dialogue on the palm oil sector, according to the report.
The six MoUs signed during the visit establish frameworks for cooperation spanning trade facilitation, sustainability initiatives, knowledge sharing, and technical capacity building. The agreements represent a significant expansion of GAPKI’s international footprint and reflect growing interest among global partners in engaging constructively with Indonesian palm oil producers, the report added. Biofuels Digest/ Food Ingredients First
--------
Africa’s new palm oil frontier: PHC positions DRC for growth and invites Malaysian collaboration
When conversations arise about the future of the global palm oil industry, attention has long remained centred on Malaysia and Indonesia. But quietly and strategically, the Democratic Republic of the Congo (DRC) is emerging as the next major frontier — and no company embodies this momentum more than Plantations et Huileries du Congo (PHC).
In an industry long dominated by Southeast Asian giants, PHC is rewriting the narrative and at its helm is a rare figure — CEO Monique Gieskes, a dynamic woman leader in agribusiness, since February 2021.
Under her stewardship, PHC is positioning DRC as Africa’s new frontier for the global palm oil industry, and is actively inviting Malaysian industry players to participate in building the continent’s next palm oil powerhouse.
CPOPC accession: A strategic gateway for expansion
The accession of DRC to the Council of Palm Oil Producing Countries (CPOPC) in 2025 was a pivotal point in the company’s growth path — a milestone heavily facilitated by PHC.
This membership does more than just place the DRC on the global palm oil map. It aligns the country with internationally recognised standards.
According to Gieskes, the development signals a new phase of industry maturity. “CPOPC’s membership is transformative for us. The membership is more than an endorsement. It is a gateway,” she explains. “It gives the DRC access to structured technical support, knowledge transfer and global cooperation. It is essential for modernising our sector, attracting international partners and building a sustainable future.”
CPOPC membership provides a recognised policy and governance framework that strengthens the DRC’s credibility, signals regulatory stability and enhances investor confidence, particularly for Malaysian partners familiar with CPOPC’s standards and mechanisms. The accession also creates a direct institutional bridge for collaboration in breeding, agronomy, technology exchange and sustainability, aligning the DRC with the same global structures that have shaped Malaysia’s leadership in the palm oil sector. The Edge
CSPO Watch Palm oil news December 2025
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