Palm oil news. February 2026
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February 18, 2026
Indian veg oil buyers await clarity on US trade deal
Indian vegetable oil buyers are awaiting further details of a recently announced India-US trade deal, in which India is expected to reduce tariffs on certain US goods, including imports of soybean oil
Key takeaways:
Since the initial announcement on Friday February 6, however, details have been relatively scant apart from an interim framework, which states that “India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.”
Currently, imports of crude vegetable oils are subject to a combined duty of 16.5%, which includes a 10% basic customs duty, a 5% agri cess and a 10% social welfare cess.
What the trade deal means for Indian veg oil imports
With full details on the trade deal still pending, market players have been speculating over the planned tariff adjustment, sources told Fastmarkets, with continuing talk that the reduction could be anywhere from 0-15%, and a ‘tariff rate quota’ (TRQ) volume of 200,000-250,000 tonnes.
A TRQ essentially limits the volume of US soybean oil that would enter India at the reduced tariff rate, with any volume above the quota subject to standard tariff rates.
“These [tariff adjustment percentages and TRQ volume] are all assumptions and speculations so far – once we have clarity on what the change in tariffs or quotas will be, only then can we make an impact assessment,” Sudhakar Desai, president of the Indian Vegetable Oil Producers Association (IVPA) and chief executive officer of Emami Agrotech, one of the largest soybean oil buyers in India, told Fastmarkets.
Aashish Acharya, vice president at Patanjali Foods, a leading edible oils importer, also told Fastmarkets, “[There’s talk going around,] but ultimately we need clarity over critical matters such as the actual quota, the quantum of the duty reduction, and if it will be done in stages, over time or reduced completely to zero in one measure.”
The lack of clarity has also limited discussions for soybean oil purchases over the last few days, with market players awaiting more details, although Indian government officials have stated that any reductions on US imports will only take place after the signing of the legal and formal agreement, which is expected to occur in mid-March.
“Without clarification from the government, India’s importers will not buy US soybean oil, and even after the agreement is finalized [likely in the second half of March], we will likely need another 40-50 days to complete the quota allocation process,” added Acharya.
US soybean oil market rallies on trade deal hopes
Following the trade deal announcement, soybean oil futures on the Chicago Mercantile Exchange rallied to their highest in just over six months, fueled by optimism that the agreement would lead to increased US soybean oil exports.
However, trade sources have also told Fastmarkets that the US’ ability to export more soybean oil to India would depend largely on how much extra soybean oil the US will have for exports once the US Environmental Protection Agency (EPA) issues the finalized RVOs (Renewable Volume Obligations) for 2026 and 2027, which is expected sometime between now and the end of March.
Once that occurs, the US balance sheet for soybean oil is expected to adjust when the market receives clarity over the country’s biofuel policies.
India is the world’s largest edible oil importer, with the majority of its soybean oil coming from South American giants Argentina and Brazil and, to a smaller extent, Russia, while US soybean oil exports have typically found homes in neighbors Mexico and Canada.
US soybean oil exports are also seeing a dip in early 2026 compared with year-ago levels amid higher prices, due to expectations that demand from the US biofuel sector will ramp up in the coming months once US renewable fuel mandates and tax policy are finalized.
Price shifts make palm oil the preferred choice
The last time significant volumes of soybean oil from the US entered India was in the first half of 2025, when around 188,000 tonnes of US soybean oil were imported into India over the span of February-May, according to data from industry group Solvent Extractors Association (SEA).
Those flows were largely a result of US soybean oil becoming the cheapest vegetable oil at the end of 2024 following uncertainty over the country’s energy policies and as palm oil, which has traditionally been the lowest-priced vegetable oil, was trading at a premium to its rival.
The situation is not the same coming into 2026, with palm oil currently offered at around $95-100 lower into India than soybean oil for March shipment.
Crude palm oil (CPO) into India was last assessed by Fastmarkets at $1,140 per tonne CFR west coast India, while soybean oil CFR India was assessed at $1,252 per tonne CFR.
“Palm oil is likely to remain the cheapest vegetable oil for the export trade, but we see Argentine soybean oil tracking towards palm oil while US soybean oil becomes an island due to the RVO,” said Alex Fox, an analyst from Stabro Corp.
Soybean oil FOB US Gulf was last assessed by Fastmarkets at $1,268.10 per tonne FOB, while soybean oil FOB Argentina Upriver ports was assessed at $1,178.25 per tonne FOB, while estimates for soybean oil freight for US-India and Argentina-India were around $90 per tonne and $72 per tonne respectively, sources told Fastmarkets.
This would imply US soybean oil as more expensive by around $108 per tonne or 8.6% higher on a landed India basis in current conditions, with any tariff reduction needing to be higher in order for US oil to be competitive into India.
South American harvest intensifies competition
Competition will be even stiffer going into April-July when South America’s harvest season takes place and soybean oil availability is expected to rise, with Patanjali’s Acharya holding the view that the US would remain uncompetitive, even if duties were reduced to 0%.
“US soybean oil will not be competitive against South American oil in the April-July months, even if you reduce the duty to 0%, with the South American harvest and higher freight and logistical costs out of the US,” he said.
South American players express doubt about Indian veg oil shifts
Similar observations on the US’ ability to export more oil to India were also made by South American trade sources, although they acknowledged that there could be some effect on Argentine and Brazilian soybean oil exports.
“I would say yes [it will affect South American exports], but in the long term, I have doubts – does the US have significant quantities of soybean oil available for export?” a Brazilian-based broker said to Fastmarkets.
“With the advancement of renewable fuels and the stagnation of the US crop size, perhaps the effect won’t be so devastating,” they added.
Referring to speculation over the TRQ volume, he commented that the volume “seems like it will be negligible compared with the total import needs of India.”
His view was echoed by Patanjali’s Acharya, who noted that “if the volume is going to be around 250,000 tonnes, that is just 1% of India’s total annual edible oil consumption, so the impact may not be significant.”
An Argentina-based broker source also told Fastmarkets that the trade deal would likely have a limited effect on Argentine soybean oil exports and that increased flows to India from the US would be largely dependent on the US’ logistical capacity to export more and how local demand will react.
“We would need to have a clear understanding of the logistical capabilities of US Gulf and PNW ports and [of the] US’ domestic demand for soybean oil,” they said.
The long term impact on South American suppliers
Another market source that deals with Argentine and Brazilian soybean oil said that, although in principle the news does not seem to be positive for South American soybean oil, especially in the case of Argentina, which has been the largest supplier of soybean oil to India, “this will depend on the volume that India authorizes to enter from the US and the US’ export capacity.”
“If India authorizes medium to large volumes, the potential impact would be a displacement of Argentine soybean oil by US oil, a drop in the FOB price of Argentine soybean oil, and a redirection towards other markets,” independent analyst Javier Preciado Patiño told Fastmarkets.
A quota of 200,000-300,000 tonnes, however, “will not be problematic” with Argentina’s price competitiveness, he added.
Patiño believes that, at least initially, India will opt for a small quota.
“While Argentina has proven to be a reliable and consistent supplier, India is aware of the ups and downs of the Trump administration’s policies regarding tariffs and foreign trade, so I don’t think they will want to grant them large quotas,” he said.
India has also “committed to buy more American products and purchase over $500 billion of US energy, information and communication technology, agricultural, coal, and other products,” according to a fact sheet on the White House website. Fast Markets
--------
How France is losing its leadership on EU agriculture
Italy, Spain and Poland are reshaping the bloc’s food export balance
France, long the bloc’s agricultural powerhouse, saw its agri-food trade surplus fall last year, hit by reliance on exports to non-EU markets and difficulties meeting domestic demand, while other EU countries are gaining ground.
Thanks to its wines, cereals, and dairy products, France is the agricultural étoile – or star – of Europe. In 2024, the country’s value of production stood at €88.3 billion, the highest in the EU ahead of Germany (€75.5 billion), Italy (€70.2 billion), and Spain (€68.7 billion).
Yet the trade balance is slipping. In 2025, Paris recorded its weakest agri-food trade performance in a quarter of a century, with the lowest surplus in 25 years.
This is not just a short-term crisis, but the result of both external shocks and deeper structural problems.
Reliance on non-EU markets
For decades, France’s agri-food surplus was driven by high value-added exports like wine and spirits, sold both within the EU and to third countries.
But that balance has shifted. “In recent years, France has become a net importer on the European market, and most of its surplus now comes mainly from third countries,” explains Sébastien Abis, a food geopolitics researcher at the French Institute for International and Strategic Relations (IRIS).
This growing dependence left France particularly vulnerable when trade tensions emerged over the summer.
In July and August, France’s two main export markets for wine and spirits – the US and China – imposed steep tariffs: 15% on EU wine and spirits in the US, and up to 34.9% on spirits in China.
The impact was immediate: wine exports dropped by 8% in value, and spirits plummeted by as much as 25%.
France also faced a sharp decline in cereal exports, hit by poor 2024 harvests and the loss of key wheat buyer Algeria amid geopolitical tensions.
For Abis, the problem was partly strategic overconfidence. “We overestimated our ability to retain certain clients,” he says.
Others did better
Other EU countries have managed challenges better by focusing on high-quality local products or efficient technology, and by relying more heavily on intra-EU trade, explains Yari Vecchio of the University of Bologna.
Spain, for example, has been consolidating its position as the EU’s fourth-largest exporter, thanks to “a clear cost-competitiveness advantage” in key products such as fruits, olive oil, and pork, Vecchio says.
Also in Eastern Europe, competitors have grown rapidly. Poland, in particular, has expanded its production and export capacity by combining “strong cost efficiency with an increasingly integrated agri-food industrial chain,” the researcher notes.
But the clearest example is Italy, which competes on quality and branding rather than price, using geographical indications, according to Vecchio. The country achieved record exports of around €73 billion in agri-food products in 2025, up 5% from the same period in 2024.
Italian success has also been driven by coordinated marketing, says Marine Raffray, an agricultural economist at the French Chambers of Agriculture. “Italians hunt in packs when exporting; they focus on the national brand rather than regional specialisations. This is far less visible in France.”
Missed demand
France also suffered from a certain degree of elitism.
“France missed a European market that is not exclusively high-end,” Abis explains.
Relying on a strong and codified tradition, it failed to adapt to changing consumer demand, as they increasingly crave cheaper, more convenient products and no longer want to spend hours in the kitchen cooking a boeuf bourguignon.
In fruit and vegetables, the country is now running a deficit. Consumption is shifting away from fresh products towards processed ones. “We consume more juice, canned fruit, and compote. To produce these, we need industrial facilities that we do not have in sufficient quantity,” says Raffray.
But building factories takes time and requires long-term planning, something France has struggled with, says Burkhard Schaer, director of the French-German agriculture research agency ECOZEPT. “There is no visibility in France’s conventional agriculture,” he says, referring to shifting agricultural policies in past years, from the Green Deal’s environmental ambitions to the more recent softening of regulations for farmers.
With an ageing workforce, “no measures are in place to ensure generational renewal,” Schaer adds. Productivity gains no longer fully compensate the many farmers who are leaving the sector, particularly in livestock farming.
Equipment is also ageing. Half of France’s agri-food factories have not been modernised since the early 2000s, Abis says.
France’s shortfall has reshaped the single market. The country is now turning into a destination market for neighbouring partners.
Former French President Charles de Gaulle, who famously once asked, “How can you govern a country with 258 varieties of cheese?”, would be dismayed to see that even France’s iconic cheese sector is feeling the strain.
“We are importing more industrial-type cheese from the Netherlands to meet the growing demand for ‘ingredient cheese’ used in processed foods,” Raffray says. Euractiv
--------
UMS Academic Warns of Shift from Natural Forests to Oil Palm Plantations
PALMOILMAGAZINE, SURAKARTA – At first glance, Indonesia’s landscape still appears lush and green. But behind that greenery, a fundamental shift has taken place in the structure and ecological function of its forests — from natural tropical rainforests to industrial timber estates and oil palm plantations. This raises a critical question: does visible greenery truly reflect environmental sustainability?
Aziz Akbar Mukasyaf, Ph.D., a lecturer at the Faculty of Geography at Universitas Muhammadiyah Surakarta (UMS), stated that ecologically, Indonesia should be dominated by tropical rainforests. However, field realities show significant changes in vegetation structure and ecosystem function.
Indonesia lies along the equator, naturally supporting vast tropical rainforest ecosystems stretching from Sumatra to Papua. Yet on Java Island, natural forests have long declined since the colonial era and were replaced by plantation forests such as teak. Today, substantial natural forests remain primarily in Sumatra, Kalimantan, Sulawesi, and Papua, although land-use pressure continues.
Aziz estimates that Indonesia’s natural forest area has declined by more than 50 percent. He emphasized that frequent claims of declining deforestation rates do not necessarily indicate ecological recovery. In many cases, former natural forest areas have been converted into commercial forests, industrial timber plantations, or oil palm estates.
“Administratively, the land may still be recorded as vegetated. But ecologically, there has been a very significant decline in function,” he explained.
Different Meanings of Reforestation
According to Aziz, one core issue lies in differing definitions of reforestation. From a global and ecological science perspective, reforestation means restoring forests close to their natural condition — in terms of vegetation structure, species composition, and ecosystem function.
True reforestation prioritizes native species and encourages natural succession processes, enabling forests to regain their roles as carbon sinks, water regulators, and biodiversity habitats.
In contrast, in Indonesia, reforestation is often interpreted simply as replanting cleared land, without considering ecological suitability. In practice, planting frequently involves economically valuable crops such as oil palm or other industrial species that are not native to the local ecosystem.
“From an ecological standpoint, planting commercial crops on former natural forests cannot be called reforestation. It is a land-use change from a natural ecosystem into a production system,” he stressed.
Oil Palm Is Not a Tree
Aziz also addressed the common perception equating oil palm plantations with forest greening. He clarified that biologically, oil palm differs from trees.
“Oil palm is not a tree anatomically. It is a monocot, without cambium, with fibrous surface roots. Trees, on the other hand, have deeper root systems and can store water more effectively,” he explained.
Equating oil palm with trees, he warned, can mislead policy decisions. If oil palm plantations are classified as forest, natural forest conversion may still be recorded as forested land, despite fundamental ecological change.
He further noted that natural forests are heterogeneous, consisting of diverse species, while oil palm plantations are homogeneous. Heterogeneous forests are more resilient to pests, diseases, and climate change, whereas homogeneous systems are far more vulnerable.
“In a homogeneous system, when one component is disturbed, the impact spreads quickly. Natural forests have built-in buffering mechanisms,” he added.
Call for Forestry Policy Evaluation
Aziz emphasized that Indonesia must manage forests not merely as economic commodities, but as life-support systems. Forests provide oxygen, store carbon, regulate water systems, protect soil, and serve as habitats for biodiversity and local communities.
He urged policymakers to evaluate forestry policies beyond mere land-cover statistics, focusing instead on ecosystem quality and the sustainability of ecological functions. Sustainable development, he argued, requires honesty in defining what constitutes a forest and courage in placing ecological interests on equal footing with economic ones.
“The real question is not only how much land is green, but what kind of green and for what function. If oil palm continues to expand while natural forests shrink, then Indonesia’s environmental sustainability must be seriously questioned,” he concluded. Palm Oil Magazine
--------
Indian veg oil buyers await clarity on US trade deal
Indian vegetable oil buyers are awaiting further details of a recently announced India-US trade deal, in which India is expected to reduce tariffs on certain US goods, including imports of soybean oil
Key takeaways:
- Indian veg oil importers are awaiting details on a potential US trade deal which could reduce tariffs on US soybean oil imports.
- Market experts doubt US soybean oil can compete on price with South American suppliers even with reduced tariffs due to freight costs and biofuel demand.
- Any initial import quota from the US is expected to be small representing a minor fraction of India’s total edible oil consumption.
Since the initial announcement on Friday February 6, however, details have been relatively scant apart from an interim framework, which states that “India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.”
Currently, imports of crude vegetable oils are subject to a combined duty of 16.5%, which includes a 10% basic customs duty, a 5% agri cess and a 10% social welfare cess.
What the trade deal means for Indian veg oil imports
With full details on the trade deal still pending, market players have been speculating over the planned tariff adjustment, sources told Fastmarkets, with continuing talk that the reduction could be anywhere from 0-15%, and a ‘tariff rate quota’ (TRQ) volume of 200,000-250,000 tonnes.
A TRQ essentially limits the volume of US soybean oil that would enter India at the reduced tariff rate, with any volume above the quota subject to standard tariff rates.
“These [tariff adjustment percentages and TRQ volume] are all assumptions and speculations so far – once we have clarity on what the change in tariffs or quotas will be, only then can we make an impact assessment,” Sudhakar Desai, president of the Indian Vegetable Oil Producers Association (IVPA) and chief executive officer of Emami Agrotech, one of the largest soybean oil buyers in India, told Fastmarkets.
Aashish Acharya, vice president at Patanjali Foods, a leading edible oils importer, also told Fastmarkets, “[There’s talk going around,] but ultimately we need clarity over critical matters such as the actual quota, the quantum of the duty reduction, and if it will be done in stages, over time or reduced completely to zero in one measure.”
The lack of clarity has also limited discussions for soybean oil purchases over the last few days, with market players awaiting more details, although Indian government officials have stated that any reductions on US imports will only take place after the signing of the legal and formal agreement, which is expected to occur in mid-March.
“Without clarification from the government, India’s importers will not buy US soybean oil, and even after the agreement is finalized [likely in the second half of March], we will likely need another 40-50 days to complete the quota allocation process,” added Acharya.
US soybean oil market rallies on trade deal hopes
Following the trade deal announcement, soybean oil futures on the Chicago Mercantile Exchange rallied to their highest in just over six months, fueled by optimism that the agreement would lead to increased US soybean oil exports.
However, trade sources have also told Fastmarkets that the US’ ability to export more soybean oil to India would depend largely on how much extra soybean oil the US will have for exports once the US Environmental Protection Agency (EPA) issues the finalized RVOs (Renewable Volume Obligations) for 2026 and 2027, which is expected sometime between now and the end of March.
Once that occurs, the US balance sheet for soybean oil is expected to adjust when the market receives clarity over the country’s biofuel policies.
India is the world’s largest edible oil importer, with the majority of its soybean oil coming from South American giants Argentina and Brazil and, to a smaller extent, Russia, while US soybean oil exports have typically found homes in neighbors Mexico and Canada.
US soybean oil exports are also seeing a dip in early 2026 compared with year-ago levels amid higher prices, due to expectations that demand from the US biofuel sector will ramp up in the coming months once US renewable fuel mandates and tax policy are finalized.
Price shifts make palm oil the preferred choice
The last time significant volumes of soybean oil from the US entered India was in the first half of 2025, when around 188,000 tonnes of US soybean oil were imported into India over the span of February-May, according to data from industry group Solvent Extractors Association (SEA).
Those flows were largely a result of US soybean oil becoming the cheapest vegetable oil at the end of 2024 following uncertainty over the country’s energy policies and as palm oil, which has traditionally been the lowest-priced vegetable oil, was trading at a premium to its rival.
The situation is not the same coming into 2026, with palm oil currently offered at around $95-100 lower into India than soybean oil for March shipment.
Crude palm oil (CPO) into India was last assessed by Fastmarkets at $1,140 per tonne CFR west coast India, while soybean oil CFR India was assessed at $1,252 per tonne CFR.
“Palm oil is likely to remain the cheapest vegetable oil for the export trade, but we see Argentine soybean oil tracking towards palm oil while US soybean oil becomes an island due to the RVO,” said Alex Fox, an analyst from Stabro Corp.
Soybean oil FOB US Gulf was last assessed by Fastmarkets at $1,268.10 per tonne FOB, while soybean oil FOB Argentina Upriver ports was assessed at $1,178.25 per tonne FOB, while estimates for soybean oil freight for US-India and Argentina-India were around $90 per tonne and $72 per tonne respectively, sources told Fastmarkets.
This would imply US soybean oil as more expensive by around $108 per tonne or 8.6% higher on a landed India basis in current conditions, with any tariff reduction needing to be higher in order for US oil to be competitive into India.
South American harvest intensifies competition
Competition will be even stiffer going into April-July when South America’s harvest season takes place and soybean oil availability is expected to rise, with Patanjali’s Acharya holding the view that the US would remain uncompetitive, even if duties were reduced to 0%.
“US soybean oil will not be competitive against South American oil in the April-July months, even if you reduce the duty to 0%, with the South American harvest and higher freight and logistical costs out of the US,” he said.
South American players express doubt about Indian veg oil shifts
Similar observations on the US’ ability to export more oil to India were also made by South American trade sources, although they acknowledged that there could be some effect on Argentine and Brazilian soybean oil exports.
“I would say yes [it will affect South American exports], but in the long term, I have doubts – does the US have significant quantities of soybean oil available for export?” a Brazilian-based broker said to Fastmarkets.
“With the advancement of renewable fuels and the stagnation of the US crop size, perhaps the effect won’t be so devastating,” they added.
Referring to speculation over the TRQ volume, he commented that the volume “seems like it will be negligible compared with the total import needs of India.”
His view was echoed by Patanjali’s Acharya, who noted that “if the volume is going to be around 250,000 tonnes, that is just 1% of India’s total annual edible oil consumption, so the impact may not be significant.”
An Argentina-based broker source also told Fastmarkets that the trade deal would likely have a limited effect on Argentine soybean oil exports and that increased flows to India from the US would be largely dependent on the US’ logistical capacity to export more and how local demand will react.
“We would need to have a clear understanding of the logistical capabilities of US Gulf and PNW ports and [of the] US’ domestic demand for soybean oil,” they said.
The long term impact on South American suppliers
Another market source that deals with Argentine and Brazilian soybean oil said that, although in principle the news does not seem to be positive for South American soybean oil, especially in the case of Argentina, which has been the largest supplier of soybean oil to India, “this will depend on the volume that India authorizes to enter from the US and the US’ export capacity.”
“If India authorizes medium to large volumes, the potential impact would be a displacement of Argentine soybean oil by US oil, a drop in the FOB price of Argentine soybean oil, and a redirection towards other markets,” independent analyst Javier Preciado Patiño told Fastmarkets.
A quota of 200,000-300,000 tonnes, however, “will not be problematic” with Argentina’s price competitiveness, he added.
Patiño believes that, at least initially, India will opt for a small quota.
“While Argentina has proven to be a reliable and consistent supplier, India is aware of the ups and downs of the Trump administration’s policies regarding tariffs and foreign trade, so I don’t think they will want to grant them large quotas,” he said.
India has also “committed to buy more American products and purchase over $500 billion of US energy, information and communication technology, agricultural, coal, and other products,” according to a fact sheet on the White House website. Fast Markets
--------
How France is losing its leadership on EU agriculture
Italy, Spain and Poland are reshaping the bloc’s food export balance
France, long the bloc’s agricultural powerhouse, saw its agri-food trade surplus fall last year, hit by reliance on exports to non-EU markets and difficulties meeting domestic demand, while other EU countries are gaining ground.
Thanks to its wines, cereals, and dairy products, France is the agricultural étoile – or star – of Europe. In 2024, the country’s value of production stood at €88.3 billion, the highest in the EU ahead of Germany (€75.5 billion), Italy (€70.2 billion), and Spain (€68.7 billion).
Yet the trade balance is slipping. In 2025, Paris recorded its weakest agri-food trade performance in a quarter of a century, with the lowest surplus in 25 years.
This is not just a short-term crisis, but the result of both external shocks and deeper structural problems.
Reliance on non-EU markets
For decades, France’s agri-food surplus was driven by high value-added exports like wine and spirits, sold both within the EU and to third countries.
But that balance has shifted. “In recent years, France has become a net importer on the European market, and most of its surplus now comes mainly from third countries,” explains Sébastien Abis, a food geopolitics researcher at the French Institute for International and Strategic Relations (IRIS).
This growing dependence left France particularly vulnerable when trade tensions emerged over the summer.
In July and August, France’s two main export markets for wine and spirits – the US and China – imposed steep tariffs: 15% on EU wine and spirits in the US, and up to 34.9% on spirits in China.
The impact was immediate: wine exports dropped by 8% in value, and spirits plummeted by as much as 25%.
France also faced a sharp decline in cereal exports, hit by poor 2024 harvests and the loss of key wheat buyer Algeria amid geopolitical tensions.
For Abis, the problem was partly strategic overconfidence. “We overestimated our ability to retain certain clients,” he says.
Others did better
Other EU countries have managed challenges better by focusing on high-quality local products or efficient technology, and by relying more heavily on intra-EU trade, explains Yari Vecchio of the University of Bologna.
Spain, for example, has been consolidating its position as the EU’s fourth-largest exporter, thanks to “a clear cost-competitiveness advantage” in key products such as fruits, olive oil, and pork, Vecchio says.
Also in Eastern Europe, competitors have grown rapidly. Poland, in particular, has expanded its production and export capacity by combining “strong cost efficiency with an increasingly integrated agri-food industrial chain,” the researcher notes.
But the clearest example is Italy, which competes on quality and branding rather than price, using geographical indications, according to Vecchio. The country achieved record exports of around €73 billion in agri-food products in 2025, up 5% from the same period in 2024.
Italian success has also been driven by coordinated marketing, says Marine Raffray, an agricultural economist at the French Chambers of Agriculture. “Italians hunt in packs when exporting; they focus on the national brand rather than regional specialisations. This is far less visible in France.”
Missed demand
France also suffered from a certain degree of elitism.
“France missed a European market that is not exclusively high-end,” Abis explains.
Relying on a strong and codified tradition, it failed to adapt to changing consumer demand, as they increasingly crave cheaper, more convenient products and no longer want to spend hours in the kitchen cooking a boeuf bourguignon.
In fruit and vegetables, the country is now running a deficit. Consumption is shifting away from fresh products towards processed ones. “We consume more juice, canned fruit, and compote. To produce these, we need industrial facilities that we do not have in sufficient quantity,” says Raffray.
But building factories takes time and requires long-term planning, something France has struggled with, says Burkhard Schaer, director of the French-German agriculture research agency ECOZEPT. “There is no visibility in France’s conventional agriculture,” he says, referring to shifting agricultural policies in past years, from the Green Deal’s environmental ambitions to the more recent softening of regulations for farmers.
With an ageing workforce, “no measures are in place to ensure generational renewal,” Schaer adds. Productivity gains no longer fully compensate the many farmers who are leaving the sector, particularly in livestock farming.
Equipment is also ageing. Half of France’s agri-food factories have not been modernised since the early 2000s, Abis says.
France’s shortfall has reshaped the single market. The country is now turning into a destination market for neighbouring partners.
Former French President Charles de Gaulle, who famously once asked, “How can you govern a country with 258 varieties of cheese?”, would be dismayed to see that even France’s iconic cheese sector is feeling the strain.
“We are importing more industrial-type cheese from the Netherlands to meet the growing demand for ‘ingredient cheese’ used in processed foods,” Raffray says. Euractiv
--------
UMS Academic Warns of Shift from Natural Forests to Oil Palm Plantations
PALMOILMAGAZINE, SURAKARTA – At first glance, Indonesia’s landscape still appears lush and green. But behind that greenery, a fundamental shift has taken place in the structure and ecological function of its forests — from natural tropical rainforests to industrial timber estates and oil palm plantations. This raises a critical question: does visible greenery truly reflect environmental sustainability?
Aziz Akbar Mukasyaf, Ph.D., a lecturer at the Faculty of Geography at Universitas Muhammadiyah Surakarta (UMS), stated that ecologically, Indonesia should be dominated by tropical rainforests. However, field realities show significant changes in vegetation structure and ecosystem function.
Indonesia lies along the equator, naturally supporting vast tropical rainforest ecosystems stretching from Sumatra to Papua. Yet on Java Island, natural forests have long declined since the colonial era and were replaced by plantation forests such as teak. Today, substantial natural forests remain primarily in Sumatra, Kalimantan, Sulawesi, and Papua, although land-use pressure continues.
Aziz estimates that Indonesia’s natural forest area has declined by more than 50 percent. He emphasized that frequent claims of declining deforestation rates do not necessarily indicate ecological recovery. In many cases, former natural forest areas have been converted into commercial forests, industrial timber plantations, or oil palm estates.
“Administratively, the land may still be recorded as vegetated. But ecologically, there has been a very significant decline in function,” he explained.
Different Meanings of Reforestation
According to Aziz, one core issue lies in differing definitions of reforestation. From a global and ecological science perspective, reforestation means restoring forests close to their natural condition — in terms of vegetation structure, species composition, and ecosystem function.
True reforestation prioritizes native species and encourages natural succession processes, enabling forests to regain their roles as carbon sinks, water regulators, and biodiversity habitats.
In contrast, in Indonesia, reforestation is often interpreted simply as replanting cleared land, without considering ecological suitability. In practice, planting frequently involves economically valuable crops such as oil palm or other industrial species that are not native to the local ecosystem.
“From an ecological standpoint, planting commercial crops on former natural forests cannot be called reforestation. It is a land-use change from a natural ecosystem into a production system,” he stressed.
Oil Palm Is Not a Tree
Aziz also addressed the common perception equating oil palm plantations with forest greening. He clarified that biologically, oil palm differs from trees.
“Oil palm is not a tree anatomically. It is a monocot, without cambium, with fibrous surface roots. Trees, on the other hand, have deeper root systems and can store water more effectively,” he explained.
Equating oil palm with trees, he warned, can mislead policy decisions. If oil palm plantations are classified as forest, natural forest conversion may still be recorded as forested land, despite fundamental ecological change.
He further noted that natural forests are heterogeneous, consisting of diverse species, while oil palm plantations are homogeneous. Heterogeneous forests are more resilient to pests, diseases, and climate change, whereas homogeneous systems are far more vulnerable.
“In a homogeneous system, when one component is disturbed, the impact spreads quickly. Natural forests have built-in buffering mechanisms,” he added.
Call for Forestry Policy Evaluation
Aziz emphasized that Indonesia must manage forests not merely as economic commodities, but as life-support systems. Forests provide oxygen, store carbon, regulate water systems, protect soil, and serve as habitats for biodiversity and local communities.
He urged policymakers to evaluate forestry policies beyond mere land-cover statistics, focusing instead on ecosystem quality and the sustainability of ecological functions. Sustainable development, he argued, requires honesty in defining what constitutes a forest and courage in placing ecological interests on equal footing with economic ones.
“The real question is not only how much land is green, but what kind of green and for what function. If oil palm continues to expand while natural forests shrink, then Indonesia’s environmental sustainability must be seriously questioned,” he concluded. Palm Oil Magazine
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February 17, 2026
Here's the Indonesia-U.S. Trade Deal Set to Be Signed by Prabowo
TEMPO.CO, Jakarta – Indonesia’s President Prabowo Subianto and U.S. President Donald Trump are set to sign the final document of their reciprocal trade negotiations, known as the Agreement on Reciprocal Trade (ART), during Prabowo’s visit to the United States.
Prabowo departed for the United States on Monday, February 16, 2026. During the visit, he is also scheduled to attend the Board of Peace summit on February 19.
“Around that date, the signing of the Agreement on Reciprocal Trade (ART) is planned to take place,” said Haryo Limanseto, spokesperson for Indonesia’s Coordinating Ministry for Economic Affairs.
Details of the Trade Deal
Several substantive points in the negotiation document have been agreed upon and are currently undergoing legal drafting.
Under the framework of the agreement, Indonesia has committed to eliminating import duties on most U.S.-origin products.
In return, the United States will reduce reciprocal tariffs on Indonesian goods from 32 percent to 19 percent.
Washington has also agreed to provide tariff exemptions for several Indonesian export commodities, including crude palm oil (CPO), coffee, and cocoa. The exemptions will apply to products that cannot be domestically produced in the United States.
The substance of the ART agreement was reached following an official meeting between Coordinating Minister for Economic Affairs Airlangga Hartarto and U.S. Trade Representative Ambassador Jamieson Greer on December 22, 2025, in Washington, D.C.
The Agreement on Reciprocal Trade is designed as a mutual trade contract aimed at expanding market access for both countries. In addition to the signing ceremony between Prabowo and Trump, the visit is expected to facilitate a business and investment forum bringing together entrepreneurs from Indonesia and the United States.
According to the State Secretariat’s official website, Prabowo and a limited delegation departed from Halim Perdanakusuma Air Force Base in Jakarta on February 16.
A day earlier, the president held a preparatory meeting at Hambalang with Airlangga, Finance Minister Purbaya Yudhi Sadewa, State Secretary Prasetyo Hadi, and Investment and Industrial Estates Minister Rosan Roeslani. Tempo
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Ghana Targets $600 Million Tree Crop Investment to Diversify Exports
The targeted value chains include cashew, oil palm, rubber, coconut, shea and mango.
The summit will operate under the theme “Sustainable Growth Through Investment in Tree Crops: Resetting and Building Ghana’s Green Economy.” Organizers expect the event to attract more than 6,000 participants, including institutional investors, development finance institutions, agro-industrial operators, policymakers and trade partners from Africa and beyond.
TCDA intends to leverage this attendance to forge partnerships and secure the financial commitments required to develop the value chains. Local media reported that the funding, if secured, should support the expansion of local processing, improve producer incomes and reduce reliance on raw commodity exports.
“The perennial crops sector of Ghana represents one of our most promising opportunities for inclusive economic growth and industrial transformation. GTCIS 2026 is not simply a conference: it is a platform to demonstrate our investment readiness, forge lasting partnerships and build a globally competitive value chain,” said Andy Osei Okrah, Director-General of the TCDA, in comments relayed by Graphic Online.
Between Ambition and Structural Challenges
The call for fresh investment reflects the government’s intention to support growth ambitions across the targeted agricultural value chains and to better harness their potential.
In August 2025, the TCDA estimated that each of the six value chains could generate up to $2 billion in annual export revenue by 2030, provided that stakeholders mobilize adequate investment, expand processing capacity and structure market systems. By comparison, cashew exports, which rank as Ghana’s second-largest agricultural export after cocoa, generated only $237 million in 2024, according to data from the Ghana Statistical Service.
Since the TCDA announced this projection, stakeholders have multiplied development initiatives across several tree crop segments.
On February 6, Accra announced plans to double the national area dedicated to coconut cultivation to 180,000 hectares by 2028 through a high-yield seed distribution program. Authorities aim to increase export revenues from coconut and derived products by 60% to $18.1 million annually and to consolidate Ghana’s position as a continental leader in the segment.
In January, President John Dramani Mahama launched the construction of an industrial hub dedicated to shea processing in Wa, in the Upper West Region. The project seeks to attract investment to add value to shea in the cosmetics, food processing, nutraceutical and pharmaceutical industries, in line with new policy orientations that promote greater value addition.
The oil palm segment has also regained prominence in public policy, as authorities renewed the objective of achieving self-sufficiency by 2025. Under the National Integrated Oil Palm Development Policy for 2026–2032, Accra decided to establish a $500 million financing facility to support private sector investment in the oil palm value chain.
While authorities have not yet announced large-scale development plans for cashew or rubber, stakeholders in both sectors have requested government support to strengthen processing activities. In September, the Rubber Processors Association reported an annual revenue shortfall exceeding $100 million in the rubber value chain, citing low processing levels and weak regulation that fails to incentivize industrial operators. Ecofin Agency
Here's the Indonesia-U.S. Trade Deal Set to Be Signed by Prabowo
TEMPO.CO, Jakarta – Indonesia’s President Prabowo Subianto and U.S. President Donald Trump are set to sign the final document of their reciprocal trade negotiations, known as the Agreement on Reciprocal Trade (ART), during Prabowo’s visit to the United States.
Prabowo departed for the United States on Monday, February 16, 2026. During the visit, he is also scheduled to attend the Board of Peace summit on February 19.
“Around that date, the signing of the Agreement on Reciprocal Trade (ART) is planned to take place,” said Haryo Limanseto, spokesperson for Indonesia’s Coordinating Ministry for Economic Affairs.
Details of the Trade Deal
Several substantive points in the negotiation document have been agreed upon and are currently undergoing legal drafting.
Under the framework of the agreement, Indonesia has committed to eliminating import duties on most U.S.-origin products.
In return, the United States will reduce reciprocal tariffs on Indonesian goods from 32 percent to 19 percent.
Washington has also agreed to provide tariff exemptions for several Indonesian export commodities, including crude palm oil (CPO), coffee, and cocoa. The exemptions will apply to products that cannot be domestically produced in the United States.
The substance of the ART agreement was reached following an official meeting between Coordinating Minister for Economic Affairs Airlangga Hartarto and U.S. Trade Representative Ambassador Jamieson Greer on December 22, 2025, in Washington, D.C.
The Agreement on Reciprocal Trade is designed as a mutual trade contract aimed at expanding market access for both countries. In addition to the signing ceremony between Prabowo and Trump, the visit is expected to facilitate a business and investment forum bringing together entrepreneurs from Indonesia and the United States.
According to the State Secretariat’s official website, Prabowo and a limited delegation departed from Halim Perdanakusuma Air Force Base in Jakarta on February 16.
A day earlier, the president held a preparatory meeting at Hambalang with Airlangga, Finance Minister Purbaya Yudhi Sadewa, State Secretary Prasetyo Hadi, and Investment and Industrial Estates Minister Rosan Roeslani. Tempo
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Ghana Targets $600 Million Tree Crop Investment to Diversify Exports
- The Tree Crops Development Authority targets $600 million in investment commitments, or $100 million for each of six strategic tree crop value chains.
- The authority estimates that each value chain could generate up to $2 billion in annual export revenue by 2030 with adequate investment and processing capacity.
- The government plans a $500 million financing facility for palm oil under its 2026–2032 national development policy.
The targeted value chains include cashew, oil palm, rubber, coconut, shea and mango.
The summit will operate under the theme “Sustainable Growth Through Investment in Tree Crops: Resetting and Building Ghana’s Green Economy.” Organizers expect the event to attract more than 6,000 participants, including institutional investors, development finance institutions, agro-industrial operators, policymakers and trade partners from Africa and beyond.
TCDA intends to leverage this attendance to forge partnerships and secure the financial commitments required to develop the value chains. Local media reported that the funding, if secured, should support the expansion of local processing, improve producer incomes and reduce reliance on raw commodity exports.
“The perennial crops sector of Ghana represents one of our most promising opportunities for inclusive economic growth and industrial transformation. GTCIS 2026 is not simply a conference: it is a platform to demonstrate our investment readiness, forge lasting partnerships and build a globally competitive value chain,” said Andy Osei Okrah, Director-General of the TCDA, in comments relayed by Graphic Online.
Between Ambition and Structural Challenges
The call for fresh investment reflects the government’s intention to support growth ambitions across the targeted agricultural value chains and to better harness their potential.
In August 2025, the TCDA estimated that each of the six value chains could generate up to $2 billion in annual export revenue by 2030, provided that stakeholders mobilize adequate investment, expand processing capacity and structure market systems. By comparison, cashew exports, which rank as Ghana’s second-largest agricultural export after cocoa, generated only $237 million in 2024, according to data from the Ghana Statistical Service.
Since the TCDA announced this projection, stakeholders have multiplied development initiatives across several tree crop segments.
On February 6, Accra announced plans to double the national area dedicated to coconut cultivation to 180,000 hectares by 2028 through a high-yield seed distribution program. Authorities aim to increase export revenues from coconut and derived products by 60% to $18.1 million annually and to consolidate Ghana’s position as a continental leader in the segment.
In January, President John Dramani Mahama launched the construction of an industrial hub dedicated to shea processing in Wa, in the Upper West Region. The project seeks to attract investment to add value to shea in the cosmetics, food processing, nutraceutical and pharmaceutical industries, in line with new policy orientations that promote greater value addition.
The oil palm segment has also regained prominence in public policy, as authorities renewed the objective of achieving self-sufficiency by 2025. Under the National Integrated Oil Palm Development Policy for 2026–2032, Accra decided to establish a $500 million financing facility to support private sector investment in the oil palm value chain.
While authorities have not yet announced large-scale development plans for cashew or rubber, stakeholders in both sectors have requested government support to strengthen processing activities. In September, the Rubber Processors Association reported an annual revenue shortfall exceeding $100 million in the rubber value chain, citing low processing levels and weak regulation that fails to incentivize industrial operators. Ecofin Agency
February 16, 2026
JS-SEZ can unlock RM3.5bil 'green gold' from palm waste
JOHOR BARU: Johor may be drawing billions in data centre investments, but its real high-income opportunity lies in palm oil waste estimated to be worth RM3.5 billion annually, said the Johor-Singapore Special Economic Zone (JS-SEZ) Monitor founder.
The JS-SEZ Monitor is an independent platform that tracks and provides analysis on developments related to the Johor-Singapore Special Economic Zone.
Its founder Nasser Ismail was formerly Iskandar Regional Development Authority strategic communications deputy head, and also had stint with the Tanjung Pelepas Port leading its property and free zone department.
-Advertisement-
Nasser said while hyperscale data centres dominate headlines, their highly automated operations generate limited high-skilled employment for locals compared to the untapped potential of biomethane derived from Palm Oil Mill Effluent (POME).
"Johor is sitting on what I call 'Green Gold'. We treat it like waste, but it is actually misallocated energy inventory," he said.
POME is the organic wastewater produced during palm oil processing.
Malaysia generates 68.83 million tonnes of it annually. When left in open ponds, it decomposes and releases methane (CH4), a greenhouse gas with a Global Warming Potential 80 times stronger than carbon dioxide over a 20-year period.
Malaysia is a signatory to the Global Methane Pledge, an international commitment to cut methane emissions by 30 per cent by 2030. Currently, POME is the country's second-largest methane source.
"Every hour these ponds are left to rot, they release fugitive emissions that undermine our climate commitments," Nasser said.
He argued that instead of viewing POME as a sanitation compliance issue under Environment Department rules, it should be treated as a strategic energy reserve.
A standard 60-tonne-per-hour palm oil mill can generate roughly 140,000 million British thermal units (MMBtu) of energy annually from captured biogas.
When upgraded to Bio-LNG, a liquefied biomethane purified to around 98 per cent methane content, it can fetch about US$26 per MMBtu in Singapore's bunkering market, the world's largest marine fuel hub.
"Nationally, this represents a prize of roughly RM3.5 billion a year," he said.
However, Nasser said domestic policy distortions are preventing mills from investing in high-grade upgrading facilities.
Raw biogas contains only about 60 per cent methane and requires purification to meet international Bio-LNG standards.
Yet domestic natural gas prices remain capped at around RM38 per MMBtu, which does not reflect the premium value of certified green fuel.
"This is the subsidy trap. If a mill invests in world-class upgrading technology, it is forced to sell into a domestic market that does not recognise the green attribute. The internal rate of return simply does not justify the capital expenditure," he said.
He proposed that the JS-SEZ include a dedicated Biomethane Aggregation Framework allowing export parity pricing.
This would mean green biomethane projects designated for export would be exempt from domestic price caps.
Singapore's maritime sector, which is pursuing Net Zero carbon targets, is actively seeking low-carbon marine fuels such as Bio-LNG.
"The JS-SEZ can act as the export valve for the southern peninsula. Instead of drilling for new gas, we just need to stop letting our current resource destroy the atmosphere," Nasser said.
He added that unlike data centres, which he described as "automated real estate", biomethane development would distribute wealth across Johor's rural heartland.
Biomethane plants would be located at palm oil mills in plantation districts, creating demand for Technical and Vocational Education and Training (TVET)-certified workers, including gas processing engineers, safety officers and instrumentation technicians.
"This is how you create a true high-income multiplier. Gas processing creates skilled jobs in Felda settlements and plantation towns, not just in cyber-corridors," he said.
Nasser warned that failure to decarbonise palm oil production could expose Malaysia to trade risks such as the European Union's Carbon Border Adjustment Mechanism, which imposes carbon-related costs on imports.
"If we do not clean up the upstream process, we risk pricing ourselves out of premium markets," he said.
He said Johor could position itself as the national leader under Malaysia's National Energy Transition Roadmap without requiring direct state funding.
"We have the feedstock. We have the technology. We have the international mandate. The only missing piece is policy clarity to stop the rot and start the recovery," he said. NST
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Indonesia to ban palm oil waste exports to drive energy independence
In Indonesia, Antara reported that Indonesia’s President Prabowo Subianto has announced that the government will ban the export of palm oil waste, including used cooking oil, to ensure the resource is utilized for national interests—particularly in advancing energy self-sufficiency.
Speaking at the 2026 National Coordination Meeting of Central and Regional Governments in Sentul, Bogor, West Java, Prabowo emphasized that Indonesia’s vast palm oil potential must be maximized for domestic needs.
“Palm oil waste, including used cooking oil, is material for aviation fuel. So, I am closing it off to other nations. I ban the export of palm oil waste and used cooking oil. It must first serve the people of Indonesia,” he said.
Prabowo described palm oil as a strategic commodity with wide-ranging derivatives, from cooking oil and food products to soap and biodiesel, according to the report. Biofuels Digest
JS-SEZ can unlock RM3.5bil 'green gold' from palm waste
JOHOR BARU: Johor may be drawing billions in data centre investments, but its real high-income opportunity lies in palm oil waste estimated to be worth RM3.5 billion annually, said the Johor-Singapore Special Economic Zone (JS-SEZ) Monitor founder.
The JS-SEZ Monitor is an independent platform that tracks and provides analysis on developments related to the Johor-Singapore Special Economic Zone.
Its founder Nasser Ismail was formerly Iskandar Regional Development Authority strategic communications deputy head, and also had stint with the Tanjung Pelepas Port leading its property and free zone department.
-Advertisement-
Nasser said while hyperscale data centres dominate headlines, their highly automated operations generate limited high-skilled employment for locals compared to the untapped potential of biomethane derived from Palm Oil Mill Effluent (POME).
"Johor is sitting on what I call 'Green Gold'. We treat it like waste, but it is actually misallocated energy inventory," he said.
POME is the organic wastewater produced during palm oil processing.
Malaysia generates 68.83 million tonnes of it annually. When left in open ponds, it decomposes and releases methane (CH4), a greenhouse gas with a Global Warming Potential 80 times stronger than carbon dioxide over a 20-year period.
Malaysia is a signatory to the Global Methane Pledge, an international commitment to cut methane emissions by 30 per cent by 2030. Currently, POME is the country's second-largest methane source.
"Every hour these ponds are left to rot, they release fugitive emissions that undermine our climate commitments," Nasser said.
He argued that instead of viewing POME as a sanitation compliance issue under Environment Department rules, it should be treated as a strategic energy reserve.
A standard 60-tonne-per-hour palm oil mill can generate roughly 140,000 million British thermal units (MMBtu) of energy annually from captured biogas.
When upgraded to Bio-LNG, a liquefied biomethane purified to around 98 per cent methane content, it can fetch about US$26 per MMBtu in Singapore's bunkering market, the world's largest marine fuel hub.
"Nationally, this represents a prize of roughly RM3.5 billion a year," he said.
However, Nasser said domestic policy distortions are preventing mills from investing in high-grade upgrading facilities.
Raw biogas contains only about 60 per cent methane and requires purification to meet international Bio-LNG standards.
Yet domestic natural gas prices remain capped at around RM38 per MMBtu, which does not reflect the premium value of certified green fuel.
"This is the subsidy trap. If a mill invests in world-class upgrading technology, it is forced to sell into a domestic market that does not recognise the green attribute. The internal rate of return simply does not justify the capital expenditure," he said.
He proposed that the JS-SEZ include a dedicated Biomethane Aggregation Framework allowing export parity pricing.
This would mean green biomethane projects designated for export would be exempt from domestic price caps.
Singapore's maritime sector, which is pursuing Net Zero carbon targets, is actively seeking low-carbon marine fuels such as Bio-LNG.
"The JS-SEZ can act as the export valve for the southern peninsula. Instead of drilling for new gas, we just need to stop letting our current resource destroy the atmosphere," Nasser said.
He added that unlike data centres, which he described as "automated real estate", biomethane development would distribute wealth across Johor's rural heartland.
Biomethane plants would be located at palm oil mills in plantation districts, creating demand for Technical and Vocational Education and Training (TVET)-certified workers, including gas processing engineers, safety officers and instrumentation technicians.
"This is how you create a true high-income multiplier. Gas processing creates skilled jobs in Felda settlements and plantation towns, not just in cyber-corridors," he said.
Nasser warned that failure to decarbonise palm oil production could expose Malaysia to trade risks such as the European Union's Carbon Border Adjustment Mechanism, which imposes carbon-related costs on imports.
"If we do not clean up the upstream process, we risk pricing ourselves out of premium markets," he said.
He said Johor could position itself as the national leader under Malaysia's National Energy Transition Roadmap without requiring direct state funding.
"We have the feedstock. We have the technology. We have the international mandate. The only missing piece is policy clarity to stop the rot and start the recovery," he said. NST
--------
Indonesia to ban palm oil waste exports to drive energy independence
In Indonesia, Antara reported that Indonesia’s President Prabowo Subianto has announced that the government will ban the export of palm oil waste, including used cooking oil, to ensure the resource is utilized for national interests—particularly in advancing energy self-sufficiency.
Speaking at the 2026 National Coordination Meeting of Central and Regional Governments in Sentul, Bogor, West Java, Prabowo emphasized that Indonesia’s vast palm oil potential must be maximized for domestic needs.
“Palm oil waste, including used cooking oil, is material for aviation fuel. So, I am closing it off to other nations. I ban the export of palm oil waste and used cooking oil. It must first serve the people of Indonesia,” he said.
Prabowo described palm oil as a strategic commodity with wide-ranging derivatives, from cooking oil and food products to soap and biodiesel, according to the report. Biofuels Digest
February 13, 2026
Malaysian palm oil faces more competition from soybeans
Production of commodity forecast to fall in 2026, but prices unlikely to climb
KUALA LUMPUR -- Malaysia's key export commodity, palm oil, faces growing price competition in core markets such as India, as abundant global soybean supplies keep soybean oil prices low, according to industry experts.
Last year, the Southeast Asian country produced a record 20.28 million metric tons of crude palm oil, according to the Malaysian Palm Oil Board, thanks to favorable weather and improved worker availability at plantations. The industry, which relies heavily on migrant workers, has grappled with labor shortages in recent years.
"With the increase in available labor, the palms have reverted back to their old cycle," Dorab Mistry, a director at India's Godrej International and prominent palm oil trader, said in an interview with Nikkei Asia on the sidelines of a palm oil industry conference in Kuala Lumpur this week.
"This good period of production will last for a few years," he said. "I think we are OK, unless we have an El Nino or something like that."
This year, Malaysia's palm oil output is expected to fall about 1.4% to around 20 million tons due to the biological production cycle, such as tree-resting, according to a forecast by Fastmarkets.
Last year's high yield pushed up Malaysia's palm oil inventories past 3 million tons, levels Mistry described as "negative" for prices, as higher inventories tend to limit price rallies. "Malaysia has to get stocks down to 1.6 or 1.8 million tons," he said, pointing out that demand is flat.
Fresh data from the Malaysian Palm Oil Board show inventories fell 7.7%, month on month, to 2.82 million tons in January, the first decline in 10 months.
In addition, Mistry warned structural pressure from soybeans is capping palm's pricing power. "The world is awash with soybeans," he said, noting that more countries are exporting soybeans to India, in addition to traditional exporters like the U.S., Brazil and Argentina.
Palm oil, which once dominated the Indian market because it was cheaper, has traded at a premium over soybean oil in the past two years, eroding its market share, he said. "Palm always used to win because palm was cheap, but in the last two years, palm has been at a premium, so it has lost market share."
Mistry added that China's exports of soybean oil this year could be higher than Godrej's forecast of 250,000 to 300,000 tons, adding to the global vegetable oil supply and indirectly weighing on palm prices, he said.
At the industry conference, James Fry, chairman of LMC International, a consultancy specializing in agricultural commodities, pointed to soybean oil's growing presence in the global market. "In a true sense, soybean oil is now the world's No. 1 oil in terms of world trade, when you add the oil inside the beans that are crushed," Fry said. Nikkei Asia
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Use Of Sawit Intelligent Management System Reaches 95 Pct Among MPOB License Holders
KUALA LUMPUR, Feb 13 (Bernama) -- More than 95 per cent of Malaysian Palm Oil Board (MPOB) license holders across various categories have actively used the Sawit Intelligent Management System (SIMS).
According to MPOB Director General Datuk Ahmad Parveez Ghulam Kadir, the SIMS system has the potential to function as an integrated data hub for the palm oil industry, enabling more efficient and effective monitoring and traceability across the palm oil supply chain.
“In the meantime, he said GeoSAWIT is currently being upgraded with the latest geospatial equipment and technology for mapping the coverage of the nation’s oil palm plantations.
“The GeoSAWIT control room is located at MPOB Headquarters, and the upgrade work is expected to be completed by mid-2026,” he said in his welcome address at the briefing session on SIMS and the GeoSAWIT Platform to Minister of Plantation and Commodities Datuk Seri Dr Noraini Ahmad on Wednesday.
The GeoSAWIT platform enables spatial data to support land-use monitoring, risk assessment, and evidentiary support for market compliance requirements.
Ahmad Parveez added that GeoSAWIT has been developed with an inclusive, national-scale approach to ensure all categories of producers, especially smallholders, remain part of an increasingly regulated supply chain.
“Today’s briefing will focus on SIMS, covering the traceability module and the fleet management module, which monitors the movement of palm oil using tanker trucks, as well as the use of GeoSAWIT through geospatial technology for verification and traceability of oil palm planting to ensure the national palm oil industry remains competitive, transparent and sustainable,” he added. BERNAMA
Malaysian palm oil faces more competition from soybeans
Production of commodity forecast to fall in 2026, but prices unlikely to climb
KUALA LUMPUR -- Malaysia's key export commodity, palm oil, faces growing price competition in core markets such as India, as abundant global soybean supplies keep soybean oil prices low, according to industry experts.
Last year, the Southeast Asian country produced a record 20.28 million metric tons of crude palm oil, according to the Malaysian Palm Oil Board, thanks to favorable weather and improved worker availability at plantations. The industry, which relies heavily on migrant workers, has grappled with labor shortages in recent years.
"With the increase in available labor, the palms have reverted back to their old cycle," Dorab Mistry, a director at India's Godrej International and prominent palm oil trader, said in an interview with Nikkei Asia on the sidelines of a palm oil industry conference in Kuala Lumpur this week.
"This good period of production will last for a few years," he said. "I think we are OK, unless we have an El Nino or something like that."
This year, Malaysia's palm oil output is expected to fall about 1.4% to around 20 million tons due to the biological production cycle, such as tree-resting, according to a forecast by Fastmarkets.
Last year's high yield pushed up Malaysia's palm oil inventories past 3 million tons, levels Mistry described as "negative" for prices, as higher inventories tend to limit price rallies. "Malaysia has to get stocks down to 1.6 or 1.8 million tons," he said, pointing out that demand is flat.
Fresh data from the Malaysian Palm Oil Board show inventories fell 7.7%, month on month, to 2.82 million tons in January, the first decline in 10 months.
In addition, Mistry warned structural pressure from soybeans is capping palm's pricing power. "The world is awash with soybeans," he said, noting that more countries are exporting soybeans to India, in addition to traditional exporters like the U.S., Brazil and Argentina.
Palm oil, which once dominated the Indian market because it was cheaper, has traded at a premium over soybean oil in the past two years, eroding its market share, he said. "Palm always used to win because palm was cheap, but in the last two years, palm has been at a premium, so it has lost market share."
Mistry added that China's exports of soybean oil this year could be higher than Godrej's forecast of 250,000 to 300,000 tons, adding to the global vegetable oil supply and indirectly weighing on palm prices, he said.
At the industry conference, James Fry, chairman of LMC International, a consultancy specializing in agricultural commodities, pointed to soybean oil's growing presence in the global market. "In a true sense, soybean oil is now the world's No. 1 oil in terms of world trade, when you add the oil inside the beans that are crushed," Fry said. Nikkei Asia
--------
Use Of Sawit Intelligent Management System Reaches 95 Pct Among MPOB License Holders
KUALA LUMPUR, Feb 13 (Bernama) -- More than 95 per cent of Malaysian Palm Oil Board (MPOB) license holders across various categories have actively used the Sawit Intelligent Management System (SIMS).
According to MPOB Director General Datuk Ahmad Parveez Ghulam Kadir, the SIMS system has the potential to function as an integrated data hub for the palm oil industry, enabling more efficient and effective monitoring and traceability across the palm oil supply chain.
“In the meantime, he said GeoSAWIT is currently being upgraded with the latest geospatial equipment and technology for mapping the coverage of the nation’s oil palm plantations.
“The GeoSAWIT control room is located at MPOB Headquarters, and the upgrade work is expected to be completed by mid-2026,” he said in his welcome address at the briefing session on SIMS and the GeoSAWIT Platform to Minister of Plantation and Commodities Datuk Seri Dr Noraini Ahmad on Wednesday.
The GeoSAWIT platform enables spatial data to support land-use monitoring, risk assessment, and evidentiary support for market compliance requirements.
Ahmad Parveez added that GeoSAWIT has been developed with an inclusive, national-scale approach to ensure all categories of producers, especially smallholders, remain part of an increasingly regulated supply chain.
“Today’s briefing will focus on SIMS, covering the traceability module and the fleet management module, which monitors the movement of palm oil using tanker trucks, as well as the use of GeoSAWIT through geospatial technology for verification and traceability of oil palm planting to ensure the national palm oil industry remains competitive, transparent and sustainable,” he added. BERNAMA
February 12, 2026
Palm oil prices fluctuate due to Indonesia’s biofuel policy and global demand
Indonesia’s decision to pause the expansion of its biodiesel program, combined with expected growth in palm oil production in the coming months, is likely to put pressure on prices. However, analysts say strong demand and slowing production growth could limit the downside.
Palm oil output in Southeast Asia, which supplies nearly 90% of the global market, is expected to increase slightly in 2026 due to favorable weather conditions in Indonesia, the top producer, even as production in Malaysia, the second-largest grower, is forecast to decline.
More palm oil is likely to enter the global market as Indonesia has shelved plans to mandate 50% biodiesel blending. Malaysian palm oil futures are expected to trade in a range of 3,800–4,300 ringgit ($968–$1,096) per metric ton through July 2026, barring any major weather disruptions.
Rising demand from India and slower growth in production may support prices. India, the world’s largest edible oil importer, is likely to increase palm oil purchases this year, reducing inventories that had reached multi-month highs in Malaysia. Meanwhile, China’s demand for palm oil is expected to continue declining in 2026 as the country shifts to cheaper alternatives, including canola and soybean oil.
At the same time, Indonesian government raids on palm plantations are expected to reduce output due to lower fertilizer use and insufficient maintenance. Since last year, approximately 4.1 million hectares of plantations have been seized, affecting both major companies and smallholder farmers.
According to the Indonesian Palm Oil Producers Association (GAPKI), Indonesia’s crude palm oil output is expected to grow 2–3% in 2026 after rising 8% to 51.98 million metric tons in 2025. Analysts note that continued government enforcement and control over illegal plantations could limit production growth and help maintain market balance. UKRagroconsult
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Nigeria’s edible oil producers seek protection as import surge threatens local market
Stakeholders across Nigeria’s oil palm, soybean and vegetable oil value chains have warned that a surge in imports, weak border enforcement and policy inconsistency are pushing the sector toward crisis, threatening billions of dollars in investment and millions of rural jobs.
At a press conference on Wednesday convened by Fatai Afolabi, industry leaders stated that the Federal Government’s recent food import adjustments, although aimed at easing consumer prices, are depressing farm-gate prices below production costs and destabilising domestic producers.
In his keynote address, Afolabi said while food price moderation had brought relief to households, “beneath this welcome price moderation lies a more troubling reality for local farmers and agriculture value chain investors.”
He warned that approximately 3,500 rice farmers were contemplating exiting production after incurring estimated losses of N93 billion, adding that similar distress was spreading across the cassava, vegetable oil, and tree crop segments.
“Food security is not solely about ensuring that food is available and affordable today,” Afolabi said. “It is also about safeguarding the capacity of local producers to continue producing tomorrow.”
Emmanuel Ibru, chairman of the Plantation Owners Forum of Nigeria (POFON), said a proliferation of imported vegetable oil late last year had sharply undercut domestic producers.
“You can imagine what the effect has been in the last few months on vegetable oil producers and also down the chain,” he said, noting that commercial palm oil is a key input in vegetable oil refining.
Read also: Oil palm growers to replant 1.5m hectares on rising appetite
Ibru recalled that protective policies under the administration of Olusegun Obasanjo, including duties on crude palm oil and a ban on refined vegetable oil imports, helped revive an industry that had been “almost comatose” in the 1970s and 1980s. Business Today
Palm oil prices fluctuate due to Indonesia’s biofuel policy and global demand
Indonesia’s decision to pause the expansion of its biodiesel program, combined with expected growth in palm oil production in the coming months, is likely to put pressure on prices. However, analysts say strong demand and slowing production growth could limit the downside.
Palm oil output in Southeast Asia, which supplies nearly 90% of the global market, is expected to increase slightly in 2026 due to favorable weather conditions in Indonesia, the top producer, even as production in Malaysia, the second-largest grower, is forecast to decline.
More palm oil is likely to enter the global market as Indonesia has shelved plans to mandate 50% biodiesel blending. Malaysian palm oil futures are expected to trade in a range of 3,800–4,300 ringgit ($968–$1,096) per metric ton through July 2026, barring any major weather disruptions.
Rising demand from India and slower growth in production may support prices. India, the world’s largest edible oil importer, is likely to increase palm oil purchases this year, reducing inventories that had reached multi-month highs in Malaysia. Meanwhile, China’s demand for palm oil is expected to continue declining in 2026 as the country shifts to cheaper alternatives, including canola and soybean oil.
At the same time, Indonesian government raids on palm plantations are expected to reduce output due to lower fertilizer use and insufficient maintenance. Since last year, approximately 4.1 million hectares of plantations have been seized, affecting both major companies and smallholder farmers.
According to the Indonesian Palm Oil Producers Association (GAPKI), Indonesia’s crude palm oil output is expected to grow 2–3% in 2026 after rising 8% to 51.98 million metric tons in 2025. Analysts note that continued government enforcement and control over illegal plantations could limit production growth and help maintain market balance. UKRagroconsult
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Nigeria’s edible oil producers seek protection as import surge threatens local market
Stakeholders across Nigeria’s oil palm, soybean and vegetable oil value chains have warned that a surge in imports, weak border enforcement and policy inconsistency are pushing the sector toward crisis, threatening billions of dollars in investment and millions of rural jobs.
At a press conference on Wednesday convened by Fatai Afolabi, industry leaders stated that the Federal Government’s recent food import adjustments, although aimed at easing consumer prices, are depressing farm-gate prices below production costs and destabilising domestic producers.
In his keynote address, Afolabi said while food price moderation had brought relief to households, “beneath this welcome price moderation lies a more troubling reality for local farmers and agriculture value chain investors.”
He warned that approximately 3,500 rice farmers were contemplating exiting production after incurring estimated losses of N93 billion, adding that similar distress was spreading across the cassava, vegetable oil, and tree crop segments.
“Food security is not solely about ensuring that food is available and affordable today,” Afolabi said. “It is also about safeguarding the capacity of local producers to continue producing tomorrow.”
Emmanuel Ibru, chairman of the Plantation Owners Forum of Nigeria (POFON), said a proliferation of imported vegetable oil late last year had sharply undercut domestic producers.
“You can imagine what the effect has been in the last few months on vegetable oil producers and also down the chain,” he said, noting that commercial palm oil is a key input in vegetable oil refining.
Read also: Oil palm growers to replant 1.5m hectares on rising appetite
Ibru recalled that protective policies under the administration of Olusegun Obasanjo, including duties on crude palm oil and a ban on refined vegetable oil imports, helped revive an industry that had been “almost comatose” in the 1970s and 1980s. Business Today
February 11, 2026
Malaysian Palm oil industry at 'crisis' point as costs rise, productivity stalls
KUALA LUMPUR (Feb 10): Malaysia’s palm oil industry is facing a "crisis" point, weighed down by slowing growth, stagnating yields and declining profitability, SD Guthrie Bhd (KL:SDG) group managing director Mohd Haris Mohd Arshad warned during an industry event on Tuesday (Feb 10).
The increasing strain the industry is under may result in palm oil losing its competitive advantage as the lowest-cost vegetable oil, he told a panel discussion at the 37th Palm & Lauric Oils Price Outlook Conference (POC) 2026.
The sector's decline is largely due to ageing plantations and growing competition from other vegetable oils such as soybean oil, whose global production rate has outpaced palm oil by sixfold in recent years.
“It (the palm oil industry) is sort of stuck between a rock and a very hard place,” Mohd Haris said, as he described an industry caught between escalating domestic costs and tougher global competition.
Domestically, the average replanting rate is around 2% a year, which means many palms remain in the ground beyond their peak productive years. The optimal replanting rate should be closer to 5% to sustain long-term viability, Mohd Haris said.
He also pointed to heavy reliance on foreign labour as a significant structural risk.
To mitigate these challenges, Mohd Haris said the industry should focus on mechanisation.
By automating non-harvesting tasks, such as estate maintenance, fertiliser application and pest control, plantations can cover more land with fewer workers, thereby reducing labour costs and improving efficiency. The Edge
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MPOC chairman warns high CPO prices discourage replanting, risking lower future yields
KUALA LUMPUR (Feb 10): Malaysia’s palm oil sector risks lower yields over time if planters continue to delay replanting ageing trees, despite record crude palm oil (CPO) production in 2025, Malaysian Palm Oil Council (MPOC) chairman Datuk Carl Bek-Nielsen said.
High crude palm oil (CPO) prices have discouraged planters from replanting, as strong margins reduce the incentive to cut down older palms.
“High prices are one of the main reasons for planters' reluctance to replant. When times are good, [planters tend to say], “Why not take one more year?” And one year often turns into two more years. That is why replanting is deferred because prices are good, margins are good, profitability is good — so why destroy that [by cutting down ageing palms]? That’s the problem,” Bek-Nielsen told The Edge at the 37th Palm & Lauric Oils Price Outlook Conference (POC) 2026.
Bek-Nielsen is also CEO and vice chairman of United Plantations Bhd (KL:UTDPLT).
Citing data from the Malaysian Palm Oil Board (MPOB), Bek-Nielsen noted that about 1.7 million hectares, or roughly 30% of Malaysia’s oil palm area, is now 19 years or older, with the share expected to rise to 35%, or more than two million hectares, by 2027.
“The older palms typically deliver lower yields due to missed fruit bunches, higher disease risk and declining stand density, so yield will ultimately come down over time,” he noted.
Bek-Nielsen added that Malaysia has the potential to lift crude palm oil (CPO) production from 20.3 million tonnes to 26 million tonnes, an increase of 5.7 million tonnes, without any deforestation through replanting and improved agricultural practices.
He said this would require replacing lower-yielding, ageing palms with high-quality seed materials, which have a solid track record of high yields on large commercial plantings and enforcing more disciplined management.
“The biggest game changer is replanting with high-yielding seed materials. If you take out those lower-yielding palms and replant with new plant material, this would automatically raise CPO yields per hectare,” he said The Edge
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Malaysia uses EUDR delay to strengthen palm oil traceability, MSPO standards
Malaysia is continuing to expand and refine its national sustainability standard, the Malaysian Sustainable Palm Oil (MSPO) certification, even as the EU Deforestation Regulation (EUDR) faces further delays.
Originally set to take effect in December 2024, the EUDR was first postponed to end-2025 and has now been delayed again. Under the revised timeline, compliance will be required from Dec. 30, 2026 for large and medium operators, and from June 30, 2027 for micro and small enterprises.
Rather than slowing efforts, said Malaysia’s Plantation and Commodities Minister Noraini Ahmad, the extension should be treated as an opportunity to strengthen industry readiness.
In September 2025, the European Union recognized MSPO as a credible standard that can help facilitate compliance with the bloc’s deforestation rules. Currently, about 90% of palm oil estates have obtained MSPO certification, while certification among independent smallholders has reached 85%. Recessary
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UMeWorld pushes Malaysia SAF feedstock facility into industrial phase
A private sector development in SAF supply chains has arrived with UMeWorld Limited advancing its Malaysia sustainable aviation fuel (SAF) feedstock facility into industrial execution.
The project — now being developed by UMeWorld’s wholly owned Malaysian subsidiary, Verdant Sustainable Fuel — addresses a fundamental obstacle for global SAF production: feedstock availability and quality.
Launched in January 2026, the facility will focus on converting difficult‑to‑process waste lipids — such as palm oil mill effluent (POME) and used cooking oil (UCO) — into renewable fuel intermediates that are compatible with existing refinery infrastructure.
This approach is designed to expand the usable feedstock pool for SAF producers, reducing reliance on conventional routes that struggle with high‑acidity inputs and costly refinery modifications.
UMeWorld’s enzymatic conversion technology operates under lower severity conditions than traditional chemical refining, enabling a broader array of waste‑based feedstocks to be processed efficiently and economically. By tackling feedstock constraints, the project aims to make SAF production more scalable and attractive to refineries already equipped with hydroprocessing units, particularly within ReFuelEU Aviation carbon‑intensity compliance frameworks.
The initial plan foresees a 10,000‑tonne per year nameplate capacity, with final site selection slated to occur within 90 days of the announcement. Once permitting and development planning are concluded, construction is expected to begin later in 2026.
Industry observers see this move as crucial because feedstock scarcity and processing challenges have consistently been cited as one of the major bottlenecks limiting SAF growth. By converting problematic waste lipids into refinery‑friendly intermediates, ventures like this could broaden the economic base of SAF production and spur further investment across Southeast Asia and beyond. Biofuels News
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Indonesia arrests 11 for alleged corruption over palm oil exports
JAKARTA, Feb 11 (Reuters) - The Indonesian Attorney General's Office said it had arrested 11 people, including officials from the customs office, for alleged corruption aimed at avoiding mandatory domestic sales of crude palm oil and paying export taxes.
The 11 people arrested included two lower-level officials at regional customs offices in Bali and Riau provinces, an official at the Industry Ministry and eight corporate executives, Anang Supriatna, spokesperson for the Attorney General's Office, said in a statement issued late on Monday. The executives and the companies they work for were not named in the statement.
The suspects are alleged to have classified exports of crude palm oil as byproducts of crude palm oil between 2020 and 2024, with losses to the state estimated at between 10.6 trillion rupiah ($630 million) and 14.3 trillion rupiah ($850 million), Supriatna said in the statement.
"This classification manipulation was carried out with the aim of avoiding the CPO export curb, so that commodities that are essentially CPO could be exported as if they were not CPO and be exempted or relieved from the obligations imposed by the government," Supriatna said.
Indonesia has a Domestic Market Obligation for palm oil that requires exporters to sell a portion of their production to the local market as a prerequisite for obtaining export permits, to secure domestic cooking oil supply and stabilise prices.
It also imposes export levies on palm oil products, with rates for crude palm oil being the highest while refined products incur lower rates.
The three state officials were allegedly receiving kickbacks "to smooth the administrative and supervisory process of exports," Supriatna said without giving further details.
The suspects were accused of violating an anti-corruption article in the country's Criminal Code, under which they could face a maximum sentence of life imprisonment. Reuters
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POSCO International's bet on energy, material, food set to pay off
Analysts expect trade and energy firm to maintain solid earnings
Optimism is growing around POSCO International’s ability to generate meaningful revenue this year from its energy, material and food businesses, thanks to its efforts last year to complete value chains in the three core sectors.
In 2025, the trade and energy subsidiary of POSCO Group posted a record operating profit of 1.165 trillion won ($795 million), keeping its operating profit above 1 trillion won for the third consecutive year.
Securities analysts expect the company to sustain its growth momentum this year, citing its investments into building value chains across the energy, material and food sectors.
“With annual investments of more than 1.5 trillion won, the company is expected to secure solid growth momentum,” Mirae Asset Securities analyst Ryu Je-hyun said. “Aiming to become a platform player, it will aggressively expand assets and streamline operations this year.”
POSCO International’s focus on the three sectors has been attributed to an initiative from POSCO Group Chairman Chang In-hwa.
“The group’s energy business should strengthen its profitability and become the next core business linking the steel and material segments,” Chang said in his New Year’s address. “Through investment in expanding our Indonesian palm oil business, we have also diversified our income sources.”
Chang also called for the exploration of material demand in emerging markets, while emphasizing the importance of research and development of next-generation products. Korea Times
Malaysian Palm oil industry at 'crisis' point as costs rise, productivity stalls
KUALA LUMPUR (Feb 10): Malaysia’s palm oil industry is facing a "crisis" point, weighed down by slowing growth, stagnating yields and declining profitability, SD Guthrie Bhd (KL:SDG) group managing director Mohd Haris Mohd Arshad warned during an industry event on Tuesday (Feb 10).
The increasing strain the industry is under may result in palm oil losing its competitive advantage as the lowest-cost vegetable oil, he told a panel discussion at the 37th Palm & Lauric Oils Price Outlook Conference (POC) 2026.
The sector's decline is largely due to ageing plantations and growing competition from other vegetable oils such as soybean oil, whose global production rate has outpaced palm oil by sixfold in recent years.
“It (the palm oil industry) is sort of stuck between a rock and a very hard place,” Mohd Haris said, as he described an industry caught between escalating domestic costs and tougher global competition.
Domestically, the average replanting rate is around 2% a year, which means many palms remain in the ground beyond their peak productive years. The optimal replanting rate should be closer to 5% to sustain long-term viability, Mohd Haris said.
He also pointed to heavy reliance on foreign labour as a significant structural risk.
To mitigate these challenges, Mohd Haris said the industry should focus on mechanisation.
By automating non-harvesting tasks, such as estate maintenance, fertiliser application and pest control, plantations can cover more land with fewer workers, thereby reducing labour costs and improving efficiency. The Edge
--------
MPOC chairman warns high CPO prices discourage replanting, risking lower future yields
KUALA LUMPUR (Feb 10): Malaysia’s palm oil sector risks lower yields over time if planters continue to delay replanting ageing trees, despite record crude palm oil (CPO) production in 2025, Malaysian Palm Oil Council (MPOC) chairman Datuk Carl Bek-Nielsen said.
High crude palm oil (CPO) prices have discouraged planters from replanting, as strong margins reduce the incentive to cut down older palms.
“High prices are one of the main reasons for planters' reluctance to replant. When times are good, [planters tend to say], “Why not take one more year?” And one year often turns into two more years. That is why replanting is deferred because prices are good, margins are good, profitability is good — so why destroy that [by cutting down ageing palms]? That’s the problem,” Bek-Nielsen told The Edge at the 37th Palm & Lauric Oils Price Outlook Conference (POC) 2026.
Bek-Nielsen is also CEO and vice chairman of United Plantations Bhd (KL:UTDPLT).
Citing data from the Malaysian Palm Oil Board (MPOB), Bek-Nielsen noted that about 1.7 million hectares, or roughly 30% of Malaysia’s oil palm area, is now 19 years or older, with the share expected to rise to 35%, or more than two million hectares, by 2027.
“The older palms typically deliver lower yields due to missed fruit bunches, higher disease risk and declining stand density, so yield will ultimately come down over time,” he noted.
Bek-Nielsen added that Malaysia has the potential to lift crude palm oil (CPO) production from 20.3 million tonnes to 26 million tonnes, an increase of 5.7 million tonnes, without any deforestation through replanting and improved agricultural practices.
He said this would require replacing lower-yielding, ageing palms with high-quality seed materials, which have a solid track record of high yields on large commercial plantings and enforcing more disciplined management.
“The biggest game changer is replanting with high-yielding seed materials. If you take out those lower-yielding palms and replant with new plant material, this would automatically raise CPO yields per hectare,” he said The Edge
--------
Malaysia uses EUDR delay to strengthen palm oil traceability, MSPO standards
Malaysia is continuing to expand and refine its national sustainability standard, the Malaysian Sustainable Palm Oil (MSPO) certification, even as the EU Deforestation Regulation (EUDR) faces further delays.
Originally set to take effect in December 2024, the EUDR was first postponed to end-2025 and has now been delayed again. Under the revised timeline, compliance will be required from Dec. 30, 2026 for large and medium operators, and from June 30, 2027 for micro and small enterprises.
Rather than slowing efforts, said Malaysia’s Plantation and Commodities Minister Noraini Ahmad, the extension should be treated as an opportunity to strengthen industry readiness.
In September 2025, the European Union recognized MSPO as a credible standard that can help facilitate compliance with the bloc’s deforestation rules. Currently, about 90% of palm oil estates have obtained MSPO certification, while certification among independent smallholders has reached 85%. Recessary
--------
UMeWorld pushes Malaysia SAF feedstock facility into industrial phase
A private sector development in SAF supply chains has arrived with UMeWorld Limited advancing its Malaysia sustainable aviation fuel (SAF) feedstock facility into industrial execution.
The project — now being developed by UMeWorld’s wholly owned Malaysian subsidiary, Verdant Sustainable Fuel — addresses a fundamental obstacle for global SAF production: feedstock availability and quality.
Launched in January 2026, the facility will focus on converting difficult‑to‑process waste lipids — such as palm oil mill effluent (POME) and used cooking oil (UCO) — into renewable fuel intermediates that are compatible with existing refinery infrastructure.
This approach is designed to expand the usable feedstock pool for SAF producers, reducing reliance on conventional routes that struggle with high‑acidity inputs and costly refinery modifications.
UMeWorld’s enzymatic conversion technology operates under lower severity conditions than traditional chemical refining, enabling a broader array of waste‑based feedstocks to be processed efficiently and economically. By tackling feedstock constraints, the project aims to make SAF production more scalable and attractive to refineries already equipped with hydroprocessing units, particularly within ReFuelEU Aviation carbon‑intensity compliance frameworks.
The initial plan foresees a 10,000‑tonne per year nameplate capacity, with final site selection slated to occur within 90 days of the announcement. Once permitting and development planning are concluded, construction is expected to begin later in 2026.
Industry observers see this move as crucial because feedstock scarcity and processing challenges have consistently been cited as one of the major bottlenecks limiting SAF growth. By converting problematic waste lipids into refinery‑friendly intermediates, ventures like this could broaden the economic base of SAF production and spur further investment across Southeast Asia and beyond. Biofuels News
--------
Indonesia arrests 11 for alleged corruption over palm oil exports
JAKARTA, Feb 11 (Reuters) - The Indonesian Attorney General's Office said it had arrested 11 people, including officials from the customs office, for alleged corruption aimed at avoiding mandatory domestic sales of crude palm oil and paying export taxes.
The 11 people arrested included two lower-level officials at regional customs offices in Bali and Riau provinces, an official at the Industry Ministry and eight corporate executives, Anang Supriatna, spokesperson for the Attorney General's Office, said in a statement issued late on Monday. The executives and the companies they work for were not named in the statement.
The suspects are alleged to have classified exports of crude palm oil as byproducts of crude palm oil between 2020 and 2024, with losses to the state estimated at between 10.6 trillion rupiah ($630 million) and 14.3 trillion rupiah ($850 million), Supriatna said in the statement.
"This classification manipulation was carried out with the aim of avoiding the CPO export curb, so that commodities that are essentially CPO could be exported as if they were not CPO and be exempted or relieved from the obligations imposed by the government," Supriatna said.
Indonesia has a Domestic Market Obligation for palm oil that requires exporters to sell a portion of their production to the local market as a prerequisite for obtaining export permits, to secure domestic cooking oil supply and stabilise prices.
It also imposes export levies on palm oil products, with rates for crude palm oil being the highest while refined products incur lower rates.
The three state officials were allegedly receiving kickbacks "to smooth the administrative and supervisory process of exports," Supriatna said without giving further details.
The suspects were accused of violating an anti-corruption article in the country's Criminal Code, under which they could face a maximum sentence of life imprisonment. Reuters
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POSCO International's bet on energy, material, food set to pay off
Analysts expect trade and energy firm to maintain solid earnings
Optimism is growing around POSCO International’s ability to generate meaningful revenue this year from its energy, material and food businesses, thanks to its efforts last year to complete value chains in the three core sectors.
In 2025, the trade and energy subsidiary of POSCO Group posted a record operating profit of 1.165 trillion won ($795 million), keeping its operating profit above 1 trillion won for the third consecutive year.
Securities analysts expect the company to sustain its growth momentum this year, citing its investments into building value chains across the energy, material and food sectors.
“With annual investments of more than 1.5 trillion won, the company is expected to secure solid growth momentum,” Mirae Asset Securities analyst Ryu Je-hyun said. “Aiming to become a platform player, it will aggressively expand assets and streamline operations this year.”
POSCO International’s focus on the three sectors has been attributed to an initiative from POSCO Group Chairman Chang In-hwa.
“The group’s energy business should strengthen its profitability and become the next core business linking the steel and material segments,” Chang said in his New Year’s address. “Through investment in expanding our Indonesian palm oil business, we have also diversified our income sources.”
Chang also called for the exploration of material demand in emerging markets, while emphasizing the importance of research and development of next-generation products. Korea Times
February 10, 2026
India says it will maintain multiple sources of energy supply
NEW DELHI, Feb 9 (Reuters) - India plans to maintain multiple sources of energy supply and diversify them when needed as New Delhi looks to ensure consumers receive "adequate energy at the right price through reliable and secure supplies", Indian Foreign Secretary Vikram Misri said on Monday.
Misri was responding to a question at a media briefing seeking clarity on India's position on the purchase of Russian oil after U.S. President Donald Trump said last week that New Delhi had "committed to stop directly or indirectly" importing it.
India's priority is to safeguard the interests of its consumers through an energy policy driven by adequate availability, fair pricing, and reliability of supply, Misri said.
India is neither dependent on any single source for crude oil nor does it "intend to be", importing from a "mix of sources" depending on "objective market conditions", he said, adding that "national interests" guide both the government and Indian energy companies.
Trump last week signed an executive order lifting the punitive 25% tariff on all imports from India over its purchase of Russian oil.
The Kremlin earlier said it saw nothing new in India's announcement that it would diversify its energy sourcing.
India's Russian oil imports slipped in January as refiners sought more alternative barrels under Western sanctions pressure and U.S.-India trade talks, Reuters reported. Reuters
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Indian demand for palm oil to rebound as prices at discount to Chinese soyoil, analysts say
By Bernadette Christina and Ashley Tang
KUALA LUMPUR, Feb 9 (Reuters) - Indian demand for palm oil is set to rebound this year as prices have come down, analysts said on Monday, although competition from Chinese soyoil, an alternative oil, will cap growth.
A surge in Chinese soyoil exports early last year dampened demand for palm oil in India, as consumers switched to using soyoil instead.
However, that led to an excess supply of palm oil which eventually pushed the price of palm oil down below soyoil prices.
Crude palm oil is currently being offered at about $1,165 a metric ton on a cost, insurance and freight basis for March delivery to India, compared with around $1,281 for crude soyoil, the Solvent Extractors' Association of India (SEA) said.
Anilkumar Bagani, commodity research head at Mumbai-based brokerage Sunvin Group, forecast India will import about 8.5 to 9 million tons of palm oil this year. That would be up from 7.6 million tons in 2025, according to SEA figures.
India is the world's biggest importer of palm oil, but Chinese soyoil exports will continue to keep demand for palm oil in check. Reuters
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Indonesia distributes 10.9 trillion rupiah in subsidies for palm oil replanting programme
The scheme is aimed at improving yields from small farmers
[JAKARTA] Indonesia’s Estate Crop Fund (BPDP) has so far distributed 10.9 trillion rupiah (S$823 million) from a fund aimed at encouraging palm oil smallholders to replant and boost yields, an official said on Tuesday (Feb 10).
Indonesia, the world’s top palm oil producer, launched its smallholder replanting programme in late 2017, but take-up of the scheme has been slow because of the initial downturn in production and income for smallholders and complicated administration requirements at the early stage of the scheme.
The scheme is aimed at improving yields from small farmers, who contribute around 40 per cent of Indonesia’s palm oil output.
The fund distributed so far covers an area of around 384,000 hectares (948,885 acres) of smallholder plantations, BPDP official Zaid Burhan Ibrahim told reporters.
Zaid said that there is still around two million hectares of plantation area that could be funded by the replanting programme.
In 2026, the agency expects to distribute funds for around 50,000 hectares of replanting. BPDP collects levies from palm oil exporters and distributes the funds to support key programmes, including replanting and to help meet the country’s mandated requirements for biodiesel in energy production. Zaid said that around 31 trillion rupiah was collected in levies in 2025. Business Times
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Malaysia’s ageing oil palm plantations to hit 2 million hectares by 2027
KUALA LUMPUR - Malaysia’s ageing oil palm plantations are expected to rise to 2 million ha by 2027 from the current level of around 1.7 million ha, an industry official said on Feb 10, putting pressure on output from the world’s second largest producer.
About 35 per cent of Malaysian oil palm plantations will be 19 years or older by 2027, compared to around 30 per cent in 2026, said Datuk Carl Bek-Nielsen, chairman of the Malaysian Palm Oil Council, during an industry conference in Kuala Lumpur on Feb 10.
He also warned that about 800,000ha of the plantations were infected by the ganoderma fungal disease.
“Our yields have plateaued, our yields have stagnated and from a certain degree our yields have also regressed. The palm industry must do more to raise its yield per hectare,” Mr Bek-Nielsen said.
He said he believed the industry could use high yielding planting materials to increase the average yield to 4.5 tonnes of crude palm oil per hectare, up from the current 3.5 tonnes, and bring total output to 26 million tonnes by 2035.
Malaysia produced 20.3 million tonnes of crude palm oil in 2025, according to Malaysian Palm Oil Board data.
The government has allocated RM20 million (S$6.45 million) in 2026 to support automation and mechanisation in oil palm plantation technologies in an effort to boost production, Malaysia’s Plantation and Commodities Minister Noraini Ahmad said earlier at the conference. Straits Times
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Malaysia’s Bio Eneco launches PKS plant in Pahang
Malaysian palm kernel shells (PKS) producer Bio Eneco has launched a new biomass processing plant in Gebeng, Pahang, the firm said on 9 January. The 240,000 t/yr plant will process palm oil waste, mainly PKS.
The plant will support Bio Eneco's export demand from key markets including Japan. Its location in Gebeng, an industrial town, is situated near the Kuantan port. The port has yet to export any shipments of PKS this year but is frequently used for wide range of liquids and minerals including LPG, chemicals, iron ore, steel, and other palm oil products, according to shipping data from Kpler.
This comes after the producer signed an agreement in January to supply 10 PKS shipments to Thai trading firm Berkana Power amounting to around 100,000t this year. Bio Eneco also has similar supply agreements with Japan and Indonesia. Argus Media
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European Commission moves to phase out palm and soy-based biofuels by 2030
The European Commission launched a public consultation on a draft amendment to Delegated Regulation (EU) 2019/807, proposing the gradual exclusion of biofuels derived from palm oil and soybean oil by 2030.
Under the proposal, companies subject to EU renewable energy quotas would no longer be permitted to count biofuels produced from these feedstocks towards their obligations after that date.
The draft regulation outlines a phased reduction in the eligibility of palm- and soy-based biofuels from 2025 onwards, with intermediate thresholds set at 71.4% in 2025, 42.8% in 2027, and 14.3% in 2029, measured as a share of gross final energy consumption. From 2030, rapeseed oil would become the only cultivated biomass oil source eligible for quota compliance.
Several member states, including France, the Netherlands and Germany, have already moved ahead of this timeline by excluding palm oil-based biofuels from their national schemes since 2023.
The proposed exclusion of soybean oil is based on findings published by the European Commission on 20 January in its report to the European Parliament and Council on the global expansion of food and feed crop production (COM(2026)36 final).
The report, prepared by consultancy Guidehouse, assesses changes in global cultivation areas and their impact on high-carbon stock land, including virgin forest regions.
The Commission concludes that both palm oil and soybeans are raw materials associated with a high risk of indirect land-use change (iLUC). As a result, not only soybean oil but also soybean meal is considered economically linked to cultivation expansion and environmental risk.
In light of these developments, stakeholders are encouraged to review the proposal and participate in the European Commission’s consultation process. Biofuels News
India says it will maintain multiple sources of energy supply
NEW DELHI, Feb 9 (Reuters) - India plans to maintain multiple sources of energy supply and diversify them when needed as New Delhi looks to ensure consumers receive "adequate energy at the right price through reliable and secure supplies", Indian Foreign Secretary Vikram Misri said on Monday.
Misri was responding to a question at a media briefing seeking clarity on India's position on the purchase of Russian oil after U.S. President Donald Trump said last week that New Delhi had "committed to stop directly or indirectly" importing it.
India's priority is to safeguard the interests of its consumers through an energy policy driven by adequate availability, fair pricing, and reliability of supply, Misri said.
India is neither dependent on any single source for crude oil nor does it "intend to be", importing from a "mix of sources" depending on "objective market conditions", he said, adding that "national interests" guide both the government and Indian energy companies.
Trump last week signed an executive order lifting the punitive 25% tariff on all imports from India over its purchase of Russian oil.
The Kremlin earlier said it saw nothing new in India's announcement that it would diversify its energy sourcing.
India's Russian oil imports slipped in January as refiners sought more alternative barrels under Western sanctions pressure and U.S.-India trade talks, Reuters reported. Reuters
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Indian demand for palm oil to rebound as prices at discount to Chinese soyoil, analysts say
By Bernadette Christina and Ashley Tang
KUALA LUMPUR, Feb 9 (Reuters) - Indian demand for palm oil is set to rebound this year as prices have come down, analysts said on Monday, although competition from Chinese soyoil, an alternative oil, will cap growth.
A surge in Chinese soyoil exports early last year dampened demand for palm oil in India, as consumers switched to using soyoil instead.
However, that led to an excess supply of palm oil which eventually pushed the price of palm oil down below soyoil prices.
Crude palm oil is currently being offered at about $1,165 a metric ton on a cost, insurance and freight basis for March delivery to India, compared with around $1,281 for crude soyoil, the Solvent Extractors' Association of India (SEA) said.
Anilkumar Bagani, commodity research head at Mumbai-based brokerage Sunvin Group, forecast India will import about 8.5 to 9 million tons of palm oil this year. That would be up from 7.6 million tons in 2025, according to SEA figures.
India is the world's biggest importer of palm oil, but Chinese soyoil exports will continue to keep demand for palm oil in check. Reuters
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Indonesia distributes 10.9 trillion rupiah in subsidies for palm oil replanting programme
The scheme is aimed at improving yields from small farmers
[JAKARTA] Indonesia’s Estate Crop Fund (BPDP) has so far distributed 10.9 trillion rupiah (S$823 million) from a fund aimed at encouraging palm oil smallholders to replant and boost yields, an official said on Tuesday (Feb 10).
Indonesia, the world’s top palm oil producer, launched its smallholder replanting programme in late 2017, but take-up of the scheme has been slow because of the initial downturn in production and income for smallholders and complicated administration requirements at the early stage of the scheme.
The scheme is aimed at improving yields from small farmers, who contribute around 40 per cent of Indonesia’s palm oil output.
The fund distributed so far covers an area of around 384,000 hectares (948,885 acres) of smallholder plantations, BPDP official Zaid Burhan Ibrahim told reporters.
Zaid said that there is still around two million hectares of plantation area that could be funded by the replanting programme.
In 2026, the agency expects to distribute funds for around 50,000 hectares of replanting. BPDP collects levies from palm oil exporters and distributes the funds to support key programmes, including replanting and to help meet the country’s mandated requirements for biodiesel in energy production. Zaid said that around 31 trillion rupiah was collected in levies in 2025. Business Times
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Malaysia’s ageing oil palm plantations to hit 2 million hectares by 2027
KUALA LUMPUR - Malaysia’s ageing oil palm plantations are expected to rise to 2 million ha by 2027 from the current level of around 1.7 million ha, an industry official said on Feb 10, putting pressure on output from the world’s second largest producer.
About 35 per cent of Malaysian oil palm plantations will be 19 years or older by 2027, compared to around 30 per cent in 2026, said Datuk Carl Bek-Nielsen, chairman of the Malaysian Palm Oil Council, during an industry conference in Kuala Lumpur on Feb 10.
He also warned that about 800,000ha of the plantations were infected by the ganoderma fungal disease.
“Our yields have plateaued, our yields have stagnated and from a certain degree our yields have also regressed. The palm industry must do more to raise its yield per hectare,” Mr Bek-Nielsen said.
He said he believed the industry could use high yielding planting materials to increase the average yield to 4.5 tonnes of crude palm oil per hectare, up from the current 3.5 tonnes, and bring total output to 26 million tonnes by 2035.
Malaysia produced 20.3 million tonnes of crude palm oil in 2025, according to Malaysian Palm Oil Board data.
The government has allocated RM20 million (S$6.45 million) in 2026 to support automation and mechanisation in oil palm plantation technologies in an effort to boost production, Malaysia’s Plantation and Commodities Minister Noraini Ahmad said earlier at the conference. Straits Times
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Malaysia’s Bio Eneco launches PKS plant in Pahang
Malaysian palm kernel shells (PKS) producer Bio Eneco has launched a new biomass processing plant in Gebeng, Pahang, the firm said on 9 January. The 240,000 t/yr plant will process palm oil waste, mainly PKS.
The plant will support Bio Eneco's export demand from key markets including Japan. Its location in Gebeng, an industrial town, is situated near the Kuantan port. The port has yet to export any shipments of PKS this year but is frequently used for wide range of liquids and minerals including LPG, chemicals, iron ore, steel, and other palm oil products, according to shipping data from Kpler.
This comes after the producer signed an agreement in January to supply 10 PKS shipments to Thai trading firm Berkana Power amounting to around 100,000t this year. Bio Eneco also has similar supply agreements with Japan and Indonesia. Argus Media
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European Commission moves to phase out palm and soy-based biofuels by 2030
The European Commission launched a public consultation on a draft amendment to Delegated Regulation (EU) 2019/807, proposing the gradual exclusion of biofuels derived from palm oil and soybean oil by 2030.
Under the proposal, companies subject to EU renewable energy quotas would no longer be permitted to count biofuels produced from these feedstocks towards their obligations after that date.
The draft regulation outlines a phased reduction in the eligibility of palm- and soy-based biofuels from 2025 onwards, with intermediate thresholds set at 71.4% in 2025, 42.8% in 2027, and 14.3% in 2029, measured as a share of gross final energy consumption. From 2030, rapeseed oil would become the only cultivated biomass oil source eligible for quota compliance.
Several member states, including France, the Netherlands and Germany, have already moved ahead of this timeline by excluding palm oil-based biofuels from their national schemes since 2023.
The proposed exclusion of soybean oil is based on findings published by the European Commission on 20 January in its report to the European Parliament and Council on the global expansion of food and feed crop production (COM(2026)36 final).
The report, prepared by consultancy Guidehouse, assesses changes in global cultivation areas and their impact on high-carbon stock land, including virgin forest regions.
The Commission concludes that both palm oil and soybeans are raw materials associated with a high risk of indirect land-use change (iLUC). As a result, not only soybean oil but also soybean meal is considered economically linked to cultivation expansion and environmental risk.
In light of these developments, stakeholders are encouraged to review the proposal and participate in the European Commission’s consultation process. Biofuels News
February 08. 2026
India - Malaysia Joint Statement on the occasion of the Official visit by Prime minister of India to Malaysia
Posted On: 08 FEB 2026 11:00AM by PIB Delhi
At the invitation of Prime Minister of Malaysia, His Excellency, Dato’ Seri Anwar Ibrahim, His Excellency, Shri Narendra Modi, Prime Minister of the Republic of India, undertook an official visit to Malaysia from 7 to 8 February 2026. The visit reflected the deep-rooted friendship and enduring people-to-people ties, based on civilizational connections between the two countries. It reaffirmed the shared commitment of the two Leaders to further consolidate and expand the India–Malaysia Comprehensive Strategic Partnership.
Since the establishment of diplomatic relations in 1957, Malaysia and India have built a partnership based on mutual respect and shared values, which was elevated to a Comprehensive Strategic Partnership (CSP) in August 2024.
During the visit, Prime Minister Modi was accorded an official welcoming ceremony at the Perdana Putra Complex, Putrajaya. The Leaders then held official bilateral meetings on 8 February 2026, reaffirming the CSP. The Prime Ministers held extensive and productive discussions in a warm and cordial atmosphere, covering the full spectrum of bilateral relations, including political engagement, defence and security cooperation, maritime cooperation, trade and investment, digital economy, science and technology, energy, agriculture, health, education, culture, tourism, youth exchanges and people-to-people contacts, in addition to regional and global developments of mutual interest. Prime Minister Anwar Ibrahim also hosted an official luncheon in honour of Prime Minister Modi. They also witnessed the exchange of a number of bilateral documents, aimed at further strengthening institutional cooperation. PIB
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Malaysia, India to promote ringgit-rupee use in bilateral trade
PUTRAJAYA (Feb 8): Malaysia and India have agreed to expedite the use of the ringgit and rupee in bilateral trade and investment, said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar said Bank Negara Malaysia and India’s central bank will continue to work closely to promote local currency settlement using the ringgit and rupee, aimed at facilitating more efficient and cost-effective transactions.
“Similarly, (the use of local currency) in the digital connectivity, energy and semiconductor,” he said during a joint press conference with his Indian counterpart Narendra Modi here Sunday.
Modi is on an official visit to Malaysia from Feb 7 until Sunday at Anwar’s invitation, reciprocating the Malaysian prime minister’s official visit to India in August 2024.
Anwar, who is also finance minister, said that Malaysia-India bilateral trade is expected to extend beyond the US$18.59 billion (RM73.4 billion) achieved last year.
He said Malaysia, in the Asean context, stands to benefit if the region could secure more ways and opportunities to collaborate with India.
According to him, it is strategic and critical to advance and enhance relations between India and Malaysia. The two countries, which have enjoyed long-standing relations since 1957, elevated it to a comprehensive strategic partnership in 2024. The Edge
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Anwar reaffirms Malaysia's commitment as reliable sustainable palm oil supplier to India
PUTRAJAYA: Indian Prime Minister Narendra Modi has reaffirmed New Delhi's steadfast commitment to the stability of the Indo-Pacific region, with Asean centrality at its core.
"The Indo-Pacific region is emerging as the growth engine of the world. Along with Asean, we are committed to development, peace and stability in the entire Indo-Pacific region.
"India gives priority to Asean centrality," he said at a joint press conference with Prime Minister Datuk Seri Anwar Ibrahim here today.
In this regard, Modi said India would broaden its relations and cooperation with friendly Asean nations, such as Malaysia.
"We agree that the review of the Asean-India Trade in Goods Agreement (AITIGA) should be completed soon," he said.
He also emphasised the importance of strengthening relations with Malaysia, as well as their shared view on the necessity of reforms to global institutions, particularly in the current global landscape.
"We will continue to support all peace efforts, and our message on terrorism is clear: no double standards, no compromise," he said.
Modi said Malaysia and India share deep connections rooted in cultural heritage and democratic values.
"The relations between India and Malaysia are very special. We are maritime neighbours.
"For centuries, there have been deep and close ties between our people.
"Today, Malaysia is the second-largest country in the world with a population of Indian origin. Our civilisations are linked by shared cultural heritage and democratic values," he noted.
Earlier, the two Prime Ministers held a bilateral meeting and witnessed the exchange of 11 Memoranda of Understanding (MoUs) and other documents covering various sectors of cooperation between the two countries, including a MoU on audio-visual co-production.
The Indian premier expressed confidence that the agreement on audio-visual co-production will bring the two nations even closer through films and music, particularly Tamil films.
Modi was on an official visit to Malaysia from Feb 7 to 8 at the invitation of Anwar. The visit was also to reciprocate Anwar's official visit to India in August 2024. NST
India - Malaysia Joint Statement on the occasion of the Official visit by Prime minister of India to Malaysia
Posted On: 08 FEB 2026 11:00AM by PIB Delhi
At the invitation of Prime Minister of Malaysia, His Excellency, Dato’ Seri Anwar Ibrahim, His Excellency, Shri Narendra Modi, Prime Minister of the Republic of India, undertook an official visit to Malaysia from 7 to 8 February 2026. The visit reflected the deep-rooted friendship and enduring people-to-people ties, based on civilizational connections between the two countries. It reaffirmed the shared commitment of the two Leaders to further consolidate and expand the India–Malaysia Comprehensive Strategic Partnership.
Since the establishment of diplomatic relations in 1957, Malaysia and India have built a partnership based on mutual respect and shared values, which was elevated to a Comprehensive Strategic Partnership (CSP) in August 2024.
During the visit, Prime Minister Modi was accorded an official welcoming ceremony at the Perdana Putra Complex, Putrajaya. The Leaders then held official bilateral meetings on 8 February 2026, reaffirming the CSP. The Prime Ministers held extensive and productive discussions in a warm and cordial atmosphere, covering the full spectrum of bilateral relations, including political engagement, defence and security cooperation, maritime cooperation, trade and investment, digital economy, science and technology, energy, agriculture, health, education, culture, tourism, youth exchanges and people-to-people contacts, in addition to regional and global developments of mutual interest. Prime Minister Anwar Ibrahim also hosted an official luncheon in honour of Prime Minister Modi. They also witnessed the exchange of a number of bilateral documents, aimed at further strengthening institutional cooperation. PIB
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Malaysia, India to promote ringgit-rupee use in bilateral trade
PUTRAJAYA (Feb 8): Malaysia and India have agreed to expedite the use of the ringgit and rupee in bilateral trade and investment, said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar said Bank Negara Malaysia and India’s central bank will continue to work closely to promote local currency settlement using the ringgit and rupee, aimed at facilitating more efficient and cost-effective transactions.
“Similarly, (the use of local currency) in the digital connectivity, energy and semiconductor,” he said during a joint press conference with his Indian counterpart Narendra Modi here Sunday.
Modi is on an official visit to Malaysia from Feb 7 until Sunday at Anwar’s invitation, reciprocating the Malaysian prime minister’s official visit to India in August 2024.
Anwar, who is also finance minister, said that Malaysia-India bilateral trade is expected to extend beyond the US$18.59 billion (RM73.4 billion) achieved last year.
He said Malaysia, in the Asean context, stands to benefit if the region could secure more ways and opportunities to collaborate with India.
According to him, it is strategic and critical to advance and enhance relations between India and Malaysia. The two countries, which have enjoyed long-standing relations since 1957, elevated it to a comprehensive strategic partnership in 2024. The Edge
--------
Anwar reaffirms Malaysia's commitment as reliable sustainable palm oil supplier to India
PUTRAJAYA: Indian Prime Minister Narendra Modi has reaffirmed New Delhi's steadfast commitment to the stability of the Indo-Pacific region, with Asean centrality at its core.
"The Indo-Pacific region is emerging as the growth engine of the world. Along with Asean, we are committed to development, peace and stability in the entire Indo-Pacific region.
"India gives priority to Asean centrality," he said at a joint press conference with Prime Minister Datuk Seri Anwar Ibrahim here today.
In this regard, Modi said India would broaden its relations and cooperation with friendly Asean nations, such as Malaysia.
"We agree that the review of the Asean-India Trade in Goods Agreement (AITIGA) should be completed soon," he said.
He also emphasised the importance of strengthening relations with Malaysia, as well as their shared view on the necessity of reforms to global institutions, particularly in the current global landscape.
"We will continue to support all peace efforts, and our message on terrorism is clear: no double standards, no compromise," he said.
Modi said Malaysia and India share deep connections rooted in cultural heritage and democratic values.
"The relations between India and Malaysia are very special. We are maritime neighbours.
"For centuries, there have been deep and close ties between our people.
"Today, Malaysia is the second-largest country in the world with a population of Indian origin. Our civilisations are linked by shared cultural heritage and democratic values," he noted.
Earlier, the two Prime Ministers held a bilateral meeting and witnessed the exchange of 11 Memoranda of Understanding (MoUs) and other documents covering various sectors of cooperation between the two countries, including a MoU on audio-visual co-production.
The Indian premier expressed confidence that the agreement on audio-visual co-production will bring the two nations even closer through films and music, particularly Tamil films.
Modi was on an official visit to Malaysia from Feb 7 to 8 at the invitation of Anwar. The visit was also to reciprocate Anwar's official visit to India in August 2024. NST
February 07, 2026
Catastrophe brings a reckoning for Sumatra's oil palm plantations
Indonesian island considers future of farms that magnified damage from floods and landslides
PADANG ARO, Indonesia -- Civil service jobs in Indonesia, as in other Asian countries, are relatively secure, but the pay is often not great.
Looking to boost her household income, Delta, a staff member in the office of the regent of South Solok in central Sumatra, leased four hectares of idle land outside of Padang Aro, the regency capital, from an acquaintance and hired a small crew of workers to cultivate oil palm trees there.
"The economic impact has been quite drastic," Delta said, explaining that within a few years of the farm's launch in 2014, income from palm oil harvests had overtaken her government salary and become the main source of funds for her family of three.
Such decisions by companies and Sumatrans like Delta have transformed Indonesia's second-most populous island over the last few decades. Indonesia remains home to Asia's largest total area of natural forest, but millions of hectares on Sumatra and other islands have been cleared for their timber, to grow oil palm or to dig mines.
Development of these resource sectors has significantly boosted incomes for Sumatra's 60 million residents but at great cost to the tropical island's environment.
Flooding and landslides triggered by Cyclone Senyar last November killed 1,200 Sumatrans and displaced more than 1 million from their homes. Hillsides stripped of their natural cover greatly magnified the storm's impact, according to the authorities. Piles of logs left in the highlands for later collection proved a special hazard, blocking up streams and roads as they were swept downslope by floodwaters.
"Without serious action, what happened in Sumatra could be just a preview of similar disasters elsewhere," said Teuku Muhammad Riefky Hasan, a researcher with the Institute for Economic and Social Research at the University of Indonesia.
Indeed, another cyclone brought devastating floods and landslides to Java, Indonesia's most populated island, last month. At least 92 villagers died in a landslide near Bandung, the capital of West Java province. Ineffective development controls again aggravated the damage, observers say.
In the case of Sumatra's disaster, the administration of President Prabowo Subianto has cited unspecified violations of environmental regulations as grounds for revoking business permits held by 28 companies and seizing their assets. Among the six implicated companies in West Sumatra province, which encompasses South Solok, four were engaged in industrial forestry, one in palm oil cultivation and one in biomass fuel production.
"These 28 companies are illegal," Finance Minister Purbaya Yudhi Sadewa said last month. "They had unclear permits and used land in protected forests. Fair action will be taken."
According to State Secretary Prasetyo Hadi, state-owned enterprises will take over the companies' affected operations, as was done last year with some 200,000 hectares of illegally cleared land. "This demonstrates the government's commitment to organizing and regulating natural resource-based economic activities," he said.
While state companies might be expected to operate in a more environmentally sensitive manner, some observers say the government needs to take more drastic action to restore ecosystem balance in places like West Sumatra.
Warning against "simply replacing one group of environmental exploiters with another," Uli Arta Siagian, national forest and plantation campaign manager for environmental group Wahana Lingkungan Hidup Indonesia, said, "The acquisition of land illegally controlled by corporations or other parties should prioritize ecosystem restoration, addressing damage caused by deforestation, land degradation and river basin destruction."
But from the perspective of residents of West Sumatra and neighboring provinces, turning highlands back into wilderness is not a realistic option because of how central these areas have become to their livelihoods.
As of last year, oil palm plantations occupied 25,984 hectares in South Solok, a 570% rise from 2020's 3,874 hectares. Forty percent of the regency's residents now work in the palm oil sector, according to Syamsurizaldi, South Solok's regional secretary. "This has helped sustain consumption despite global economic fluctuations," he told Nikkei Asia.
In Lubuk Malako, a village on the east side of South Solok, a community-owned enterprise manages around 170 hectares of oil palm. It also lends money to residents seeking to develop land themselves for oil palm or other plantation crops.
"We support communities that want to manage idle land by paying wages and offering profit-sharing once production begins," said Suherdian Antoni, director of Madani Lubuk Malako, the village-owned company.
The region's burgeoning palm oil sector has in turn financed improvements to local educational and health care facilities while partially insulating Lubuk Malako from cuts to central government fund transfers made by Prabowo to free up cash for his signature free school meal program. This year, the village has been allocated 74% less funding from Jakarta than in 2025.
"More and more village needs must now be covered by the company's cash flow," Lubuk Malako chief Abdul Reza said.
Recent years have also seen the rapid industrialization of gold mining around South Solok. The regency government recently proposed issuing formal licenses for mining on Bukit Balun, a hill on the west side of South Solok that now swarms with informal operators.
Workers here dig for gold by hand, without proper safety equipment. Miners haul sacks of ore down muddy paths on modified motorcycles -- many without license plates -- to nearby collection points.
"Each sack sells for around 300,000 rupiah ($18), and refining can produce gold worth between 500,000 and 1 million rupiah," a local trader said.
Oil palm plants begin to sprout on recently cleared land in South Solok. Plantation acreage in the regency has grown 570% over the past five years. (Photo by Dimas Ardian)
But observers say that for the benefit of both the environment and their economies, South Solok and other Sumatran regions need to shift their focus from commodity production to processing, trading and manufacturing.
"The prospect of economic transformation in Sumatra is open if regional governments are brave enough to shift their development logic, from simply extracting resources to creating added value and managing risks," said Syafruddin Karimi, a professor of economic development at Andalas University in Padang, the capital of West Sumatra.
At the national level, Joko Widodo, Prabowo's predecessor, focused on strategies to shift from the export of raw minerals toward processing and other value-added industries, achieving particular success with spurring investment in nickel ore refineries.
In Sumatra's case, the authorities could look at areas such as the manufacture of engineered rubber products, turning palm oil into oleochemicals and food-grade ingredients, making specialty food and drink products from coffee and cacao, and using spices to produce higher-margin extracts and essential oils, Karimi said.
"The most sensible forms of downstreaming in Sumatra should be grounded in renewable resources and a landscape-based economy," the professor said. "The island should not simply pursue quantitative commodity expansion through further land clearing."
Tourism development could be another alternative.
South Solok recently opened a new climbing route up Mount Kerinci, Indonesia's tallest active volcano. While the mountain is normally accessed on its opposite side in Jambi province, South Solok's Syamsurizaldi said the regency sees an opportunity to target "tourists seeking a less crowded, more pristine destination."
Officials are also looking to promote visits to the distinctive traditional homes of the Minangkabau people indigenous to the highlands.
However, transport links around West Sumatra make tourism promotion challenging. Only Padang has regular commercial airline service but the provincial capital is more than five hours away from South Solok by road at the best of times.
Now it can take far longer. Many major roads in West Sumatra were damaged by Cyclone Senyar and have yet to be repaired. More broadly, the government has yet to sketch out a plan for the reconstruction of affected communities and mitigating the risk of future disasters.
Karimi said local residents should be enlisted in efforts to improve drainage, reinforce embankments and replant riverside vegetation.
"Residents must be involved in disaster risk mapping, because they are the ones on the ground every day," he said. "Communities can also be encouraged to take on audit roles in post-project monitoring to help ensure long-term safety."
Fahrizal Sanusi, a resident of Agam regency, north of Padang, would welcome reconstruction work. The 43-year-old lost the home he shared with nine relatives when floods swept through in November. No one was injured but they have yet to receive any support to rebuild.
"Our plantation and rice fields were destroyed by the flood," he said, leaving him little option but to move to Padang for work as a hotel cleaner to earn money for the family, though the job is informal. "The income is unstable, and there are no guarantees."
Nikkei Asia
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Zero Waste, All Parts Of Oil Palm Trees Utilized
Oil palm is not just the source of vegetable oil. It is also an integrated bioindustry capable of converting 100% of its biomass into high-value products. From every ton of palm fresh fruit bunches (FFB) only around 22% can be extracted as vegetable oil, while the remaining 78% is biomass, which is often considered waste, despite having economic potential of up to US$ 150-200 per ton¹.
With its zero-waste concept, oil palm is the backbone of a circular economy and a model for future agro-industrial sustainability.
It means that to produce the same amount of vegetable oil, oil palm tree requires 9x less land than soybeans. That is the key to sustainability in an era of land constraints.
Zero Waste concept in oil palm
Zero waste in oil palm means that all biomass from palm plantations and mills is recycled into useful products. Nothing is wasted. This concept aligns with:
Circular Economy – maximizing resource utilization
Biorefinery – integrated biomass processing for various green products
Sustainable Development Goals (SDGs) – specifically SDGs 7, 12, 13, and 15²
Utilization of all parts: A to Z
Oil PALM BIOMASS TRANSFORMATION FLOW
Palm fruit flesh and palm kernel (22% of fresh fruit bunches –FFB)
Processing results:
Crude Palm Oil (CPO) → 200-220 kg per ton FFB
Palm Kernel Oil (PKO) → 40-50 kg per ton FFB
Final Products:
Food Products – cooking oil, margarine, shortening
Toiletries & cosmetics – soap, shampoo, lipstick, cream
Biofuel – biodiesel B30, B40, up to B100
Oleochemical – fatty acid, glycerin, surfactant
Advantages: Oil palm has productivity of 3.8 ton/ha/year, highest in the world—9.5x more efficient than soybean ⁴⁵.
Palm shells (5-7% of FFB)
Potential: Every palm oil mill produces 50-70 kg of palm shells from every ton of FFB
Utilization:
• Boiler fuel – calorific value 4,000-4,500 kcal/kg (equivalent to 60% of coal)
• Biomass power generation – 1 ton of shells → 800-1,000 kWh of electricity
• Environmentally friendly concrete aggregate – gravel replacement, weight reduction 15-20%
• Activated carbon – adsorption capacity up to 1,000 mg/g, for water and industrial filters
• Battery electrodes – lithium-ion anode material research
Environmental Impact: Replacing coal with palm kernel shells reduces CO₂ emissions by up to 2.5 tons per ton of shells⁶.
Empty palm bunches (23% of FFB)
Biggest potential: Every palm oil mill produces 230 kg empty palm fruit bunches (TKKS) from every ton of FFB = 15-20 ton TKKS per hectare per year
TKKS transformation:
Organic fertilizer & compost
Direct application to plantations (mulching) or composted
Reduce need of chemical fertilizer up to 30-40%
Increase land carbon stock up to 15 tons of CO₂e/ha⁷
Bioenergy
Bioethanol – potential 150-200 liter per ton of dry TKKS
Bio-crude oil – via pyrolysis, yield 35-45%
Biogas – potential 200-300 m³ per ton of TKKS
Industrial Material
Bioplastics (PHA/PHB) – 100% biodegradable in 6-12 months
• Pulp & paper – wood-like quality, 40-50% yield
• Paper bags & packaging – alternatives to single-use plastics
• Particleboard & MDF – substitutes for forest wood
Integrated Biorefinery
OPEFB is an ideal raw material for a cascade biorefinery, where a single material is processed in stages to produce multiple products: GAPKI
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Inside Presco, Okomu’s N202bn earnings spree
Nigeria’s biggest palm oil producers, Presco Plc and Okomu Oil Plc, had their best run in 2025, helped by higher Crude Palm Oil (CPO) prices, which rose to $1,007/metric tonnes (MT) from $923/MT; stronger domestic sales; and sustained volumes.
The combined net profit of Presco and Okomu Plc nearly doubled to N201.64 billion as revenue jumped 125 percent to N538.69 billion, signalling strong sales growth amid the global CPO rally.
Despite the strong performance, Presco witnessed a steep rise in finance cost, up 240.99 percent, driven by higher interest expenses on loans and overdrafts as total debt grew by 180.49 percent to support expansion plans, including the acquisition of the Ghana Oil Palm Development Company (GOPDC). On the other hand, finance income surged by 3,467.21 percent to N7.8 billion, driven largely by higher interest.
For Okomu, finance income fell by 20.37 percent to N11.07 billion, specifically due to a 20.38 percent drop in foreign exchange gains following a more stable naira in 2025. Finance costs, however, grew by 31.80 percent to N13.78 billion. This is driven by a 43.54 percent growth in exchange losses tied to the revaluation of foreign-currency-linked liabilities.
“We remain positive on Okomu Oil to maintain solid performance in 2026 supported by higher harvest volumes, improved operational efficiency, and steady demand for palm oil products,” the analysts said.
“Looking ahead, PRESCO is expected to sustain its strong performance, supported by higher production volumes and ongoing contributions from the GOPDC acquisition.
“While global CPO prices are moderating, the combination of scale, operational efficiency, and strategic asset growth should help offset price pressures and maintain healthy margins in the near term.” Business TodayNG
Catastrophe brings a reckoning for Sumatra's oil palm plantations
Indonesian island considers future of farms that magnified damage from floods and landslides
PADANG ARO, Indonesia -- Civil service jobs in Indonesia, as in other Asian countries, are relatively secure, but the pay is often not great.
Looking to boost her household income, Delta, a staff member in the office of the regent of South Solok in central Sumatra, leased four hectares of idle land outside of Padang Aro, the regency capital, from an acquaintance and hired a small crew of workers to cultivate oil palm trees there.
"The economic impact has been quite drastic," Delta said, explaining that within a few years of the farm's launch in 2014, income from palm oil harvests had overtaken her government salary and become the main source of funds for her family of three.
Such decisions by companies and Sumatrans like Delta have transformed Indonesia's second-most populous island over the last few decades. Indonesia remains home to Asia's largest total area of natural forest, but millions of hectares on Sumatra and other islands have been cleared for their timber, to grow oil palm or to dig mines.
Development of these resource sectors has significantly boosted incomes for Sumatra's 60 million residents but at great cost to the tropical island's environment.
Flooding and landslides triggered by Cyclone Senyar last November killed 1,200 Sumatrans and displaced more than 1 million from their homes. Hillsides stripped of their natural cover greatly magnified the storm's impact, according to the authorities. Piles of logs left in the highlands for later collection proved a special hazard, blocking up streams and roads as they were swept downslope by floodwaters.
"Without serious action, what happened in Sumatra could be just a preview of similar disasters elsewhere," said Teuku Muhammad Riefky Hasan, a researcher with the Institute for Economic and Social Research at the University of Indonesia.
Indeed, another cyclone brought devastating floods and landslides to Java, Indonesia's most populated island, last month. At least 92 villagers died in a landslide near Bandung, the capital of West Java province. Ineffective development controls again aggravated the damage, observers say.
In the case of Sumatra's disaster, the administration of President Prabowo Subianto has cited unspecified violations of environmental regulations as grounds for revoking business permits held by 28 companies and seizing their assets. Among the six implicated companies in West Sumatra province, which encompasses South Solok, four were engaged in industrial forestry, one in palm oil cultivation and one in biomass fuel production.
"These 28 companies are illegal," Finance Minister Purbaya Yudhi Sadewa said last month. "They had unclear permits and used land in protected forests. Fair action will be taken."
According to State Secretary Prasetyo Hadi, state-owned enterprises will take over the companies' affected operations, as was done last year with some 200,000 hectares of illegally cleared land. "This demonstrates the government's commitment to organizing and regulating natural resource-based economic activities," he said.
While state companies might be expected to operate in a more environmentally sensitive manner, some observers say the government needs to take more drastic action to restore ecosystem balance in places like West Sumatra.
Warning against "simply replacing one group of environmental exploiters with another," Uli Arta Siagian, national forest and plantation campaign manager for environmental group Wahana Lingkungan Hidup Indonesia, said, "The acquisition of land illegally controlled by corporations or other parties should prioritize ecosystem restoration, addressing damage caused by deforestation, land degradation and river basin destruction."
But from the perspective of residents of West Sumatra and neighboring provinces, turning highlands back into wilderness is not a realistic option because of how central these areas have become to their livelihoods.
As of last year, oil palm plantations occupied 25,984 hectares in South Solok, a 570% rise from 2020's 3,874 hectares. Forty percent of the regency's residents now work in the palm oil sector, according to Syamsurizaldi, South Solok's regional secretary. "This has helped sustain consumption despite global economic fluctuations," he told Nikkei Asia.
In Lubuk Malako, a village on the east side of South Solok, a community-owned enterprise manages around 170 hectares of oil palm. It also lends money to residents seeking to develop land themselves for oil palm or other plantation crops.
"We support communities that want to manage idle land by paying wages and offering profit-sharing once production begins," said Suherdian Antoni, director of Madani Lubuk Malako, the village-owned company.
The region's burgeoning palm oil sector has in turn financed improvements to local educational and health care facilities while partially insulating Lubuk Malako from cuts to central government fund transfers made by Prabowo to free up cash for his signature free school meal program. This year, the village has been allocated 74% less funding from Jakarta than in 2025.
"More and more village needs must now be covered by the company's cash flow," Lubuk Malako chief Abdul Reza said.
Recent years have also seen the rapid industrialization of gold mining around South Solok. The regency government recently proposed issuing formal licenses for mining on Bukit Balun, a hill on the west side of South Solok that now swarms with informal operators.
Workers here dig for gold by hand, without proper safety equipment. Miners haul sacks of ore down muddy paths on modified motorcycles -- many without license plates -- to nearby collection points.
"Each sack sells for around 300,000 rupiah ($18), and refining can produce gold worth between 500,000 and 1 million rupiah," a local trader said.
Oil palm plants begin to sprout on recently cleared land in South Solok. Plantation acreage in the regency has grown 570% over the past five years. (Photo by Dimas Ardian)
But observers say that for the benefit of both the environment and their economies, South Solok and other Sumatran regions need to shift their focus from commodity production to processing, trading and manufacturing.
"The prospect of economic transformation in Sumatra is open if regional governments are brave enough to shift their development logic, from simply extracting resources to creating added value and managing risks," said Syafruddin Karimi, a professor of economic development at Andalas University in Padang, the capital of West Sumatra.
At the national level, Joko Widodo, Prabowo's predecessor, focused on strategies to shift from the export of raw minerals toward processing and other value-added industries, achieving particular success with spurring investment in nickel ore refineries.
In Sumatra's case, the authorities could look at areas such as the manufacture of engineered rubber products, turning palm oil into oleochemicals and food-grade ingredients, making specialty food and drink products from coffee and cacao, and using spices to produce higher-margin extracts and essential oils, Karimi said.
"The most sensible forms of downstreaming in Sumatra should be grounded in renewable resources and a landscape-based economy," the professor said. "The island should not simply pursue quantitative commodity expansion through further land clearing."
Tourism development could be another alternative.
South Solok recently opened a new climbing route up Mount Kerinci, Indonesia's tallest active volcano. While the mountain is normally accessed on its opposite side in Jambi province, South Solok's Syamsurizaldi said the regency sees an opportunity to target "tourists seeking a less crowded, more pristine destination."
Officials are also looking to promote visits to the distinctive traditional homes of the Minangkabau people indigenous to the highlands.
However, transport links around West Sumatra make tourism promotion challenging. Only Padang has regular commercial airline service but the provincial capital is more than five hours away from South Solok by road at the best of times.
Now it can take far longer. Many major roads in West Sumatra were damaged by Cyclone Senyar and have yet to be repaired. More broadly, the government has yet to sketch out a plan for the reconstruction of affected communities and mitigating the risk of future disasters.
Karimi said local residents should be enlisted in efforts to improve drainage, reinforce embankments and replant riverside vegetation.
"Residents must be involved in disaster risk mapping, because they are the ones on the ground every day," he said. "Communities can also be encouraged to take on audit roles in post-project monitoring to help ensure long-term safety."
Fahrizal Sanusi, a resident of Agam regency, north of Padang, would welcome reconstruction work. The 43-year-old lost the home he shared with nine relatives when floods swept through in November. No one was injured but they have yet to receive any support to rebuild.
"Our plantation and rice fields were destroyed by the flood," he said, leaving him little option but to move to Padang for work as a hotel cleaner to earn money for the family, though the job is informal. "The income is unstable, and there are no guarantees."
Nikkei Asia
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Zero Waste, All Parts Of Oil Palm Trees Utilized
Oil palm is not just the source of vegetable oil. It is also an integrated bioindustry capable of converting 100% of its biomass into high-value products. From every ton of palm fresh fruit bunches (FFB) only around 22% can be extracted as vegetable oil, while the remaining 78% is biomass, which is often considered waste, despite having economic potential of up to US$ 150-200 per ton¹.
With its zero-waste concept, oil palm is the backbone of a circular economy and a model for future agro-industrial sustainability.
It means that to produce the same amount of vegetable oil, oil palm tree requires 9x less land than soybeans. That is the key to sustainability in an era of land constraints.
Zero Waste concept in oil palm
Zero waste in oil palm means that all biomass from palm plantations and mills is recycled into useful products. Nothing is wasted. This concept aligns with:
Circular Economy – maximizing resource utilization
Biorefinery – integrated biomass processing for various green products
Sustainable Development Goals (SDGs) – specifically SDGs 7, 12, 13, and 15²
Utilization of all parts: A to Z
Oil PALM BIOMASS TRANSFORMATION FLOW
Palm fruit flesh and palm kernel (22% of fresh fruit bunches –FFB)
Processing results:
Crude Palm Oil (CPO) → 200-220 kg per ton FFB
Palm Kernel Oil (PKO) → 40-50 kg per ton FFB
Final Products:
Food Products – cooking oil, margarine, shortening
Toiletries & cosmetics – soap, shampoo, lipstick, cream
Biofuel – biodiesel B30, B40, up to B100
Oleochemical – fatty acid, glycerin, surfactant
Advantages: Oil palm has productivity of 3.8 ton/ha/year, highest in the world—9.5x more efficient than soybean ⁴⁵.
Palm shells (5-7% of FFB)
Potential: Every palm oil mill produces 50-70 kg of palm shells from every ton of FFB
Utilization:
• Boiler fuel – calorific value 4,000-4,500 kcal/kg (equivalent to 60% of coal)
• Biomass power generation – 1 ton of shells → 800-1,000 kWh of electricity
• Environmentally friendly concrete aggregate – gravel replacement, weight reduction 15-20%
• Activated carbon – adsorption capacity up to 1,000 mg/g, for water and industrial filters
• Battery electrodes – lithium-ion anode material research
Environmental Impact: Replacing coal with palm kernel shells reduces CO₂ emissions by up to 2.5 tons per ton of shells⁶.
Empty palm bunches (23% of FFB)
Biggest potential: Every palm oil mill produces 230 kg empty palm fruit bunches (TKKS) from every ton of FFB = 15-20 ton TKKS per hectare per year
TKKS transformation:
Organic fertilizer & compost
Direct application to plantations (mulching) or composted
Reduce need of chemical fertilizer up to 30-40%
Increase land carbon stock up to 15 tons of CO₂e/ha⁷
Bioenergy
Bioethanol – potential 150-200 liter per ton of dry TKKS
Bio-crude oil – via pyrolysis, yield 35-45%
Biogas – potential 200-300 m³ per ton of TKKS
Industrial Material
Bioplastics (PHA/PHB) – 100% biodegradable in 6-12 months
• Pulp & paper – wood-like quality, 40-50% yield
• Paper bags & packaging – alternatives to single-use plastics
• Particleboard & MDF – substitutes for forest wood
Integrated Biorefinery
OPEFB is an ideal raw material for a cascade biorefinery, where a single material is processed in stages to produce multiple products: GAPKI
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Inside Presco, Okomu’s N202bn earnings spree
Nigeria’s biggest palm oil producers, Presco Plc and Okomu Oil Plc, had their best run in 2025, helped by higher Crude Palm Oil (CPO) prices, which rose to $1,007/metric tonnes (MT) from $923/MT; stronger domestic sales; and sustained volumes.
The combined net profit of Presco and Okomu Plc nearly doubled to N201.64 billion as revenue jumped 125 percent to N538.69 billion, signalling strong sales growth amid the global CPO rally.
Despite the strong performance, Presco witnessed a steep rise in finance cost, up 240.99 percent, driven by higher interest expenses on loans and overdrafts as total debt grew by 180.49 percent to support expansion plans, including the acquisition of the Ghana Oil Palm Development Company (GOPDC). On the other hand, finance income surged by 3,467.21 percent to N7.8 billion, driven largely by higher interest.
For Okomu, finance income fell by 20.37 percent to N11.07 billion, specifically due to a 20.38 percent drop in foreign exchange gains following a more stable naira in 2025. Finance costs, however, grew by 31.80 percent to N13.78 billion. This is driven by a 43.54 percent growth in exchange losses tied to the revaluation of foreign-currency-linked liabilities.
“We remain positive on Okomu Oil to maintain solid performance in 2026 supported by higher harvest volumes, improved operational efficiency, and steady demand for palm oil products,” the analysts said.
“Looking ahead, PRESCO is expected to sustain its strong performance, supported by higher production volumes and ongoing contributions from the GOPDC acquisition.
“While global CPO prices are moderating, the combination of scale, operational efficiency, and strategic asset growth should help offset price pressures and maintain healthy margins in the near term.” Business TodayNG
February 06, 2026
Danantara Indonesia launches natural resources processing projects worth $7 billion
By Reuters
[JAKARTA] Indonesia’s sovereign wealth fund Danantara Indonesia on Friday (Feb 6) launched six projects in the natural resources processing sector valued at US$7 billion, including a green refinery project by state-run Pertamina, the fund’s chief said.
The other projects included construction of alumina and aluminum smelters, an ethanol plant, a palm-oil blended aviation fuel plant, and integrated poultry facilities, said CEO Rosan Roeslani.
The projects are among the government’s 18 priority projects in the natural resources processing sector set to be launched this year with total investment of 618 trillion rupiah (S$46.6 billion).
“The president emphasised the acceleration of downstream projects that have direct impact to the people,” Roeslani said during the launch.
Pertamina’s refinery plant, located in Cilacap, Central Java province, converts used cooking oil to aviation fuel and has produced 3,000 barrels per day, said Emma Sri Martini, the company director.
It is expected to boost its production capacity to 6,000 barrels per day, Martini added. Reuters
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European Commission consults on phasing out high iLUC-risk biofuels by 2030
The European Commission launched a public consultation on a draft amendment to Delegated Regulation (EU) 2019/807, proposing the gradual exclusion of biofuels derived from soybean oil and palm oil by 2030 on 21 January.
Under the proposal, companies subject to EU renewable energy quotas would no longer be permitted to count biodiesel or HVO produced from these feedstocks towards their quota obligations from 2030 onwards.
The draft regulation sets out a phased reduction in eligibility from 2025, with intermediate thresholds of 71.4% in 2025, 42.8% in 2027 and 14.3% in 2029, measured against gross final energy consumption.
Several member states, including France, the Netherlands and Germany, have already implemented restrictions on palm oil-based biofuels ahead of the proposed timetable.
From 2030, rapeseed oil would remain the only cultivated biomass oil source eligible under the framework.
The proposed exclusion of soybean oil follows the European Commission’s report published on 20 January 2026 (COM(2026)36 final), which assesses the global expansion of food and feed crop production.
Based on updated data and analysis conducted by Guidehouse, the report concludes that both palm oil and soybeans present a high risk of indirect land-use change (iLUC), particularly in high-carbon stock areas such as virgin forests.
Stakeholders are encouraged to review the proposal and participate in the Commission’s consultation process.
Biofuels News
Danantara Indonesia launches natural resources processing projects worth $7 billion
By Reuters
[JAKARTA] Indonesia’s sovereign wealth fund Danantara Indonesia on Friday (Feb 6) launched six projects in the natural resources processing sector valued at US$7 billion, including a green refinery project by state-run Pertamina, the fund’s chief said.
The other projects included construction of alumina and aluminum smelters, an ethanol plant, a palm-oil blended aviation fuel plant, and integrated poultry facilities, said CEO Rosan Roeslani.
The projects are among the government’s 18 priority projects in the natural resources processing sector set to be launched this year with total investment of 618 trillion rupiah (S$46.6 billion).
“The president emphasised the acceleration of downstream projects that have direct impact to the people,” Roeslani said during the launch.
Pertamina’s refinery plant, located in Cilacap, Central Java province, converts used cooking oil to aviation fuel and has produced 3,000 barrels per day, said Emma Sri Martini, the company director.
It is expected to boost its production capacity to 6,000 barrels per day, Martini added. Reuters
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European Commission consults on phasing out high iLUC-risk biofuels by 2030
The European Commission launched a public consultation on a draft amendment to Delegated Regulation (EU) 2019/807, proposing the gradual exclusion of biofuels derived from soybean oil and palm oil by 2030 on 21 January.
Under the proposal, companies subject to EU renewable energy quotas would no longer be permitted to count biodiesel or HVO produced from these feedstocks towards their quota obligations from 2030 onwards.
The draft regulation sets out a phased reduction in eligibility from 2025, with intermediate thresholds of 71.4% in 2025, 42.8% in 2027 and 14.3% in 2029, measured against gross final energy consumption.
Several member states, including France, the Netherlands and Germany, have already implemented restrictions on palm oil-based biofuels ahead of the proposed timetable.
From 2030, rapeseed oil would remain the only cultivated biomass oil source eligible under the framework.
The proposed exclusion of soybean oil follows the European Commission’s report published on 20 January 2026 (COM(2026)36 final), which assesses the global expansion of food and feed crop production.
Based on updated data and analysis conducted by Guidehouse, the report concludes that both palm oil and soybeans present a high risk of indirect land-use change (iLUC), particularly in high-carbon stock areas such as virgin forests.
Stakeholders are encouraged to review the proposal and participate in the Commission’s consultation process.
Biofuels News
February 05. 2026
Indonesia to raise mandatory share of bioethanol in gasoline to 10% by 2028, official says
By Reuters
JAKARTA, Feb 5 (Reuters) - Indonesia plans to impose a mandatory bioethanol content level of 10% for gasoline in 2028, energy ministry official Tri Winarno said on Thursday.
Indonesia is aiming to expand the use of biofuels made from palm oil and sugar cane to reduce imports and become more energy-self sufficient.
However, ethanol supply constraints have forced it to delay plans to raise the mandatory bioethanol content for gasoline.
Previously, the energy ministry said the mandatory bioethanol content level of 10% would be introduced in 2027 but that has now been pushed back to a year later.
"To reduce gasoline imports, the government has set a mandatory bioethanol target of 5% by 2025 which will increase to 10% by 2028," Winarno told an energy seminar.
Indonesia did not meet the 2025 target because ethanol supplies were insufficient.
Indonesia plans to produce 0.80 million kilolitres of bioethanol by 2028, energy ministry data showed, with national gasoline demand at 39.9 million kilolitres.
The government will introduce a number of measures ahead of the implementation, including improvements to the quality of gasoline as the base fuel, increases in infrastructural capacity and the diversification of feedstocks, Winarno said.
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Agribiomass ‘part of the solution’ for green energy
Agricultural residues can become "part of the solution" for green energy as demand for biogenic energy grows and sources of easily-available biomass remain limited, delegates heard at this week's Argus Biomass AsiaConference in Singapore.
A push to replace fossil fuels used to make heat and materials is spurring global demand for biomass, with Europe moving away from biomass-fired power generation and towards biomass-derived biofuels and value-added products, said Jens Wolf, founder of consultancy Voksigrene.
Asian biomass consumption remains focused on industrial power and heat.
Industrial users require large credible suppliers, but only limited volumes of woody biomass are available and the agricultural biomass market is maturing, Wolf said.
Malaysia-based Raw Energy plans to start commissioning hybrid tropical grass (HTG) pellets from napier grass near Bintulu in Sarawak state in the near future. The company grows napier grass on 1,000 hectares (ha) or 10km², with a 40,000ha land bank for expansion, Raw Energy chief operating officer Hector Ingram said.
Raw Energy's first project will have the capacity to produce 150-180 t/yr of bone-dry pellets. The firm aims to scale up HTG pellet output by building a factory to process up to 20,000ha of napier grass that would eventually meet demand from large-scale consumers.
Raw Energy was able to overcome logistical challenges by positioning its facilities near a river, along which barges can move the supply. It has secured Green Gold Label (GGL) and Sustainability and Carbon Certification (ISCC) certifications in the EU, allowing it to trade to Europe, Ingram said. Argus Media
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Malaysia plans to expand use of biofuel at airport in Kuala Lumpur
This project is part of Malaysia's efforts to promote the use of biofuel and reduce dependence on fossil fuels in the transport sector
According to data released by shipping inspection agency SGS, Malaysia’s palm oil exports from January 1 to 31 are expected to total 944,000 tonnes, a 5.58% decrease compared to the same period last month, when exports totaled over 1 million tonnes.
The agency notes that this indicates weakening international demand and could lead to a relative oversupply in the domestic market, putting downward pressure on palm oil spot prices.
Meanwhile, according to data released by the Central Bureau of Statistics Indonesia, Indonesia’s palm oil exports continue to show strong growth in 2025, reaching an annual value of US$24.42 billion, up 21.83% from the previous year; the export volume was 23.61 million tonnes, an increase of 9.09% compared to last year.
The increase in exports reflects expanded production, but does not account for the simultaneous increase in demand and the growing risk of oversupply.
Earlier, it was reported that Malaysia’s palm oil stocks increased by 7.58% in December to 3.05 million tonnes, reaching their highest level in seven years.
For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp. UKR Agra Consult
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Oil palm plantations, biodiversity conservation can go hand in hand: MPOGCF
KUALA LUMPUR: The presence of oil palm plantations in Malaysia does not threaten orangutan populations, as the species has shown a clear ability to adapt and survive within plantation landscapes, according to Malaysian Palm Oil Green Conservation Foundation (MPOGCF) general manager Hairulazim Mahmud.
He said claims that oil palm cultivation destroys orangutan habitats have long been amplified by international non-governmental organisations (NGOs) through anti-palm oil campaigns in Europe, negatively affecting the local and global palm oil industry.
However, Hairulazim said scientific studies paint a different picture, showing that orangutans in Malaysia not only use plantations as movement corridors but also build nests and forage for food in these areas.
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"Beyond local studies, research by international NGOs such as HUTAN shows that orangutans in Sabah have begun assimilating into oil palm landscapes," he told Bernama, citing drone and helicopter surveys that detected orangutan nests woven from palm fronds within plantations.
He said that similar patterns are seen with elephants, which often enter plantations during replanting seasons as palm shoots are a favoured food source and the scent of felled palms can be detected by elephants from distances of up to 18 kilometres.
Such encounters are usually managed with monitoring by plantation operators, he said, while conflicts are addressed through safe and ethical relocation methods guided by authorities, including MPOGCF.
The foundation also works with the London-based Earthworm Foundation to train smallholders in Johor to use drones to track elephant movements and mitigate conflicts.
Hairulazim said these examples demonstrate that biodiversity conservation and agricultural activities can coexist if properly managed.
He highlighted several MPOGCF conservation initiatives, including the Lower Kawag Orangutan Habitat Restoration Project in Sabah, which involves restoring 2,500 hectares of forest, planting native tree species and engaging local communities to improve livelihoods.
Other efforts include projects under the Central Forest Spine initiative in Kelantan to reconnect fragmented forests in Peninsular Malaysia, as well as wildlife corridors, satellite collaring of elephants, early warning systems for smallholders and biodiversity-friendly plantation practices.
While acknowledging that oil palm expansion in the 1980s involved deforestation, Hairulazim said such practices are no longer permitted, with Malaysia maintaining more than 50 per cent forest cover.
The industry is now governed by over 60 laws and regulations, including mandatory compliance with the Malaysian Sustainable Palm Oil (MSPO) certification.
He said MSPO certification is required for all smallholders, estates and mills exporting palm oil, ensuring production does not involve deforestation or threaten wildlife.
"To obtain this certificate, farmers must comply with strict conditions, including no more deforestation for oil palm plantations and preserving High Conservation Value (HCV) Areas so that biodiversity continues to be preserved," he said, noting that MSPO is recognised by the European Union (EU) as it is in line with the European Union Deforestation Regulation (EUDR).
Hairulazim said that the palm oil industry contributes more than three per cent to Malaysia's gross domestic product and generates over RM100 billion in annual exports, underscoring its commitment to sustainability.
MPOGCF also participates in more than 20 local and international exhibitions and conferences, including the International Union for Conservation of Nature (IUCN) Congress and UN climate conferences, to share research findings and engage global stakeholders.
"We are currently applying for membership in the IUCN because it is starting to care about palm oil, and slowly it is becoming clear that palm oil is no longer an enemy of the environment. They have also issued guidelines on how the palm oil industry can be biodiversity-friendly. When we become members, we can share our research stories at the IUCN congress," he said.
He added that MPOGCF also plans to recognise oil palm plantations that demonstrate best practices in biodiversity management, conservation and sustainable operations. NST
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Improved access to social protection and safe work sought for Thailand’s agricultural workers
Efforts to expand access to employment-injury protection and strengthen workplace safety in agriculture are helping reduce risks for workers while supporting resilient businesses and supply chains in Thailand.
CHONBURI, Thailand (ILO News) – Employers, workers and provincial partners are working together to help improve access to the Worker’s Compensation Fund (WCF) and strengthen workplace safety in Thailand’s agriculture sector.
A workshop held in Chonburi on 4 February 2026 organised by the International Labour Organization (ILO) and the Employers’ Confederation of Thailand (ECOT) sought to strengthen understanding of the Worker’s Compensation Act B.E. 2537 (1994) to widen WCF coverage. It also helped identify prevention measures to reduce exposure to common hazards in agricultural work.
Taking part were 50 participants, including employers and workers from the rubber, palm oil, cassava and pineapple sectors. They were joined by representatives of the Chonburi Provincial Office of Labour Protection and Welfare and the Chonburi Provincial Social Security Office.
Safe work and effective injury protection are critical to the future of Thailand’s agriculture sector, as labour shortages an ageing workforce and reliance on migrant labour increase risks for workers and employers alike. Migrant workers also commonly face heightened occupational risks and limited access to social protection.
Speaking at the event, Siriwan Romchatthong, Secretary-General of ECOT said, “Social protection is fundamental to ensuring quality living and working conditions for workers and for the long-term sustainability of the agriculture sector. ECOT recognizes the importance of raising awareness among employers and migrant workers in agriculture regarding their access to the Worker’s Compensation Fund, which can help protect workers while supporting more stable, responsible and productive workplaces.”
Adding the provincial perspective, Chaerdchak Aun-kha, Director of the Chonburi Provincial Office of Labour Protection and Welfare, underlined the local impact, “With exposure to hazards such as machinery, chemicals and long working hours, strengthening preventive measures and compliance with labour standards can reduce injuries and illness and improve working conditions. This benefits not only businesses but also the provincial and national economy.”
Representing the Chonburi Provincial Social Security Office, Rungtiwa Thongsuknok noted that feedback from employers and migrant workers on practical challenges and limitations in compliance and access will help the Social Security Office better understand on-the-ground realities and contribute to strengthening implementation and policy responses going forward.
Also speaking at the event, Rebecca Napier-Moore, ILO Technical Officer, highlighted the global and national significance of Thailand’s agricultural sector: “Agriculture employs one-third of the Thai labour force. Good working conditions are needed to ensure the large number of workers in the sector are valued and have rights like any other worker.”
Thailand is a major destination country for migrant workers in South-East Asia, where approximately 3.8 million documented migrant workers from Myanmar, Lao PDR and Cambodia live and work. Over one million are employed in agriculture, which contributes up to 8.6 per cent of the country’s GDP, with an export value of US$51 billion. Migrant workers in the informal agricultural economy remain largely excluded from labour and social protection and often face low wages, excessive working hours, occupational safety and health risks and limited access to the related social security schemes.
The “Social Protection Workshop for Employers and Migrant Workers in the Agriculture Sector” was co-organized by ECOT and the ILO through its Japan-funded Responsible and Inclusive Supply Chains for Migrant Workers in Thailand (RISC-Migrant) project and the Migrant Advocacy for Rights (MARs) project. ILO
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Sustainable Palm Oil: A Fatamorgana?
PALMOILMAGAZINE, JAKARTA — Imagine being stranded in the desert. Your mouth is dry, your head light, your steps unsteady. Then, in the distance, you see water, palm trees, a pool, shade. You walk toward it, faster now, certain that relief is near. But as you approach, it dissolves. It was a fatamorgana, a mirage so convincing it looks real, yet never materializes. For many producing countries, local communities, and even regulators, this is what “sustainable palm oil” increasingly feels like.
A promise that always stays just out of reach
For years, sustainability in palm oil has been presented as an achievable destination. Follow the rules. Meet the criteria. Pass the audit. Tick the boxes. The industry, we are told, can grow while protecting forests, respecting people, and complying with the law.
The promise is seductive because it suggests that complexity can be managed through procedures. That deep political and ecological problems can be solved through technical systems. That the market, if given the right tools, will regulate itself.
And yet, when you walk closer, when you leave conference halls and dashboards and look at the ground itself, the promise often fades. Deforestation still occurs. Land conflicts remain unresolved for years. Plantations continue to operate in legally contested areas.
Smallholders struggle to survive while being asked to comply with ever more detailed requirements. The oasis looks real: from far away.
When sustainability becomes a narrative, not an outcome
Sustainability frameworks have undoubtedly changed behavior. Some practices improved. Some fires were prevented. Some forests were spared. These gains should not be dismissed. But over time, sustainability also became something else: a narrative of reassurance.
Reassurance for consumers anxious about environmental damage.
Reassurance for investors managing reputational risk.
Reassurance for governments that prefer technical fixes over structural reform.
The danger of narratives is not that they are false, but that they can become self-contained. Success is measured by compliance with the system, not by what actually happens beyond it. When sustainability is judged by paperwork rather than lived reality, the mirage strengthens.
The problem sustainability could not absorb
The most uncomfortable moments arrive when sustainability meets power. Recent years have shown that even in sectors wrapped in sustainability language, basic governance failures persist. Corruption cases linked to market access. Court decisions questioned and reversed. Large-scale enforcement actions revealing plantations operating in areas they should never have entered.
These are not side issues. They strike at the core of what sustainability claims to represent.
You cannot meaningfully speak of sustainability where legality itself is unresolved. You cannot audit your way around weak rule of law. You cannot label away structural incentives that reward expansion, rent-seeking, or silence.
Yet sustainability systems were often asked to do exactly that: to compensate for governance gaps they were never designed to fix.
When the market changes the rules
Now, the global market is shifting again. Major consuming regions are no longer satisfied with assurances. They demand proof. Coordinates. Evidence. Legal clarity down to the plot of land. The burden of risk is pushed ever further upstream, toward producers and farmers who had little role in designing the original systems.
This moment is revealing. It suggests an implicit admission that earlier approaches were not enough. That voluntary mechanisms soothed concerns but did not eliminate them. That the oasis many believed in was, at least in part, an optical effect.
For those on the ground, the message feels contradictory: first, “Follow these systems.” then, “These systems are insufficient.” The traveler keeps walking, still thirsty.
The quiet cost of the mirage
The greatest cost of a fatamorgana is not disappointment. It is delay. As long as the oasis appears reachable, people keep moving toward it. They do not look for other routes. They do not question the map. They invest time, money, and trust into a direction that may never deliver water.
In palm oil, this delay has consequences. Forests continue to shrink at the margins. Conflicts harden as communities wait for resolution that never comes. Smallholders are asked to meet standards without being given the security needed to do so.
Meanwhile, the story of sustainability remains intact, polished, repeated, and exported.
A harder question we avoid asking
None of this means sustainability should be abandoned. That would be reckless. But it does mean the conversation needs to mature. Sustainability cannot remain a substitute for governance. It cannot be reduced to a label that absorbs contradictions. It cannot continue pretending that technical systems alone can correct political realities.
So the question is no longer whether palm oil can be sustainable in theory. The question is more uncomfortable and more honest: Is sustainable palm oil, as it is practiced today, a real destination? Or is it a fatamorgana, convincing from a distance, comforting to believe in, but structurally unable to quench the thirst it promises to satisfy?
If the answer is the latter, then the task ahead is not to polish the mirage but to finally change the terrain that creates it. (*)
Author: Dr. M. Windrawan Inantha, Doctor in Sustainable Development Management. Strategic Advisor for Sustainable Development. CECT Sustainability, Universitas Trisakti. Palm Oil Magazine
Indonesia to raise mandatory share of bioethanol in gasoline to 10% by 2028, official says
By Reuters
JAKARTA, Feb 5 (Reuters) - Indonesia plans to impose a mandatory bioethanol content level of 10% for gasoline in 2028, energy ministry official Tri Winarno said on Thursday.
Indonesia is aiming to expand the use of biofuels made from palm oil and sugar cane to reduce imports and become more energy-self sufficient.
However, ethanol supply constraints have forced it to delay plans to raise the mandatory bioethanol content for gasoline.
Previously, the energy ministry said the mandatory bioethanol content level of 10% would be introduced in 2027 but that has now been pushed back to a year later.
"To reduce gasoline imports, the government has set a mandatory bioethanol target of 5% by 2025 which will increase to 10% by 2028," Winarno told an energy seminar.
Indonesia did not meet the 2025 target because ethanol supplies were insufficient.
Indonesia plans to produce 0.80 million kilolitres of bioethanol by 2028, energy ministry data showed, with national gasoline demand at 39.9 million kilolitres.
The government will introduce a number of measures ahead of the implementation, including improvements to the quality of gasoline as the base fuel, increases in infrastructural capacity and the diversification of feedstocks, Winarno said.
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Agribiomass ‘part of the solution’ for green energy
Agricultural residues can become "part of the solution" for green energy as demand for biogenic energy grows and sources of easily-available biomass remain limited, delegates heard at this week's Argus Biomass AsiaConference in Singapore.
A push to replace fossil fuels used to make heat and materials is spurring global demand for biomass, with Europe moving away from biomass-fired power generation and towards biomass-derived biofuels and value-added products, said Jens Wolf, founder of consultancy Voksigrene.
Asian biomass consumption remains focused on industrial power and heat.
Industrial users require large credible suppliers, but only limited volumes of woody biomass are available and the agricultural biomass market is maturing, Wolf said.
Malaysia-based Raw Energy plans to start commissioning hybrid tropical grass (HTG) pellets from napier grass near Bintulu in Sarawak state in the near future. The company grows napier grass on 1,000 hectares (ha) or 10km², with a 40,000ha land bank for expansion, Raw Energy chief operating officer Hector Ingram said.
Raw Energy's first project will have the capacity to produce 150-180 t/yr of bone-dry pellets. The firm aims to scale up HTG pellet output by building a factory to process up to 20,000ha of napier grass that would eventually meet demand from large-scale consumers.
Raw Energy was able to overcome logistical challenges by positioning its facilities near a river, along which barges can move the supply. It has secured Green Gold Label (GGL) and Sustainability and Carbon Certification (ISCC) certifications in the EU, allowing it to trade to Europe, Ingram said. Argus Media
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Malaysia plans to expand use of biofuel at airport in Kuala Lumpur
This project is part of Malaysia's efforts to promote the use of biofuel and reduce dependence on fossil fuels in the transport sector
According to data released by shipping inspection agency SGS, Malaysia’s palm oil exports from January 1 to 31 are expected to total 944,000 tonnes, a 5.58% decrease compared to the same period last month, when exports totaled over 1 million tonnes.
The agency notes that this indicates weakening international demand and could lead to a relative oversupply in the domestic market, putting downward pressure on palm oil spot prices.
Meanwhile, according to data released by the Central Bureau of Statistics Indonesia, Indonesia’s palm oil exports continue to show strong growth in 2025, reaching an annual value of US$24.42 billion, up 21.83% from the previous year; the export volume was 23.61 million tonnes, an increase of 9.09% compared to last year.
The increase in exports reflects expanded production, but does not account for the simultaneous increase in demand and the growing risk of oversupply.
Earlier, it was reported that Malaysia’s palm oil stocks increased by 7.58% in December to 3.05 million tonnes, reaching their highest level in seven years.
For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp. UKR Agra Consult
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Oil palm plantations, biodiversity conservation can go hand in hand: MPOGCF
KUALA LUMPUR: The presence of oil palm plantations in Malaysia does not threaten orangutan populations, as the species has shown a clear ability to adapt and survive within plantation landscapes, according to Malaysian Palm Oil Green Conservation Foundation (MPOGCF) general manager Hairulazim Mahmud.
He said claims that oil palm cultivation destroys orangutan habitats have long been amplified by international non-governmental organisations (NGOs) through anti-palm oil campaigns in Europe, negatively affecting the local and global palm oil industry.
However, Hairulazim said scientific studies paint a different picture, showing that orangutans in Malaysia not only use plantations as movement corridors but also build nests and forage for food in these areas.
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"Beyond local studies, research by international NGOs such as HUTAN shows that orangutans in Sabah have begun assimilating into oil palm landscapes," he told Bernama, citing drone and helicopter surveys that detected orangutan nests woven from palm fronds within plantations.
He said that similar patterns are seen with elephants, which often enter plantations during replanting seasons as palm shoots are a favoured food source and the scent of felled palms can be detected by elephants from distances of up to 18 kilometres.
Such encounters are usually managed with monitoring by plantation operators, he said, while conflicts are addressed through safe and ethical relocation methods guided by authorities, including MPOGCF.
The foundation also works with the London-based Earthworm Foundation to train smallholders in Johor to use drones to track elephant movements and mitigate conflicts.
Hairulazim said these examples demonstrate that biodiversity conservation and agricultural activities can coexist if properly managed.
He highlighted several MPOGCF conservation initiatives, including the Lower Kawag Orangutan Habitat Restoration Project in Sabah, which involves restoring 2,500 hectares of forest, planting native tree species and engaging local communities to improve livelihoods.
Other efforts include projects under the Central Forest Spine initiative in Kelantan to reconnect fragmented forests in Peninsular Malaysia, as well as wildlife corridors, satellite collaring of elephants, early warning systems for smallholders and biodiversity-friendly plantation practices.
While acknowledging that oil palm expansion in the 1980s involved deforestation, Hairulazim said such practices are no longer permitted, with Malaysia maintaining more than 50 per cent forest cover.
The industry is now governed by over 60 laws and regulations, including mandatory compliance with the Malaysian Sustainable Palm Oil (MSPO) certification.
He said MSPO certification is required for all smallholders, estates and mills exporting palm oil, ensuring production does not involve deforestation or threaten wildlife.
"To obtain this certificate, farmers must comply with strict conditions, including no more deforestation for oil palm plantations and preserving High Conservation Value (HCV) Areas so that biodiversity continues to be preserved," he said, noting that MSPO is recognised by the European Union (EU) as it is in line with the European Union Deforestation Regulation (EUDR).
Hairulazim said that the palm oil industry contributes more than three per cent to Malaysia's gross domestic product and generates over RM100 billion in annual exports, underscoring its commitment to sustainability.
MPOGCF also participates in more than 20 local and international exhibitions and conferences, including the International Union for Conservation of Nature (IUCN) Congress and UN climate conferences, to share research findings and engage global stakeholders.
"We are currently applying for membership in the IUCN because it is starting to care about palm oil, and slowly it is becoming clear that palm oil is no longer an enemy of the environment. They have also issued guidelines on how the palm oil industry can be biodiversity-friendly. When we become members, we can share our research stories at the IUCN congress," he said.
He added that MPOGCF also plans to recognise oil palm plantations that demonstrate best practices in biodiversity management, conservation and sustainable operations. NST
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Improved access to social protection and safe work sought for Thailand’s agricultural workers
Efforts to expand access to employment-injury protection and strengthen workplace safety in agriculture are helping reduce risks for workers while supporting resilient businesses and supply chains in Thailand.
CHONBURI, Thailand (ILO News) – Employers, workers and provincial partners are working together to help improve access to the Worker’s Compensation Fund (WCF) and strengthen workplace safety in Thailand’s agriculture sector.
A workshop held in Chonburi on 4 February 2026 organised by the International Labour Organization (ILO) and the Employers’ Confederation of Thailand (ECOT) sought to strengthen understanding of the Worker’s Compensation Act B.E. 2537 (1994) to widen WCF coverage. It also helped identify prevention measures to reduce exposure to common hazards in agricultural work.
Taking part were 50 participants, including employers and workers from the rubber, palm oil, cassava and pineapple sectors. They were joined by representatives of the Chonburi Provincial Office of Labour Protection and Welfare and the Chonburi Provincial Social Security Office.
Safe work and effective injury protection are critical to the future of Thailand’s agriculture sector, as labour shortages an ageing workforce and reliance on migrant labour increase risks for workers and employers alike. Migrant workers also commonly face heightened occupational risks and limited access to social protection.
Speaking at the event, Siriwan Romchatthong, Secretary-General of ECOT said, “Social protection is fundamental to ensuring quality living and working conditions for workers and for the long-term sustainability of the agriculture sector. ECOT recognizes the importance of raising awareness among employers and migrant workers in agriculture regarding their access to the Worker’s Compensation Fund, which can help protect workers while supporting more stable, responsible and productive workplaces.”
Adding the provincial perspective, Chaerdchak Aun-kha, Director of the Chonburi Provincial Office of Labour Protection and Welfare, underlined the local impact, “With exposure to hazards such as machinery, chemicals and long working hours, strengthening preventive measures and compliance with labour standards can reduce injuries and illness and improve working conditions. This benefits not only businesses but also the provincial and national economy.”
Representing the Chonburi Provincial Social Security Office, Rungtiwa Thongsuknok noted that feedback from employers and migrant workers on practical challenges and limitations in compliance and access will help the Social Security Office better understand on-the-ground realities and contribute to strengthening implementation and policy responses going forward.
Also speaking at the event, Rebecca Napier-Moore, ILO Technical Officer, highlighted the global and national significance of Thailand’s agricultural sector: “Agriculture employs one-third of the Thai labour force. Good working conditions are needed to ensure the large number of workers in the sector are valued and have rights like any other worker.”
Thailand is a major destination country for migrant workers in South-East Asia, where approximately 3.8 million documented migrant workers from Myanmar, Lao PDR and Cambodia live and work. Over one million are employed in agriculture, which contributes up to 8.6 per cent of the country’s GDP, with an export value of US$51 billion. Migrant workers in the informal agricultural economy remain largely excluded from labour and social protection and often face low wages, excessive working hours, occupational safety and health risks and limited access to the related social security schemes.
The “Social Protection Workshop for Employers and Migrant Workers in the Agriculture Sector” was co-organized by ECOT and the ILO through its Japan-funded Responsible and Inclusive Supply Chains for Migrant Workers in Thailand (RISC-Migrant) project and the Migrant Advocacy for Rights (MARs) project. ILO
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Sustainable Palm Oil: A Fatamorgana?
PALMOILMAGAZINE, JAKARTA — Imagine being stranded in the desert. Your mouth is dry, your head light, your steps unsteady. Then, in the distance, you see water, palm trees, a pool, shade. You walk toward it, faster now, certain that relief is near. But as you approach, it dissolves. It was a fatamorgana, a mirage so convincing it looks real, yet never materializes. For many producing countries, local communities, and even regulators, this is what “sustainable palm oil” increasingly feels like.
A promise that always stays just out of reach
For years, sustainability in palm oil has been presented as an achievable destination. Follow the rules. Meet the criteria. Pass the audit. Tick the boxes. The industry, we are told, can grow while protecting forests, respecting people, and complying with the law.
The promise is seductive because it suggests that complexity can be managed through procedures. That deep political and ecological problems can be solved through technical systems. That the market, if given the right tools, will regulate itself.
And yet, when you walk closer, when you leave conference halls and dashboards and look at the ground itself, the promise often fades. Deforestation still occurs. Land conflicts remain unresolved for years. Plantations continue to operate in legally contested areas.
Smallholders struggle to survive while being asked to comply with ever more detailed requirements. The oasis looks real: from far away.
When sustainability becomes a narrative, not an outcome
Sustainability frameworks have undoubtedly changed behavior. Some practices improved. Some fires were prevented. Some forests were spared. These gains should not be dismissed. But over time, sustainability also became something else: a narrative of reassurance.
Reassurance for consumers anxious about environmental damage.
Reassurance for investors managing reputational risk.
Reassurance for governments that prefer technical fixes over structural reform.
The danger of narratives is not that they are false, but that they can become self-contained. Success is measured by compliance with the system, not by what actually happens beyond it. When sustainability is judged by paperwork rather than lived reality, the mirage strengthens.
The problem sustainability could not absorb
The most uncomfortable moments arrive when sustainability meets power. Recent years have shown that even in sectors wrapped in sustainability language, basic governance failures persist. Corruption cases linked to market access. Court decisions questioned and reversed. Large-scale enforcement actions revealing plantations operating in areas they should never have entered.
These are not side issues. They strike at the core of what sustainability claims to represent.
You cannot meaningfully speak of sustainability where legality itself is unresolved. You cannot audit your way around weak rule of law. You cannot label away structural incentives that reward expansion, rent-seeking, or silence.
Yet sustainability systems were often asked to do exactly that: to compensate for governance gaps they were never designed to fix.
When the market changes the rules
Now, the global market is shifting again. Major consuming regions are no longer satisfied with assurances. They demand proof. Coordinates. Evidence. Legal clarity down to the plot of land. The burden of risk is pushed ever further upstream, toward producers and farmers who had little role in designing the original systems.
This moment is revealing. It suggests an implicit admission that earlier approaches were not enough. That voluntary mechanisms soothed concerns but did not eliminate them. That the oasis many believed in was, at least in part, an optical effect.
For those on the ground, the message feels contradictory: first, “Follow these systems.” then, “These systems are insufficient.” The traveler keeps walking, still thirsty.
The quiet cost of the mirage
The greatest cost of a fatamorgana is not disappointment. It is delay. As long as the oasis appears reachable, people keep moving toward it. They do not look for other routes. They do not question the map. They invest time, money, and trust into a direction that may never deliver water.
In palm oil, this delay has consequences. Forests continue to shrink at the margins. Conflicts harden as communities wait for resolution that never comes. Smallholders are asked to meet standards without being given the security needed to do so.
Meanwhile, the story of sustainability remains intact, polished, repeated, and exported.
A harder question we avoid asking
None of this means sustainability should be abandoned. That would be reckless. But it does mean the conversation needs to mature. Sustainability cannot remain a substitute for governance. It cannot be reduced to a label that absorbs contradictions. It cannot continue pretending that technical systems alone can correct political realities.
So the question is no longer whether palm oil can be sustainable in theory. The question is more uncomfortable and more honest: Is sustainable palm oil, as it is practiced today, a real destination? Or is it a fatamorgana, convincing from a distance, comforting to believe in, but structurally unable to quench the thirst it promises to satisfy?
If the answer is the latter, then the task ahead is not to polish the mirage but to finally change the terrain that creates it. (*)
Author: Dr. M. Windrawan Inantha, Doctor in Sustainable Development Management. Strategic Advisor for Sustainable Development. CECT Sustainability, Universitas Trisakti. Palm Oil Magazine
February 04, 2026
Indonesia and the European Union Await a Million Opportunities After the IEU-CEPA Takes Effect
The agreement will be implemented at least until 2027. Its impact is likely to begin to be seen in 2028 or 2029.
he commitment of the European Union and Indonesia to continue strengthening their relations is evident from the recent achievement of the Indonesia-European Union Comprehensive Economic Partnership Agreement or IEU-CEPA. When the agreement comes into effect in 2027, one million opportunities for trade and investment cooperation will be available for Indonesia and the EU.
The EU Ambassador to Indonesia, Denis Chaibi, stated that the EU views Indonesia as an important player in the region. As a democratic country that prioritizes multilateralism and the rule of law, Jakarta is striving to build bridges when the world is divided.
"That's why we feel we can have a much better partnership than the one we've had so far. This shift in shared understanding is already evident in the highly ambitious IEU-CEPA," Chaibi said during a visit to the Kompas Daily editorial office in Jakarta on Friday (January 30, 2026). Kompas
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Indonesia clamps down on palm oil waste exports as Prabowo pursues energy self-sufficiency
JAKARTA, Feb 3 — In an effort to support its energy self-sufficiency goal, Indonesia plans to restrict export of palm oil waste including used cooking oil, to ensure the materials are prioritised for domestic use.
President Prabowo Subianto said such materials would be channelled to support, among others, domestic biodiesel and aviation fuel production.
“Palm oil waste, used cooking oil, can be used as raw material for aviation fuel. So, with apologies to other nations, I am closing it.
“I am banning the export of palm oil waste and used cooking oil. It must first serve the interests of the Indonesian people,” he said in his remarks during the National Coordination Meeting (Rakornas) of the central and regional governments in Sentul, Bogor Regency, West Java, yesterday.
A video of his speech was shared on social media.
Prabowo said expanding palm-based energy development would help reduce Indonesia’s dependence on energy imports.
He added that Indonesia aims not only to achieve biodiesel self-sufficiency but also to become one of the world’s largest producers of aviation fuel. — Bernama/ Malay Mail
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LACRA to Introduce Policy for Oil Palm
The Liberia Agriculture Commodity Regulatory Authority (LACRA) is set to introduce a policy to govern the oil palm sector of Liberia.
During the conclusion of a two-day workshop held in Monrovia over the weekend, stakeholders considered introducing policies to address the issues of quality control, licensing and fair pricing mechanisms.
The goal is to expand the oil palm market to improve producers' incomes, create more jobs and raise revenue for the country.
The move by the stakeholders comes following President Joseph Nyumah Boakai’s pronouncement during his 2026 annual address to the nation which he proposed to amend the function of LACRA.
Though there has been an effort over the years to transform the small-scale oil palm sector, the industry has lacked clear rules or regulations to contribute meaningfully to the economy.
In a release, LACRA acting director general Dan Saryee said the policy will help improve farmers' and value chain members’ income and create more jobs in the sector.
Meanwhile, the Executive Director for the Oil Palm Farmers’ Association Franklin Jackson called for LACRA to increase visibility, support and protect local farmers to benefit their farm produce.
Mr. Jackson like many others, underscored the need for rigorous traceability of farms across the country and the use of standard lab test on oil palm produce for quality production.
He then lauded the management of LACRA for stakeholder engagements aimed at boosting the palm oil sector of the country.
For her part, LACRA Board Chairperson, Madam Josephine Franscis, commended the participants and admonished Liberians to venture into the sector, underscoring and noting the essential health benefits of palm oil to human existence.
Madam Francis then, on behalf of the board of directors of LACRA, pledged full support to farmers in producing adequate oil for the country with value addition. Liberian Observer
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Mighty Earth accuses First Borneo Group of deforestating orangutan habitat
Ongoing Destruction of Orangutan Habitat and Customary Land
A Mighty Earth investigation has caught a major rainforest destroyer, the First Borneo Group, red-handed laundering palm oil into the supply chains of the world’s largest palm oil traders.
The notorious First Borneo Group is clearing thousands of hectares of orangutan habitat in its PT Equator Sumber Rezeki (ESR) concession to make way for oil palm plantations inside a UNESCO Biosphere Reserve, a biodiverse landscape within West Kalimantan part of Indonesian Borneo.
The ESR concession overlaps with the Labian-Leboyan watershed, a wildlife corridor used by endangered Bornean orangutans. Almost 80% of the concession area is considered to be of High Conservation Value (HCV), and nearly 2,500 orangutans call the watershed home.
Although First Borneo is on the commercial ’No Buy’ lists of multiple traders, companies are not effectively blocking this high-risk leakage actor from entering supply chains.
Why is First Borneo a Notorious Leakage Actor? Mighty Earth
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Indonesia and the European Union Await a Million Opportunities After the IEU-CEPA Takes Effect
The agreement will be implemented at least until 2027. Its impact is likely to begin to be seen in 2028 or 2029.
he commitment of the European Union and Indonesia to continue strengthening their relations is evident from the recent achievement of the Indonesia-European Union Comprehensive Economic Partnership Agreement or IEU-CEPA. When the agreement comes into effect in 2027, one million opportunities for trade and investment cooperation will be available for Indonesia and the EU.
The EU Ambassador to Indonesia, Denis Chaibi, stated that the EU views Indonesia as an important player in the region. As a democratic country that prioritizes multilateralism and the rule of law, Jakarta is striving to build bridges when the world is divided.
"That's why we feel we can have a much better partnership than the one we've had so far. This shift in shared understanding is already evident in the highly ambitious IEU-CEPA," Chaibi said during a visit to the Kompas Daily editorial office in Jakarta on Friday (January 30, 2026). Kompas
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Indonesia clamps down on palm oil waste exports as Prabowo pursues energy self-sufficiency
JAKARTA, Feb 3 — In an effort to support its energy self-sufficiency goal, Indonesia plans to restrict export of palm oil waste including used cooking oil, to ensure the materials are prioritised for domestic use.
President Prabowo Subianto said such materials would be channelled to support, among others, domestic biodiesel and aviation fuel production.
“Palm oil waste, used cooking oil, can be used as raw material for aviation fuel. So, with apologies to other nations, I am closing it.
“I am banning the export of palm oil waste and used cooking oil. It must first serve the interests of the Indonesian people,” he said in his remarks during the National Coordination Meeting (Rakornas) of the central and regional governments in Sentul, Bogor Regency, West Java, yesterday.
A video of his speech was shared on social media.
Prabowo said expanding palm-based energy development would help reduce Indonesia’s dependence on energy imports.
He added that Indonesia aims not only to achieve biodiesel self-sufficiency but also to become one of the world’s largest producers of aviation fuel. — Bernama/ Malay Mail
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LACRA to Introduce Policy for Oil Palm
The Liberia Agriculture Commodity Regulatory Authority (LACRA) is set to introduce a policy to govern the oil palm sector of Liberia.
During the conclusion of a two-day workshop held in Monrovia over the weekend, stakeholders considered introducing policies to address the issues of quality control, licensing and fair pricing mechanisms.
The goal is to expand the oil palm market to improve producers' incomes, create more jobs and raise revenue for the country.
The move by the stakeholders comes following President Joseph Nyumah Boakai’s pronouncement during his 2026 annual address to the nation which he proposed to amend the function of LACRA.
Though there has been an effort over the years to transform the small-scale oil palm sector, the industry has lacked clear rules or regulations to contribute meaningfully to the economy.
In a release, LACRA acting director general Dan Saryee said the policy will help improve farmers' and value chain members’ income and create more jobs in the sector.
Meanwhile, the Executive Director for the Oil Palm Farmers’ Association Franklin Jackson called for LACRA to increase visibility, support and protect local farmers to benefit their farm produce.
Mr. Jackson like many others, underscored the need for rigorous traceability of farms across the country and the use of standard lab test on oil palm produce for quality production.
He then lauded the management of LACRA for stakeholder engagements aimed at boosting the palm oil sector of the country.
For her part, LACRA Board Chairperson, Madam Josephine Franscis, commended the participants and admonished Liberians to venture into the sector, underscoring and noting the essential health benefits of palm oil to human existence.
Madam Francis then, on behalf of the board of directors of LACRA, pledged full support to farmers in producing adequate oil for the country with value addition. Liberian Observer
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Mighty Earth accuses First Borneo Group of deforestating orangutan habitat
Ongoing Destruction of Orangutan Habitat and Customary Land
A Mighty Earth investigation has caught a major rainforest destroyer, the First Borneo Group, red-handed laundering palm oil into the supply chains of the world’s largest palm oil traders.
The notorious First Borneo Group is clearing thousands of hectares of orangutan habitat in its PT Equator Sumber Rezeki (ESR) concession to make way for oil palm plantations inside a UNESCO Biosphere Reserve, a biodiverse landscape within West Kalimantan part of Indonesian Borneo.
The ESR concession overlaps with the Labian-Leboyan watershed, a wildlife corridor used by endangered Bornean orangutans. Almost 80% of the concession area is considered to be of High Conservation Value (HCV), and nearly 2,500 orangutans call the watershed home.
Although First Borneo is on the commercial ’No Buy’ lists of multiple traders, companies are not effectively blocking this high-risk leakage actor from entering supply chains.
Why is First Borneo a Notorious Leakage Actor? Mighty Earth
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February 03, 2026
Indonesia to ban palm oil waste exports to prioritise domestic energy use
President Prabowo Subianto said Indonesia will ban the export of palm oil waste, including used cooking oil, to ensure the material is used domestically, particularly for biodiesel and aviation fuel production.
The president made the announcement at the 2026 National Coordination Meeting of Central and Regional Governments in Sentul, Bogor.
Read also: Indonesia delays B50 biodiesel mandate, maintains B40 and raises palm oil export levy
Prabowo said palm oil waste and used cooking oil are feedstocks for aviation fuel and should first serve national interests. He added that palm oil is a strategic commodity with derivatives ranging from food products to soap and bioenergy.
He said channeling palm oil waste into domestic energy production is aimed at reducing Indonesia’s reliance on imported fuel and supporting the country’s goal of energy self-sufficiency.
Prabowo also said Indonesia aims to become self-sufficient in biodiesel and to develop into one of the world’s major producers of aviation fuel based on palm oil. Petro Mindo
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Indonesia Wants to Be Top Aviation Fuel Supplier, Curbs Used Cooking Oil Export
Jakarta. President Prabowo Subianto wants to make Indonesia the world’s leading aviation fuel supplier as he defends Jakarta’s decision to clamp down on exports of used cooking oil and palm oil residue.
The resource-abundant country has begun tightening shipments in a regulation rolled out by the Trade Ministry last year. Exporters have to gain the government’s approval to be able to ship used cooking oil — also known as UCO — and palm oil residue overseas. Prabowo said the curbs were necessary to safeguard domestic supplies of aviation fuel despite world leaders wanting to get their hands on Indonesian palm oil.
“Indonesia can be the world’s top aviation fuel supplier. The palm oil residue is even a material for aviation fuel, so sorry to other countries. I restrict and ban exports of palm oil residue and used cooking oil,” Prabowo told a televised conference with his ministers and governors in Sentul.
Prabowo did not go into details on whether he meant to implement a tougher ban or was only referring to the existing restrictions stated in the 2025 Trade Ministry regulation. Last August, the state-run energy firm Pertamina had its aviation subsidiary Pelita Air use UCO-based sustainable aviation fuel in a commercial flight for the first time. The airplane was on the Jakarta-Bali route. At home, Indonesia wants to secure enough palm oil to run its biodiesel policy, which the country sees as a panacea for its reliance on imported diesel fuel. Jakarta Globe
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Platts launches daily refined POME FOB Indonesia assessment Feb 2
Platts, part of S&P Global Energy, has launched a daily assessment for refined palm oil mill effluent (POME) on an FOB Indonesia basis, effective Feb. 2, 2026.
Platts has observed the growing demand for Indonesia' s refined POME since the country restricted its crude POME exports. Indonesia is the largest producer of POME globally, producing about 2 million mt /year, according to data from S&P Global Energy . To prioritize domestic industry and biodiesel expansion, the country has temporarily restricted the export of crude POME since Jan. 8, 2025. Refined POME is crude POME that undergoes treatment processes to remove impurities, which can still currently be exported from Indonesia.
The assessment reflect s cargoes loading during a 45-day period covering three half months, starting from a maximum of 15 days forward from the date of publication. The assessment laycan will roll over to the next 45 days on the 1st and 16th of each month, or the first publishing day after if they fall on weekends or a public holiday.
For example, on Feb. 3, 2026, the Platts refined POME FOB Indonesia assessment will reflect cargoes loading Feb. 16 to March 31, reflecting H2 February, H1 March and H2 March. On Feb. 16, 2026, the assessment will reflect cargoes loading in H1 March, H2 March and H1 April.
The assessment reflects a cargo size of 1,000-5,000 mt, on a free on board (FOB) Dumai and Belawan, Indonesia basis. The assessment also considers cargoes loading in other ports in Indonesia, including Kuala Tanjung, Tanjung Perak and Tanjung Priok, normalizing back to the basis location of Dumai and Belawan. Other volumes will also be considered and normalized back to the stated volume specifications. SP Global
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Thailand’s Palm Oil Exports to China Surge 85% in 2025
Thailand’s palm oil exports to China recorded strong growth in 2025, rising 85.38 percent year-on-year, increasing value addition and boosting income for Thai farmers.
The Trade Policy and Strategy Office reported that Thailand’s palm oil exports to China have continued to expand, driven by China’s policy to diversify import sources and Thailand’s competitive pricing. In the past five years, Thai palm oil exports to China grew at an average annual rate of 48.23 percent.
In 2025, export value reached USD 83.44 million (about 2.707 billion baht), a significant increase compared with the same period the previous year.
The Office noted that this growth presents an opportunity for Thai entrepreneurs to develop higher-value-added products and raise standards to meet international requirements. It also highlights the importance of proactive marketing, effective use of trade preferences, and strengthened supply chains to enhance the competitiveness of Thai agricultural products.
These efforts are expected to increase income for more than 400,000 oil palm farming households nationwide and support the sustainable development of Thailand’s agricultural sector. Thai News
Indonesia to ban palm oil waste exports to prioritise domestic energy use
President Prabowo Subianto said Indonesia will ban the export of palm oil waste, including used cooking oil, to ensure the material is used domestically, particularly for biodiesel and aviation fuel production.
The president made the announcement at the 2026 National Coordination Meeting of Central and Regional Governments in Sentul, Bogor.
Read also: Indonesia delays B50 biodiesel mandate, maintains B40 and raises palm oil export levy
Prabowo said palm oil waste and used cooking oil are feedstocks for aviation fuel and should first serve national interests. He added that palm oil is a strategic commodity with derivatives ranging from food products to soap and bioenergy.
He said channeling palm oil waste into domestic energy production is aimed at reducing Indonesia’s reliance on imported fuel and supporting the country’s goal of energy self-sufficiency.
Prabowo also said Indonesia aims to become self-sufficient in biodiesel and to develop into one of the world’s major producers of aviation fuel based on palm oil. Petro Mindo
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Indonesia Wants to Be Top Aviation Fuel Supplier, Curbs Used Cooking Oil Export
Jakarta. President Prabowo Subianto wants to make Indonesia the world’s leading aviation fuel supplier as he defends Jakarta’s decision to clamp down on exports of used cooking oil and palm oil residue.
The resource-abundant country has begun tightening shipments in a regulation rolled out by the Trade Ministry last year. Exporters have to gain the government’s approval to be able to ship used cooking oil — also known as UCO — and palm oil residue overseas. Prabowo said the curbs were necessary to safeguard domestic supplies of aviation fuel despite world leaders wanting to get their hands on Indonesian palm oil.
“Indonesia can be the world’s top aviation fuel supplier. The palm oil residue is even a material for aviation fuel, so sorry to other countries. I restrict and ban exports of palm oil residue and used cooking oil,” Prabowo told a televised conference with his ministers and governors in Sentul.
Prabowo did not go into details on whether he meant to implement a tougher ban or was only referring to the existing restrictions stated in the 2025 Trade Ministry regulation. Last August, the state-run energy firm Pertamina had its aviation subsidiary Pelita Air use UCO-based sustainable aviation fuel in a commercial flight for the first time. The airplane was on the Jakarta-Bali route. At home, Indonesia wants to secure enough palm oil to run its biodiesel policy, which the country sees as a panacea for its reliance on imported diesel fuel. Jakarta Globe
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Platts launches daily refined POME FOB Indonesia assessment Feb 2
Platts, part of S&P Global Energy, has launched a daily assessment for refined palm oil mill effluent (POME) on an FOB Indonesia basis, effective Feb. 2, 2026.
Platts has observed the growing demand for Indonesia' s refined POME since the country restricted its crude POME exports. Indonesia is the largest producer of POME globally, producing about 2 million mt /year, according to data from S&P Global Energy . To prioritize domestic industry and biodiesel expansion, the country has temporarily restricted the export of crude POME since Jan. 8, 2025. Refined POME is crude POME that undergoes treatment processes to remove impurities, which can still currently be exported from Indonesia.
The assessment reflect s cargoes loading during a 45-day period covering three half months, starting from a maximum of 15 days forward from the date of publication. The assessment laycan will roll over to the next 45 days on the 1st and 16th of each month, or the first publishing day after if they fall on weekends or a public holiday.
For example, on Feb. 3, 2026, the Platts refined POME FOB Indonesia assessment will reflect cargoes loading Feb. 16 to March 31, reflecting H2 February, H1 March and H2 March. On Feb. 16, 2026, the assessment will reflect cargoes loading in H1 March, H2 March and H1 April.
The assessment reflects a cargo size of 1,000-5,000 mt, on a free on board (FOB) Dumai and Belawan, Indonesia basis. The assessment also considers cargoes loading in other ports in Indonesia, including Kuala Tanjung, Tanjung Perak and Tanjung Priok, normalizing back to the basis location of Dumai and Belawan. Other volumes will also be considered and normalized back to the stated volume specifications. SP Global
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Thailand’s Palm Oil Exports to China Surge 85% in 2025
Thailand’s palm oil exports to China recorded strong growth in 2025, rising 85.38 percent year-on-year, increasing value addition and boosting income for Thai farmers.
The Trade Policy and Strategy Office reported that Thailand’s palm oil exports to China have continued to expand, driven by China’s policy to diversify import sources and Thailand’s competitive pricing. In the past five years, Thai palm oil exports to China grew at an average annual rate of 48.23 percent.
In 2025, export value reached USD 83.44 million (about 2.707 billion baht), a significant increase compared with the same period the previous year.
The Office noted that this growth presents an opportunity for Thai entrepreneurs to develop higher-value-added products and raise standards to meet international requirements. It also highlights the importance of proactive marketing, effective use of trade preferences, and strengthened supply chains to enhance the competitiveness of Thai agricultural products.
These efforts are expected to increase income for more than 400,000 oil palm farming households nationwide and support the sustainable development of Thailand’s agricultural sector. Thai News
February 02, 2026
Indonesia’s Export of ‘Highly Coveted’ Palm Oil Up 21.83%
Jakarta. 2025 has been a sweet year for the Indonesian palm oil industry as the exports of this highly coveted commodity soared in double digits.
Indonesia’s annual export of crude palm oil (CPO) and derivatives totaled $24.42 billion last year, data from the Central Statistics Agency (BPS) showed. Shipments had risen 21.83% from 2024 figures of $20.05 billion. Indonesia shipped 23.61 million tons of palm oil overseas in 2025. The export volume jumped 9.09% compared to 2024 shipments of 21.64 million tons.
BPS did not disclose the top export market destinations for Indonesian palm oil. But as expected, palm oil has been driving Jakarta’s surplus with India as the latter heavily relies on foreign supplies. Goods categorized as vegetable oils and animal fats (such as palm oil) shipped to India contributed $3.56 billion in surplus last year. The same group of goods sold to the Philippines accounted for $990 million in surplus.
In December 2025 alone, palm oil exports neared $2.8 billion in value and around 2.75 million tons from a volume standpoint.
“The export volume had soared 102.23% month-to-month, and up 66.80% year-on-year [yoy],” BPS deputy Ateng Hartono told a press briefing on Monday.
Amidst the growing popularity, the average global palm oil price had been under pressure, down 17.59% yoy to $980.51 per metric ton last December. Its price also dropped 0.29% month-to-month.
The burgeoning palm oil exports helped Indonesia keep its positive trade balance streak for the 68th consecutive month since May 2020. Earlier that day, Prabowo had told governors and regents how greatly sought-after Indonesian palm oil was. He even listed the diverse use cases of palm oil, ranging from soap to baked goods. Jakarta Globe
--------
Prabowo Defends Palm Oil Expansion, Calls It a 'Miracle Crop'
TEMPO.CO, Jakarta – President Prabowo Subianto has described palm oil as a “miracle crop,” rejecting criticism from groups that oppose the expansion of palm oil plantations in Indonesia.
Prabowo made the remarks during a briefing at the 2026 National Coordination Meeting of central and regional governments at the Sentul International Convention Center (SICC) in Bogor, West Java, on Monday, February 2, 2026.
“Why palm oil? For me, it is a miracle crop,” Prabowo said before thousands of government officials attending the meeting.
He argued that Indonesia could achieve energy self-sufficiency by optimizing palm oil production, but said the idea often faces resistance.
“There are groups that criticize, asking why palm oil. They say, ‘Prabowo wants to expand palm oil?’ Yes, for the Indonesian people,” he said, adding that he was unfazed by such criticism.
Prabowo, who also serves as chair of the Gerindra Party, highlighted the wide range of uses for palm oil, noting that it can be processed into products such as paint, food, soap, and biofuel. Expanding palm oil cultivation, he said, would allow Indonesia to produce biofuel domestically.
“Later we will produce biofuel. It will make us independent from external dependence. Those who want to use gasoline can continue. Those who can afford it can pay. But our people can rely on biofuel,” he said.
“From palm oil, we can develop many derivative products.”
Prabowo also claimed that Indonesian palm oil is in high demand globally. He said several world leaders he has met have asked Indonesia to help supply their countries’ crude palm oil needs.
“I have visited many countries, and almost all their leaders asked Indonesia for assistance in supplying palm oil,” Prabowo said, citing visits to Egypt, Pakistan, Russia, and Belarus.
“This shows that palm oil is a very strategic commodity.” Tempo
--------
Indonesia to ban palm oil waste exports to drive energy independence
Bogor, West Java (ANTARA) - President Prabowo Subianto has announced that Indonesia will ban the export of palm oil waste, including used cooking oil, to ensure the resource is utilized for national interests—particularly in advancing energy self-sufficiency.
Speaking at the 2026 National Coordination Meeting of Central and Regional Governments in Sentul, Bogor, West Java, on Monday, Prabowo emphasized that Indonesia’s vast palm oil potential must be maximized for domestic needs.
“Palm oil waste, including used cooking oil, is material for aviation fuel. So, I am closing it off to other nations. I ban the export of palm oil waste and used cooking oil. It must first serve the people of Indonesia,” he declared.
Prabowo described palm oil as a strategic commodity with wide-ranging derivatives, from cooking oil and food products to soap and biodiesel.
He referred to it as a “miracle crop” for its ability to produce essential goods demanded worldwide.
He noted that many global leaders have expressed interest in Indonesia’s crude palm oil (CPO), underscoring its strategic value.
However, he stressed that Indonesia’s national interests must take precedence, with raw materials such as used palm oil directed toward domestic biodiesel and aviation fuel production.
Prabowo explained that developing palm oil-based energy would reduce Indonesia’s reliance on imported fuel.
His vision is not only for Indonesia to achieve self-sufficiency in biodiesel but also to emerge as one of the world’s leading producers of aviation fuel.
“Most importantly, palm oil allows us to produce diesel. Biodiesel will free us from foreign dependence. Those who want gasoline, fine, pay world prices. But our people can live with diesel,” he said. Antara News
--------
A New Chapter For The Malaysian Palm Oil Industry
By Eur Ing Hong Wai Onn
Malaysia is responsible for producing nearly a quarter of the world’s palm oil, making it central to both its economy and global markets. For decades, however, the industry has been dogged by controversy, with persistent criticism over deforestation, destruction of biodiversity, labour exploitation, and a substantial carbon footprint.
Yet, that narrative is shifting. In recent years, Malaysia’s palm oil industry has undergone transformative changes, driven by increasingly rigorous regulations at home and abroad, alongside heightened commitments from industry players themselves. These external and internal pressures are fundamentally reshaping the way Malaysian palm oil is cultivated, traded, and consumed, marking a significant departure from past practices.
Progress in Labour Rights
Perhaps the clearest indicator of this shift emerged recently when U.S. Customs and Border Protection lifted its import ban on products from FGV Holdings Berhad, Malaysia’s second-largest palm oil producer, effective 15 January 2026. This decision was not a courtesy but rather recognition of the extensive reforms undertaken by FGV following the original ban imposed in 2020, which stemmed from concerns over forced labour.
Whether or not all allegations were ultimately substantiated, FGV’s response was both broad and robust. The company implemented sweeping changes designed to not only meet, but exceed, international labour standards—a process entailing significant financial investment and operational effort.
Importantly, FGV’s experience is not an isolated case. It reflects a broader evolution across Malaysia’s labour landscape. Since 2019, enforcement actions spanning several industries, including palm oil, have resulted in more than US$85 million being repaid to workers. These repayments, coupled with comprehensive structural reforms, have led to tangible improvements in labour practices, setting new industry-wide benchmarks for workers’ rights and compliance throughout Malaysia’s supply chains.
Technology Meets Transparency
Technology is enabling accountability that was previously impossible. Companies are deploying digital platforms and blockchain systems to monitor supply chains from plantation to final product, ensuring no illegal land conversion is connected to their inputs.
FGV’s launch of the FGVTOP platform exemplifies this trend, offering authorised users across the globe real-time access to sustainability verification data. Similarly, SD Guthrie’s Crosscheck platform, which has been continually improved since its inception, enables anyone to trace palm oil sources down to individual plantations. Although some critics may argue that such initiatives are mere marketing tools, they in fact create the essential infrastructure required to trace palm oil to specific plots and verify that sourcing is deforestation-free, as stipulated by evolving regulations.
Transparency Driving Environmental Progress
Recent changes to reporting requirements have dramatically advanced transparency across Malaysia’s palm oil industry. Bursa Malaysia’s guidelines now require companies to align their disclosures more closely with international sustainability standards. Leading palm oil producers are publishing annual sustainability and climate-related reports in accordance with these requirements, offering structured and detailed assessments of greenhouse gas emissions, biodiversity management, and supply-chain traceability.
This transparency is not merely symbolic; it is translating into real, measurable environmental outcomes. To date, 170 palm oil mills, representing 38% of Malaysia’s 446 operating mills, had installed biogas capture facilities, surpassing the National Agricommodity Policy 2025 target of 155 mills. The capture of methane from palm oil mill effluent alone has reduced greenhouse gas emissions by 4.9 million tonnes of carbon dioxide. Beyond this, further environmental gains are achievable by fully converting the captured methane into renewable energy, thereby reducing reliance on fossil fuels. This progress demonstrates that regulatory reporting and transparency are driving real operational and environmental improvements.
Enhancing Food Safety Standards
In response to increasingly stringent standards from the European Food Safety Authority, Malaysia has also taken decisive steps to address food safety concerns related to palm oil. Specifically, the country, spearheaded by the Malaysian Palm Oil Board, has invested in advanced refining techniques to reduce levels of 3-MCPD and glycidyl esters, contaminants in refined palm oil that had raised significant health concerns in Europe.
Although the full, industry-wide implementation of these technologies has faced delays—originally scheduled for 2021, now set for enforcement in 2026—the government has made it clear that there will be no further blanket extensions. This commitment to enforcement is a testament to Malaysia’s resolve in meeting global expectations for product safety and quality.
Raising the Bar for Environmental Responsibility
Malaysia’s leadership in sustainability is perhaps best exemplified by the Malaysian Sustainable Palm Oil (MSPO) certification scheme, which made history as the world’s first mandatory national standard for palm oil. Introduced on a voluntary basis in 2015 and made compulsory in 2020, the MSPO has set rigorous criteria for environmental and social responsibility.
The launch of MSPO 2.0 in January 2025 further elevated expectations, introducing even stricter requirements, including a deforestation cut-off date that surpasses the requirements set by the European Union’s Deforestation Regulation. This proactive stance has paid dividends: in 2025, the European Union formally recognised the MSPO as a credible certification scheme, praising its robust digital traceability features.
Shaping the Future
2026 could mark the start of a new chapter for Malaysia’s palm oil industry, as it continues to move beyond previous criticisms towards even greater accountability and sustainability. The recent advances in transparency, environmental responsibility, and food safety standards have set a positive tone for the future, with tangible progress already being made in several key areas.
Malaysia’s ongoing reforms not only serve as a benchmark for other palm oil producers. While the industry has made notable strides, there remains significant potential for further progress. The next few years will be crucial in testing the durability and depth of these reforms, demonstrating that sustained commitment and continuous improvement can yield meaningful and lasting transformation. The outlook is encouraging, yet there is still more work to be done to ensure the industry reaches its full potential.
The author is a chartered engineer and chartered environmentalist, is a Fellow of the Institution of Chemical Engineers, the Royal Society of Chemistry, and the Malaysian Institute of Management. He is also the founder of the Research Institute for Sustainable Excellence and Leadership (RISEL). Business Today
Indonesia’s Export of ‘Highly Coveted’ Palm Oil Up 21.83%
Jakarta. 2025 has been a sweet year for the Indonesian palm oil industry as the exports of this highly coveted commodity soared in double digits.
Indonesia’s annual export of crude palm oil (CPO) and derivatives totaled $24.42 billion last year, data from the Central Statistics Agency (BPS) showed. Shipments had risen 21.83% from 2024 figures of $20.05 billion. Indonesia shipped 23.61 million tons of palm oil overseas in 2025. The export volume jumped 9.09% compared to 2024 shipments of 21.64 million tons.
BPS did not disclose the top export market destinations for Indonesian palm oil. But as expected, palm oil has been driving Jakarta’s surplus with India as the latter heavily relies on foreign supplies. Goods categorized as vegetable oils and animal fats (such as palm oil) shipped to India contributed $3.56 billion in surplus last year. The same group of goods sold to the Philippines accounted for $990 million in surplus.
In December 2025 alone, palm oil exports neared $2.8 billion in value and around 2.75 million tons from a volume standpoint.
“The export volume had soared 102.23% month-to-month, and up 66.80% year-on-year [yoy],” BPS deputy Ateng Hartono told a press briefing on Monday.
Amidst the growing popularity, the average global palm oil price had been under pressure, down 17.59% yoy to $980.51 per metric ton last December. Its price also dropped 0.29% month-to-month.
The burgeoning palm oil exports helped Indonesia keep its positive trade balance streak for the 68th consecutive month since May 2020. Earlier that day, Prabowo had told governors and regents how greatly sought-after Indonesian palm oil was. He even listed the diverse use cases of palm oil, ranging from soap to baked goods. Jakarta Globe
--------
Prabowo Defends Palm Oil Expansion, Calls It a 'Miracle Crop'
TEMPO.CO, Jakarta – President Prabowo Subianto has described palm oil as a “miracle crop,” rejecting criticism from groups that oppose the expansion of palm oil plantations in Indonesia.
Prabowo made the remarks during a briefing at the 2026 National Coordination Meeting of central and regional governments at the Sentul International Convention Center (SICC) in Bogor, West Java, on Monday, February 2, 2026.
“Why palm oil? For me, it is a miracle crop,” Prabowo said before thousands of government officials attending the meeting.
He argued that Indonesia could achieve energy self-sufficiency by optimizing palm oil production, but said the idea often faces resistance.
“There are groups that criticize, asking why palm oil. They say, ‘Prabowo wants to expand palm oil?’ Yes, for the Indonesian people,” he said, adding that he was unfazed by such criticism.
Prabowo, who also serves as chair of the Gerindra Party, highlighted the wide range of uses for palm oil, noting that it can be processed into products such as paint, food, soap, and biofuel. Expanding palm oil cultivation, he said, would allow Indonesia to produce biofuel domestically.
“Later we will produce biofuel. It will make us independent from external dependence. Those who want to use gasoline can continue. Those who can afford it can pay. But our people can rely on biofuel,” he said.
“From palm oil, we can develop many derivative products.”
Prabowo also claimed that Indonesian palm oil is in high demand globally. He said several world leaders he has met have asked Indonesia to help supply their countries’ crude palm oil needs.
“I have visited many countries, and almost all their leaders asked Indonesia for assistance in supplying palm oil,” Prabowo said, citing visits to Egypt, Pakistan, Russia, and Belarus.
“This shows that palm oil is a very strategic commodity.” Tempo
--------
Indonesia to ban palm oil waste exports to drive energy independence
Bogor, West Java (ANTARA) - President Prabowo Subianto has announced that Indonesia will ban the export of palm oil waste, including used cooking oil, to ensure the resource is utilized for national interests—particularly in advancing energy self-sufficiency.
Speaking at the 2026 National Coordination Meeting of Central and Regional Governments in Sentul, Bogor, West Java, on Monday, Prabowo emphasized that Indonesia’s vast palm oil potential must be maximized for domestic needs.
“Palm oil waste, including used cooking oil, is material for aviation fuel. So, I am closing it off to other nations. I ban the export of palm oil waste and used cooking oil. It must first serve the people of Indonesia,” he declared.
Prabowo described palm oil as a strategic commodity with wide-ranging derivatives, from cooking oil and food products to soap and biodiesel.
He referred to it as a “miracle crop” for its ability to produce essential goods demanded worldwide.
He noted that many global leaders have expressed interest in Indonesia’s crude palm oil (CPO), underscoring its strategic value.
However, he stressed that Indonesia’s national interests must take precedence, with raw materials such as used palm oil directed toward domestic biodiesel and aviation fuel production.
Prabowo explained that developing palm oil-based energy would reduce Indonesia’s reliance on imported fuel.
His vision is not only for Indonesia to achieve self-sufficiency in biodiesel but also to emerge as one of the world’s leading producers of aviation fuel.
“Most importantly, palm oil allows us to produce diesel. Biodiesel will free us from foreign dependence. Those who want gasoline, fine, pay world prices. But our people can live with diesel,” he said. Antara News
--------
A New Chapter For The Malaysian Palm Oil Industry
By Eur Ing Hong Wai Onn
Malaysia is responsible for producing nearly a quarter of the world’s palm oil, making it central to both its economy and global markets. For decades, however, the industry has been dogged by controversy, with persistent criticism over deforestation, destruction of biodiversity, labour exploitation, and a substantial carbon footprint.
Yet, that narrative is shifting. In recent years, Malaysia’s palm oil industry has undergone transformative changes, driven by increasingly rigorous regulations at home and abroad, alongside heightened commitments from industry players themselves. These external and internal pressures are fundamentally reshaping the way Malaysian palm oil is cultivated, traded, and consumed, marking a significant departure from past practices.
Progress in Labour Rights
Perhaps the clearest indicator of this shift emerged recently when U.S. Customs and Border Protection lifted its import ban on products from FGV Holdings Berhad, Malaysia’s second-largest palm oil producer, effective 15 January 2026. This decision was not a courtesy but rather recognition of the extensive reforms undertaken by FGV following the original ban imposed in 2020, which stemmed from concerns over forced labour.
Whether or not all allegations were ultimately substantiated, FGV’s response was both broad and robust. The company implemented sweeping changes designed to not only meet, but exceed, international labour standards—a process entailing significant financial investment and operational effort.
Importantly, FGV’s experience is not an isolated case. It reflects a broader evolution across Malaysia’s labour landscape. Since 2019, enforcement actions spanning several industries, including palm oil, have resulted in more than US$85 million being repaid to workers. These repayments, coupled with comprehensive structural reforms, have led to tangible improvements in labour practices, setting new industry-wide benchmarks for workers’ rights and compliance throughout Malaysia’s supply chains.
Technology Meets Transparency
Technology is enabling accountability that was previously impossible. Companies are deploying digital platforms and blockchain systems to monitor supply chains from plantation to final product, ensuring no illegal land conversion is connected to their inputs.
FGV’s launch of the FGVTOP platform exemplifies this trend, offering authorised users across the globe real-time access to sustainability verification data. Similarly, SD Guthrie’s Crosscheck platform, which has been continually improved since its inception, enables anyone to trace palm oil sources down to individual plantations. Although some critics may argue that such initiatives are mere marketing tools, they in fact create the essential infrastructure required to trace palm oil to specific plots and verify that sourcing is deforestation-free, as stipulated by evolving regulations.
Transparency Driving Environmental Progress
Recent changes to reporting requirements have dramatically advanced transparency across Malaysia’s palm oil industry. Bursa Malaysia’s guidelines now require companies to align their disclosures more closely with international sustainability standards. Leading palm oil producers are publishing annual sustainability and climate-related reports in accordance with these requirements, offering structured and detailed assessments of greenhouse gas emissions, biodiversity management, and supply-chain traceability.
This transparency is not merely symbolic; it is translating into real, measurable environmental outcomes. To date, 170 palm oil mills, representing 38% of Malaysia’s 446 operating mills, had installed biogas capture facilities, surpassing the National Agricommodity Policy 2025 target of 155 mills. The capture of methane from palm oil mill effluent alone has reduced greenhouse gas emissions by 4.9 million tonnes of carbon dioxide. Beyond this, further environmental gains are achievable by fully converting the captured methane into renewable energy, thereby reducing reliance on fossil fuels. This progress demonstrates that regulatory reporting and transparency are driving real operational and environmental improvements.
Enhancing Food Safety Standards
In response to increasingly stringent standards from the European Food Safety Authority, Malaysia has also taken decisive steps to address food safety concerns related to palm oil. Specifically, the country, spearheaded by the Malaysian Palm Oil Board, has invested in advanced refining techniques to reduce levels of 3-MCPD and glycidyl esters, contaminants in refined palm oil that had raised significant health concerns in Europe.
Although the full, industry-wide implementation of these technologies has faced delays—originally scheduled for 2021, now set for enforcement in 2026—the government has made it clear that there will be no further blanket extensions. This commitment to enforcement is a testament to Malaysia’s resolve in meeting global expectations for product safety and quality.
Raising the Bar for Environmental Responsibility
Malaysia’s leadership in sustainability is perhaps best exemplified by the Malaysian Sustainable Palm Oil (MSPO) certification scheme, which made history as the world’s first mandatory national standard for palm oil. Introduced on a voluntary basis in 2015 and made compulsory in 2020, the MSPO has set rigorous criteria for environmental and social responsibility.
The launch of MSPO 2.0 in January 2025 further elevated expectations, introducing even stricter requirements, including a deforestation cut-off date that surpasses the requirements set by the European Union’s Deforestation Regulation. This proactive stance has paid dividends: in 2025, the European Union formally recognised the MSPO as a credible certification scheme, praising its robust digital traceability features.
Shaping the Future
2026 could mark the start of a new chapter for Malaysia’s palm oil industry, as it continues to move beyond previous criticisms towards even greater accountability and sustainability. The recent advances in transparency, environmental responsibility, and food safety standards have set a positive tone for the future, with tangible progress already being made in several key areas.
Malaysia’s ongoing reforms not only serve as a benchmark for other palm oil producers. While the industry has made notable strides, there remains significant potential for further progress. The next few years will be crucial in testing the durability and depth of these reforms, demonstrating that sustained commitment and continuous improvement can yield meaningful and lasting transformation. The outlook is encouraging, yet there is still more work to be done to ensure the industry reaches its full potential.
The author is a chartered engineer and chartered environmentalist, is a Fellow of the Institution of Chemical Engineers, the Royal Society of Chemistry, and the Malaysian Institute of Management. He is also the founder of the Research Institute for Sustainable Excellence and Leadership (RISEL). Business Today
February 01, 2026
India faces hotter, drier February, threatening winter crops
MUMBAI, Feb 1 (Reuters) - India will be warmer and drier this month after an unusually warm January, the weather office said, raising risks for key winter-sown crops such as wheat, rapeseed and chickpeas.
The country's northwestern wheat-growing region is likely to receive less than 78% of its long-term average rainfall, Mrutyunjay Mohapatra, director-general of the India Meteorological Department, said on Saturday.
Maximum and minimum temperatures in most parts of the country will be above average in February, he said.
Crops such as wheat and barley could suffer yield losses, as higher-than-normal temperatures may accelerate crop growth and shorten the growing period, he said.
"Below-normal cold-wave days are likely over several parts of northwest and adjoining central India," he said.
India's Punjab, Haryana, and Uttar Pradesh states in the north, along with Madhya Pradesh in central India, form the country's top wheat-growing regions.
Winter-sown crops such as wheat, rapeseed, and chickpeas are planted from October to December and require cold conditions during their growth and maturity stages for optimal yields. Reuters
--------
Govt committed to welfare of palm oil farmers: Minister
State Agriculture Minister Kinjarapu Atchannaidu said on Thursday that the welfare of palm oil farmers is the main objective of the government. Minister Atchannaidu inaugurated the new office building of the Director of Horticulture and Sericulture at Vadeshwaram in Guntur district. Subsequently, a meeting of the Oil Palm Price Fixation Committee was held under the Chairmanship of the Minister to decide the principle for calculating the price of palm oil for the oil year 2025-26. In the meeting, various key issues such as Percentage / Oil Extraction Rate(OER), palm nut recovery, etc.
were discussed at length. Speaking on the occasion, the Minister said that Andhra Pradesh ranks first in the country in terms of area, production and productivity of oil palm with about 1.97 lakh farmers cultivating oil palm in 2.49 lakh hectares of land with an average productivity of 19.81 tonnes/hectare. The minister also informed that along with quality seed seedlings imported from countries like Indonesia, Malaysia and Costa Rica, indigenous varieties of saplings are being provided to the farmers and with the development of 30 nurseries and three seed gardens, we are ready for future needs.
He stated that with the implementation of OER of 19.42% for oil 2024-25 year, an average price of Rs. 19,579/MT has been achieved, which is the highest in last ten years and the confidence of farmers has increased. He also mentioned that in 2025-26, 24,535 hectares have been covered under new plantations and so far Rs 181.28 crore has been released and deposited directly into the farmers' accounts. Metro India
--------
Palm oil trade in West Africa: Mali, Burkina Faso and Côte d’Ivoire drive the market
The prominent position of these two neighbors in Côte d’Ivoire’s palm oil trade reflects a structural trend that has been unfolding for nearly a decade. Between 2015 and 2024, Burkina Faso’s imports of Ivorian palm oil more than tripled, while Mali’s imports nearly doubled over the same period.
This sustained growth reflects both population expansion and changing consumption patterns in the two countries, where palm oil plays a central role in daily diets alongside other vegetable oils such as shea, cottonseed, and groundnut oil. Imports remain essential, as local biophysical conditions do not allow for the large-scale development of domestic oil palm production.
In the absence of national output, external supply has become strategic, both for household consumption and for industrial uses, particularly in the manufacture of soap, cosmetics, and basic consumer goods. Côte d’Ivoire has emerged as the preferred supplier to these markets. Geographic proximity, regional integration within WAEMU, and relatively smooth trade flows provide a clear advantage.
Above all, Côte d’Ivoire has benefited from a steady rise in palm oil production since the late 2010s. In the largest economy of WAEMU, the continuous increase in available volumes since 2018 has strengthened the industry and allowed exporters to take a more assertive position in regional markets. Ecofin Agency
India faces hotter, drier February, threatening winter crops
MUMBAI, Feb 1 (Reuters) - India will be warmer and drier this month after an unusually warm January, the weather office said, raising risks for key winter-sown crops such as wheat, rapeseed and chickpeas.
The country's northwestern wheat-growing region is likely to receive less than 78% of its long-term average rainfall, Mrutyunjay Mohapatra, director-general of the India Meteorological Department, said on Saturday.
Maximum and minimum temperatures in most parts of the country will be above average in February, he said.
Crops such as wheat and barley could suffer yield losses, as higher-than-normal temperatures may accelerate crop growth and shorten the growing period, he said.
"Below-normal cold-wave days are likely over several parts of northwest and adjoining central India," he said.
India's Punjab, Haryana, and Uttar Pradesh states in the north, along with Madhya Pradesh in central India, form the country's top wheat-growing regions.
Winter-sown crops such as wheat, rapeseed, and chickpeas are planted from October to December and require cold conditions during their growth and maturity stages for optimal yields. Reuters
--------
Govt committed to welfare of palm oil farmers: Minister
State Agriculture Minister Kinjarapu Atchannaidu said on Thursday that the welfare of palm oil farmers is the main objective of the government. Minister Atchannaidu inaugurated the new office building of the Director of Horticulture and Sericulture at Vadeshwaram in Guntur district. Subsequently, a meeting of the Oil Palm Price Fixation Committee was held under the Chairmanship of the Minister to decide the principle for calculating the price of palm oil for the oil year 2025-26. In the meeting, various key issues such as Percentage / Oil Extraction Rate(OER), palm nut recovery, etc.
were discussed at length. Speaking on the occasion, the Minister said that Andhra Pradesh ranks first in the country in terms of area, production and productivity of oil palm with about 1.97 lakh farmers cultivating oil palm in 2.49 lakh hectares of land with an average productivity of 19.81 tonnes/hectare. The minister also informed that along with quality seed seedlings imported from countries like Indonesia, Malaysia and Costa Rica, indigenous varieties of saplings are being provided to the farmers and with the development of 30 nurseries and three seed gardens, we are ready for future needs.
He stated that with the implementation of OER of 19.42% for oil 2024-25 year, an average price of Rs. 19,579/MT has been achieved, which is the highest in last ten years and the confidence of farmers has increased. He also mentioned that in 2025-26, 24,535 hectares have been covered under new plantations and so far Rs 181.28 crore has been released and deposited directly into the farmers' accounts. Metro India
--------
Palm oil trade in West Africa: Mali, Burkina Faso and Côte d’Ivoire drive the market
- Burkina Faso and Mali absorbed over 47% of Côte d’Ivoire’s palm oil exports in 2024.
- Côte d’Ivoire exported CFA90.1 billion of palm oil to the two countries.
- Rising Ivorian output has strengthened its role as a regional palm oil hub.
The prominent position of these two neighbors in Côte d’Ivoire’s palm oil trade reflects a structural trend that has been unfolding for nearly a decade. Between 2015 and 2024, Burkina Faso’s imports of Ivorian palm oil more than tripled, while Mali’s imports nearly doubled over the same period.
This sustained growth reflects both population expansion and changing consumption patterns in the two countries, where palm oil plays a central role in daily diets alongside other vegetable oils such as shea, cottonseed, and groundnut oil. Imports remain essential, as local biophysical conditions do not allow for the large-scale development of domestic oil palm production.
In the absence of national output, external supply has become strategic, both for household consumption and for industrial uses, particularly in the manufacture of soap, cosmetics, and basic consumer goods. Côte d’Ivoire has emerged as the preferred supplier to these markets. Geographic proximity, regional integration within WAEMU, and relatively smooth trade flows provide a clear advantage.
Above all, Côte d’Ivoire has benefited from a steady rise in palm oil production since the late 2010s. In the largest economy of WAEMU, the continuous increase in available volumes since 2018 has strengthened the industry and allowed exporters to take a more assertive position in regional markets. Ecofin Agency
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Palm oil news. February 2026 CSPO Watch