Palm oil news - January 2025
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January 22, 2025
EU and Malaysia resume free trade talks under shadow of Trump's return
The European Union and Malaysia have announced the resumption of free trade negotiations. The EU is trying to diversify its trade partnerships as Donald Trump re-enters office in the US.
"This excellent news comes at a critical time. Geopolitical tensions are rising, and the risk of instability is growing," said European Commission President Ursula von der Leyen in a statement.
Trade between the EU and Malaysia currently amounts to €45 billion annually, and an agreement would "take things to the next level," the European executive chief argued. "While others turn inwards and isolate themselves, Europe and Malaysia choose another path: establishing partnerships."
'Significant milestone'
Brussels and Kuala Lumpur had initially launched negotiations in 2010 but suspended them two years later.
Malaysian Prime Minister Anwar Ibrahim, who concluded a two-day working visit to Brussels on Monday, described the reopening of discussions as a "significant milestone."
He believes such an agreement would boost Malaysian exports, particularly in electrical and electronic products, scientific equipment and palm oil. It would also stimulate EU investments in green energy and advanced manufacturing.
The EU is troubled by threats of drastic tariff increases on European products posed by Donald Trump, who will be inaugurated for his second US presidential term on Monday. The bloc is also conscious of its need to contend with competition from China. Brussels Times
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EU-Malaysia trade talks resume amid deforestation, palm oil row
Malaysia may seek concessions similar to those in the recently concluded EU-Mercosur agreement.
The European Union and Malaysia announced the resumption of negotiations on a free trade agreement on Monday, breaking a years-long deadlock fuelled by disputes over palm oil-induced deforestation.
"This excellent news comes at a critical time," said European Commission President Ursula von der Leyen.
"Geopolitical tensions are escalating and the risk of instability is growing," she added.
The talks were stalled mainly because of the EU's decision to exclude palm oil-based biofuels from renewable energy classification. But, after Monday's announcement, Malaysian Prime Minister Anwar Ibrahim was quick to point the potential benefits of a trade deal for Malaysian palm oil industry which accounts for 26% of global production - the world’s largest after Indonesia.
Tensions run high
The EU's palm oil decision prompted Kuala Lumpur and Jakarta to file WTO complaints against the EU. A recent WTO ruling clarified key aspects of the dispute and upheld the EU’s right to restrict palm oil biofuels for climate objectives, which prompted the resumption of negotiations.
“This reflects a genuine commitment from both parties to advance the relationship said Lizza Bomassi, a researcher analyst on the Indo-Pacific at the EU’s Institute for Security Studies.
However, another palm oil-related legislation, the EU’s new anti-deforestation regulation (EUDR) – due to come into force in December this year - has strained EU-Malaysia relations in recent months.
The law requires commodities such as palm oil, cocoa, coffee, cattle, and soy entering the EU to be verified as deforestation-free. The impact could be significant
Malaysia, a major palm oil exporter that has already lost millions of hectares of forest to palm oil plantations.
“Malaysia is a tough cookie (...) and trade relations with the EU are difficult when comes to trade and palm oil,” said Perrine Fournier, a forest campaigner at the environmental NGO Fern.
Mirroring Mercosur
But with talks now back on the table, Malaysia could negotiate for less EU red tape. According to Fournier, Malaysia may seek concessions similar to those in the recently concluded EU-Mercosur agreement with Argentina, Brazil, Paraguay, and Uruguay.
The deal includes a controversial "rebalancing mechanism" that could challenge future EU environmental measures that jeopardise agreed market access.
“Indonesia is interested in incorporating such a mechanism. Malaysia would likely have a similar position,” said Fournier. “But there are indications that the EU Commission will not put this on the table.”
For NGOs like Fern, however, the main concern is Malaysia’s push for the EU to recognise its national certification scheme, the Malaysian Sustainable Palm Oil (MSPO), as part of a future trade deal. Launched in 2019, the MSPO aims to improve the palm oil industry’s reputation crisis by certifying plantations as deforestation-free. EURACTIV
--------
Indonesia to make resource exporters hold all proceeds onshore for a year
JAKARTA, Jan 21 (Reuters) - Indonesia will require natural resource exporters to hold all proceeds onshore for at least one year, its chief economic minister said on Tuesday, a move that could boost the country's foreign exchange reserves by $90 billion a year and support the local currency.
The new requirement will apply to every export with a shipping document worth at least $250,000, starting from March 1, said Minister Airlangga Hartarto.
Under current rules, exporters of natural resources such as coal, palm oil and nickel products are required to retain just 30% of such proceeds in the domestic financial system for three months.
The office of the Coordinating Ministry for Economic Affairs said the new requirements could increase Indonesia's foreign exchange reserves by $90 billion per year. The country's reserves were $155.7 billion at end-December.
"Conversion into rupiah can increase U.S. dollar supply. And without excessive intervention by the central bank through interest rates or dollar sales, this can reduce the rupiah's volatility," Airlangga said.
The rupiah this month hit its weakest against the U.S. dollar since July.
The proceeds could be used for business operations if converted into rupiah, Airlangga told reporters, while also encouraging exporters to swap their dollars for rupiah or borrow from banks if they are reluctant to convert. Reuters
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HUL Board approves acquisition of palm undertaking
The Board of Directors of Hindustan Unilever Limited (HUL) at its meeting held today approved the acquisition of the palm undertaking of Vishwatej Oil Industries Private Limited, as a part of HUL’s Palm localisation strategy. The palm undertaking is based in the Kamareddy district of Telangana.
Palm and its derivatives are a key feedstock to manufacture a variety of HUL’s Personal Care, Beauty and Home Care products and are largely imported from Indonesia and Malaysia. HUL’s palm localisation strategy aims to build supply chain resilience for palm derivatives through backward integration. With this acquisition, HUL has taken a step forward to build infrastructure for palm under the aegis of India’s ‘National Mission on Edible Oils.’
The proposed plan involves setting up sapling nurseries, palm fresh fruit bunch collection centres and a state-of-the-art palm oil mill in the state. HUL will establish a comprehensive farmer outreach programme to provide technical assistance to farmers for growing palm oil and introduce the best-in-the-class farming practices in line with the company’s global sustainable and regenerative agriculture principles.
Rohit Jawa, CEO and Managing Director, HUL said, “This acquisition aligns with our firm belief that ‘what is good for India is good for HUL’ and gives us the opportunity to contribute to India’s National Mission of increasing domestic oilseed production and reducing import dependence.” Hindustan Unilever
--------
Exploring the wonders of African red palm oil
By Simran Jeet
African red palm oil is a dynamic, nutrient-dense vegetable oil that has held a cherished place in the hearts (and kitchens!) of West African communities for generations.
Harvested from the fruit of the oil palm tree, this superfood is making waves globally, thanks to its health-boosting properties and versatility in culinary applications.
Nutrient powerhouse
A rich source of vitamins
African red palm oil is incredibly rich in vitamins A and E, essential nutrients for healthy skin, vision, and immune function.
A single tablespoon delivers a whopping 100+% of the recommended daily intake for vitamin A and 25% for vitamin E.
This makes it a fantastic dietary addition for anyone looking to enhance their vitamin intake through natural sources.
Cardio care
Heart health benefits
Research indicates that adding African red palm oil to your diet can significantly benefit your heart health.
Its unique combination of fatty acids and potent antioxidants can help lower cholesterol levels and reduce the risk of heart disease.
And, unlike many other oils, red palm oil retains its beneficial properties under heat, making it a healthy choice for cooking. Newsbytesapp
EU and Malaysia resume free trade talks under shadow of Trump's return
The European Union and Malaysia have announced the resumption of free trade negotiations. The EU is trying to diversify its trade partnerships as Donald Trump re-enters office in the US.
"This excellent news comes at a critical time. Geopolitical tensions are rising, and the risk of instability is growing," said European Commission President Ursula von der Leyen in a statement.
Trade between the EU and Malaysia currently amounts to €45 billion annually, and an agreement would "take things to the next level," the European executive chief argued. "While others turn inwards and isolate themselves, Europe and Malaysia choose another path: establishing partnerships."
'Significant milestone'
Brussels and Kuala Lumpur had initially launched negotiations in 2010 but suspended them two years later.
Malaysian Prime Minister Anwar Ibrahim, who concluded a two-day working visit to Brussels on Monday, described the reopening of discussions as a "significant milestone."
He believes such an agreement would boost Malaysian exports, particularly in electrical and electronic products, scientific equipment and palm oil. It would also stimulate EU investments in green energy and advanced manufacturing.
The EU is troubled by threats of drastic tariff increases on European products posed by Donald Trump, who will be inaugurated for his second US presidential term on Monday. The bloc is also conscious of its need to contend with competition from China. Brussels Times
--------
EU-Malaysia trade talks resume amid deforestation, palm oil row
Malaysia may seek concessions similar to those in the recently concluded EU-Mercosur agreement.
The European Union and Malaysia announced the resumption of negotiations on a free trade agreement on Monday, breaking a years-long deadlock fuelled by disputes over palm oil-induced deforestation.
"This excellent news comes at a critical time," said European Commission President Ursula von der Leyen.
"Geopolitical tensions are escalating and the risk of instability is growing," she added.
The talks were stalled mainly because of the EU's decision to exclude palm oil-based biofuels from renewable energy classification. But, after Monday's announcement, Malaysian Prime Minister Anwar Ibrahim was quick to point the potential benefits of a trade deal for Malaysian palm oil industry which accounts for 26% of global production - the world’s largest after Indonesia.
Tensions run high
The EU's palm oil decision prompted Kuala Lumpur and Jakarta to file WTO complaints against the EU. A recent WTO ruling clarified key aspects of the dispute and upheld the EU’s right to restrict palm oil biofuels for climate objectives, which prompted the resumption of negotiations.
“This reflects a genuine commitment from both parties to advance the relationship said Lizza Bomassi, a researcher analyst on the Indo-Pacific at the EU’s Institute for Security Studies.
However, another palm oil-related legislation, the EU’s new anti-deforestation regulation (EUDR) – due to come into force in December this year - has strained EU-Malaysia relations in recent months.
The law requires commodities such as palm oil, cocoa, coffee, cattle, and soy entering the EU to be verified as deforestation-free. The impact could be significant
Malaysia, a major palm oil exporter that has already lost millions of hectares of forest to palm oil plantations.
“Malaysia is a tough cookie (...) and trade relations with the EU are difficult when comes to trade and palm oil,” said Perrine Fournier, a forest campaigner at the environmental NGO Fern.
Mirroring Mercosur
But with talks now back on the table, Malaysia could negotiate for less EU red tape. According to Fournier, Malaysia may seek concessions similar to those in the recently concluded EU-Mercosur agreement with Argentina, Brazil, Paraguay, and Uruguay.
The deal includes a controversial "rebalancing mechanism" that could challenge future EU environmental measures that jeopardise agreed market access.
“Indonesia is interested in incorporating such a mechanism. Malaysia would likely have a similar position,” said Fournier. “But there are indications that the EU Commission will not put this on the table.”
For NGOs like Fern, however, the main concern is Malaysia’s push for the EU to recognise its national certification scheme, the Malaysian Sustainable Palm Oil (MSPO), as part of a future trade deal. Launched in 2019, the MSPO aims to improve the palm oil industry’s reputation crisis by certifying plantations as deforestation-free. EURACTIV
--------
Indonesia to make resource exporters hold all proceeds onshore for a year
- New measure could add $90 bln to FX reserves, ministry says
- Retained proceeds could be converted and used
- Rupiah hit 6-month low in January
JAKARTA, Jan 21 (Reuters) - Indonesia will require natural resource exporters to hold all proceeds onshore for at least one year, its chief economic minister said on Tuesday, a move that could boost the country's foreign exchange reserves by $90 billion a year and support the local currency.
The new requirement will apply to every export with a shipping document worth at least $250,000, starting from March 1, said Minister Airlangga Hartarto.
Under current rules, exporters of natural resources such as coal, palm oil and nickel products are required to retain just 30% of such proceeds in the domestic financial system for three months.
The office of the Coordinating Ministry for Economic Affairs said the new requirements could increase Indonesia's foreign exchange reserves by $90 billion per year. The country's reserves were $155.7 billion at end-December.
"Conversion into rupiah can increase U.S. dollar supply. And without excessive intervention by the central bank through interest rates or dollar sales, this can reduce the rupiah's volatility," Airlangga said.
The rupiah this month hit its weakest against the U.S. dollar since July.
The proceeds could be used for business operations if converted into rupiah, Airlangga told reporters, while also encouraging exporters to swap their dollars for rupiah or borrow from banks if they are reluctant to convert. Reuters
--------
HUL Board approves acquisition of palm undertaking
The Board of Directors of Hindustan Unilever Limited (HUL) at its meeting held today approved the acquisition of the palm undertaking of Vishwatej Oil Industries Private Limited, as a part of HUL’s Palm localisation strategy. The palm undertaking is based in the Kamareddy district of Telangana.
Palm and its derivatives are a key feedstock to manufacture a variety of HUL’s Personal Care, Beauty and Home Care products and are largely imported from Indonesia and Malaysia. HUL’s palm localisation strategy aims to build supply chain resilience for palm derivatives through backward integration. With this acquisition, HUL has taken a step forward to build infrastructure for palm under the aegis of India’s ‘National Mission on Edible Oils.’
The proposed plan involves setting up sapling nurseries, palm fresh fruit bunch collection centres and a state-of-the-art palm oil mill in the state. HUL will establish a comprehensive farmer outreach programme to provide technical assistance to farmers for growing palm oil and introduce the best-in-the-class farming practices in line with the company’s global sustainable and regenerative agriculture principles.
Rohit Jawa, CEO and Managing Director, HUL said, “This acquisition aligns with our firm belief that ‘what is good for India is good for HUL’ and gives us the opportunity to contribute to India’s National Mission of increasing domestic oilseed production and reducing import dependence.” Hindustan Unilever
--------
Exploring the wonders of African red palm oil
By Simran Jeet
African red palm oil is a dynamic, nutrient-dense vegetable oil that has held a cherished place in the hearts (and kitchens!) of West African communities for generations.
Harvested from the fruit of the oil palm tree, this superfood is making waves globally, thanks to its health-boosting properties and versatility in culinary applications.
Nutrient powerhouse
A rich source of vitamins
African red palm oil is incredibly rich in vitamins A and E, essential nutrients for healthy skin, vision, and immune function.
A single tablespoon delivers a whopping 100+% of the recommended daily intake for vitamin A and 25% for vitamin E.
This makes it a fantastic dietary addition for anyone looking to enhance their vitamin intake through natural sources.
Cardio care
Heart health benefits
Research indicates that adding African red palm oil to your diet can significantly benefit your heart health.
Its unique combination of fatty acids and potent antioxidants can help lower cholesterol levels and reduce the risk of heart disease.
And, unlike many other oils, red palm oil retains its beneficial properties under heat, making it a healthy choice for cooking. Newsbytesapp
January 21, 2025
Indonesia-EU Biodiesel Dispute: WTO Rules in Favour of Indonesia
The World Trade Organization (WTO) ruled in favour of Indonesia in a case against the European Union (EU) involving shipments of palm oil-based biodiesel. The case started in 2019 after the EU decided that palm oil-based diesel is not considered a biofuel due to its link to deforestation. As such, its use in transport fuel across the EU would need to be phased out between 2023 and 2030.
While the WTO found fault in the way the EU prepared, published and administered its biodiesel measures, and was also found giving less favourable treatment to Indonesian biodiesel than to similar products of EU origin (such as rapeseed or soybean-based biofuels), or imported from third countries, it does not mean Indonesia should expect to see strongly rising biodiesel exports (to the EU) in the future. And, as such, it might not necessarily help to speed up Indonesia’s long-drawn trade pact negotiations with the EU (called IEU-CEPA).
After all, the WTO also stated that the underlying logic of EU measures to limit greenhouse gas emissions was lawful and that the EU has a reasonable basis to label palm oil-based biodiesel as "high risk". The WTO published its ruling on 10 January 2025. Indonesia Investments
--------
Palm oil prices to average higher in 2025 on Indonesia biodiesel demand: Reuters poll
KUALA LUMPUR, Jan 21 (Reuters) - Malaysian crude palm oil (CPO) futures are expected to average higher in 2025 than last year, as top producer Indonesia boosts palm oil-based biodiesel consumption, although competition from cheaper rivals is expected to limit the upside, a Reuters poll showed.
Benchmark palm oil prices will average 4,350 ringgit ($972.07) a metric ton this year, up 5.4% from 2024, according to a median estimate of 11 traders, analysts and industry participants. Reuters
--------
Used cooking oil fraud suspected
JAKARTA, Indonesia (Reuters) — Indonesia says its exports of used cooking oil and palm oil residue in recent years had exceeded production capacity, indicating crude palm oil had been mixed in and prompting it to issue regulations curbing shipments last week.
The world’s biggest exporter of palm oil issued a ministerial decree clamping down on shipments of used cooking oil and palm oil residue, aimed to avert a potential shortfall of crude palm oil (CPO) for domestic industries.
Trade ministry data showed exports of palm oil mill effluent (POME) and high acid palm oil residue (HAPOR) in 2023 and January-October 2024 far exceeded the Indonesian government’s estimate of total capacity of around 300,000 tonnes.
POME and HAPOR are palm oil residue products that can be used to make biofuel or fertilizer.
Shipments of both products reached 3.45 million tonnes in January-October 2024 and 4.87 million tonnes in 2023. That compares with CPO exports of 2.7 million tonnes in the first 10 months of 2024 and 3.6 million tonnes in 2023.
The ministry also said there was a 21 per cent increase in exports of POME and HAPOR between 2019 and 2023, compared with a 20 per cent drop in CPO exports in the same period.
“This justifies (the view) that the exported POME and HAPOR were not purely from residue or used CPO processing, but were also a mixture of virgin CPO,” trade minister Budi Santoso said.
Budi said availability of CPO for domestic use could be at risk without regulations to curb exports.
Authorities have previously alleged that some cooking oil sold under a government program called Minyakita had been mislabelled as used cooking oil and shipped overseas for biodiesel feedstock.
Separately, in June 2024, a group of U.S. senators alleged fraudulent used cooking oil had been shipped from China to the United States, including some cargoes that might include virgin palm oil. Producer/ Reuters
--------
Sharp increase in Italian Pome imports continue
An increase in Italian imports of palm oil mill effluent (Pome) continued in November, according to customs data.
The rise came ahead of any impact from Indonesia's decision to suspend export permits for Pome and used cooking oil (UCO).
Italian Pome imports under the 15220099 import code rose to 205,000t in January-November from 65,000t on the year. There is some lack of clarity on whether imports have increased or suppliers have improved adherence to import codes. November imports more than doubled on the year to over 12,000t (see chart).
According to Kpler data, cargoes of Pome — from Indonesia and Malaysia — continued to arrive in December and January at Italian ports that are home to hydrotreated vegetable oil (HVO) production.
Italian HVO output was reduced in the second half of the year by margins described as the worst on record. This appears to have encouraged Eni and other regional producers to undertake some planned works and trim throughput.
Kpler data show five seaborne cargoes totalling 30,000t leaving integrated Eni's 650,000 t/yr Gela HVO unit in October-December. This compares with around 90,000t shipped in the second quarter, 85,000t in the second and 70,000t in the first. Argus Media
--------
MY-UAE CEPA poised to elevate Malaysia's palm oil industry
KUALA LUIMPUR; THE Malaysian Palm Oil Council (MPOC) is calling on stakeholders in the Malaysian palm oil industry to join forces and seize the opportunities presented by the Malaysia-United Arab Emirates Comprehensive Economic Partnership Agreement (MY-UAE CEPA).
The agreement is set to bring significant benefits to the sector, primarily through the elimination or reduction of tariffs, providing Malaysian palm oil and related products with enhanced access to the UAE and other key markets.
MPOC chief executive officer Belvinder Sron emphasised the UAE's importance as a pivotal market in the Middle East.
"As a leading trade hub, the UAE serves as a gateway to major regions, including the Middle East, North Africa, and Europe. With the implementation of the MY-UAE CEPA, Malaysian exporters will benefit from zero-tariff access, enhancing the competitiveness of palm oil products across these regions," she added.
MPOC remains dedicated to enhancing the presence of Malaysian palm oil in the UAE by consolidating its position in established sectors and tapping into emerging opportunities, such as packaged products, specialty fats, and shortening. To achieve this, MPOC has planned targeted promotional initiatives in the region, including trade networking events and industry and consumer awareness campaigns. NST
--------
Malaysia's Palm Oil Sustainability Lauded by EU
KUALA LUMPUR: A senior European Union (EU) official has acknowledged the significant strides Malaysia has made in ensuring sustainability in the palm oil sector.
Plantations and Commodities Minister Datuk Seri Johari Abdul Ghani said the EU commissioner for environment, water resilience and competitive circular economy Jessika Roswall had acknowledged this during their meeting today.
The meeting in Brussels, which took place during a courtesy visit by Johari, focused on Malaysia's commitment to global sustainability and the country's progress in enhancing its palm oil industry's practices.
Roswall oversees the enforcement and implementation of EU environmental laws such as the European Union Deforestation Regulation.
Also present at the meeting was Malaysian Sustainable Palm Oil (MSPO) chief executive officer Hafizin Tajudin.
"During this meeting, I shared the latest developments in Malaysia's palm oil industry and the nation's commitment to the global sustainability agenda
"Her excellency Roswall acknowledged the efforts of Malaysia's palm oil industry in enhancing the overall sustainability of the sector, particularly the MSPO certification scheme, which ensures sustainable palm oil production," he said in a statement.
In a gesture of goodwill, Malaysia extended an invitation to Roswall to visit the country and witness first hand the operational and certification practices that uphold the industry's sustainability commitments.
It was reported that the EU's pending anti-deforestation law presents both challenges and opportunities for Malaysia's palm oil industry.
The law requires companies and traders selling soy, beef, coffee, palm oil and other products in the EU market to provide proof their supply chains do not contribute to deforestation.
Malaysia and Indonesia, the world's largest exporters of palm oil, have previously claimed that the law and implementation rules are discriminatory. New Straits Times
--------
Landmark research agreement on biodiversity monitoring
KOTA KINABALU (Jan 21): Borneo Samudera Sdn Bhd (BSSB), a subsidiary under Sawit Kinabalu Group (SKG), through its Sustainability Division (Conservation & Biodiversity Unit), has entered into a landmark five-year research agreement with Danau Girang Research and Conservation Bhd to enhance biodiversity and environmental monitoring within the Sg Pin Conservation Area (SPnCA) in Kinabatangan.
Located in the heart of Sabah’s globally renowned Kinabatangan region, the Sg Pin Conservation Area (SPnCA) is a voluntary conservation initiative by Sawit Kinabalu Group.
Covering 2,632 hectares, SPnCA serves as a vital biodiversity corridor connecting fragmented forest landscapes amidst surrounding oil palm plantations. This conservation area was formally established through a Memorandum of Understanding (MoU) between Sawit Kinabalu and the Sabah Forestry Department (SFD) in October 2017, during the 9th International Conference on the Heart of Borneo. The Borneo Post
Indonesia-EU Biodiesel Dispute: WTO Rules in Favour of Indonesia
The World Trade Organization (WTO) ruled in favour of Indonesia in a case against the European Union (EU) involving shipments of palm oil-based biodiesel. The case started in 2019 after the EU decided that palm oil-based diesel is not considered a biofuel due to its link to deforestation. As such, its use in transport fuel across the EU would need to be phased out between 2023 and 2030.
While the WTO found fault in the way the EU prepared, published and administered its biodiesel measures, and was also found giving less favourable treatment to Indonesian biodiesel than to similar products of EU origin (such as rapeseed or soybean-based biofuels), or imported from third countries, it does not mean Indonesia should expect to see strongly rising biodiesel exports (to the EU) in the future. And, as such, it might not necessarily help to speed up Indonesia’s long-drawn trade pact negotiations with the EU (called IEU-CEPA).
After all, the WTO also stated that the underlying logic of EU measures to limit greenhouse gas emissions was lawful and that the EU has a reasonable basis to label palm oil-based biodiesel as "high risk". The WTO published its ruling on 10 January 2025. Indonesia Investments
--------
Palm oil prices to average higher in 2025 on Indonesia biodiesel demand: Reuters poll
- Average price seen at 4,350 ringgit/MT in 2025, up 5.4% y/y
- Malaysia output estimated at 19.5 mln MT
- Indonesia production projected at 49.8 mln MT
KUALA LUMPUR, Jan 21 (Reuters) - Malaysian crude palm oil (CPO) futures are expected to average higher in 2025 than last year, as top producer Indonesia boosts palm oil-based biodiesel consumption, although competition from cheaper rivals is expected to limit the upside, a Reuters poll showed.
Benchmark palm oil prices will average 4,350 ringgit ($972.07) a metric ton this year, up 5.4% from 2024, according to a median estimate of 11 traders, analysts and industry participants. Reuters
--------
Used cooking oil fraud suspected
JAKARTA, Indonesia (Reuters) — Indonesia says its exports of used cooking oil and palm oil residue in recent years had exceeded production capacity, indicating crude palm oil had been mixed in and prompting it to issue regulations curbing shipments last week.
The world’s biggest exporter of palm oil issued a ministerial decree clamping down on shipments of used cooking oil and palm oil residue, aimed to avert a potential shortfall of crude palm oil (CPO) for domestic industries.
Trade ministry data showed exports of palm oil mill effluent (POME) and high acid palm oil residue (HAPOR) in 2023 and January-October 2024 far exceeded the Indonesian government’s estimate of total capacity of around 300,000 tonnes.
POME and HAPOR are palm oil residue products that can be used to make biofuel or fertilizer.
Shipments of both products reached 3.45 million tonnes in January-October 2024 and 4.87 million tonnes in 2023. That compares with CPO exports of 2.7 million tonnes in the first 10 months of 2024 and 3.6 million tonnes in 2023.
The ministry also said there was a 21 per cent increase in exports of POME and HAPOR between 2019 and 2023, compared with a 20 per cent drop in CPO exports in the same period.
“This justifies (the view) that the exported POME and HAPOR were not purely from residue or used CPO processing, but were also a mixture of virgin CPO,” trade minister Budi Santoso said.
Budi said availability of CPO for domestic use could be at risk without regulations to curb exports.
Authorities have previously alleged that some cooking oil sold under a government program called Minyakita had been mislabelled as used cooking oil and shipped overseas for biodiesel feedstock.
Separately, in June 2024, a group of U.S. senators alleged fraudulent used cooking oil had been shipped from China to the United States, including some cargoes that might include virgin palm oil. Producer/ Reuters
--------
Sharp increase in Italian Pome imports continue
An increase in Italian imports of palm oil mill effluent (Pome) continued in November, according to customs data.
The rise came ahead of any impact from Indonesia's decision to suspend export permits for Pome and used cooking oil (UCO).
Italian Pome imports under the 15220099 import code rose to 205,000t in January-November from 65,000t on the year. There is some lack of clarity on whether imports have increased or suppliers have improved adherence to import codes. November imports more than doubled on the year to over 12,000t (see chart).
According to Kpler data, cargoes of Pome — from Indonesia and Malaysia — continued to arrive in December and January at Italian ports that are home to hydrotreated vegetable oil (HVO) production.
Italian HVO output was reduced in the second half of the year by margins described as the worst on record. This appears to have encouraged Eni and other regional producers to undertake some planned works and trim throughput.
Kpler data show five seaborne cargoes totalling 30,000t leaving integrated Eni's 650,000 t/yr Gela HVO unit in October-December. This compares with around 90,000t shipped in the second quarter, 85,000t in the second and 70,000t in the first. Argus Media
--------
MY-UAE CEPA poised to elevate Malaysia's palm oil industry
KUALA LUIMPUR; THE Malaysian Palm Oil Council (MPOC) is calling on stakeholders in the Malaysian palm oil industry to join forces and seize the opportunities presented by the Malaysia-United Arab Emirates Comprehensive Economic Partnership Agreement (MY-UAE CEPA).
The agreement is set to bring significant benefits to the sector, primarily through the elimination or reduction of tariffs, providing Malaysian palm oil and related products with enhanced access to the UAE and other key markets.
MPOC chief executive officer Belvinder Sron emphasised the UAE's importance as a pivotal market in the Middle East.
"As a leading trade hub, the UAE serves as a gateway to major regions, including the Middle East, North Africa, and Europe. With the implementation of the MY-UAE CEPA, Malaysian exporters will benefit from zero-tariff access, enhancing the competitiveness of palm oil products across these regions," she added.
MPOC remains dedicated to enhancing the presence of Malaysian palm oil in the UAE by consolidating its position in established sectors and tapping into emerging opportunities, such as packaged products, specialty fats, and shortening. To achieve this, MPOC has planned targeted promotional initiatives in the region, including trade networking events and industry and consumer awareness campaigns. NST
--------
Malaysia's Palm Oil Sustainability Lauded by EU
KUALA LUMPUR: A senior European Union (EU) official has acknowledged the significant strides Malaysia has made in ensuring sustainability in the palm oil sector.
Plantations and Commodities Minister Datuk Seri Johari Abdul Ghani said the EU commissioner for environment, water resilience and competitive circular economy Jessika Roswall had acknowledged this during their meeting today.
The meeting in Brussels, which took place during a courtesy visit by Johari, focused on Malaysia's commitment to global sustainability and the country's progress in enhancing its palm oil industry's practices.
Roswall oversees the enforcement and implementation of EU environmental laws such as the European Union Deforestation Regulation.
Also present at the meeting was Malaysian Sustainable Palm Oil (MSPO) chief executive officer Hafizin Tajudin.
"During this meeting, I shared the latest developments in Malaysia's palm oil industry and the nation's commitment to the global sustainability agenda
"Her excellency Roswall acknowledged the efforts of Malaysia's palm oil industry in enhancing the overall sustainability of the sector, particularly the MSPO certification scheme, which ensures sustainable palm oil production," he said in a statement.
In a gesture of goodwill, Malaysia extended an invitation to Roswall to visit the country and witness first hand the operational and certification practices that uphold the industry's sustainability commitments.
It was reported that the EU's pending anti-deforestation law presents both challenges and opportunities for Malaysia's palm oil industry.
The law requires companies and traders selling soy, beef, coffee, palm oil and other products in the EU market to provide proof their supply chains do not contribute to deforestation.
Malaysia and Indonesia, the world's largest exporters of palm oil, have previously claimed that the law and implementation rules are discriminatory. New Straits Times
--------
Landmark research agreement on biodiversity monitoring
KOTA KINABALU (Jan 21): Borneo Samudera Sdn Bhd (BSSB), a subsidiary under Sawit Kinabalu Group (SKG), through its Sustainability Division (Conservation & Biodiversity Unit), has entered into a landmark five-year research agreement with Danau Girang Research and Conservation Bhd to enhance biodiversity and environmental monitoring within the Sg Pin Conservation Area (SPnCA) in Kinabatangan.
Located in the heart of Sabah’s globally renowned Kinabatangan region, the Sg Pin Conservation Area (SPnCA) is a voluntary conservation initiative by Sawit Kinabalu Group.
Covering 2,632 hectares, SPnCA serves as a vital biodiversity corridor connecting fragmented forest landscapes amidst surrounding oil palm plantations. This conservation area was formally established through a Memorandum of Understanding (MoU) between Sawit Kinabalu and the Sabah Forestry Department (SFD) in October 2017, during the 9th International Conference on the Heart of Borneo. The Borneo Post
January 20, 2025
Malaysia and EU resume free trade negotiations
KUALA LUMPUR, Jan 20 (Reuters) - Malaysia and the European Union have announced the resumption of negotiations for a free trade deal, 12 years after talks were put on hold over a disagreement related to the Southeast Asian country's palm oil industry.
The decision was made following Prime Minister Anwar Ibrahim's working visit to Brussels on Sunday.
"The free trade agreement is expected to unlock immense benefits across multiple sectors of Malaysia's economy while strengthening the global supply chain in critical sectors," Anwar's office said in a statement on Monday.
A free trade deal would boost EU investments in Malaysia in areas like manufacturing and green energy, it said, while bolstering exports to the EU market such as electrical and electronic products, optical and scientific equipment and palm oil and its derivatives.
Malaysia is the world's second-largest palm oil exporter.
European Commission President Ursula von der Leyen said a trade deal with Malaysia was about more than economic exchanges.
"We will aim to build our partnership on robust commitments on labour rights and climate and environmental protection," she said in a statement. Reuters
--------
Statement by President von der Leyen on the re-launch of the negotiations for an EU-Malaysia Free Trade Agreement
Today, Europe and Malaysia are taking an important step forward together. On the occasion of the visit of Prime Minister Anwar bin Ibrahim to Europe, I'm pleased to announce the re-launch of negotiations for an EU-Malaysia Free Trade Agreement.
This excellent news comes at a critical time. Geopolitical tensions are escalating, and the risk of instability is growing. While some turn inwards towards isolation and fragmentation, Europe and Malaysia are choosing a different path: reaching out, building partnerships, and creating new opportunities for our people.
Europe and Malaysia share a commitment to a rules-based international order, economic openness, sustainable development, and regional stability. Europe remains dedicated to advancing a free and open Indo-Pacific, where both sides share significant interests and responsibilities.
As our third-largest trading partner in ASEAN and the current chair, Malaysia plays a central role in shaping the bloc's direction. Today's announcement reaffirms Europe's commitment to strengthening ties with both Malaysia and ASEAN as a whole.
A free trade agreement between Europe and Malaysia would take our trade relationship to the next level. With trade between us already worth €45 billion annually, we will unlock even greater benefits for businesses and consumers, especially for industrial products.
Free and fair trade means better choices and prices. It also means less risk, as integrating and diversifying supply chains strengthens our economic security.
Like all Europe's free trade agreements, this is about more than economic exchanges. We will aim to build our partnership on robust commitments on labour rights and climate and environmental protection. Once concluded, this agreement will provide a platform of dialogue on issues the EU cares deeply about, including respect for human rights. We are showing that sustainability and free trade can and must go hand in hand.
Now that we have restarted these negotiations, I have full confidence in our teams to deliver an agreement we can all be proud of. Let's get to work. Europa
--------
Malaysian Palm Oil Exports to the EU: 2024 Trends and 2025
First Half Outlook
The European Union (EU) is a key market for oils and fats exporters due to its significant demand and strategic importance in global trade. Despite being one of the largest producers of edible oils worldwide, the EU's domestic production falls short of meeting its consumption needs. MPOC
---------
Championing sustainability and innovation globally
AS we leave 2024 further behind, FGV Holdings Bhd (FGV) can look back on a journey underpinned by its commitment to sustainability, ethical practices, pursuit of innovation and responsibility towards community empowerment.
Commitment to responsible, innovative growth
In line with this commitment, FGV substantiates its dedication to delivering value to stakeholders with the release of its Q3 FY2024 results which highlight a 26% revenue growth to RM6.18bil from RM4.91bil in Q3 FY2023.
Profit After Tax and Minority Interests (PATAMI) also rose to RM87mil from RM32mil. Back in July 2024, FGV launched its enhanced Sustainability Framework, underscoring its dedication to sustainable growth.
The presence of Deputy Prime Minister Datuk Seri Fadillah Yusof, who is also the Energy Transition and Water Transformation Minister, underscored the importance of FGV’s enhanced Sustainability Framework and the Group’s contribution towards national efforts in realising the relevant Sustainable Development Goals (SDGs).
As a key player in the global palm oil scene, FGV has long recognised the importance of balancing economic success and environmental responsibility as well as its responsibility to the Felda settlers and smallholders who produce 70% of its palm oil fresh fruit bunches (FFB).
The five-pillared framework reflects the company’s commitment to strengthening sustainability practices across its supply chain, promoting innovation and championing governance, reducing its carbon footprint, and promoting social welfare within the communities it serves. By focusing on sustainable growth, FGV aims to lead by example in transforming the agricultural industry and supporting Malaysia’s broader sustainability goals.
As a responsible company, FGV is committed to promoting gender equality and empowering women within its operations chain, in line with the company’s diversity, equity, and inclusion (DEI) agenda. The StarMY
--------
Protect the planet and its experts - The Jakarta Post
The work of environmental experts has been increasingly criminalized in Indonesia in recent years, jeopardizing not only individual freedoms but also the nation’s ability to address its most pressing ecological challenges. The case of Bambang Hero Saharjo, a leading environmental scholar from IPB University, underscores the dangers of allowing vested interests to intimidate those who work to protect Indonesia’s natural heritage. Bambang has long been a pillar of environmental advocacy in the country, providing expert testimony in hundreds of legal cases involving illegal land clearance and environmental damage.
His calculation of the damages caused by corruption in the tin mining industry, producing a figure of Rp 271 trillion (US$16.5 billion), have brought him under fire. A police report filed by an organization in Bangka Belitung accuses him of going beyond his authority in estimating state losses. But the claim disregards the established legal framework, which not only recognizes but protects the role of experts such as Bambang in judicial proceedings.
This is not the first time the professor has faced retaliation. In 2018, palm oil companies targeted him with a multibillion dollar lawsuit after he exposed illegal burning practices.
These attempts to silence him are emblematic of a broader pattern in which environmental advocates and scientists are increasingly subject to legal harassment, strategic lawsuits and intimidation. Such actions undermine the role of science and independent inquiry in addressing environmental issues. Indonesia’s environmental challenges are vast. The nation continues to grapple with deforestation, pollution and biodiversity loss. At the same time, illegal practices such as land burning and unregulated mining pose threats not only to ecosystems but also to the lives and livelihoods of millions of citizens. The Jakarta Post
--------
FPKMS Part of Agrarian Reform Through Land Redistribution, Not Opening New Land
InfoSAWIT, JAKARTA – FPKMS (Facilitation of Community Garden Development in the Surrounding Area) is an integral part of agrarian reform that aims to redistribute land for farmers in oil palm plantations. However, its implementation is not easy, considering the differences in regulations between the Ministry of Agriculture and the Ministry of ATR/BPN.
According to Marselinus Andry from the Advocacy Department of the Palm Oil Farmers Union (SPKS), FPKMS should utilize existing concessions or HGU (Cultivation Rights) of 20%, not open new land that could threaten the conversion of food land and increase deforestation. However, the inconsistency of regulations between government agencies, as highlighted in the new circular from the Directorate General of Plantations, poses its own challenges in its implementation in the field.
"There needs to be a clearer clarification regarding the implementation of the law that regulates the obligations of HGU holders not only related to plantation business partnerships, but also FPKMS," said Marselinus in his statement to InfoSAWIT
FPKMS, as stipulated in Circular Letter Number 21/SE/PI.400/E/01/2025 from the Ministry of Agriculture, requires plantation companies to facilitate the development of community gardens around 20% of the total area of their business permits. However, the main obstacle faced is the limited land around the plantation.
To address this, the circular provides flexibility for companies to carry out their obligations through other productive business partnerships, including the cultivation of other commodities such as rice, in accordance with the government's program to achieve food self-sufficiency. Info Sawit
Malaysia and EU resume free trade negotiations
KUALA LUMPUR, Jan 20 (Reuters) - Malaysia and the European Union have announced the resumption of negotiations for a free trade deal, 12 years after talks were put on hold over a disagreement related to the Southeast Asian country's palm oil industry.
The decision was made following Prime Minister Anwar Ibrahim's working visit to Brussels on Sunday.
"The free trade agreement is expected to unlock immense benefits across multiple sectors of Malaysia's economy while strengthening the global supply chain in critical sectors," Anwar's office said in a statement on Monday.
A free trade deal would boost EU investments in Malaysia in areas like manufacturing and green energy, it said, while bolstering exports to the EU market such as electrical and electronic products, optical and scientific equipment and palm oil and its derivatives.
Malaysia is the world's second-largest palm oil exporter.
European Commission President Ursula von der Leyen said a trade deal with Malaysia was about more than economic exchanges.
"We will aim to build our partnership on robust commitments on labour rights and climate and environmental protection," she said in a statement. Reuters
--------
Statement by President von der Leyen on the re-launch of the negotiations for an EU-Malaysia Free Trade Agreement
Today, Europe and Malaysia are taking an important step forward together. On the occasion of the visit of Prime Minister Anwar bin Ibrahim to Europe, I'm pleased to announce the re-launch of negotiations for an EU-Malaysia Free Trade Agreement.
This excellent news comes at a critical time. Geopolitical tensions are escalating, and the risk of instability is growing. While some turn inwards towards isolation and fragmentation, Europe and Malaysia are choosing a different path: reaching out, building partnerships, and creating new opportunities for our people.
Europe and Malaysia share a commitment to a rules-based international order, economic openness, sustainable development, and regional stability. Europe remains dedicated to advancing a free and open Indo-Pacific, where both sides share significant interests and responsibilities.
As our third-largest trading partner in ASEAN and the current chair, Malaysia plays a central role in shaping the bloc's direction. Today's announcement reaffirms Europe's commitment to strengthening ties with both Malaysia and ASEAN as a whole.
A free trade agreement between Europe and Malaysia would take our trade relationship to the next level. With trade between us already worth €45 billion annually, we will unlock even greater benefits for businesses and consumers, especially for industrial products.
Free and fair trade means better choices and prices. It also means less risk, as integrating and diversifying supply chains strengthens our economic security.
Like all Europe's free trade agreements, this is about more than economic exchanges. We will aim to build our partnership on robust commitments on labour rights and climate and environmental protection. Once concluded, this agreement will provide a platform of dialogue on issues the EU cares deeply about, including respect for human rights. We are showing that sustainability and free trade can and must go hand in hand.
Now that we have restarted these negotiations, I have full confidence in our teams to deliver an agreement we can all be proud of. Let's get to work. Europa
--------
Malaysian Palm Oil Exports to the EU: 2024 Trends and 2025
First Half Outlook
The European Union (EU) is a key market for oils and fats exporters due to its significant demand and strategic importance in global trade. Despite being one of the largest producers of edible oils worldwide, the EU's domestic production falls short of meeting its consumption needs. MPOC
---------
Championing sustainability and innovation globally
AS we leave 2024 further behind, FGV Holdings Bhd (FGV) can look back on a journey underpinned by its commitment to sustainability, ethical practices, pursuit of innovation and responsibility towards community empowerment.
Commitment to responsible, innovative growth
In line with this commitment, FGV substantiates its dedication to delivering value to stakeholders with the release of its Q3 FY2024 results which highlight a 26% revenue growth to RM6.18bil from RM4.91bil in Q3 FY2023.
Profit After Tax and Minority Interests (PATAMI) also rose to RM87mil from RM32mil. Back in July 2024, FGV launched its enhanced Sustainability Framework, underscoring its dedication to sustainable growth.
The presence of Deputy Prime Minister Datuk Seri Fadillah Yusof, who is also the Energy Transition and Water Transformation Minister, underscored the importance of FGV’s enhanced Sustainability Framework and the Group’s contribution towards national efforts in realising the relevant Sustainable Development Goals (SDGs).
As a key player in the global palm oil scene, FGV has long recognised the importance of balancing economic success and environmental responsibility as well as its responsibility to the Felda settlers and smallholders who produce 70% of its palm oil fresh fruit bunches (FFB).
The five-pillared framework reflects the company’s commitment to strengthening sustainability practices across its supply chain, promoting innovation and championing governance, reducing its carbon footprint, and promoting social welfare within the communities it serves. By focusing on sustainable growth, FGV aims to lead by example in transforming the agricultural industry and supporting Malaysia’s broader sustainability goals.
As a responsible company, FGV is committed to promoting gender equality and empowering women within its operations chain, in line with the company’s diversity, equity, and inclusion (DEI) agenda. The StarMY
--------
Protect the planet and its experts - The Jakarta Post
The work of environmental experts has been increasingly criminalized in Indonesia in recent years, jeopardizing not only individual freedoms but also the nation’s ability to address its most pressing ecological challenges. The case of Bambang Hero Saharjo, a leading environmental scholar from IPB University, underscores the dangers of allowing vested interests to intimidate those who work to protect Indonesia’s natural heritage. Bambang has long been a pillar of environmental advocacy in the country, providing expert testimony in hundreds of legal cases involving illegal land clearance and environmental damage.
His calculation of the damages caused by corruption in the tin mining industry, producing a figure of Rp 271 trillion (US$16.5 billion), have brought him under fire. A police report filed by an organization in Bangka Belitung accuses him of going beyond his authority in estimating state losses. But the claim disregards the established legal framework, which not only recognizes but protects the role of experts such as Bambang in judicial proceedings.
This is not the first time the professor has faced retaliation. In 2018, palm oil companies targeted him with a multibillion dollar lawsuit after he exposed illegal burning practices.
These attempts to silence him are emblematic of a broader pattern in which environmental advocates and scientists are increasingly subject to legal harassment, strategic lawsuits and intimidation. Such actions undermine the role of science and independent inquiry in addressing environmental issues. Indonesia’s environmental challenges are vast. The nation continues to grapple with deforestation, pollution and biodiversity loss. At the same time, illegal practices such as land burning and unregulated mining pose threats not only to ecosystems but also to the lives and livelihoods of millions of citizens. The Jakarta Post
--------
FPKMS Part of Agrarian Reform Through Land Redistribution, Not Opening New Land
InfoSAWIT, JAKARTA – FPKMS (Facilitation of Community Garden Development in the Surrounding Area) is an integral part of agrarian reform that aims to redistribute land for farmers in oil palm plantations. However, its implementation is not easy, considering the differences in regulations between the Ministry of Agriculture and the Ministry of ATR/BPN.
According to Marselinus Andry from the Advocacy Department of the Palm Oil Farmers Union (SPKS), FPKMS should utilize existing concessions or HGU (Cultivation Rights) of 20%, not open new land that could threaten the conversion of food land and increase deforestation. However, the inconsistency of regulations between government agencies, as highlighted in the new circular from the Directorate General of Plantations, poses its own challenges in its implementation in the field.
"There needs to be a clearer clarification regarding the implementation of the law that regulates the obligations of HGU holders not only related to plantation business partnerships, but also FPKMS," said Marselinus in his statement to InfoSAWIT
FPKMS, as stipulated in Circular Letter Number 21/SE/PI.400/E/01/2025 from the Ministry of Agriculture, requires plantation companies to facilitate the development of community gardens around 20% of the total area of their business permits. However, the main obstacle faced is the limited land around the plantation.
To address this, the circular provides flexibility for companies to carry out their obligations through other productive business partnerships, including the cultivation of other commodities such as rice, in accordance with the government's program to achieve food self-sufficiency. Info Sawit
January 18, 2025
Palm Oil Discrimination In Europe Ends, Airlangga: Becomes A New Opportunity
Coordinating Minister for the Economy Airlangga Hartarto revealed that Indonesia won an important victory in the World Trade Organization (WTO) regarding palm oil policy, which confirmed Europe's discrimination against Indonesian palm oil products.
Airlangga emphasized that this is proof that Indonesia is able to compete and win international cases and Europe has been proven to discriminate, especially against palm oil and biodiesel products.
According to Airlangga, this is because Europe's policy, which previously prioritized rapeed and soyabean-based biodiesel. So it is hoped that it can open up opportunities for biodiesel based on palm oil (CPO) more widely to the global market.
"So that the biodiesel that we are now taking as a policy, like it or not, the world must accept that not only rape-based biodiesel, soyabean and others are based on CPO," he explained to the media crew, Friday, January 17.
In addition, Airlangga conveyed that the discrimination carried out by the WTO also influenced the European Union's policy on products free of deforestation or European Union on Deforestation-free Regulation (EUDR).
Airlangga said that Europe decided to postpone the implementation of the EUDR, which was originally planned for this year to 2026, provided an opportunity for Indonesia and Malaysia to strengthen their implementation strategy so that palm oil would no longer be discriminated against. VOI
--------
EU to Revise Palm Oil Rules After WTO Ruling in Favor of Indonesia
Jakarta. The European Union (EU) announced plans to revise its biofuel policies after the World Trade Organization (WTO) ruled that parts of its Renewable Energy Directive (RED II) unfairly discriminated against Indonesia's palm oil exports. The ruling, published on Jan. 10, is seen as a major win for Indonesia in its long-standing dispute with the EU over biofuel trade restrictions.
While the WTO upheld the EU’s right to pursue climate and environmental goals, it identified flaws in how RED II was implemented. Specifically, the WTO found the EU’s Delegated Act—which classified palm oil as a high-risk source for indirect land-use change (ILUC)—to be inconsistent with international trade rules. French tax incentives that excluded palm oil-based biofuels while favoring rapeseed and soybean alternatives were also deemed discriminatory.
In its statement on Jan. 10, The EU has pledged to address these shortcomings, which were already under review as part of its regulatory framework, and align its policies with WTO obligations. The adjustments are expected to be finalized within 60 days unless the ruling is appealed.
Indonesia, the world’s largest palm oil producer, has argued that RED II unfairly targets palm oil while benefiting European-grown biofuels. The ruling strengthens Jakarta’s position in ongoing trade negotiations and broader disputes over EU policies, including the European Union Deforestation Regulation (EUDR), which was recently delayed until December 2025.
“This victory proves that Indonesia can fight and win against discriminatory practices,” Chief Economic Affairs Airlangga Hartarto said in Jakarta. “It also underscores the legitimacy of palm oil-based biodiesel alongside other biofuel alternatives like rapeseed and soybean.”
The WTO also criticized the EU for failing to properly assess data used to classify palm oil as high-risk and for weaknesses in its certification process for low ILUC-risk biofuels. These findings bolster Indonesia’s efforts to ensure fair treatment of its exports, especially as 41 percent of the country’s palm oil industry is supported by smallholder farmers.
Airlangga called the ruling an opportunity to strengthen cooperation with Malaysia, another major palm oil exporter, to prevent further discrimination. “This clears the path for resolving trade issues, including the stalled Indonesia-EU CEPA,” he said, referring to the Comprehensive Economic Partnership Agreement. Jakarta Globe
--------
Indonesia welcomes WTO ruling against EU discrimination
JAKARTA, Jan. 17 (Xinhua) -- Indonesia welcomed a World Trade Organization (WTO) ruling that supports the archipelago nation in its dispute over "palm oil discrimination" by the European Union (EU), government ministers said on Friday.
"This victory demonstrates that in the case of palm oil and biodiesel, Europe is recognized for discriminating against Indonesia. So, the biodiesel that we are now taking as a policy, the world has to accept," Airlangga Hartarto, coordinating minister for economic affairs, said.
In addition to providing justice, Airlangga noted that this ruling serves as a foundation for expanding regional collaboration with Malaysia and other palm oil-producing countries, as well as enhancing globally recognized sustainability standards.
Airlangga emphasized the necessity of maintaining this momentum to overcome barriers in the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) negotiations.
Budi Santoso, minister of trade, said that this victory sends a strong message to the European Union to avoid implementing discriminatory regulations.
"We hope that other trading partner countries will not implement similar policies that could hinder global trade," said Budi.
In its ruling, the WTO determined that the EU not only failed to properly evaluate data related to the high land use conversion risk category for palm-based biofuels but also unfairly advantaged rapeseed and soybean-based biofuels. Xinhua
--------
CPO-derived biodiesel in RI's energy security strategies: Task force
Jakarta (ANTARA) - The Task Force for the Acceleration of Downstreaming and National Energy Security stated that biodiesel produced from crude palm oil (CPO) features among the strategies included in the energy security roadmap.
According to the task force’s head, Bahlil Lahadalia, the roadmap aligns with President Prabowo Subianto's directive to enhance energy security.
"While we accelerate our oil lifting, we also increase the use of biodiesel. Currently, we implement the mandatory 40 percent biodiesel (B40) program, and later, we will have B50,” he noted in a press conference in Jakarta on Friday.
B40 is a blend of 60 percent diesel fuel and 40 percent palm oil-based biofuel, which includes methanol and ethanol.
"For example, we need 2.3 million tons of methanol for the B40 program. As the directive from the president, we will build a domestic (methanol) factory in Bojonegoro, East Java, with gas as the raw material,” Lahadalia explained.
Related news: Govt to check CPO availability for B40 implementation
Meanwhile, sugarcane will be used to produce ethanol. The government is preparing to build an ethanol factory in Java or Merauke, South Papua.
"Hence, based on the roadmap, we want to produce the components (of the biodiesel mixture) in the country,” he noted.
Prabowo has issued Presidential Decree No.1 of 2025, establishing the task force, which comprises several ministers, the attorney general, and the chief of the National Police.
Energy and Mineral Resources Minister Bahlil Lahadalia has been named as chair of the task force, while Minister Wahid has been appointed as deputy chair for land provision.
According to the presidential decree, the task force is mandated to fast-track downstream efforts across various sectors while bolstering Indonesia's energy security.
The decree, signed by the president on January 3, stipulates that the government prioritize the downstreaming of minerals, coal, oil, natural gas, agricultural yields, forestry products, and fishery commodities to boost their value.
Related news: Indonesia eyes 8 percent growth via coal, mineral downstreaming Antara News
--------
EU and Mexico seal updated trade deal
Mexico is the EU’s second largest trading partner in Latin America.
The EU has concluded negotiations with Mexico on an updated trade agreement, the European Commission announced in a press release on Friday.
Mexico is the EU's second largest trading partner in Latin America after Brazil.
Negotiations for a new modernised agreement started in May 2016 and an agreement in principle on trade aspects was reached in 2018, but was never ratified. Currently, trade and cooperation relations between the EU and the Latin American country are governed by a 2000 Global Agreement.
"The EU and Mexico are already trusted partners," said Commission President Ursula von der Leyen. “Now, we want to deepen our cooperation even further, strongly benefiting our people and economies,” she added, noting that farmers and agri-food companies will also gain new export markets.
The announcement comes just over a month after the EU signed a similar deal with the Mercosur bloc (Argentina, Brazil, Paraguay and Uruguay), which has been strongly contested by the farming sector.
The Commission said the trade elements of the agreement will boost “an already-thriving” relationship. EU-Mexico trade in goods reached €82 billion in 2023, while two-way trade in services reached €22 billion in 2022.
The agreement will also allow the removal of high tariffs on EU exports of food and agricultural products, including cheese, poultry, pork, pasta, apples, jams, chocolate and wine, as well as protecting traditional European products.
The deal includes a chapter on trade and sustainability that sets out binding commitments on labour rights, environmental protection, climate change and responsible business products, the Commission said. It also includes a dispute settlement mechanism to ensure the enforcement of these provisions. Euractiv
Palm Oil Discrimination In Europe Ends, Airlangga: Becomes A New Opportunity
Coordinating Minister for the Economy Airlangga Hartarto revealed that Indonesia won an important victory in the World Trade Organization (WTO) regarding palm oil policy, which confirmed Europe's discrimination against Indonesian palm oil products.
Airlangga emphasized that this is proof that Indonesia is able to compete and win international cases and Europe has been proven to discriminate, especially against palm oil and biodiesel products.
According to Airlangga, this is because Europe's policy, which previously prioritized rapeed and soyabean-based biodiesel. So it is hoped that it can open up opportunities for biodiesel based on palm oil (CPO) more widely to the global market.
"So that the biodiesel that we are now taking as a policy, like it or not, the world must accept that not only rape-based biodiesel, soyabean and others are based on CPO," he explained to the media crew, Friday, January 17.
In addition, Airlangga conveyed that the discrimination carried out by the WTO also influenced the European Union's policy on products free of deforestation or European Union on Deforestation-free Regulation (EUDR).
Airlangga said that Europe decided to postpone the implementation of the EUDR, which was originally planned for this year to 2026, provided an opportunity for Indonesia and Malaysia to strengthen their implementation strategy so that palm oil would no longer be discriminated against. VOI
--------
EU to Revise Palm Oil Rules After WTO Ruling in Favor of Indonesia
Jakarta. The European Union (EU) announced plans to revise its biofuel policies after the World Trade Organization (WTO) ruled that parts of its Renewable Energy Directive (RED II) unfairly discriminated against Indonesia's palm oil exports. The ruling, published on Jan. 10, is seen as a major win for Indonesia in its long-standing dispute with the EU over biofuel trade restrictions.
While the WTO upheld the EU’s right to pursue climate and environmental goals, it identified flaws in how RED II was implemented. Specifically, the WTO found the EU’s Delegated Act—which classified palm oil as a high-risk source for indirect land-use change (ILUC)—to be inconsistent with international trade rules. French tax incentives that excluded palm oil-based biofuels while favoring rapeseed and soybean alternatives were also deemed discriminatory.
In its statement on Jan. 10, The EU has pledged to address these shortcomings, which were already under review as part of its regulatory framework, and align its policies with WTO obligations. The adjustments are expected to be finalized within 60 days unless the ruling is appealed.
Indonesia, the world’s largest palm oil producer, has argued that RED II unfairly targets palm oil while benefiting European-grown biofuels. The ruling strengthens Jakarta’s position in ongoing trade negotiations and broader disputes over EU policies, including the European Union Deforestation Regulation (EUDR), which was recently delayed until December 2025.
“This victory proves that Indonesia can fight and win against discriminatory practices,” Chief Economic Affairs Airlangga Hartarto said in Jakarta. “It also underscores the legitimacy of palm oil-based biodiesel alongside other biofuel alternatives like rapeseed and soybean.”
The WTO also criticized the EU for failing to properly assess data used to classify palm oil as high-risk and for weaknesses in its certification process for low ILUC-risk biofuels. These findings bolster Indonesia’s efforts to ensure fair treatment of its exports, especially as 41 percent of the country’s palm oil industry is supported by smallholder farmers.
Airlangga called the ruling an opportunity to strengthen cooperation with Malaysia, another major palm oil exporter, to prevent further discrimination. “This clears the path for resolving trade issues, including the stalled Indonesia-EU CEPA,” he said, referring to the Comprehensive Economic Partnership Agreement. Jakarta Globe
--------
Indonesia welcomes WTO ruling against EU discrimination
JAKARTA, Jan. 17 (Xinhua) -- Indonesia welcomed a World Trade Organization (WTO) ruling that supports the archipelago nation in its dispute over "palm oil discrimination" by the European Union (EU), government ministers said on Friday.
"This victory demonstrates that in the case of palm oil and biodiesel, Europe is recognized for discriminating against Indonesia. So, the biodiesel that we are now taking as a policy, the world has to accept," Airlangga Hartarto, coordinating minister for economic affairs, said.
In addition to providing justice, Airlangga noted that this ruling serves as a foundation for expanding regional collaboration with Malaysia and other palm oil-producing countries, as well as enhancing globally recognized sustainability standards.
Airlangga emphasized the necessity of maintaining this momentum to overcome barriers in the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) negotiations.
Budi Santoso, minister of trade, said that this victory sends a strong message to the European Union to avoid implementing discriminatory regulations.
"We hope that other trading partner countries will not implement similar policies that could hinder global trade," said Budi.
In its ruling, the WTO determined that the EU not only failed to properly evaluate data related to the high land use conversion risk category for palm-based biofuels but also unfairly advantaged rapeseed and soybean-based biofuels. Xinhua
--------
CPO-derived biodiesel in RI's energy security strategies: Task force
Jakarta (ANTARA) - The Task Force for the Acceleration of Downstreaming and National Energy Security stated that biodiesel produced from crude palm oil (CPO) features among the strategies included in the energy security roadmap.
According to the task force’s head, Bahlil Lahadalia, the roadmap aligns with President Prabowo Subianto's directive to enhance energy security.
"While we accelerate our oil lifting, we also increase the use of biodiesel. Currently, we implement the mandatory 40 percent biodiesel (B40) program, and later, we will have B50,” he noted in a press conference in Jakarta on Friday.
B40 is a blend of 60 percent diesel fuel and 40 percent palm oil-based biofuel, which includes methanol and ethanol.
"For example, we need 2.3 million tons of methanol for the B40 program. As the directive from the president, we will build a domestic (methanol) factory in Bojonegoro, East Java, with gas as the raw material,” Lahadalia explained.
Related news: Govt to check CPO availability for B40 implementation
Meanwhile, sugarcane will be used to produce ethanol. The government is preparing to build an ethanol factory in Java or Merauke, South Papua.
"Hence, based on the roadmap, we want to produce the components (of the biodiesel mixture) in the country,” he noted.
Prabowo has issued Presidential Decree No.1 of 2025, establishing the task force, which comprises several ministers, the attorney general, and the chief of the National Police.
Energy and Mineral Resources Minister Bahlil Lahadalia has been named as chair of the task force, while Minister Wahid has been appointed as deputy chair for land provision.
According to the presidential decree, the task force is mandated to fast-track downstream efforts across various sectors while bolstering Indonesia's energy security.
The decree, signed by the president on January 3, stipulates that the government prioritize the downstreaming of minerals, coal, oil, natural gas, agricultural yields, forestry products, and fishery commodities to boost their value.
Related news: Indonesia eyes 8 percent growth via coal, mineral downstreaming Antara News
--------
EU and Mexico seal updated trade deal
Mexico is the EU’s second largest trading partner in Latin America.
The EU has concluded negotiations with Mexico on an updated trade agreement, the European Commission announced in a press release on Friday.
Mexico is the EU's second largest trading partner in Latin America after Brazil.
Negotiations for a new modernised agreement started in May 2016 and an agreement in principle on trade aspects was reached in 2018, but was never ratified. Currently, trade and cooperation relations between the EU and the Latin American country are governed by a 2000 Global Agreement.
"The EU and Mexico are already trusted partners," said Commission President Ursula von der Leyen. “Now, we want to deepen our cooperation even further, strongly benefiting our people and economies,” she added, noting that farmers and agri-food companies will also gain new export markets.
The announcement comes just over a month after the EU signed a similar deal with the Mercosur bloc (Argentina, Brazil, Paraguay and Uruguay), which has been strongly contested by the farming sector.
The Commission said the trade elements of the agreement will boost “an already-thriving” relationship. EU-Mexico trade in goods reached €82 billion in 2023, while two-way trade in services reached €22 billion in 2022.
The agreement will also allow the removal of high tariffs on EU exports of food and agricultural products, including cheese, poultry, pork, pasta, apples, jams, chocolate and wine, as well as protecting traditional European products.
The deal includes a chapter on trade and sustainability that sets out binding commitments on labour rights, environmental protection, climate change and responsible business products, the Commission said. It also includes a dispute settlement mechanism to ensure the enforcement of these provisions. Euractiv
January 17, 2025
Indonesia expects EU to adjust palm oil biofuel stance after EU ruling
INDONESIA welcomed a ruling by the World Trade Organization (WTO) in a case against European Union on palm oil-based biodiesel, expecting the bloc to adjust its regulations to comply with the ruling.
Indonesia, the world’s largest palm oil producer, brought the case to the WTO dispute body in 2019 after the EU decided that palm oil-based diesel would not be considered a biofuel due to its link to deforestation and its use in transport fuel would be phased out between 2023 and 2030.
Indonesia argued that the EU is using climate issues as a pretext to implement protectionist trade measures.
“The Indonesian government welcomes the WTO panel decision ... We hope that in the future, other trading partner countries will not implement similar policies that have the potential to hinder the flow of global trade,” Trade Minister Budi Santoso said on Thursday (Jan 16).
The three-person panel ruled last week that the underlying logic of the EU measures to limit greenhouse gas emissions was legitimate and that the EU had a reasonable basis to designate biodiesel from palm oil as “high risk”.
However, the panel found fault in the way the EU had prepared, published and administered its measures, such as by not having a timely review of data to determine high risk and not meeting certain transparency obligations.
The EU was also found giving less favourable treatment to palm oil-based biofuel from Indonesia than accorded to like products of EU origin or imported from third countries.
The Indonesian trade ministry said that EU will be compelled to adjust its policy to comply with the ruling, adding that Indonesia will closely monitor EU’s regulatory changes to meet with the WTO body’s recommendations.
The EU embassy in Jakarta did not immediately response to a request for comments. REUTERS
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EU to Revise Palm Oil Rules After WTO Ruling in Favor of Indonesia
Jakarta. The European Union (EU) announced plans to revise its biofuel policies after the World Trade Organization (WTO) ruled that parts of its Renewable Energy Directive (RED II) unfairly discriminated against Indonesia's palm oil exports. The ruling, published on Jan. 10, is seen as a major win for Indonesia in its long-standing dispute with the EU over biofuel trade restrictions.
While the WTO upheld the EU’s right to pursue climate and environmental goals, it identified flaws in how RED II was implemented. Specifically, the WTO found the EU’s Delegated Act—which classified palm oil as a high-risk source for indirect land-use change (ILUC)—to be inconsistent with international trade rules. French tax incentives that excluded palm oil-based biofuels while favoring rapeseed and soybean alternatives were also deemed discriminatory.
In its statement on Jan. 10, The EU has pledged to address these shortcomings, which were already under review as part of its regulatory framework, and align its policies with WTO obligations. The adjustments are expected to be finalized within 60 days unless the ruling is appealed.
Indonesia, the world’s largest palm oil producer, has argued that RED II unfairly targets palm oil while benefiting European-grown biofuels. The ruling strengthens Jakarta’s position in ongoing trade negotiations and broader disputes over EU policies, including the European Union Deforestation Regulation (EUDR), which was recently delayed until December 2025.
“This victory proves that Indonesia can fight and win against discriminatory practices,” Chief Economic Affairs Airlangga Hartarto said in Jakarta. “It also underscores the legitimacy of palm oil-based biodiesel alongside other biofuel alternatives like rapeseed and soybean.”
The WTO also criticized the EU for failing to properly assess data used to classify palm oil as high-risk and for weaknesses in its certification process for low ILUC-risk biofuels. These findings bolster Indonesia’s efforts to ensure fair treatment of its exports, especially as 41 percent of the country’s palm oil industry is supported by smallholder farmers.
Airlangga called the ruling an opportunity to strengthen cooperation with Malaysia, another major palm oil exporter, to prevent further discrimination. “This clears the path for resolving trade issues, including the stalled Indonesia-EU CEPA,” he said, referring to the Comprehensive Economic Partnership Agreement.
The dispute, initiated by Indonesia in 2019, has drawn international attention to the tension between trade liberalization and environmental protection. A parallel case brought by Malaysia resulted in a similar WTO ruling in April 2024, further pressuring the EU to revise its policies. Jakarta Globe
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Malaysia to co-chair Fact Dialogue until 2027
KUALA LUMPUR: Malaysia has been appointed co-chair, alongside the United Kingdom, for the Forest, Agriculture, and Commodity Trade (Fact) Dialogue, a position it will hold from this year through 2027.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the appointment underscores Malaysia's success in promoting sustainability in global commodity production.
He made the announcement following a meeting in London with UK Climate Minister Kerry McCarthy, who commended Malaysia's ongoing efforts in advancing sustainability within the commodity sector.
"The UK Climate Minister acknowledged Malaysia's commitment and expressed interest in using our country as a model for other producing nations still reluctant to adopt sustainable practices, " said Johari following the meeting.
The Fact Dialogue was launched at the COP26 Climate Summit in Glasgow, Scotland, in 2021.
The initiative focuses on four key priorities: market access, support for smallholders, effectiveness, and transparency, alongside the promotion of research, development, and innovation in the commodity industry.
"We aim to demonstrate that Malaysia's palm oil is sustainable. If the UK recognises our certification, other European countries will likely follow suit, acknowledging that our MSPO certification can help ensure sustainability in commodity production," Johari added.
The Fact Dialogue brings together 28 countries, including 16 commodity-producing nations, such as those involved in palm oil, rubber, cocoa, and timber, as well as 12 commodity-importing countries. New Straits Times
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Biodiesel Key to Indonesia’s Energy Security, Task Force Says
Jakarta. The Energy Security Task Force said Friday that palm oil-based biodiesel would be key to Indonesia’s goal of making sure that its population can have uninterrupted access to affordable energy.
President Prabowo Subianto earlier this month established a special task force dedicated to promoting national energy security and the domestic processing of the country’s natural resources.
The task force’s head Bahlil Lahadalia briefed reporters on how the government planned on achieving energy security. Indonesia is increasing its palm oil-based content share of its biodiesel from 35 percent to 40 percent this year in a policy better known as B40. The Southeast Asian country plans to gradually increase the palm oil content in this renewable fuel in the future.
“Aside from lifting more oil, we want to use palm oil-based biodiesel. We are already implementing the B40 policy in 2025, and we will implement the B50 mandate in the future,” Bahlil, who is also the energy minister, said in Jakarta, as reported by the state news agency Antara.
Biodiesel comes from the chemical reaction of methanol and vegetable oils or animal fats used as a replacement for diesel fuel. According to Bahlil, Indonesia needs approximately 2.3 million tons of methanol for its biodiesel program.
Bahlil said that Prabowo had instructed the methanol production to take place in Indonesia. This way, Indonesia can create greater added value to its economy. Jakarta Globe
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Indonesia Wins Against EU Lawsuit at WTO, Rejects Palm Oil and Biofuel Discrimination
The Indonesian government has urged the European Union not to be arbitrary in implementing discriminatory policies, such as those related to the palm oil trade dispute.
Bisnis.com, JAKARTA — Indonesia has won a trade dispute over the European Union's discrimination against Indonesian palm oil at the World Trade Organization's Dispute Settlement Body (DSB) WTO . Minister of Trade (Mendag) Budi Santoso said that the government welcomed the WTO Panel Decision on January 10, 2025, regarding the trade dispute related to palm oil that had been fought for several years. "The Indonesian government welcomes the WTO Panel Decision on the palm oil trade dispute with the European Union which is linked to the issue of climate change, as a basis for the European Union not to be arbitrary in implementing discriminatory policies," he said in an official statement, quoted on Friday (17/1/2025). Budi hopes that other trading partner countries will not implement similar policies that have the potential to hinder global trade flows, especially palm oil. Ekonomi Business
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In WTO Report, Indonesian Government Proves EU Discriminates Against Palm Oil
sawitsetara.co – SEMARANG – The Indonesian government has succeeded in proving discrimination committed by the European Union (EU) in the palm oil trade dispute at the Dispute Settlement Body of the World Trade Organization ( DSB WTO).
This was stated in the WTO Panel Decision Report ( panel report ) which was circulated on January 10, 2025.
Minister of Trade (Mendag), Budi Santoso, said that the Indonesian Government welcomes the WTO Panel Decision on the trade dispute related to palm oil.
The Indonesian government welcomes the WTO Panel Decision on the palm oil trade dispute with the European Union which is linked to the issue of climate change, as a basis for the European Union not to be arbitrary in implementing discriminatory policies.
"We hope that in the future, other trading partner countries will not implement similar policies that have the potential to hinder global trade flows," said Budi, quoting the Antara page.
In general, the WTO Panel stated that the EU discriminated by giving less favorable treatment to palm oil-based biofuel from Indonesia compared to similar products originating from the EU such as rapeseed and sunflower.
The EU also differentiates treatment and gives more benefits to similar products imported from other countries, such as soybeans.
In addition, the WTO Panel assessed that the EU failed to review the data used to determine biofuels with the high-risk oil palm land conversion category ( high ILUC-risk ) and there were shortcomings in the preparation and application of the criteria and procedures for low ILUC-risk certification in the Renewable Energy Directive (RED) II.
Therefore, the EU is obliged to adjust the policy in the Delegated Regulation which the Panel considers to be in violation of WTO rules.
"Indonesia sees the policy as a form of protectionism under the pretext of using environmental sustainability issues that are often echoed by the European Union," said Budi. Sawit Setara
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EU Defeated, Prabowo Government Wins Palm Oil Dispute at WTO
JAKARTA, SAWIT INDONESIA – The Indonesian government has successfully proven discrimination by the European Union (EU) in the palm oil trade dispute at the World Trade Organization Dispute Settlement Body (DSB WTO). This is stated in the WTO Panel Decision Report (panel report) circulated on January 10, 2025.
Indonesian Minister of Trade Budi Santoso, or Mendag Busan, said that the Indonesian Government welcomes the WTO Panel Decision on the palm oil trade dispute. "The Indonesian Government welcomes the WTO Panel Decision on the palm oil trade dispute with the European Union which is linked to the issue of climate change, as a basis for the European Union not to be arbitrary in implementing discriminatory policies. We hope that in the future, other trading partner countries will not implement similar policies that have the potential to hinder the flow of global trade," said Mendag Busan. Sawit Indonesia
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BRICS – new key export market of Indonesia
Indonesia’s non-oil and gas exports to the five major BRICS nations reached 84.37 billion USD in 2024, accounting for nearly 34% of the country’s total non-oil and gas export value, according to the country’s Central Statistics Agency (BPS).
Jakarta (VNA) – Indonesia’s non-oil and gas exports to the five major BRICS nations reached 84.37 billion USD in 2024, accounting for nearly 34% of the country’s total non-oil and gas export value, according to the country’s Central Statistics Agency (BPS).
According to acting head of BPS Amalia Adininggar Widyasanti, Indonesia's expanding trade relations with BRICS nations present a significant economic opportunity following its recent entry into the bloc.
Exports to the five BRICS nations including China, India, South Africa, Brazil and Russia contributed 33.9% to Indonesia’s overall non-oil and gas exports in 2024.
China remains the top destination for Indonesian exports, with 24.2% of the total, mainly driven by iron and steel exports. India follows as the second-largest market, accounting for 8.17% with key exports including coal and crude palm oil.
Indonesia’s main exports to Brazil, Russia, and South Africa include animal and vegetable fats and oils.
The country sees potential for increasing exports to South Africa, where it currently has the smallest share of trade among the BRICS nations. Exports to South Africa amounted to 0.78 billion USD in 2024.
Meanwhile, exports to Brazil and Russia stood at 1.7 billion USD and 1.31 billion USD, respectively.
According to BPS, Indonesia’s trade balance for 2024 showed a surplus of 31.04 billion USD, down 5.84 billion USD from 2023. The non-oil and gas trade balance posted a surplus of 51.44 billion USD, while the oil and gas sector recorded a 20.4 billion USD deficit, though this was a slight improvement from the previous year.
Experts forecast that the BRICS nations will continue to strategic partners in supporting the growth of Indonesia's non-oil and gas exports this year. Vietnam Plus
Indonesia expects EU to adjust palm oil biofuel stance after EU ruling
INDONESIA welcomed a ruling by the World Trade Organization (WTO) in a case against European Union on palm oil-based biodiesel, expecting the bloc to adjust its regulations to comply with the ruling.
Indonesia, the world’s largest palm oil producer, brought the case to the WTO dispute body in 2019 after the EU decided that palm oil-based diesel would not be considered a biofuel due to its link to deforestation and its use in transport fuel would be phased out between 2023 and 2030.
Indonesia argued that the EU is using climate issues as a pretext to implement protectionist trade measures.
“The Indonesian government welcomes the WTO panel decision ... We hope that in the future, other trading partner countries will not implement similar policies that have the potential to hinder the flow of global trade,” Trade Minister Budi Santoso said on Thursday (Jan 16).
The three-person panel ruled last week that the underlying logic of the EU measures to limit greenhouse gas emissions was legitimate and that the EU had a reasonable basis to designate biodiesel from palm oil as “high risk”.
However, the panel found fault in the way the EU had prepared, published and administered its measures, such as by not having a timely review of data to determine high risk and not meeting certain transparency obligations.
The EU was also found giving less favourable treatment to palm oil-based biofuel from Indonesia than accorded to like products of EU origin or imported from third countries.
The Indonesian trade ministry said that EU will be compelled to adjust its policy to comply with the ruling, adding that Indonesia will closely monitor EU’s regulatory changes to meet with the WTO body’s recommendations.
The EU embassy in Jakarta did not immediately response to a request for comments. REUTERS
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EU to Revise Palm Oil Rules After WTO Ruling in Favor of Indonesia
Jakarta. The European Union (EU) announced plans to revise its biofuel policies after the World Trade Organization (WTO) ruled that parts of its Renewable Energy Directive (RED II) unfairly discriminated against Indonesia's palm oil exports. The ruling, published on Jan. 10, is seen as a major win for Indonesia in its long-standing dispute with the EU over biofuel trade restrictions.
While the WTO upheld the EU’s right to pursue climate and environmental goals, it identified flaws in how RED II was implemented. Specifically, the WTO found the EU’s Delegated Act—which classified palm oil as a high-risk source for indirect land-use change (ILUC)—to be inconsistent with international trade rules. French tax incentives that excluded palm oil-based biofuels while favoring rapeseed and soybean alternatives were also deemed discriminatory.
In its statement on Jan. 10, The EU has pledged to address these shortcomings, which were already under review as part of its regulatory framework, and align its policies with WTO obligations. The adjustments are expected to be finalized within 60 days unless the ruling is appealed.
Indonesia, the world’s largest palm oil producer, has argued that RED II unfairly targets palm oil while benefiting European-grown biofuels. The ruling strengthens Jakarta’s position in ongoing trade negotiations and broader disputes over EU policies, including the European Union Deforestation Regulation (EUDR), which was recently delayed until December 2025.
“This victory proves that Indonesia can fight and win against discriminatory practices,” Chief Economic Affairs Airlangga Hartarto said in Jakarta. “It also underscores the legitimacy of palm oil-based biodiesel alongside other biofuel alternatives like rapeseed and soybean.”
The WTO also criticized the EU for failing to properly assess data used to classify palm oil as high-risk and for weaknesses in its certification process for low ILUC-risk biofuels. These findings bolster Indonesia’s efforts to ensure fair treatment of its exports, especially as 41 percent of the country’s palm oil industry is supported by smallholder farmers.
Airlangga called the ruling an opportunity to strengthen cooperation with Malaysia, another major palm oil exporter, to prevent further discrimination. “This clears the path for resolving trade issues, including the stalled Indonesia-EU CEPA,” he said, referring to the Comprehensive Economic Partnership Agreement.
The dispute, initiated by Indonesia in 2019, has drawn international attention to the tension between trade liberalization and environmental protection. A parallel case brought by Malaysia resulted in a similar WTO ruling in April 2024, further pressuring the EU to revise its policies. Jakarta Globe
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Malaysia to co-chair Fact Dialogue until 2027
KUALA LUMPUR: Malaysia has been appointed co-chair, alongside the United Kingdom, for the Forest, Agriculture, and Commodity Trade (Fact) Dialogue, a position it will hold from this year through 2027.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the appointment underscores Malaysia's success in promoting sustainability in global commodity production.
He made the announcement following a meeting in London with UK Climate Minister Kerry McCarthy, who commended Malaysia's ongoing efforts in advancing sustainability within the commodity sector.
"The UK Climate Minister acknowledged Malaysia's commitment and expressed interest in using our country as a model for other producing nations still reluctant to adopt sustainable practices, " said Johari following the meeting.
The Fact Dialogue was launched at the COP26 Climate Summit in Glasgow, Scotland, in 2021.
The initiative focuses on four key priorities: market access, support for smallholders, effectiveness, and transparency, alongside the promotion of research, development, and innovation in the commodity industry.
"We aim to demonstrate that Malaysia's palm oil is sustainable. If the UK recognises our certification, other European countries will likely follow suit, acknowledging that our MSPO certification can help ensure sustainability in commodity production," Johari added.
The Fact Dialogue brings together 28 countries, including 16 commodity-producing nations, such as those involved in palm oil, rubber, cocoa, and timber, as well as 12 commodity-importing countries. New Straits Times
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Biodiesel Key to Indonesia’s Energy Security, Task Force Says
Jakarta. The Energy Security Task Force said Friday that palm oil-based biodiesel would be key to Indonesia’s goal of making sure that its population can have uninterrupted access to affordable energy.
President Prabowo Subianto earlier this month established a special task force dedicated to promoting national energy security and the domestic processing of the country’s natural resources.
The task force’s head Bahlil Lahadalia briefed reporters on how the government planned on achieving energy security. Indonesia is increasing its palm oil-based content share of its biodiesel from 35 percent to 40 percent this year in a policy better known as B40. The Southeast Asian country plans to gradually increase the palm oil content in this renewable fuel in the future.
“Aside from lifting more oil, we want to use palm oil-based biodiesel. We are already implementing the B40 policy in 2025, and we will implement the B50 mandate in the future,” Bahlil, who is also the energy minister, said in Jakarta, as reported by the state news agency Antara.
Biodiesel comes from the chemical reaction of methanol and vegetable oils or animal fats used as a replacement for diesel fuel. According to Bahlil, Indonesia needs approximately 2.3 million tons of methanol for its biodiesel program.
Bahlil said that Prabowo had instructed the methanol production to take place in Indonesia. This way, Indonesia can create greater added value to its economy. Jakarta Globe
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Indonesia Wins Against EU Lawsuit at WTO, Rejects Palm Oil and Biofuel Discrimination
The Indonesian government has urged the European Union not to be arbitrary in implementing discriminatory policies, such as those related to the palm oil trade dispute.
Bisnis.com, JAKARTA — Indonesia has won a trade dispute over the European Union's discrimination against Indonesian palm oil at the World Trade Organization's Dispute Settlement Body (DSB) WTO . Minister of Trade (Mendag) Budi Santoso said that the government welcomed the WTO Panel Decision on January 10, 2025, regarding the trade dispute related to palm oil that had been fought for several years. "The Indonesian government welcomes the WTO Panel Decision on the palm oil trade dispute with the European Union which is linked to the issue of climate change, as a basis for the European Union not to be arbitrary in implementing discriminatory policies," he said in an official statement, quoted on Friday (17/1/2025). Budi hopes that other trading partner countries will not implement similar policies that have the potential to hinder global trade flows, especially palm oil. Ekonomi Business
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In WTO Report, Indonesian Government Proves EU Discriminates Against Palm Oil
sawitsetara.co – SEMARANG – The Indonesian government has succeeded in proving discrimination committed by the European Union (EU) in the palm oil trade dispute at the Dispute Settlement Body of the World Trade Organization ( DSB WTO).
This was stated in the WTO Panel Decision Report ( panel report ) which was circulated on January 10, 2025.
Minister of Trade (Mendag), Budi Santoso, said that the Indonesian Government welcomes the WTO Panel Decision on the trade dispute related to palm oil.
The Indonesian government welcomes the WTO Panel Decision on the palm oil trade dispute with the European Union which is linked to the issue of climate change, as a basis for the European Union not to be arbitrary in implementing discriminatory policies.
"We hope that in the future, other trading partner countries will not implement similar policies that have the potential to hinder global trade flows," said Budi, quoting the Antara page.
In general, the WTO Panel stated that the EU discriminated by giving less favorable treatment to palm oil-based biofuel from Indonesia compared to similar products originating from the EU such as rapeseed and sunflower.
The EU also differentiates treatment and gives more benefits to similar products imported from other countries, such as soybeans.
In addition, the WTO Panel assessed that the EU failed to review the data used to determine biofuels with the high-risk oil palm land conversion category ( high ILUC-risk ) and there were shortcomings in the preparation and application of the criteria and procedures for low ILUC-risk certification in the Renewable Energy Directive (RED) II.
Therefore, the EU is obliged to adjust the policy in the Delegated Regulation which the Panel considers to be in violation of WTO rules.
"Indonesia sees the policy as a form of protectionism under the pretext of using environmental sustainability issues that are often echoed by the European Union," said Budi. Sawit Setara
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EU Defeated, Prabowo Government Wins Palm Oil Dispute at WTO
JAKARTA, SAWIT INDONESIA – The Indonesian government has successfully proven discrimination by the European Union (EU) in the palm oil trade dispute at the World Trade Organization Dispute Settlement Body (DSB WTO). This is stated in the WTO Panel Decision Report (panel report) circulated on January 10, 2025.
Indonesian Minister of Trade Budi Santoso, or Mendag Busan, said that the Indonesian Government welcomes the WTO Panel Decision on the palm oil trade dispute. "The Indonesian Government welcomes the WTO Panel Decision on the palm oil trade dispute with the European Union which is linked to the issue of climate change, as a basis for the European Union not to be arbitrary in implementing discriminatory policies. We hope that in the future, other trading partner countries will not implement similar policies that have the potential to hinder the flow of global trade," said Mendag Busan. Sawit Indonesia
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BRICS – new key export market of Indonesia
Indonesia’s non-oil and gas exports to the five major BRICS nations reached 84.37 billion USD in 2024, accounting for nearly 34% of the country’s total non-oil and gas export value, according to the country’s Central Statistics Agency (BPS).
Jakarta (VNA) – Indonesia’s non-oil and gas exports to the five major BRICS nations reached 84.37 billion USD in 2024, accounting for nearly 34% of the country’s total non-oil and gas export value, according to the country’s Central Statistics Agency (BPS).
According to acting head of BPS Amalia Adininggar Widyasanti, Indonesia's expanding trade relations with BRICS nations present a significant economic opportunity following its recent entry into the bloc.
Exports to the five BRICS nations including China, India, South Africa, Brazil and Russia contributed 33.9% to Indonesia’s overall non-oil and gas exports in 2024.
China remains the top destination for Indonesian exports, with 24.2% of the total, mainly driven by iron and steel exports. India follows as the second-largest market, accounting for 8.17% with key exports including coal and crude palm oil.
Indonesia’s main exports to Brazil, Russia, and South Africa include animal and vegetable fats and oils.
The country sees potential for increasing exports to South Africa, where it currently has the smallest share of trade among the BRICS nations. Exports to South Africa amounted to 0.78 billion USD in 2024.
Meanwhile, exports to Brazil and Russia stood at 1.7 billion USD and 1.31 billion USD, respectively.
According to BPS, Indonesia’s trade balance for 2024 showed a surplus of 31.04 billion USD, down 5.84 billion USD from 2023. The non-oil and gas trade balance posted a surplus of 51.44 billion USD, while the oil and gas sector recorded a 20.4 billion USD deficit, though this was a slight improvement from the previous year.
Experts forecast that the BRICS nations will continue to strategic partners in supporting the growth of Indonesia's non-oil and gas exports this year. Vietnam Plus
January 16, 2025
Uzma Bhd successfully launches high-resolution earth observation satellite
KUALA LUMPUR: Uzma Berhad made history by successfully launching its first Earth observation satellite, UZMA SAT-1, at 3.09 am Malaysian time from the Vandenberg Space Force Base, California, USA, using SpaceX’s Falcon 9 rocket.
Geospatial AI Chief Executive Officer Mohammad Fadhli Jamaluddin said that UZMA SAT-1, now in low Earth orbit at approximately 500 kilometres altitude, is capable of producing high-resolution images with spatial resolution between 50 and 70 centimetres, enabling it to detect small objects like vehicles with clarity.
“This satellite is part of 25 satellites owned by Uzma’s technology partner, Satellogic, allowing observations up to five times a day at the same location,” he said during the UZMA SAT-1 Launch Ceremony at Menara Uzma here today.
He explained that the satellite is equipped with a high-tech camera featuring multi-spectral sensors, including RGB (red, green, blue) and near-infrared sensors, which provide detailed data for various applications.
“RGB sensors provide images visible to the naked eye, while infrared sensors can detect elements such as plant chlorophyll and soil moisture that are not directly visible,” he added.
Fadhli highlighted that UZMA SAT-1 is designed to support various sectors in Malaysia, including agriculture, plantations, disaster management, and environmental monitoring. The SunMY
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Malaysia, UK discuss elevating relations to strategic partnership
LONDON: Prime Minister Datuk Seri Anwar Ibrahim today met his United Kingdom (UK) counterpart, Sir Keir Starmer, and discussed about elevating the relations between both countries to strategic partnership covering all spheres.
“The focus and the fundamentals is of course economics, but also defence and education,” he told reporters after meeting Starmer at No. 10, Downing Street, on Wednesday.
Anwar, who is also the Finance Minister, said Malaysian ministers and their UK counterparts will immediately set up teams to try and work together, particularly in the context of not only Malaysia but also ASEAN.
Malaysia is the current chair of the 10-member ASEAN bloc.
According to Malaysian officials, both leaders also discussed cooperation in the fields of green energy, artificial intelligence and digitalisation.
“This is the first visit to Europe as ASEAN chair (and) I took the available opportunity to express Malaysia’s readiness to welcome more investors and form a new economic synergy,” Anwar said.
He added that during the meeting, he also invited Starmer to visit Malaysia.
On Monday, Malaysian High Commissioner to the UK and Northern Ireland Zakri Jaafar had said Malaysian products, particularly palm oil, were expected to benefit from tariff-free access in the United Kingdom (UK) under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trade agreement.
He said this was possible because the UK formally joined the CPTPP last December. The SunMY
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Pay attention to perennial crops’ sustainable development potential, urge scientists
These under-researched crops can yield big wins for people and the planet – if we get policies right
Perennial woody crops—that is, those with a life cycle of at least three years, such as coffee, cocoa, grapevines, olive trees and oil palm—span about 183 million hectares across the planet, produce about a gigaton of food per year and are critical to diets and economies across the globe.
Right now, the intensified monocultural cultivation of these crops frequently contributes to environmental degradation and deforestation, leading to biodiversity loss and exacerbating climate change.
But, as an international team of scientists says in a just-published Perspective piece in the journal Nature Sustainability, such crops—effectively managed and incentivized—could be a key part of the solution to current sustainable development challenges.
“Perennial crops hold significant potential that must be harnessed to contribute to climate change mitigation efforts such as REDD+ [the UNFCCC effort to reduce emissions from deforestation and forest degradation; and conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries] and achieve the Sustainable Development Goals (SDGs),” said Denis J. Sonwa, the director of research, data and impact (RDI) at World Resources Institute (WRI) Africa, former senior scientist at the Center for International Forestry Research and World Agroforestry (CIFOR-ICRAF), and a co-author of the piece.
“They are an essential part of the solution in the global agenda and deserve more attention than they have so far received.”
Because they stay in the ground over long periods of time—often with a multi-layered, forest-like structure, extensive root systems, and abundant litter—perennial crops such as cocoa agroforests can provide a relatively stable habitat that supports high levels of biodiversity. For instance, cocoa agroforestry systems can host around 200 other tree species and exceed forests in bird diversity.
Perennial crops can also serve as wildlife corridors and buffers for protected areas. What’s more, since perennial crops tend to be less mechanized than their annual counterparts—especially when part of complex systems like agroforestry—they can provide crucial employment opportunities for people in rural communities, alongside shoring up food security, stashing carbon and helping to boost nutritional diversity.
However, making the most of perennial crops’ sustainable development potential will require increased policy and research focus on these crops and what they have to offer. “With a few exceptions, perennial cropping systems have received limited attention within the global agricultural policy framework,” the researchers say: in that context, annual crops—particularly wheat, maize and rice—remain stubbornly in the spotlight.
The authors posit three priorities for policy development in this area: regulation and economic incentives to encourage biodiversity-positive management practices; stricter regional land-use planning alongside international trade regulation efforts for some perennial crops grown in tropical biodiversity hotspots (e.g., cocoa, coffee and oil palm); and a holistic, multidimensional approach that integrates tools across the food chain into policy design.
They also state that more research is needed to understand the socio-economic and ecological dimensions of perennial crops and to tease out precisely “how to maximize benefits in some components (for example, farmer profitability or rural development) without compromising others (such as biodiversity conservation).” For instance, recent research in the Congo Basin found a link between higher incomes from cocoa and increased risk of deforestation, suggesting the need for zoning and incentives to combat this effect.
Key aspects requiring further research include building an integrated understanding of crop production’s social, economic and ecological dimensions; finding out how potential solutions at small scales might work at larger scales; and reflecting society-wide on the biodiversity impacts of consuming non-local and non-essential products.
To achieve the SDGs, the authors make the following three points: international trade agreements must focus on the entire supply chain; we must accept that each agricultural system has its particular problems and needs, and one policy will not fit them all; and policies cannot work in isolation from society and local communities. “Instead, a socio-cultural and economic context that facilitates the evolution and development of green and equitable policies should be fostered,” they state.
“For instance,” explained Sonwa, “perennial crops such as cocoa can play a vital role in climate change responses if their value chains are effectively structured through appropriate policies, institutional arrangements, and sound management practices from establishment to post-harvest.”
“These approaches, which include effective and efficient cocoa value chain management, can help mobilize local communities around sustainable forest-agricultural land use planning, mimic local forest structures and species through complex multistrata agroforestry systems, and contribute to carbon storage,” he said.
“Additionally, these cocoa agroforestry systems can provide multiple income sources—from cocoa, timber, and non-timber forest products, PES (Payment for Environmental Services)—which can enhance farmers’ livelihoods and serve as a source of resilience against various shocks, including climate change and variability,” Sonwa continued.
“Therefore, they can contribute to both climate change mitigation efforts (such as REDD+) and adaptation in the agricultural-forest landscapes of the tropics, such as the Congo Basin.”
Acknowledgements
Sonwa’s contribution to this study was made possible by financial support from NORAD for the CIFOR GCS-REDD+ (Global Comparative Study on REDD+) project. CIFOR
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Ecoscience Launches Eco-Plasma•HO Solution To Address Challenges In Palm Oil Mill Effluent
Integrated palm oil milling services provider, Ecoscience International Bhd has launched an innovative effluent water treatment solution, Eco-Plasma•HO to address the challenges of palm oil mill effluent (POME), wastewater generated during palm oil milling process that requires effective treatment before discharging into watercourses due to its highly polluting properties.
Ecoscience Managing Director Wong Choi Ong said the solution tackles pollutants that are not effectively removed by traditional biological wastewater treatment methods, enabling more sustainable and effective wastewater management practices.
“Unlike conventional methods, Eco-Plasma•HO operates without additional chemicals or biological agents, enabling it to achieve zero liquid discharge or minimum liquid discharge as well as minimal rejection water to zero harmful byproducts are produced.
“As such, the treated water can be safely reused for various purposes, including cooling towers in chemical and power plants, process water in manufacturing, and boiler feedwater,” Wong said, adding that this versatility extends the benefits of Eco-Plasma•HO beyond palm oil mills and refineries to diverse industries, including oleochemical, semiconductor, chemical, petrochemical, food and beverage, and general industrial sectors.
Eco-Plasma•HO is a patent-pending water treatment solution developed by Ecoscience in collaboration with its Singapore partner, GreenRay Group. It adopts Pulsed Plasma Advanced Oxidation Process that utilises non-thermal wet plasma technology to generate hydroxyl radicals within water.
These highly reactive radicals effectively break down a wide range of contaminants, such as metalloids, industrial pollutants, organic compounds, and harmful microorganisms, into harmless compounds.
“Eco-Plasma•HO has demonstrated its efficacy and is currently operational in several key industries with a Johor-based oil palm plantation company being one of the early adopters for its proof-of-concept POME Polishing Plant.
Additionally, the solution has been successfully implemented in diverse settings, including an oilfield plant in China, a real estate development in Singapore for its chilled water system, and a glove manufacturing facility in Malaysia, showcasing its versatility and effectiveness in managing industrial wastewater,” Wong said while highlighting that Eco-Plasma•HO is both cost-effective and energy-efficient, offering a low-maintenance, eco-friendly alternative for wastewater management. Business Today
--------
Sarawak Oil Palms eyes RM1.5 mil revenue with AvantHealth product’s debut in China
KUALA LUMPUR (Jan 16): Sarawak Oil Palms Bhd (KL:SOP) is targeting a revenue of RMB 2.4 million (RM1.5 million) as its flagship product, AvantHealth Avtriee Tocotrienols, makes its debut in the Chinese market.
Sarawak Oil Palms chief operating officer Eric Kiu Kwong Seng said the premium tocotrienol product produced by the company’s unit, Avanstar International Sdn Bhd, has successfully penetrated most of China’s e-commerce platforms beginning this month.
“We are targeting sales of around 10,000 bottles of AvantHealth Avtriee this year.
“We are proud to deliver high-quality Malaysian products to the global stage, starting with this significant step into the Chinese market,” he told reporters after the flag-off ceremony of AvantHealth Avtriee’s first shipment from Malaysia to China on Thursday.
Tocotrienol, a form of vitamin E abundant in palm oil, has significant health benefits, including reducing inflammation and acting as an antioxidant.
Meanwhile, Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said Thursday’s flag-off of AvantHealth Avtriee Tocotrienols shipment to China exemplifies efforts to elevate Malaysia’s palm oil industry beyond its traditional applications.
“With the collaborative efforts of the Malaysian and Chinese governments and enterprises, the General Administration of Customs China granted full approval in March 2024 for tocotrienols to be used in food applications within China.
He said the ministry is steadfast in its commitment to advancing Malaysia’s palm oil industry beyond traditional applications, emphasising innovation, sustainability, and value creation.
“High-value products like Avtriee Tocotrienols exemplify the transformative potential of palm oil as a versatile and sustainable natural resource.
“Our proactive engagement with international markets, particularly China, reinforces Malaysia’s position as a trusted global leader in sustainable palm oil production, and opens new opportunities for economic growth and international partnerships,” he added. The EdgeMY
Uzma Bhd successfully launches high-resolution earth observation satellite
KUALA LUMPUR: Uzma Berhad made history by successfully launching its first Earth observation satellite, UZMA SAT-1, at 3.09 am Malaysian time from the Vandenberg Space Force Base, California, USA, using SpaceX’s Falcon 9 rocket.
Geospatial AI Chief Executive Officer Mohammad Fadhli Jamaluddin said that UZMA SAT-1, now in low Earth orbit at approximately 500 kilometres altitude, is capable of producing high-resolution images with spatial resolution between 50 and 70 centimetres, enabling it to detect small objects like vehicles with clarity.
“This satellite is part of 25 satellites owned by Uzma’s technology partner, Satellogic, allowing observations up to five times a day at the same location,” he said during the UZMA SAT-1 Launch Ceremony at Menara Uzma here today.
He explained that the satellite is equipped with a high-tech camera featuring multi-spectral sensors, including RGB (red, green, blue) and near-infrared sensors, which provide detailed data for various applications.
“RGB sensors provide images visible to the naked eye, while infrared sensors can detect elements such as plant chlorophyll and soil moisture that are not directly visible,” he added.
Fadhli highlighted that UZMA SAT-1 is designed to support various sectors in Malaysia, including agriculture, plantations, disaster management, and environmental monitoring. The SunMY
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Malaysia, UK discuss elevating relations to strategic partnership
LONDON: Prime Minister Datuk Seri Anwar Ibrahim today met his United Kingdom (UK) counterpart, Sir Keir Starmer, and discussed about elevating the relations between both countries to strategic partnership covering all spheres.
“The focus and the fundamentals is of course economics, but also defence and education,” he told reporters after meeting Starmer at No. 10, Downing Street, on Wednesday.
Anwar, who is also the Finance Minister, said Malaysian ministers and their UK counterparts will immediately set up teams to try and work together, particularly in the context of not only Malaysia but also ASEAN.
Malaysia is the current chair of the 10-member ASEAN bloc.
According to Malaysian officials, both leaders also discussed cooperation in the fields of green energy, artificial intelligence and digitalisation.
“This is the first visit to Europe as ASEAN chair (and) I took the available opportunity to express Malaysia’s readiness to welcome more investors and form a new economic synergy,” Anwar said.
He added that during the meeting, he also invited Starmer to visit Malaysia.
On Monday, Malaysian High Commissioner to the UK and Northern Ireland Zakri Jaafar had said Malaysian products, particularly palm oil, were expected to benefit from tariff-free access in the United Kingdom (UK) under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trade agreement.
He said this was possible because the UK formally joined the CPTPP last December. The SunMY
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Pay attention to perennial crops’ sustainable development potential, urge scientists
These under-researched crops can yield big wins for people and the planet – if we get policies right
Perennial woody crops—that is, those with a life cycle of at least three years, such as coffee, cocoa, grapevines, olive trees and oil palm—span about 183 million hectares across the planet, produce about a gigaton of food per year and are critical to diets and economies across the globe.
Right now, the intensified monocultural cultivation of these crops frequently contributes to environmental degradation and deforestation, leading to biodiversity loss and exacerbating climate change.
But, as an international team of scientists says in a just-published Perspective piece in the journal Nature Sustainability, such crops—effectively managed and incentivized—could be a key part of the solution to current sustainable development challenges.
“Perennial crops hold significant potential that must be harnessed to contribute to climate change mitigation efforts such as REDD+ [the UNFCCC effort to reduce emissions from deforestation and forest degradation; and conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries] and achieve the Sustainable Development Goals (SDGs),” said Denis J. Sonwa, the director of research, data and impact (RDI) at World Resources Institute (WRI) Africa, former senior scientist at the Center for International Forestry Research and World Agroforestry (CIFOR-ICRAF), and a co-author of the piece.
“They are an essential part of the solution in the global agenda and deserve more attention than they have so far received.”
Because they stay in the ground over long periods of time—often with a multi-layered, forest-like structure, extensive root systems, and abundant litter—perennial crops such as cocoa agroforests can provide a relatively stable habitat that supports high levels of biodiversity. For instance, cocoa agroforestry systems can host around 200 other tree species and exceed forests in bird diversity.
Perennial crops can also serve as wildlife corridors and buffers for protected areas. What’s more, since perennial crops tend to be less mechanized than their annual counterparts—especially when part of complex systems like agroforestry—they can provide crucial employment opportunities for people in rural communities, alongside shoring up food security, stashing carbon and helping to boost nutritional diversity.
However, making the most of perennial crops’ sustainable development potential will require increased policy and research focus on these crops and what they have to offer. “With a few exceptions, perennial cropping systems have received limited attention within the global agricultural policy framework,” the researchers say: in that context, annual crops—particularly wheat, maize and rice—remain stubbornly in the spotlight.
The authors posit three priorities for policy development in this area: regulation and economic incentives to encourage biodiversity-positive management practices; stricter regional land-use planning alongside international trade regulation efforts for some perennial crops grown in tropical biodiversity hotspots (e.g., cocoa, coffee and oil palm); and a holistic, multidimensional approach that integrates tools across the food chain into policy design.
They also state that more research is needed to understand the socio-economic and ecological dimensions of perennial crops and to tease out precisely “how to maximize benefits in some components (for example, farmer profitability or rural development) without compromising others (such as biodiversity conservation).” For instance, recent research in the Congo Basin found a link between higher incomes from cocoa and increased risk of deforestation, suggesting the need for zoning and incentives to combat this effect.
Key aspects requiring further research include building an integrated understanding of crop production’s social, economic and ecological dimensions; finding out how potential solutions at small scales might work at larger scales; and reflecting society-wide on the biodiversity impacts of consuming non-local and non-essential products.
To achieve the SDGs, the authors make the following three points: international trade agreements must focus on the entire supply chain; we must accept that each agricultural system has its particular problems and needs, and one policy will not fit them all; and policies cannot work in isolation from society and local communities. “Instead, a socio-cultural and economic context that facilitates the evolution and development of green and equitable policies should be fostered,” they state.
“For instance,” explained Sonwa, “perennial crops such as cocoa can play a vital role in climate change responses if their value chains are effectively structured through appropriate policies, institutional arrangements, and sound management practices from establishment to post-harvest.”
“These approaches, which include effective and efficient cocoa value chain management, can help mobilize local communities around sustainable forest-agricultural land use planning, mimic local forest structures and species through complex multistrata agroforestry systems, and contribute to carbon storage,” he said.
“Additionally, these cocoa agroforestry systems can provide multiple income sources—from cocoa, timber, and non-timber forest products, PES (Payment for Environmental Services)—which can enhance farmers’ livelihoods and serve as a source of resilience against various shocks, including climate change and variability,” Sonwa continued.
“Therefore, they can contribute to both climate change mitigation efforts (such as REDD+) and adaptation in the agricultural-forest landscapes of the tropics, such as the Congo Basin.”
Acknowledgements
Sonwa’s contribution to this study was made possible by financial support from NORAD for the CIFOR GCS-REDD+ (Global Comparative Study on REDD+) project. CIFOR
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Ecoscience Launches Eco-Plasma•HO Solution To Address Challenges In Palm Oil Mill Effluent
Integrated palm oil milling services provider, Ecoscience International Bhd has launched an innovative effluent water treatment solution, Eco-Plasma•HO to address the challenges of palm oil mill effluent (POME), wastewater generated during palm oil milling process that requires effective treatment before discharging into watercourses due to its highly polluting properties.
Ecoscience Managing Director Wong Choi Ong said the solution tackles pollutants that are not effectively removed by traditional biological wastewater treatment methods, enabling more sustainable and effective wastewater management practices.
“Unlike conventional methods, Eco-Plasma•HO operates without additional chemicals or biological agents, enabling it to achieve zero liquid discharge or minimum liquid discharge as well as minimal rejection water to zero harmful byproducts are produced.
“As such, the treated water can be safely reused for various purposes, including cooling towers in chemical and power plants, process water in manufacturing, and boiler feedwater,” Wong said, adding that this versatility extends the benefits of Eco-Plasma•HO beyond palm oil mills and refineries to diverse industries, including oleochemical, semiconductor, chemical, petrochemical, food and beverage, and general industrial sectors.
Eco-Plasma•HO is a patent-pending water treatment solution developed by Ecoscience in collaboration with its Singapore partner, GreenRay Group. It adopts Pulsed Plasma Advanced Oxidation Process that utilises non-thermal wet plasma technology to generate hydroxyl radicals within water.
These highly reactive radicals effectively break down a wide range of contaminants, such as metalloids, industrial pollutants, organic compounds, and harmful microorganisms, into harmless compounds.
“Eco-Plasma•HO has demonstrated its efficacy and is currently operational in several key industries with a Johor-based oil palm plantation company being one of the early adopters for its proof-of-concept POME Polishing Plant.
Additionally, the solution has been successfully implemented in diverse settings, including an oilfield plant in China, a real estate development in Singapore for its chilled water system, and a glove manufacturing facility in Malaysia, showcasing its versatility and effectiveness in managing industrial wastewater,” Wong said while highlighting that Eco-Plasma•HO is both cost-effective and energy-efficient, offering a low-maintenance, eco-friendly alternative for wastewater management. Business Today
--------
Sarawak Oil Palms eyes RM1.5 mil revenue with AvantHealth product’s debut in China
KUALA LUMPUR (Jan 16): Sarawak Oil Palms Bhd (KL:SOP) is targeting a revenue of RMB 2.4 million (RM1.5 million) as its flagship product, AvantHealth Avtriee Tocotrienols, makes its debut in the Chinese market.
Sarawak Oil Palms chief operating officer Eric Kiu Kwong Seng said the premium tocotrienol product produced by the company’s unit, Avanstar International Sdn Bhd, has successfully penetrated most of China’s e-commerce platforms beginning this month.
“We are targeting sales of around 10,000 bottles of AvantHealth Avtriee this year.
“We are proud to deliver high-quality Malaysian products to the global stage, starting with this significant step into the Chinese market,” he told reporters after the flag-off ceremony of AvantHealth Avtriee’s first shipment from Malaysia to China on Thursday.
Tocotrienol, a form of vitamin E abundant in palm oil, has significant health benefits, including reducing inflammation and acting as an antioxidant.
Meanwhile, Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said Thursday’s flag-off of AvantHealth Avtriee Tocotrienols shipment to China exemplifies efforts to elevate Malaysia’s palm oil industry beyond its traditional applications.
“With the collaborative efforts of the Malaysian and Chinese governments and enterprises, the General Administration of Customs China granted full approval in March 2024 for tocotrienols to be used in food applications within China.
He said the ministry is steadfast in its commitment to advancing Malaysia’s palm oil industry beyond traditional applications, emphasising innovation, sustainability, and value creation.
“High-value products like Avtriee Tocotrienols exemplify the transformative potential of palm oil as a versatile and sustainable natural resource.
“Our proactive engagement with international markets, particularly China, reinforces Malaysia’s position as a trusted global leader in sustainable palm oil production, and opens new opportunities for economic growth and international partnerships,” he added. The EdgeMY
January 15, 2025
Forest Deforestation For Palm Oil Is Always Overshadowed By The Threat Of Ecological Damage And Agrarian Conflict
JAKARTA President Prabowo Subianto's statement about the expansion of oil palm plantations, including by deforestation or deforestation, has drawn controversy. This statement, according to the founder of Indonesian Climate Justice Literacy, is a bad signal for the management of natural resources (SDA) in the country.
During a speech at the National Development Planning Conference (Musrenbangnas) in Jakarta on December 30, 2024, Prabowo claimed palm oil was a strategic material and many countries were afraid of not being able to get palm oil.
Therefore, according to President Prabowo, Indonesia needs to increase the planting of palm oil. He claims, palm oil causes deforestation is a false claim.
"You don't have to be afraid, what's that saying is dangerous, deforestation, the name is palm oil, right?" Prabowo said.
"It's true, oil palm is a tree, there are leaves, right? He absorbs carbon dioxide. How come we are accused of being content (not-not) just those people," he continued.
Forest and plantation campaigner Wahana Uli Arta Siagian admitted that he was surprised by the statement that palm oil was not directly connected to deforestation from the mouth of a president.
Meanwhile, Firdaus Cahyadi, founder of Indonesian Climate Justice Literacy, said Prabowo's statement that the development model under his command did not have an adequate vision of the environment. VOI
--------
Facing palm oil nonsense
There are still many sustainable ways in store to enhance palm oil output, especially through long-neglected replanting efforts rather than opening new plantations by clearing forests. editorial board (The Jakarta Post)
President Prabowo Subianto might not have thought his remarks would spark a controversy when he recently suggested that Indonesia expand oil palm plantations without worrying about deforestation. His statement sent the wrong signal about his administration’s stance on the sustainability of the commodity. Worse, his words undermine years of progress in curbing deforestation from the palm oil industry, which is partly thanks to moratoriums on the issuance of new permits and licenses for oil palm plantations decades ago. The statement could be dangerous if industries interpret it as the time to ditch sustainable practices or if foreign buyers lose faith in Indonesian palm oil products and switch to other substitutes or other producing countries with better sustainability standards. It is easy to take pride in palm oil, with the commodity and its products Indonesia’s top exports and now perhaps poised to play a pivotal role in the President’s energy security dream through the biodiesel programs. Despite the ambition, efforts to boost palm oil production should not sacrifice the environment. There are still many sustainable ways to enhance output, especially through long-neglected replanting efforts rather than by clearing forests to open new plantations.
This article was published in thejakartapost.com with the title "". Click to read: https://www.thejakartapost.com/opinion/2025/01/15/facing-palm-oil-nonsense.html.
--------
Palm oil sector adapted well to sustainability requirements
THE irrefutable fact is that palm oil produces significantly more oil per hectare than alternatives like soybean or sunflower - and this makes it a vital crop for feeding the world's population.
Nevertheless, the global population is also at a critical juncture. From around 8.2 billion people currently, it is rapidly surging and expected to reach 9.7 billion by 2050.
This means the demand for agricultural products will continue to grow, presenting mankind with the ultimate challenge: how do we increase productivity on limited arable land without compromising the environment, communities, or future generations?
Balancing growth, food security, and environmental protection is no easy task.
Palm oil expansion has historically come at a cost, particularly in biodiversity-rich regions like Southeast Asia. However, over the past decade the industry has shown that it can adapt, making significant strides in implementing sustainable practices.
For example, genomics research by major industry players has been a game-changer. We have been able to breed palms that can produce significantly more oil yield.
This breakthrough innovation is critical as we aim to decouple productivity from deforestation. By understanding the oil palm genome, we are also making inroads towards breeding palms that are resilient to pests, diseases, and extreme weather conditions.
Technological innovations are also allowing us to further maximise efficiency per hectare. Machines are now tackling back-breaking manual work that has characterised the industry for over a century, making work easier and more productive for workers.
Drones are being used to spray pesticides more efficiently in nurseries and immature palm plots, while geo-spatial monitoring and GPS tracking optimise machine productivity in the field.
Precision agriculture techniques in oil palm plantations ensure that every drop of fertiliser and every ounce of pesticide is used wisely, further minimising waste and environmental impact.
As climate change intensifies, the palm oil industry must also prepare for its impacts. Oil palms are highly sensitive to changes in temperature and rainfall, which directly affect yields.
This means that a strong commitment to climate action and achieving net-zero is no longer optional — it is a necessity. NST
--------
Malaysia eyes greater sustainability in palm oil sector as EU law looms
KUALA LUMPUR: Malaysia said on Tuesday it will encourage sustainability while maintaining the competitiveness of its palm oil industry ahead of the implementation of the European Union's anti-deforestation law at the end of this year.
The EU last month approved a one-year delay to the landmark deforestation law, which bans the importation of palm oil, soy and other goods linked to the destruction of forests. The bill now takes effect from Dec. 30 this year.
The law requires companies and traders selling soy, beef, coffee, palm oil and other products in the EU to provide proof their supply chains do not contribute to deforestation.
Malaysia and Indonesia, the world's largest exporters of palm oil, have previously complained that the law and implementation rules are discriminatory.
Malaysia's Deputy Plantation and Commodities Minister Chan Foong Hin said it was crucial for the country's palm oil industry to understand the impact of the EU law so that domestic practices could be adapted and market access maintained.
"By aligning our operations with these standards, we bolster our market position and enhance competitiveness," Chan told an industry conference on Tuesday. NST
--------
India's Shift to Soyoil Amid Palm Oil Price Surge
In December, India's palm oil imports fell by 41% from the previous month due to a price surge, prompting a switch to cheaper soyoil. This has impacted international markets, supporting U.S. soyoil futures while affecting Malaysian palm oil prices.
In a significant shift, India's palm oil imports in December plummeted by 41% from the previous month, marking a nine-month low. This decline came amidst soaring palm oil prices reaching a 2-1/2-year high, leading refiners to opt for more affordable soyoil, a top trade association reported.
The Solvent Extractors' Association of India (SEA) highlighted that December's palm oil imports fell to 500,175 metric tons, the smallest since March 2024. Meanwhile, soyoil imports rose by 3.2% to 420,651 tons, a peak in four months, while sunflower oil imports saw a significant decline of 22.3% to 264,836 tons.
This shift resulted in a 24.3% drop in India's total vegetable oil imports for December, reaching only 1.23 million tons, a low point for three months. Indian buyers are turning to South American soyoil as tightening Malaysian palm oil supplies push up prices, SEA indicated. Dev Discourse
--------
Malaysia Ready To Meet Pakistan’s Growing Palm Oil Demand
Datuk Seri Johari Abdul Ghani, the Minister of Plantation and Commodities who is on a working visit to Pakistan emphasised that the country remains a key export market for Malaysia’s palm oil products.
Belvinder Sron, CEO of the Malaysian Palm Oil Council noted on the vital role Pakistan plays as a strategic market for Malaysian palm oil. She pointed out that Pakistan imported 860,260 tonnes of palm oil and related products in 2024, a significant increase from 753,759 tonnes in 2023. At its peak Malaysia’s palm oil exports to Pakistan reached an impressive 2.1 million tonnes in 2010, making Pakistan one of our most significant markets at the time.
“Pakistan remains among the top 10 buyers of Malaysian palm oil and has always maintained a close relationship with Malaysia. Through this visit, we aim to strengthen our longstanding partnership and further expand our market share in this important region,” she said.
During the discussion, participants explored strategies to increase Malaysia’s market share in Pakistan’s edible oil imports and ensure a steady supply of sustainable, MSPO-certified palm oil. The dialogue also addressed opportunities to enhance Malaysian palm oil supplies to Pakistan and introduce technology transfers for the downstream industry. The Pakistan industry also suggested that Malaysian suppliers adopt an ex-tank sales model, a trade practice already common in Pakistan. Adopting this approach would not only help manage price volatility and reduce financial commitments but also align with local market preferences, thereby positioning Malaysian suppliers to strengthen their foothold and increase their market share in Pakistan’s edible oil sector.
The Minister also reaffirmed Malaysia’s readiness to meet Pakistan’s growing demand for palm oil with high-quality and sustainable products. Industry leaders expressed their commitment to continuing imports of Malaysian palm oil and explored opportunities for expanding trade volumes to benefit both nations. Business Today
Forest Deforestation For Palm Oil Is Always Overshadowed By The Threat Of Ecological Damage And Agrarian Conflict
JAKARTA President Prabowo Subianto's statement about the expansion of oil palm plantations, including by deforestation or deforestation, has drawn controversy. This statement, according to the founder of Indonesian Climate Justice Literacy, is a bad signal for the management of natural resources (SDA) in the country.
During a speech at the National Development Planning Conference (Musrenbangnas) in Jakarta on December 30, 2024, Prabowo claimed palm oil was a strategic material and many countries were afraid of not being able to get palm oil.
Therefore, according to President Prabowo, Indonesia needs to increase the planting of palm oil. He claims, palm oil causes deforestation is a false claim.
"You don't have to be afraid, what's that saying is dangerous, deforestation, the name is palm oil, right?" Prabowo said.
"It's true, oil palm is a tree, there are leaves, right? He absorbs carbon dioxide. How come we are accused of being content (not-not) just those people," he continued.
Forest and plantation campaigner Wahana Uli Arta Siagian admitted that he was surprised by the statement that palm oil was not directly connected to deforestation from the mouth of a president.
Meanwhile, Firdaus Cahyadi, founder of Indonesian Climate Justice Literacy, said Prabowo's statement that the development model under his command did not have an adequate vision of the environment. VOI
--------
Facing palm oil nonsense
There are still many sustainable ways in store to enhance palm oil output, especially through long-neglected replanting efforts rather than opening new plantations by clearing forests. editorial board (The Jakarta Post)
President Prabowo Subianto might not have thought his remarks would spark a controversy when he recently suggested that Indonesia expand oil palm plantations without worrying about deforestation. His statement sent the wrong signal about his administration’s stance on the sustainability of the commodity. Worse, his words undermine years of progress in curbing deforestation from the palm oil industry, which is partly thanks to moratoriums on the issuance of new permits and licenses for oil palm plantations decades ago. The statement could be dangerous if industries interpret it as the time to ditch sustainable practices or if foreign buyers lose faith in Indonesian palm oil products and switch to other substitutes or other producing countries with better sustainability standards. It is easy to take pride in palm oil, with the commodity and its products Indonesia’s top exports and now perhaps poised to play a pivotal role in the President’s energy security dream through the biodiesel programs. Despite the ambition, efforts to boost palm oil production should not sacrifice the environment. There are still many sustainable ways to enhance output, especially through long-neglected replanting efforts rather than by clearing forests to open new plantations.
This article was published in thejakartapost.com with the title "". Click to read: https://www.thejakartapost.com/opinion/2025/01/15/facing-palm-oil-nonsense.html.
--------
Palm oil sector adapted well to sustainability requirements
THE irrefutable fact is that palm oil produces significantly more oil per hectare than alternatives like soybean or sunflower - and this makes it a vital crop for feeding the world's population.
Nevertheless, the global population is also at a critical juncture. From around 8.2 billion people currently, it is rapidly surging and expected to reach 9.7 billion by 2050.
This means the demand for agricultural products will continue to grow, presenting mankind with the ultimate challenge: how do we increase productivity on limited arable land without compromising the environment, communities, or future generations?
Balancing growth, food security, and environmental protection is no easy task.
Palm oil expansion has historically come at a cost, particularly in biodiversity-rich regions like Southeast Asia. However, over the past decade the industry has shown that it can adapt, making significant strides in implementing sustainable practices.
For example, genomics research by major industry players has been a game-changer. We have been able to breed palms that can produce significantly more oil yield.
This breakthrough innovation is critical as we aim to decouple productivity from deforestation. By understanding the oil palm genome, we are also making inroads towards breeding palms that are resilient to pests, diseases, and extreme weather conditions.
Technological innovations are also allowing us to further maximise efficiency per hectare. Machines are now tackling back-breaking manual work that has characterised the industry for over a century, making work easier and more productive for workers.
Drones are being used to spray pesticides more efficiently in nurseries and immature palm plots, while geo-spatial monitoring and GPS tracking optimise machine productivity in the field.
Precision agriculture techniques in oil palm plantations ensure that every drop of fertiliser and every ounce of pesticide is used wisely, further minimising waste and environmental impact.
As climate change intensifies, the palm oil industry must also prepare for its impacts. Oil palms are highly sensitive to changes in temperature and rainfall, which directly affect yields.
This means that a strong commitment to climate action and achieving net-zero is no longer optional — it is a necessity. NST
--------
Malaysia eyes greater sustainability in palm oil sector as EU law looms
KUALA LUMPUR: Malaysia said on Tuesday it will encourage sustainability while maintaining the competitiveness of its palm oil industry ahead of the implementation of the European Union's anti-deforestation law at the end of this year.
The EU last month approved a one-year delay to the landmark deforestation law, which bans the importation of palm oil, soy and other goods linked to the destruction of forests. The bill now takes effect from Dec. 30 this year.
The law requires companies and traders selling soy, beef, coffee, palm oil and other products in the EU to provide proof their supply chains do not contribute to deforestation.
Malaysia and Indonesia, the world's largest exporters of palm oil, have previously complained that the law and implementation rules are discriminatory.
Malaysia's Deputy Plantation and Commodities Minister Chan Foong Hin said it was crucial for the country's palm oil industry to understand the impact of the EU law so that domestic practices could be adapted and market access maintained.
"By aligning our operations with these standards, we bolster our market position and enhance competitiveness," Chan told an industry conference on Tuesday. NST
--------
India's Shift to Soyoil Amid Palm Oil Price Surge
In December, India's palm oil imports fell by 41% from the previous month due to a price surge, prompting a switch to cheaper soyoil. This has impacted international markets, supporting U.S. soyoil futures while affecting Malaysian palm oil prices.
In a significant shift, India's palm oil imports in December plummeted by 41% from the previous month, marking a nine-month low. This decline came amidst soaring palm oil prices reaching a 2-1/2-year high, leading refiners to opt for more affordable soyoil, a top trade association reported.
The Solvent Extractors' Association of India (SEA) highlighted that December's palm oil imports fell to 500,175 metric tons, the smallest since March 2024. Meanwhile, soyoil imports rose by 3.2% to 420,651 tons, a peak in four months, while sunflower oil imports saw a significant decline of 22.3% to 264,836 tons.
This shift resulted in a 24.3% drop in India's total vegetable oil imports for December, reaching only 1.23 million tons, a low point for three months. Indian buyers are turning to South American soyoil as tightening Malaysian palm oil supplies push up prices, SEA indicated. Dev Discourse
--------
Malaysia Ready To Meet Pakistan’s Growing Palm Oil Demand
Datuk Seri Johari Abdul Ghani, the Minister of Plantation and Commodities who is on a working visit to Pakistan emphasised that the country remains a key export market for Malaysia’s palm oil products.
Belvinder Sron, CEO of the Malaysian Palm Oil Council noted on the vital role Pakistan plays as a strategic market for Malaysian palm oil. She pointed out that Pakistan imported 860,260 tonnes of palm oil and related products in 2024, a significant increase from 753,759 tonnes in 2023. At its peak Malaysia’s palm oil exports to Pakistan reached an impressive 2.1 million tonnes in 2010, making Pakistan one of our most significant markets at the time.
“Pakistan remains among the top 10 buyers of Malaysian palm oil and has always maintained a close relationship with Malaysia. Through this visit, we aim to strengthen our longstanding partnership and further expand our market share in this important region,” she said.
During the discussion, participants explored strategies to increase Malaysia’s market share in Pakistan’s edible oil imports and ensure a steady supply of sustainable, MSPO-certified palm oil. The dialogue also addressed opportunities to enhance Malaysian palm oil supplies to Pakistan and introduce technology transfers for the downstream industry. The Pakistan industry also suggested that Malaysian suppliers adopt an ex-tank sales model, a trade practice already common in Pakistan. Adopting this approach would not only help manage price volatility and reduce financial commitments but also align with local market preferences, thereby positioning Malaysian suppliers to strengthen their foothold and increase their market share in Pakistan’s edible oil sector.
The Minister also reaffirmed Malaysia’s readiness to meet Pakistan’s growing demand for palm oil with high-quality and sustainable products. Industry leaders expressed their commitment to continuing imports of Malaysian palm oil and explored opportunities for expanding trade volumes to benefit both nations. Business Today
January 14, 2025
Malaysia says EU deforestation law presents challenges, opportunities for palm industry
KUALA LUMPUR, Jan 14 (Reuters) - The European Union's pending anti-deforestation law presents both challenges and opportunities for Malaysia's palm oil industry, Malaysia's deputy commodities minister told an industry conference on Tuesday.
Deputy Minister Chan Foong Hin said it was crucial for the industry to understand the impact of the EU law so that domestic practices could be adapted and market access maintained. Last month, the European Union approved a one-year delay to its landmark deforestation law, which bans the importation of palm oil, soy and other goods linked to the destruction of forests. The bill is now due to take effect from Dec. 30, 2025.
The law requires companies and traders selling soy, beef, coffee, palm oil and other products in the EU market to provide proof their supply chains do not contribute to deforestation.
Malaysia and Indonesia, the world's largest exporters of palm oil, have previously complained that the law and implementation rules are discriminatory. Reuters
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Malaysia Aligns Palm Oil Industry with EU's Deforestation Standards
Malaysia plans to keep its palm oil industry competitive while adhering to sustainability norms as the EU's anti-deforestation law approaches. By adopting green practices, Malaysia hopes to maintain market access and foster industry growth while addressing environmental concerns.
Malaysia pledges to balance sustainability with competitiveness in its palm oil sector ahead of the EU's impending anti-deforestation law enforcement. The regulation, effective December 30, aims to prevent imports of products like palm oil associated with forest destruction.
Deputy Plantation and Commodities Minister Chan Foong Hin emphasized the need for Malaysia to adapt to the EU standards to sustain market access. Speaking at an industry conference, Chan highlighted that aligning operations with these standards would enhance Malaysia's market position.
Malaysia is adopting green initiatives to safeguard the environment and boost growth opportunities, as stated by Chan and reaffirmed by Malaysian Palm Oil Board director-general Ahmad Parveez Ghulam Kadir. The industry is preparing for a positive outlook by 2025 with new collaborations addressing both environmental concerns and economic stability. DevDiscourse
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Malaysia's ASEAN Chairmanship Strengthens Palm Oil Trade and Regional Cooperation
PUTRAJAYA, Jan 14 (Bernama) -- The palm oil trade is a cornerstone of ASEAN’s economic activity, and Malaysia is committed to leveraging regional frameworks such as the Regional Comprehensive Economic Partnership (RCEP) and ASEAN’s Free Trade Agreements (FTAs) with countries like South Korea, Australia and New Zealand.
Malaysian Palm Oil Board (MPOB) director-general Datuk Ahmad Parveez Ghulam Kadir said these agreements are expected to boost intra-ASEAN trade while ensuring a steady, sustainable supply of palm oil raw materials.
“We aim to enhance market access across the region through these agreements, ensuring that ASEAN remains competitive in the global palm oil trade,” he told Bernama.
Ahmad Parveez said as Malaysia leads ASEAN this year, the country is positioning the palm oil sector at the heart of regional economic growth.
He said the ASEAN chairmanship offers an opportunity to strengthen collaboration not only within the region, but also with key global markets, particularly the United States and the European Union.
This engagement, he said, is vital to addressing geopolitical challenges such as the ongoing conflicts in Ukraine and the Middle East, which have disrupted global trade flows.
“By fostering closer ties within ASEAN and with external partners, Malaysia aims to ensure that the palm oil sector continues to be a major contributor to the region's economic resilience.
"Our focus goes beyond trade; we are committed to promoting policies that support the sustainable production and trade of palm oil," he said, adding that these efforts also align with ASEAN’s broader goals of enhancing food security and fostering a unified palm oil sector across the region.
Ahmad Parveez said Malaysia's leadership in promoting sustainability is also at the forefront and the country is advocating for the harmonisation of sustainability standards across ASEAN.
“The Malaysian Sustainable Palm Oil (MSPO) certification, which sets a high benchmark for responsible production, could serve as a model for other ASEAN nations. This move would address key global concerns such as deforestation, carbon emissions, and ethical labour practices.
“By establishing consistent sustainability measures, we can enhance the credibility of palm oil as a responsibly produced commodity and align ASEAN’s palm oil trade with global expectations,” he emphasised. Bernama
--------
CPTPP Secures Tariff-Free Access To UK Market For Malaysian Palm Oil And Products
Malaysian products, particularly palm oil, are expected to benefit from tariff-free access in the UK under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trade agreement, according to a report by Bernama.
Malaysian High Commissioner to the UK and Northern Ireland Datuk Zakri Jaafar said this is possible because the UK formally joined the CPTPP last December.
“Under this framework, tariff for products by member countries will be reduced to zero. This means it will be easier for palm oil from Malaysia to enter the UK,” he told a press conference with Malaysian media.
Zakri said this when asked if the palm oil tariff issue will be on the agenda during Prime Minister Datuk Seri Anwar Ibrahim’s five-day visit to the UK beginning Jan 15.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani is among three ministers accompanying Anwar.
Malaysia ratified the CPTPP in October 2024, joining Peru, Japan, Singapore, Chile, New Zealand and Vietnam in ratifying the agreement.
According to reports here, more than 99% of current UK goods exports to CPTPP member countries will be tariff-free once the deal comes into effect.
CPTPP is an Asia-Pacific trade bloc made up of 11 countries plus the UK. The 11 original members are Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
On whether Malaysia will discuss a future free trade agreement with the UK, Zakri said there was no need for that as CPTPP has a similar agreement. Business Today
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Malaysia to position Pakistan as palm oil hub for Central Asia — MPOB
PUTRAJAYA (Jan 13): Malaysia is keen to position Pakistan as a strategic distribution hub for palm oil exports to Central Asia, capitalising on the country's strategic location and its proximity to emerging high-growth markets, the Malaysian Palm Oil Board (MPOB) said.
Its director-general Datuk Ahmad Parveez Ghulam Kadir said this vision is in line with the increasing demand in Pakistan’s US$115 billion (RM517.5 billion) food sector, presenting significant opportunities for Malaysian palm oil products.
“We aim to reinforce Malaysia’s position in Pakistan's edible oil industry while focusing on strengthening joint ventures, exploring value-added products, and promoting sustainable practices,” he said following his recent trip to Pakistan as part of the Plantation and Commodities Ministry’s visit.
Minister Datuk Seri Johari Abdul Ghani, who led the delegation had officiated at the 7th Pakistan Edible Oil Conference (PEOC) in Karachi on Jan 11.
Elaborating further, Ahmad Parveez said the board sees significant potential in enhancing collaboration with leading Pakistani companies such as the Westbury Group, which operates Mapak Qasim Bulkers, Mapak Edible Oils and FWQ Enterprises at Port Qasim.
Mapak Qasim Bulkers controls about 50% of palm oil imports into Pakistan, making it an essential partner for Malaysia in the region.
Ahmad Parveez said the visit aims to explore new collaboration avenues, focusing on leveraging Pakistan’s advanced infrastructure at Port Qasim, which handles over 90% of the country’s palm oil imports.
By modernising the oils and fats industry and streamlining logistics, both countries aim to reduce trade costs and increase efficiency, he said.
Meanwhile, he shared that the key discussions during his recent trip also revolved around upgrading infrastructure and promoting the import of palm-based specialty fats and oleochemicals, which could further boost Malaysia’s exports to Pakistan.
Additionally, both nations are keen to explore research and development (R&D) opportunities to meet the growing demands of Pakistan’s food sector and diversify the application of palm-based products, particularly in personal care and household industries.
Sustainability is also a focal point of the discussions, with Malaysia emphasising the importance of the Malaysian Sustainable Palm Oil (MSPO) certification. The Edge
--------
Malaysia says EU deforestation law presents challenges, opportunities for palm industry
KUALA LUMPUR, Jan 14 (Reuters) - The European Union's pending anti-deforestation law presents both challenges and opportunities for Malaysia's palm oil industry, Malaysia's deputy commodities minister told an industry conference on Tuesday.
Deputy Minister Chan Foong Hin said it was crucial for the industry to understand the impact of the EU law so that domestic practices could be adapted and market access maintained. Last month, the European Union approved a one-year delay to its landmark deforestation law, which bans the importation of palm oil, soy and other goods linked to the destruction of forests. The bill is now due to take effect from Dec. 30, 2025.
The law requires companies and traders selling soy, beef, coffee, palm oil and other products in the EU market to provide proof their supply chains do not contribute to deforestation.
Malaysia and Indonesia, the world's largest exporters of palm oil, have previously complained that the law and implementation rules are discriminatory. Reuters
--------
Malaysia Aligns Palm Oil Industry with EU's Deforestation Standards
Malaysia plans to keep its palm oil industry competitive while adhering to sustainability norms as the EU's anti-deforestation law approaches. By adopting green practices, Malaysia hopes to maintain market access and foster industry growth while addressing environmental concerns.
Malaysia pledges to balance sustainability with competitiveness in its palm oil sector ahead of the EU's impending anti-deforestation law enforcement. The regulation, effective December 30, aims to prevent imports of products like palm oil associated with forest destruction.
Deputy Plantation and Commodities Minister Chan Foong Hin emphasized the need for Malaysia to adapt to the EU standards to sustain market access. Speaking at an industry conference, Chan highlighted that aligning operations with these standards would enhance Malaysia's market position.
Malaysia is adopting green initiatives to safeguard the environment and boost growth opportunities, as stated by Chan and reaffirmed by Malaysian Palm Oil Board director-general Ahmad Parveez Ghulam Kadir. The industry is preparing for a positive outlook by 2025 with new collaborations addressing both environmental concerns and economic stability. DevDiscourse
--------
Malaysia's ASEAN Chairmanship Strengthens Palm Oil Trade and Regional Cooperation
PUTRAJAYA, Jan 14 (Bernama) -- The palm oil trade is a cornerstone of ASEAN’s economic activity, and Malaysia is committed to leveraging regional frameworks such as the Regional Comprehensive Economic Partnership (RCEP) and ASEAN’s Free Trade Agreements (FTAs) with countries like South Korea, Australia and New Zealand.
Malaysian Palm Oil Board (MPOB) director-general Datuk Ahmad Parveez Ghulam Kadir said these agreements are expected to boost intra-ASEAN trade while ensuring a steady, sustainable supply of palm oil raw materials.
“We aim to enhance market access across the region through these agreements, ensuring that ASEAN remains competitive in the global palm oil trade,” he told Bernama.
Ahmad Parveez said as Malaysia leads ASEAN this year, the country is positioning the palm oil sector at the heart of regional economic growth.
He said the ASEAN chairmanship offers an opportunity to strengthen collaboration not only within the region, but also with key global markets, particularly the United States and the European Union.
This engagement, he said, is vital to addressing geopolitical challenges such as the ongoing conflicts in Ukraine and the Middle East, which have disrupted global trade flows.
“By fostering closer ties within ASEAN and with external partners, Malaysia aims to ensure that the palm oil sector continues to be a major contributor to the region's economic resilience.
"Our focus goes beyond trade; we are committed to promoting policies that support the sustainable production and trade of palm oil," he said, adding that these efforts also align with ASEAN’s broader goals of enhancing food security and fostering a unified palm oil sector across the region.
Ahmad Parveez said Malaysia's leadership in promoting sustainability is also at the forefront and the country is advocating for the harmonisation of sustainability standards across ASEAN.
“The Malaysian Sustainable Palm Oil (MSPO) certification, which sets a high benchmark for responsible production, could serve as a model for other ASEAN nations. This move would address key global concerns such as deforestation, carbon emissions, and ethical labour practices.
“By establishing consistent sustainability measures, we can enhance the credibility of palm oil as a responsibly produced commodity and align ASEAN’s palm oil trade with global expectations,” he emphasised. Bernama
--------
CPTPP Secures Tariff-Free Access To UK Market For Malaysian Palm Oil And Products
Malaysian products, particularly palm oil, are expected to benefit from tariff-free access in the UK under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trade agreement, according to a report by Bernama.
Malaysian High Commissioner to the UK and Northern Ireland Datuk Zakri Jaafar said this is possible because the UK formally joined the CPTPP last December.
“Under this framework, tariff for products by member countries will be reduced to zero. This means it will be easier for palm oil from Malaysia to enter the UK,” he told a press conference with Malaysian media.
Zakri said this when asked if the palm oil tariff issue will be on the agenda during Prime Minister Datuk Seri Anwar Ibrahim’s five-day visit to the UK beginning Jan 15.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani is among three ministers accompanying Anwar.
Malaysia ratified the CPTPP in October 2024, joining Peru, Japan, Singapore, Chile, New Zealand and Vietnam in ratifying the agreement.
According to reports here, more than 99% of current UK goods exports to CPTPP member countries will be tariff-free once the deal comes into effect.
CPTPP is an Asia-Pacific trade bloc made up of 11 countries plus the UK. The 11 original members are Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
On whether Malaysia will discuss a future free trade agreement with the UK, Zakri said there was no need for that as CPTPP has a similar agreement. Business Today
--------
Malaysia to position Pakistan as palm oil hub for Central Asia — MPOB
PUTRAJAYA (Jan 13): Malaysia is keen to position Pakistan as a strategic distribution hub for palm oil exports to Central Asia, capitalising on the country's strategic location and its proximity to emerging high-growth markets, the Malaysian Palm Oil Board (MPOB) said.
Its director-general Datuk Ahmad Parveez Ghulam Kadir said this vision is in line with the increasing demand in Pakistan’s US$115 billion (RM517.5 billion) food sector, presenting significant opportunities for Malaysian palm oil products.
“We aim to reinforce Malaysia’s position in Pakistan's edible oil industry while focusing on strengthening joint ventures, exploring value-added products, and promoting sustainable practices,” he said following his recent trip to Pakistan as part of the Plantation and Commodities Ministry’s visit.
Minister Datuk Seri Johari Abdul Ghani, who led the delegation had officiated at the 7th Pakistan Edible Oil Conference (PEOC) in Karachi on Jan 11.
Elaborating further, Ahmad Parveez said the board sees significant potential in enhancing collaboration with leading Pakistani companies such as the Westbury Group, which operates Mapak Qasim Bulkers, Mapak Edible Oils and FWQ Enterprises at Port Qasim.
Mapak Qasim Bulkers controls about 50% of palm oil imports into Pakistan, making it an essential partner for Malaysia in the region.
Ahmad Parveez said the visit aims to explore new collaboration avenues, focusing on leveraging Pakistan’s advanced infrastructure at Port Qasim, which handles over 90% of the country’s palm oil imports.
By modernising the oils and fats industry and streamlining logistics, both countries aim to reduce trade costs and increase efficiency, he said.
Meanwhile, he shared that the key discussions during his recent trip also revolved around upgrading infrastructure and promoting the import of palm-based specialty fats and oleochemicals, which could further boost Malaysia’s exports to Pakistan.
Additionally, both nations are keen to explore research and development (R&D) opportunities to meet the growing demands of Pakistan’s food sector and diversify the application of palm-based products, particularly in personal care and household industries.
Sustainability is also a focal point of the discussions, with Malaysia emphasising the importance of the Malaysian Sustainable Palm Oil (MSPO) certification. The Edge
--------
January 13, 2025
Professors From UGM and KOBI Strongly Reject Prabowo's Deforestation for Oil Palm Expansion
TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto proposed expanding oil palm plantations to increase palm oil exports. However, this idea has drawn criticism because it is considered to trigger deforestation.
The President's statement that equates oil palm with natural forest plants is also considered misguided. Dean of the Faculty of Biology, Gadjah Mada University and Chair of the Indonesian Biology Consortium (KOBI), Prof. Budi Setiadi Daryono rejected this proposal.
He emphasized that the addition of oil palm plantations risks destroying forests or deforestation and biodiversity. Budi said that research shows that oil palm plantations cannot be a habitat for wildlife, with a biodiversity level of almost zero.
"Large, monoculture oil palm plantations increase conflicts between humans and wildlife. This has an impact on the decline in the population of protected animals, such as orangutans, elephants, rhinos, and Sumatran tigers. In addition, deforestation due to the opening of oil palm plantations increasingly threatens flora and fauna that are already protected by law," said Budi, quoted from the UGM website.
He also reminded the government to follow Presidential Instruction (Inpres) Number 5 of 2019 concerning the Termination of New Permits and Improvement of Primary Natural Forest and Peatland Governance. By implementing this policy, more than 66 million hectares of natural forest and peatland, equivalent to the area of France, can be saved.
On the other hand, Budi also asked the government to consistently implement regulations related to environmental conservation, as regulated in Presidential Instruction Number 1 of 2023 concerning Mainstreaming Biodiversity Conservation in Sustainable Development. Prabowo's statement equating oil palm with forest plants also received sharp criticism. Tempo
---------
Malaysia advances palm oil sustainability with MSPO certification and circular economy practices
KUALA LUMPUR: Malaysia has strengthened its dedication to sustainability in the palm oil sector through initiatives such as the Malaysian Sustainable Palm Oil (MSPO) certification and the adoption of circular economy practices.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said these initiatives will pave the way toward Malaysia's strategy to achieve net-zero emissions by 2050.
In his keynote address at the recently held 7th Pakistan Edible Oil Conference (PEOC) 2025, he also emphasised the enduring partnership between Malaysia and Pakistan which are strengthened by the Malaysian-Pakistan Closer Economic Partnership Agreement (MPCEPA).
"Malaysia's position as the second-largest global producer of palm oil has contributed over US$20 billion annually to its economy and supporting nearly one million livelihoods," he added.
Johari also highlighted the importance of palm oil in Pakistan's food and non-food industries, noting that the rising demand for palm oil presents a significant opportunity for innovation and the development of value-added products.
"Let's look forward to seeing Malaysia and Pakistan deepen this collaboration in the oils and fats sector, unlocking new opportunities for mutual growth and everlasting innovation. NST
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Samsung E&A Secures 1.4 Trillion Won Bio-refinery Plant Contract in Malaysia
Samsung E&A announced on January 10 that it has signed a major contract, valued at 1.4 trillion won, for the establishment of a bio-refinery plant in Malaysia.
The company disclosed that it entered into an agreement with Pengerang Biorefinery Sdn. Bhd. for the 'New Biorefinery Project' in Malaysia.
The contract is valued at 950 million USD, approximately 1.38 trillion won. Of this, Samsung E&A's headquarters will handle about 550 million USD, while the local subsidiary will cover 400 million USD.
This project involves the construction of an eco-friendly plant with the capacity to produce 650,000 tons annually of sustainable aviation fuel (SAF), biodiesel, and bio-naphtha. Samsung E&A will oversee the entire process, from design and procurement to construction and testing. The plant will be built in the Pengerang area of Johor, southern Malaysia.
With this project, Samsung E&A is making its first entry into the SAF (Sustainable Aviation Fuel) market, a new business area. SAF is aviation fuel produced from bio-based raw materials like used cooking oil and palm oil, instead of traditional fossil fuels. It is gaining attention as an eco-friendly energy source due to its potential to reduce carbon emissions.
"We will leverage our expertise and experience from more than 10 projects executed in Malaysia to successfully complete our first SAF project, thereby expanding our presence in the eco-friendly carbon-neutral sector," said an official from Samsung E&A.
출처 : Korea IT Times(https://www.koreaittimes.com)
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Indonesia curbs exports of used cooking oil, palm residue
January 13, 2025 | Juan Pedro Tomas
In Indonesia, Reuters reported that the Indonesian government has clamped down on exports of used cooking oil (UCO) and palm oil residue to ensure supply to domestic cooking oil and biodiesel industries.
The move aims to help attain a new mandate starting from this year, of mixing 40% of palm oil-based fuel with diesel fuel, called B40, up from 35% previously, the government said.
The new regulation, which takes effect immediately, requires all exporters of palm oil residue and UCO, including palm oil mill effluent (POME), to acquire an export allocation from the government.
The report noted that Indonesia’s exports of UCO and palm oil residue from January to November 2024 stood at 3.95 million metric tons, down 13.75% from the corresponding 2023 period, data from Statistics Indonesia showed.
More on the story.
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Pertamina set to produce first batch of certified SAF
Kilang Pertamina Internasional, a refinery unit of Indonesia's state owned energy firm Pertamina, aims to produce its first certified sustainable aviation fuel (SAF) in the first quarter of this year, Reuters reported.
The firm received certification for SAF in December including the International Sustainability Carbon Certification (ISCC) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and ISCC Europe Union (EU) certification.
It will produce SAF using the treated distillate hydro treating unit at its Cilacap refinery.
"KPI is ready to move forward by producing the first ISCC-certified Pertamina SAF in Indonesia and in the region with used cooking oil as the raw material which is scheduled in the first quarter of 2025," KPI spokesperson Hermansyah Y. Nasroen said in a statement.
KPI had said its Green Refinery Cilacap has capacity to process 6,000 barrels of used cooking oil per day to produce hydrotreated vegetable oil and SAF with total output estimated about 300,000 kilolitres per year. Biofuels News
Professors From UGM and KOBI Strongly Reject Prabowo's Deforestation for Oil Palm Expansion
TEMPO.CO, Jakarta - Indonesian President Prabowo Subianto proposed expanding oil palm plantations to increase palm oil exports. However, this idea has drawn criticism because it is considered to trigger deforestation.
The President's statement that equates oil palm with natural forest plants is also considered misguided. Dean of the Faculty of Biology, Gadjah Mada University and Chair of the Indonesian Biology Consortium (KOBI), Prof. Budi Setiadi Daryono rejected this proposal.
He emphasized that the addition of oil palm plantations risks destroying forests or deforestation and biodiversity. Budi said that research shows that oil palm plantations cannot be a habitat for wildlife, with a biodiversity level of almost zero.
"Large, monoculture oil palm plantations increase conflicts between humans and wildlife. This has an impact on the decline in the population of protected animals, such as orangutans, elephants, rhinos, and Sumatran tigers. In addition, deforestation due to the opening of oil palm plantations increasingly threatens flora and fauna that are already protected by law," said Budi, quoted from the UGM website.
He also reminded the government to follow Presidential Instruction (Inpres) Number 5 of 2019 concerning the Termination of New Permits and Improvement of Primary Natural Forest and Peatland Governance. By implementing this policy, more than 66 million hectares of natural forest and peatland, equivalent to the area of France, can be saved.
On the other hand, Budi also asked the government to consistently implement regulations related to environmental conservation, as regulated in Presidential Instruction Number 1 of 2023 concerning Mainstreaming Biodiversity Conservation in Sustainable Development. Prabowo's statement equating oil palm with forest plants also received sharp criticism. Tempo
---------
Malaysia advances palm oil sustainability with MSPO certification and circular economy practices
KUALA LUMPUR: Malaysia has strengthened its dedication to sustainability in the palm oil sector through initiatives such as the Malaysian Sustainable Palm Oil (MSPO) certification and the adoption of circular economy practices.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said these initiatives will pave the way toward Malaysia's strategy to achieve net-zero emissions by 2050.
In his keynote address at the recently held 7th Pakistan Edible Oil Conference (PEOC) 2025, he also emphasised the enduring partnership between Malaysia and Pakistan which are strengthened by the Malaysian-Pakistan Closer Economic Partnership Agreement (MPCEPA).
"Malaysia's position as the second-largest global producer of palm oil has contributed over US$20 billion annually to its economy and supporting nearly one million livelihoods," he added.
Johari also highlighted the importance of palm oil in Pakistan's food and non-food industries, noting that the rising demand for palm oil presents a significant opportunity for innovation and the development of value-added products.
"Let's look forward to seeing Malaysia and Pakistan deepen this collaboration in the oils and fats sector, unlocking new opportunities for mutual growth and everlasting innovation. NST
--------
Samsung E&A Secures 1.4 Trillion Won Bio-refinery Plant Contract in Malaysia
Samsung E&A announced on January 10 that it has signed a major contract, valued at 1.4 trillion won, for the establishment of a bio-refinery plant in Malaysia.
The company disclosed that it entered into an agreement with Pengerang Biorefinery Sdn. Bhd. for the 'New Biorefinery Project' in Malaysia.
The contract is valued at 950 million USD, approximately 1.38 trillion won. Of this, Samsung E&A's headquarters will handle about 550 million USD, while the local subsidiary will cover 400 million USD.
This project involves the construction of an eco-friendly plant with the capacity to produce 650,000 tons annually of sustainable aviation fuel (SAF), biodiesel, and bio-naphtha. Samsung E&A will oversee the entire process, from design and procurement to construction and testing. The plant will be built in the Pengerang area of Johor, southern Malaysia.
With this project, Samsung E&A is making its first entry into the SAF (Sustainable Aviation Fuel) market, a new business area. SAF is aviation fuel produced from bio-based raw materials like used cooking oil and palm oil, instead of traditional fossil fuels. It is gaining attention as an eco-friendly energy source due to its potential to reduce carbon emissions.
"We will leverage our expertise and experience from more than 10 projects executed in Malaysia to successfully complete our first SAF project, thereby expanding our presence in the eco-friendly carbon-neutral sector," said an official from Samsung E&A.
출처 : Korea IT Times(https://www.koreaittimes.com)
--------
Indonesia curbs exports of used cooking oil, palm residue
January 13, 2025 | Juan Pedro Tomas
In Indonesia, Reuters reported that the Indonesian government has clamped down on exports of used cooking oil (UCO) and palm oil residue to ensure supply to domestic cooking oil and biodiesel industries.
The move aims to help attain a new mandate starting from this year, of mixing 40% of palm oil-based fuel with diesel fuel, called B40, up from 35% previously, the government said.
The new regulation, which takes effect immediately, requires all exporters of palm oil residue and UCO, including palm oil mill effluent (POME), to acquire an export allocation from the government.
The report noted that Indonesia’s exports of UCO and palm oil residue from January to November 2024 stood at 3.95 million metric tons, down 13.75% from the corresponding 2023 period, data from Statistics Indonesia showed.
More on the story.
---------
Pertamina set to produce first batch of certified SAF
Kilang Pertamina Internasional, a refinery unit of Indonesia's state owned energy firm Pertamina, aims to produce its first certified sustainable aviation fuel (SAF) in the first quarter of this year, Reuters reported.
The firm received certification for SAF in December including the International Sustainability Carbon Certification (ISCC) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and ISCC Europe Union (EU) certification.
It will produce SAF using the treated distillate hydro treating unit at its Cilacap refinery.
"KPI is ready to move forward by producing the first ISCC-certified Pertamina SAF in Indonesia and in the region with used cooking oil as the raw material which is scheduled in the first quarter of 2025," KPI spokesperson Hermansyah Y. Nasroen said in a statement.
KPI had said its Green Refinery Cilacap has capacity to process 6,000 barrels of used cooking oil per day to produce hydrotreated vegetable oil and SAF with total output estimated about 300,000 kilolitres per year. Biofuels News
January 12, 2025
DPR RI Highlights Forest Clearing Plan for Food Security
InfoSAWIT, JAKARTA – The government's plan through the Ministry of Environment and Forestry (KLHK) to open up 12 to 20 million hectares of forest land to support the national food and energy sovereignty program has received serious attention from a member of Commission IV of the Indonesian House of Representatives, Slamet. He emphasized that this program must be designed carefully based on a comprehensive study so as not to cause negative impacts on the environment and society.
According to the Ministry of Environment and Forestry, around 1.1 million hectares of forest land planned to be converted has the potential to produce up to 3.5 million tons of rice per year. This step is said to be part of the expansion of the food estate program to the village level to strengthen national food security.
Although he supports the government's vision, Slamet reminded that the implementation of this program must be carried out in a measured manner and consider various risks, such as land conflicts and environmental damage. "I strongly support the government's vision in realizing food sovereignty. However, I ask the Ministry of Forestry to translate the vision into a measurable program, so that it does not cause new problems," he said in a press statement, quoted by InfoSAWIT , Sunday (12/1/2025).
Slamet also highlighted the importance of maintaining ecological balance in running this program. He warned that forest destruction could impact the availability of water for agriculture, which would ultimately be counterproductive to the goal of food security itself.
"The Ministry of Forestry should not follow suit and be mistaken. The ministry's contribution in supporting food self-sufficiency must ensure that forests remain intact and sustainable. If forests are damaged, the availability of water for agricultural production can be disrupted," said Slamet, a politician from the PKS faction.
Furthermore, Slamet proposed that the government prioritize the use of non-productive land outside forest areas to support the food self-sufficiency program. He considered optimizing abandoned land outside forest areas a more sustainable solution. Info Sawit
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Japan-Ishiba turns to Southeast Asia amid growing international uncertainty
With pledges to deepen security and economic cooperation, Prime Minister Shigeru Ishiba wrapped up a four-day visit to Malaysia and Indonesia on Saturday designed to shore up ties with Southeast Asia as China expands its regional clout and Donald Trump prepares to return to the White House.
During Ishiba’s first overseas trip aside from international conferences, the prime minister met with Malaysian leader Anwar Ibrahim and Indonesian President Prabowo Subianto, both of whom agreed to work more closely with Japan — not only in the more traditional economic, investment and energy arenas, but also on security matters.
Experts said Ishiba’s decision to prioritize Malaysia — this year’s chair of the Association of Southeast Asian Nations (ASEAN), an organization critical to Tokyo’s regional interests — and Indonesia — the region’s largest country and economy — was no coincidence.
The move, they noted, was meant to signal Tokyo’s continued commitment to the strategically important region, particularly to partners that, just like Japan, are seeking to mitigate any potential volatility under the incoming Trump administration.
“Indonesia and Malaysia are seeking opportunities to avoid being put under too much pressure from a more protectionist Trump administration, much like Ishiba did with his visit,” said Ian Chong, an associate professor at the National University of Singapore.
Given concerns that Washington might be less open for business under Trump, countries are now looking for alternatives and substitutes, Chong said, adding that Indonesia and Malaysia could provide opportunities for Japan and Japanese companies to develop their “China+1 strategies” — an approach that involves expanding manufacturing and sourcing to other countries to reduce reliance on Beijing.
Japan has been playing a more proactive role in the region since at least 2012. Its geostrategic shift began under Prime Minister Shinzo Abe and has focused on the Indo-Pacific as a new space to counterbalance China's rise.
The move has also included a push for greater security cooperation.
The reason for this is that Southeast Asia is not only critical to Japan's economic strategy but also as a supplier of energy and raw materials. Geography also plays a key role as Malaysia and Indonesia sit astride major shipping lanes, air routes and submarine cable lines that are key to Japan for trade, communications and fossil fuel imports.
While Tokyo has long been at the center of key regional production networks, it has been facing stiff competition from China over ASEAN markets, making Ishiba’s trip not only important to maintain Japan's enhanced role, but also to diversify relations while seeking greater geopolitical alignment.
Ishiba himself highlighted the region’s significance before the trip, telling reporters that Tokyo wanted to place “greater value” on relations with Southeast Asia as the international situation becomes “increasingly uncertain,” and that he would continue to ask Jakarta and Kuala Lumpur to “provide us with a steady supply of energy.”
The prime minister seems to have succeeded, with both Jakarta and Kuala Lumpur agreeing to deepen cooperation over both resources and infrastructure “to ensure energy security,” including Malaysia’s continued supply of liquefied natural gas, and “achieve decarbonization through diverse paths” such as hydrogen.
Geopolitically speaking, the visit, which also resulted in loans and a number of pledges to strengthen cooperation in education and people-to-people exchanges, also gave Ishiba the chance to cultivate personal relationships with both Anwar and Prabowo.
This was particularly important as both happen to be “rather dynamic leaders, with a deep interest in the evolving global order and who are not known to mince their words,” said Thomas Daniel from the Institute of Strategic and International Studies Malaysia.
Malaysia and Indonesia have long pursued a foreign policy based on neutrality and nonalignment.
To strike a balance between the great powers, they were among four Southeast Asian nations — along with Vietnam and Thailand — to have recently joined BRICS, a group of emerging economies that seeks to provide an alternative model to the Western-led Group of Seven. While Malaysia only became a BRICS partner, Indonesia joined as a full member.
Against this backdrop, the visit likely also offered Ishiba the opportunity to better understand Malaysia and Indonesia’s geopolitical stance and why they have sought to hedge by engaging with non-Western groups such as BRICS, said Kei Koga, an associate professor at Singapore’s Nanyang Technological University.
This understanding will be crucial, as the trip also focused on expanding security cooperation with both countries — which, just like Japan, are embroiled in maritime and territorial disputes with China — especially under Tokyo’s Official Security Assistance (OSA) framework, a military aid program launched in 2023. Japan Times
DPR RI Highlights Forest Clearing Plan for Food Security
InfoSAWIT, JAKARTA – The government's plan through the Ministry of Environment and Forestry (KLHK) to open up 12 to 20 million hectares of forest land to support the national food and energy sovereignty program has received serious attention from a member of Commission IV of the Indonesian House of Representatives, Slamet. He emphasized that this program must be designed carefully based on a comprehensive study so as not to cause negative impacts on the environment and society.
According to the Ministry of Environment and Forestry, around 1.1 million hectares of forest land planned to be converted has the potential to produce up to 3.5 million tons of rice per year. This step is said to be part of the expansion of the food estate program to the village level to strengthen national food security.
Although he supports the government's vision, Slamet reminded that the implementation of this program must be carried out in a measured manner and consider various risks, such as land conflicts and environmental damage. "I strongly support the government's vision in realizing food sovereignty. However, I ask the Ministry of Forestry to translate the vision into a measurable program, so that it does not cause new problems," he said in a press statement, quoted by InfoSAWIT , Sunday (12/1/2025).
Slamet also highlighted the importance of maintaining ecological balance in running this program. He warned that forest destruction could impact the availability of water for agriculture, which would ultimately be counterproductive to the goal of food security itself.
"The Ministry of Forestry should not follow suit and be mistaken. The ministry's contribution in supporting food self-sufficiency must ensure that forests remain intact and sustainable. If forests are damaged, the availability of water for agricultural production can be disrupted," said Slamet, a politician from the PKS faction.
Furthermore, Slamet proposed that the government prioritize the use of non-productive land outside forest areas to support the food self-sufficiency program. He considered optimizing abandoned land outside forest areas a more sustainable solution. Info Sawit
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Japan-Ishiba turns to Southeast Asia amid growing international uncertainty
With pledges to deepen security and economic cooperation, Prime Minister Shigeru Ishiba wrapped up a four-day visit to Malaysia and Indonesia on Saturday designed to shore up ties with Southeast Asia as China expands its regional clout and Donald Trump prepares to return to the White House.
During Ishiba’s first overseas trip aside from international conferences, the prime minister met with Malaysian leader Anwar Ibrahim and Indonesian President Prabowo Subianto, both of whom agreed to work more closely with Japan — not only in the more traditional economic, investment and energy arenas, but also on security matters.
Experts said Ishiba’s decision to prioritize Malaysia — this year’s chair of the Association of Southeast Asian Nations (ASEAN), an organization critical to Tokyo’s regional interests — and Indonesia — the region’s largest country and economy — was no coincidence.
The move, they noted, was meant to signal Tokyo’s continued commitment to the strategically important region, particularly to partners that, just like Japan, are seeking to mitigate any potential volatility under the incoming Trump administration.
“Indonesia and Malaysia are seeking opportunities to avoid being put under too much pressure from a more protectionist Trump administration, much like Ishiba did with his visit,” said Ian Chong, an associate professor at the National University of Singapore.
Given concerns that Washington might be less open for business under Trump, countries are now looking for alternatives and substitutes, Chong said, adding that Indonesia and Malaysia could provide opportunities for Japan and Japanese companies to develop their “China+1 strategies” — an approach that involves expanding manufacturing and sourcing to other countries to reduce reliance on Beijing.
Japan has been playing a more proactive role in the region since at least 2012. Its geostrategic shift began under Prime Minister Shinzo Abe and has focused on the Indo-Pacific as a new space to counterbalance China's rise.
The move has also included a push for greater security cooperation.
The reason for this is that Southeast Asia is not only critical to Japan's economic strategy but also as a supplier of energy and raw materials. Geography also plays a key role as Malaysia and Indonesia sit astride major shipping lanes, air routes and submarine cable lines that are key to Japan for trade, communications and fossil fuel imports.
While Tokyo has long been at the center of key regional production networks, it has been facing stiff competition from China over ASEAN markets, making Ishiba’s trip not only important to maintain Japan's enhanced role, but also to diversify relations while seeking greater geopolitical alignment.
Ishiba himself highlighted the region’s significance before the trip, telling reporters that Tokyo wanted to place “greater value” on relations with Southeast Asia as the international situation becomes “increasingly uncertain,” and that he would continue to ask Jakarta and Kuala Lumpur to “provide us with a steady supply of energy.”
The prime minister seems to have succeeded, with both Jakarta and Kuala Lumpur agreeing to deepen cooperation over both resources and infrastructure “to ensure energy security,” including Malaysia’s continued supply of liquefied natural gas, and “achieve decarbonization through diverse paths” such as hydrogen.
Geopolitically speaking, the visit, which also resulted in loans and a number of pledges to strengthen cooperation in education and people-to-people exchanges, also gave Ishiba the chance to cultivate personal relationships with both Anwar and Prabowo.
This was particularly important as both happen to be “rather dynamic leaders, with a deep interest in the evolving global order and who are not known to mince their words,” said Thomas Daniel from the Institute of Strategic and International Studies Malaysia.
Malaysia and Indonesia have long pursued a foreign policy based on neutrality and nonalignment.
To strike a balance between the great powers, they were among four Southeast Asian nations — along with Vietnam and Thailand — to have recently joined BRICS, a group of emerging economies that seeks to provide an alternative model to the Western-led Group of Seven. While Malaysia only became a BRICS partner, Indonesia joined as a full member.
Against this backdrop, the visit likely also offered Ishiba the opportunity to better understand Malaysia and Indonesia’s geopolitical stance and why they have sought to hedge by engaging with non-Western groups such as BRICS, said Kei Koga, an associate professor at Singapore’s Nanyang Technological University.
This understanding will be crucial, as the trip also focused on expanding security cooperation with both countries — which, just like Japan, are embroiled in maritime and territorial disputes with China — especially under Tokyo’s Official Security Assistance (OSA) framework, a military aid program launched in 2023. Japan Times
January 10, 2025
Higher productivity would only require additional 3.2 mln ha to meet Indonesian target for energy and food security
InfoSAWIT, JAKARTA – The government has finally set a strategic policy to develop Bio-Solar into B40, replacing the original plan of B50 on August 18, 2024. This step is considered safe because it only reduces the palm oil export quota by 4 million tons, so it does not trigger price fluctuations in the international market.
Palm oil prices
This development is an important momentum considering the area of national oil palm plantations that continues to grow significantly. From only 260,000 hectares in 1973, the majority of which belonged to state plantations, it has now reached 16.8 million hectares in 2024. With an additional land bank of 3.2 million hectares, the total area has the potential to reach 20 million hectares.
The government is committed to ensuring the availability of energy at affordable prices. However, the main challenge lies in increasing production. With the potential for developing B40 and even B100, Indonesian palm oil can be a price determinant in the global market.
The advantages of B40 are seen from the octane number of 52.8 and the sulfur content of only 1,500 ppm, making it compatible with European and Japanese diesel engines. This is expected to drive increased biodiesel consumption in 2025 and beyond.
However, the dominance of foreign companies in biodiesel production is a concern. Strategic efforts are needed to encourage greater participation from national companies.
Indonesia's palm oil productivity currently only reaches 35–36% of its actual potential. With normal rainfall in 2025, production is expected to increase by 2 million tons to 57 million tons. However, technical improvements and government stimulus support are needed to drive higher productivity.
One of the main obstacles is the minimal use of fertilizer, an average of only 3 kg per tree per year. This has an impact on the low yield of fresh fruit bunches (FFB) of only around 13 tons per hectare per year. With the addition of subsidized fertilizer and the application of technology such as Production Force Management, productivity can increase significantly. Info Sawit
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Ministry of Agriculture Issues Guidelines for Facilitating Community Gardens by Palm Oil Plantation Companies
InfoSAWIT, JAKARTA – The Ministry of Agriculture, through the Directorate General of Plantations, issued Circular Letter Number 21/SE/PI.400/E/01/2025 concerning Fulfillment of Obligations to Facilitate the Development of Surrounding Community Plantations (FPKMS) through Productive Business Activities. This policy emphasizes the obligation of plantation companies to support surrounding communities through the development of plantations or other forms of productive businesses
The circular refers to the Regulation of the Minister of Agriculture Number 18 of 2021 which requires plantation companies to facilitate the development of community gardens around 20% of the total area of their business permits. This provision was previously also emphasized in the Decree of the Director General of Plantations Number 152/Kpts/HK.160/12/2023 and the Circular of the Director General of Plantations Number B-347/KB.410/E/07/2023.
However, the implementation of this obligation is often hampered by the limited land available around the plantation location. Therefore, the new policy provides a solution by allowing companies to carry out these obligations through other forms of partnerships, such as productive business activities.
In this circular, companies are given flexibility to cooperate with the community in the cultivation of plantation commodities or other commodities, including rice, in accordance with the government's program to achieve food self-sufficiency. Forms of partnership activities include, provision of seeds, planting and maintenance of plants, provision of fertilizers and control of plant pests (OPT), provision of labor, and construction and maintenance of facilities.
This circular also serves as a guide for governors, regents, and mayors in fostering and supervising company compliance with FPKMS obligations. Acting Director General of Plantations, Heru Tri Widarto, who signed the circular on January 8, 2025, emphasized the importance of implementing FPKMS through productive business activities to provide real benefits to the surrounding community.
"This circular aims to ensure the obligations of plantation companies in implementing FPKMS, while also encouraging the improvement of the community's economy through productive business activities," said an excerpt of the circular seen by InfoSAWIT , Friday (10/1/2025).
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Tree islands ‘restore biodiversity’ in oil palm farms
Oil palm plantations are known for environmental harms such as biodiversity loss. A study suggests establishing tree islands within large oil palm farms could promote the recovery of native trees and biodiversity.
Environmentalists have long worried about the negative impacts of oil palm cultivation, especially on biodiversity when forests are burned and turned into plantations.
Now researchers say there is a solution that could mitigate the damage.
Setting up forests or “tree islands” in large oil palm farms can help restore biodiversity and ecosystems by aiding the natural regeneration of native trees, their study suggests.
Increasing international demand for palm oil triggered vast forest destruction in Indonesia and Malaysia – responsible for 85 per cent of global palm oil production.
These plantations have been a catastrophe for endangered animals, such as tigers in Indonesia’s Sumatra. They also aggravate conflicts with local Indonesian communities on traditional land rights.
In 2023, with the production of 47 million tonnes of crude palm oil, Indonesia became the leading palm oil exporter in the world. But in the past two decades, the country has also lost 3 million hectares of natural forest areas, thanks to the spread of oil palm plantations.
Published this month in the journal Science, the study says the extensive conversion of Southeast Asian natural forests into plantations of African oil palm (Elaeis guineensis Jacq.) has led to alarming losses of biodiversity, ecosystem functioning and evolutionary history.
The researchers say it’s essential to protect the remaining forests to conserve their rich, tropical biodiversity.
Our study demonstrates the potential of tree islands to transform biodiversity-poor agricultural lands into biodiversity-enriched ecosystems, offering a promising restoration strategy for oil palm landscapes.
Gustavo Paterno, researcher, Göttingen University
In the study, the researchers looked at how ecological restoration contributes to the recovery of biodiversity in oil palm agricultural areas in Sumatra. The researchers strategically planted trees to set up 52 tree islands of different sizes and diversity levels to find out how the restoration strategies influence biodiversity in the oil palm agricultural area.
“The main implication of our study is that it supports the use of tree islands, strategically planted patches of native vegetation within agricultural landscapes, as a viable approach to restoring plant diversity in oil palm landscapes,” said Gustavo Paterno, an author of the study and postdoctoral researcher at Göttingen University in Germany.
The researchers observed that six years after being set up, tree islands hosted a broad range of native species, including more than 2,700 woody plant species.
They say developing large and diverse tree islands is important for conserving “rare, endemic, and forest-associated” plant species in oil palm agricultural areas.
Tree islands speed up the natural revival of native trees by helping the spread of seeds by birds and wind, according to the study. This process improves biodiversity, important for developing resilient ecosystems that can resist climate change.
“Our study demonstrates the potential of tree islands to transform biodiversity-poor agricultural lands into biodiversity-enriched ecosystems, offering a promising restoration strategy for oil palm landscapes,” said Paterno.
“Based on these results, we recommend the establishment of large tree islands with a high initial diversity of planted tree species to promote biodiversity recovery within conventional oil palm plantations,” he told SciDev.Net.
However, Johny Tasirin, from the faculty of agriculture at the Indonesia-based Sam Ratulangi University, believes the solution has limitations.
“Overall, the native plants, birds, and insect diversity may increase, but I still doubt about recovering the large mammalian species which are a typical part of natural forests in Sumatra,” he told SciDev.Net.
Clara Zemp, assistant professor and head of the Conservation Biology Lab at the University of Neuchâtel in Switzerland, said: “Tree islands in oil palm landscapes do not replace existing rainforests that have unique value for biodiversity.
“Hence, the top priority is to protect remaining patches of natural forests and to avoid further deforestation.” Eco Business
Higher productivity would only require additional 3.2 mln ha to meet Indonesian target for energy and food security
InfoSAWIT, JAKARTA – The government has finally set a strategic policy to develop Bio-Solar into B40, replacing the original plan of B50 on August 18, 2024. This step is considered safe because it only reduces the palm oil export quota by 4 million tons, so it does not trigger price fluctuations in the international market.
Palm oil prices
This development is an important momentum considering the area of national oil palm plantations that continues to grow significantly. From only 260,000 hectares in 1973, the majority of which belonged to state plantations, it has now reached 16.8 million hectares in 2024. With an additional land bank of 3.2 million hectares, the total area has the potential to reach 20 million hectares.
The government is committed to ensuring the availability of energy at affordable prices. However, the main challenge lies in increasing production. With the potential for developing B40 and even B100, Indonesian palm oil can be a price determinant in the global market.
The advantages of B40 are seen from the octane number of 52.8 and the sulfur content of only 1,500 ppm, making it compatible with European and Japanese diesel engines. This is expected to drive increased biodiesel consumption in 2025 and beyond.
However, the dominance of foreign companies in biodiesel production is a concern. Strategic efforts are needed to encourage greater participation from national companies.
Indonesia's palm oil productivity currently only reaches 35–36% of its actual potential. With normal rainfall in 2025, production is expected to increase by 2 million tons to 57 million tons. However, technical improvements and government stimulus support are needed to drive higher productivity.
One of the main obstacles is the minimal use of fertilizer, an average of only 3 kg per tree per year. This has an impact on the low yield of fresh fruit bunches (FFB) of only around 13 tons per hectare per year. With the addition of subsidized fertilizer and the application of technology such as Production Force Management, productivity can increase significantly. Info Sawit
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Ministry of Agriculture Issues Guidelines for Facilitating Community Gardens by Palm Oil Plantation Companies
InfoSAWIT, JAKARTA – The Ministry of Agriculture, through the Directorate General of Plantations, issued Circular Letter Number 21/SE/PI.400/E/01/2025 concerning Fulfillment of Obligations to Facilitate the Development of Surrounding Community Plantations (FPKMS) through Productive Business Activities. This policy emphasizes the obligation of plantation companies to support surrounding communities through the development of plantations or other forms of productive businesses
The circular refers to the Regulation of the Minister of Agriculture Number 18 of 2021 which requires plantation companies to facilitate the development of community gardens around 20% of the total area of their business permits. This provision was previously also emphasized in the Decree of the Director General of Plantations Number 152/Kpts/HK.160/12/2023 and the Circular of the Director General of Plantations Number B-347/KB.410/E/07/2023.
However, the implementation of this obligation is often hampered by the limited land available around the plantation location. Therefore, the new policy provides a solution by allowing companies to carry out these obligations through other forms of partnerships, such as productive business activities.
In this circular, companies are given flexibility to cooperate with the community in the cultivation of plantation commodities or other commodities, including rice, in accordance with the government's program to achieve food self-sufficiency. Forms of partnership activities include, provision of seeds, planting and maintenance of plants, provision of fertilizers and control of plant pests (OPT), provision of labor, and construction and maintenance of facilities.
This circular also serves as a guide for governors, regents, and mayors in fostering and supervising company compliance with FPKMS obligations. Acting Director General of Plantations, Heru Tri Widarto, who signed the circular on January 8, 2025, emphasized the importance of implementing FPKMS through productive business activities to provide real benefits to the surrounding community.
"This circular aims to ensure the obligations of plantation companies in implementing FPKMS, while also encouraging the improvement of the community's economy through productive business activities," said an excerpt of the circular seen by InfoSAWIT , Friday (10/1/2025).
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Tree islands ‘restore biodiversity’ in oil palm farms
Oil palm plantations are known for environmental harms such as biodiversity loss. A study suggests establishing tree islands within large oil palm farms could promote the recovery of native trees and biodiversity.
Environmentalists have long worried about the negative impacts of oil palm cultivation, especially on biodiversity when forests are burned and turned into plantations.
Now researchers say there is a solution that could mitigate the damage.
Setting up forests or “tree islands” in large oil palm farms can help restore biodiversity and ecosystems by aiding the natural regeneration of native trees, their study suggests.
Increasing international demand for palm oil triggered vast forest destruction in Indonesia and Malaysia – responsible for 85 per cent of global palm oil production.
These plantations have been a catastrophe for endangered animals, such as tigers in Indonesia’s Sumatra. They also aggravate conflicts with local Indonesian communities on traditional land rights.
In 2023, with the production of 47 million tonnes of crude palm oil, Indonesia became the leading palm oil exporter in the world. But in the past two decades, the country has also lost 3 million hectares of natural forest areas, thanks to the spread of oil palm plantations.
Published this month in the journal Science, the study says the extensive conversion of Southeast Asian natural forests into plantations of African oil palm (Elaeis guineensis Jacq.) has led to alarming losses of biodiversity, ecosystem functioning and evolutionary history.
The researchers say it’s essential to protect the remaining forests to conserve their rich, tropical biodiversity.
Our study demonstrates the potential of tree islands to transform biodiversity-poor agricultural lands into biodiversity-enriched ecosystems, offering a promising restoration strategy for oil palm landscapes.
Gustavo Paterno, researcher, Göttingen University
In the study, the researchers looked at how ecological restoration contributes to the recovery of biodiversity in oil palm agricultural areas in Sumatra. The researchers strategically planted trees to set up 52 tree islands of different sizes and diversity levels to find out how the restoration strategies influence biodiversity in the oil palm agricultural area.
“The main implication of our study is that it supports the use of tree islands, strategically planted patches of native vegetation within agricultural landscapes, as a viable approach to restoring plant diversity in oil palm landscapes,” said Gustavo Paterno, an author of the study and postdoctoral researcher at Göttingen University in Germany.
The researchers observed that six years after being set up, tree islands hosted a broad range of native species, including more than 2,700 woody plant species.
They say developing large and diverse tree islands is important for conserving “rare, endemic, and forest-associated” plant species in oil palm agricultural areas.
Tree islands speed up the natural revival of native trees by helping the spread of seeds by birds and wind, according to the study. This process improves biodiversity, important for developing resilient ecosystems that can resist climate change.
“Our study demonstrates the potential of tree islands to transform biodiversity-poor agricultural lands into biodiversity-enriched ecosystems, offering a promising restoration strategy for oil palm landscapes,” said Paterno.
“Based on these results, we recommend the establishment of large tree islands with a high initial diversity of planted tree species to promote biodiversity recovery within conventional oil palm plantations,” he told SciDev.Net.
However, Johny Tasirin, from the faculty of agriculture at the Indonesia-based Sam Ratulangi University, believes the solution has limitations.
“Overall, the native plants, birds, and insect diversity may increase, but I still doubt about recovering the large mammalian species which are a typical part of natural forests in Sumatra,” he told SciDev.Net.
Clara Zemp, assistant professor and head of the Conservation Biology Lab at the University of Neuchâtel in Switzerland, said: “Tree islands in oil palm landscapes do not replace existing rainforests that have unique value for biodiversity.
“Hence, the top priority is to protect remaining patches of natural forests and to avoid further deforestation.” Eco Business
January 08. 2025
Indonesia rolls out B40 policy for diesel imports, emission cuts starting this month
JAKARTA, Jan 8 (Reuters) - Indonesia has clamped down on exports of used cooking oil (UCO) and palm oil residue to ensure supply to domestic cooking oil and biodiesel industries, the government said in a new regulation on Wednesday.
The step by the world's top producer and exporter of palm oil aims to help attain a new mandate starting from this year, of mixing 40% of palm oil-based fuel with diesel fuel, called B40, up from 35% previously, it said.
Authorities in Indonesia have been looking into ways to curb UCO exports, but the extent of the tightening was not immediately clear.
Last month, an official alleged that some cooking oil sold under a government programme called "Minyakita" had been mislabelled as UCO and shipped overseas for biodiesel feedstock, media said.
The new regulation, which takes effect immediately, requires all exporters of palm oil residue and UCO, including palm oil mill effluent (POME), to acquire an export allocation from the government.
Such allocations will be set at a meeting of officials of ministries such as trade and that which coordinates food affairs.
POME can be used to produce biogas, fertiliser, and fuel.
Indonesia's exports of UCO and palm oil residue from January to November 2024 stood at 3.95 million metric tons, down 13.75% from the corresponding 2023 period, data from Statistics Indonesia showed.
However, government officials have repeatedly said there were signs of scarcity of the Minyakita product, citing retailers' sale of such items at about a tenth higher than the government's maximum retail price. Reuters
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Malaysian Palm Oil Powerhouse FGV Collaborates on Traceability and Smallholders
KUALA LUMPUR, Jan 7 (Bernama) -- FGV Holdings Bhd (FGV) and the Malaysian Palm Oil Board (MPOB) have forged a strategic partnership through a memorandum of collaboration (MoC) to enhance traceability and empower smallholders.
The MoC is structured around three key pillars that will drive the transformation: first, empowering smallholders, whose success is fundamental to the growth and stability of the industry; second, ensuring full compliance with sustainability standards, securing a greener and more responsible future for palm oil production; and third, revolutionising the palm oil industry through the adoption of cutting-edge technologies that will enhance productivity and efficiency.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said under this collaboration, FGV, through its subsidiary, will assist MPOB to enhance the effectiveness and usability of existing MPOB platforms such as GeoPALM and the Sawit Intelligent Management System (SIMS).
This will involve integrating advanced technologies, including geolocation mapping, data verification, blockchain for traceability, and tools for data analysis and decision-making.
“We are witnessing a collaboration between MPOB and FGV on how we implement steps to capture data from smallholders, particularly to be included in the database managed by MPOB in SIMS.
“What FGV is doing today is adding in terms of traceability within the FGV company,” he told reporters after witnessing the signing of the MoC here today.
The document was signed by FGV chairman Tan Sri Rastam Mohd Isa, FGV group chief executive officer Fakhrunniam Othman, MPOB chairman Datuk Mohamad Helmy Othman Basha, and MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir.
By eliminating discrepancies and enhancing transparency, this initiative will strengthen traceability across the palm oil supply chain, ensuring compliance with increasingly stringent global regulations, including the European Union Deforestation Regulation (EUDR).
Rastam said through this partnership, the company will continue to reshape the future of Malaysia’s palm oil sector, strengthening both the economy and global standing.
“By collaborating with MPOB, we are not only advancing traceability systems to meet global standards but also equipping smallholders with the tools and knowledge needed to thrive in an increasingly competitive market,” he said.
Meanwhile, Mohamad Helmy said the collaboration will primarily focus on enhancing the transparency of data and polygon mapping information through the GeoPALM portal and compliance with international standards.
It also focuses on improving operational efficiency through more accurate data analysis, boosting the competitiveness of independent smallholders, mitigating environmental pollution risks, and increasing crop yields to strengthen the position of Malaysian palm oil in the international market.
Through geospatial data integration, smallholders, industry players, and policymakers will gain access to relevant information to ensure compliance with established standards which will directly enhance the global credibility of Malaysian palm oil.
As Malaysia’s largest off-taker of smallholders’ fresh fruit bunches (FFB), FGV sourced nearly two-thirds of its FFB supply, approximately 4.5 million tonnes, from FELDA settlers and independent smallholders at market prices.
In 2024, FGV engaged over 1,500 smallholders through sustainability programmes focusing on raising awareness of compliance and certification standards while addressing land management challenges.
FGV aims to expand these efforts in 2025. Bernama
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Malaysia backs Indonesia's commitment to B40 biodiesel mandate
KUALA LUMPUR: Malaysia backs the Indonesian government’s commitment to proceed with the B40 biodiesel mandate in 2025 despite its recent postponement.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said that implementing a higher mandatory biodiesel blend significantly supports the palm oil industry.
“Indonesia produces about 48 million tones of palm oil annually, and nearly 25 per cent of that amount is used for biodiesel production.
“Can you imagine if they do not use the biodiesel? So you will end up with that 25 per cent going to the world. There will be pricing pressure,” he told the press after a memorandum of collaboration signing ceremony between FGV Holdings Bhd and the Malaysian Palm Oil Board today.
Johari added that Indonesia is currently at the B40 biodiesel usage level, much higher than Malaysia, which is still at the B10 level.
Earlier, news reports said the Indonesian government has yet to implement the higher biodiesel blend, originally planned to begin on January 1, because industry participants are still waiting for the new regulations’ technical details, which has confused palm oil traders. Selangor Journal
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Indonesia’s Biodiesel Push: A Game-Changer for Malaysia’s Palm Oil Market
By Indrajit Paul
Indonesia, the world’s largest exporter of palm oil, is advancing its biodiesel program by increasing the blending ratio of palm-based biofuel with diesel to 40% (B40) in 2025, with plans to achieve a 50% blend (B50) by 2026. These measures align with Indonesia's goals to achieve energy self-sufficiency and eliminate diesel imports by 2026. However, they are poised to reshape global palm oil trade significantly.
1. Higher Domestic Consumption and Reduced Exports The B40 mandate will require 15.6 million kiloliters of palm oil for biodiesel production in 2025, substantially boosting Indonesia's domestic consumption. As a result, Indonesia’s domestic consumption is projected to rise by 6% to 22.3 million tonnes in 2024-25, up from 21.1 million tonnes the previous year. Consequently, Indonesia’s exports are expected to grow by only 9% to 24.2 million tonnes, despite an 8% increase in production to 46.5 million tonnes. This modest export growth reflects tightening global supplies, with Indonesia's ending stocks forecast to decline by 1% to 4.7 million tonnes.
2. Rising Export Levy and Cost Competitiveness
Indonesia’s crude palm oil (CPO) export levy is set to increase from 7.5% to 10%, adding to the burden of its existing export taxes. This move will make Indonesian CPO—already priced at a $146.30 per tonne premium over Malaysian palm oil—even less competitive in international markets. Combined with global CPO production projected to increase by 4% to 79.6 million tonnes in 2024-25, Malaysia stands to benefit from this cost differential.
3. Malaysia's Advantage
As Indonesia diverts more palm oil for biodiesel, Malaysia is poised to capitalize on growing global demand. Despite a slight 2% drop in production to 19.3 million tonnes in 2024-25, Malaysia’s relatively lower costs and smaller export levies make it an attractive alternative for international buyers. Malaysia’s exports, although projected to decline by 4% to 15.9 million tonnes, remain crucial in balancing global supply. Ending stocks in Malaysia are expected to fall by 3% to 1.9 million tonnes, signaling strong export demand.
4. Market Reactions and Challenges
Global palm oil exports are forecast to grow by 4% to 46.6 million tonnes in 2024-25. However, this growth comes amid rising domestic consumption, especially in Indonesia, where total supply is set to rise by 7% to 51.3 million tonnes. Concerns over the adequacy of Indonesia’s biodiesel subsidy fund and infrastructure readiness have delayed B40 implementation, creating opportunities for Malaysia to maintain or expand its market share.
5. Collaborative Support and Strategic Positioning
While Indonesia aggressively pursues its biodiesel mandate, Malaysia remains at a biodiesel blend of B10, allowing it to prioritize exports. Malaysia’s palm oil stock-to-use ratio, at 10%, is more favorable compared to Indonesia's declining ratio of 10% in 2024-25, reflecting a more export-oriented approach. Malaysia has expressed support for Indonesia’s biodiesel efforts, recognizing their potential to stabilize global palm oil prices by curbing oversupply.
Conclusion
Indonesia’s ambitious biodiesel policies mark a turning point in the global palm oil trade. By prioritizing domestic energy security, Indonesia is poised to reduce its exportable supplies, creating opportunities for Malaysia to emerge as a stronger player in the global market. With competitive pricing and a strategic export focus, Malaysia is well-positioned to fill the supply gap, attract global buyers, and sustain its palm oil industry’s growth. As the world navigates evolving trade dynamics, the shift in palm oil demand from Indonesia to Malaysia underscores the broader impacts of energy transitions on agricultural markets. Investing
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MPOB on future-proofing palm oil
THE Malaysian Palm Oil Board (MPOB), a government agency under the Ministry of Plantation and Commodities, is entrusted to promote and develop national objectives, policies and priorities for the health of the country’s palm oil sector. The Edge recently asked MPOB’s director-general Datuk Dr Ahmad Parveez Ghulam Kadir (pictured) for his thoughts on the state of Malaysia’s palm oil sector. Here are his emailed responses.
What are the top three challenges facing the country’s palm oil sector?
The Malaysian palm oil sector faces several critical challenges that threaten its productivity, global competitiveness and long-term sustainability. Among these challenges, three stand out: decreasing productivity, land constraints and regulatory pressures, and energy efficiency and waste management. Additionally, concerns regarding food safety and nutrition further complicate the landscape. Read more The Edge
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Attorney General Says There Are KLHK Officials Involved In Palm Oil Plantation Corruption
Attorney General ST Burhanuddin described that there were officials from the Ministry of Environment and Forestry (KLHK) who were involved in the alleged corruption case in the management of oil palm plantations for the 2005-2024 period.
He made this statement when answering questions about the suspect in the alleged corruption case, namely echelon I or II at the ministry.
"What is certain is there," Burhanuddin told reporters, Wednesday, January 8.
Although reluctant to explain clearly, Burhanuddin said that he had found several unlawful acts. So, in the near future the progress of handling the case will be conveyed.
"There are several things that have been investigated against the law, we are currently investigating, yes, of course, in a month or so," said Burhanuddin.
In handling the case, it is known that the AGO had searched the Ministry of Environment and Forestry's Secretariat General's office (Sekjen) and five other rooms.
The Head of the Attorney General's Office, Harli Siregar, said that the rooms that were searched were Satlakwasdal, the release of Forest Areas, and rooms in the directorate in charge of law enforcement.
"(The room that was searched) was the Secretariat of the Supervision and Control Implementation Unit (Satlakwasdal), the Directorate in charge of PNBP payments in the form of PSDH and DR, the Directorate in charge of the Release of Forest Areas, the Directorate in charge of Law Enforcement, and the Legal Bureau," said Harli. VOI
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US Senator Grassley Criticizes EPA’s UCO Import Verification Process
Grassley criticized EPA for relying heavily on foreign records to verify compliance with the Renewable Fuel Standard (RFS), calling the approach inadequate.
Sen. Chuck Grassley (R-Iowa) intensified his criticism of EPA over its method for verifying used cooking oil (UCO) imports. With a record 3.2 billion pounds of UCO imported through August 2024 — enough to displace 270 million bu. of soybeans — concerns are mounting about the impact on American farmers, the renewable fuel industry, and broader trade and environmental issues. Grassley criticized EPA for relying heavily on foreign records to verify compliance with the Renewable Fuel Standard (RFS), calling the approach inadequate. There are fears that imported UCO may be fraudulently blended with virgin vegetable oils, such as palm oil, undermining U.S. tax incentives. Grassley and other senators are demanding a more robust and transparent verification process to ensure the integrity of the RFS and safeguard American interests. AGWEB
Indonesia rolls out B40 policy for diesel imports, emission cuts starting this month
JAKARTA, Jan 8 (Reuters) - Indonesia has clamped down on exports of used cooking oil (UCO) and palm oil residue to ensure supply to domestic cooking oil and biodiesel industries, the government said in a new regulation on Wednesday.
The step by the world's top producer and exporter of palm oil aims to help attain a new mandate starting from this year, of mixing 40% of palm oil-based fuel with diesel fuel, called B40, up from 35% previously, it said.
Authorities in Indonesia have been looking into ways to curb UCO exports, but the extent of the tightening was not immediately clear.
Last month, an official alleged that some cooking oil sold under a government programme called "Minyakita" had been mislabelled as UCO and shipped overseas for biodiesel feedstock, media said.
The new regulation, which takes effect immediately, requires all exporters of palm oil residue and UCO, including palm oil mill effluent (POME), to acquire an export allocation from the government.
Such allocations will be set at a meeting of officials of ministries such as trade and that which coordinates food affairs.
POME can be used to produce biogas, fertiliser, and fuel.
Indonesia's exports of UCO and palm oil residue from January to November 2024 stood at 3.95 million metric tons, down 13.75% from the corresponding 2023 period, data from Statistics Indonesia showed.
However, government officials have repeatedly said there were signs of scarcity of the Minyakita product, citing retailers' sale of such items at about a tenth higher than the government's maximum retail price. Reuters
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Malaysian Palm Oil Powerhouse FGV Collaborates on Traceability and Smallholders
KUALA LUMPUR, Jan 7 (Bernama) -- FGV Holdings Bhd (FGV) and the Malaysian Palm Oil Board (MPOB) have forged a strategic partnership through a memorandum of collaboration (MoC) to enhance traceability and empower smallholders.
The MoC is structured around three key pillars that will drive the transformation: first, empowering smallholders, whose success is fundamental to the growth and stability of the industry; second, ensuring full compliance with sustainability standards, securing a greener and more responsible future for palm oil production; and third, revolutionising the palm oil industry through the adoption of cutting-edge technologies that will enhance productivity and efficiency.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said under this collaboration, FGV, through its subsidiary, will assist MPOB to enhance the effectiveness and usability of existing MPOB platforms such as GeoPALM and the Sawit Intelligent Management System (SIMS).
This will involve integrating advanced technologies, including geolocation mapping, data verification, blockchain for traceability, and tools for data analysis and decision-making.
“We are witnessing a collaboration between MPOB and FGV on how we implement steps to capture data from smallholders, particularly to be included in the database managed by MPOB in SIMS.
“What FGV is doing today is adding in terms of traceability within the FGV company,” he told reporters after witnessing the signing of the MoC here today.
The document was signed by FGV chairman Tan Sri Rastam Mohd Isa, FGV group chief executive officer Fakhrunniam Othman, MPOB chairman Datuk Mohamad Helmy Othman Basha, and MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir.
By eliminating discrepancies and enhancing transparency, this initiative will strengthen traceability across the palm oil supply chain, ensuring compliance with increasingly stringent global regulations, including the European Union Deforestation Regulation (EUDR).
Rastam said through this partnership, the company will continue to reshape the future of Malaysia’s palm oil sector, strengthening both the economy and global standing.
“By collaborating with MPOB, we are not only advancing traceability systems to meet global standards but also equipping smallholders with the tools and knowledge needed to thrive in an increasingly competitive market,” he said.
Meanwhile, Mohamad Helmy said the collaboration will primarily focus on enhancing the transparency of data and polygon mapping information through the GeoPALM portal and compliance with international standards.
It also focuses on improving operational efficiency through more accurate data analysis, boosting the competitiveness of independent smallholders, mitigating environmental pollution risks, and increasing crop yields to strengthen the position of Malaysian palm oil in the international market.
Through geospatial data integration, smallholders, industry players, and policymakers will gain access to relevant information to ensure compliance with established standards which will directly enhance the global credibility of Malaysian palm oil.
As Malaysia’s largest off-taker of smallholders’ fresh fruit bunches (FFB), FGV sourced nearly two-thirds of its FFB supply, approximately 4.5 million tonnes, from FELDA settlers and independent smallholders at market prices.
In 2024, FGV engaged over 1,500 smallholders through sustainability programmes focusing on raising awareness of compliance and certification standards while addressing land management challenges.
FGV aims to expand these efforts in 2025. Bernama
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Malaysia backs Indonesia's commitment to B40 biodiesel mandate
KUALA LUMPUR: Malaysia backs the Indonesian government’s commitment to proceed with the B40 biodiesel mandate in 2025 despite its recent postponement.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said that implementing a higher mandatory biodiesel blend significantly supports the palm oil industry.
“Indonesia produces about 48 million tones of palm oil annually, and nearly 25 per cent of that amount is used for biodiesel production.
“Can you imagine if they do not use the biodiesel? So you will end up with that 25 per cent going to the world. There will be pricing pressure,” he told the press after a memorandum of collaboration signing ceremony between FGV Holdings Bhd and the Malaysian Palm Oil Board today.
Johari added that Indonesia is currently at the B40 biodiesel usage level, much higher than Malaysia, which is still at the B10 level.
Earlier, news reports said the Indonesian government has yet to implement the higher biodiesel blend, originally planned to begin on January 1, because industry participants are still waiting for the new regulations’ technical details, which has confused palm oil traders. Selangor Journal
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Indonesia’s Biodiesel Push: A Game-Changer for Malaysia’s Palm Oil Market
By Indrajit Paul
Indonesia, the world’s largest exporter of palm oil, is advancing its biodiesel program by increasing the blending ratio of palm-based biofuel with diesel to 40% (B40) in 2025, with plans to achieve a 50% blend (B50) by 2026. These measures align with Indonesia's goals to achieve energy self-sufficiency and eliminate diesel imports by 2026. However, they are poised to reshape global palm oil trade significantly.
1. Higher Domestic Consumption and Reduced Exports The B40 mandate will require 15.6 million kiloliters of palm oil for biodiesel production in 2025, substantially boosting Indonesia's domestic consumption. As a result, Indonesia’s domestic consumption is projected to rise by 6% to 22.3 million tonnes in 2024-25, up from 21.1 million tonnes the previous year. Consequently, Indonesia’s exports are expected to grow by only 9% to 24.2 million tonnes, despite an 8% increase in production to 46.5 million tonnes. This modest export growth reflects tightening global supplies, with Indonesia's ending stocks forecast to decline by 1% to 4.7 million tonnes.
2. Rising Export Levy and Cost Competitiveness
Indonesia’s crude palm oil (CPO) export levy is set to increase from 7.5% to 10%, adding to the burden of its existing export taxes. This move will make Indonesian CPO—already priced at a $146.30 per tonne premium over Malaysian palm oil—even less competitive in international markets. Combined with global CPO production projected to increase by 4% to 79.6 million tonnes in 2024-25, Malaysia stands to benefit from this cost differential.
3. Malaysia's Advantage
As Indonesia diverts more palm oil for biodiesel, Malaysia is poised to capitalize on growing global demand. Despite a slight 2% drop in production to 19.3 million tonnes in 2024-25, Malaysia’s relatively lower costs and smaller export levies make it an attractive alternative for international buyers. Malaysia’s exports, although projected to decline by 4% to 15.9 million tonnes, remain crucial in balancing global supply. Ending stocks in Malaysia are expected to fall by 3% to 1.9 million tonnes, signaling strong export demand.
4. Market Reactions and Challenges
Global palm oil exports are forecast to grow by 4% to 46.6 million tonnes in 2024-25. However, this growth comes amid rising domestic consumption, especially in Indonesia, where total supply is set to rise by 7% to 51.3 million tonnes. Concerns over the adequacy of Indonesia’s biodiesel subsidy fund and infrastructure readiness have delayed B40 implementation, creating opportunities for Malaysia to maintain or expand its market share.
5. Collaborative Support and Strategic Positioning
While Indonesia aggressively pursues its biodiesel mandate, Malaysia remains at a biodiesel blend of B10, allowing it to prioritize exports. Malaysia’s palm oil stock-to-use ratio, at 10%, is more favorable compared to Indonesia's declining ratio of 10% in 2024-25, reflecting a more export-oriented approach. Malaysia has expressed support for Indonesia’s biodiesel efforts, recognizing their potential to stabilize global palm oil prices by curbing oversupply.
Conclusion
Indonesia’s ambitious biodiesel policies mark a turning point in the global palm oil trade. By prioritizing domestic energy security, Indonesia is poised to reduce its exportable supplies, creating opportunities for Malaysia to emerge as a stronger player in the global market. With competitive pricing and a strategic export focus, Malaysia is well-positioned to fill the supply gap, attract global buyers, and sustain its palm oil industry’s growth. As the world navigates evolving trade dynamics, the shift in palm oil demand from Indonesia to Malaysia underscores the broader impacts of energy transitions on agricultural markets. Investing
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MPOB on future-proofing palm oil
THE Malaysian Palm Oil Board (MPOB), a government agency under the Ministry of Plantation and Commodities, is entrusted to promote and develop national objectives, policies and priorities for the health of the country’s palm oil sector. The Edge recently asked MPOB’s director-general Datuk Dr Ahmad Parveez Ghulam Kadir (pictured) for his thoughts on the state of Malaysia’s palm oil sector. Here are his emailed responses.
What are the top three challenges facing the country’s palm oil sector?
The Malaysian palm oil sector faces several critical challenges that threaten its productivity, global competitiveness and long-term sustainability. Among these challenges, three stand out: decreasing productivity, land constraints and regulatory pressures, and energy efficiency and waste management. Additionally, concerns regarding food safety and nutrition further complicate the landscape. Read more The Edge
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Attorney General Says There Are KLHK Officials Involved In Palm Oil Plantation Corruption
Attorney General ST Burhanuddin described that there were officials from the Ministry of Environment and Forestry (KLHK) who were involved in the alleged corruption case in the management of oil palm plantations for the 2005-2024 period.
He made this statement when answering questions about the suspect in the alleged corruption case, namely echelon I or II at the ministry.
"What is certain is there," Burhanuddin told reporters, Wednesday, January 8.
Although reluctant to explain clearly, Burhanuddin said that he had found several unlawful acts. So, in the near future the progress of handling the case will be conveyed.
"There are several things that have been investigated against the law, we are currently investigating, yes, of course, in a month or so," said Burhanuddin.
In handling the case, it is known that the AGO had searched the Ministry of Environment and Forestry's Secretariat General's office (Sekjen) and five other rooms.
The Head of the Attorney General's Office, Harli Siregar, said that the rooms that were searched were Satlakwasdal, the release of Forest Areas, and rooms in the directorate in charge of law enforcement.
"(The room that was searched) was the Secretariat of the Supervision and Control Implementation Unit (Satlakwasdal), the Directorate in charge of PNBP payments in the form of PSDH and DR, the Directorate in charge of the Release of Forest Areas, the Directorate in charge of Law Enforcement, and the Legal Bureau," said Harli. VOI
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US Senator Grassley Criticizes EPA’s UCO Import Verification Process
Grassley criticized EPA for relying heavily on foreign records to verify compliance with the Renewable Fuel Standard (RFS), calling the approach inadequate.
Sen. Chuck Grassley (R-Iowa) intensified his criticism of EPA over its method for verifying used cooking oil (UCO) imports. With a record 3.2 billion pounds of UCO imported through August 2024 — enough to displace 270 million bu. of soybeans — concerns are mounting about the impact on American farmers, the renewable fuel industry, and broader trade and environmental issues. Grassley criticized EPA for relying heavily on foreign records to verify compliance with the Renewable Fuel Standard (RFS), calling the approach inadequate. There are fears that imported UCO may be fraudulently blended with virgin vegetable oils, such as palm oil, undermining U.S. tax incentives. Grassley and other senators are demanding a more robust and transparent verification process to ensure the integrity of the RFS and safeguard American interests. AGWEB
January 07, 2025
Indonesia can expand 18 million hectares of palm oil without catastrophic damage to environment
Experts and activists criticized President Prabowo Subianto’s recent remarks, which defended Indonesia’s palm oil industry and support for its expansion.
President Prabowo’s statements came across as an attempt to defend the Indonesian palm oil industry from criticisms over its environmental impacts, particularly from foreign countries such as in the European Union (EU).
“And I think in the future, we also need to plant more palm oil. We don’t need to be afraid of endangering − what’s it called − deforestation, right?” the president said on December 30, 2024.
He added that oil palms are trees and have leaves, in which they produce oxygen, absorbs carbon dioxide. So he asked why Indonesia was accused of deforestation, and further defended that these things do not make any sense.
Environmental activists and experts criticized this narrative as it downplays the scientific evidence about the role of oil palm plantations in driving deforestation, biodiversity loss and carbon emissions.
“Saying that palm oil is a forest crop is so bad because it seems like we do not understand the difference between forests and plantations,” Herry Purnomo, senior scientist at the Center for International Forestry Research (CIFOR), and professor at the Bogor Institute of Agriculture (IPB), said as quoted by Mongabay on Friday, January 3, 2025.
This oversimplification of the issue could fuel greater environmental degradation and land conflicts, further undermining Indonesia’s global climate commitments.
“If we defend palm oil blindly without a scientific basis, other countries will blindly accuse us as well. They will perceive all palm oil (produced in Indonesia) to be coming from deforestation,” he said.
The EU’s new antideforestation regulation (EUDR) comes into effect at the end of 2025, with palm oil as one of the seven commodities that will be affected. It mandates strict traceability and sustainability for imports of these commodities into the EU market.
By downplaying environmental criticism, Indonesia could face backlash from markets like the EU that demand the products to be sustainable.
Implications
Forests replaced by oil palm plantations are not as effective in storing carbon. Clearing forest to establish palm plantations releases more CO2 than can be sequestered by growing oil palms on the same plot, studies demonstrated.
While a new oil palm plantation may grow faster and sequester carbon at a higher annual rate than a naturally regenerating forest that stores 300 tons of CO2 per hectare (ha) or 10 times more than oil palm plantations, it will still end up storing less carbon than leaving the original forest.
Carbon losses are even great on peatlands that store vast amounts of carbon in their soil, which is drained to prepare for planting.
Essentially, President Prabowo is downplaying the ecological damage by oil palm plantations, including deforestation, biodiversity loss and carbon emissions from land clearing and peatland destruction.
Deforestation, threats to biodiversity
Expansion in oil palm plantations has been a major driver of deforestation in Indonesia over the past 20 years, accounting for one-third of Indonesia’s loss of old-growth forest, an area nearly 3 million ha, or half the size of Belgium.
CIFOR demonstrates that oil palm plantations were the largest contributor to deforestation in Indonesia between 2021 and 2022, resulting in annual greenhouse emissions of 200 million metric tons (mt), which coincide with the rapid expansion of oil palm plantations in Indonesia to meet the growing global demand.
It is also linked to biodiversity loss as oil palm plantations support far fewer species than do forests and often also fewer than other tree crops.
According to the International Union for Conservation of Nature (IUCN), a global wildlife conservation authority, oil palm cultivation already threatens at least 193 species listed as critically endangered, or vulnerable.
Meanwhile, there are still 2.4 million ha of intact forest that could be lost if palm oil expansion in the country is left unchecked. It is also likely to push threatened species closer to extinction. With 39 percent of amphibians, 54 percent of mammals, and 64 percent of birds are set to be affected by future expansion of the industry, as reported by IUCN.
It also raises concern to human safety, by increasing the risk of natural disasters. The clearing of forest for oil palm plantations increases flooding risk and water contamination for downstream communities as crops when it is young, is nowhere as effective at retaining water as the forest it replaced.
Recent research by Indonesian environmental and human rights advocacy group Satya Bumi and environmental NGOs − Sawit Watch and Madani Berkelanjutan − estimated that the maximum extent of oil palm plantations that Indonesia can host without doing further catastrophic damage to the environment is 18.15 million ha.
“If the development of the palm oil industry is left unchecked, there will be massive ecological and economic loss,” Andi Muttaqien, executive director of Satya Bumi, said on Friday, January 3, 2025. Indonesia Business Post
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Higher yields, lower emissions key to palm oil’s future in Malaysia
PLANTATION and Commodities Minister Datuk Seri Johari Abdul Ghani (picture) addressed key concerns about the implementation of the Malaysian Sustainable Palm Oil Standard 2.0 (MSPO 2.0), emphasising the importance of adhering to sustainability guidelines and boosting productivity within the palm oil sector.
Speaking about deforestation regulations, Johari explained that land deforested after 2020 cannot be used for palm oil cultivation.
“Any land deforested before 2020 is eligible for palm oil cultivation, but if it was deforested after 2020, it cannot be used for planting. This aligns with MSPO 2.0 and our global commitments,” he said at a press conference on Tuesday.
He stressed that non-compliance could lead to challenges in exporting palm oil products, affecting Malaysia’s position in international markets.
Johari noted Malaysia’s longstanding commitment to maintaining at least 50% forest cover, as pledged to the United Nations in 1992.
Currently, forest cover stands at 54%, demonstrating the country’s dedication to environmental preservation. However, he acknowledged the challenges of balancing sustainability with productivity.
Additionally, he highlighted the potential for improving yields in palm oil plantations, particularly among smallholders who manage 1.5 million hectares of land.
“If smallholders increase their yields by just five to 10 tonnes per hectare, it could significantly boost overall production without the need for additional land,” he said.
This would not only enhance profitability but also align with Malaysia’s goals to reduce CO2 emissions and meet global sustainability standards.
At present, 85% of smallholders and nearly 90% of large companies are MSPO certified.
Johari emphasised the importance of achieving high productivity while ensuring compliance with sustainability practices.
“By improving yields and adhering to MSPO 2.0, Malaysia can maintain its position as a trusted exporter of sustainable palm oil,” he added. The Malaysian Reserve
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Indonesia’s B40 biodiesel mandate a key support for CPO demand, says Johari Ghani
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani cautions that countries like Malaysia would face downward pressure on palm oil prices if Indonesia did not proceed with its biodiesel programme. (Photo by Suhaimi Yusuf/The Edge)
KUALA LUMPUR (Jan 7): Indonesia’s B40 biodiesel mandate, which requires a higher palm oil mix, is a crucial factor that will lend support to the demand for the edible oil, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
“They (Indonesia) have allocated almost 25% of that for biodiesel production, which greatly supports the industry. Imagine if they didn’t use palm oil for biodiesel — this 25% surplus would flood the global market,” Johari told the media after the signing ceremony of a collaboration between FGV Holdings Bhd (KL:FGV) and the Malaysian Palm Oil Board (MPOB).
However, Indonesia has postponed the implementation of its planned increase in the mandatory biodiesel blend from 35% (B35) to 40% (B40). The delay, originally scheduled for Jan 1, 2025, is due to infrastructure adjustments and other technical considerations.
The B40 biodiesel mandate requires the ratio of 40% palm oil to 60% diesel.
Johari cautioned that countries like Malaysia would face downward pressure on palm oil prices if Indonesia did not proceed with its biodiesel programme.
To support the B40 initiative, Indonesia, the world’s largest palm oil producer, may need to raise its export levy to 10% from the current 7.5%, potentially making its palm oil products more expensive compared to those produced in Malaysia. This will in turn result in an increase in the demand for Malaysia-produced crude palm oil (CPO), pushing its average selling price higher.
Meanwhile, the collaboration between FGV and MPOB aims to explore opportunities for integrating advanced technologies such as geolocation mapping, data verification, blockchain for traceability, and analytical tools to enhance decision-making.
The collaboration also seeks to support smallholders in complying with the Malaysian Sustainable Palm Oil (MSPO) standards and European Union Deforestation Regulation (EUDR) requirements, thereby boosting their competitiveness and facilitating access to premium palm oil markets. The Edge
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Uncertainty for energy policy as US awaits new administration: 2025 preview
The US feedstock and biodiesel industries face significant uncertainty due to potential policy changes, including pending import tariffs, the transition from the Blenders Tax Credit to the 45Z Clean Fuel Production Tax Credit, and delayed federal guidance
While the US readies for the return of a Trump administration in January, the feedstock and biodiesel industries hang in the balance, awaiting further clarity on import tariffs and the finalization of tax credits. Meanwhile, the electric vehicle (EV) and sustainable aviation fuel (SAF) sectors also face uncertainty as climate-friendly policies and standards are sure to come under the scrutiny of legacy energy company-backing Trump, experts told Fastmarkets.
Feedstocks
US vegetable oil prices are in for more turbulence in 2025, with import tariffs and the finalization of biofuel tax credits expected to have an impact on market direction.
“The next steps for biofuel policy and used cooking oil (UCO) tariffs are the difference between sub-40-cent bean oil and 50-cent bean oil,” Stabro Corp partner Alex Fox said in a December report.
Globally, palm oil prices surged in 2024, with US soybean oil ending the year as the cheapest edible oil. In October, Argentina’s soybean oil basis premiums rose above those in the US for the first time since 2022, making the US Gulf export market a more attractive option for foreign buyers and driving a rush of new US soybean oil exports in the final weeks of 2024.
Contrary to the uptick in foreign exports, demand from the US biofuel sector fell sharply in 2024, after producers slowed or halted feedstock purchases ahead of the transition from the Blenders Tax Credit (BTC) to the 45Z Clean Fuel Production Tax Credit (CFPC) on January 1.
45Z is expected to provide a much lower credit incentive for biofuels produced from soybean oil and canola oil, compared with the flat $1-per-gallon credit that is granted under the BTC.
The US Treasury Department has repeatedly delayed the release of final guidance on eligibility and emissions rates under the new credit. As a result, many smaller biofuel producers told Fastmarkets that they intended to idle production in January due to the lack of CFPC clarity.
While the Treasury indicated it would provide final guidance on 45Z before President Biden leaves office in January, many within the industry have called for a one-year extension of the BTC through the end of 2025. This would give the Treasury extra time to complete the necessary guidance on the CFPC and would be supportive for soybean oil prices.
Although US soybean oil stocks ended 2024 at their tightest levels in years, the US market was previously flooded with cheap imports of foreign feedstocks like UCO and tallow, and this also weighed on US vegetable oil demand and prices. Fast Markets
Indonesia can expand 18 million hectares of palm oil without catastrophic damage to environment
Experts and activists criticized President Prabowo Subianto’s recent remarks, which defended Indonesia’s palm oil industry and support for its expansion.
President Prabowo’s statements came across as an attempt to defend the Indonesian palm oil industry from criticisms over its environmental impacts, particularly from foreign countries such as in the European Union (EU).
“And I think in the future, we also need to plant more palm oil. We don’t need to be afraid of endangering − what’s it called − deforestation, right?” the president said on December 30, 2024.
He added that oil palms are trees and have leaves, in which they produce oxygen, absorbs carbon dioxide. So he asked why Indonesia was accused of deforestation, and further defended that these things do not make any sense.
Environmental activists and experts criticized this narrative as it downplays the scientific evidence about the role of oil palm plantations in driving deforestation, biodiversity loss and carbon emissions.
“Saying that palm oil is a forest crop is so bad because it seems like we do not understand the difference between forests and plantations,” Herry Purnomo, senior scientist at the Center for International Forestry Research (CIFOR), and professor at the Bogor Institute of Agriculture (IPB), said as quoted by Mongabay on Friday, January 3, 2025.
This oversimplification of the issue could fuel greater environmental degradation and land conflicts, further undermining Indonesia’s global climate commitments.
“If we defend palm oil blindly without a scientific basis, other countries will blindly accuse us as well. They will perceive all palm oil (produced in Indonesia) to be coming from deforestation,” he said.
The EU’s new antideforestation regulation (EUDR) comes into effect at the end of 2025, with palm oil as one of the seven commodities that will be affected. It mandates strict traceability and sustainability for imports of these commodities into the EU market.
By downplaying environmental criticism, Indonesia could face backlash from markets like the EU that demand the products to be sustainable.
Implications
Forests replaced by oil palm plantations are not as effective in storing carbon. Clearing forest to establish palm plantations releases more CO2 than can be sequestered by growing oil palms on the same plot, studies demonstrated.
While a new oil palm plantation may grow faster and sequester carbon at a higher annual rate than a naturally regenerating forest that stores 300 tons of CO2 per hectare (ha) or 10 times more than oil palm plantations, it will still end up storing less carbon than leaving the original forest.
Carbon losses are even great on peatlands that store vast amounts of carbon in their soil, which is drained to prepare for planting.
Essentially, President Prabowo is downplaying the ecological damage by oil palm plantations, including deforestation, biodiversity loss and carbon emissions from land clearing and peatland destruction.
Deforestation, threats to biodiversity
Expansion in oil palm plantations has been a major driver of deforestation in Indonesia over the past 20 years, accounting for one-third of Indonesia’s loss of old-growth forest, an area nearly 3 million ha, or half the size of Belgium.
CIFOR demonstrates that oil palm plantations were the largest contributor to deforestation in Indonesia between 2021 and 2022, resulting in annual greenhouse emissions of 200 million metric tons (mt), which coincide with the rapid expansion of oil palm plantations in Indonesia to meet the growing global demand.
It is also linked to biodiversity loss as oil palm plantations support far fewer species than do forests and often also fewer than other tree crops.
According to the International Union for Conservation of Nature (IUCN), a global wildlife conservation authority, oil palm cultivation already threatens at least 193 species listed as critically endangered, or vulnerable.
Meanwhile, there are still 2.4 million ha of intact forest that could be lost if palm oil expansion in the country is left unchecked. It is also likely to push threatened species closer to extinction. With 39 percent of amphibians, 54 percent of mammals, and 64 percent of birds are set to be affected by future expansion of the industry, as reported by IUCN.
It also raises concern to human safety, by increasing the risk of natural disasters. The clearing of forest for oil palm plantations increases flooding risk and water contamination for downstream communities as crops when it is young, is nowhere as effective at retaining water as the forest it replaced.
Recent research by Indonesian environmental and human rights advocacy group Satya Bumi and environmental NGOs − Sawit Watch and Madani Berkelanjutan − estimated that the maximum extent of oil palm plantations that Indonesia can host without doing further catastrophic damage to the environment is 18.15 million ha.
“If the development of the palm oil industry is left unchecked, there will be massive ecological and economic loss,” Andi Muttaqien, executive director of Satya Bumi, said on Friday, January 3, 2025. Indonesia Business Post
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Higher yields, lower emissions key to palm oil’s future in Malaysia
PLANTATION and Commodities Minister Datuk Seri Johari Abdul Ghani (picture) addressed key concerns about the implementation of the Malaysian Sustainable Palm Oil Standard 2.0 (MSPO 2.0), emphasising the importance of adhering to sustainability guidelines and boosting productivity within the palm oil sector.
Speaking about deforestation regulations, Johari explained that land deforested after 2020 cannot be used for palm oil cultivation.
“Any land deforested before 2020 is eligible for palm oil cultivation, but if it was deforested after 2020, it cannot be used for planting. This aligns with MSPO 2.0 and our global commitments,” he said at a press conference on Tuesday.
He stressed that non-compliance could lead to challenges in exporting palm oil products, affecting Malaysia’s position in international markets.
Johari noted Malaysia’s longstanding commitment to maintaining at least 50% forest cover, as pledged to the United Nations in 1992.
Currently, forest cover stands at 54%, demonstrating the country’s dedication to environmental preservation. However, he acknowledged the challenges of balancing sustainability with productivity.
Additionally, he highlighted the potential for improving yields in palm oil plantations, particularly among smallholders who manage 1.5 million hectares of land.
“If smallholders increase their yields by just five to 10 tonnes per hectare, it could significantly boost overall production without the need for additional land,” he said.
This would not only enhance profitability but also align with Malaysia’s goals to reduce CO2 emissions and meet global sustainability standards.
At present, 85% of smallholders and nearly 90% of large companies are MSPO certified.
Johari emphasised the importance of achieving high productivity while ensuring compliance with sustainability practices.
“By improving yields and adhering to MSPO 2.0, Malaysia can maintain its position as a trusted exporter of sustainable palm oil,” he added. The Malaysian Reserve
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Indonesia’s B40 biodiesel mandate a key support for CPO demand, says Johari Ghani
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani cautions that countries like Malaysia would face downward pressure on palm oil prices if Indonesia did not proceed with its biodiesel programme. (Photo by Suhaimi Yusuf/The Edge)
KUALA LUMPUR (Jan 7): Indonesia’s B40 biodiesel mandate, which requires a higher palm oil mix, is a crucial factor that will lend support to the demand for the edible oil, said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
“They (Indonesia) have allocated almost 25% of that for biodiesel production, which greatly supports the industry. Imagine if they didn’t use palm oil for biodiesel — this 25% surplus would flood the global market,” Johari told the media after the signing ceremony of a collaboration between FGV Holdings Bhd (KL:FGV) and the Malaysian Palm Oil Board (MPOB).
However, Indonesia has postponed the implementation of its planned increase in the mandatory biodiesel blend from 35% (B35) to 40% (B40). The delay, originally scheduled for Jan 1, 2025, is due to infrastructure adjustments and other technical considerations.
The B40 biodiesel mandate requires the ratio of 40% palm oil to 60% diesel.
Johari cautioned that countries like Malaysia would face downward pressure on palm oil prices if Indonesia did not proceed with its biodiesel programme.
To support the B40 initiative, Indonesia, the world’s largest palm oil producer, may need to raise its export levy to 10% from the current 7.5%, potentially making its palm oil products more expensive compared to those produced in Malaysia. This will in turn result in an increase in the demand for Malaysia-produced crude palm oil (CPO), pushing its average selling price higher.
Meanwhile, the collaboration between FGV and MPOB aims to explore opportunities for integrating advanced technologies such as geolocation mapping, data verification, blockchain for traceability, and analytical tools to enhance decision-making.
The collaboration also seeks to support smallholders in complying with the Malaysian Sustainable Palm Oil (MSPO) standards and European Union Deforestation Regulation (EUDR) requirements, thereby boosting their competitiveness and facilitating access to premium palm oil markets. The Edge
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Uncertainty for energy policy as US awaits new administration: 2025 preview
The US feedstock and biodiesel industries face significant uncertainty due to potential policy changes, including pending import tariffs, the transition from the Blenders Tax Credit to the 45Z Clean Fuel Production Tax Credit, and delayed federal guidance
While the US readies for the return of a Trump administration in January, the feedstock and biodiesel industries hang in the balance, awaiting further clarity on import tariffs and the finalization of tax credits. Meanwhile, the electric vehicle (EV) and sustainable aviation fuel (SAF) sectors also face uncertainty as climate-friendly policies and standards are sure to come under the scrutiny of legacy energy company-backing Trump, experts told Fastmarkets.
Feedstocks
US vegetable oil prices are in for more turbulence in 2025, with import tariffs and the finalization of biofuel tax credits expected to have an impact on market direction.
“The next steps for biofuel policy and used cooking oil (UCO) tariffs are the difference between sub-40-cent bean oil and 50-cent bean oil,” Stabro Corp partner Alex Fox said in a December report.
Globally, palm oil prices surged in 2024, with US soybean oil ending the year as the cheapest edible oil. In October, Argentina’s soybean oil basis premiums rose above those in the US for the first time since 2022, making the US Gulf export market a more attractive option for foreign buyers and driving a rush of new US soybean oil exports in the final weeks of 2024.
Contrary to the uptick in foreign exports, demand from the US biofuel sector fell sharply in 2024, after producers slowed or halted feedstock purchases ahead of the transition from the Blenders Tax Credit (BTC) to the 45Z Clean Fuel Production Tax Credit (CFPC) on January 1.
45Z is expected to provide a much lower credit incentive for biofuels produced from soybean oil and canola oil, compared with the flat $1-per-gallon credit that is granted under the BTC.
The US Treasury Department has repeatedly delayed the release of final guidance on eligibility and emissions rates under the new credit. As a result, many smaller biofuel producers told Fastmarkets that they intended to idle production in January due to the lack of CFPC clarity.
While the Treasury indicated it would provide final guidance on 45Z before President Biden leaves office in January, many within the industry have called for a one-year extension of the BTC through the end of 2025. This would give the Treasury extra time to complete the necessary guidance on the CFPC and would be supportive for soybean oil prices.
Although US soybean oil stocks ended 2024 at their tightest levels in years, the US market was previously flooded with cheap imports of foreign feedstocks like UCO and tallow, and this also weighed on US vegetable oil demand and prices. Fast Markets
January 06, 2025
Prabowo reinvigorates the development of oil palm plantations
The President’s statement marks a turning point for Indonesian palm oil after years of moratorium on the issuance of new permits and licenses of oil palm plantation development since 2011. Edi Suhardi (The Jakarta Post)
One of the five most important points of policy President Prabowo Subianto made at the National Development Planning Consultation in Jakarta on Dec. 30 urges massive expansion of oil palm plantations because of the strategic role of this commodity in the Indonesian economy and in the global supply of vegetable oil.
“I noticed during my official visits overseas how so many countries are concerned about being unable to get enough palm oil supplies from Indonesia due to a steady increase in the international market demand for that commodity,” the President said.
He wondered why massive deforestation has often been blamed on this commodity when palm oil is harvested from trees with many leaves that absorb carbon dioxide.
“We therefore should massively expand our oil palm plantations and I hereby order provincial governors, regents and all law enforcement agencies to protect existing oil palm estates. They are the nation’s assets,” Prabowo pointed out.
Even before Prabowo was elected and inaugurated, he often pointed out the strategic role of palm oil as a source of food, as well as numerous other consumer goods and biofuel. He has lambasted the perpetual negative international campaign, especially in Europe, against the commodity. Many national and international studies have also noted the increasing role of palm oil not only in Indonesia’s economy, but also as a source of more than 40 percent of the world’s consumption of vegetable oil. The Jakarta Post
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Gapki Supports President Prabowo's Policy To Make State Strategic Asset Palm Oil
JAKARTA - The Indonesian Palm Oil Entrepreneurs Association (Gapki) appreciates President Prabowo Subianto's statement that palm oil is a state asset so that all parties are obliged to protect it.
General Chairperson of Gapki Eddy Martono said President Prabowo really understands palm oil as a strategic commodity that is beneficial for meeting national food and energy needs.
"The president has a good policy to make palm oil a strategic commodity that must be maintained by all components of the nation. Because the energy independence program through B40 or B50 requires palm oil as its raw material," he said in a statement in Jakarta , quoted by Antara, Monday, January 6.
Eddy also hopes for the support of regional heads and Polri-TNI officers to maintain palm oil as a state asset and have an important role in the Indonesian economy as directed by President Prabowo.
According to him, with the President's direction, the problem of theft and looting of palm oil in several areas can be resolved immediately, it can be stopped so that there is legal certainty and comfort in doing business.
Currently, he continued, his party always coordinates with law enforcement officials to prevent and overcome criminal acts in oil palm plantations such as theft and looting.
"Criminalism in oil palm plantations has now increased significantly, not as severe as a few months ago," he said.
Following up on President Prabowo's directive, Eddy hopes that the Strategic Commodity Bill will soon be passed to support the existence of palm oil and business comfort.
"So with the Strategic Commodity Law, we can support the protection of the palm oil industry as a state asset," he said.
Previously, President Prabowo said oil palm plantations were state assets. According to him, many countries need palm oil from Indonesia because it has strategic value. Therefore, Prabowo asked regional heads, soldiers, and the police to take care of him.
"So, regents, governors, army officials, police, take care of our oil palm plantations everywhere. Those are state assets," Prabowo said while giving a briefing at the National Development Planning Conference at the Bappenas Building, Central Jakarta, Monday 30 December 2024. VOI
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Millions of Indonesian farmers support President Prabowo on palm oil production expansion
JAKARTA - Chairman of the Central Leadership Council of the Indonesian Palm Oil Farmers Association (DPP Apkasindo) Gulat Manurung said as many as 17 million farmers supported President Prabowo Subianto's idea of palm oil that must be jointly guarded.
For your information, Prabowo's statement regarding the addition of oil palm planting was conveyed at the National Development Planning Deliberation for the Implementation of the National Medium-Term Development Plan (Musrenbangnas RPJMN) 2025-2029.
"Apkasindo appreciates President Prabowo for the palm oil policy. 17 million families of oil palm farmers from Aceh to Papua provide full support," said Gulat as reported by ANTARA, Monday, January 6.
According to him, palm oil is a gift from God to Indonesia.
Other countries long for palm oil to grow in their country with various environmental modifications, but their productivity is far below the economics.
"So the award should be Indonesia's bargaining power to the world," he said.
According to him, the fact is that so far, anyone is too free to corner palm oil without any strong regulatory protection against palm oil strategic commodities.
"So we oil palm farmers are very proud and touched by the President's speech," said Gulat.
He also said the president's directive regarding opening a new palm oil plantation should be read in a broad sense for palm oil productivity.
Where, to increase palm oil productivity can be done in two ways.
First, replanting or rejuvenation of people's palm oil (PSR) which is known for its intensification or upstreaming. The replanting policy can make people's palm oil productivity increase 3-4 times.
Second, the strategy of intensification or increasing the area of oil palm land. According to him, this hope is very wide open considering that the Indonesian forest is still much wider above the minimum standard (forest vs non-forest).
However, he recommends optimizing more degraded or abandoned land, former mining or claims for forest areas that are no longer forested as recommended by the 2023 IPB Faculty of Forestry and Environment research results.
On the other hand, President of the Asian Society of Agricultural Economists (ASAE) Bustal Arifin revealed that the ministers of the Red and White Cabinet must work hard to translate the President's directives regarding plans to add oil palm head land.
If later it becomes a national policy, he hopes that all components of the nation will oversee together by prioritizing the principle of sustainability.
He said that so far based on the National Medium Term Development Plan (RPJM) there has been no additional palm oil as stated by President Prabowo.
Therefore, if later President Prabowo's plan is to be implemented, there needs to be a new policy.
"Because after all, the finalization of the activity (accretion of oil palm) is in the policy. If there will be a new policy, later we really need to guard it the same," said Bustatul.
Regarding the question of whether palm oil is indeed a contributor to the rate of deforestation, Bustanul asked to think about the consequences well.
He explained, if there is a change in the utilization from forest to palm oil, there must be a change in the ability to reduce and store carbon.
Forest plants are certain to have higher capture power and carbon storage power than palm oil plants. In fact, forests also have less carbon depletion than palm oil.
"From there, experts examine it to the best of details, if there is a change in forests to palm oil, there must be a reforestation or affirmation that must be added. So there is compensation, if there is a change there is a reduction," said Bustanul. VOI
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Indonesia-EU Trade Pact Deadline Pushed to First Half of 2025
Jakarta. Indonesia has pushed back the deadline for its trade pact with the European Union or EU with Jakarta eyeing to complete the negotiations within the first half of 2025.
Both sides have been negotiating the Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA) since 2016. Former President Joko “Jokowi” Widodo wanted to finish the trade pact last year, although time has shown that they failed to come to a conclusion in 2024. As Indonesia welcomes a new year, the Trade Ministry has renewed the Indonesia-EU CEPA target, now aiming to conclude the talks no later than this June.
“We have already substantially concluded 85 percent of the Indonesia-EU CEPA,” Trade Minister Budi Santoso told reporters in Jakarta on Monday.
Budi did not say what had been causing the delay, forcing the pact to undergo 19 rounds of talks and counting. Bogor hosted the most recent round of negotiations that would significantly ease trade barriers in mid-2024. A report from the meeting revealed that both sides had not come to an agreement on export and import restrictions. Their discussions on investment conditions also remained inconclusive.
Indonesia has set an export target of nearly $294.5 billion for 2025. The archipelagic country also wants its micro, small and medium businesses to contribute $19.3 billion to the overall export figures this year.
In 2023, Indonesia-EU trade amounted to $30.8 billion with Jakarta posting a $2.6 billion surplus, government data shows. Indonesia mainly exports palm oil to the EU.
Despite being a consumer of Indonesian palm oil, the European bloc has been critical of the country’s top commodity. It has even raised trade barriers by launching the anti-deforestation policy EUDR which mandates exporters to prove that their palm oil does not come from deforested land. The EUDR was supposed to enter into force late last month. Companies now have a year to comply with the rules with micro and small-scale enterprises having extra time until the end of June 2026. President Prabowo Subianto recently commented on the EUDR.
“Europe has threatened to cut down on its palm oil imports, so we told them ‘thank you’. We will just not sell our palm oil to Europe. And they are panicking because that would disrupt their chocolate, detergent, and cosmetic production, [all of which] use palm oil,” Prabowo said in Jakarta last week. Jakarta Globe
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Demand for Malaysian palm oil could rise if Indonesia raises exports levy — TA Securities
(JAN 6): Demand for Malaysia’s palm oil could rise if Indonesia goes through with its plan to raise export levy to support the higher biodiesel mandate, TA Securities said on Monday.
Raising the export levy to 10% would add US$26.49 per tonne, making Indonesian crude palm oil (CPO) even more expensive than Malaysia’s product, the research house said. The price of Indonesia’s palm oil is already at a premium of US$146.30 per tonne above that of Malaysia, it noted.
“We believe that the relatively high Indonesian CPO export tax and duty could drive demand toward Malaysian CPO, supporting its price and market share,” TA Securities said.
The proposed increase in Indonesia’s export levy comes following a delay in the rollout of the B40 mandate — which raises the blend of palm-based methyl ester with traditional petroleum diesel to 40% from 35% currently — for infrastructure adjustments and other technical details.
Rising prices of the edible oil used in everything from lipstick to infant formula have also threatened the viability of the mandate. The programme, initially slated for Jan 1, was expected to soak up domestic output amid burgeoning stockpiles and support Indonesia's energy transition.
Raising the export levy to 10% would add US$26.49 per tonne, making Indonesian crude palm oil (CPO) even more expensive than Malaysia’s product, the research house said. The price of Indonesia’s palm oil is already at a premium of US$146.30 per tonne above that of Malaysia, it noted.
“We believe that the relatively high Indonesian CPO export tax and duty could drive demand toward Malaysian CPO, supporting its price and market share,” TA Securities said.
The proposed increase in Indonesia’s export levy comes following a delay in the rollout of the B40 mandate — which raises the blend of palm-based methyl ester with traditional petroleum diesel to 40% from 35% currently — for infrastructure adjustments and other technical details.
Rising prices of the edible oil used in everything from lipstick to infant formula have also threatened the viability of the mandate. The programme, initially slated for Jan 1, was expected to soak up domestic output amid burgeoning stockpiles and support Indonesia's energy transition.
Palm oil futures eased off highs in the final month of 2024 amid seasonal high production period and were up 20% for the whole year amid concerns over supply due to adverse weather conditions. The benchmark third-month contract was trading at RM4,226 on Bursa Malaysia Derivatives.
Palm oil’s premium over gasoil has surged to about US$305 per tonne, more than three times the averages in the past three years and five years.
“The market is increasingly worried about whether Indonesia's biodiesel subsidy fund can adequately bridge the price gap between biodiesel and diesel,” TA Securities said.
The Palm Oil Plantation Fund Management Agency of Indonesia projects a funding requirement of 47 trillion Indonesian rupiah for 2025, far exceeding its anticipated revenue of up to 21 trillion rupiah. The Edge
Prabowo reinvigorates the development of oil palm plantations
The President’s statement marks a turning point for Indonesian palm oil after years of moratorium on the issuance of new permits and licenses of oil palm plantation development since 2011. Edi Suhardi (The Jakarta Post)
One of the five most important points of policy President Prabowo Subianto made at the National Development Planning Consultation in Jakarta on Dec. 30 urges massive expansion of oil palm plantations because of the strategic role of this commodity in the Indonesian economy and in the global supply of vegetable oil.
“I noticed during my official visits overseas how so many countries are concerned about being unable to get enough palm oil supplies from Indonesia due to a steady increase in the international market demand for that commodity,” the President said.
He wondered why massive deforestation has often been blamed on this commodity when palm oil is harvested from trees with many leaves that absorb carbon dioxide.
“We therefore should massively expand our oil palm plantations and I hereby order provincial governors, regents and all law enforcement agencies to protect existing oil palm estates. They are the nation’s assets,” Prabowo pointed out.
Even before Prabowo was elected and inaugurated, he often pointed out the strategic role of palm oil as a source of food, as well as numerous other consumer goods and biofuel. He has lambasted the perpetual negative international campaign, especially in Europe, against the commodity. Many national and international studies have also noted the increasing role of palm oil not only in Indonesia’s economy, but also as a source of more than 40 percent of the world’s consumption of vegetable oil. The Jakarta Post
--------
Gapki Supports President Prabowo's Policy To Make State Strategic Asset Palm Oil
JAKARTA - The Indonesian Palm Oil Entrepreneurs Association (Gapki) appreciates President Prabowo Subianto's statement that palm oil is a state asset so that all parties are obliged to protect it.
General Chairperson of Gapki Eddy Martono said President Prabowo really understands palm oil as a strategic commodity that is beneficial for meeting national food and energy needs.
"The president has a good policy to make palm oil a strategic commodity that must be maintained by all components of the nation. Because the energy independence program through B40 or B50 requires palm oil as its raw material," he said in a statement in Jakarta , quoted by Antara, Monday, January 6.
Eddy also hopes for the support of regional heads and Polri-TNI officers to maintain palm oil as a state asset and have an important role in the Indonesian economy as directed by President Prabowo.
According to him, with the President's direction, the problem of theft and looting of palm oil in several areas can be resolved immediately, it can be stopped so that there is legal certainty and comfort in doing business.
Currently, he continued, his party always coordinates with law enforcement officials to prevent and overcome criminal acts in oil palm plantations such as theft and looting.
"Criminalism in oil palm plantations has now increased significantly, not as severe as a few months ago," he said.
Following up on President Prabowo's directive, Eddy hopes that the Strategic Commodity Bill will soon be passed to support the existence of palm oil and business comfort.
"So with the Strategic Commodity Law, we can support the protection of the palm oil industry as a state asset," he said.
Previously, President Prabowo said oil palm plantations were state assets. According to him, many countries need palm oil from Indonesia because it has strategic value. Therefore, Prabowo asked regional heads, soldiers, and the police to take care of him.
"So, regents, governors, army officials, police, take care of our oil palm plantations everywhere. Those are state assets," Prabowo said while giving a briefing at the National Development Planning Conference at the Bappenas Building, Central Jakarta, Monday 30 December 2024. VOI
--------
Millions of Indonesian farmers support President Prabowo on palm oil production expansion
JAKARTA - Chairman of the Central Leadership Council of the Indonesian Palm Oil Farmers Association (DPP Apkasindo) Gulat Manurung said as many as 17 million farmers supported President Prabowo Subianto's idea of palm oil that must be jointly guarded.
For your information, Prabowo's statement regarding the addition of oil palm planting was conveyed at the National Development Planning Deliberation for the Implementation of the National Medium-Term Development Plan (Musrenbangnas RPJMN) 2025-2029.
"Apkasindo appreciates President Prabowo for the palm oil policy. 17 million families of oil palm farmers from Aceh to Papua provide full support," said Gulat as reported by ANTARA, Monday, January 6.
According to him, palm oil is a gift from God to Indonesia.
Other countries long for palm oil to grow in their country with various environmental modifications, but their productivity is far below the economics.
"So the award should be Indonesia's bargaining power to the world," he said.
According to him, the fact is that so far, anyone is too free to corner palm oil without any strong regulatory protection against palm oil strategic commodities.
"So we oil palm farmers are very proud and touched by the President's speech," said Gulat.
He also said the president's directive regarding opening a new palm oil plantation should be read in a broad sense for palm oil productivity.
Where, to increase palm oil productivity can be done in two ways.
First, replanting or rejuvenation of people's palm oil (PSR) which is known for its intensification or upstreaming. The replanting policy can make people's palm oil productivity increase 3-4 times.
Second, the strategy of intensification or increasing the area of oil palm land. According to him, this hope is very wide open considering that the Indonesian forest is still much wider above the minimum standard (forest vs non-forest).
However, he recommends optimizing more degraded or abandoned land, former mining or claims for forest areas that are no longer forested as recommended by the 2023 IPB Faculty of Forestry and Environment research results.
On the other hand, President of the Asian Society of Agricultural Economists (ASAE) Bustal Arifin revealed that the ministers of the Red and White Cabinet must work hard to translate the President's directives regarding plans to add oil palm head land.
If later it becomes a national policy, he hopes that all components of the nation will oversee together by prioritizing the principle of sustainability.
He said that so far based on the National Medium Term Development Plan (RPJM) there has been no additional palm oil as stated by President Prabowo.
Therefore, if later President Prabowo's plan is to be implemented, there needs to be a new policy.
"Because after all, the finalization of the activity (accretion of oil palm) is in the policy. If there will be a new policy, later we really need to guard it the same," said Bustatul.
Regarding the question of whether palm oil is indeed a contributor to the rate of deforestation, Bustanul asked to think about the consequences well.
He explained, if there is a change in the utilization from forest to palm oil, there must be a change in the ability to reduce and store carbon.
Forest plants are certain to have higher capture power and carbon storage power than palm oil plants. In fact, forests also have less carbon depletion than palm oil.
"From there, experts examine it to the best of details, if there is a change in forests to palm oil, there must be a reforestation or affirmation that must be added. So there is compensation, if there is a change there is a reduction," said Bustanul. VOI
--------
Indonesia-EU Trade Pact Deadline Pushed to First Half of 2025
Jakarta. Indonesia has pushed back the deadline for its trade pact with the European Union or EU with Jakarta eyeing to complete the negotiations within the first half of 2025.
Both sides have been negotiating the Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA) since 2016. Former President Joko “Jokowi” Widodo wanted to finish the trade pact last year, although time has shown that they failed to come to a conclusion in 2024. As Indonesia welcomes a new year, the Trade Ministry has renewed the Indonesia-EU CEPA target, now aiming to conclude the talks no later than this June.
“We have already substantially concluded 85 percent of the Indonesia-EU CEPA,” Trade Minister Budi Santoso told reporters in Jakarta on Monday.
Budi did not say what had been causing the delay, forcing the pact to undergo 19 rounds of talks and counting. Bogor hosted the most recent round of negotiations that would significantly ease trade barriers in mid-2024. A report from the meeting revealed that both sides had not come to an agreement on export and import restrictions. Their discussions on investment conditions also remained inconclusive.
Indonesia has set an export target of nearly $294.5 billion for 2025. The archipelagic country also wants its micro, small and medium businesses to contribute $19.3 billion to the overall export figures this year.
In 2023, Indonesia-EU trade amounted to $30.8 billion with Jakarta posting a $2.6 billion surplus, government data shows. Indonesia mainly exports palm oil to the EU.
Despite being a consumer of Indonesian palm oil, the European bloc has been critical of the country’s top commodity. It has even raised trade barriers by launching the anti-deforestation policy EUDR which mandates exporters to prove that their palm oil does not come from deforested land. The EUDR was supposed to enter into force late last month. Companies now have a year to comply with the rules with micro and small-scale enterprises having extra time until the end of June 2026. President Prabowo Subianto recently commented on the EUDR.
“Europe has threatened to cut down on its palm oil imports, so we told them ‘thank you’. We will just not sell our palm oil to Europe. And they are panicking because that would disrupt their chocolate, detergent, and cosmetic production, [all of which] use palm oil,” Prabowo said in Jakarta last week. Jakarta Globe
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Demand for Malaysian palm oil could rise if Indonesia raises exports levy — TA Securities
(JAN 6): Demand for Malaysia’s palm oil could rise if Indonesia goes through with its plan to raise export levy to support the higher biodiesel mandate, TA Securities said on Monday.
Raising the export levy to 10% would add US$26.49 per tonne, making Indonesian crude palm oil (CPO) even more expensive than Malaysia’s product, the research house said. The price of Indonesia’s palm oil is already at a premium of US$146.30 per tonne above that of Malaysia, it noted.
“We believe that the relatively high Indonesian CPO export tax and duty could drive demand toward Malaysian CPO, supporting its price and market share,” TA Securities said.
The proposed increase in Indonesia’s export levy comes following a delay in the rollout of the B40 mandate — which raises the blend of palm-based methyl ester with traditional petroleum diesel to 40% from 35% currently — for infrastructure adjustments and other technical details.
Rising prices of the edible oil used in everything from lipstick to infant formula have also threatened the viability of the mandate. The programme, initially slated for Jan 1, was expected to soak up domestic output amid burgeoning stockpiles and support Indonesia's energy transition.
Raising the export levy to 10% would add US$26.49 per tonne, making Indonesian crude palm oil (CPO) even more expensive than Malaysia’s product, the research house said. The price of Indonesia’s palm oil is already at a premium of US$146.30 per tonne above that of Malaysia, it noted.
“We believe that the relatively high Indonesian CPO export tax and duty could drive demand toward Malaysian CPO, supporting its price and market share,” TA Securities said.
The proposed increase in Indonesia’s export levy comes following a delay in the rollout of the B40 mandate — which raises the blend of palm-based methyl ester with traditional petroleum diesel to 40% from 35% currently — for infrastructure adjustments and other technical details.
Rising prices of the edible oil used in everything from lipstick to infant formula have also threatened the viability of the mandate. The programme, initially slated for Jan 1, was expected to soak up domestic output amid burgeoning stockpiles and support Indonesia's energy transition.
Palm oil futures eased off highs in the final month of 2024 amid seasonal high production period and were up 20% for the whole year amid concerns over supply due to adverse weather conditions. The benchmark third-month contract was trading at RM4,226 on Bursa Malaysia Derivatives.
Palm oil’s premium over gasoil has surged to about US$305 per tonne, more than three times the averages in the past three years and five years.
“The market is increasingly worried about whether Indonesia's biodiesel subsidy fund can adequately bridge the price gap between biodiesel and diesel,” TA Securities said.
The Palm Oil Plantation Fund Management Agency of Indonesia projects a funding requirement of 47 trillion Indonesian rupiah for 2025, far exceeding its anticipated revenue of up to 21 trillion rupiah. The Edge
January 05, 2025
SK Energy, Korea’s first refiner to export sustainable aviation fuel to Europe
SAF is emerging as a next-generation eco-friendly energy source as many countries impose stricter emission rules
SK Energy Co., South Korea’s largest oil refiner, said on Sunday it has shipped its first batch of sustainable aviation fuel (SAF) to Europe, which imposes one of the world’s strictest carbon neutrality regulations in the aviation industry.
With the shipment, SK Energy, a unit of the country’s top energy company and battery maker SK Innovation Co., has become Korea’s first oil refiner to export SAF to Europe.
SAF, produced from bio-based feedstock such as waste cooking oil and palm oil instead of fossil fuels, is gaining attention as a next-generation eco-friendly energy source as it significantly reduces carbon emissions.
With ongoing global decarbonization initiatives, a growing number of countries are mandating the use of SAF blends, pointing to continued SAF market growth.
The European Union will require at least 2% SAF blending in aviation fuel starting in January, while Singapore plans to mandate a minimum of 1% SAF blending from 2026.
Korea is also preparing to introduce SAF blending requirements in 2027. KED Global
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Indonesia aims to end diesel imports by 2026
The Indonesian government is preparing to implement the mandatory 50% biodiesel (B50) programme in 2026 to stop diesel imports, according to Minister of Energy and Mineral Resources Bahlil Lahadalia.
Jakarta (VNA) – The Indonesian government is preparing to implement the mandatory 50% biodiesel (B50) programme in 2026 to stop diesel imports, according to Minister of Energy and Mineral Resources Bahlil Lahadalia.
As part of the energy transition programme, the government will start implementing the mandatory B40 this year while preparing for the implementation of B50 next year.
He said that the B50 programme aligns with President Prabowo Subianto’s directive to achieve energy security.
He went on to say that the implementation of B50 will increase Indonesia’s energy reserves and support the goal of increasing its ability to meet domestic energy needs and reduce imports.
Meanwhile, Deputy Minister Yuliot Tanjung said that the policy of mandatory B40 biodiesel use will be implemented fully in February this year. Vietnam Plus
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EUDR Policy Delay Gives Indonesia Time to Prepare Palm Oil Governance
InfoSAWIT, JAKARTA – The emergence of the proposal to postpone the European Union Deforestation Regulation (EUDR) policy is like a breath of fresh air for palm oil players in producing countries including Indonesia. This postponement is believed to be additional time to mature further action.
Secretary General of the Council of Palm Oil Producing Countries (CPOPC), Rizal Affandi Lukman welcomed the proposed postponement. According to him, the postponement is important to provide additional time for palm oil producing countries and the European Union (EU) to mature their preparations in meeting the regulatory requirements. The EUDR, which aims to reduce deforestation due to certain commodities, including palm oil, has become a major issue in trade relations between producing countries and the EU.
Since May 2023, CPOPC has been actively facilitating the Joint Mission on the EUDR, with its summit on 12 September 2024 in the Ad Hoc Joint Task Force EUDR forum. During this period, CPOPC has consistently advocated for this postponement, working closely with the governments of Indonesia, Malaysia, and the European Union. They have also engaged in dialogue with industry, non-governmental organizations, and consumers in the EU.
Rizal emphasized that the delay of the EUDR will give more time to prepare producing countries, especially in the management of palm oil. Palm oil is the most stringent vegetable oil in terms of sustainability standards. "In Indonesia, sustainability is regulated through the Indonesian Sustainable Palm Oil (ISPO) certification, while in Malaysia through the Malaysian Sustainable Palm Oil (MSPO)," he told InfoSAWIT recently.
With this certification, producing countries already have documents that can be part of the EUDR requirements, such as the Due Diligence Statement (DDS). The delay will allow smallholders to enter national systems such as the National Dashboard, which ensures they remain part of the supply chain.
One of the efforts being undertaken by the Indonesian government is the development of the National Dashboard, which is part of Workstream 3 in the five EUDR Working Groups ( Workstreams ). The National Dashboard will serve as a platform capable of providing data, information, and documents needed to meet EUDR requirements, especially in terms of traceability. Info Sawit
SK Energy, Korea’s first refiner to export sustainable aviation fuel to Europe
SAF is emerging as a next-generation eco-friendly energy source as many countries impose stricter emission rules
SK Energy Co., South Korea’s largest oil refiner, said on Sunday it has shipped its first batch of sustainable aviation fuel (SAF) to Europe, which imposes one of the world’s strictest carbon neutrality regulations in the aviation industry.
With the shipment, SK Energy, a unit of the country’s top energy company and battery maker SK Innovation Co., has become Korea’s first oil refiner to export SAF to Europe.
SAF, produced from bio-based feedstock such as waste cooking oil and palm oil instead of fossil fuels, is gaining attention as a next-generation eco-friendly energy source as it significantly reduces carbon emissions.
With ongoing global decarbonization initiatives, a growing number of countries are mandating the use of SAF blends, pointing to continued SAF market growth.
The European Union will require at least 2% SAF blending in aviation fuel starting in January, while Singapore plans to mandate a minimum of 1% SAF blending from 2026.
Korea is also preparing to introduce SAF blending requirements in 2027. KED Global
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Indonesia aims to end diesel imports by 2026
The Indonesian government is preparing to implement the mandatory 50% biodiesel (B50) programme in 2026 to stop diesel imports, according to Minister of Energy and Mineral Resources Bahlil Lahadalia.
Jakarta (VNA) – The Indonesian government is preparing to implement the mandatory 50% biodiesel (B50) programme in 2026 to stop diesel imports, according to Minister of Energy and Mineral Resources Bahlil Lahadalia.
As part of the energy transition programme, the government will start implementing the mandatory B40 this year while preparing for the implementation of B50 next year.
He said that the B50 programme aligns with President Prabowo Subianto’s directive to achieve energy security.
He went on to say that the implementation of B50 will increase Indonesia’s energy reserves and support the goal of increasing its ability to meet domestic energy needs and reduce imports.
Meanwhile, Deputy Minister Yuliot Tanjung said that the policy of mandatory B40 biodiesel use will be implemented fully in February this year. Vietnam Plus
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EUDR Policy Delay Gives Indonesia Time to Prepare Palm Oil Governance
InfoSAWIT, JAKARTA – The emergence of the proposal to postpone the European Union Deforestation Regulation (EUDR) policy is like a breath of fresh air for palm oil players in producing countries including Indonesia. This postponement is believed to be additional time to mature further action.
Secretary General of the Council of Palm Oil Producing Countries (CPOPC), Rizal Affandi Lukman welcomed the proposed postponement. According to him, the postponement is important to provide additional time for palm oil producing countries and the European Union (EU) to mature their preparations in meeting the regulatory requirements. The EUDR, which aims to reduce deforestation due to certain commodities, including palm oil, has become a major issue in trade relations between producing countries and the EU.
Since May 2023, CPOPC has been actively facilitating the Joint Mission on the EUDR, with its summit on 12 September 2024 in the Ad Hoc Joint Task Force EUDR forum. During this period, CPOPC has consistently advocated for this postponement, working closely with the governments of Indonesia, Malaysia, and the European Union. They have also engaged in dialogue with industry, non-governmental organizations, and consumers in the EU.
Rizal emphasized that the delay of the EUDR will give more time to prepare producing countries, especially in the management of palm oil. Palm oil is the most stringent vegetable oil in terms of sustainability standards. "In Indonesia, sustainability is regulated through the Indonesian Sustainable Palm Oil (ISPO) certification, while in Malaysia through the Malaysian Sustainable Palm Oil (MSPO)," he told InfoSAWIT recently.
With this certification, producing countries already have documents that can be part of the EUDR requirements, such as the Due Diligence Statement (DDS). The delay will allow smallholders to enter national systems such as the National Dashboard, which ensures they remain part of the supply chain.
One of the efforts being undertaken by the Indonesian government is the development of the National Dashboard, which is part of Workstream 3 in the five EUDR Working Groups ( Workstreams ). The National Dashboard will serve as a platform capable of providing data, information, and documents needed to meet EUDR requirements, especially in terms of traceability. Info Sawit
January 04, 2025
Palm oil, natural rubber to remain key export, revenue drivers
KUALA LUMPUR: The agricultural commodities, a key sector for the Malaysian economy, has seen robust growth in 2024 and is poised for further growth especially for palm oil this year, industry officials and observers said.
The sector - comprising six commodities namely palm oil, rubber, timber, cocoa, pepper and kenaf - has significantly bolstered the nation's economy, they added.
Sector's Contribution
According to the Ministry of Plantation and Commodities data, the sector contributed RM64.6 billion to Malaysia's gross domestic product (GDP) from January to September 2024, representing 5.3 per cent of the GDP.
The sector also played a critical role in international trade, contributing RM152.1 billion to exports, which accounted for 12.2 per cent of the country's total exports. This marked a notable 15.3 per cent increase from the same period in 2023.
On the import side, the sector's value stood at RM54.8 billion from January to October 2024, leading to a total trade value of RM206.8 billion and a trade balance of RM97.3 billion.
Palm Oil: Sustaining Eonomic Momentum
Palm oil continued to be Malaysia's most significant agricultural commodity in 2024, accounting for a substantial share of the sector's GDP and export contributions.
According to the data from Malaysian Palm Oil Board (MPOB), crude palm oil (CPO) production rose five per cent to 17.85 million tonnes from 17.00 million tonnes in 2023.
The board said exports of palm oil and other palm-based products grew by 10.2 per cent, amounting to 24.57 million tonnes compared to 22.28 million tonnes in 2023, with the total export value increasing significantly by 14.3 per cent to RM99.29 billion, driven by high palm oil prices.
India, China, Kenya, the European Union and Turkey remained the key export markets.
Palm oil stocks in November 2024 decreased to 1.84 million tonnes from 2.40 million tonnes in November 2023, supported by reduced imports and increased exports.
The average CPO price from January to November 2024 was RM4,120 per tonne, a 7.8 per cent rise compared to RM3,821 per tonne in the same period in 2023.
MPOB director-general Datuk Ahmad Parveez Ghulam Kadir said the Malaysian palm oil industry performed better in 2024 compared to 2023, with notable improvements in production, exports and prices.
For the full year of 2024, Ahmad Parveez said CPO production is expected to recover to at least 19.00 million tonnes (as projected by MPOB), supported by improved labour conditions and expanded productive areas, particularly in Peninsular Malaysia and Sarawak.
"Palm oil exports are expected to grow to 15.60 million tonnes, driven by stable demand from major markets like China and the EU.
"Additionally, Indonesia's higher usage of palm oil for biodiesel is anticipated to keep stocks below 2.00 million tonnes, with CPO prices forecasted to remain strong, trading between RM3,900 and RM4,200 per tonne," he told Business Times.
Palm Oil Industry To Stage Stronger Performance
For 2025, Ahmad Parveez said the industry is poised for further growth. Continued labour improvements and strong export demand are expected to contribute to a more positive outlook.
"The specific details and projections for 2025 will be unveiled at the Palm Oil Economic Review and Outlook (R&O) Seminar 2025 on Jan 14. This seminar will provide comprehensive insights into the industry's performance, current trends, and future prospects," he said.
Fitch Ratings raised its 2025 and beyond assumptions for Malaysian CPO prices due to a slower rebound in Indonesia's yields and rising biodiesel consumption there.
The firm raised its price assumptions to US$800 (RM3,578) per tonne for 2025 and US$700 per tonne thereafter.
"We had earlier assumed an average price of US$750 per tonne in 2025 and US$650 per tonne thereafter. Our revised assumptions reflect a slower rebound in yields in Indonesia, the world's largest palm oil producer, and increasing biodiesel consumption in the country," it said.
Despite the hike, Fitch said its assumption implies that prices will weaken from 2024, due to better supply of palm oil and competition with soybean oil.
Fitch expects a rebound in CPO output in 2025, helped by a weak La Nina.
Malaysia Continues To Lead Rubber Industry
According to the data by Malaysian Rubber Board (MRB), the rubber industry contributed RM27.56 billion from January until October last year, an increase of 20.8 per cent year-on-year. This represents 2.2 per cent of the total national exports which valued at RM1,242.88 billion.
Malaysia is maintaining itself as a global leader in the rubber glove sector with 420,000 hectares of untapped rubber fields ready to be processed.
The Department of Statistics Malaysia (DOSM) said exports of Malaysia's natural rubber grew 20.6 per cent month on month to 48,151 tonnes in October.
The export performance was contributed by natural rubber-based products including gloves, tires, tube and rubber thread.
Gloves were the main exports of rubber-based products with its value jumping 21.8 per cent month on month to RM1.5 billion (US$340 million) in October.
Despite the robust sector performances, Public Investment Bank Bhd remains cautious about the average selling price trends for rubber gloves moving forward.
The firm said the anticipated decline in raw material prices in the first half of 2025 could prompt Top Glove Corp Bhd to maintain flat or marginally lower pricing to prioritise market share.
"Nevertheless, we believe this will be mitigated by a higher sales volume driven by the impending US tariff hike on China medical gloves effective in Jan 2025," it said in a note.
Rubber Sector Driver New Straits Times
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Can sustainable palm oil be certified at state or even national level?
03-Jan-2025 by Augustus Bambridge-Sutton
The RSPO is seeking to expand the scope of its certification with the ‘jurisdictional approach,’ scaling up palm oil certification to the level of states or even countries. Food Navigator
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My Say: RSPO’s path to transforming the sustainable palm oil market
Founded on April 8, 2004, by six visionary organisations (Aarhus United, Karlshamns, Malaysian Palm Oil Association, Migros, Unilever and WWF), the Roundtable on Sustainable Palm Oil (RSPO) has made unprecedented progress in spearheading the global production and use of sustainable palm oil that is aligned to the triple bottom-line philosophy embracing social justice, environmental protection and economic viability.
From a humble beginning with 51 members in 2004, RSPO today has more than 6,000 members representing players in the entire value chain, including civil society organisations. About 20% of the global palm oil production has been produced and certified against the RSPO standard for several years. As of July 2024, RSPO members produced 16.5 million tonnes of certified sustainable palm oil (CSPO). More than 90% of palm oil consumed in Europe is sustainable palm oil certified by the RSPO since 2020.
As the RSPO celebrates its 20th anniversary, it has recently embraced a new vision, mission and Theory of Change (ToC) to guide the organisation through the next 20 years. The new vision of “A global partnership to make palm oil sustainable” is supported by a three-prong mission focused on communication, collaboration and certification. The revised ToC builds on the expectation that three interlocking or cross-cutting themes (Standards, Certification and Assurance; Engagement and Partnerships; and Market Transformation) will enable the attainment of the new vision. This article shares some thoughts on how this can be done.
Certification — the road to market transformation? The Edge
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Govt to check CPO availability for B40 implementation
Jakarta (ANTARA) - The Trade Ministry will check the availability of crude palm oil (CPO) for the 40 percent biodiesel (B40) program, which was rolled out at the start of this year.
"We will check the supply again, (based on) which our needs will be calculated again," Trade Minister Budi Santoso informed in Jakarta on Friday.
B40 biodiesel is a mixture of 60 percent diesel fuel and 40 percent biofuel (BBN) derived from palm oil.
Santoso said that the ministry will conduct an evaluation to determine the appropriate policy for the provision of B40 raw materials and also the domestic need for cooking oil.
Meanwhile, Deputy Minister of Energy and Mineral Resources (ESDM), Yuliot Tanjung, said in Jakarta on Friday that the B40 program will become fully effective from February 2025.
The B40 policy came into effect on January 1, but there will be a transition period of about 1.5 months before the mandatory period begins, he informed.
"For the mandate, January 1. (Transition period 1.5 months) from January 1 to February," Tanjung said.
He explained that during the transition period, stocks will be used up and technology will also be adjusted.
The government is continuing to prepare for the implementation of the B40 program as part of efforts to achieve energy security, while supporting a green and sustainable Indonesia. Antara News
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Apkasindo Appreciates Prabowo's Statement About Palm Oil
JAKARTA - The Indonesian Palm Oil Farmers Association (Apkasindo) appreciates President Prabowo Subianto's Speech regarding palm oil, during the National Development Planning Conference for the Implementation of the National Medium-Term Development Plan (Musrenbangnas RPJMN) 2025-2029.
According to the General Chairperson of the DPP Apkasindo Wrestling ME Manurung, President Prabowo's statement in an activity organized by the Ministry of National Development Planning/Bappenas on Monday, December 30, has long been awaited by 17 million families of oil palm farmers from Aceh to Papua.
"We are very happy to listen to President Prabowo's speech either through the VAT/Bappenas Ministry's youtube channel or from the download results," he quoted Antara as saying.
Palm Oil, he said, is a gift from God to Indonesia and Indonesia, which is very beneficial because it is on the equator so that palm oil thrives.
"Other countries really want palm oil to grow in their country with various environmental modifications, but their productivity is far below the economics. So the Anugerah was originally Indonesia's bargaining power to the world," he said.
According to him, the fact is that so far, anyone is too free to corner palm oil without any strong regulatory protection against palm oil strategic commodities.
According to Wrestling, President Prabowo's speech was a form of Indonesian Palm Oil Red, which had been neglected due to always being cornered. VOI
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Indonesian president says palm oil expansion won’t deforest because ‘oil palms have leaves’
JAKARTA — In a controversial speech, Indonesia’s new president argued oil palm plantations are like forests, calling for their expansion by stating, ‘oil palms are trees … they’ve got leaves.’”
Environmental activists and experts have criticized President Prabowo Subianto’s remarks made at a national development conference held in Jakarta on Dec. 30. They say this narrative downplays the scientific evidence about the role of oil palm plantations in driving deforestation, biodiversity loss and carbon emissions.
“Saying that palm oil is a forest crop is so bad because it seems like we don’t understand the difference between forests and plantations,” said Herry Purnomo, a senior scientist at the Center for International Forestry Research (CIFOR) and a professor at the Bogor Institute of Agriculture (IPB). “Cassava and grass also absorb carbon dioxide. All crops that have green leaves absorb carbon dioxide.”
Herry told Mongabay that Prabowo’s statements came across as an attempt to defend Indonesia’s palm oil industry, the world’s biggest, from criticisms over its environmental impacts, particularly from foreign countries like members of the European Union.
Prabowo referenced those criticisms in his speech when he called for the expansion of oil palm plantations.
“And I think in the future, we also need to plant more palm oil. We don’t need to be afraid of endangering — what’s it called — deforestation, right?” he said.
“Oil palms are trees, right? They have leaves, right?” he went on. “They produce oxygen, absorb carbon dioxide. So why are we being accused [of deforestation]? Those things they said [about deforestation] don’t make any sense.” Mongabay
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Prabowo’s call to expand oil palm plantations in Indonesia is ‘dangerous’: Green groups
JAKARTA – A call by the Indonesian President to expand oil palm plantations has drawn backlash from environmental and farmers’ groups, which warn that his comments may set back efforts to curb deforestation in the country.
In a development planning meeting on Dec 30, Mr Prabowo Subianto described palm oil as a national asset that has become a “strategic material” eyed by many foreign countries. He urged Indonesia’s local and law enforcement officials to protect these plantations.
“I think we must expand oil palm cultivation. There’s no need to fear deforestation,” he said. “Oil palm is a tree with leaves. It absorbs carbon dioxide.”
Green groups have criticised Mr Prabowo’s statement as “dangerous”, adding that it could be taken by government officials as a directive to enlarge oil palm plantations.
“The statement conveyed by Mr Prabowo as the president was dangerous because it would be interpreted by government officials as an instruction to continue land expansion (for plantations) and the clearing of natural forests, which would be devastating,” Mr Andi Muttaqien, executive director of green group Satya Bumi, told The Straits Times.
“As deforestation was not seen as a problem, this will legitimise expansion. This is dangerous.” Straits Times
Palm oil, natural rubber to remain key export, revenue drivers
KUALA LUMPUR: The agricultural commodities, a key sector for the Malaysian economy, has seen robust growth in 2024 and is poised for further growth especially for palm oil this year, industry officials and observers said.
The sector - comprising six commodities namely palm oil, rubber, timber, cocoa, pepper and kenaf - has significantly bolstered the nation's economy, they added.
Sector's Contribution
According to the Ministry of Plantation and Commodities data, the sector contributed RM64.6 billion to Malaysia's gross domestic product (GDP) from January to September 2024, representing 5.3 per cent of the GDP.
The sector also played a critical role in international trade, contributing RM152.1 billion to exports, which accounted for 12.2 per cent of the country's total exports. This marked a notable 15.3 per cent increase from the same period in 2023.
On the import side, the sector's value stood at RM54.8 billion from January to October 2024, leading to a total trade value of RM206.8 billion and a trade balance of RM97.3 billion.
Palm Oil: Sustaining Eonomic Momentum
Palm oil continued to be Malaysia's most significant agricultural commodity in 2024, accounting for a substantial share of the sector's GDP and export contributions.
According to the data from Malaysian Palm Oil Board (MPOB), crude palm oil (CPO) production rose five per cent to 17.85 million tonnes from 17.00 million tonnes in 2023.
The board said exports of palm oil and other palm-based products grew by 10.2 per cent, amounting to 24.57 million tonnes compared to 22.28 million tonnes in 2023, with the total export value increasing significantly by 14.3 per cent to RM99.29 billion, driven by high palm oil prices.
India, China, Kenya, the European Union and Turkey remained the key export markets.
Palm oil stocks in November 2024 decreased to 1.84 million tonnes from 2.40 million tonnes in November 2023, supported by reduced imports and increased exports.
The average CPO price from January to November 2024 was RM4,120 per tonne, a 7.8 per cent rise compared to RM3,821 per tonne in the same period in 2023.
MPOB director-general Datuk Ahmad Parveez Ghulam Kadir said the Malaysian palm oil industry performed better in 2024 compared to 2023, with notable improvements in production, exports and prices.
For the full year of 2024, Ahmad Parveez said CPO production is expected to recover to at least 19.00 million tonnes (as projected by MPOB), supported by improved labour conditions and expanded productive areas, particularly in Peninsular Malaysia and Sarawak.
"Palm oil exports are expected to grow to 15.60 million tonnes, driven by stable demand from major markets like China and the EU.
"Additionally, Indonesia's higher usage of palm oil for biodiesel is anticipated to keep stocks below 2.00 million tonnes, with CPO prices forecasted to remain strong, trading between RM3,900 and RM4,200 per tonne," he told Business Times.
Palm Oil Industry To Stage Stronger Performance
For 2025, Ahmad Parveez said the industry is poised for further growth. Continued labour improvements and strong export demand are expected to contribute to a more positive outlook.
"The specific details and projections for 2025 will be unveiled at the Palm Oil Economic Review and Outlook (R&O) Seminar 2025 on Jan 14. This seminar will provide comprehensive insights into the industry's performance, current trends, and future prospects," he said.
Fitch Ratings raised its 2025 and beyond assumptions for Malaysian CPO prices due to a slower rebound in Indonesia's yields and rising biodiesel consumption there.
The firm raised its price assumptions to US$800 (RM3,578) per tonne for 2025 and US$700 per tonne thereafter.
"We had earlier assumed an average price of US$750 per tonne in 2025 and US$650 per tonne thereafter. Our revised assumptions reflect a slower rebound in yields in Indonesia, the world's largest palm oil producer, and increasing biodiesel consumption in the country," it said.
Despite the hike, Fitch said its assumption implies that prices will weaken from 2024, due to better supply of palm oil and competition with soybean oil.
Fitch expects a rebound in CPO output in 2025, helped by a weak La Nina.
Malaysia Continues To Lead Rubber Industry
According to the data by Malaysian Rubber Board (MRB), the rubber industry contributed RM27.56 billion from January until October last year, an increase of 20.8 per cent year-on-year. This represents 2.2 per cent of the total national exports which valued at RM1,242.88 billion.
Malaysia is maintaining itself as a global leader in the rubber glove sector with 420,000 hectares of untapped rubber fields ready to be processed.
The Department of Statistics Malaysia (DOSM) said exports of Malaysia's natural rubber grew 20.6 per cent month on month to 48,151 tonnes in October.
The export performance was contributed by natural rubber-based products including gloves, tires, tube and rubber thread.
Gloves were the main exports of rubber-based products with its value jumping 21.8 per cent month on month to RM1.5 billion (US$340 million) in October.
Despite the robust sector performances, Public Investment Bank Bhd remains cautious about the average selling price trends for rubber gloves moving forward.
The firm said the anticipated decline in raw material prices in the first half of 2025 could prompt Top Glove Corp Bhd to maintain flat or marginally lower pricing to prioritise market share.
"Nevertheless, we believe this will be mitigated by a higher sales volume driven by the impending US tariff hike on China medical gloves effective in Jan 2025," it said in a note.
Rubber Sector Driver New Straits Times
--------
Can sustainable palm oil be certified at state or even national level?
03-Jan-2025 by Augustus Bambridge-Sutton
The RSPO is seeking to expand the scope of its certification with the ‘jurisdictional approach,’ scaling up palm oil certification to the level of states or even countries. Food Navigator
--------
My Say: RSPO’s path to transforming the sustainable palm oil market
Founded on April 8, 2004, by six visionary organisations (Aarhus United, Karlshamns, Malaysian Palm Oil Association, Migros, Unilever and WWF), the Roundtable on Sustainable Palm Oil (RSPO) has made unprecedented progress in spearheading the global production and use of sustainable palm oil that is aligned to the triple bottom-line philosophy embracing social justice, environmental protection and economic viability.
From a humble beginning with 51 members in 2004, RSPO today has more than 6,000 members representing players in the entire value chain, including civil society organisations. About 20% of the global palm oil production has been produced and certified against the RSPO standard for several years. As of July 2024, RSPO members produced 16.5 million tonnes of certified sustainable palm oil (CSPO). More than 90% of palm oil consumed in Europe is sustainable palm oil certified by the RSPO since 2020.
As the RSPO celebrates its 20th anniversary, it has recently embraced a new vision, mission and Theory of Change (ToC) to guide the organisation through the next 20 years. The new vision of “A global partnership to make palm oil sustainable” is supported by a three-prong mission focused on communication, collaboration and certification. The revised ToC builds on the expectation that three interlocking or cross-cutting themes (Standards, Certification and Assurance; Engagement and Partnerships; and Market Transformation) will enable the attainment of the new vision. This article shares some thoughts on how this can be done.
Certification — the road to market transformation? The Edge
--------
Govt to check CPO availability for B40 implementation
Jakarta (ANTARA) - The Trade Ministry will check the availability of crude palm oil (CPO) for the 40 percent biodiesel (B40) program, which was rolled out at the start of this year.
"We will check the supply again, (based on) which our needs will be calculated again," Trade Minister Budi Santoso informed in Jakarta on Friday.
B40 biodiesel is a mixture of 60 percent diesel fuel and 40 percent biofuel (BBN) derived from palm oil.
Santoso said that the ministry will conduct an evaluation to determine the appropriate policy for the provision of B40 raw materials and also the domestic need for cooking oil.
Meanwhile, Deputy Minister of Energy and Mineral Resources (ESDM), Yuliot Tanjung, said in Jakarta on Friday that the B40 program will become fully effective from February 2025.
The B40 policy came into effect on January 1, but there will be a transition period of about 1.5 months before the mandatory period begins, he informed.
"For the mandate, January 1. (Transition period 1.5 months) from January 1 to February," Tanjung said.
He explained that during the transition period, stocks will be used up and technology will also be adjusted.
The government is continuing to prepare for the implementation of the B40 program as part of efforts to achieve energy security, while supporting a green and sustainable Indonesia. Antara News
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Apkasindo Appreciates Prabowo's Statement About Palm Oil
JAKARTA - The Indonesian Palm Oil Farmers Association (Apkasindo) appreciates President Prabowo Subianto's Speech regarding palm oil, during the National Development Planning Conference for the Implementation of the National Medium-Term Development Plan (Musrenbangnas RPJMN) 2025-2029.
According to the General Chairperson of the DPP Apkasindo Wrestling ME Manurung, President Prabowo's statement in an activity organized by the Ministry of National Development Planning/Bappenas on Monday, December 30, has long been awaited by 17 million families of oil palm farmers from Aceh to Papua.
"We are very happy to listen to President Prabowo's speech either through the VAT/Bappenas Ministry's youtube channel or from the download results," he quoted Antara as saying.
Palm Oil, he said, is a gift from God to Indonesia and Indonesia, which is very beneficial because it is on the equator so that palm oil thrives.
"Other countries really want palm oil to grow in their country with various environmental modifications, but their productivity is far below the economics. So the Anugerah was originally Indonesia's bargaining power to the world," he said.
According to him, the fact is that so far, anyone is too free to corner palm oil without any strong regulatory protection against palm oil strategic commodities.
According to Wrestling, President Prabowo's speech was a form of Indonesian Palm Oil Red, which had been neglected due to always being cornered. VOI
--------
Indonesian president says palm oil expansion won’t deforest because ‘oil palms have leaves’
JAKARTA — In a controversial speech, Indonesia’s new president argued oil palm plantations are like forests, calling for their expansion by stating, ‘oil palms are trees … they’ve got leaves.’”
Environmental activists and experts have criticized President Prabowo Subianto’s remarks made at a national development conference held in Jakarta on Dec. 30. They say this narrative downplays the scientific evidence about the role of oil palm plantations in driving deforestation, biodiversity loss and carbon emissions.
“Saying that palm oil is a forest crop is so bad because it seems like we don’t understand the difference between forests and plantations,” said Herry Purnomo, a senior scientist at the Center for International Forestry Research (CIFOR) and a professor at the Bogor Institute of Agriculture (IPB). “Cassava and grass also absorb carbon dioxide. All crops that have green leaves absorb carbon dioxide.”
Herry told Mongabay that Prabowo’s statements came across as an attempt to defend Indonesia’s palm oil industry, the world’s biggest, from criticisms over its environmental impacts, particularly from foreign countries like members of the European Union.
Prabowo referenced those criticisms in his speech when he called for the expansion of oil palm plantations.
“And I think in the future, we also need to plant more palm oil. We don’t need to be afraid of endangering — what’s it called — deforestation, right?” he said.
“Oil palms are trees, right? They have leaves, right?” he went on. “They produce oxygen, absorb carbon dioxide. So why are we being accused [of deforestation]? Those things they said [about deforestation] don’t make any sense.” Mongabay
--------
Prabowo’s call to expand oil palm plantations in Indonesia is ‘dangerous’: Green groups
JAKARTA – A call by the Indonesian President to expand oil palm plantations has drawn backlash from environmental and farmers’ groups, which warn that his comments may set back efforts to curb deforestation in the country.
In a development planning meeting on Dec 30, Mr Prabowo Subianto described palm oil as a national asset that has become a “strategic material” eyed by many foreign countries. He urged Indonesia’s local and law enforcement officials to protect these plantations.
“I think we must expand oil palm cultivation. There’s no need to fear deforestation,” he said. “Oil palm is a tree with leaves. It absorbs carbon dioxide.”
Green groups have criticised Mr Prabowo’s statement as “dangerous”, adding that it could be taken by government officials as a directive to enlarge oil palm plantations.
“The statement conveyed by Mr Prabowo as the president was dangerous because it would be interpreted by government officials as an instruction to continue land expansion (for plantations) and the clearing of natural forests, which would be devastating,” Mr Andi Muttaqien, executive director of green group Satya Bumi, told The Straits Times.
“As deforestation was not seen as a problem, this will legitimise expansion. This is dangerous.” Straits Times
January 03, 2025
Europe needs to tackle its red tape problem
Complex, overlapping rules and burdensome reporting requirements are strangling EU growth
Europe has a competitiveness problem — and part of it is down to red tape. Tackling this should be a top priority for the new European Commission and for policymakers in EU capitals in 2025. Mario Draghi identified excessive regulation as one of the factors holding Europe back in a landmark report in September. Innovative companies that want to scale up in Europe are “hindered at every stage by inconsistent and restrictive regulations”, he noted. Draghi declared that EU tech laws were “killing our companies”.
This is a pressing challenge for Europe in its own right. But it could be made much more acute with Donald Trump’s return to the White House. The US president-elect has promised a war on rules and regulations affecting business and on the federal agencies that enforce them. Elon Musk will lead the effort to “dismantle” government bureaucracy in what Trump has described as “the Manhattan Project of our time”, evoking the 1940s programme to develop an atomic bomb. Hyperbole aside, radical deregulation in the US risks sucking business investment away from Europe much as subsidies did under Joe Biden’s Inflation Reduction Act.
It is not in Europe’s interest to engage in a race to the bottom with the Trump administration. But EU policymakers have sometimes given the impression they are racing to the top — to be the world champions of rulemaking — regardless of the impact on European business, investment and productivity.
During commission president Ursula von der Leyen’s first term, the EU took pride in taming Big Tech with its twin digital services and digital markets acts. But as Draghi’s report pointed out, there are now 100 tech-related laws across the EU’s 27 member states enforced by 270 regulators. The EU’s AI Act, while reflecting legitimate governance concerns, risks creating a bureaucratic monster with a patchwork of different national standards.
One of the biggest problems is the sheer complexity of the rules and regulations that have accumulated over decades, and their inconsistencies, contradictions and duplications. A sector-by-sector analysis by Brussels could help to iron these out. More stringent competitiveness tests and common impact assessments for new laws should also be introduced. The cumulative impact of multiple rules should be evaluated. FT
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Indonesia signs 15.6 mln kilolitres biodiesel allocation for 2025
By Bernadette Christina and Fransiska Nangoy
Indonesia, the world's largest exporter of palm oil, had planned to launch the mandatory requirement of 40% palm oil fuel in biodiesel on Jan. 1, up from 35% now.
"The ministerial regulation has been signed," the minister Bahlil Lahadalia told reporters, adding the government was working to increase the mandatory biodiesel mix to 50% next year.
Eniya Listiani Dewi, a ministry senior official, said biodiesel producers and fuel retailers will be given until Feb. 28 to adapt to the B40 mix. She said the delay was because of technical challenges linked to subsidies for the fuel.
The non-implementation on Jan. 1. had led to a 2.6% drop in the Malaysian palm oil benchmark contract on Thursday. On Friday, it recovered by around 1%.
Fuel retailers and biodiesel producers had said they were unable to draw up contracts for biodiesel distribution without the decree.
The biodiesel allocation for 2025 indicated an increase from 2024's estimated biodiesel consumption of 12.98 KL, ministry data showed on Friday. Reuters
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MSPO 2.0 Reinforces Malaysia's Leadership In Sustainable Palm Oil Production -- MPOC
KUALA LUMPUR: The implementation of Malaysian Sustainable Palm Oil (MSPO) Standard MS2530:2022 (MSPO 2.0) reinforces Malaysia’s leadership in sustainable palm oil production and strengthens its position in the global markets, said the Malaysian Palm Oil Council (MPOC).
KUALA LUMPUR, Jan 3 (Bernama) -- The implementation of Malaysian Sustainable Palm Oil (MSPO) Standard MS2530:2022 (MSPO 2.0) reinforces Malaysia’s leadership in sustainable palm oil production and strengthens its position in the global markets, said the Malaysian Palm Oil Council (MPOC).
The MSPO 2.0 officially comes into effect on Jan 1, 2025, and introduces stricter guidelines for sustainability, traceability, and ethical practices in palm oil production.
MPOC chief executive officer Belvinder Kaur Sron said implementing the enhanced MSPO 2.0 would enable the council to more effectively promote the sustainability and quality of Malaysian palm oil, bolstering its reputation internationally.
“MSPO 2.0 introduces stricter measures to prevent deforestation, safeguard high conservation value areas, and address key environmental concerns. By incorporating smallholders into sustainable supply chains and improving traceability, the standard creates a more inclusive and resilient framework,” she told Bernama today.
Belvinder noted that these improvements not only enhance sustainability but also market access, as stakeholders increasingly demand products that meet rigorous environmental and social standards.
“MSPO 2.0 aligns seamlessly with international sustainability benchmarks, including the EU Deforestation Regulation (EUDR) and the United Nations Sustainable Development Goals (UNSDGs).
“Its enhanced traceability mechanisms and environmental, social and governance (ESG)-focused principles ensure that Malaysian palm oil meets the expectations of environmentally conscious consumers and regulators worldwide,” she said.
Belvinder said this would not only preserve existing market access but also strengthen Malaysia’s ability to expand into new markets, showcasing its commitment to sustainability and quality.
“By ensuring compliance with global standards and addressing consumer concerns around sustainability, MSP0 2.0 strengthens Malaysia’s market position and facilitates access to premium markets such as the European Union (EU) and North America,” she added. Bernama
--------
Enhanced standards for Malaysian palm oil certification will have minimal costs
Petaling jaya: The second cycle of the Malaysian Sustainable Palm Oil (MSPO 2.0) certification, which came into effect on Jan 1, will inevitably translate to higher cost for oil palm planters but it will be minimal.
The MSPO 2.0 improves upon the original MSPO 2013 standard by adopting stricter and more comprehensive requirements, aligning with current global standards and expectations for environmental, social and governance (ESG) practices.
Director-general of the Malaysian Palm Oil Board (MPOB) Datuk Ahmad Parveez Ghulam Kadir acknowledged that the palm oil supply chain will be under more stringent measures that will help prepare the industry to be more ESG-compliant.
“This would entail higher costs, especially in the area of audit. Most of the industry is already ready and certified, now it is just a matter of going through another round to look at other aspects. I don’t think there will be much of an issue for the companies to comply with the MSPO 2.0,” Ahmad Parveez told StarBiz.
The new regulations are being increasingly viewed as necessary, given the continued green agenda and ESG goals that have now become more prevalent on the international trade scene.
It also helps to keep the country’s palm oil industry competitive even as the European Union Deforestation Regulation (EUDR), which is now delayed, kicks in by Dec 30 for large companies and June 30, 2026 for micro and small enterprises.
But industry insiders also expressed reservations since there is a limit as to how many of these ESG rules can the agriculture industry adopt before it becomes uncompetitive or unappealing as a business venture. The StarMY
--------
Palm Oil Farmers Union Assesses Prabowo's Statement as Threatening ISPO System
The Palm Oil Farmers Union believes that Prabowo's statement is tantamount to wanting to disband ISPO.
TEMPO.CO , Jakarta - The National Council of Palm Oil Farmers Union(SPKS) Mansuetus Darto criticized President Prabowo Subianto's statement that he wanted to increase palm oil planting. In his statement, Prabowo denied the view that palm oil plantations cause deforestation because the plant also absorbs carbon dioxide.
"The statement has degraded the government's own initiative to make national palm oil more competitive through a sustainable palm oil approach with ISPO (Indonesian Sustainable Palm Oil), which also regulates anti-deforestation standards," he said in a written statement, Tuesday, December 31, 2024.
He considered Prabowo's statement to be the same as wanting to dissolve ISPO. The National Palm Oil Action Plan and the National Dashboard created by the government to improve palm oil governance also want to be dissolved.
Based on the Regulation of the Minister of Agriculture Number 38 of 2020 concerning the Implementation of Sustainable Indonesian Palm Oil Plantation Certification, ISPO is a palm oil plantation business system that is economically feasible, socio-culturally feasible, and environmentally friendly based on the provisions of laws and regulations. The rules therein require that ISPO certification be carried out by paying attention to good plantation management to the point of paying attention to the environment.
Darto said Prabowo should focus on increasing palm oil productivity through accelerating rejuvenation which was a little slow in the era of President Joko Widodo. "If this is done, it will contribute to increasing the productivity of 20 percent of national palm oil by 2029 without having to do any more deforestation," he said. Tempo
Europe needs to tackle its red tape problem
Complex, overlapping rules and burdensome reporting requirements are strangling EU growth
Europe has a competitiveness problem — and part of it is down to red tape. Tackling this should be a top priority for the new European Commission and for policymakers in EU capitals in 2025. Mario Draghi identified excessive regulation as one of the factors holding Europe back in a landmark report in September. Innovative companies that want to scale up in Europe are “hindered at every stage by inconsistent and restrictive regulations”, he noted. Draghi declared that EU tech laws were “killing our companies”.
This is a pressing challenge for Europe in its own right. But it could be made much more acute with Donald Trump’s return to the White House. The US president-elect has promised a war on rules and regulations affecting business and on the federal agencies that enforce them. Elon Musk will lead the effort to “dismantle” government bureaucracy in what Trump has described as “the Manhattan Project of our time”, evoking the 1940s programme to develop an atomic bomb. Hyperbole aside, radical deregulation in the US risks sucking business investment away from Europe much as subsidies did under Joe Biden’s Inflation Reduction Act.
It is not in Europe’s interest to engage in a race to the bottom with the Trump administration. But EU policymakers have sometimes given the impression they are racing to the top — to be the world champions of rulemaking — regardless of the impact on European business, investment and productivity.
During commission president Ursula von der Leyen’s first term, the EU took pride in taming Big Tech with its twin digital services and digital markets acts. But as Draghi’s report pointed out, there are now 100 tech-related laws across the EU’s 27 member states enforced by 270 regulators. The EU’s AI Act, while reflecting legitimate governance concerns, risks creating a bureaucratic monster with a patchwork of different national standards.
One of the biggest problems is the sheer complexity of the rules and regulations that have accumulated over decades, and their inconsistencies, contradictions and duplications. A sector-by-sector analysis by Brussels could help to iron these out. More stringent competitiveness tests and common impact assessments for new laws should also be introduced. The cumulative impact of multiple rules should be evaluated. FT
--------
Indonesia signs 15.6 mln kilolitres biodiesel allocation for 2025
By Bernadette Christina and Fransiska Nangoy
- Biodiesel allocation decree was awaited by industry
- Indonesia had planned to launch higher biodiesel mix on Jan. 1
- Palm oil benchmark contract rose 1% after previous fall
- Government aims for 50% biodiesel mix in 2026
Indonesia, the world's largest exporter of palm oil, had planned to launch the mandatory requirement of 40% palm oil fuel in biodiesel on Jan. 1, up from 35% now.
"The ministerial regulation has been signed," the minister Bahlil Lahadalia told reporters, adding the government was working to increase the mandatory biodiesel mix to 50% next year.
Eniya Listiani Dewi, a ministry senior official, said biodiesel producers and fuel retailers will be given until Feb. 28 to adapt to the B40 mix. She said the delay was because of technical challenges linked to subsidies for the fuel.
The non-implementation on Jan. 1. had led to a 2.6% drop in the Malaysian palm oil benchmark contract on Thursday. On Friday, it recovered by around 1%.
Fuel retailers and biodiesel producers had said they were unable to draw up contracts for biodiesel distribution without the decree.
The biodiesel allocation for 2025 indicated an increase from 2024's estimated biodiesel consumption of 12.98 KL, ministry data showed on Friday. Reuters
--------
MSPO 2.0 Reinforces Malaysia's Leadership In Sustainable Palm Oil Production -- MPOC
KUALA LUMPUR: The implementation of Malaysian Sustainable Palm Oil (MSPO) Standard MS2530:2022 (MSPO 2.0) reinforces Malaysia’s leadership in sustainable palm oil production and strengthens its position in the global markets, said the Malaysian Palm Oil Council (MPOC).
KUALA LUMPUR, Jan 3 (Bernama) -- The implementation of Malaysian Sustainable Palm Oil (MSPO) Standard MS2530:2022 (MSPO 2.0) reinforces Malaysia’s leadership in sustainable palm oil production and strengthens its position in the global markets, said the Malaysian Palm Oil Council (MPOC).
The MSPO 2.0 officially comes into effect on Jan 1, 2025, and introduces stricter guidelines for sustainability, traceability, and ethical practices in palm oil production.
MPOC chief executive officer Belvinder Kaur Sron said implementing the enhanced MSPO 2.0 would enable the council to more effectively promote the sustainability and quality of Malaysian palm oil, bolstering its reputation internationally.
“MSPO 2.0 introduces stricter measures to prevent deforestation, safeguard high conservation value areas, and address key environmental concerns. By incorporating smallholders into sustainable supply chains and improving traceability, the standard creates a more inclusive and resilient framework,” she told Bernama today.
Belvinder noted that these improvements not only enhance sustainability but also market access, as stakeholders increasingly demand products that meet rigorous environmental and social standards.
“MSPO 2.0 aligns seamlessly with international sustainability benchmarks, including the EU Deforestation Regulation (EUDR) and the United Nations Sustainable Development Goals (UNSDGs).
“Its enhanced traceability mechanisms and environmental, social and governance (ESG)-focused principles ensure that Malaysian palm oil meets the expectations of environmentally conscious consumers and regulators worldwide,” she said.
Belvinder said this would not only preserve existing market access but also strengthen Malaysia’s ability to expand into new markets, showcasing its commitment to sustainability and quality.
“By ensuring compliance with global standards and addressing consumer concerns around sustainability, MSP0 2.0 strengthens Malaysia’s market position and facilitates access to premium markets such as the European Union (EU) and North America,” she added. Bernama
--------
Enhanced standards for Malaysian palm oil certification will have minimal costs
Petaling jaya: The second cycle of the Malaysian Sustainable Palm Oil (MSPO 2.0) certification, which came into effect on Jan 1, will inevitably translate to higher cost for oil palm planters but it will be minimal.
The MSPO 2.0 improves upon the original MSPO 2013 standard by adopting stricter and more comprehensive requirements, aligning with current global standards and expectations for environmental, social and governance (ESG) practices.
Director-general of the Malaysian Palm Oil Board (MPOB) Datuk Ahmad Parveez Ghulam Kadir acknowledged that the palm oil supply chain will be under more stringent measures that will help prepare the industry to be more ESG-compliant.
“This would entail higher costs, especially in the area of audit. Most of the industry is already ready and certified, now it is just a matter of going through another round to look at other aspects. I don’t think there will be much of an issue for the companies to comply with the MSPO 2.0,” Ahmad Parveez told StarBiz.
The new regulations are being increasingly viewed as necessary, given the continued green agenda and ESG goals that have now become more prevalent on the international trade scene.
It also helps to keep the country’s palm oil industry competitive even as the European Union Deforestation Regulation (EUDR), which is now delayed, kicks in by Dec 30 for large companies and June 30, 2026 for micro and small enterprises.
But industry insiders also expressed reservations since there is a limit as to how many of these ESG rules can the agriculture industry adopt before it becomes uncompetitive or unappealing as a business venture. The StarMY
--------
Palm Oil Farmers Union Assesses Prabowo's Statement as Threatening ISPO System
The Palm Oil Farmers Union believes that Prabowo's statement is tantamount to wanting to disband ISPO.
TEMPO.CO , Jakarta - The National Council of Palm Oil Farmers Union(SPKS) Mansuetus Darto criticized President Prabowo Subianto's statement that he wanted to increase palm oil planting. In his statement, Prabowo denied the view that palm oil plantations cause deforestation because the plant also absorbs carbon dioxide.
"The statement has degraded the government's own initiative to make national palm oil more competitive through a sustainable palm oil approach with ISPO (Indonesian Sustainable Palm Oil), which also regulates anti-deforestation standards," he said in a written statement, Tuesday, December 31, 2024.
He considered Prabowo's statement to be the same as wanting to dissolve ISPO. The National Palm Oil Action Plan and the National Dashboard created by the government to improve palm oil governance also want to be dissolved.
Based on the Regulation of the Minister of Agriculture Number 38 of 2020 concerning the Implementation of Sustainable Indonesian Palm Oil Plantation Certification, ISPO is a palm oil plantation business system that is economically feasible, socio-culturally feasible, and environmentally friendly based on the provisions of laws and regulations. The rules therein require that ISPO certification be carried out by paying attention to good plantation management to the point of paying attention to the environment.
Darto said Prabowo should focus on increasing palm oil productivity through accelerating rejuvenation which was a little slow in the era of President Joko Widodo. "If this is done, it will contribute to increasing the productivity of 20 percent of national palm oil by 2029 without having to do any more deforestation," he said. Tempo
January 02, 2025
The EU’s impossible choice on trade and tariffs
Trump’s threat of higher duties on Chinese goods raises the stakes for a union proud of its free-trading instincts
The EU, a political project conceived to remove trade barriers, has been raising tariff walls at its fastest rate in 15 years. But just as fast as the defences are built against cheap Chinese imports, fresh storms blow the bloc off balance again.
Donald Trump’s threat to impose levies of up to 60 per cent on Chinese goods would, for instance, put an even higher tariff wall around the US than anything the EU has planned.
The effect, if the US president follows through, would be to divert Chinese goods from the US to the EU — forcing Brussels to in turn consider hitting back with even tougher defensive measures.
It is an impossible situation for a union that has taken pride in its free-trading instincts. Every barrier it erects can save some domestic jobs but will also reduce the competitiveness of other domestic industries by raising the price of imports.
With China now accounting for 30 per cent of global industrial output, the ripple effects will be considerable on EU products ranging from electric vehicles to Italian tomato paste.
Vulnerable industries, such as steel and glass fibre makers, complain the EU has not been building trade defences fast enough or high enough to save them. “We are close to a tipping point for many industries,” said Laurent Ruessmann, a partner with RB Legal and trade defence expert.
On the other hand, those who want cheap Chinese inputs to keep their own product prices down, such as paint makers, have lobbied against tariff measures. The EU has put duties on titanium dioxide, a key ingredient, leaving paint makers worried they will have to absorb the cost or lose sales.
Simon Evenett, professor of geopolitics and strategy at IMD Business School, said tariffs always ended up costing consumers or other businesses. FT
--------
Regulations: EUDR has been delayed, what now?
This article first appeared in The Edge Malaysia Weekly on December 30, 2024 - January 12, 2025
On Nov 14, the European Union (EU) reached an agreement to delay the European Union Deforestation Regulation (EUDR), and this decision has given developing countries more time to prepare for the regulation.
The regulation has been heavily criticised for the risk of excluding smallholders, especially in developing countries where smallholders are dominant producers, but some believe the EUDR is necessary to prevent further destruction of forests, which are an important carbon sink.
One of the notable gripes has been the requirement to use geolocation data to verify that sources of the seven affected commodities are not harvested through deforestation, as this — along with other compliance requirements — requires additional resources from companies.
Additionally, it was announced that the EU would be introducing a new tier of classification for its forest benchmarking system, which is the no-risk category. While many countries are striving to achieve a no-risk status, there still has not been a proper rubric for the conditions that must be met, and many other details for compliance remain up in the air. The Edge
--------
Targets: Getting smallholders on board and collecting better data
Malaysia, through the New Industrial Master Plan (NIMP) and National Energy Transition Roadmap (NETR), has put in place initiatives and targets to support the transition towards net zero by 2050.
However, policies and frameworks are not enough as it will take effective enforcement to ensure success. It is also important to ensure there is a just transition in realising the government’s green commitments so that no one is left behind.
Currently, smallholders in the palm oil industry need support for them to be more sustainable in their practices
Malaysia, through the New Industrial Master Plan (NIMP) and National Energy Transition Roadmap (NETR), has put in place initiatives and targets to support the transition towards net zero by 2050.
However, policies and frameworks are not enough as it will take effective enforcement to ensure success. It is also important to ensure there is a just transition in realising the government’s green commitments so that no one is left behind.
In the case of the palm oil industry, smallholders need a lot of support to become more sustainable. More resources are needed to ensure they are resilient while adopting more sustainable practices and adapting to climate change.
For example, SD Guthrie Bhd’s (KL:SDG) chief sustainability officer Rashyid Redza Anwarudin notes that when replanting old palms, the company needs to ensure smallholders have access to the best climate-resilient seedlings. “We also need to assist them in becoming more organised and provide them with access to climate financing, which will enable them to operate profitably while contributing to the green agenda,” he says.
“There are many threads that must come together to ensure Malaysia achieves its net zero targets. There are many commendable policies and frameworks that have been and are being developed to guide the Malaysian industry, and with the correct mindset and excellent implementation, Malaysia will succeed. The same is true for all other countries.” The Edge
--------
MSPO 2.0: Experts see stronger global position for Malaysian palm oil
01/01/2025 (New Straits Times), Kuala Lumpur - Industry bodies and analysts are hopeful that the Malaysian Sustainable Palm Oil (MSPO) Standard MS2530:2022 (MSPO 2.0), which took effect on Jan 1, 2025, will open new markets for Malaysian palm oil and strengthen its position in the global edible oil scene.
The MSPO 2.0 establishes a new benchmark to strengthen sustainability and inclusivity in ethical palm oil production.
Among others it introduces a deforestation cut-off date to ensure all new plantings adhere to updated sustainability practices, preventing deforestation and ensuring responsible land use.
Starting Jan 1, 2025, the certification will apply only to areas that have not been deforested after Dec 31, 2019.
Other revisions in MSPO 2.0 include structural reorganisation - expanded from four to eight parts to cater to diverse industry participants, including smallholders, plantations, mills, and processors.
Streamlined principles, with consolidation to five principles from seven previously, to ensure greater clarity and practical application.
An enhanced sustainability criteria, with increased focus on greenhouse gas emissions, high conservation value areas, and social impact assessments, aligning with global sustainability goals.
Enhanced labour standards, with strengthened provisions against forced labour and child labour, emphasising fair labour practices and human rights.
Finally, a focus on transparency and ethical conduct, with an emphasis on traceability, anti-bribery measures, and ethical conduct to promote accountability in the supply chain.
Malaysian Palm Oil Board (MPOB) director-general Datuk Ahmad Parveez Ghulam Kadir told Business Times that MSPO 2.0 is set to enhance the credibility of Malaysian palm oil, with coverage of the full supply chain, including dealers.
"The revised version introduces a deforestation cut-off date that is a year earlier than the European Union Deforestation Regulation (EUDR).It also includes additional measures such as the High Conservation Value (HCV) approach, a Greenhouse Gas (GHG) calculator, and improved labour practices, all of which are expected to enhance its credibility and image further," Ahmad Parveez said.
He said the inclusion of MSPO on the International Trade Centre (ITC) Standards Map represents a form of international recognition, noting that not all certifications, such as Indonesia Sustainable Palm Oil (ISPO), are included on the list.
"This shows MSPO 2.0 is much more superior. We hope this will further strengthen our market especially in markets where sustainable practices are being recognised and surely the number of countries recognising sustainable practices are on the rise," he added.
Malaysian Palm Oil Association (MPOA) chief executive officer Roslin Azmy Hassan said the success of MSPO 2.0 relies heavily on gaining acceptance from stakeholders, customers, and certification bodies globally.
"MPOA emphasises the importance of MSPO 2.0 being recognised and accepted as a reputable global standard.Its alignment with international sustainability requirements enhances the competitiveness of Malaysian palm oil in key export markets and reinforces our position as a responsible and sustainable producer," he said.
Roslin said the association welcomes the launch of MSPO 2.0, as a significant enhancement to the nation's sustainability framework.
He said the revised standard underscores Malaysia's commitment to producing sustainable and responsibly sourced palm oil, meeting the expectations of both local and international stakeholders.
Meanwhile, CIMB Investment Bank Bhd head of research and head of agribusiness Ivy Ng Lee Fang said the MSPO certifications will assure buyers that the palm oil they buy from Malaysia with MSPO certifications meets certain sustainability requirements.
She highlighted the need to constantly update the standard to align with global sustainability requirements.
The MSPO certification has been mandatory for all palm oil producers in Malaysia since 2019, ensuring compliance with rigorous sustainability and traceability standards. MPOB/ NST
--------
KPK Wants A Stop To The Import, Sale Of Products With Discriminatory Labelling Against Palm Oil
KUALA LUMPUR, Jan 02 (Bernama) -- The Ministry of Plantation and Commodities (KPK) wants to stop the import and sale of products with discriminatory labelling against palm oil (DLAPO).
The ministry said the Ministry of Domestic Trade and Cost of Living (KPDN) will no longer accept any DLAPO activity.
"Strict action in accordance with the current regulations in force will be taken against any party found guilty along the product supply chain. KPK will always provide strong support and continuous cooperation with KPDN in efforts to combat the discriminatory labelling of palm oil," the ministry said in a statement today.
According to KPK, there are still premises that sell products with DLAPO since the regulations against it under the Trade Description Act 2011 came into force on March 15, 2022.
"The two-year grace period should have been enough for the parties involved to take appropriate action such as voluntarily removing DLAPO products from the shelves. 1024 days have passed since the regulations were first introduced. Thousands of inspections have been carried out by KPDN throughout the country starting March 15, 2022 and the ministry found that there are still premises that sell products with DLAPO," it added. Bernama
--------
Indonesia's B40 palm oil delay causes market uncertainty
JAKARTA, Jan 2 (Reuters) - Indonesia has yet to implement a higher mandatory blend of biodiesel planned for Jan. 1 as industry participants await technical details of the new regulation, causing confusion among palm oil traders.
The government had pledged to mandate a 40% mix of palm oil-based fuel in biodiesel from Jan. 1, known as B40, from a 35% blend currently in force.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange closed 2.5% lower on Thursday at 4,336 ringgit ($968.72) a metric ton amid uncertainty about B40 implementation, after rising about 1.8% earlier in the day when it tracked gains in Dalian vegetable oil.
The plan for higher biodiesel blend by the world's biggest palm oil producer helped drive up Malaysia's benchmark palm oil contract nearly 20% in 2024 on expectations of lower palm oil exports from rival producer Indonesia.
As of Thursday, Indonesian state energy firm Pertamina, which operates the country's largest petrol station network, and biodiesel producers group APROBI said they were waiting for the relevant official decrees before selling the fuel. Reuters
--------
CPOPC WELCOMES PAPUA NEW GUINEA AS ITS FOURTH MEMBER COUNTRY
KUALA LUMPUR, Jan 2 (Bernama) -- The Council of Palm Oil Producing Countries (CPOPC) has welcomed Papua New Guinea as its fourth member country, according to a statement from the CPOPC.
The handover of the accession instrument in a hybrid landmark ceremony held at the secretariat of the council in Jakarta, Indonesia, marks the completion of the formal application process which was submitted on Oct 27, 2020.
Representing Papua New Guinea was the Minister Counsellor of the Papua New Guinea Embassy in Jakarta, Indonesia, Gregory Hombuahin and the general-secretary of the Oil Palm Industry Corporation of Papua New Guinea, Kepson Pupita.
CPOPC secretary-general Dr Rizal Affandi Lukman said Papua New Guinea’s wealth of experience in palm oil cultivation and its commitment to fostering economic growth will further enhance the council’s shared goals.
"Today's accession is a testament to the unifying vision of CPOPC. Together, we can amplify our collective voice on the global stage, promoting equitable and sustainable development in the palm oil sector,” he said.
Meanwhile, Hombuahin said the country is delighted to join CPOPC, as the council embodies its values of sustainability and community-centric growth.
“We are committed to working together with our fellow members to build a brighter future for the oil palm industry," he said.
The CPOPC said as a member country, Papua New Guinea has the privilege to participate in the Ministerial Meeting and the Senior Officials Meeting of CPOPC to provide policy directions and guidance as well as to endorse and approve the strategies, programmes, and action plans to advance the oil palm industry.
“Following the addition of Papua New Guinea as a member country, and Nigeria and the Democratic Republic of the Congo as observer countries, CPOPC now oversees 88.8 per cent of the global palm oil production, demonstrating its pivotal role in shaping the industry's future,” it noted.
Founded in 2015, CPOPC serves to advance the interests of nations that produce palm oil and to fortify collaboration in sustainable palm oil practices.-- BERNAMA
The EU’s impossible choice on trade and tariffs
Trump’s threat of higher duties on Chinese goods raises the stakes for a union proud of its free-trading instincts
The EU, a political project conceived to remove trade barriers, has been raising tariff walls at its fastest rate in 15 years. But just as fast as the defences are built against cheap Chinese imports, fresh storms blow the bloc off balance again.
Donald Trump’s threat to impose levies of up to 60 per cent on Chinese goods would, for instance, put an even higher tariff wall around the US than anything the EU has planned.
The effect, if the US president follows through, would be to divert Chinese goods from the US to the EU — forcing Brussels to in turn consider hitting back with even tougher defensive measures.
It is an impossible situation for a union that has taken pride in its free-trading instincts. Every barrier it erects can save some domestic jobs but will also reduce the competitiveness of other domestic industries by raising the price of imports.
With China now accounting for 30 per cent of global industrial output, the ripple effects will be considerable on EU products ranging from electric vehicles to Italian tomato paste.
Vulnerable industries, such as steel and glass fibre makers, complain the EU has not been building trade defences fast enough or high enough to save them. “We are close to a tipping point for many industries,” said Laurent Ruessmann, a partner with RB Legal and trade defence expert.
On the other hand, those who want cheap Chinese inputs to keep their own product prices down, such as paint makers, have lobbied against tariff measures. The EU has put duties on titanium dioxide, a key ingredient, leaving paint makers worried they will have to absorb the cost or lose sales.
Simon Evenett, professor of geopolitics and strategy at IMD Business School, said tariffs always ended up costing consumers or other businesses. FT
--------
Regulations: EUDR has been delayed, what now?
This article first appeared in The Edge Malaysia Weekly on December 30, 2024 - January 12, 2025
On Nov 14, the European Union (EU) reached an agreement to delay the European Union Deforestation Regulation (EUDR), and this decision has given developing countries more time to prepare for the regulation.
The regulation has been heavily criticised for the risk of excluding smallholders, especially in developing countries where smallholders are dominant producers, but some believe the EUDR is necessary to prevent further destruction of forests, which are an important carbon sink.
One of the notable gripes has been the requirement to use geolocation data to verify that sources of the seven affected commodities are not harvested through deforestation, as this — along with other compliance requirements — requires additional resources from companies.
Additionally, it was announced that the EU would be introducing a new tier of classification for its forest benchmarking system, which is the no-risk category. While many countries are striving to achieve a no-risk status, there still has not been a proper rubric for the conditions that must be met, and many other details for compliance remain up in the air. The Edge
--------
Targets: Getting smallholders on board and collecting better data
Malaysia, through the New Industrial Master Plan (NIMP) and National Energy Transition Roadmap (NETR), has put in place initiatives and targets to support the transition towards net zero by 2050.
However, policies and frameworks are not enough as it will take effective enforcement to ensure success. It is also important to ensure there is a just transition in realising the government’s green commitments so that no one is left behind.
Currently, smallholders in the palm oil industry need support for them to be more sustainable in their practices
Malaysia, through the New Industrial Master Plan (NIMP) and National Energy Transition Roadmap (NETR), has put in place initiatives and targets to support the transition towards net zero by 2050.
However, policies and frameworks are not enough as it will take effective enforcement to ensure success. It is also important to ensure there is a just transition in realising the government’s green commitments so that no one is left behind.
In the case of the palm oil industry, smallholders need a lot of support to become more sustainable. More resources are needed to ensure they are resilient while adopting more sustainable practices and adapting to climate change.
For example, SD Guthrie Bhd’s (KL:SDG) chief sustainability officer Rashyid Redza Anwarudin notes that when replanting old palms, the company needs to ensure smallholders have access to the best climate-resilient seedlings. “We also need to assist them in becoming more organised and provide them with access to climate financing, which will enable them to operate profitably while contributing to the green agenda,” he says.
“There are many threads that must come together to ensure Malaysia achieves its net zero targets. There are many commendable policies and frameworks that have been and are being developed to guide the Malaysian industry, and with the correct mindset and excellent implementation, Malaysia will succeed. The same is true for all other countries.” The Edge
--------
MSPO 2.0: Experts see stronger global position for Malaysian palm oil
01/01/2025 (New Straits Times), Kuala Lumpur - Industry bodies and analysts are hopeful that the Malaysian Sustainable Palm Oil (MSPO) Standard MS2530:2022 (MSPO 2.0), which took effect on Jan 1, 2025, will open new markets for Malaysian palm oil and strengthen its position in the global edible oil scene.
The MSPO 2.0 establishes a new benchmark to strengthen sustainability and inclusivity in ethical palm oil production.
Among others it introduces a deforestation cut-off date to ensure all new plantings adhere to updated sustainability practices, preventing deforestation and ensuring responsible land use.
Starting Jan 1, 2025, the certification will apply only to areas that have not been deforested after Dec 31, 2019.
Other revisions in MSPO 2.0 include structural reorganisation - expanded from four to eight parts to cater to diverse industry participants, including smallholders, plantations, mills, and processors.
Streamlined principles, with consolidation to five principles from seven previously, to ensure greater clarity and practical application.
An enhanced sustainability criteria, with increased focus on greenhouse gas emissions, high conservation value areas, and social impact assessments, aligning with global sustainability goals.
Enhanced labour standards, with strengthened provisions against forced labour and child labour, emphasising fair labour practices and human rights.
Finally, a focus on transparency and ethical conduct, with an emphasis on traceability, anti-bribery measures, and ethical conduct to promote accountability in the supply chain.
Malaysian Palm Oil Board (MPOB) director-general Datuk Ahmad Parveez Ghulam Kadir told Business Times that MSPO 2.0 is set to enhance the credibility of Malaysian palm oil, with coverage of the full supply chain, including dealers.
"The revised version introduces a deforestation cut-off date that is a year earlier than the European Union Deforestation Regulation (EUDR).It also includes additional measures such as the High Conservation Value (HCV) approach, a Greenhouse Gas (GHG) calculator, and improved labour practices, all of which are expected to enhance its credibility and image further," Ahmad Parveez said.
He said the inclusion of MSPO on the International Trade Centre (ITC) Standards Map represents a form of international recognition, noting that not all certifications, such as Indonesia Sustainable Palm Oil (ISPO), are included on the list.
"This shows MSPO 2.0 is much more superior. We hope this will further strengthen our market especially in markets where sustainable practices are being recognised and surely the number of countries recognising sustainable practices are on the rise," he added.
Malaysian Palm Oil Association (MPOA) chief executive officer Roslin Azmy Hassan said the success of MSPO 2.0 relies heavily on gaining acceptance from stakeholders, customers, and certification bodies globally.
"MPOA emphasises the importance of MSPO 2.0 being recognised and accepted as a reputable global standard.Its alignment with international sustainability requirements enhances the competitiveness of Malaysian palm oil in key export markets and reinforces our position as a responsible and sustainable producer," he said.
Roslin said the association welcomes the launch of MSPO 2.0, as a significant enhancement to the nation's sustainability framework.
He said the revised standard underscores Malaysia's commitment to producing sustainable and responsibly sourced palm oil, meeting the expectations of both local and international stakeholders.
Meanwhile, CIMB Investment Bank Bhd head of research and head of agribusiness Ivy Ng Lee Fang said the MSPO certifications will assure buyers that the palm oil they buy from Malaysia with MSPO certifications meets certain sustainability requirements.
She highlighted the need to constantly update the standard to align with global sustainability requirements.
The MSPO certification has been mandatory for all palm oil producers in Malaysia since 2019, ensuring compliance with rigorous sustainability and traceability standards. MPOB/ NST
--------
KPK Wants A Stop To The Import, Sale Of Products With Discriminatory Labelling Against Palm Oil
KUALA LUMPUR, Jan 02 (Bernama) -- The Ministry of Plantation and Commodities (KPK) wants to stop the import and sale of products with discriminatory labelling against palm oil (DLAPO).
The ministry said the Ministry of Domestic Trade and Cost of Living (KPDN) will no longer accept any DLAPO activity.
"Strict action in accordance with the current regulations in force will be taken against any party found guilty along the product supply chain. KPK will always provide strong support and continuous cooperation with KPDN in efforts to combat the discriminatory labelling of palm oil," the ministry said in a statement today.
According to KPK, there are still premises that sell products with DLAPO since the regulations against it under the Trade Description Act 2011 came into force on March 15, 2022.
"The two-year grace period should have been enough for the parties involved to take appropriate action such as voluntarily removing DLAPO products from the shelves. 1024 days have passed since the regulations were first introduced. Thousands of inspections have been carried out by KPDN throughout the country starting March 15, 2022 and the ministry found that there are still premises that sell products with DLAPO," it added. Bernama
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Indonesia's B40 palm oil delay causes market uncertainty
JAKARTA, Jan 2 (Reuters) - Indonesia has yet to implement a higher mandatory blend of biodiesel planned for Jan. 1 as industry participants await technical details of the new regulation, causing confusion among palm oil traders.
The government had pledged to mandate a 40% mix of palm oil-based fuel in biodiesel from Jan. 1, known as B40, from a 35% blend currently in force.
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange closed 2.5% lower on Thursday at 4,336 ringgit ($968.72) a metric ton amid uncertainty about B40 implementation, after rising about 1.8% earlier in the day when it tracked gains in Dalian vegetable oil.
The plan for higher biodiesel blend by the world's biggest palm oil producer helped drive up Malaysia's benchmark palm oil contract nearly 20% in 2024 on expectations of lower palm oil exports from rival producer Indonesia.
As of Thursday, Indonesian state energy firm Pertamina, which operates the country's largest petrol station network, and biodiesel producers group APROBI said they were waiting for the relevant official decrees before selling the fuel. Reuters
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CPOPC WELCOMES PAPUA NEW GUINEA AS ITS FOURTH MEMBER COUNTRY
KUALA LUMPUR, Jan 2 (Bernama) -- The Council of Palm Oil Producing Countries (CPOPC) has welcomed Papua New Guinea as its fourth member country, according to a statement from the CPOPC.
The handover of the accession instrument in a hybrid landmark ceremony held at the secretariat of the council in Jakarta, Indonesia, marks the completion of the formal application process which was submitted on Oct 27, 2020.
Representing Papua New Guinea was the Minister Counsellor of the Papua New Guinea Embassy in Jakarta, Indonesia, Gregory Hombuahin and the general-secretary of the Oil Palm Industry Corporation of Papua New Guinea, Kepson Pupita.
CPOPC secretary-general Dr Rizal Affandi Lukman said Papua New Guinea’s wealth of experience in palm oil cultivation and its commitment to fostering economic growth will further enhance the council’s shared goals.
"Today's accession is a testament to the unifying vision of CPOPC. Together, we can amplify our collective voice on the global stage, promoting equitable and sustainable development in the palm oil sector,” he said.
Meanwhile, Hombuahin said the country is delighted to join CPOPC, as the council embodies its values of sustainability and community-centric growth.
“We are committed to working together with our fellow members to build a brighter future for the oil palm industry," he said.
The CPOPC said as a member country, Papua New Guinea has the privilege to participate in the Ministerial Meeting and the Senior Officials Meeting of CPOPC to provide policy directions and guidance as well as to endorse and approve the strategies, programmes, and action plans to advance the oil palm industry.
“Following the addition of Papua New Guinea as a member country, and Nigeria and the Democratic Republic of the Congo as observer countries, CPOPC now oversees 88.8 per cent of the global palm oil production, demonstrating its pivotal role in shaping the industry's future,” it noted.
Founded in 2015, CPOPC serves to advance the interests of nations that produce palm oil and to fortify collaboration in sustainable palm oil practices.-- BERNAMA
January 01, 2025
Malaysia implements MSPO 2.0 to boost sustainable palm oil standards
KUALA LUMPUR (Jan 1): The Malaysian Sustainable Palm Oil Standard MS2530:2022 (MSPO 2.0) officially comes into effect on Wednesday, introducing stricter guidelines for sustainability, traceability, and ethical practices in palm oil production.
In a statement on Wednesday, the MSPO said that MSPO 2.0 improves upon the original MSPO 2013 standard by adopting stricter and more comprehensive requirements, aligning with current global standards and expectations for environmental sustainability, social responsibility, and governance practices (ESG).
"Since its introduction in 2013, the mandatory MSPO certification has been a cornerstone of Malaysia's commitment to sustainability and transparency.
"MSPO certification audits are carried out by independent, third-party accredited certification bodies, ensuring the highest standards of integrity and credibility," the MSPO said.
It added that MSPO 2.0 builds on this foundation with enhanced sustainability measures to maintain Malaysia's leadership in responsibly managed palm oil.
"Comprehensive traceability mechanisms ensure supply chain transparency, while the inclusion of mandatory dealer certification extends sustainability requirements across all levels of the supply chain," said the MSPO.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said that MSPO 2.0 represents the next step in ensuring that Malaysian palm oil remains synonymous with sustainability and reliability in global markets.
"Through this enhanced standard, we are safeguarding the future of our palm oil industry while continuing to lead by example on the global stage," he added. The Edge/ Bernama
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Prabowo's Statement on Palm Oil May Threaten the Environment, Satya Bumi Says
TEMPO.CO, Jakarta - Environmental campaign organization Satya Bumi criticized President Prabowo Subianto's statement that the expansion of palm oil plantations would have no impact on deforestation. Satya Bumi executive director Andi Muttaqien said that as head of state, Prabowo's statement would be interpreted as a directive to continue expanding land and opening up natural forests, which would damage the environment.
"Our research found that the environmental capacity of the upper cap of oil palm in Indonesia is only 18.15 million hectares. This finding is important considering that the palm oil industry in Indonesia has been over-expanding in the past two decades," Muttaqien said via written message on Tuesday, December 31, 2024.
According to Muttaqien, the results of economic and environmental calculations show the potential for large long-term losses if the palm oil industry's growth is unchecked. Moreover, based on Mapbiomas data from 2018 to 2021, deforestation related to oil palm plantations actually decreased, although it increased in 2022. "But what the government needs to do is intensify, not add more land or cut down natural forests," he said.
Muttaqien said Prabowo's statement contradicted various climate commitments, as well as deforestation control measures that Indonesia has taken. "As a head of state, he actually does not have a proper understanding of deforestation." Tempo
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CPO Futures Close Lower Over Indonesia's Biofuel Programme Implementation
KUALA LUMPUR, Dec 31 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed lower on the last trading day of 2024, due to the upcoming implementation of Indonesia’s biofuel programme in January, following the recent rally in CPO prices, a dealer said.
Indonesia's biofuel programme is a nationwide mandate to blend palm oil-based biodiesel with diesel fuel, aimed at reducing fuel imports, increasing domestic demand for palm oil, and cutting emissions.
Palm oil dealer David Ng noted that the slower pace of Indonesia's biofuel programme could hurt demand for CPO, which, in turn, would exert pressure on its prices.
“Lower export estimates are also seen weighing on CPO prices.
“We see support at RM4,400 and resistance at RM4,600 per tonne,” he told Bernama.
According to reports, Indonesia’s plan to expand its biodiesel mandate looks likely to be implemented gradually.
At the close, the January 2025 contract dropped by RM64 to RM4,861 per tonne, February 2025 lost RM97 to RM4,617 per tonne, and March 2025 fell by RM103 to RM4,448 per tonne.
April 2025 was down RM87 to RM4,305 per tonne, May 2025 slipped by RM65 to RM4,205 per tonne and June 2025 shed RM52 to RM4,140 per tonne.
Trading volume rose to 72,477 lots from 45,092 lots on Monday, while open interest eased to 239,495 contracts from 239,837 contracts yesterday.
The physical CPO price for January South fell RM80 to RM4,950 per tonne. Bernama
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Indonesia’s Prabowo wants protection from foreign interest in palm oil sector
Foreign countries are eyeing Indonesian palm oil as the ‘strategic material’ is crucial to their industries, President Prabowo Subianto says
President Prabowo Subianto has called for tighter security to protect Indonesia’s palm oil plantations, saying the commodity is being targeted by foreign countries.
“They really need our palm oil, as it turns out, palm oil is a strategic material,” said Prabowo, who was speaking on Monday at a meeting for national development planning in Jakarta.
“Many countries are afraid of not getting palm oil,” he added, according to a report by the Tempo news website.
Prabowo asked the Indonesian military and police to help regional authorities in protecting palm oil plantations. SCMP
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Viewpoint: Crop-based feedstocks face an uphill battle
US biofuel producers' demand for soybean and canola oil has waned recently, a trend that looks unlikely to reverse in the near term because of domestic policy changes that prioritize lower carbon intensity feedstocks.
Expectations that a US renewable diesel boom would drive up demand for vegetable oil led agribusinesses to announce new soybean crush plants and expansions in 2022. Seven new soybean crush plants have come online since then, increasing US nameplate capacity by 10pc to 2.91bn bushels/yr, but new policies have diverged from crop-based feedstocks because of their higher carbon intensity.
The California Air Resources Board (CARB) voted to adopt new low-carbon fuel standard (LCFS) targets on 6 November. CARB hiked the carbon-intensity reduction target of California's transportation fuels from 20pc to 30pc by 2030, in hopes of balancing the pool of oversupplied LCFS credits, which alone reduced incentives for crop-based fuels.
But more critically, the new rules will impose tighter restrictions for crop-based feedstocks, capping a company's LCFS credit generation from vegetable oil-based biofuel at 20pc/yr, starting in 2028 for existing plants. Apart from that, CARB will require producers to track the point of origin of crop-based feedstocks, adding to costs. Soybean oil-based biofuel already fetches a lower LCFS credit value in California, and the additional traceability requirement could further deter biofuel producers. Argus Media
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A palm oil company, a group of U.S. venture capitalists, and the destruction of Peru’s rainforest
Ocho Sur marketed palm oil to PepsiCo and Colgate-Palmolive as “deforestation-free.” Exclusive documents tell a more complicated story.
Two of the largest palm oil plantations in Peru are located on the west side of the Ucayali River, which flows from the Andes to the Amazon. From above, the surrounding landscape looks like stirred paint: a swirl of green amid inky lakes and brown rivers. Tibecocha, the larger of the two plantations, appears to have been etched into the jungle with a ruler and a straight razor. Its rectangular grid of roads extends over almost 8 miles and contains a million palm trees. The smaller property, Zanja Seca, is nearly the size of Manhattan.
Each year, these plantations generate about $50 million in revenue for the Ocho Sur group, whose palm oil has ended up in products ranging from Cheetos to Colgate toothpaste. The $160 million that the company’s backers, primarily US venture capitalists and private equity funds, have spent on its operations represents the largest foreign investment in agriculture in the history of the Peruvian Amazon. The FERN
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Unlocking The Potential Of A 24- Hour Economy: Oro Oil Ghana CEO Calls On President-Elect Mahama To Use Oil Palm Export To Solve Unemployment Issue
The Chief Executive Officer of Oro Oil Ghana Limited, Maxwell Commey has called on the President Elect, John Dramani Mahama to use Oil Exportation as a pivotal strategy for enhancing economic resilience and competitiveness in the 24- 24-hour economy.
According to him, transitioning to a 24-hour economy presents a significant opportunity for a nation with a robust agriculture sector, saying, the export of palm oil alone to African countries like Nigeria is vast enough to create employment opportunities for millions of Ghanaian youth if the government establishes an enabling environment for private sector participation.
Speaking in an exclusive interview with journalists, the Board Member of the Tree Crops Development Authority Ghana highlighted that, if the new government aims to build the economy, they need to prioritize local production over excessive reliance on imports especially, the sharing of local foods produce as hampers by corporate entities during Christmas.
He added that, his company is the largest exporter of Palm Oil in Ghana but struggles to meet both domestic and international demands saying "I only meet 30% of just a single client in Nigeria hence, government empowerment by providing a Land Bank will go a long way to help support the private investors in Agriculture". Peace FM
Malaysia implements MSPO 2.0 to boost sustainable palm oil standards
KUALA LUMPUR (Jan 1): The Malaysian Sustainable Palm Oil Standard MS2530:2022 (MSPO 2.0) officially comes into effect on Wednesday, introducing stricter guidelines for sustainability, traceability, and ethical practices in palm oil production.
In a statement on Wednesday, the MSPO said that MSPO 2.0 improves upon the original MSPO 2013 standard by adopting stricter and more comprehensive requirements, aligning with current global standards and expectations for environmental sustainability, social responsibility, and governance practices (ESG).
"Since its introduction in 2013, the mandatory MSPO certification has been a cornerstone of Malaysia's commitment to sustainability and transparency.
"MSPO certification audits are carried out by independent, third-party accredited certification bodies, ensuring the highest standards of integrity and credibility," the MSPO said.
It added that MSPO 2.0 builds on this foundation with enhanced sustainability measures to maintain Malaysia's leadership in responsibly managed palm oil.
"Comprehensive traceability mechanisms ensure supply chain transparency, while the inclusion of mandatory dealer certification extends sustainability requirements across all levels of the supply chain," said the MSPO.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said that MSPO 2.0 represents the next step in ensuring that Malaysian palm oil remains synonymous with sustainability and reliability in global markets.
"Through this enhanced standard, we are safeguarding the future of our palm oil industry while continuing to lead by example on the global stage," he added. The Edge/ Bernama
--------
Prabowo's Statement on Palm Oil May Threaten the Environment, Satya Bumi Says
TEMPO.CO, Jakarta - Environmental campaign organization Satya Bumi criticized President Prabowo Subianto's statement that the expansion of palm oil plantations would have no impact on deforestation. Satya Bumi executive director Andi Muttaqien said that as head of state, Prabowo's statement would be interpreted as a directive to continue expanding land and opening up natural forests, which would damage the environment.
"Our research found that the environmental capacity of the upper cap of oil palm in Indonesia is only 18.15 million hectares. This finding is important considering that the palm oil industry in Indonesia has been over-expanding in the past two decades," Muttaqien said via written message on Tuesday, December 31, 2024.
According to Muttaqien, the results of economic and environmental calculations show the potential for large long-term losses if the palm oil industry's growth is unchecked. Moreover, based on Mapbiomas data from 2018 to 2021, deforestation related to oil palm plantations actually decreased, although it increased in 2022. "But what the government needs to do is intensify, not add more land or cut down natural forests," he said.
Muttaqien said Prabowo's statement contradicted various climate commitments, as well as deforestation control measures that Indonesia has taken. "As a head of state, he actually does not have a proper understanding of deforestation." Tempo
--------
CPO Futures Close Lower Over Indonesia's Biofuel Programme Implementation
KUALA LUMPUR, Dec 31 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed lower on the last trading day of 2024, due to the upcoming implementation of Indonesia’s biofuel programme in January, following the recent rally in CPO prices, a dealer said.
Indonesia's biofuel programme is a nationwide mandate to blend palm oil-based biodiesel with diesel fuel, aimed at reducing fuel imports, increasing domestic demand for palm oil, and cutting emissions.
Palm oil dealer David Ng noted that the slower pace of Indonesia's biofuel programme could hurt demand for CPO, which, in turn, would exert pressure on its prices.
“Lower export estimates are also seen weighing on CPO prices.
“We see support at RM4,400 and resistance at RM4,600 per tonne,” he told Bernama.
According to reports, Indonesia’s plan to expand its biodiesel mandate looks likely to be implemented gradually.
At the close, the January 2025 contract dropped by RM64 to RM4,861 per tonne, February 2025 lost RM97 to RM4,617 per tonne, and March 2025 fell by RM103 to RM4,448 per tonne.
April 2025 was down RM87 to RM4,305 per tonne, May 2025 slipped by RM65 to RM4,205 per tonne and June 2025 shed RM52 to RM4,140 per tonne.
Trading volume rose to 72,477 lots from 45,092 lots on Monday, while open interest eased to 239,495 contracts from 239,837 contracts yesterday.
The physical CPO price for January South fell RM80 to RM4,950 per tonne. Bernama
--------
Indonesia’s Prabowo wants protection from foreign interest in palm oil sector
Foreign countries are eyeing Indonesian palm oil as the ‘strategic material’ is crucial to their industries, President Prabowo Subianto says
President Prabowo Subianto has called for tighter security to protect Indonesia’s palm oil plantations, saying the commodity is being targeted by foreign countries.
“They really need our palm oil, as it turns out, palm oil is a strategic material,” said Prabowo, who was speaking on Monday at a meeting for national development planning in Jakarta.
“Many countries are afraid of not getting palm oil,” he added, according to a report by the Tempo news website.
Prabowo asked the Indonesian military and police to help regional authorities in protecting palm oil plantations. SCMP
--------
Viewpoint: Crop-based feedstocks face an uphill battle
US biofuel producers' demand for soybean and canola oil has waned recently, a trend that looks unlikely to reverse in the near term because of domestic policy changes that prioritize lower carbon intensity feedstocks.
Expectations that a US renewable diesel boom would drive up demand for vegetable oil led agribusinesses to announce new soybean crush plants and expansions in 2022. Seven new soybean crush plants have come online since then, increasing US nameplate capacity by 10pc to 2.91bn bushels/yr, but new policies have diverged from crop-based feedstocks because of their higher carbon intensity.
The California Air Resources Board (CARB) voted to adopt new low-carbon fuel standard (LCFS) targets on 6 November. CARB hiked the carbon-intensity reduction target of California's transportation fuels from 20pc to 30pc by 2030, in hopes of balancing the pool of oversupplied LCFS credits, which alone reduced incentives for crop-based fuels.
But more critically, the new rules will impose tighter restrictions for crop-based feedstocks, capping a company's LCFS credit generation from vegetable oil-based biofuel at 20pc/yr, starting in 2028 for existing plants. Apart from that, CARB will require producers to track the point of origin of crop-based feedstocks, adding to costs. Soybean oil-based biofuel already fetches a lower LCFS credit value in California, and the additional traceability requirement could further deter biofuel producers. Argus Media
--------
A palm oil company, a group of U.S. venture capitalists, and the destruction of Peru’s rainforest
Ocho Sur marketed palm oil to PepsiCo and Colgate-Palmolive as “deforestation-free.” Exclusive documents tell a more complicated story.
Two of the largest palm oil plantations in Peru are located on the west side of the Ucayali River, which flows from the Andes to the Amazon. From above, the surrounding landscape looks like stirred paint: a swirl of green amid inky lakes and brown rivers. Tibecocha, the larger of the two plantations, appears to have been etched into the jungle with a ruler and a straight razor. Its rectangular grid of roads extends over almost 8 miles and contains a million palm trees. The smaller property, Zanja Seca, is nearly the size of Manhattan.
Each year, these plantations generate about $50 million in revenue for the Ocho Sur group, whose palm oil has ended up in products ranging from Cheetos to Colgate toothpaste. The $160 million that the company’s backers, primarily US venture capitalists and private equity funds, have spent on its operations represents the largest foreign investment in agriculture in the history of the Peruvian Amazon. The FERN
--------
Unlocking The Potential Of A 24- Hour Economy: Oro Oil Ghana CEO Calls On President-Elect Mahama To Use Oil Palm Export To Solve Unemployment Issue
The Chief Executive Officer of Oro Oil Ghana Limited, Maxwell Commey has called on the President Elect, John Dramani Mahama to use Oil Exportation as a pivotal strategy for enhancing economic resilience and competitiveness in the 24- 24-hour economy.
According to him, transitioning to a 24-hour economy presents a significant opportunity for a nation with a robust agriculture sector, saying, the export of palm oil alone to African countries like Nigeria is vast enough to create employment opportunities for millions of Ghanaian youth if the government establishes an enabling environment for private sector participation.
Speaking in an exclusive interview with journalists, the Board Member of the Tree Crops Development Authority Ghana highlighted that, if the new government aims to build the economy, they need to prioritize local production over excessive reliance on imports especially, the sharing of local foods produce as hampers by corporate entities during Christmas.
He added that, his company is the largest exporter of Palm Oil in Ghana but struggles to meet both domestic and international demands saying "I only meet 30% of just a single client in Nigeria hence, government empowerment by providing a Land Bank will go a long way to help support the private investors in Agriculture". Peace FM
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Palm oil news January 2025 CSPO Watch