Palm oil news. June 2026
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June 30, 2026
Green fuel compromised by dirty trade – a look at Indonesia’s palm oil export scandal
The Attorney General’s Office in Indonesia has named 11 individuals and 12 associated companies as suspects in fraudulent exports of crude palm oil (CPO).
Investigators allege that between 2022-24, shipments of CPO were deliberately mis-declared as palm oil mill effluent (POME) – the liquid waste from palm oil mills – or other derivatives, obscuring their true nature in international trade.
Due to POME being a waste product, it is used as a renewable source across several products, including biofuels, fertiliser and animal products.
During this period, Indonesia exported POME products globally, as shown in the figure below. The largest markets are China, Europe (particularly Italy, the Netherlands and Spain) and Malaysia.
Yet even before the Attorney General’s announcement on 10 February this year, concerns had been raised as to whether global consumption of POME had outpaced what could realistically be produced by palm oil mills. The discrepancy points to a critical concern – were buyers receiving what the documentation claimed or had fraudulent labelling gone largely unchecked?
Indonesia exports of POME between 2022-24
These concerns echo findings published in EIA’s 2025 briefing The Palm Oil Black Box, highlighting an alarming increase in the trade in palm oil residue and waste products to be used for biofuels and the use of different trade codes – known as harmonised system (HS) codes – to seemingly avoid regulations, duties and taxes, leading to potentially fraudulent behaviour.
The investigation now unfolding in Indonesia appears to confirm those warnings, suggesting that misclassification may not be incidental but systemic.
This is especially pertinent for shipments destined for use as biofuels in the EU, estimated to comprise 29 per cent of Indonesia’s export trade between 2022-24 (see figure above).
The EU’s Renewable Energy Directive (RED) which aims to help tackle climate change and sets targets for renewable energy use, including in the transport sector, has increased demand for biofuels to meet the targets. The EU-recognised certification scheme for biofuels – the International Sustainability Carbon Certification (ISCC) – is meant to ensure traceability and no mislabelling, but the scheme has already come under intense scrutiny for fraud and is not delivering what it promises.
If the products being used to make biofuels are actually palm oil that causes deforestation, this undermines the whole idea behind biofuels being a green fuel that helps prevent climate change.
https://eia-international.org/blog/green-fuel-compromised-by-dirty-trade-a-look-at-indonesias-palm-oil-export-scandal/
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ISPO, PSR, and B40, Taking RI’s Palm Industry Closer To Net Zero
Palm oil is the most widely used vegetable oil in the world and an important raw material in many industries. Besides food industries, it is also used in the industries of cosmetics, personal care, cleaning products, health products, and renewable energy products. As a matter of fact, the palm oil can be found in almost half of packaged products in global markets.
There is no denying the fact that its higher productivity, higher efficiency and higher versatility as compared to other vegetable oils, becomes the main factor that makes it the most widely used oil globally. In terms of efficiency and productivity, the oil palm trees can produce oil higher than other oil crops from the same size of land.¹ Having special and unique properties that are applicable in many industries, palm oil becomes very versatile among global consumers.
But unfortunately, the palm oil industry has been for years facing many challenges attributed to deforestation, change of land use, and greenhouse gas emissions (GHG). In dealing with the challenges, palm oil producing countries, mainly Indonesia and Malaysia, have been continually pursuing efforts to strengthen the sustainability of palm oil with a view to helping realize the target of net zero emissions.²
Satellite technology and AI strengthens Palm Traceability
One of the biggest changes in the global palm oil industry is the increasing use of digital technology to strengthen supply chain traceability. International companies are now leveraging high-resolution satellite imagery, artificial intelligence (AI), and digital mapping systems to monitor the sources of their raw materials.
These technologies enable near-real-time monitoring of land cover changes, allowing for faster detection of land clearing activities. Traceability systems also help ensure that traded palm oil is responsibly sourced and meets increasingly stringent sustainability standards in the global market.²
ISPO strengthens governance of RI’s sustainable palm oil
As the world’s largest palm oil producer and exporter, Indonesia continues to strengthen its governance of the palm oil industry through various sustainability policies. A key instrument is the implementation of the Indonesian Sustainable Palm Oil (ISPO) scheme, which requires all palm industry players adopt sustainability principles—ranging from regulatory compliance and environmental protection to social responsibility.³
The implementation of ISPO plays a vital role in enhancing the competitiveness of Indonesian palm oil in the international market while simultaneously supporting low-carbon development and the reduction of greenhouse gas emissions.
Moratorium and PSR raises productivity without expansion
The Indonesian government has also implemented a moratorium policy on palm oil plantation permits, involving the evaluation and restructuring of existing licenses. This policy aims to boost the productivity of existing plantations without the need to open up new forest areas, thereby supporting conservation efforts and the protection of national carbon stocks.⁴
Furthermore, the program of replanting smallholders’ plantations (PSR) continues to be promoted to assist farmers in replacing old, low-yielding trees with superior seedlings that offer higher productivity. Through this program, increased production can be achieved without expanding plantation areas, thereby minimizing pressure to clear new land.⁵
Biodiesel strengthens palm contribution to Net Zero Emission
Indonesia’s commitment to reducing emissions is further reinforced by the mandatory palm oil-based biodiesel program. The implementation of B40 represents a crucial step toward reducing reliance on fossil fuels while simultaneously increasing the share of renewable energy in the national energy mix.
Looking ahead, the government is also advancing the implementation of B50, which is expected to strengthen national energy security, reduce fossil fuel imports, and contribute to lowering emissions in the transportation sector.⁶
The biodiesel program serves as tangible proof that the palm oil industry plays a role not only as a supplier of raw materials for food and oleochemicals but also as a vital component of Indonesia’s energy transition solution.
Deforestation drops, sustainability commitment strengthens
Various international studies and reports indicate that the rate of palm oil-related deforestation in Indonesia and Malaysia has declined significantly compared to a decade ago. At the same time, palm oil production continues to rise to meet global market demand. This situation demonstrates that increased production and sustainability can go hand in hand through improved governance, the use of technology, and the commitment of all stakeholders.²
Although challenges such as Indirect Land Use Change (ILUC) and rising global demand still require attention, the measures taken so far have shown a positive direction. Through the strengthening of the ISPO scheme, the replanting program for smallholders, moratorium policies, the use of satellite-based traceability technology, and the development of B40 to B50 biodiesel, Indonesia’s palm oil industry continues to move closer to achieving net-zero emissions and sustainable development goals. https://gapki.id/en/news/2026/06/26/ispo-psr-and-b40-taking-ris-palm-industry-closer-to-net-zero/
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Malaysia seeks to close Nigeria’s palm oil deficit
Malaysia has intensified its efforts to strengthen its partnership with Nigeria’s oil palm industry, providing technical expertise and a stable supply of palm oil to help alleviate the country’s annual production deficit of over one million metric tons.
Nigeria consumes over 2.5 million metric tons annually but produces only about 1.4 million metric tons, leaving a supply gap of roughly 1.1 million metric tons that is largely met through imports.
Speaking at the Malaysia Market Connect forum in Lagos, the Chief Executive Officer, Malaysian Palm Oil Council (MPOC), Belvinder Sron, said Nigeria remains one of Malaysia’s most strategic markets in Africa, with Malaysian palm oil exports to the country reaching about 300,000 metric tonnes last year.
“We see there’s still room to expand the exports of palm oil and palm oil products into this country. Nigeria is a key market for Malaysian palm oil, with exports totaling 300,000 metric tons last year.” Sron said.
While highlighting the export opportunities, Sron stressed that Malaysia’s broader objective is to support Nigeria’s efforts to expand domestic production rather than remain dependent on imports.
According to Sron, Nigeria possesses the natural advantages required to rebuild its oil palm industry, including favourable climatic conditions, abundant land and a large workforce.
“Oil palm is not new to Nigeria; it’s not new to Africa. Oil palm came from West Africa,” she said, noting that Malaysia’s success was built on commercialising the crop through research, improved seedlings, processing technology and efficient value chains.
She said Nigeria has the capacity to increase plantation acreage and improve productivity to narrow the country’s widening demand-supply gap, adding that Malaysia’s experience offers a practical model for developing a competitive and sustainable palm oil industry.
https://thenationonlineng.net/malaysia-seeks-to-close-nigerias-palm-oil-deficit/
Green fuel compromised by dirty trade – a look at Indonesia’s palm oil export scandal
The Attorney General’s Office in Indonesia has named 11 individuals and 12 associated companies as suspects in fraudulent exports of crude palm oil (CPO).
Investigators allege that between 2022-24, shipments of CPO were deliberately mis-declared as palm oil mill effluent (POME) – the liquid waste from palm oil mills – or other derivatives, obscuring their true nature in international trade.
Due to POME being a waste product, it is used as a renewable source across several products, including biofuels, fertiliser and animal products.
During this period, Indonesia exported POME products globally, as shown in the figure below. The largest markets are China, Europe (particularly Italy, the Netherlands and Spain) and Malaysia.
Yet even before the Attorney General’s announcement on 10 February this year, concerns had been raised as to whether global consumption of POME had outpaced what could realistically be produced by palm oil mills. The discrepancy points to a critical concern – were buyers receiving what the documentation claimed or had fraudulent labelling gone largely unchecked?
Indonesia exports of POME between 2022-24
These concerns echo findings published in EIA’s 2025 briefing The Palm Oil Black Box, highlighting an alarming increase in the trade in palm oil residue and waste products to be used for biofuels and the use of different trade codes – known as harmonised system (HS) codes – to seemingly avoid regulations, duties and taxes, leading to potentially fraudulent behaviour.
The investigation now unfolding in Indonesia appears to confirm those warnings, suggesting that misclassification may not be incidental but systemic.
This is especially pertinent for shipments destined for use as biofuels in the EU, estimated to comprise 29 per cent of Indonesia’s export trade between 2022-24 (see figure above).
The EU’s Renewable Energy Directive (RED) which aims to help tackle climate change and sets targets for renewable energy use, including in the transport sector, has increased demand for biofuels to meet the targets. The EU-recognised certification scheme for biofuels – the International Sustainability Carbon Certification (ISCC) – is meant to ensure traceability and no mislabelling, but the scheme has already come under intense scrutiny for fraud and is not delivering what it promises.
If the products being used to make biofuels are actually palm oil that causes deforestation, this undermines the whole idea behind biofuels being a green fuel that helps prevent climate change.
https://eia-international.org/blog/green-fuel-compromised-by-dirty-trade-a-look-at-indonesias-palm-oil-export-scandal/
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ISPO, PSR, and B40, Taking RI’s Palm Industry Closer To Net Zero
Palm oil is the most widely used vegetable oil in the world and an important raw material in many industries. Besides food industries, it is also used in the industries of cosmetics, personal care, cleaning products, health products, and renewable energy products. As a matter of fact, the palm oil can be found in almost half of packaged products in global markets.
There is no denying the fact that its higher productivity, higher efficiency and higher versatility as compared to other vegetable oils, becomes the main factor that makes it the most widely used oil globally. In terms of efficiency and productivity, the oil palm trees can produce oil higher than other oil crops from the same size of land.¹ Having special and unique properties that are applicable in many industries, palm oil becomes very versatile among global consumers.
But unfortunately, the palm oil industry has been for years facing many challenges attributed to deforestation, change of land use, and greenhouse gas emissions (GHG). In dealing with the challenges, palm oil producing countries, mainly Indonesia and Malaysia, have been continually pursuing efforts to strengthen the sustainability of palm oil with a view to helping realize the target of net zero emissions.²
Satellite technology and AI strengthens Palm Traceability
One of the biggest changes in the global palm oil industry is the increasing use of digital technology to strengthen supply chain traceability. International companies are now leveraging high-resolution satellite imagery, artificial intelligence (AI), and digital mapping systems to monitor the sources of their raw materials.
These technologies enable near-real-time monitoring of land cover changes, allowing for faster detection of land clearing activities. Traceability systems also help ensure that traded palm oil is responsibly sourced and meets increasingly stringent sustainability standards in the global market.²
ISPO strengthens governance of RI’s sustainable palm oil
As the world’s largest palm oil producer and exporter, Indonesia continues to strengthen its governance of the palm oil industry through various sustainability policies. A key instrument is the implementation of the Indonesian Sustainable Palm Oil (ISPO) scheme, which requires all palm industry players adopt sustainability principles—ranging from regulatory compliance and environmental protection to social responsibility.³
The implementation of ISPO plays a vital role in enhancing the competitiveness of Indonesian palm oil in the international market while simultaneously supporting low-carbon development and the reduction of greenhouse gas emissions.
Moratorium and PSR raises productivity without expansion
The Indonesian government has also implemented a moratorium policy on palm oil plantation permits, involving the evaluation and restructuring of existing licenses. This policy aims to boost the productivity of existing plantations without the need to open up new forest areas, thereby supporting conservation efforts and the protection of national carbon stocks.⁴
Furthermore, the program of replanting smallholders’ plantations (PSR) continues to be promoted to assist farmers in replacing old, low-yielding trees with superior seedlings that offer higher productivity. Through this program, increased production can be achieved without expanding plantation areas, thereby minimizing pressure to clear new land.⁵
Biodiesel strengthens palm contribution to Net Zero Emission
Indonesia’s commitment to reducing emissions is further reinforced by the mandatory palm oil-based biodiesel program. The implementation of B40 represents a crucial step toward reducing reliance on fossil fuels while simultaneously increasing the share of renewable energy in the national energy mix.
Looking ahead, the government is also advancing the implementation of B50, which is expected to strengthen national energy security, reduce fossil fuel imports, and contribute to lowering emissions in the transportation sector.⁶
The biodiesel program serves as tangible proof that the palm oil industry plays a role not only as a supplier of raw materials for food and oleochemicals but also as a vital component of Indonesia’s energy transition solution.
Deforestation drops, sustainability commitment strengthens
Various international studies and reports indicate that the rate of palm oil-related deforestation in Indonesia and Malaysia has declined significantly compared to a decade ago. At the same time, palm oil production continues to rise to meet global market demand. This situation demonstrates that increased production and sustainability can go hand in hand through improved governance, the use of technology, and the commitment of all stakeholders.²
Although challenges such as Indirect Land Use Change (ILUC) and rising global demand still require attention, the measures taken so far have shown a positive direction. Through the strengthening of the ISPO scheme, the replanting program for smallholders, moratorium policies, the use of satellite-based traceability technology, and the development of B40 to B50 biodiesel, Indonesia’s palm oil industry continues to move closer to achieving net-zero emissions and sustainable development goals. https://gapki.id/en/news/2026/06/26/ispo-psr-and-b40-taking-ris-palm-industry-closer-to-net-zero/
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Malaysia seeks to close Nigeria’s palm oil deficit
Malaysia has intensified its efforts to strengthen its partnership with Nigeria’s oil palm industry, providing technical expertise and a stable supply of palm oil to help alleviate the country’s annual production deficit of over one million metric tons.
Nigeria consumes over 2.5 million metric tons annually but produces only about 1.4 million metric tons, leaving a supply gap of roughly 1.1 million metric tons that is largely met through imports.
Speaking at the Malaysia Market Connect forum in Lagos, the Chief Executive Officer, Malaysian Palm Oil Council (MPOC), Belvinder Sron, said Nigeria remains one of Malaysia’s most strategic markets in Africa, with Malaysian palm oil exports to the country reaching about 300,000 metric tonnes last year.
“We see there’s still room to expand the exports of palm oil and palm oil products into this country. Nigeria is a key market for Malaysian palm oil, with exports totaling 300,000 metric tons last year.” Sron said.
While highlighting the export opportunities, Sron stressed that Malaysia’s broader objective is to support Nigeria’s efforts to expand domestic production rather than remain dependent on imports.
According to Sron, Nigeria possesses the natural advantages required to rebuild its oil palm industry, including favourable climatic conditions, abundant land and a large workforce.
“Oil palm is not new to Nigeria; it’s not new to Africa. Oil palm came from West Africa,” she said, noting that Malaysia’s success was built on commercialising the crop through research, improved seedlings, processing technology and efficient value chains.
She said Nigeria has the capacity to increase plantation acreage and improve productivity to narrow the country’s widening demand-supply gap, adding that Malaysia’s experience offers a practical model for developing a competitive and sustainable palm oil industry.
https://thenationonlineng.net/malaysia-seeks-to-close-nigerias-palm-oil-deficit/
June 29, 2026
How does food get traded around the world?
Our interactive tool helps you see where food is exported from and where it goes.
By Hannah Ritchie (conceptualization & writing), Sophia Mersmann (visualization), Pablo Rosado (data), and Marwa Boukarim (design)
My local supermarket here in Scotland is full of foods that were grown and produced elsewhere: bananas from South America, cocoa beans from West Africa, and citrus fruits from my southern neighbors in Europe. This is the case in many parts of the world. Our food systems have become incredibly globalized.
Which countries do we depend on for this wide range of foods?
To see how and where food is traded across the world, my colleague Sophia Mersmann built this interactive visualization that shows the flow of different types of food from producer to consumer.
The first view of this visualization shows how maize (or corn) was traded across the world. On the left-hand side, we have the exporting countries, and on the right, we see where they sent it. Brazil and the United States were the largest exporters, followed by Ukraine and Argentina. China was the largest importer.
https://ourworldindata.org/how-does-food-get-traded-around-the-world
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Palm oil supplies over a third of all the vegetable oil on Earth while using less than a tenth of the land devoted to oil crops — the most efficient fat humanity has ever found, and the most controversial
A single oil palm tree yields up to ten times more oil per hectare than soy or sunflower, which is why palm supplies over a third of global vegetable oil on less than a tenth of oil-crop land — and why its expansion into Sumatra and Borneo has become one of the hardest environmental tradeoffs on Earth.
In Riau province on Sumatra, a harvester walks between rows of oil palms with a long aluminium pole tipped by a curved blade. He angles it up into the crown of a tree, hooks the stem of a fruit bunch the size of a watermelon, and pulls. The bunch — orange-red, spiked, weighing perhaps forty kilograms — thuds onto the soil. He moves to the next tree. Within hours, the bunches will be on a truck heading to a mill where steam, pressure, and centrifuges will separate out the oil that ends up in biscuits in Birmingham, instant noodles in Jakarta, and shampoo in São Paulo.
The tree he is harvesting, Elaeis guineensis, is one of the strangest success stories in modern agriculture. Native to West Africa and now grown at industrial scale across Indonesia and Malaysia, it produces far more oil per hectare than soybeans, rapeseed, sunflower, or almost any other commercial oil crop humans have managed to cultivate. That biological edge is the reason palm oil has become so difficult to escape.
According to Our World in Data’s overview of palm oil production, oil palm accounts for a large share of the world’s vegetable oil while using a much smaller share of the land devoted to oil crops. In plain terms, it gives humanity more fat from less land than its major rivals. It is also the reason the crop is so controversial. The same tree that makes the global cooking-oil system more land-efficient has also helped push plantations deeper into the rainforests and peatlands of Sumatra, Borneo, and other tropical regions where the ecological cost is unusually high.
https://siliconcanals.com/j-v-palm-oil-supplies-over-a-third-of-all-the-vegetable-oil-on-earth-while-using-less-than-a-tenth-of-the-land-devoted-to-oil-crops-the-most-efficient-fat-humanity-has-ever-found-and-the-most-controve/
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Malaysia seeks local partnership to fill Nigeria’s palm oil supply gap
By Cynthia Alo
The Malaysian Palm Oil Council, MPOC, has pledged to support Nigeria with technical expertise, research collaboration and investment opportunities to help close the country’s estimated one million metric-tonnes palm oil supply gap.
The council also announced the establishment of a representative office in Lagos as part of efforts to deepen engagement with stakeholders across Nigeria’s palm oil value chain.
Speaking at the Malaysia Market Connect programme held in Lagos in partnership with the National Palm Produce Association of Nigeria (NPPAN) and the Nigerian Institute of Food Science and Technology (NIFST), Chief Executive Officer of MPOC, Ms Belvinder Sron, described Nigeria as a strategic market with significant potential to regain its position as a major global palm oil producer.
She disclosed that Malaysia exported about 300,000 metric tonnes of palm oil and palm-based products to Nigeria in the last one year, adding that local demand continues to outpace domestic production.
According to her, Malaysia is prepared to serve not only as a supplier but also as a development partner by providing improved seedlings, research and development support, technical know-how and expertise in sustainable palm oil cultivation.
Sron noted that Malaysia’s experience in leveraging oil palm cultivation to improve rural livelihoods and reduce poverty could offer useful lessons for Nigeria, particularly in boosting smallholder productivity and strengthening farmer organisations.
https://www.vanguardngr.com/2026/06/malaysia-seeks-local-partnership-to-fill-nigerias-palm-oil-supply-gap/
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Massive contribution from Malaysia's palm oil industry player for environmental conservation
BATU PAHAT, June 28: More than 200,000 independent oil palm smallholders across Malaysia are playing a dual role as producers of one of the country’s most strategic commodities while actively contributing to environmental conservation through the implementation of High Conservation Value (HCV) management practices under the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme.
Malaysian Palm Oil Board (MPOB) Director-General Datuk Dr Ahmad Parveez said public perception that environmental conservation is limited to forest reserves and national parks must change, as oil palm smallholders also play a significant role in safeguarding the nation’s natural environment.
“Many people do not realise that independent oil palm smallholders are at the forefront of environmental conservation. By protecting river buffer zones, preserving water catchment areas, and preventing encroachment into wildlife habitats, they are directly contributing to both Malaysia’s and the global sustainability agenda.
“This is what distinguishes Malaysia’s palm oil industry. Sustainability is not practised solely by large plantation companies but is also embraced by smallholders nationwide, who form the backbone of the country’s palm oil sector,” he said.
The MSPO Enhancement Programme for Oil Palm Smallholders in Batu Pahat, Johor, was officiated by the Minister of Plantation and Commodities, Datuk Seri Dr Noraini Ahmad, who also observed MPOB’s smallholder capacity-building initiatives and the implementation of MSPO certification.
Efforts to strengthen awareness and the implementation of HCV among independent oil palm smallholders are being intensified by the Malaysian Palm Oil Board (MPOB) and the Malaysian Sustainable Palm Oil (MSPO) Council, agencies under the Ministry of Plantation and Commodities.
The initiative aims to ensure that the country’s palm oil industry continues to grow in tandem with biodiversity conservation, water resource protection, and ecological sustainability.
As part of these efforts, smallholders have received training and guidance from MSPO Council representatives on HCV management, including methods for identifying environmentally sensitive areas within and surrounding their plantations.
https://www.tvsarawak.my/2026/06/28/massive-contribution-from-palm-oil-industry-player-for-environmental-conservation/
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Indonesian Palm Oil’s EU Export Surge: Genuine Demand or Regulatory Front-Loading?
29 June 2026
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EUDRIndonesia-EU CEPAPalm Oil ExportPalm Oil ProductionDeforestationPalm Oil
According to a statement released by the Trade Ministry, Indonesia's palm oil exports to the European Union (EU) reached USD $1.51 billion during the first four months of 2026. This represents a robust 11.1 percent year-on-year (y/y) increase.
A key driver behind this growth is the weakening rupiah against the euro. In the first quarter of 2025, the euro traded at around IDR 17,000, whereas it surged to a range of IDR 19,500 to IDR 20,000 in the first quarter of 2026, representing a roughly 16 percent depreciation for the Indonesian currency. However, exchange rates only tell part of the story. Looking at volume, shipments of palm oil to the EU rose by a strong 12.7 percent (y/y) to 1.70 million tons during the January–April 2026 period.
Eddy Martono, Chairman of the Indonesian Palm Oil Association (GAPKI), believes that long-term prospects for palm oil exports to the EU can remain positive, but notes that success hinges entirely on navigating the European Union Deforestation Regulation (EUDR). Martono has emphasized that while the upcoming Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) will offer significant tariff advantages, these benefits could be rendered ineffective if non-tariff barriers like the EUDR's strict traceability mandates are not resolved.
Production of Palm Oil in Indonesia (in million tons): https://www.indonesia-investments.com/news/news-columns/indonesian-palm-oil-s-eu-export-surge-genuine-demand-or-regulatory-front-loading/item9948
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Starting July 1, 2026, the Implementation of B50 will Strengthen Energy Resilience and Boost the Value Added of Palm Oil
JAKARTA - The government continues to strengthen its commitment to realizing national energy independence through the implementation of a palm oil-based biofuel fulfillment program.
Starting July 1, 2026, the implementation of mixed biodiesel increased to 50 percent (B50) as a strategic step in strengthening national energy resilience, reducing dependence on imported fossil fuels, while increasing the added value of Indonesian palm commodities.
The B50 Mandatory Program is a continuation of the successful implementation of mandatory biodiesel which has been running for the past few years.
This policy not only contributes to the country's foreign exchange savings through the reduction of solar imports and the reduction of CO2 Greenhouse Gases through the use of energy that is more environmentally friendly than conventional fossil fuels, but also has a positive impact on the stability of the national palm oil industry, increased absorption of domestic palm oil, and the welfare of palm oil planters in Indonesia.
Based on data from the Ministry of Energy and Mineral Resources, the implementation of the biodiesel program during 2015-2025 has resulted in foreign exchange savings of IDR 722.9 trillion, creating added value of IDR 114.7 trillion through the processing of CPO into biodiesel, supporting the absorption of up to 10.9 million people in the palm oil sector, and contributing to the reduction of greenhouse gas emissions by 228.41 million tons of CO₂.
This achievement shows that the biodiesel program is not only an instrument for national energy independence, but also a driver of economic growth, the industrialization of the palm oil industry, and job creation.
BPDP President Director, Eddy Abdurrachman, conveyed that the implementation of B50 is a tangible proof of the synergy between national energy policies and the development of a productive and sustainable palm oil industry.
"The biodiesel program has become one of the strategic instruments in strengthening national energy resilience while creating a strong domestic market for Indonesian palm products. The implementation of B50 shows the government's commitment to continue to increase the use of renewable energy based on domestic resources," he said.
The success of the implementation of B50 is inseparable from the efforts to strengthen the upstream sector which continues to be carried out sustainably. In this case, BPDP not only supports the biodiesel program, but also carries out various strategic programs aimed at increasing the productivity, sustainability, and competitiveness of the national palm oil industry.
These programs include the People's Palm Oil Revitalization (PSR), human resource development, research and development support (research), and the provision of plantation facilities and infrastructure.
Through the PSR program, BPDP encourages the increase in productivity of people's gardens by replacing unproductive plants with superior seeds that have higher productivity.
Meanwhile, support for research and development continues to be carried out to produce innovations that can increase productivity, efficiency, product quality, and the sustainability of the Indonesian palm oil industry.
Various research results are an important foundation in answering industry challenges, including increasing productivity, adapting to climate change, and developing downstream palm oil-based products.
https://voi.id/en/amp/582189
How does food get traded around the world?
Our interactive tool helps you see where food is exported from and where it goes.
By Hannah Ritchie (conceptualization & writing), Sophia Mersmann (visualization), Pablo Rosado (data), and Marwa Boukarim (design)
My local supermarket here in Scotland is full of foods that were grown and produced elsewhere: bananas from South America, cocoa beans from West Africa, and citrus fruits from my southern neighbors in Europe. This is the case in many parts of the world. Our food systems have become incredibly globalized.
Which countries do we depend on for this wide range of foods?
To see how and where food is traded across the world, my colleague Sophia Mersmann built this interactive visualization that shows the flow of different types of food from producer to consumer.
The first view of this visualization shows how maize (or corn) was traded across the world. On the left-hand side, we have the exporting countries, and on the right, we see where they sent it. Brazil and the United States were the largest exporters, followed by Ukraine and Argentina. China was the largest importer.
https://ourworldindata.org/how-does-food-get-traded-around-the-world
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Palm oil supplies over a third of all the vegetable oil on Earth while using less than a tenth of the land devoted to oil crops — the most efficient fat humanity has ever found, and the most controversial
A single oil palm tree yields up to ten times more oil per hectare than soy or sunflower, which is why palm supplies over a third of global vegetable oil on less than a tenth of oil-crop land — and why its expansion into Sumatra and Borneo has become one of the hardest environmental tradeoffs on Earth.
In Riau province on Sumatra, a harvester walks between rows of oil palms with a long aluminium pole tipped by a curved blade. He angles it up into the crown of a tree, hooks the stem of a fruit bunch the size of a watermelon, and pulls. The bunch — orange-red, spiked, weighing perhaps forty kilograms — thuds onto the soil. He moves to the next tree. Within hours, the bunches will be on a truck heading to a mill where steam, pressure, and centrifuges will separate out the oil that ends up in biscuits in Birmingham, instant noodles in Jakarta, and shampoo in São Paulo.
The tree he is harvesting, Elaeis guineensis, is one of the strangest success stories in modern agriculture. Native to West Africa and now grown at industrial scale across Indonesia and Malaysia, it produces far more oil per hectare than soybeans, rapeseed, sunflower, or almost any other commercial oil crop humans have managed to cultivate. That biological edge is the reason palm oil has become so difficult to escape.
According to Our World in Data’s overview of palm oil production, oil palm accounts for a large share of the world’s vegetable oil while using a much smaller share of the land devoted to oil crops. In plain terms, it gives humanity more fat from less land than its major rivals. It is also the reason the crop is so controversial. The same tree that makes the global cooking-oil system more land-efficient has also helped push plantations deeper into the rainforests and peatlands of Sumatra, Borneo, and other tropical regions where the ecological cost is unusually high.
https://siliconcanals.com/j-v-palm-oil-supplies-over-a-third-of-all-the-vegetable-oil-on-earth-while-using-less-than-a-tenth-of-the-land-devoted-to-oil-crops-the-most-efficient-fat-humanity-has-ever-found-and-the-most-controve/
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Malaysia seeks local partnership to fill Nigeria’s palm oil supply gap
By Cynthia Alo
The Malaysian Palm Oil Council, MPOC, has pledged to support Nigeria with technical expertise, research collaboration and investment opportunities to help close the country’s estimated one million metric-tonnes palm oil supply gap.
The council also announced the establishment of a representative office in Lagos as part of efforts to deepen engagement with stakeholders across Nigeria’s palm oil value chain.
Speaking at the Malaysia Market Connect programme held in Lagos in partnership with the National Palm Produce Association of Nigeria (NPPAN) and the Nigerian Institute of Food Science and Technology (NIFST), Chief Executive Officer of MPOC, Ms Belvinder Sron, described Nigeria as a strategic market with significant potential to regain its position as a major global palm oil producer.
She disclosed that Malaysia exported about 300,000 metric tonnes of palm oil and palm-based products to Nigeria in the last one year, adding that local demand continues to outpace domestic production.
According to her, Malaysia is prepared to serve not only as a supplier but also as a development partner by providing improved seedlings, research and development support, technical know-how and expertise in sustainable palm oil cultivation.
Sron noted that Malaysia’s experience in leveraging oil palm cultivation to improve rural livelihoods and reduce poverty could offer useful lessons for Nigeria, particularly in boosting smallholder productivity and strengthening farmer organisations.
https://www.vanguardngr.com/2026/06/malaysia-seeks-local-partnership-to-fill-nigerias-palm-oil-supply-gap/
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Massive contribution from Malaysia's palm oil industry player for environmental conservation
BATU PAHAT, June 28: More than 200,000 independent oil palm smallholders across Malaysia are playing a dual role as producers of one of the country’s most strategic commodities while actively contributing to environmental conservation through the implementation of High Conservation Value (HCV) management practices under the Malaysian Sustainable Palm Oil (MSPO) Certification Scheme.
Malaysian Palm Oil Board (MPOB) Director-General Datuk Dr Ahmad Parveez said public perception that environmental conservation is limited to forest reserves and national parks must change, as oil palm smallholders also play a significant role in safeguarding the nation’s natural environment.
“Many people do not realise that independent oil palm smallholders are at the forefront of environmental conservation. By protecting river buffer zones, preserving water catchment areas, and preventing encroachment into wildlife habitats, they are directly contributing to both Malaysia’s and the global sustainability agenda.
“This is what distinguishes Malaysia’s palm oil industry. Sustainability is not practised solely by large plantation companies but is also embraced by smallholders nationwide, who form the backbone of the country’s palm oil sector,” he said.
The MSPO Enhancement Programme for Oil Palm Smallholders in Batu Pahat, Johor, was officiated by the Minister of Plantation and Commodities, Datuk Seri Dr Noraini Ahmad, who also observed MPOB’s smallholder capacity-building initiatives and the implementation of MSPO certification.
Efforts to strengthen awareness and the implementation of HCV among independent oil palm smallholders are being intensified by the Malaysian Palm Oil Board (MPOB) and the Malaysian Sustainable Palm Oil (MSPO) Council, agencies under the Ministry of Plantation and Commodities.
The initiative aims to ensure that the country’s palm oil industry continues to grow in tandem with biodiversity conservation, water resource protection, and ecological sustainability.
As part of these efforts, smallholders have received training and guidance from MSPO Council representatives on HCV management, including methods for identifying environmentally sensitive areas within and surrounding their plantations.
https://www.tvsarawak.my/2026/06/28/massive-contribution-from-palm-oil-industry-player-for-environmental-conservation/
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Indonesian Palm Oil’s EU Export Surge: Genuine Demand or Regulatory Front-Loading?
29 June 2026
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EUDRIndonesia-EU CEPAPalm Oil ExportPalm Oil ProductionDeforestationPalm Oil
According to a statement released by the Trade Ministry, Indonesia's palm oil exports to the European Union (EU) reached USD $1.51 billion during the first four months of 2026. This represents a robust 11.1 percent year-on-year (y/y) increase.
A key driver behind this growth is the weakening rupiah against the euro. In the first quarter of 2025, the euro traded at around IDR 17,000, whereas it surged to a range of IDR 19,500 to IDR 20,000 in the first quarter of 2026, representing a roughly 16 percent depreciation for the Indonesian currency. However, exchange rates only tell part of the story. Looking at volume, shipments of palm oil to the EU rose by a strong 12.7 percent (y/y) to 1.70 million tons during the January–April 2026 period.
Eddy Martono, Chairman of the Indonesian Palm Oil Association (GAPKI), believes that long-term prospects for palm oil exports to the EU can remain positive, but notes that success hinges entirely on navigating the European Union Deforestation Regulation (EUDR). Martono has emphasized that while the upcoming Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) will offer significant tariff advantages, these benefits could be rendered ineffective if non-tariff barriers like the EUDR's strict traceability mandates are not resolved.
Production of Palm Oil in Indonesia (in million tons): https://www.indonesia-investments.com/news/news-columns/indonesian-palm-oil-s-eu-export-surge-genuine-demand-or-regulatory-front-loading/item9948
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Starting July 1, 2026, the Implementation of B50 will Strengthen Energy Resilience and Boost the Value Added of Palm Oil
JAKARTA - The government continues to strengthen its commitment to realizing national energy independence through the implementation of a palm oil-based biofuel fulfillment program.
Starting July 1, 2026, the implementation of mixed biodiesel increased to 50 percent (B50) as a strategic step in strengthening national energy resilience, reducing dependence on imported fossil fuels, while increasing the added value of Indonesian palm commodities.
The B50 Mandatory Program is a continuation of the successful implementation of mandatory biodiesel which has been running for the past few years.
This policy not only contributes to the country's foreign exchange savings through the reduction of solar imports and the reduction of CO2 Greenhouse Gases through the use of energy that is more environmentally friendly than conventional fossil fuels, but also has a positive impact on the stability of the national palm oil industry, increased absorption of domestic palm oil, and the welfare of palm oil planters in Indonesia.
Based on data from the Ministry of Energy and Mineral Resources, the implementation of the biodiesel program during 2015-2025 has resulted in foreign exchange savings of IDR 722.9 trillion, creating added value of IDR 114.7 trillion through the processing of CPO into biodiesel, supporting the absorption of up to 10.9 million people in the palm oil sector, and contributing to the reduction of greenhouse gas emissions by 228.41 million tons of CO₂.
This achievement shows that the biodiesel program is not only an instrument for national energy independence, but also a driver of economic growth, the industrialization of the palm oil industry, and job creation.
BPDP President Director, Eddy Abdurrachman, conveyed that the implementation of B50 is a tangible proof of the synergy between national energy policies and the development of a productive and sustainable palm oil industry.
"The biodiesel program has become one of the strategic instruments in strengthening national energy resilience while creating a strong domestic market for Indonesian palm products. The implementation of B50 shows the government's commitment to continue to increase the use of renewable energy based on domestic resources," he said.
The success of the implementation of B50 is inseparable from the efforts to strengthen the upstream sector which continues to be carried out sustainably. In this case, BPDP not only supports the biodiesel program, but also carries out various strategic programs aimed at increasing the productivity, sustainability, and competitiveness of the national palm oil industry.
These programs include the People's Palm Oil Revitalization (PSR), human resource development, research and development support (research), and the provision of plantation facilities and infrastructure.
Through the PSR program, BPDP encourages the increase in productivity of people's gardens by replacing unproductive plants with superior seeds that have higher productivity.
Meanwhile, support for research and development continues to be carried out to produce innovations that can increase productivity, efficiency, product quality, and the sustainability of the Indonesian palm oil industry.
Various research results are an important foundation in answering industry challenges, including increasing productivity, adapting to climate change, and developing downstream palm oil-based products.
https://voi.id/en/amp/582189
June 27, 2026
MSPO certification shields palm oil industry, guarantees future of smallholders
BATU PAHAT: The Malaysian Sustainable Palm Oil (MSPO) certification is not just a certificate, but rather a 'shield' for the country's palm oil industry as well as guaranteeing the future of smallholders.
Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said MSPO certification is proof that Malaysian palm oil is cultivated with good, organised and environmentally responsible practices.
"Today, the global market is getting more and more demanding. Foreign buyers want to know where our palm oil comes from. They want to know if our palm oil is produced sustainably. They want to know if we take good care of the environment.
"That's why MSPO is important. It helps protect the future of smallholders and ensures that Malaysian palm oil continues to be accepted in the world market," she said at the MSPO Strengthening Programme for Palm Oil Smallholders at the Parit Sulong Regional Farmers Association hall here today.
Noraini said that as of June 15, the implementation of MSPO for private smallholders under the supervision of the Malaysian Palm Oil Board (MPOB) had successfully certified 162 Sustainable Palm Oil Clusters (SPOCs).
She said the total certification involved 197,933 smallholders over more than 731,000 hectares nationwide.
In Johor, a total of 43 SPOCs had been certified involving 55,194 smallholders over 128,720.26 hectares, while in the Batu Pahat district alone, a total of 15,641 smallholders had received the certification covering 29,122.54 hectares.
https://www.thestar.com.my/business/business-news/2026/06/26/mspo-certification-shields-palm-oil-industry-guaranteesfuture-of-smallholders#goog_rewarded
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Southeast Asia’s ‘red alert’ haze fight faces economic test
Indonesia has come under renewed attention after President Prabowo Subianto committed to cracking down on agriculture-linked fires
A potentially dangerous haze season looms for Southeast Asia, as rising energy and fertiliser costs threaten to weaken fire-prevention efforts just as extreme weather patterns raise the risk of forest and land blazes.
Analysts warn that agricultural companies facing pressure from higher production costs may cut corners on sustainable land-clearing practices, including by using fire instead of machinery.
The warning comes as the Singapore Institute of International Affairs (SIIA) issued a rare “red alert” for Brunei, Indonesia, Malaysia and Singapore in its latest haze outlook, signalling a high risk of severe transboundary haze.
While weather conditions such as El Nino, a longer dry season and conditions in the Indian Ocean posed an immediate threat, pressure on planters threatened to compound the haze problem in the longer run, the report warned.
At the launch of the findings on Wednesday, SIIA chairman Simon Tay said energy disruption caused by the closure of the Strait of Hormuz amid the Iran war had raised production costs for planters by about 20 to 30 per cent.
“They will face pressures to cut costs elsewhere, and this might be the use of fire, rather than the use of machinery to clear land,” he said.
Demand for palm oil as a biofuel feedstock was also likely to rise as countries grappled with fuel shortages, Tay added.
Felicia Liu, a lecturer in sustainability at the University of York, said economic strain could weaken safeguards against forest fires, as governments and companies face greater temptation to “cut corners” on environmental protection.
That could mean weaker enforcement and more illegal land clearance in pursuit of short-term economic gains, she said.
This year’s conditions – combining the regional dry season, El Nino and an Indian Ocean weather pattern – would provide a “genuine stress test” for fire prevention and enforcement measures, Liu added.
https://www.scmp.com/week-asia/health-environment/article/3358548/southeast-asias-red-alert-haze-fight-faces-economic-test
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Malaysia’s Palm Oil Council eyes Nigeria expansion as demand grows
Malaysia’s Palm Oil Council (MPOC) is eyeing expansion in Nigeria, a key market for the country’s palm oil exports, as demand for the commodity continues to grow.
Belvinder Sron, chief executive officer of MPOC, disclosed this on Thursday at the Malaysia Market Connect in Lagos, stating that Malaysia sees significant market potential in Nigeria and West Africa.
“We see there’s still room to expand the exports of palm or palm products into this country,” Sron said. “Nigeria is a key market for Malaysian palm oil, with exports totalling 300,000 metric tonnes last year,” she noted.
“It’s very interesting, and there’s huge potential here still in this market,” she added.
Sron highlighted Nigeria’s potential for palm oil production, citing the country’s suitable climate and labour force. “Oil palm is not new to Nigeria, it’s not new to Africa. Oil palm came from West Africa,” explaining that Malaysia only commercialises the commodity.
According to her, Nigeria has the potential to increase its plantations to meet local demand; however, the country still needs to bridge its demand–supply gap.
The CEO noted that Malaysia’s palm oil industry can serve as a model for Nigeria, with MPOC promoting sustainable certification and profitable income models.
Sron emphasizes the importance of improving livelihoods through oil palm cultivation, saying, “Sustainability has to be seen as to how you improve the lives of people.”
She added that MPOC is offering Nigerian farmers technical expertise and access to Malaysia’s certified sustainable palm oil supply chain.
https://businessday.ng/agriculture/article/malaysias-palm-oil-council-eyes-nigeria-expansion-as-demand-grows/
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Indonesia enters new era of energy independence with launch of B50
Jakarta (ANTARA) - Starting from July 1, 2026, Indonesia will enter a new chapter in its national energy policy by mandating B50 biodiesel, which is a mixture of 50 percent palm-based biodiesel and 50 percent fossil diesel.
This initiative will position Indonesia as a country with one of the highest biodiesel blending mandates in the world, following the implementation of B40 in 2025.
The government has laid a solid foundation for the rollout by conducting comprehensive feasibility trials carried out across various types of vehicles and heavy machinery.
Backed by these successful trials, the government is confident in its decision to raise the biodiesel blend to 50 percent, aiming to provide an eco-friendly fuel alternative while strengthening national energy security.
The program is expected to have an extensive economic impact, with the Ministry of Energy and Mineral Resources projecting the B50 implementation to save the country up to Rp157.28 trillion (approximately US$8.8 billion) in foreign exchange reserves in 2026, as the need for fuel imports, especially diesel, declines.
The use of B50 biodiesel is expected to slash fossil diesel consumption by approximately 4 million kiloliters per year, thereby easing pressure on the trade balance.
Consequently, this will reduce Indonesia's reliance on foreign energy supplies amid volatile global oil prices and shifting geopolitical dynamics.
Global spotlight
Indonesia’s move to utilize its natural resources through the B50 biodiesel push is poised to capture the world's attention. While several countries are still implementing biodiesel blends at the B10 to B20 levels, Indonesia is leaping to B50.
Even neighboring Malaysia is currently running a B15 biodiesel mandate. This positioning establishes Indonesia as a pioneer in the large-scale adoption of palm oil-based biodiesel.
For the domestic palm oil industry, the mandate is expected to boost the domestic absorption of crude palm oil (CPO).
Indonesia is already the world's largest palm oil producer. The rising demand for biodiesel feedstock has the potential to create a much larger market for the national palm oil industry while simultaneously reducing its reliance on exports.
Secretary General of the Automotive Body of the Indonesian Young Entrepreneurs Association (HIPMI), Hastriansyah, noted that Indonesia has the potential to emerge as the main player in the future biodiesel industry through its B50 mandate. The country can even become an exporter, at least for the Asia-Pacific.
This renewable energy policy is expected to attract new investors and foster collaborations, as Indonesia still needs the proven technologies of established global firms.
https://en.antaranews.com/amp/news/420608/b50-mandate-begins-indonesia-enters-a-new-era-of-energy-independence
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Indonesian Police Arrest the President Director of PT MMS for Under-invoicing Palm Oil Export
inp.polri.go.id - Jakarta. The Directorate of Certain Criminal Investigation of Indonesian National Police (INP) has detained the President Director of PT Mitra Mentari Sentosa (MMS), Whu Zeng Xie, on suspicion of manipulating palm oil derivative export data through under-invoicing.
The detained was carried out after he was named a suspect on Wednesday (6/24/2026).
Head of Sub-Directorate I of the Directorate of Certain Criminal Investigation, Senior Superintendent Setyo K Heriyatno, stated that the detention was for investigative purposes and to expedite the disclosure of the case, which is currently ongoing.
"The suspect, the President Director of PT Mitra Mentari Sentosa (MMS), Mr. Whu Zeng Xie, has been detained for investigative purposes," explained Setyo on Friday (6/26/2026).
According to him, investigators found indications of under-invoicing, or the listing of lower export values than the actual value on export documents.
The alleged violations relate to the export of palm oil derivatives, which are subject to export restrictions, require an Export Approval (PE), and are subject to export duties.
"This alleged practice of under-invoicing has the potential to cause state losses due to discrepancies in reported export data," he said.
During the investigation, police are examining 95 exports to China from 2024 to 2026. Investigators are currently analyzing documents and conducting further investigations.
"Investigators are inspecting containers at Tanjung Priok Port and examining export documents held by Customs. All of this data is being analyzed and matched with the investigation results to strengthen the evidence in the filing process," explained Setyo.
He emphasized that the police will continue to investigate the possible involvement of other parties and calculate the potential state losses arising from the alleged export violations.
https://inp.polri.go.id/artikel/police-arrest-the-president-director-of-pt-mms-for-under-invoicing-palm-oil-export
MSPO certification shields palm oil industry, guarantees future of smallholders
BATU PAHAT: The Malaysian Sustainable Palm Oil (MSPO) certification is not just a certificate, but rather a 'shield' for the country's palm oil industry as well as guaranteeing the future of smallholders.
Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said MSPO certification is proof that Malaysian palm oil is cultivated with good, organised and environmentally responsible practices.
"Today, the global market is getting more and more demanding. Foreign buyers want to know where our palm oil comes from. They want to know if our palm oil is produced sustainably. They want to know if we take good care of the environment.
"That's why MSPO is important. It helps protect the future of smallholders and ensures that Malaysian palm oil continues to be accepted in the world market," she said at the MSPO Strengthening Programme for Palm Oil Smallholders at the Parit Sulong Regional Farmers Association hall here today.
Noraini said that as of June 15, the implementation of MSPO for private smallholders under the supervision of the Malaysian Palm Oil Board (MPOB) had successfully certified 162 Sustainable Palm Oil Clusters (SPOCs).
She said the total certification involved 197,933 smallholders over more than 731,000 hectares nationwide.
In Johor, a total of 43 SPOCs had been certified involving 55,194 smallholders over 128,720.26 hectares, while in the Batu Pahat district alone, a total of 15,641 smallholders had received the certification covering 29,122.54 hectares.
https://www.thestar.com.my/business/business-news/2026/06/26/mspo-certification-shields-palm-oil-industry-guaranteesfuture-of-smallholders#goog_rewarded
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Southeast Asia’s ‘red alert’ haze fight faces economic test
Indonesia has come under renewed attention after President Prabowo Subianto committed to cracking down on agriculture-linked fires
A potentially dangerous haze season looms for Southeast Asia, as rising energy and fertiliser costs threaten to weaken fire-prevention efforts just as extreme weather patterns raise the risk of forest and land blazes.
Analysts warn that agricultural companies facing pressure from higher production costs may cut corners on sustainable land-clearing practices, including by using fire instead of machinery.
The warning comes as the Singapore Institute of International Affairs (SIIA) issued a rare “red alert” for Brunei, Indonesia, Malaysia and Singapore in its latest haze outlook, signalling a high risk of severe transboundary haze.
While weather conditions such as El Nino, a longer dry season and conditions in the Indian Ocean posed an immediate threat, pressure on planters threatened to compound the haze problem in the longer run, the report warned.
At the launch of the findings on Wednesday, SIIA chairman Simon Tay said energy disruption caused by the closure of the Strait of Hormuz amid the Iran war had raised production costs for planters by about 20 to 30 per cent.
“They will face pressures to cut costs elsewhere, and this might be the use of fire, rather than the use of machinery to clear land,” he said.
Demand for palm oil as a biofuel feedstock was also likely to rise as countries grappled with fuel shortages, Tay added.
Felicia Liu, a lecturer in sustainability at the University of York, said economic strain could weaken safeguards against forest fires, as governments and companies face greater temptation to “cut corners” on environmental protection.
That could mean weaker enforcement and more illegal land clearance in pursuit of short-term economic gains, she said.
This year’s conditions – combining the regional dry season, El Nino and an Indian Ocean weather pattern – would provide a “genuine stress test” for fire prevention and enforcement measures, Liu added.
https://www.scmp.com/week-asia/health-environment/article/3358548/southeast-asias-red-alert-haze-fight-faces-economic-test
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Malaysia’s Palm Oil Council eyes Nigeria expansion as demand grows
Malaysia’s Palm Oil Council (MPOC) is eyeing expansion in Nigeria, a key market for the country’s palm oil exports, as demand for the commodity continues to grow.
Belvinder Sron, chief executive officer of MPOC, disclosed this on Thursday at the Malaysia Market Connect in Lagos, stating that Malaysia sees significant market potential in Nigeria and West Africa.
“We see there’s still room to expand the exports of palm or palm products into this country,” Sron said. “Nigeria is a key market for Malaysian palm oil, with exports totalling 300,000 metric tonnes last year,” she noted.
“It’s very interesting, and there’s huge potential here still in this market,” she added.
Sron highlighted Nigeria’s potential for palm oil production, citing the country’s suitable climate and labour force. “Oil palm is not new to Nigeria, it’s not new to Africa. Oil palm came from West Africa,” explaining that Malaysia only commercialises the commodity.
According to her, Nigeria has the potential to increase its plantations to meet local demand; however, the country still needs to bridge its demand–supply gap.
The CEO noted that Malaysia’s palm oil industry can serve as a model for Nigeria, with MPOC promoting sustainable certification and profitable income models.
Sron emphasizes the importance of improving livelihoods through oil palm cultivation, saying, “Sustainability has to be seen as to how you improve the lives of people.”
She added that MPOC is offering Nigerian farmers technical expertise and access to Malaysia’s certified sustainable palm oil supply chain.
https://businessday.ng/agriculture/article/malaysias-palm-oil-council-eyes-nigeria-expansion-as-demand-grows/
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Indonesia enters new era of energy independence with launch of B50
Jakarta (ANTARA) - Starting from July 1, 2026, Indonesia will enter a new chapter in its national energy policy by mandating B50 biodiesel, which is a mixture of 50 percent palm-based biodiesel and 50 percent fossil diesel.
This initiative will position Indonesia as a country with one of the highest biodiesel blending mandates in the world, following the implementation of B40 in 2025.
The government has laid a solid foundation for the rollout by conducting comprehensive feasibility trials carried out across various types of vehicles and heavy machinery.
Backed by these successful trials, the government is confident in its decision to raise the biodiesel blend to 50 percent, aiming to provide an eco-friendly fuel alternative while strengthening national energy security.
The program is expected to have an extensive economic impact, with the Ministry of Energy and Mineral Resources projecting the B50 implementation to save the country up to Rp157.28 trillion (approximately US$8.8 billion) in foreign exchange reserves in 2026, as the need for fuel imports, especially diesel, declines.
The use of B50 biodiesel is expected to slash fossil diesel consumption by approximately 4 million kiloliters per year, thereby easing pressure on the trade balance.
Consequently, this will reduce Indonesia's reliance on foreign energy supplies amid volatile global oil prices and shifting geopolitical dynamics.
Global spotlight
Indonesia’s move to utilize its natural resources through the B50 biodiesel push is poised to capture the world's attention. While several countries are still implementing biodiesel blends at the B10 to B20 levels, Indonesia is leaping to B50.
Even neighboring Malaysia is currently running a B15 biodiesel mandate. This positioning establishes Indonesia as a pioneer in the large-scale adoption of palm oil-based biodiesel.
For the domestic palm oil industry, the mandate is expected to boost the domestic absorption of crude palm oil (CPO).
Indonesia is already the world's largest palm oil producer. The rising demand for biodiesel feedstock has the potential to create a much larger market for the national palm oil industry while simultaneously reducing its reliance on exports.
Secretary General of the Automotive Body of the Indonesian Young Entrepreneurs Association (HIPMI), Hastriansyah, noted that Indonesia has the potential to emerge as the main player in the future biodiesel industry through its B50 mandate. The country can even become an exporter, at least for the Asia-Pacific.
This renewable energy policy is expected to attract new investors and foster collaborations, as Indonesia still needs the proven technologies of established global firms.
https://en.antaranews.com/amp/news/420608/b50-mandate-begins-indonesia-enters-a-new-era-of-energy-independence
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Indonesian Police Arrest the President Director of PT MMS for Under-invoicing Palm Oil Export
inp.polri.go.id - Jakarta. The Directorate of Certain Criminal Investigation of Indonesian National Police (INP) has detained the President Director of PT Mitra Mentari Sentosa (MMS), Whu Zeng Xie, on suspicion of manipulating palm oil derivative export data through under-invoicing.
The detained was carried out after he was named a suspect on Wednesday (6/24/2026).
Head of Sub-Directorate I of the Directorate of Certain Criminal Investigation, Senior Superintendent Setyo K Heriyatno, stated that the detention was for investigative purposes and to expedite the disclosure of the case, which is currently ongoing.
"The suspect, the President Director of PT Mitra Mentari Sentosa (MMS), Mr. Whu Zeng Xie, has been detained for investigative purposes," explained Setyo on Friday (6/26/2026).
According to him, investigators found indications of under-invoicing, or the listing of lower export values than the actual value on export documents.
The alleged violations relate to the export of palm oil derivatives, which are subject to export restrictions, require an Export Approval (PE), and are subject to export duties.
"This alleged practice of under-invoicing has the potential to cause state losses due to discrepancies in reported export data," he said.
During the investigation, police are examining 95 exports to China from 2024 to 2026. Investigators are currently analyzing documents and conducting further investigations.
"Investigators are inspecting containers at Tanjung Priok Port and examining export documents held by Customs. All of this data is being analyzed and matched with the investigation results to strengthen the evidence in the filing process," explained Setyo.
He emphasized that the police will continue to investigate the possible involvement of other parties and calculate the potential state losses arising from the alleged export violations.
https://inp.polri.go.id/artikel/police-arrest-the-president-director-of-pt-mms-for-under-invoicing-palm-oil-export
June 26, 2026
The UK's Deforestation law finally lands
DAVID BURROWS AND NICK HUGHES
As visitors to London Climate Action Week events struggle to keep cool amid record-breaking June temperatures, the UK Government has finally moved to tackle a key driver of global warming – deforestation.
After years of delay, ministers confirmed this week that new rules will be introduced to ensure everyday products sold in the UK including soy, beef, palm oil, coffee and cocoa do not contribute to illegal deforestation around the world. The government has also signalled its longer-term intention to require products to be produced free from any deforestation, not just that which is illegal.
Powers to curb illegal deforestation were originally granted under the Environment Act 2021, however the process of legislating to make it mandatory for large companies to carry out due diligence checks to ensure there is no illegal deforestation in their supply chains has been subject to numerous delays.
The impasse was broken on Tuesday when a policy paper was published setting out the UK’s approach to deforestation regulations, with the government planning to launch a consultation soon.
“Tackling global deforestation is one of the most effective ways we can address climate change and protect some of the world’s most unique and precious wildlife,” said nature minister Mary Creagh.
Campaigners welcomed the move, which many feel is long overdue. “This is a strong signal to business that supply chains need to be deforestation-free,” said Cassie Dummett, coordinator of the NGO Forest Coalition. “For too long, consumers in the UK have been buying goods that are tainted with deforestation.”
Retailers also backed the decision to legislate. “We have long called for UK deforestation regulation as an important step in driving forest conservation across retail supply chains in line with business commitments, while supporting alignment with the EU where possible to avoid unnecessary costs and complexity for retailers and their customers,” said Andrew Opie, director of food & sustainability at the BRC.
The EU is pursuing its own deforestation regulation which, although further advanced than the UK’s, has also been subject to numerous delays and revisions.
Small Bites
Farm roadmap backs nature-friendly farming
Defra has published its long-awaited 25-year farming roadmap, which aims to give farmers across England “certainty beyond the next harvest for the first time”, providing “long-term stability”. The government said the strategy will mean farmers have better access to the tools, technology, skills and supply chains they need to invest, innovate and grow. It also plans to review how the economic value of agriculture is measured by developing new supplementary statistics to include the wider food supply chain, from processing and manufacturing to distribution and retail. As rising costs and extreme weather continue to heap pressure on producers, The Farming Roadmap 2050 sets out how farmers can reduce reliance on inputs like fertiliser through new technology and smarter nutrient management, and adapt to the growing impacts of extreme weather and climate change through nature-based solutions such as improved soil health and water management. The roadmap has received a mixed response. Sustain, the alliance of food and farming organisations, welcomed the government’s recognition that nature-friendly, lower-input farming underpins long-term food security, but expressed disappointment at the “minimal rhetoric on dietary change and livestock numbers” and a plan to expand the poultry sector, which it said risks compromising targets on pollution and biodiversity.
Brands still wedded to ‘fuzzy’ green claims
In the three months to November 2025, the Advertising Standards Authority (ASA) captured 7 million online adverts served up to UK consumers. Of these, 1% included environmental claims. Hardly a big share. However, where they do appear these ads are often framed in broad or absolute terms such as ‘eco-friendly’, ‘sustainable’ or ‘carbon neutral’, said the ASA in its new pulse report. Such absolute claims require a particularly high level of substantiation, which means the “regulatory risk” is shaped less by ‘how often’ green claims appear, and more by ‘how’ they are framed. Of the 145,000 agriculture and food ads, 3,000 (2%) made an environmental claim and 95% of these were absolute claims. ‘Eco-friendly coffee’ was a particular favourite of brands; many also remain wedded to what the ASA terms “warm and fuzzy” language like ‘grass-fed’, ‘regenerative’ and ‘less plastic’. Dominic Watkins from DWF, a law firm, told Footprint that although the ASA didn’t assess whether any advertising rules had been breached, food and drink brands should understand that penalties are coming. “This research comes at a time when the Competition and Markets Authority is increasingly investigating and using its new powers under the Digital Markets Competitions and Consumers Act to issue civil sanctions. To date most have focused on pricing issues [but] it is only a matter of time before they return to sustainability issues,” Watkins added.
https://foodservicefootprint.com/deforestation-law-finally-lands/
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UK deforestation crackdown puts beauty sourcing in spotlight amid EUDR delays
Ethical Cosmetics
UK deforestation crackdown puts beauty sourcing in spotlight amid EUDR delays
25 Jun 2026 | By Mieke Meintjes
Key takeaways
The UK is planning new rules to stop products linked to illegal deforestation from entering supply chains.
Beauty brands using palm oil derivatives, cocoa butter, paper packaging, and other forest-risk materials may face stricter traceability demands.
The proposal could push personal care companies to strengthen supplier checks or explore lab-made and palm-free ingredient alternatives.
The UK government has announced a crackdown against illegal deforestation, with upcoming rules requiring companies that sell products sourced from rainforests to prove their supply chains are not linked to deforestation. The rules could impact sourcing in the beauty industry, as forest-risk ingredients such as palm oil derivatives, cocoa butter, and paper packaging are expected to be affected.
Under the new rules, companies operating in the UK may need to prove where their key raw materials originate from, whether they were produced legally in the country of origin, and whether suppliers can provide reliable traceability data.
Beauty companies that use palm oil in their products, such as soaps, shampoos, cleansers, surfactants, emulsifiers, and emollients, may be particularly at risk.
The UK government says climate change, ecosystem deterioration, and ethical factors contributed to the push to phase out illegal deforestation from global supply chains.
According to the announcement, the UK’s consumption of consumer goods was linked to around 29,000 hectares of deforestation in 2023, and 9.4 million metric tonnes of related carbon emissions.
“We are leading by example and scrutinizing our own supply chains,” says Mary Creagh, the UK’s Nature minister. “Eliminating products linked to illegal deforestation not only helps to protect precious ecosystems but is good for our collective resilience and long-term prosperity.”
The UK’s move comes as the EU Deforestation Regulation (EUDR) continues to face delays and industry pushback over implementation complexity.
The EUDR aims to prevent products linked to deforestation from being sold in the EU. It was supposed to come into force by the end of 2024, but has been postponed multiple times. Its latest timeline pushes the first phase of implementation to December 2026. By that time, Northern Ireland will have to comply due to its dual access to the UK Internal Market and the EU Single Market.
EU alignment
The British Retail Consortium (BRC) welcomes the UK’s crackdown, but warns that it must align with the EU’s version to evade any operational complexity.
“We have long called for UK deforestation regulation as an important step in driving forest conservation across retail supply chains in line with business commitments, while supporting alignment with the EU where possible to avoid unnecessary costs and complexity for retailers and their customers,” says Andrew Opie, director of Food & Sustainability at the BRC.
“With the EU regulation due to take effect in Northern Ireland at the end of the year, it is important that the government takes a pragmatic approach to enforcement to minimize disruption for businesses and consumers.”
While alignment with the EUDR could make compliance smoother for companies operating across Great Britain, Northern Ireland, and the EU, it is unlikely to offer regulatory bliss. Businesses may still face some of the same traceability challenges and cost concerns that have delayed the EU regime.
The UK government will open a consultation later in the year where businesses, international partners, and civil society groups can comment on the details of the proposed deforestation policy. This consultation will also look at the Environment Act, which targets illegal deforestation, and the existing UK Timber Regulation.
https://www.personalcareinsights.com/news/uk-deforestation-beauty-sourcing.html
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Agropalma acquisition makes Daabon palm oil powerhouse
25-Jun-2026 by Bethan Grylls
Organic ingredients multinational Daabon has just become the largest sustainable palm oil producer in the Americas following a recent acquisition.
https://www.foodmanufacture.co.uk/Article/2026/06/25/agropalma-acquisition-makes-daabon-palm-oil-powerhouse/
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The UK's Deforestation law finally lands
DAVID BURROWS AND NICK HUGHES
As visitors to London Climate Action Week events struggle to keep cool amid record-breaking June temperatures, the UK Government has finally moved to tackle a key driver of global warming – deforestation.
After years of delay, ministers confirmed this week that new rules will be introduced to ensure everyday products sold in the UK including soy, beef, palm oil, coffee and cocoa do not contribute to illegal deforestation around the world. The government has also signalled its longer-term intention to require products to be produced free from any deforestation, not just that which is illegal.
Powers to curb illegal deforestation were originally granted under the Environment Act 2021, however the process of legislating to make it mandatory for large companies to carry out due diligence checks to ensure there is no illegal deforestation in their supply chains has been subject to numerous delays.
The impasse was broken on Tuesday when a policy paper was published setting out the UK’s approach to deforestation regulations, with the government planning to launch a consultation soon.
“Tackling global deforestation is one of the most effective ways we can address climate change and protect some of the world’s most unique and precious wildlife,” said nature minister Mary Creagh.
Campaigners welcomed the move, which many feel is long overdue. “This is a strong signal to business that supply chains need to be deforestation-free,” said Cassie Dummett, coordinator of the NGO Forest Coalition. “For too long, consumers in the UK have been buying goods that are tainted with deforestation.”
Retailers also backed the decision to legislate. “We have long called for UK deforestation regulation as an important step in driving forest conservation across retail supply chains in line with business commitments, while supporting alignment with the EU where possible to avoid unnecessary costs and complexity for retailers and their customers,” said Andrew Opie, director of food & sustainability at the BRC.
The EU is pursuing its own deforestation regulation which, although further advanced than the UK’s, has also been subject to numerous delays and revisions.
Small Bites
Farm roadmap backs nature-friendly farming
Defra has published its long-awaited 25-year farming roadmap, which aims to give farmers across England “certainty beyond the next harvest for the first time”, providing “long-term stability”. The government said the strategy will mean farmers have better access to the tools, technology, skills and supply chains they need to invest, innovate and grow. It also plans to review how the economic value of agriculture is measured by developing new supplementary statistics to include the wider food supply chain, from processing and manufacturing to distribution and retail. As rising costs and extreme weather continue to heap pressure on producers, The Farming Roadmap 2050 sets out how farmers can reduce reliance on inputs like fertiliser through new technology and smarter nutrient management, and adapt to the growing impacts of extreme weather and climate change through nature-based solutions such as improved soil health and water management. The roadmap has received a mixed response. Sustain, the alliance of food and farming organisations, welcomed the government’s recognition that nature-friendly, lower-input farming underpins long-term food security, but expressed disappointment at the “minimal rhetoric on dietary change and livestock numbers” and a plan to expand the poultry sector, which it said risks compromising targets on pollution and biodiversity.
Brands still wedded to ‘fuzzy’ green claims
In the three months to November 2025, the Advertising Standards Authority (ASA) captured 7 million online adverts served up to UK consumers. Of these, 1% included environmental claims. Hardly a big share. However, where they do appear these ads are often framed in broad or absolute terms such as ‘eco-friendly’, ‘sustainable’ or ‘carbon neutral’, said the ASA in its new pulse report. Such absolute claims require a particularly high level of substantiation, which means the “regulatory risk” is shaped less by ‘how often’ green claims appear, and more by ‘how’ they are framed. Of the 145,000 agriculture and food ads, 3,000 (2%) made an environmental claim and 95% of these were absolute claims. ‘Eco-friendly coffee’ was a particular favourite of brands; many also remain wedded to what the ASA terms “warm and fuzzy” language like ‘grass-fed’, ‘regenerative’ and ‘less plastic’. Dominic Watkins from DWF, a law firm, told Footprint that although the ASA didn’t assess whether any advertising rules had been breached, food and drink brands should understand that penalties are coming. “This research comes at a time when the Competition and Markets Authority is increasingly investigating and using its new powers under the Digital Markets Competitions and Consumers Act to issue civil sanctions. To date most have focused on pricing issues [but] it is only a matter of time before they return to sustainability issues,” Watkins added.
https://foodservicefootprint.com/deforestation-law-finally-lands/
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UK deforestation crackdown puts beauty sourcing in spotlight amid EUDR delays
Ethical Cosmetics
UK deforestation crackdown puts beauty sourcing in spotlight amid EUDR delays
25 Jun 2026 | By Mieke Meintjes
Key takeaways
The UK is planning new rules to stop products linked to illegal deforestation from entering supply chains.
Beauty brands using palm oil derivatives, cocoa butter, paper packaging, and other forest-risk materials may face stricter traceability demands.
The proposal could push personal care companies to strengthen supplier checks or explore lab-made and palm-free ingredient alternatives.
The UK government has announced a crackdown against illegal deforestation, with upcoming rules requiring companies that sell products sourced from rainforests to prove their supply chains are not linked to deforestation. The rules could impact sourcing in the beauty industry, as forest-risk ingredients such as palm oil derivatives, cocoa butter, and paper packaging are expected to be affected.
Under the new rules, companies operating in the UK may need to prove where their key raw materials originate from, whether they were produced legally in the country of origin, and whether suppliers can provide reliable traceability data.
Beauty companies that use palm oil in their products, such as soaps, shampoos, cleansers, surfactants, emulsifiers, and emollients, may be particularly at risk.
The UK government says climate change, ecosystem deterioration, and ethical factors contributed to the push to phase out illegal deforestation from global supply chains.
According to the announcement, the UK’s consumption of consumer goods was linked to around 29,000 hectares of deforestation in 2023, and 9.4 million metric tonnes of related carbon emissions.
“We are leading by example and scrutinizing our own supply chains,” says Mary Creagh, the UK’s Nature minister. “Eliminating products linked to illegal deforestation not only helps to protect precious ecosystems but is good for our collective resilience and long-term prosperity.”
The UK’s move comes as the EU Deforestation Regulation (EUDR) continues to face delays and industry pushback over implementation complexity.
The EUDR aims to prevent products linked to deforestation from being sold in the EU. It was supposed to come into force by the end of 2024, but has been postponed multiple times. Its latest timeline pushes the first phase of implementation to December 2026. By that time, Northern Ireland will have to comply due to its dual access to the UK Internal Market and the EU Single Market.
EU alignment
The British Retail Consortium (BRC) welcomes the UK’s crackdown, but warns that it must align with the EU’s version to evade any operational complexity.
“We have long called for UK deforestation regulation as an important step in driving forest conservation across retail supply chains in line with business commitments, while supporting alignment with the EU where possible to avoid unnecessary costs and complexity for retailers and their customers,” says Andrew Opie, director of Food & Sustainability at the BRC.
“With the EU regulation due to take effect in Northern Ireland at the end of the year, it is important that the government takes a pragmatic approach to enforcement to minimize disruption for businesses and consumers.”
While alignment with the EUDR could make compliance smoother for companies operating across Great Britain, Northern Ireland, and the EU, it is unlikely to offer regulatory bliss. Businesses may still face some of the same traceability challenges and cost concerns that have delayed the EU regime.
The UK government will open a consultation later in the year where businesses, international partners, and civil society groups can comment on the details of the proposed deforestation policy. This consultation will also look at the Environment Act, which targets illegal deforestation, and the existing UK Timber Regulation.
https://www.personalcareinsights.com/news/uk-deforestation-beauty-sourcing.html
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Agropalma acquisition makes Daabon palm oil powerhouse
25-Jun-2026 by Bethan Grylls
Organic ingredients multinational Daabon has just become the largest sustainable palm oil producer in the Americas following a recent acquisition.
https://www.foodmanufacture.co.uk/Article/2026/06/25/agropalma-acquisition-makes-daabon-palm-oil-powerhouse/
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UK to Tighten Deforestation Rules for Coffee, Cocoa, Soy and Palm Oil Supply Chains
The measures, confirmed during London Climate Action Week, will target commodities often grown in rainforest regions. These include soy, palm oil, cocoa and rubber. They are widely used in chocolate, cooking oils, shampoo, cosmetics and other consumer goods.
Under the proposals, businesses in Great Britain that trade in these commodities will need to conduct checks across their supply chains. The aim is to prove their products are not linked to illegal forest clearance.
The government plans to use powers in the Environment Act. It also intends to strengthen the UK Timber Regulation. A formal consultation with businesses, civil society and international partners will follow later this year.
For companies, the message is clear. Voluntary action is no longer enough to manage deforestation risk across complex global supply chains.
Why the Rules Matter for Climate and NatureForests remain central to climate stability, carbon storage and biodiversity protection. Yet agricultural expansion continues to drive most forest loss worldwide.
Around 90% of global deforestation is linked to agricultural expansion. Much of that is tied to commodities traded internationally.
In 2023, UK consumption of these goods was associated with about 29,000 hectares of deforestation worldwide. That is around one and a half times the size of Manchester. It was also linked to 9.4 million tonnes of carbon emissions.
The proposed rules seek to reduce that footprint by forcing greater traceability. They will also give consumers more confidence that supermarket products are not connected to illegal forest destruction.
Nature Minister Mary Creagh said: “Tackling global deforestation is one of the most effective ways we can address climate change and protect some of the world’s most unique and precious wildlife.
That is why we are leading by example and scrutinising our own supply chains. Eliminating products linked to illegal deforestation not only helps to protect precious ecosystems but is good for our collective resilience and long-term prosperity.”
https://esgnews.com/uk-to-tighten-deforestation-rules-for-coffee-cocoa-soy-and-palm-oil-supply-chains/
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UK Government moves forward on long-delayed action to tackle imported deforestation
The UK Government has announced plans to finally move forward with long-delayed regulations aimed at preventing products linked to illegal deforestation from entering UK supply chains, marking a significant step towards reducing the UK’s global forest footprint.
EIA welcomes the Government’s announcement on 23 June, made during London Climate Action Week, confirming the recognition of the crucial role forests play in mitigating climate change.
According to DEFRA, UK consumption of forest-risk commodities was linked to about 29,000 hectares of deforestation and 9.4 million tonnes of associated carbon emissions in 2023.
A new public consultation will be launched on the details of mandatory due diligence requirements for businesses trading in forest-risk commodities, using powers under the Environment Act 2021 alongside reforms to the UK Timber Regulation (wood products have been regulated since 2013).
The Government confirmed that the EU Deforestation Regulation (EUDR) will apply in Northern Ireland from 30 December 2026 and indicated it intends to align Great Britain’s regime with key elements of the EUDR.
After years of campaigning, the Government has signalled a shift towards much broader commodity scope than the previous Government proposed more than five years ago. In alignment with EIA’s asks, products expected to be covered now include cattle, cocoa, coffee, palm oil, rubber and soy, as well as certain derived products such as chocolate.
Crucially, the UK has confirmed mandatory geolocation requirements, a particularly important development. EIA has long emphasised that without knowing where commodities are produced, it is impossible to effectively assess legality, deforestation risk or compliance.
It has also proposed a £1 million turnover threshold for companies in scope, a significant improvement on previous proposals of £50 million which would have left most relevant businesses outside scope,
The Government further indicated ambition to move beyond a legality-based approach and, over time, to transition towards a deforestation-free standard, as in the EUDR.
Members of the UK NGO Forest Coalition, including EIA, and MPs from the All-Party Parliamentary Group on Global Deforestation said the commitments represent important progress after years of delay and reflect several long-standing recommendations from civil society, businesses and investors.
EIA Forests Advocacy and Policy Campaign Lead Vanessa Richardson said: “The Government’s own national security assessment shows that deforestation is not just an environmental issue, but a direct threat to the UK’s economic stability and food security.
“After years of delay, this announcement is a welcome step. To match the scale of the risk, the UK now needs robust mandatory regulation, underpinned by full supply chain traceability and enforcement that is properly resourced to be effective.”
While the announcement marks significant progress, the focus must now be on moving commitments into law. After nearly five years of delay since the passage of the Environment Act 2021, the UK can no longer afford to wait.
The public consultation is expected later this year and EIA will be closely analysing the proposals and engaging to ensure the final regulations deliver meaningful reductions in the UK’s contribution to global deforestation and human rights abuses.
What is needed now is a robust law, brought into force as quickly as possible.
https://eia-international.org/news/uk-government-moves-forward-on-long-delayed-action-to-tackle-imported-deforestation/
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UK Government announces proposals for long-awaited illegal deforestation regulation
By Sidhi Mittal
The plans were first announced in 2021 as part of the Environment Act. After a five-year delay, the first set of proposals has finally been published.
Under the proposals, UK businesses that trade in commodities sourced from rainforests such as soy, palm oil, cocoa and rubber will need to guarantee that their imported products are not linked to illegal deforestation and land clearing.
The Government has said that it will consult businesses, civil society and international partners later this year on the details of the proposed deforestation policy.
The legislation is likely to build on the Environment Act, which targets illegal deforestation, and the existing UK Timber Regulation. Further details on the consultation will be announced in due course.
Rainforests and other forests are essential for storing carbon and sustaining biodiversity; however, they are increasingly threatened by deforestation.
In 2023, the UK’s consumption of goods was associated with approximately 29,000 hectares of deforestation worldwide – around one and a half times the size of Manchester – and 9.4 million tonnes of related carbon emissions.
The new rules will aim to help deliver on the UK’s commitment under the Glasgow Leaders’ Declaration on Forests and Land Use, agreed at COP26, to halt and reverse forest loss and land degradation by 2030
Nature Minister Mary Creagh said: “Tackling global deforestation is one of the most effective ways we can address climate change and protect some of the world’s most unique and precious wildlife.
“That is why we are leading by example and scrutinising our own supply chains. Eliminating products linked to illegal deforestation not only helps to protect precious ecosystems but is good for our collective resilience and long-term prosperity.”
Interoperability with the EUDR
The EU has its own deforestation regulation, called the European Union Deforestation Regulation (EUDR), which mandates that products derived from beef, cocoa, coffee, palm oil, natural rubber, soy, or wood must be “deforestation-free” and legally produced to be placed on the EU market.
The regulation is set to come into force on 30 December 2026 for large businesses and 30 June 2027 for small firms.
To maintain Northern Ireland’s unique dual market access to both the UK Internal Market and the EU Single Market, the EUDR will apply in Northern Ireland in phases starting 30 December 2026.
The Government has confirmed that the upcoming consultation will propose that the deforestation rules for Great Britain cover the same core commodities and underlying information requirements as the regulation in Northern Ireland, in a bid to streamline compliance.
Global Witness’ deputy director Alexandria Reid said: “The UK Government’s terminal delay in introducing this law has fanned the flames of global forest destruction, helping drive forest peoples and some species further towards the brink of collapse.
“To make a dent in global deforestation rates, the Government needs to demand full traceability information from businesses and extend the law to cover all deforestation – regardless of legality – as soon as possible.
“MPs must use this opportunity to extend due diligence to financial actors too.”
Related article: Most finance giants ignore deforestation risk, report finds
WWF’s director of advocacy Gavin Crowden said: “The UK Government has warned that the collapse of tropical forests in places like the Amazon and Indonesia is a national security risk, not just an environmental one.
“We rely on these forests for food and climate stability, and they’re home to extraordinary wildlife.
“With new rules finally coming into force in Northern Ireland at the end of the year, there is no excuse for further delay that would leave shoppers in the rest of the UK still unwittingly driving the destruction of the rainforest.”
https://www.edie.net/government-announces-proposals-for-long-awaited-illegal-deforestation-regulation/?amp=true
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UK Revives Dormant Anti-Deforestation Plan, Includes Coffee
Daily Coffee News Staff | June 23, 2026
The UK government announced today that it plans to move forward with mandatory supply chain due diligence rules in Great Britain, requiring businesses to check that certain agricultural goods, including coffee, are not linked to illegal deforestation.
The announcement, made June 23 during London Climate Action Week by UK Nature Minister Mary Creagh, follows years of inaction on a law that has been waiting for implementation since 2021.
The government plans to use powers under Schedule 17 of the Environment Act 2021 to implement a Forest Risk Commodities scheme for Great Britain, alongside strengthening the existing UK Timber Regulation. It plans to launch a formal consultation with businesses, civil society and international partners later this year before introducing secondary legislation. No enforcement date has been set.
The government said it is committed to aligning Great Britain with the “same core commodities and underlying information requirements” as the EU Deforestation Regulation (EUDR), which covers cattle, cocoa, coffee, palm oil, rubber, soy and wood.
Unlike EUDR, which applies regardless of whether deforestation was legal under producer-country laws, the proposed UK rules would cover only “illegal” deforestation. EUDR is scheduled to apply in Northern Ireland for large and medium operators beginning Dec. 30, 2026, following two years of EU-level delays.
Coffee production has long been associated with tropical deforestation, driven largely by demand from consuming countries in the global north, like the UK. One recent study found that coffee accounts for approximately 1% of agriculture-driven deforestation globally.
A more recent report from the watchdog group Coffee Watch tracked spreading deforestation in Vietnam’s Central Highlands, a region that produces a significant share of the robusta used for espresso in the UK and European nations.
Meanwhile, an April 2026 Forest 500 report found that just 47% of some of the world’s most well-known coffee companies had published any type of public deforestation-free commitment for coffee.
According to recent USDA Foreign Agricultural Service estimates, the UK imported 2.4 million 60-kilogram bags of green coffee in the 2024/25 market year. For comparison, that’s roughly 10% of the U.S. green coffee import market by volume.
https://dailycoffeenews.com/2026/06/23/uk-revives-dormant-anti-deforestation-plan-includes-coffee/
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Policy paper The UK’s approach to deforestation regulations
Published 23 June 2026
The government is strengthening the approach to tackling deforestation across the UK.
At COP26, the UK committed to stop and reverse forest loss and land degradation by 2030. Healthy forests are essential to climate stability, sustainable economic growth and the livelihoods of communities at home and abroad. Protecting and restoring these ecosystems strengthens our collective resilience, allowing us to secure supply chains, food and water resources, and long-term prosperity.
A mandatory due diligence framework for timber has been in place across the UK since 2013. We now intend to build upon these to further decouple UK consumption from global deforestation.
Approach to deforestation in Great Britain We aim to introduce regulations including under the Environment Act 2021, alongside legislation that will strengthen the UK Timber Regulation (UKTR). The government will consult businesses, civil society and international partners on the substance of the proposed Great Britain (GB) deforestation policy.
We aim to require businesses in GB with an annual turnover of over £1 million, that use forest risk commodities and wood products, to carry out due diligence to ensure these are produced in compliance with relevant local laws.
These requirements are intended to apply to:
We aim to make sure these measures operate consistently alongside the EU Regulation on Deforestation-free Products (EUDR), so as to support the government’s commitment to protect the UK internal market and support export-led growth. We also aim to achieve due diligence consistency for businesses working in both the UK internal market and EU single market.
The aim is that the information GB businesses must hold will be broadly the same as what is needed for a due diligence statement when exporting to the EU or moving goods to Northern Ireland under the EUDR.
It is expected that legislation to implement this regime in Great Britain should be delivered in 2027.
We aim to strengthen action on illegal deforestation in supply chains, while supporting economic growth and international climate and nature objectives. In due course we intend to move towards a deforestation-free standard.
Tackling deforestation in Northern Ireland The EUDR will apply in Northern Ireland as part of arrangements which ensure Northern Ireland’s unique access to the EU single market is maintained.
Access to the EU single market is particularly vital to Northern Ireland’s agricultural sector, which relies on privileged access to cross-border supply and processing facilities on the island of Ireland. At the same time, the government’s confirmation that it will deliver an approach that operates consistently alongside the EUDR in Great Britain provides assurance that the UK internal market is also protected. This ensures the dual market access upon which Northern Ireland businesses depend is maintained.
Our aim in Great Britain is to ensure aspects of the scope and information requirements are broadly the same as those of the EUDR. This is to reduce regulatory divergence between Great Britain and Northern Ireland and support trade with the EU. It is our intention that the due diligence requirements in Great Britain will require businesses to hold similar information as under the EUDR, avoiding duplication of business burdens and disincentives to trade.
The EUDR will introduce new rules to reduce the consumption in the EU of products that contribute to deforestation or forest degradation worldwide. It will repeal the EU Timber Regulation and regulate key commodities linked to deforestation:
UK businesses operations in Northern Ireland UK businesses operating within the EU or placing relevant products on the EU or Northern Ireland markets will have to comply with the EUDR.
Large and medium operators will need to follow these new rules from 30 December 2026.
Micro and small operators will need to follow EUDR rules from 30 December 2026 for wood products currently regulated under the EU Timber Regulation, and from 30 June 2027 for all other relevant products.
First placers (those that first make goods available for sale) on the market must ensure goods are accompanied by a due diligence statement, while downstream businesses are subject to reduced requirements. See which category your business falls into by checking Article 3 of this directive (for example, whether you are an operator or a downstream business).
We will provide further specific guidance on movements from Great Britain to Northern Ireland as soon as possible.
Before the EUDR applies to your business, you should prepare your supply chain to come into compliance with EUDR as soon as possible. If you need additional support to prepare for these new arrangements, contact either:
Further guidance on EUDR compliance, including an overview of how obligations apply depending on business type, size and position in the supply chain, is also available.
The country risk classification rules explain how countries are classified as low, standard, or high risk for deforestation. The UK is classed as a low-risk country, which means operators can benefit from simplified due diligence requirements for goods produced in GB and exported to the EU or moved to Northern Ireland.
The Office for Product Safety and Standards (OPSS), and Northern Ireland’s Department of Agriculture, Environment and Rural Affairs (DAERA) will act as Competent Authorities:
If you have any questions about this announcement, email [email protected].
- UK consumption of forest-risk commodities was linked to about 29,000 hectares of global deforestation in 2023.
- Proposed rules will require businesses in Great Britain to prove key supply chains are not linked to illegal deforestation.
- The UK plans to align core requirements with Northern Ireland’s phased EUDR regime to reduce duplication and support EU trade.
The measures, confirmed during London Climate Action Week, will target commodities often grown in rainforest regions. These include soy, palm oil, cocoa and rubber. They are widely used in chocolate, cooking oils, shampoo, cosmetics and other consumer goods.
Under the proposals, businesses in Great Britain that trade in these commodities will need to conduct checks across their supply chains. The aim is to prove their products are not linked to illegal forest clearance.
The government plans to use powers in the Environment Act. It also intends to strengthen the UK Timber Regulation. A formal consultation with businesses, civil society and international partners will follow later this year.
For companies, the message is clear. Voluntary action is no longer enough to manage deforestation risk across complex global supply chains.
Why the Rules Matter for Climate and NatureForests remain central to climate stability, carbon storage and biodiversity protection. Yet agricultural expansion continues to drive most forest loss worldwide.
Around 90% of global deforestation is linked to agricultural expansion. Much of that is tied to commodities traded internationally.
In 2023, UK consumption of these goods was associated with about 29,000 hectares of deforestation worldwide. That is around one and a half times the size of Manchester. It was also linked to 9.4 million tonnes of carbon emissions.
The proposed rules seek to reduce that footprint by forcing greater traceability. They will also give consumers more confidence that supermarket products are not connected to illegal forest destruction.
Nature Minister Mary Creagh said: “Tackling global deforestation is one of the most effective ways we can address climate change and protect some of the world’s most unique and precious wildlife.
That is why we are leading by example and scrutinising our own supply chains. Eliminating products linked to illegal deforestation not only helps to protect precious ecosystems but is good for our collective resilience and long-term prosperity.”
https://esgnews.com/uk-to-tighten-deforestation-rules-for-coffee-cocoa-soy-and-palm-oil-supply-chains/
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UK Government moves forward on long-delayed action to tackle imported deforestation
The UK Government has announced plans to finally move forward with long-delayed regulations aimed at preventing products linked to illegal deforestation from entering UK supply chains, marking a significant step towards reducing the UK’s global forest footprint.
EIA welcomes the Government’s announcement on 23 June, made during London Climate Action Week, confirming the recognition of the crucial role forests play in mitigating climate change.
According to DEFRA, UK consumption of forest-risk commodities was linked to about 29,000 hectares of deforestation and 9.4 million tonnes of associated carbon emissions in 2023.
A new public consultation will be launched on the details of mandatory due diligence requirements for businesses trading in forest-risk commodities, using powers under the Environment Act 2021 alongside reforms to the UK Timber Regulation (wood products have been regulated since 2013).
The Government confirmed that the EU Deforestation Regulation (EUDR) will apply in Northern Ireland from 30 December 2026 and indicated it intends to align Great Britain’s regime with key elements of the EUDR.
After years of campaigning, the Government has signalled a shift towards much broader commodity scope than the previous Government proposed more than five years ago. In alignment with EIA’s asks, products expected to be covered now include cattle, cocoa, coffee, palm oil, rubber and soy, as well as certain derived products such as chocolate.
Crucially, the UK has confirmed mandatory geolocation requirements, a particularly important development. EIA has long emphasised that without knowing where commodities are produced, it is impossible to effectively assess legality, deforestation risk or compliance.
It has also proposed a £1 million turnover threshold for companies in scope, a significant improvement on previous proposals of £50 million which would have left most relevant businesses outside scope,
The Government further indicated ambition to move beyond a legality-based approach and, over time, to transition towards a deforestation-free standard, as in the EUDR.
Members of the UK NGO Forest Coalition, including EIA, and MPs from the All-Party Parliamentary Group on Global Deforestation said the commitments represent important progress after years of delay and reflect several long-standing recommendations from civil society, businesses and investors.
EIA Forests Advocacy and Policy Campaign Lead Vanessa Richardson said: “The Government’s own national security assessment shows that deforestation is not just an environmental issue, but a direct threat to the UK’s economic stability and food security.
“After years of delay, this announcement is a welcome step. To match the scale of the risk, the UK now needs robust mandatory regulation, underpinned by full supply chain traceability and enforcement that is properly resourced to be effective.”
While the announcement marks significant progress, the focus must now be on moving commitments into law. After nearly five years of delay since the passage of the Environment Act 2021, the UK can no longer afford to wait.
The public consultation is expected later this year and EIA will be closely analysing the proposals and engaging to ensure the final regulations deliver meaningful reductions in the UK’s contribution to global deforestation and human rights abuses.
What is needed now is a robust law, brought into force as quickly as possible.
https://eia-international.org/news/uk-government-moves-forward-on-long-delayed-action-to-tackle-imported-deforestation/
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UK Government announces proposals for long-awaited illegal deforestation regulation
By Sidhi Mittal
The plans were first announced in 2021 as part of the Environment Act. After a five-year delay, the first set of proposals has finally been published.
Under the proposals, UK businesses that trade in commodities sourced from rainforests such as soy, palm oil, cocoa and rubber will need to guarantee that their imported products are not linked to illegal deforestation and land clearing.
The Government has said that it will consult businesses, civil society and international partners later this year on the details of the proposed deforestation policy.
The legislation is likely to build on the Environment Act, which targets illegal deforestation, and the existing UK Timber Regulation. Further details on the consultation will be announced in due course.
Rainforests and other forests are essential for storing carbon and sustaining biodiversity; however, they are increasingly threatened by deforestation.
In 2023, the UK’s consumption of goods was associated with approximately 29,000 hectares of deforestation worldwide – around one and a half times the size of Manchester – and 9.4 million tonnes of related carbon emissions.
The new rules will aim to help deliver on the UK’s commitment under the Glasgow Leaders’ Declaration on Forests and Land Use, agreed at COP26, to halt and reverse forest loss and land degradation by 2030
Nature Minister Mary Creagh said: “Tackling global deforestation is one of the most effective ways we can address climate change and protect some of the world’s most unique and precious wildlife.
“That is why we are leading by example and scrutinising our own supply chains. Eliminating products linked to illegal deforestation not only helps to protect precious ecosystems but is good for our collective resilience and long-term prosperity.”
Interoperability with the EUDR
The EU has its own deforestation regulation, called the European Union Deforestation Regulation (EUDR), which mandates that products derived from beef, cocoa, coffee, palm oil, natural rubber, soy, or wood must be “deforestation-free” and legally produced to be placed on the EU market.
The regulation is set to come into force on 30 December 2026 for large businesses and 30 June 2027 for small firms.
To maintain Northern Ireland’s unique dual market access to both the UK Internal Market and the EU Single Market, the EUDR will apply in Northern Ireland in phases starting 30 December 2026.
The Government has confirmed that the upcoming consultation will propose that the deforestation rules for Great Britain cover the same core commodities and underlying information requirements as the regulation in Northern Ireland, in a bid to streamline compliance.
Global Witness’ deputy director Alexandria Reid said: “The UK Government’s terminal delay in introducing this law has fanned the flames of global forest destruction, helping drive forest peoples and some species further towards the brink of collapse.
“To make a dent in global deforestation rates, the Government needs to demand full traceability information from businesses and extend the law to cover all deforestation – regardless of legality – as soon as possible.
“MPs must use this opportunity to extend due diligence to financial actors too.”
Related article: Most finance giants ignore deforestation risk, report finds
WWF’s director of advocacy Gavin Crowden said: “The UK Government has warned that the collapse of tropical forests in places like the Amazon and Indonesia is a national security risk, not just an environmental one.
“We rely on these forests for food and climate stability, and they’re home to extraordinary wildlife.
“With new rules finally coming into force in Northern Ireland at the end of the year, there is no excuse for further delay that would leave shoppers in the rest of the UK still unwittingly driving the destruction of the rainforest.”
https://www.edie.net/government-announces-proposals-for-long-awaited-illegal-deforestation-regulation/?amp=true
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UK Revives Dormant Anti-Deforestation Plan, Includes Coffee
Daily Coffee News Staff | June 23, 2026
The UK government announced today that it plans to move forward with mandatory supply chain due diligence rules in Great Britain, requiring businesses to check that certain agricultural goods, including coffee, are not linked to illegal deforestation.
The announcement, made June 23 during London Climate Action Week by UK Nature Minister Mary Creagh, follows years of inaction on a law that has been waiting for implementation since 2021.
The government plans to use powers under Schedule 17 of the Environment Act 2021 to implement a Forest Risk Commodities scheme for Great Britain, alongside strengthening the existing UK Timber Regulation. It plans to launch a formal consultation with businesses, civil society and international partners later this year before introducing secondary legislation. No enforcement date has been set.
The government said it is committed to aligning Great Britain with the “same core commodities and underlying information requirements” as the EU Deforestation Regulation (EUDR), which covers cattle, cocoa, coffee, palm oil, rubber, soy and wood.
Unlike EUDR, which applies regardless of whether deforestation was legal under producer-country laws, the proposed UK rules would cover only “illegal” deforestation. EUDR is scheduled to apply in Northern Ireland for large and medium operators beginning Dec. 30, 2026, following two years of EU-level delays.
Coffee production has long been associated with tropical deforestation, driven largely by demand from consuming countries in the global north, like the UK. One recent study found that coffee accounts for approximately 1% of agriculture-driven deforestation globally.
A more recent report from the watchdog group Coffee Watch tracked spreading deforestation in Vietnam’s Central Highlands, a region that produces a significant share of the robusta used for espresso in the UK and European nations.
Meanwhile, an April 2026 Forest 500 report found that just 47% of some of the world’s most well-known coffee companies had published any type of public deforestation-free commitment for coffee.
According to recent USDA Foreign Agricultural Service estimates, the UK imported 2.4 million 60-kilogram bags of green coffee in the 2024/25 market year. For comparison, that’s roughly 10% of the U.S. green coffee import market by volume.
https://dailycoffeenews.com/2026/06/23/uk-revives-dormant-anti-deforestation-plan-includes-coffee/
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Policy paper The UK’s approach to deforestation regulations
Published 23 June 2026
The government is strengthening the approach to tackling deforestation across the UK.
At COP26, the UK committed to stop and reverse forest loss and land degradation by 2030. Healthy forests are essential to climate stability, sustainable economic growth and the livelihoods of communities at home and abroad. Protecting and restoring these ecosystems strengthens our collective resilience, allowing us to secure supply chains, food and water resources, and long-term prosperity.
A mandatory due diligence framework for timber has been in place across the UK since 2013. We now intend to build upon these to further decouple UK consumption from global deforestation.
Approach to deforestation in Great Britain We aim to introduce regulations including under the Environment Act 2021, alongside legislation that will strengthen the UK Timber Regulation (UKTR). The government will consult businesses, civil society and international partners on the substance of the proposed Great Britain (GB) deforestation policy.
We aim to require businesses in GB with an annual turnover of over £1 million, that use forest risk commodities and wood products, to carry out due diligence to ensure these are produced in compliance with relevant local laws.
These requirements are intended to apply to:
- wood
- cattle
- cocoa
- coffee
- palm oil
- rubber
- soy
- certain derived products like chocolate and furniture
We aim to make sure these measures operate consistently alongside the EU Regulation on Deforestation-free Products (EUDR), so as to support the government’s commitment to protect the UK internal market and support export-led growth. We also aim to achieve due diligence consistency for businesses working in both the UK internal market and EU single market.
The aim is that the information GB businesses must hold will be broadly the same as what is needed for a due diligence statement when exporting to the EU or moving goods to Northern Ireland under the EUDR.
It is expected that legislation to implement this regime in Great Britain should be delivered in 2027.
We aim to strengthen action on illegal deforestation in supply chains, while supporting economic growth and international climate and nature objectives. In due course we intend to move towards a deforestation-free standard.
Tackling deforestation in Northern Ireland The EUDR will apply in Northern Ireland as part of arrangements which ensure Northern Ireland’s unique access to the EU single market is maintained.
Access to the EU single market is particularly vital to Northern Ireland’s agricultural sector, which relies on privileged access to cross-border supply and processing facilities on the island of Ireland. At the same time, the government’s confirmation that it will deliver an approach that operates consistently alongside the EUDR in Great Britain provides assurance that the UK internal market is also protected. This ensures the dual market access upon which Northern Ireland businesses depend is maintained.
Our aim in Great Britain is to ensure aspects of the scope and information requirements are broadly the same as those of the EUDR. This is to reduce regulatory divergence between Great Britain and Northern Ireland and support trade with the EU. It is our intention that the due diligence requirements in Great Britain will require businesses to hold similar information as under the EUDR, avoiding duplication of business burdens and disincentives to trade.
The EUDR will introduce new rules to reduce the consumption in the EU of products that contribute to deforestation or forest degradation worldwide. It will repeal the EU Timber Regulation and regulate key commodities linked to deforestation:
- wood
- cattle
- cocoa
- coffee
- palm oil
- rubber
- soy
- certain derived products like chocolate and furniture
UK businesses operations in Northern Ireland UK businesses operating within the EU or placing relevant products on the EU or Northern Ireland markets will have to comply with the EUDR.
Large and medium operators will need to follow these new rules from 30 December 2026.
Micro and small operators will need to follow EUDR rules from 30 December 2026 for wood products currently regulated under the EU Timber Regulation, and from 30 June 2027 for all other relevant products.
First placers (those that first make goods available for sale) on the market must ensure goods are accompanied by a due diligence statement, while downstream businesses are subject to reduced requirements. See which category your business falls into by checking Article 3 of this directive (for example, whether you are an operator or a downstream business).
We will provide further specific guidance on movements from Great Britain to Northern Ireland as soon as possible.
Before the EUDR applies to your business, you should prepare your supply chain to come into compliance with EUDR as soon as possible. If you need additional support to prepare for these new arrangements, contact either:
- Defra at [email protected]
- HMRC at [email protected]
Further guidance on EUDR compliance, including an overview of how obligations apply depending on business type, size and position in the supply chain, is also available.
The country risk classification rules explain how countries are classified as low, standard, or high risk for deforestation. The UK is classed as a low-risk country, which means operators can benefit from simplified due diligence requirements for goods produced in GB and exported to the EU or moved to Northern Ireland.
The Office for Product Safety and Standards (OPSS), and Northern Ireland’s Department of Agriculture, Environment and Rural Affairs (DAERA) will act as Competent Authorities:
- OPSS will act as Competent Authority for rubber and wood products
- DAERA will act as Competent Authority for palm oil, soy, cocoa, cattle and coffee
If you have any questions about this announcement, email [email protected].
June 23, 2026
Sustainability rhetoric vs. economic reality: Can we square the circle?
Global economic shocks and climate volatility are no longer temporary disruptions; they are structural crises deeply embedded in our strained natural systems. For resource-rich nations like Indonesia, surviving the next shock requires rewriting the global incentive structure to value nature on the national balance sheet and fairly compensate the smallholders on the front lines.
The recent military escalation in the Middle East has shown, once again, how quickly shocks travel through the global economy and across markets, and are felt locally. Net oil importers suffered fiscal pressures, while increasing fertilizer prices will ultimately raise food prices almost everywhere. For the poorest households, which spend most of their income on essentials like food, it translated into an affordability shock almost overnight.
These episodes are often treated as temporary disruptions, but they reflect something deeper and structural. Around 90 percent of people globally live with degraded land, polluted air, or water stress—evidence that shocks occur within already strained systems. Food systems, energy systems and ecosystems are deeply interconnected. When one is stressed, effects cascade across the others.
The health of the “next crop” illustrates these systemic linkages. If costly fertilizer remains out-of-reach for small farmers, output falls and incomes suffer. Yet, overuse elsewhere is already eroding productivity: half of global food supply is produced in areas where nitrogen use reduces yields, while pollution costs reach up to US$3.4 trillion annually. Resilience, then, is not just about shock response, but whether the underlying production systems and natural resources remain viable over time.
For much of modern history, economic growth has paralleled environmental harm. Today, developing countries face a steeper challenge: grow, create jobs and protect nature simultaneously. This reflects a structural reality: economic activity is embedded in natural systems—land, water and air—and cannot replace them when they degrade. Is there an industrial country that has managed its industrialization process without placing significant strain on its natural resource base?
Climate volatility, biodiversity loss and ecosystem degradation are already undermining productivity, supply chains and livelihoods. The degradation of ecosystem services alone could cost the global economy up to $2.7 trillion annually by 2030. For Indonesia, the risk is particularly material as around a third of its GDP depends on nature linked sectors.
Recent evidence points to forest and ecosystem loss affecting rainfall, agricultural productivity and growth, with some countries already experiencing measurable GDP losses through disrupted water cycles. At the same time, investments in adaptation and resilience deliver strong returns, generating more than $10 in benefits for every dollar invested.
These realities are pushing nature and climate concerns to the forefront of public policy and decision-making. Pathways to economic growth without environmental harm exist, but not everywhere.
Why have economic systems been so slow to change, and why have production, consumption, and finance not followed suit? Is this a question of political constraint, or do underlying incentives continue to reinforce growth patterns that harm the very foundations of our lives?
The answer lies less in any single villain than in the structure of incentives. The gains from today’s patterns are concentrated and immediate, while the costs are diffuse and deferred, which is part of why correction keeps stalling.
The “trade-off’ tensions are particularly visible in global commodity and food systems, where agriculture, trade, and finance intersect. Production continues to be supported by subsidies across agriculture, energy, water and land use, amounting to roughly $2.4 trillion each year. Consumption is guided by price.
Yet environmental costs remain largely unpriced, allowing ecologically harmful goods with limited traceability to remain competitive. Financing flows reinforce these patterns, with around $7.3 trillion directed annually toward activities that deplete natural systems.
Ultimately, this is not only about protecting natural assets, but about human security and sustained progress. For countries like Indonesia, rich in natural capital, this means bringing nature and climate risks onto the balance sheet and into national accounts.
From palm oil and coffee in Sumatra to cacao in Sulawesi, over 40 million people sit at the center of global supply chains. They are expected to manage climate risks, meet evolving sustainability standards—many set in high-income consumer markets such as the EU’s new deforestation rules—and remain competitive, often with limited access to finance, technology and markets.
The imbalance is stark. Smallholder farmers who underpin these sectors operate on thin margins, bearing most of the risk while capturing only a fraction of value. In oil palm, for example, smallholders capture only around 6 percent of the value in a $280 billion global industry, while downstream firms retain roughly two-thirds of profits.
Encouraging examples show this dynamic can shift. Vietnam's coffee sector has combined productivity gains with value addition, including recent strides in traceability to access higher-value markets. Costa Rica has aligned conservation, tourism and payments for ecosystem services showing that growth and environmental recovery can reinforce one another. These models are not perfect, but they demonstrate that sustainability is more likely to endure when it strengthens incomes and livelihoods.
These examples point to three broader shifts.
First, sustainability must translate into economic opportunity. For producers, especially smallholders, this means access to finance, technology and extension services, alongside pathways into higher-value markets so countries are not locked into low-value production stages.
Second, incentives must be realigned. Repurposing subsidies and redirecting investment toward more resilient production systems can deliver steadier income streams. This is rarely painless, since those who depend on existing subsidies tend to resist, which is part of why reform so often stalls. Crucially, financing must reach both ends: affordable credit, insurance and working capital for smallholders alongside long-term investment in processing, infrastructure and industrial upgrading that accounts for environmental costs.
Third, we must decide who bears the cost of transforming how we grow, produce and consume without further destabilizing the natural ecosystems that underpin life on the planet. For some countries in Asia-Pacific, the trade-offs may be less binding than it first appears, given the chance to build cleaner systems before high-carbon infrastructure locks in.
Developing countries continue to face higher borrowing costs and tighter fiscal space, reflecting deeper asymmetries in the global financial architecture. Much of the available finance focuses on derisking capital without lowering financing costs or enabling transformative change.
Despite growing commitments on climate and biodiversity finance, actual flows remain far below what is needed. If nature’s wealth is reflected on balance sheets, it can attract more predictable and concessional financing. Countries like Indonesia would enter negotiations with stronger leverage, backed by natural assets of global significance.
The next shock—whether geopolitical, zoonotic, climatic or economic—is not a question of if, but when. How we respond will depend on today’s choices: whether we continue to reward short-term gains or invest in a model of growth that works across the economic–nature–climate arc—one that strengthens the resilience of economies while sustaining the natural systems on which long-term prosperity depends.
***
Writer: Kanni Wignaraja and Sara Ferrer Olivella
Kanni Wignaraja is United Nations assistant secretary-general and UNDP regional director for Asia and the Pacific based in New York, United States. Sara Ferrer Olivella is the resident representative of UNDP Indonesia based in Jakarta.
https://www.undp.org/indonesia/news/sustainability-rhetoric-vs-economic-reality-can-we-square-circle
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UK imports linked to deforestation the size of Leeds since government delay
A nearly-five year delay in passing UK deforestation regulations saw imports linked to over 54,000 hectares of tropical deforestation, Global Witness analysis finds, as the UK announces possible alignment with EU rules
The UK government today announced its intention to apply the EU’s deforestation regulation (“EUDR”) in Northern Ireland, a big advance towards ending the UK's contribution to deforestation and linked human rights abuses.
Ministers have said they will consult this year on aligning all UK trade rules with the EU’s regime, which requires companies to demonstrate that products sold on the market are free from deforestation and forest degradation, and comply with human rights protections in the countries where they are produced.
The announcement today is a step towards long-awaited rules on banning the use of goods linked to illegal deforestation in the UK.
The UK’s own deforestation legislation, part of the UK Environment Act, was passed in 2021, and we have been waiting for the details of the regime needed for it to enter into force since then.
Unlike the EU’s regime, the UK Environment Act only applies to goods produced on illegally deforested land – although ministers say they will consider options to extend it to all deforested land.
Swift UK-wide alignment with the EU’s rules is essential, as demonstrated by new Global Witness analysis, which finds that the UK’s directly imported commodities have been linked to over 54,000 hectares (ha) of deforestation during the delay since 2021. These 54,000 ha represent a deforestation footprint equal to the size of Leeds.
The new figures linked to just seven commodities directly imported to the UK between November 2021 – when the legislation was first published – and February 2026. The commodities analysed were the same as those covered by the EU regime: palm oil, cocoa, soya, coffee, rubber and the cattle products beef and leather (with the exception of timber and wood products).
https://globalwitness.org/en/campaigns/forests/uk-imports-linked-to-deforestation-the-size-of-leeds-since-government-delay/
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British Government steps up action to tackle illegal deforestation
New rules will ensure everyday products sold in the UK including coffee and cocoa do not contribute to illegal deforestation around the world
From: Department for Environment, Food & Rural Affairs and Mary Creagh CBE MP
Published 23 June 2026
The world’s rainforests are to be better protected from deforestation as the government will confirm today (Tuesday 23 June), during London Climate Action Week, that plans to take forward new rules in Great Britain including using powers in the Environment Act alongside legislation strengthening the UK Timber Regulation.
Under the proposals UK businesses who trade in commodities sourced from rainforests such as soy, palm oil, cocoa and rubber will need to check that their supply chains are not contributing to illegal deforestation. These products are commonly found in everyday supermarket products including chocolate, cooking oils, shampoo and cosmetics.
UK companies have been at the forefront of global efforts to tackle deforestation within their supply chains, but voluntary action alone cannot tackle this global challenge, and several major supermarkets have been calling for stronger regulation.
This move will protect the habitats of some of the world’s most precious and endangered species, while giving British consumers confidence that the products in their shopping baskets are not contributing to illegal deforestation.
Rainforests and other forests are vital for storing carbon and sustaining biodiversity, yet they are increasingly threatened by deforestation. Around 90% of global deforestation is driven by agricultural expansion, much of it linked to the production of internationally traded commodities. In 2023, the UK’s consumption of these goods was associated with approximately 29,000 hectares of deforestation worldwide - around one and a half times the size of Manchester - and 9.4 million tonnes of related carbon emissions.
Nature Minister Mary Creagh said:
“Tackling global deforestation is one of the most effective ways we can address climate change and protect some of the world’s most unique and precious wildlife.
“That is why we are leading by example and scrutinising our own supply chains. Eliminating products linked to illegal deforestation not only helps to protect precious ecosystems but is good for our collective resilience and long-term prosperity.”
Andrew Opie, Director of Food & Sustainability at the BRC, said:
“Retailers welcome today’s announcement. We have long called for UK deforestation regulation as an important step in driving forest conservation across retail supply chains in line with business commitments, while supporting alignment with the EU where possible to avoid unnecessary costs and complexity for retailers and their customers.
“However, with the EU regulation due to take effect in Northern Ireland at the end of the year, it is important that the Government takes a pragmatic approach to enforcement to minimise disruption for businesses and consumers.”
Gavin Crowden, Director of Advocacy at WWF, said:
“The UK Government has warned that the collapse of tropical forests in places like the Amazon and Indonesia is a national security risk, not just an environmental one. We rely on these forests for food and climate stability, and they’re home to extraordinary wildlife. With new rules finally coming into force in Northern Ireland at the end of the year, there is no excuse for further delay that would leave shoppers in the rest of the UK still unwittingly driving the destruction of the rainforest.”
These new measures will help businesses better identify and reduce the risk that their imported products are linked to illegal deforestation and land clearing. The government will consult businesses, civil society and international partners later this year on the details of the proposed GB deforestation policy. This will include consulting on the introduction of these mandatory due diligence requirements for businesses in Great Britain including using powers such as under the Environment Act which target illegal deforestation, and by strengthening the existing UK Timber Regulation.
To maintain Northern Ireland’s unique dual market access to both the UK Internal Market and the EU Single Market, the EU Regulation on Deforestation-Free Products (EUDR) will apply in Northern Ireland in phases starting 30 December 2026.
Crucially, to protect the UK Internal Market and streamline compliance, the upcoming consultation will propose that the GB regime covers the same core commodities and underlying information requirements as the regulation in Northern Ireland. This aligned approach is designed to prevent administrative duplication across the UK while helping British exporters to the EU meet consistent data and traceability standards. Businesses in Northern Ireland are encouraged to begin preparations now.
In due course, the Government’s ambition is to transition to a deforestation-free standard which will require relevant products to be produced free from any deforestation, building on stakeholder efforts globally to decouple supply chains from forest loss and land conversion.
These changes help deliver on the UK’s commitment under the Glasgow Leaders’ Declaration on Forests and Land Use, agreed at COP26, to halt and reverse forest loss and land degradation by 2030. It also supports the cross-government 2035 International Climate, Nature & Energy Strategic Framework.
The changes will improve the transparency, traceability and resilience of UK agricultural commodity and timber supply chains, and support smooth trade with the EU through delivering on our Windsor Framework commitments.
Further details on the GB deforestation regulations consultation process will be announced in due course.
https://www.gov.uk/government/news/government-steps-up-action-to-tackle-illegal-deforestation
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Indonesia palm oil export curbs: An open door for Malaysia?Opens in new window
23-Jun-2026 by Pearly Neo
In the face of Indonesia’s new export controls over commodities such as palm oil, does Malaysia have what it takes to take over as the sector’s new superpower?
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Daabon’s Agropalma deal reshapes European sustainable palm oil supply
Posted 22 June, 2026
Grupo Daabon’s acquisition of Brazil’s Agropalma marks a structural shift in the global palm oil landscape — and a potentially transformative moment for UK and European buyers seeking regenerative organic, fully traceable, and EUDR‑compliant supply.
The deal makes Daabon the largest producer of palm oil in the Americas, dramatically expanding its footprint and strengthening availability of certified sustainable material for manufacturers under mounting regulatory and consumer pressure.
A step‑change in scale and supply security
The acquisition brings 107,000 hectares into Daabon’s portfolio, including 39,000 ha of planted palm and 64,000 ha of protected forest reserve in Pará, Brazil. It also adds six extraction plants, a refinery, and an export terminal, giving Daabon end‑to‑end control of a significantly enlarged supply chain. With 5,000 employees and 300 partner farmers joining the group, the company gains both capacity and regional depth at a moment when European buyers are seeking long‑term, deforestation‑free supply.
For UK and EU markets navigating the EU Deforestation Regulation (EUDR), Daabon’s expanded estate offers a rare combination: scale, traceability to plantation, and alignment with leading certification schemes including Regenerative Organic Certified (ROC), Fair Trade, and RSPO. The company says the acquisition ensures “enhanced availability” of compliant palm oil for global customers — a critical assurance as brands race to meet 2025–2026 regulatory deadlines.
“A new benchmark for our industry”
Manuel Davila, managing director of Daabon Europa and Daabon UK, said the deal unites two organisations with shared values and long‑term commitments to responsible agriculture:
“Agropalma is a family farming business that shares our values and commitment to sustainability – our mission now is to build on our shared legacy, elevate our combined organisation, and set a new benchmark for our industry. Together, we will be stronger, more resilient, and better positioned to serve the demands of European, UK and global markets with certified sustainable, deforestation-free palm oil that meets the highest standards of environmental and social responsibility.”
He added that the group will focus on harmonising best practices across both businesses, spanning agronomic discipline, industrial efficiency, traceability, and compliance with global certification standards: “We’ll achieve this by doing what we’ve built our global reputation on – farming in the right way for people and planet.”
Strategic investment in Brazil’s sustainable palm sector
Daabon’s entry into Brazil signals a new cycle of investment in Pará, including support for smallholder farmers, productivity improvements across plantations, and alignment of Agropalma’s operations with Daabon’s certification and ESG frameworks. The company emphasises that community partnerships and forest protection remain central to its long‑term strategy.
Agropalma’s brand and operations in Pará will be preserved, while its Limeira refinery — excluded from the deal — will operate independently as Indústrias Xhara.
For European and UK manufacturers, Daabon’s acquisition represents more than a shift in ownership. It signals a strengthening of supply resilience at a time when regenerative organic and certified sustainable palm oil are becoming non‑negotiable requirements across food, drink, beauty and personal care categories.
https://www.foodanddrinktechnology.com/news/68011/daabons-agropalma-deal-reshapes-european-sustainable-palm-oil-supply/
Sustainability rhetoric vs. economic reality: Can we square the circle?
Global economic shocks and climate volatility are no longer temporary disruptions; they are structural crises deeply embedded in our strained natural systems. For resource-rich nations like Indonesia, surviving the next shock requires rewriting the global incentive structure to value nature on the national balance sheet and fairly compensate the smallholders on the front lines.
The recent military escalation in the Middle East has shown, once again, how quickly shocks travel through the global economy and across markets, and are felt locally. Net oil importers suffered fiscal pressures, while increasing fertilizer prices will ultimately raise food prices almost everywhere. For the poorest households, which spend most of their income on essentials like food, it translated into an affordability shock almost overnight.
These episodes are often treated as temporary disruptions, but they reflect something deeper and structural. Around 90 percent of people globally live with degraded land, polluted air, or water stress—evidence that shocks occur within already strained systems. Food systems, energy systems and ecosystems are deeply interconnected. When one is stressed, effects cascade across the others.
The health of the “next crop” illustrates these systemic linkages. If costly fertilizer remains out-of-reach for small farmers, output falls and incomes suffer. Yet, overuse elsewhere is already eroding productivity: half of global food supply is produced in areas where nitrogen use reduces yields, while pollution costs reach up to US$3.4 trillion annually. Resilience, then, is not just about shock response, but whether the underlying production systems and natural resources remain viable over time.
For much of modern history, economic growth has paralleled environmental harm. Today, developing countries face a steeper challenge: grow, create jobs and protect nature simultaneously. This reflects a structural reality: economic activity is embedded in natural systems—land, water and air—and cannot replace them when they degrade. Is there an industrial country that has managed its industrialization process without placing significant strain on its natural resource base?
Climate volatility, biodiversity loss and ecosystem degradation are already undermining productivity, supply chains and livelihoods. The degradation of ecosystem services alone could cost the global economy up to $2.7 trillion annually by 2030. For Indonesia, the risk is particularly material as around a third of its GDP depends on nature linked sectors.
Recent evidence points to forest and ecosystem loss affecting rainfall, agricultural productivity and growth, with some countries already experiencing measurable GDP losses through disrupted water cycles. At the same time, investments in adaptation and resilience deliver strong returns, generating more than $10 in benefits for every dollar invested.
These realities are pushing nature and climate concerns to the forefront of public policy and decision-making. Pathways to economic growth without environmental harm exist, but not everywhere.
Why have economic systems been so slow to change, and why have production, consumption, and finance not followed suit? Is this a question of political constraint, or do underlying incentives continue to reinforce growth patterns that harm the very foundations of our lives?
The answer lies less in any single villain than in the structure of incentives. The gains from today’s patterns are concentrated and immediate, while the costs are diffuse and deferred, which is part of why correction keeps stalling.
The “trade-off’ tensions are particularly visible in global commodity and food systems, where agriculture, trade, and finance intersect. Production continues to be supported by subsidies across agriculture, energy, water and land use, amounting to roughly $2.4 trillion each year. Consumption is guided by price.
Yet environmental costs remain largely unpriced, allowing ecologically harmful goods with limited traceability to remain competitive. Financing flows reinforce these patterns, with around $7.3 trillion directed annually toward activities that deplete natural systems.
Ultimately, this is not only about protecting natural assets, but about human security and sustained progress. For countries like Indonesia, rich in natural capital, this means bringing nature and climate risks onto the balance sheet and into national accounts.
From palm oil and coffee in Sumatra to cacao in Sulawesi, over 40 million people sit at the center of global supply chains. They are expected to manage climate risks, meet evolving sustainability standards—many set in high-income consumer markets such as the EU’s new deforestation rules—and remain competitive, often with limited access to finance, technology and markets.
The imbalance is stark. Smallholder farmers who underpin these sectors operate on thin margins, bearing most of the risk while capturing only a fraction of value. In oil palm, for example, smallholders capture only around 6 percent of the value in a $280 billion global industry, while downstream firms retain roughly two-thirds of profits.
Encouraging examples show this dynamic can shift. Vietnam's coffee sector has combined productivity gains with value addition, including recent strides in traceability to access higher-value markets. Costa Rica has aligned conservation, tourism and payments for ecosystem services showing that growth and environmental recovery can reinforce one another. These models are not perfect, but they demonstrate that sustainability is more likely to endure when it strengthens incomes and livelihoods.
These examples point to three broader shifts.
First, sustainability must translate into economic opportunity. For producers, especially smallholders, this means access to finance, technology and extension services, alongside pathways into higher-value markets so countries are not locked into low-value production stages.
Second, incentives must be realigned. Repurposing subsidies and redirecting investment toward more resilient production systems can deliver steadier income streams. This is rarely painless, since those who depend on existing subsidies tend to resist, which is part of why reform so often stalls. Crucially, financing must reach both ends: affordable credit, insurance and working capital for smallholders alongside long-term investment in processing, infrastructure and industrial upgrading that accounts for environmental costs.
Third, we must decide who bears the cost of transforming how we grow, produce and consume without further destabilizing the natural ecosystems that underpin life on the planet. For some countries in Asia-Pacific, the trade-offs may be less binding than it first appears, given the chance to build cleaner systems before high-carbon infrastructure locks in.
Developing countries continue to face higher borrowing costs and tighter fiscal space, reflecting deeper asymmetries in the global financial architecture. Much of the available finance focuses on derisking capital without lowering financing costs or enabling transformative change.
Despite growing commitments on climate and biodiversity finance, actual flows remain far below what is needed. If nature’s wealth is reflected on balance sheets, it can attract more predictable and concessional financing. Countries like Indonesia would enter negotiations with stronger leverage, backed by natural assets of global significance.
The next shock—whether geopolitical, zoonotic, climatic or economic—is not a question of if, but when. How we respond will depend on today’s choices: whether we continue to reward short-term gains or invest in a model of growth that works across the economic–nature–climate arc—one that strengthens the resilience of economies while sustaining the natural systems on which long-term prosperity depends.
***
Writer: Kanni Wignaraja and Sara Ferrer Olivella
Kanni Wignaraja is United Nations assistant secretary-general and UNDP regional director for Asia and the Pacific based in New York, United States. Sara Ferrer Olivella is the resident representative of UNDP Indonesia based in Jakarta.
https://www.undp.org/indonesia/news/sustainability-rhetoric-vs-economic-reality-can-we-square-circle
----------
UK imports linked to deforestation the size of Leeds since government delay
A nearly-five year delay in passing UK deforestation regulations saw imports linked to over 54,000 hectares of tropical deforestation, Global Witness analysis finds, as the UK announces possible alignment with EU rules
The UK government today announced its intention to apply the EU’s deforestation regulation (“EUDR”) in Northern Ireland, a big advance towards ending the UK's contribution to deforestation and linked human rights abuses.
Ministers have said they will consult this year on aligning all UK trade rules with the EU’s regime, which requires companies to demonstrate that products sold on the market are free from deforestation and forest degradation, and comply with human rights protections in the countries where they are produced.
The announcement today is a step towards long-awaited rules on banning the use of goods linked to illegal deforestation in the UK.
The UK’s own deforestation legislation, part of the UK Environment Act, was passed in 2021, and we have been waiting for the details of the regime needed for it to enter into force since then.
Unlike the EU’s regime, the UK Environment Act only applies to goods produced on illegally deforested land – although ministers say they will consider options to extend it to all deforested land.
Swift UK-wide alignment with the EU’s rules is essential, as demonstrated by new Global Witness analysis, which finds that the UK’s directly imported commodities have been linked to over 54,000 hectares (ha) of deforestation during the delay since 2021. These 54,000 ha represent a deforestation footprint equal to the size of Leeds.
The new figures linked to just seven commodities directly imported to the UK between November 2021 – when the legislation was first published – and February 2026. The commodities analysed were the same as those covered by the EU regime: palm oil, cocoa, soya, coffee, rubber and the cattle products beef and leather (with the exception of timber and wood products).
https://globalwitness.org/en/campaigns/forests/uk-imports-linked-to-deforestation-the-size-of-leeds-since-government-delay/
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British Government steps up action to tackle illegal deforestation
New rules will ensure everyday products sold in the UK including coffee and cocoa do not contribute to illegal deforestation around the world
From: Department for Environment, Food & Rural Affairs and Mary Creagh CBE MP
Published 23 June 2026
The world’s rainforests are to be better protected from deforestation as the government will confirm today (Tuesday 23 June), during London Climate Action Week, that plans to take forward new rules in Great Britain including using powers in the Environment Act alongside legislation strengthening the UK Timber Regulation.
Under the proposals UK businesses who trade in commodities sourced from rainforests such as soy, palm oil, cocoa and rubber will need to check that their supply chains are not contributing to illegal deforestation. These products are commonly found in everyday supermarket products including chocolate, cooking oils, shampoo and cosmetics.
UK companies have been at the forefront of global efforts to tackle deforestation within their supply chains, but voluntary action alone cannot tackle this global challenge, and several major supermarkets have been calling for stronger regulation.
This move will protect the habitats of some of the world’s most precious and endangered species, while giving British consumers confidence that the products in their shopping baskets are not contributing to illegal deforestation.
Rainforests and other forests are vital for storing carbon and sustaining biodiversity, yet they are increasingly threatened by deforestation. Around 90% of global deforestation is driven by agricultural expansion, much of it linked to the production of internationally traded commodities. In 2023, the UK’s consumption of these goods was associated with approximately 29,000 hectares of deforestation worldwide - around one and a half times the size of Manchester - and 9.4 million tonnes of related carbon emissions.
Nature Minister Mary Creagh said:
“Tackling global deforestation is one of the most effective ways we can address climate change and protect some of the world’s most unique and precious wildlife.
“That is why we are leading by example and scrutinising our own supply chains. Eliminating products linked to illegal deforestation not only helps to protect precious ecosystems but is good for our collective resilience and long-term prosperity.”
Andrew Opie, Director of Food & Sustainability at the BRC, said:
“Retailers welcome today’s announcement. We have long called for UK deforestation regulation as an important step in driving forest conservation across retail supply chains in line with business commitments, while supporting alignment with the EU where possible to avoid unnecessary costs and complexity for retailers and their customers.
“However, with the EU regulation due to take effect in Northern Ireland at the end of the year, it is important that the Government takes a pragmatic approach to enforcement to minimise disruption for businesses and consumers.”
Gavin Crowden, Director of Advocacy at WWF, said:
“The UK Government has warned that the collapse of tropical forests in places like the Amazon and Indonesia is a national security risk, not just an environmental one. We rely on these forests for food and climate stability, and they’re home to extraordinary wildlife. With new rules finally coming into force in Northern Ireland at the end of the year, there is no excuse for further delay that would leave shoppers in the rest of the UK still unwittingly driving the destruction of the rainforest.”
These new measures will help businesses better identify and reduce the risk that their imported products are linked to illegal deforestation and land clearing. The government will consult businesses, civil society and international partners later this year on the details of the proposed GB deforestation policy. This will include consulting on the introduction of these mandatory due diligence requirements for businesses in Great Britain including using powers such as under the Environment Act which target illegal deforestation, and by strengthening the existing UK Timber Regulation.
To maintain Northern Ireland’s unique dual market access to both the UK Internal Market and the EU Single Market, the EU Regulation on Deforestation-Free Products (EUDR) will apply in Northern Ireland in phases starting 30 December 2026.
Crucially, to protect the UK Internal Market and streamline compliance, the upcoming consultation will propose that the GB regime covers the same core commodities and underlying information requirements as the regulation in Northern Ireland. This aligned approach is designed to prevent administrative duplication across the UK while helping British exporters to the EU meet consistent data and traceability standards. Businesses in Northern Ireland are encouraged to begin preparations now.
In due course, the Government’s ambition is to transition to a deforestation-free standard which will require relevant products to be produced free from any deforestation, building on stakeholder efforts globally to decouple supply chains from forest loss and land conversion.
These changes help deliver on the UK’s commitment under the Glasgow Leaders’ Declaration on Forests and Land Use, agreed at COP26, to halt and reverse forest loss and land degradation by 2030. It also supports the cross-government 2035 International Climate, Nature & Energy Strategic Framework.
The changes will improve the transparency, traceability and resilience of UK agricultural commodity and timber supply chains, and support smooth trade with the EU through delivering on our Windsor Framework commitments.
Further details on the GB deforestation regulations consultation process will be announced in due course.
https://www.gov.uk/government/news/government-steps-up-action-to-tackle-illegal-deforestation
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Indonesia palm oil export curbs: An open door for Malaysia?Opens in new window
23-Jun-2026 by Pearly Neo
In the face of Indonesia’s new export controls over commodities such as palm oil, does Malaysia have what it takes to take over as the sector’s new superpower?
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Daabon’s Agropalma deal reshapes European sustainable palm oil supply
Posted 22 June, 2026
Grupo Daabon’s acquisition of Brazil’s Agropalma marks a structural shift in the global palm oil landscape — and a potentially transformative moment for UK and European buyers seeking regenerative organic, fully traceable, and EUDR‑compliant supply.
The deal makes Daabon the largest producer of palm oil in the Americas, dramatically expanding its footprint and strengthening availability of certified sustainable material for manufacturers under mounting regulatory and consumer pressure.
A step‑change in scale and supply security
The acquisition brings 107,000 hectares into Daabon’s portfolio, including 39,000 ha of planted palm and 64,000 ha of protected forest reserve in Pará, Brazil. It also adds six extraction plants, a refinery, and an export terminal, giving Daabon end‑to‑end control of a significantly enlarged supply chain. With 5,000 employees and 300 partner farmers joining the group, the company gains both capacity and regional depth at a moment when European buyers are seeking long‑term, deforestation‑free supply.
For UK and EU markets navigating the EU Deforestation Regulation (EUDR), Daabon’s expanded estate offers a rare combination: scale, traceability to plantation, and alignment with leading certification schemes including Regenerative Organic Certified (ROC), Fair Trade, and RSPO. The company says the acquisition ensures “enhanced availability” of compliant palm oil for global customers — a critical assurance as brands race to meet 2025–2026 regulatory deadlines.
“A new benchmark for our industry”
Manuel Davila, managing director of Daabon Europa and Daabon UK, said the deal unites two organisations with shared values and long‑term commitments to responsible agriculture:
“Agropalma is a family farming business that shares our values and commitment to sustainability – our mission now is to build on our shared legacy, elevate our combined organisation, and set a new benchmark for our industry. Together, we will be stronger, more resilient, and better positioned to serve the demands of European, UK and global markets with certified sustainable, deforestation-free palm oil that meets the highest standards of environmental and social responsibility.”
He added that the group will focus on harmonising best practices across both businesses, spanning agronomic discipline, industrial efficiency, traceability, and compliance with global certification standards: “We’ll achieve this by doing what we’ve built our global reputation on – farming in the right way for people and planet.”
Strategic investment in Brazil’s sustainable palm sector
Daabon’s entry into Brazil signals a new cycle of investment in Pará, including support for smallholder farmers, productivity improvements across plantations, and alignment of Agropalma’s operations with Daabon’s certification and ESG frameworks. The company emphasises that community partnerships and forest protection remain central to its long‑term strategy.
Agropalma’s brand and operations in Pará will be preserved, while its Limeira refinery — excluded from the deal — will operate independently as Indústrias Xhara.
For European and UK manufacturers, Daabon’s acquisition represents more than a shift in ownership. It signals a strengthening of supply resilience at a time when regenerative organic and certified sustainable palm oil are becoming non‑negotiable requirements across food, drink, beauty and personal care categories.
https://www.foodanddrinktechnology.com/news/68011/daabons-agropalma-deal-reshapes-european-sustainable-palm-oil-supply/
June 22, 2026
Malaysia, South Korea strengthen renewable energy partnership with Terengganu Bio-CNG project
PETALING JAYA: Malaysia and South Korea have strengthened their strategic partnership in renewable energy by exchanging a letter of intent (LoI) for the Terengganu State Palm Oil Mill Biogas Upgrading Project, an initiative that will convert waste from the palm oil industry into bio-compressed natural gas (bio-CNG).
Supported and coordinated by Malaysian Bioeconomy Development Corporation (Bioeconomy Corp), the project brings together South Korean renewable energy companies Polaris Bio Co Ltd and Sudokwon Landfill Site Management Corporation (SLC), along with Malaysian technology partner MTC Orec Sdn Bhd, to unlock the commercial potential of waste from the palm oil industry as a high-value clean energy source.
The LoI for the project was signed by Song Byeong-eok, president of SLC, Junghwan Kim, CEO of Polaris Bio, and Dr Zahari Mohamad, CEO of MTC Orec. The ceremony was witnessed by Han-il Lee, minister and consul general of the South Korean Embassy in Malaysia.
The signing ceremony was attended by about 40 representatives from government agencies, public institutions and private sector organisations from both countries, including Natural Resources and Environmental Sustainability Ministry (NRES) Climate Change Division Undersecretary Ahmad Farid Mohammed.
The Terengganu Bio-CNG Project is a continuation of the memorandum of understanding signed between Bioeconomy Corp and Polaris Bio in October 2025 for the feasibility study and development of biogas projects. The initiative paved the way for an RM700 million investment pipeline to develop palm oil waste-based Bio-CNG facilities across Malaysia.
https://thesun.my/business/malaysia-south-korea-strengthen-renewable-energy-partnership-with-terengganu-bio-cng-project/
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Indonesia's Prabowo taps Danantara to drive agenda, testing fund's capacity
JAKARTA — A rapid expansion of Indonesia's sovereign wealth fund Danantara's mandate is entrenching its role as a key vehicle for President Prabowo Subianto's nationalist agenda, even as doubts grow over its execution capacity and political independence.
Prabowo rattled global markets last month by announcing Indonesia will centralise exports of strategic commodities, starting with coal, palm oil and ferroalloys.
In a fiery speech to parliament, he called it a necessary state intervention to halt decades of exploitation of the resource-rich country.
It was a familiar rallying cry, part of the former general's nationalist narrative that he has stressed since taking power in 2024.
Rather than tasking existing government departments, Prabowo handed execution to a new unit, Danantara Sumberdaya Indonesia (DSI), signalling the fund's expanding role in Southeast Asia's biggest economy. Danantara reports directly to the president.
"It's increasingly clear that all its (Danantara's) functions are decided based on politics, whether for political purposes or to meet (Prabowo's) political promises," Yose Rizal Damuri, executive director and economist with the Centre for Strategic and International Studies (CSIS), said.
"Instead of improving state institutions, he created a new body and is giving it new roles," Damuri said.
Within days, another presidential decree created a development investment arm inside Danantara that can draw finance from the state budget.
It is expected to focus on projects deemed nationally strategic, even if they offer low commercial returns, three people familiar with the discussions said, declining to be identified because they were not authorised to speak to media.
The comments shed light on potential areas of focus not previously reported.
One of the sources said this could include a role in a revived national car project — another of Prabowo's policy promises.
Danantara and the presidential palace did not respond to requests for comment.
During a speech to the World Economic Forum in January, Prabowo said Danantara was built with strong oversight and institutional responsibility, ensuring its governance and management met the best international standards.
He also warned officials at the fund's first anniversary on March 11 that he had no tolerance for falsified data, sugarcoated updates or manipulated reports.
https://www.asiaone.com/asia/indonesias-prabowo-taps-danantara-drive-agenda-testing-funds-capacity
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Reconciling Indonesia's resource sovereignty with human rights due diligence
TAUVIK M. SOEHERMAN, An independent labor & public policy expert and guest lecturer in Political Economy at Paramadina University-Jakarta and UNANG MULKHAN, Senior business and human rights specialist at the Foundation for International Human Rights Reporting Standards (FIHRRST) Indonesia.
Jakarta, IO – President Prabowo Subianto has announced that, starting January 1, 2027, all exports of crude palm oil, coal, and ferroalloys will be centralized through PT Danantara Sumberdaya Indonesia (DSI)—an entity whose role remains controversial under the current regulatory framework, and an innovation definitely requiring more accountability and good governance. While this move signals a push for economic sovereignty, it will also entail greater responsibility and ethical scrutiny.
In accordance with this new “one gate” policy, strategic commodities in Indonesia will no longer escape the country via fragmented private channels, but must pass through a single national gateway aimed at strengthening state oversight, increasing export revenue retention, improving foreign exchange reserves, and reducing financial leakages such as underreporting, transfer pricing, and unmonitored export flows.
From an economic perspective, the policy is understandable. For decades, Indonesia has been a global supplier of coal, palm oil, and mineral products, without fully maximizing the value of its own resources. This may begin to change in the coming years.
Discussions on the impacts of such a new system have fixated on logistics, pricing, and market aspects. Yet, a crucial question demands immediate attention: what will happen to workers and other stakeholders in the commodity supply chain, once exports are strictly channeled through a single gateway?
This question must be addressed, because commodity supply chains are already notorious for their human rights issues. Unsafe mines, outsourcing practices, lack of employment protections, long working hours, environmental degradation and conflict with local villagers are common occurrences rather than isolated cases.
The issue is becoming increasingly urgent as the global community raises concerns about worker welfare and environmental sustainability in trade. The United Nations Guiding Principles for Business and Human Rights, the OECD Due Diligence Guidance, and the new EU Deforestation Regulation are no longer merely guidelines: they now dictate market access.
The real challenge, therefore, is not whether Indonesia should strengthen control over its exports, but whether such control can be implemented without worsening risks within commodity supply chains.
https://observerid.com/reconciling-resource-sovereignty-with-human-rights-due-diligence/
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West Papuans speak out against government plan for massive destruction of traditional lands
Maeve Larkins spoke to two members of Yayasan Pusaka Bentala Rakyat, an activist group based in West Papua, about the Indonesian government’s National Strategic Project (PSN) in Merauke, a region in the south of West Papua. The project is deforesting up to three million hectares of Indigenous land to establish agricultural estates growing rice, sugar cane, corn, palm oil and livestock.
Indonesia has occupied West Papua since 1969, orchestrating a vote (the so-called “Act of Free Choice”) to claim the population wanted integration with Indonesia. The Indonesian government has taken control of West Papua’s mining resources and brought in hundreds of thousands of transmigrants from Java to settle there. Indigenous Papuan rights are frequently overruled in the interests of major corporations, and military repression of Papuans is frequent.
In the first half of this year, over 30 Papuans have been killed by the Indonesian military and police, adding to a total death toll at least 100,000 Papuans since Indonesia took control of the province. West Papuans continue to fight for independence.
Papuan opposition to the PSN is the focus of the new documentary, Pig Feast: Colonialism in our time, which now has over 13 million views on YouTube, and has been screened over 1500 times across Indonesia and internationally. The film is now being repressed by Prabowo’s government in Indonesia, including being banned in several location across Indonesia by local government officials.
To protect the interviewees identities, we have anonymised them as “A” and “B”.
Q: How has the Indonesian government’s National Strategic Project (PSN) impacted Indigenous Papuan communities?
A: The PSN has been devastating in Merauke. It threatens our community, especially our ancestral lands. Most of us are relying on these lands, because we got our food and water from the forest.
So, the PSN threatens our lives, especially the most vulnerable—the children and women. It’s why we are being forced to leave, because they are destroying our land.
But it doesn’t just effect the Indigenous community. The transmigrants who live here are also effected. It causes their crops to fail, and it causes flooding in their rice fields.
We have also lost a lot of our traditional materials. We rely on our rituals, but when the PSN started to destroy the forests, we have lost them. And, when they are lost, people lose their culture, and they lose their identity.
When the PSN started, it also affected people’s health. When the dry season comes, the air becomes polluted with dust. So it effects the whole community in Merauke.
B: The PSN is not just an infrastructure, food security, or energy project. It’s much more than that. It is part of a long-running project of the Indonesian government to transform Indigenous land in West Papua into an extractive industrial zone.
Q: What sort of repression do opponents of the PSN face?
A: There have already been many protests by Indigenous communities across Papua against the PSN, for example, in Sorong, Manokwari, and Boven Digoel. There have been so many protests and rallies that the Indigenous peoples have now been banned from protesting.
We’ve also tried to take our protests to the House of Representatives, but so far, we’ve had no positive responses.
If we stand against the project, we are called separatists, and we are intimidated by the military and by the private companies themselves. Like Mama Yasinta, who has now been kidnapped.
[Yasinta Moiwend, known as “Mama Yasinta”, is an Indigenous Papuan activist who spoke against the PSN in the documentary Pig Feast and who has publicly campaigned against the PSN since 2024. In late May, she was reportedly abducted, threatened and taken to Jakarta, where she appears to have been coerced into filing a police report against the documentary director Dhandy Laksono and Indigenous lawyer John Teddy Wakum, for allegedly using footage of her in the film without her permission. Posts from her social media account since the abduction demand the film screenings of Pig Feast are stopped. Her family, friends and lawyers have been unable to get in touch with her directly.-ML]
I’ve just visited Mama Yasinta’s family. They told me that the Indonesian army is now demanding identification from them so they can frame Mama Yasinta as supporting the PSN. The military has set up a military post in the village of Anam for the construction of a 135km road. Another Papuan activist from the movie is being reported to the police for blocking access to his ancestral lands.
B: The kidnapping of Mama Yasinta is very similar to what Indonesian governments have done in the past to Papuans.
This kind of repression is not normal for other infrastructure projects across Indonesia.
In five years, there will be 500 Indonesian military battalions across West Papua. There are already 83,000 military and police stationed in West Papua—one soldier for every 103 Papuans.
They claim they need to be there to combat armed separatists; but they also admit that there are only around 1500 guerrillas with just over 350 firearms between them across the entire province.
Q: The Australian government trains the Indonesian military and police, and provides a lot of support to Indonesia’s government. What message do you have for Australians about this?
A: We really need Australians’ support. There has to be a campaign from the Australian community that puts the focus on West Papua, and which pushes their government to stop supporting the private companies that are investing in Indonesia, specifically in West Papua.
Australian companies are supporting sugar cane plantations in Merauke. There are currently two operating here, but soon there will be seven. And, the Australian government trains the military who act as the security of the plantations, and the PSN.
To set up the PSN, the soldiers have built many military posts, within Merauke and along the border with Papua New Guinea. They surveil the Papuan civilians, and threaten the girls, especially the communities that reject the PSN.
We do not reject “development”, we ask that our rights as land owners be respected. So far, the government has not recognised us as the owner of the land, even though in Indonesia’s 1945 Constitution, article 18 B, recognises customary law, they do not recognise the existence of the Papuan land owners, and so the government views the forests and the swamps as just unused and vacant land even though we maintain the land as our main source of food. It is also a place to live for endemic animals including birds of paradise, cassowary, wallaby, kangaroo, and cuscus.
B: We have to ask for accountability. For everything the Australian government is doing to support the Indonesian military and police, we have to make sure that it is based on human rights principles.
The solidarity we have received from Australia means a lot to us. We need Australians to monitor their own government and hold them to account.
Q: What is the importance of solidarity, from Indonesians and internationally, with West Papua?
A: Before Pig Feast, it was only very small groups in Indonesia that were aware of the PSN. There have now been over 1500 screenings of Pig Feast across Indonesia, and 13 million views on YouTube.
This has been really important, to get more support and spread awareness about the issue, and to break through propaganda from the Indonesian government.
Unfortunately, many Indonesians are still very racist. They are told that Papuans are “uncivilised” people, and so they believe the government when they say “development” is the only way to bring “civilisation” to the Papuans.
Another challenge is that anyone in Indonesia who opposes the government is labelled as a criminal, a terrorist, or a Communist.
So, I think it’s really important that we keep spreading awareness and educating people.
B: It is very good that there is some solidarity that is growing with West Papua internationally and within Indonesia, but it is not enough.
Papuans want our rights respected, but this isn’t happening. We are similar to Aboriginal people. When we lose our land, our forests, we lose our identity. We believe that if we lose our ancestral lands, we are no longer Papuan.
But, if only Papuans speak up about their land, it will not be enough. We need support and solidarity, not only from Indonesia, but across the world.
https://solidarity.net.au/highlights/west-papuans-speak-out-against-government-plans-for-massive-destruction-of-traditional-lands/
Malaysia, South Korea strengthen renewable energy partnership with Terengganu Bio-CNG project
PETALING JAYA: Malaysia and South Korea have strengthened their strategic partnership in renewable energy by exchanging a letter of intent (LoI) for the Terengganu State Palm Oil Mill Biogas Upgrading Project, an initiative that will convert waste from the palm oil industry into bio-compressed natural gas (bio-CNG).
Supported and coordinated by Malaysian Bioeconomy Development Corporation (Bioeconomy Corp), the project brings together South Korean renewable energy companies Polaris Bio Co Ltd and Sudokwon Landfill Site Management Corporation (SLC), along with Malaysian technology partner MTC Orec Sdn Bhd, to unlock the commercial potential of waste from the palm oil industry as a high-value clean energy source.
The LoI for the project was signed by Song Byeong-eok, president of SLC, Junghwan Kim, CEO of Polaris Bio, and Dr Zahari Mohamad, CEO of MTC Orec. The ceremony was witnessed by Han-il Lee, minister and consul general of the South Korean Embassy in Malaysia.
The signing ceremony was attended by about 40 representatives from government agencies, public institutions and private sector organisations from both countries, including Natural Resources and Environmental Sustainability Ministry (NRES) Climate Change Division Undersecretary Ahmad Farid Mohammed.
The Terengganu Bio-CNG Project is a continuation of the memorandum of understanding signed between Bioeconomy Corp and Polaris Bio in October 2025 for the feasibility study and development of biogas projects. The initiative paved the way for an RM700 million investment pipeline to develop palm oil waste-based Bio-CNG facilities across Malaysia.
https://thesun.my/business/malaysia-south-korea-strengthen-renewable-energy-partnership-with-terengganu-bio-cng-project/
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Indonesia's Prabowo taps Danantara to drive agenda, testing fund's capacity
JAKARTA — A rapid expansion of Indonesia's sovereign wealth fund Danantara's mandate is entrenching its role as a key vehicle for President Prabowo Subianto's nationalist agenda, even as doubts grow over its execution capacity and political independence.
Prabowo rattled global markets last month by announcing Indonesia will centralise exports of strategic commodities, starting with coal, palm oil and ferroalloys.
In a fiery speech to parliament, he called it a necessary state intervention to halt decades of exploitation of the resource-rich country.
It was a familiar rallying cry, part of the former general's nationalist narrative that he has stressed since taking power in 2024.
Rather than tasking existing government departments, Prabowo handed execution to a new unit, Danantara Sumberdaya Indonesia (DSI), signalling the fund's expanding role in Southeast Asia's biggest economy. Danantara reports directly to the president.
"It's increasingly clear that all its (Danantara's) functions are decided based on politics, whether for political purposes or to meet (Prabowo's) political promises," Yose Rizal Damuri, executive director and economist with the Centre for Strategic and International Studies (CSIS), said.
"Instead of improving state institutions, he created a new body and is giving it new roles," Damuri said.
Within days, another presidential decree created a development investment arm inside Danantara that can draw finance from the state budget.
It is expected to focus on projects deemed nationally strategic, even if they offer low commercial returns, three people familiar with the discussions said, declining to be identified because they were not authorised to speak to media.
The comments shed light on potential areas of focus not previously reported.
One of the sources said this could include a role in a revived national car project — another of Prabowo's policy promises.
Danantara and the presidential palace did not respond to requests for comment.
During a speech to the World Economic Forum in January, Prabowo said Danantara was built with strong oversight and institutional responsibility, ensuring its governance and management met the best international standards.
He also warned officials at the fund's first anniversary on March 11 that he had no tolerance for falsified data, sugarcoated updates or manipulated reports.
https://www.asiaone.com/asia/indonesias-prabowo-taps-danantara-drive-agenda-testing-funds-capacity
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Reconciling Indonesia's resource sovereignty with human rights due diligence
TAUVIK M. SOEHERMAN, An independent labor & public policy expert and guest lecturer in Political Economy at Paramadina University-Jakarta and UNANG MULKHAN, Senior business and human rights specialist at the Foundation for International Human Rights Reporting Standards (FIHRRST) Indonesia.
Jakarta, IO – President Prabowo Subianto has announced that, starting January 1, 2027, all exports of crude palm oil, coal, and ferroalloys will be centralized through PT Danantara Sumberdaya Indonesia (DSI)—an entity whose role remains controversial under the current regulatory framework, and an innovation definitely requiring more accountability and good governance. While this move signals a push for economic sovereignty, it will also entail greater responsibility and ethical scrutiny.
In accordance with this new “one gate” policy, strategic commodities in Indonesia will no longer escape the country via fragmented private channels, but must pass through a single national gateway aimed at strengthening state oversight, increasing export revenue retention, improving foreign exchange reserves, and reducing financial leakages such as underreporting, transfer pricing, and unmonitored export flows.
From an economic perspective, the policy is understandable. For decades, Indonesia has been a global supplier of coal, palm oil, and mineral products, without fully maximizing the value of its own resources. This may begin to change in the coming years.
Discussions on the impacts of such a new system have fixated on logistics, pricing, and market aspects. Yet, a crucial question demands immediate attention: what will happen to workers and other stakeholders in the commodity supply chain, once exports are strictly channeled through a single gateway?
This question must be addressed, because commodity supply chains are already notorious for their human rights issues. Unsafe mines, outsourcing practices, lack of employment protections, long working hours, environmental degradation and conflict with local villagers are common occurrences rather than isolated cases.
The issue is becoming increasingly urgent as the global community raises concerns about worker welfare and environmental sustainability in trade. The United Nations Guiding Principles for Business and Human Rights, the OECD Due Diligence Guidance, and the new EU Deforestation Regulation are no longer merely guidelines: they now dictate market access.
The real challenge, therefore, is not whether Indonesia should strengthen control over its exports, but whether such control can be implemented without worsening risks within commodity supply chains.
https://observerid.com/reconciling-resource-sovereignty-with-human-rights-due-diligence/
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West Papuans speak out against government plan for massive destruction of traditional lands
Maeve Larkins spoke to two members of Yayasan Pusaka Bentala Rakyat, an activist group based in West Papua, about the Indonesian government’s National Strategic Project (PSN) in Merauke, a region in the south of West Papua. The project is deforesting up to three million hectares of Indigenous land to establish agricultural estates growing rice, sugar cane, corn, palm oil and livestock.
Indonesia has occupied West Papua since 1969, orchestrating a vote (the so-called “Act of Free Choice”) to claim the population wanted integration with Indonesia. The Indonesian government has taken control of West Papua’s mining resources and brought in hundreds of thousands of transmigrants from Java to settle there. Indigenous Papuan rights are frequently overruled in the interests of major corporations, and military repression of Papuans is frequent.
In the first half of this year, over 30 Papuans have been killed by the Indonesian military and police, adding to a total death toll at least 100,000 Papuans since Indonesia took control of the province. West Papuans continue to fight for independence.
Papuan opposition to the PSN is the focus of the new documentary, Pig Feast: Colonialism in our time, which now has over 13 million views on YouTube, and has been screened over 1500 times across Indonesia and internationally. The film is now being repressed by Prabowo’s government in Indonesia, including being banned in several location across Indonesia by local government officials.
To protect the interviewees identities, we have anonymised them as “A” and “B”.
Q: How has the Indonesian government’s National Strategic Project (PSN) impacted Indigenous Papuan communities?
A: The PSN has been devastating in Merauke. It threatens our community, especially our ancestral lands. Most of us are relying on these lands, because we got our food and water from the forest.
So, the PSN threatens our lives, especially the most vulnerable—the children and women. It’s why we are being forced to leave, because they are destroying our land.
But it doesn’t just effect the Indigenous community. The transmigrants who live here are also effected. It causes their crops to fail, and it causes flooding in their rice fields.
We have also lost a lot of our traditional materials. We rely on our rituals, but when the PSN started to destroy the forests, we have lost them. And, when they are lost, people lose their culture, and they lose their identity.
When the PSN started, it also affected people’s health. When the dry season comes, the air becomes polluted with dust. So it effects the whole community in Merauke.
B: The PSN is not just an infrastructure, food security, or energy project. It’s much more than that. It is part of a long-running project of the Indonesian government to transform Indigenous land in West Papua into an extractive industrial zone.
Q: What sort of repression do opponents of the PSN face?
A: There have already been many protests by Indigenous communities across Papua against the PSN, for example, in Sorong, Manokwari, and Boven Digoel. There have been so many protests and rallies that the Indigenous peoples have now been banned from protesting.
We’ve also tried to take our protests to the House of Representatives, but so far, we’ve had no positive responses.
If we stand against the project, we are called separatists, and we are intimidated by the military and by the private companies themselves. Like Mama Yasinta, who has now been kidnapped.
[Yasinta Moiwend, known as “Mama Yasinta”, is an Indigenous Papuan activist who spoke against the PSN in the documentary Pig Feast and who has publicly campaigned against the PSN since 2024. In late May, she was reportedly abducted, threatened and taken to Jakarta, where she appears to have been coerced into filing a police report against the documentary director Dhandy Laksono and Indigenous lawyer John Teddy Wakum, for allegedly using footage of her in the film without her permission. Posts from her social media account since the abduction demand the film screenings of Pig Feast are stopped. Her family, friends and lawyers have been unable to get in touch with her directly.-ML]
I’ve just visited Mama Yasinta’s family. They told me that the Indonesian army is now demanding identification from them so they can frame Mama Yasinta as supporting the PSN. The military has set up a military post in the village of Anam for the construction of a 135km road. Another Papuan activist from the movie is being reported to the police for blocking access to his ancestral lands.
B: The kidnapping of Mama Yasinta is very similar to what Indonesian governments have done in the past to Papuans.
This kind of repression is not normal for other infrastructure projects across Indonesia.
In five years, there will be 500 Indonesian military battalions across West Papua. There are already 83,000 military and police stationed in West Papua—one soldier for every 103 Papuans.
They claim they need to be there to combat armed separatists; but they also admit that there are only around 1500 guerrillas with just over 350 firearms between them across the entire province.
Q: The Australian government trains the Indonesian military and police, and provides a lot of support to Indonesia’s government. What message do you have for Australians about this?
A: We really need Australians’ support. There has to be a campaign from the Australian community that puts the focus on West Papua, and which pushes their government to stop supporting the private companies that are investing in Indonesia, specifically in West Papua.
Australian companies are supporting sugar cane plantations in Merauke. There are currently two operating here, but soon there will be seven. And, the Australian government trains the military who act as the security of the plantations, and the PSN.
To set up the PSN, the soldiers have built many military posts, within Merauke and along the border with Papua New Guinea. They surveil the Papuan civilians, and threaten the girls, especially the communities that reject the PSN.
We do not reject “development”, we ask that our rights as land owners be respected. So far, the government has not recognised us as the owner of the land, even though in Indonesia’s 1945 Constitution, article 18 B, recognises customary law, they do not recognise the existence of the Papuan land owners, and so the government views the forests and the swamps as just unused and vacant land even though we maintain the land as our main source of food. It is also a place to live for endemic animals including birds of paradise, cassowary, wallaby, kangaroo, and cuscus.
B: We have to ask for accountability. For everything the Australian government is doing to support the Indonesian military and police, we have to make sure that it is based on human rights principles.
The solidarity we have received from Australia means a lot to us. We need Australians to monitor their own government and hold them to account.
Q: What is the importance of solidarity, from Indonesians and internationally, with West Papua?
A: Before Pig Feast, it was only very small groups in Indonesia that were aware of the PSN. There have now been over 1500 screenings of Pig Feast across Indonesia, and 13 million views on YouTube.
This has been really important, to get more support and spread awareness about the issue, and to break through propaganda from the Indonesian government.
Unfortunately, many Indonesians are still very racist. They are told that Papuans are “uncivilised” people, and so they believe the government when they say “development” is the only way to bring “civilisation” to the Papuans.
Another challenge is that anyone in Indonesia who opposes the government is labelled as a criminal, a terrorist, or a Communist.
So, I think it’s really important that we keep spreading awareness and educating people.
B: It is very good that there is some solidarity that is growing with West Papua internationally and within Indonesia, but it is not enough.
Papuans want our rights respected, but this isn’t happening. We are similar to Aboriginal people. When we lose our land, our forests, we lose our identity. We believe that if we lose our ancestral lands, we are no longer Papuan.
But, if only Papuans speak up about their land, it will not be enough. We need support and solidarity, not only from Indonesia, but across the world.
https://solidarity.net.au/highlights/west-papuans-speak-out-against-government-plans-for-massive-destruction-of-traditional-lands/
June 21, 2026
Indonesia’s new palm oil export rules draw scrutiny from Malaysia, traders
JAKARTA, June 20 — Indonesia’s plan to tighten oversight of strategic commodity exports through a new state-linked monitoring framework is being closely watched by industry players in Malaysia as well as buyers and traders in major markets, with analysts assessing its potential implications for the global palm oil trade.
The framework forms part of a broader government effort to improve oversight of export transactions, curb practices such as under-invoicing and transfer pricing, and retain a greater share of export earnings within the domestic financial system.
The development is significant for the palm oil industry as Indonesia and Malaysia together account for more than 80 per cent of global palm oil exports, making policy changes in either country closely followed by international buyers and traders.
According to projections by the United States Department of Agriculture (USDA), Indonesia is expected to produce about 46 million tonnes of palm oil in the 2024/25 marketing year, while Malaysia is projected to produce around 19.4 million tonnes, maintaining their positions as the world’s two largest producers.
Exporters seek clarity
Initial concerns over the policy were shared by exporters in both Malaysia and Indonesia, said Minister Counsellor (Economy) at the Malaysian Embassy in Jakarta, Ahmad Akmal Muhamad.
He said businesses had sought greater clarity on how the framework would be implemented, particularly on whether existing export documentation and commercial procedures would be replaced under the new system.
“Both Malaysian and Indonesian exporters raised concerns over the policy, largely because details of the implementation had yet to be announced,” he told Bernama.
The framework, announced by President Prabowo Subianto in May, is being implemented through Danantara Sumberdaya Indonesia (DSI), a state-linked entity tasked with overseeing exports of selected strategic commodities, including crude palm oil (CPO), coal and ferroalloys.
It complements Indonesia’s revised Foreign Exchange Earnings from Natural Resource Exports (DHE SDA) regulation, which requires a larger share of export proceeds to remain within the domestic financial system.
Exporters seek clarity
Initial concerns over the policy were shared by exporters in both Malaysia and Indonesia, said Minister Counsellor (Economy) at the Malaysian Embassy in Jakarta, Ahmad Akmal Muhamad.
He said businesses had sought greater clarity on how the framework would be implemented, particularly on whether existing export documentation and commercial procedures would be replaced under the new system.
“Both Malaysian and Indonesian exporters raised concerns over the policy, largely because details of the implementation had yet to be announced,” he told Bernama.
The framework, announced by President Prabowo Subianto in May, is being implemented through Danantara Sumberdaya Indonesia (DSI), a state-linked entity tasked with overseeing exports of selected strategic commodities, including crude palm oil (CPO), coal and ferroalloys.
It complements Indonesia’s revised Foreign Exchange Earnings from Natural Resource Exports (DHE SDA) regulation, which requires a larger share of export proceeds to remain within the domestic financial system.
Ahmad Parveez noted that recent clarifications from Indonesian authorities indicated the framework was focused on strengthening monitoring, reporting and price-fairness assessments rather than intervening directly in existing commercial contracts or established customer relationships.
As such, he said, any market adjustments were likely to be temporary and confined to administrative alignment during the transition period.
Ahmad Parveez said no significant change in Malaysia’s market share was expected at this stage, emphasising that Malaysia’s palm oil exports were largely determined by available supply and prevailing market conditions.
“Even if there were a temporary supply gap from Indonesia, Malaysia will not be able to fully replace Indonesia’s volume in the global market,” he said.
According to the Indonesian Palm Oil Association (GAPKI), Indonesia exported 32.34 million tonnes of palm oil and related products in 2025.
Malaysia exported about 16.9 million tonnes of palm oil and palm-based products during the same period, according to MPOB data.
https://www.malaymail.com/news/money/2026/06/20/indonesias-new-palm-oil-export-rules-draw-scrutiny-from-malaysia-traders/224545
---------
US, China, or India? Anwar explains why Malaysia doesn’t have to choose
SEBERANG PERAI, June 20 — Prime Minister Datuk Seri Anwar Ibrahim said today that Malaysia’s policy of engaging all major powers while maintaining independence and neutrality has increased investor confidence and created new economic opportunities for the country.
Speaking at the grand opening of the MKS Inc Super Center Factory, Anwar said that for an emerging economy, the confidence of international investors is essential for long-term economic progress.
While the United States remains Malaysia’s primary trading and investment partner, Anwar noted that the importance of China, India, and Germany continues to grow, contributing to a more diversified economic base.
The expansion of MKS Instruments’ operations in Malaysia reflects this trend, indicating confidence in the nation’s industrial ecosystem and professional talent pool.
“That’s why I’m particularly excited with the presence of MKS Instruments to showcase, expand your activities, because there are many areas that we can jointly benefit,” he said.
Anwar expressed a desire for greater efficiency in governance, asking MKS Inc President and CEO John Lee for advice on how the government can move from facilitating investment to accelerating the process.
This strategy of international engagement allows Malaysia to maintain strong ties with global powers despite geopolitical tensions.
Anwar cited his recent visit to Kazan and the visit of US President Trump to Malaysia last year as examples of the country’s approach to engage all nations while maintaining neutrality on contentious global issues.
“That shows the display of our centrality, the position that Malaysia takes is to make sure that we engage all countries and maintain our independence, neutrality, to express our position in some of the more contentious issues affecting the world. But we welcome the participation of all,” he said.
The prime minister also cited a recent agreement with Turkmenistan, which allows Petronas to participate in the development of two major gas blocks, as a result of this diplomatic approach.
Regarding the development of the semiconductor and advanced technology sectors, Anwar stressed the need for closer cooperation between universities and industry players to ensure the workforce meets future demands.
“We don’t have all the answers. We don’t claim to know everything, particularly when the technology is new,” he said, noting the need to determine the best facilities and training to meet industry standards.
Anwar further argued that while specialisation is necessary for advanced industries, education must remain comprehensive and continue to emphasise values and humanity.
“Education must be comprehensive, must be humane. But then you need to specialise. And this is where we need to benefit from the experience and expertise of others,” he said.
https://www.malaymail.com/news/malaysia/2026/06/20/us-china-or-india-anwar-explains-why-malaysia-doesnt-have-to-choose/224522
---------
Sustainability rhetoric vs. economic reality: Can we square the circle?
Global economic shocks and climate volatility are no longer temporary disruptions; they are structural crises deeply embedded in our strained natural systems. For resource-rich nations like Indonesia, surviving the next shock requires rewriting the global incentive structure to value nature on the national balance sheet and fairly compensate the smallholders on the front lines. Kanni Wignaraja and Sara Ferrer Olivella
The recent military escalation in the Middle East has shown, once again, how quickly shocks travel through the global economy and across markets, and are felt locally. Net oil importers suffered fiscal pressures, while increasing fertilizer prices will ultimately raise food prices almost everywhere. For the poorest households, which spend most of their income on essentials like food, it translated into an affordability shock almost overnight. These episodes are often treated as temporary disruptions, but they reflect something deeper and structural. Around 90 percent of people globally live with degraded land, polluted air, or water stress—evidence that shocks occur within already strained systems. Food systems, energy systems and ecosystems are deeply interconnected. When one is stressed, effects cascade across the others. The health of the “next crop” illustrates these systemic linkages. If costly fertilizer remains out-of-reach for small farmers, output falls and incomes suffer. Yet, overuse elsewhere is already eroding productivity: half of global food supply is produced in areas where nitrogen use reduces yields, while pollution costs reach up to US$3.4 trillion annually. Resilience, then, is not just about shock response, but whether the underlying production systems and natural resources remain viable over time. For much of modern history, economic growth has paralleled environmental harm. Today, developing countries face a steeper challenge: grow, create jobs and protect nature simultaneously. This reflects a structural reality: economic activity is embedded in natural systems—land, water and air—and cannot replace them when they degrade. Is there an industrial country that has managed its industrialization process without placing significant strain on its natural resource base? Climate volatility, biodiversity loss and ecosystem degradation are already undermining productivity, supply chains and livelihoods. The degradation of ecosystem services alone could cost the global economy up to $2.7 trillion annually by 2030. For Indonesia, the risk is particularly material as around a third of its GDP depends on nature linked sectors.
Recent evidence points to forest and ecosystem loss affecting rainfall, agricultural productivity and growth, with some countries already experiencing measurable GDP losses through disrupted water cycles. At the same time, investments in adaptation and resilience deliver strong returns, generating more than $10 in benefits for every dollar invested.
These realities are pushing nature and climate concerns to the forefront of public policy and decision-making. Pathways to economic growth without environmental harm exist, but not everywhere. Why have economic systems been so slow to change, and why have production, consumption, and finance not followed suit? Is this a question of political constraint, or do underlying incentives continue to reinforce growth patterns that harm the very foundations of our lives? The answer lies less in any single villain than in the structure of incentives. The gains from today’s patterns are concentrated and immediate, while the costs are diffuse and deferred, which is part of why correction keeps stalling.
The “trade-off’ tensions are particularly visible in global commodity and food systems, where agriculture, trade, and finance intersect. Production continues to be supported by subsidies across agriculture, energy, water and land use, amounting to roughly $2.4 trillion each year. Consumption is guided by price. Yet environmental costs remain largely unpriced, allowing ecologically harmful goods with limited traceability to remain competitive. Financing flows reinforce these patterns, with around $7.3 trillion directed annually toward activities that deplete natural systems. Ultimately, this is not only about protecting natural assets, but about human security and sustained progress. For countries like Indonesia, rich in natural capital, this means bringing nature and climate risks onto the balance sheet and into national accounts. From palm oil and coffee in Sumatra to cacao in Sulawesi, over 40 million people sit at the center of global supply chains. They are expected to manage climate risks, meet evolving sustainability standards—many set in high-income consumer markets such as the EU’s new deforestation rules—and remain competitive, often with limited access to finance, technology and markets. The imbalance is stark. Smallholder farmers who underpin these sectors operate on thin margins, bearing most of the risk while capturing only a fraction of value. In oil palm, for example, smallholders capture only around 6 percent of the value in a $280 billion global industry, while downstream firms retain roughly two-thirds of profits.
This article was published in thejakartapost.com with the title "". Click to read: https://www.thejakartapost.com/opinion/2026/06/20/sustainability-rhetoric-vs-economic-reality-can-we-square-the-circle.
Indonesia’s new palm oil export rules draw scrutiny from Malaysia, traders
JAKARTA, June 20 — Indonesia’s plan to tighten oversight of strategic commodity exports through a new state-linked monitoring framework is being closely watched by industry players in Malaysia as well as buyers and traders in major markets, with analysts assessing its potential implications for the global palm oil trade.
The framework forms part of a broader government effort to improve oversight of export transactions, curb practices such as under-invoicing and transfer pricing, and retain a greater share of export earnings within the domestic financial system.
The development is significant for the palm oil industry as Indonesia and Malaysia together account for more than 80 per cent of global palm oil exports, making policy changes in either country closely followed by international buyers and traders.
According to projections by the United States Department of Agriculture (USDA), Indonesia is expected to produce about 46 million tonnes of palm oil in the 2024/25 marketing year, while Malaysia is projected to produce around 19.4 million tonnes, maintaining their positions as the world’s two largest producers.
Exporters seek clarity
Initial concerns over the policy were shared by exporters in both Malaysia and Indonesia, said Minister Counsellor (Economy) at the Malaysian Embassy in Jakarta, Ahmad Akmal Muhamad.
He said businesses had sought greater clarity on how the framework would be implemented, particularly on whether existing export documentation and commercial procedures would be replaced under the new system.
“Both Malaysian and Indonesian exporters raised concerns over the policy, largely because details of the implementation had yet to be announced,” he told Bernama.
The framework, announced by President Prabowo Subianto in May, is being implemented through Danantara Sumberdaya Indonesia (DSI), a state-linked entity tasked with overseeing exports of selected strategic commodities, including crude palm oil (CPO), coal and ferroalloys.
It complements Indonesia’s revised Foreign Exchange Earnings from Natural Resource Exports (DHE SDA) regulation, which requires a larger share of export proceeds to remain within the domestic financial system.
Exporters seek clarity
Initial concerns over the policy were shared by exporters in both Malaysia and Indonesia, said Minister Counsellor (Economy) at the Malaysian Embassy in Jakarta, Ahmad Akmal Muhamad.
He said businesses had sought greater clarity on how the framework would be implemented, particularly on whether existing export documentation and commercial procedures would be replaced under the new system.
“Both Malaysian and Indonesian exporters raised concerns over the policy, largely because details of the implementation had yet to be announced,” he told Bernama.
The framework, announced by President Prabowo Subianto in May, is being implemented through Danantara Sumberdaya Indonesia (DSI), a state-linked entity tasked with overseeing exports of selected strategic commodities, including crude palm oil (CPO), coal and ferroalloys.
It complements Indonesia’s revised Foreign Exchange Earnings from Natural Resource Exports (DHE SDA) regulation, which requires a larger share of export proceeds to remain within the domestic financial system.
Ahmad Parveez noted that recent clarifications from Indonesian authorities indicated the framework was focused on strengthening monitoring, reporting and price-fairness assessments rather than intervening directly in existing commercial contracts or established customer relationships.
As such, he said, any market adjustments were likely to be temporary and confined to administrative alignment during the transition period.
Ahmad Parveez said no significant change in Malaysia’s market share was expected at this stage, emphasising that Malaysia’s palm oil exports were largely determined by available supply and prevailing market conditions.
“Even if there were a temporary supply gap from Indonesia, Malaysia will not be able to fully replace Indonesia’s volume in the global market,” he said.
According to the Indonesian Palm Oil Association (GAPKI), Indonesia exported 32.34 million tonnes of palm oil and related products in 2025.
Malaysia exported about 16.9 million tonnes of palm oil and palm-based products during the same period, according to MPOB data.
https://www.malaymail.com/news/money/2026/06/20/indonesias-new-palm-oil-export-rules-draw-scrutiny-from-malaysia-traders/224545
---------
US, China, or India? Anwar explains why Malaysia doesn’t have to choose
SEBERANG PERAI, June 20 — Prime Minister Datuk Seri Anwar Ibrahim said today that Malaysia’s policy of engaging all major powers while maintaining independence and neutrality has increased investor confidence and created new economic opportunities for the country.
Speaking at the grand opening of the MKS Inc Super Center Factory, Anwar said that for an emerging economy, the confidence of international investors is essential for long-term economic progress.
While the United States remains Malaysia’s primary trading and investment partner, Anwar noted that the importance of China, India, and Germany continues to grow, contributing to a more diversified economic base.
The expansion of MKS Instruments’ operations in Malaysia reflects this trend, indicating confidence in the nation’s industrial ecosystem and professional talent pool.
“That’s why I’m particularly excited with the presence of MKS Instruments to showcase, expand your activities, because there are many areas that we can jointly benefit,” he said.
Anwar expressed a desire for greater efficiency in governance, asking MKS Inc President and CEO John Lee for advice on how the government can move from facilitating investment to accelerating the process.
This strategy of international engagement allows Malaysia to maintain strong ties with global powers despite geopolitical tensions.
Anwar cited his recent visit to Kazan and the visit of US President Trump to Malaysia last year as examples of the country’s approach to engage all nations while maintaining neutrality on contentious global issues.
“That shows the display of our centrality, the position that Malaysia takes is to make sure that we engage all countries and maintain our independence, neutrality, to express our position in some of the more contentious issues affecting the world. But we welcome the participation of all,” he said.
The prime minister also cited a recent agreement with Turkmenistan, which allows Petronas to participate in the development of two major gas blocks, as a result of this diplomatic approach.
Regarding the development of the semiconductor and advanced technology sectors, Anwar stressed the need for closer cooperation between universities and industry players to ensure the workforce meets future demands.
“We don’t have all the answers. We don’t claim to know everything, particularly when the technology is new,” he said, noting the need to determine the best facilities and training to meet industry standards.
Anwar further argued that while specialisation is necessary for advanced industries, education must remain comprehensive and continue to emphasise values and humanity.
“Education must be comprehensive, must be humane. But then you need to specialise. And this is where we need to benefit from the experience and expertise of others,” he said.
https://www.malaymail.com/news/malaysia/2026/06/20/us-china-or-india-anwar-explains-why-malaysia-doesnt-have-to-choose/224522
---------
Sustainability rhetoric vs. economic reality: Can we square the circle?
Global economic shocks and climate volatility are no longer temporary disruptions; they are structural crises deeply embedded in our strained natural systems. For resource-rich nations like Indonesia, surviving the next shock requires rewriting the global incentive structure to value nature on the national balance sheet and fairly compensate the smallholders on the front lines. Kanni Wignaraja and Sara Ferrer Olivella
The recent military escalation in the Middle East has shown, once again, how quickly shocks travel through the global economy and across markets, and are felt locally. Net oil importers suffered fiscal pressures, while increasing fertilizer prices will ultimately raise food prices almost everywhere. For the poorest households, which spend most of their income on essentials like food, it translated into an affordability shock almost overnight. These episodes are often treated as temporary disruptions, but they reflect something deeper and structural. Around 90 percent of people globally live with degraded land, polluted air, or water stress—evidence that shocks occur within already strained systems. Food systems, energy systems and ecosystems are deeply interconnected. When one is stressed, effects cascade across the others. The health of the “next crop” illustrates these systemic linkages. If costly fertilizer remains out-of-reach for small farmers, output falls and incomes suffer. Yet, overuse elsewhere is already eroding productivity: half of global food supply is produced in areas where nitrogen use reduces yields, while pollution costs reach up to US$3.4 trillion annually. Resilience, then, is not just about shock response, but whether the underlying production systems and natural resources remain viable over time. For much of modern history, economic growth has paralleled environmental harm. Today, developing countries face a steeper challenge: grow, create jobs and protect nature simultaneously. This reflects a structural reality: economic activity is embedded in natural systems—land, water and air—and cannot replace them when they degrade. Is there an industrial country that has managed its industrialization process without placing significant strain on its natural resource base? Climate volatility, biodiversity loss and ecosystem degradation are already undermining productivity, supply chains and livelihoods. The degradation of ecosystem services alone could cost the global economy up to $2.7 trillion annually by 2030. For Indonesia, the risk is particularly material as around a third of its GDP depends on nature linked sectors.
Recent evidence points to forest and ecosystem loss affecting rainfall, agricultural productivity and growth, with some countries already experiencing measurable GDP losses through disrupted water cycles. At the same time, investments in adaptation and resilience deliver strong returns, generating more than $10 in benefits for every dollar invested.
These realities are pushing nature and climate concerns to the forefront of public policy and decision-making. Pathways to economic growth without environmental harm exist, but not everywhere. Why have economic systems been so slow to change, and why have production, consumption, and finance not followed suit? Is this a question of political constraint, or do underlying incentives continue to reinforce growth patterns that harm the very foundations of our lives? The answer lies less in any single villain than in the structure of incentives. The gains from today’s patterns are concentrated and immediate, while the costs are diffuse and deferred, which is part of why correction keeps stalling.
The “trade-off’ tensions are particularly visible in global commodity and food systems, where agriculture, trade, and finance intersect. Production continues to be supported by subsidies across agriculture, energy, water and land use, amounting to roughly $2.4 trillion each year. Consumption is guided by price. Yet environmental costs remain largely unpriced, allowing ecologically harmful goods with limited traceability to remain competitive. Financing flows reinforce these patterns, with around $7.3 trillion directed annually toward activities that deplete natural systems. Ultimately, this is not only about protecting natural assets, but about human security and sustained progress. For countries like Indonesia, rich in natural capital, this means bringing nature and climate risks onto the balance sheet and into national accounts. From palm oil and coffee in Sumatra to cacao in Sulawesi, over 40 million people sit at the center of global supply chains. They are expected to manage climate risks, meet evolving sustainability standards—many set in high-income consumer markets such as the EU’s new deforestation rules—and remain competitive, often with limited access to finance, technology and markets. The imbalance is stark. Smallholder farmers who underpin these sectors operate on thin margins, bearing most of the risk while capturing only a fraction of value. In oil palm, for example, smallholders capture only around 6 percent of the value in a $280 billion global industry, while downstream firms retain roughly two-thirds of profits.
This article was published in thejakartapost.com with the title "". Click to read: https://www.thejakartapost.com/opinion/2026/06/20/sustainability-rhetoric-vs-economic-reality-can-we-square-the-circle.
June 20, 2026
Palm, Coconut and Soybean Drive Most of the Biodiversity Loss Hidden in Everyday Products
By 2020, the world’s oil crop fields had committed roughly 1.5 percent of all land-dwelling plant and vertebrate species to potential long-term extinction, purely through the land they occupy.
That comes from a team led by Stephan Pfister at ETH Zurich, writing in Nature Food. They built spatial maps of where 19 oil crops actually grow, layered on satellite data and agricultural statistics, then ran the whole thing through a model of global trade that follows a soybean from a Brazilian field all the way to a steak on a plate in Shanghai or Stuttgart. The result is the first attempt to tally the biodiversity cost of oil crops across their entire supply chain, from seedling to shopping basket. “From the perspective of environmental protection, biodiversity loss is as big a problem as climate change,” says Pfister, explaining why he wanted the numbers in the first place.
And the numbers are bigger than the field expected. The 1.5 percent estimate is almost three times higher than an earlier reckoning, mostly because the new work pays attention to where crops sit and how intensively the land is farmed, rather than treating a hectare in Borneo the same as a hectare in Kansas.
Three crops, three quarters of the damage
Of those 19 crops, the story collapses onto just three. “Three of which caused a particularly large share of the impacts: oil palm, soybean and coconut,” says Shuntian Wang, a doctoral student on the team. Together they account for around three-quarters of the biodiversity loss the study attributes to oil crops. What makes the split so striking is how little land some of them need to do it. Oil palm covers under a tenth of global oil crop area yet drives about a third of the harm; coconut, on less than 4 percent of the land, manages nearly a quarter. Soybean, by contrast, sprawls across 39 percent of the area and accounts for only 18 percent of the damage.
Geography explains the lopsidedness. Oil palm and coconut are tropical creatures, bound to the wet belt around the equator where Southeast Asian rainforest holds some of the densest, most irreplaceable biodiversity on Earth. Clear a hectare there and you erase species that exist nowhere else; clear a hectare of temperate cropland and the loss, while real, is shallower. So tropical regions, with just 43 percent of the harvested area, soak up 78 percent of the impacts. Even within a single crop the contrast bites: the United States grows about 26 percent of the world’s soybeans but carries 7 percent of soybean’s biodiversity burden, while Brazil, on a similar slice of land, carries 60.
The damage gets posted somewhere else
Here is the part that ought to make wealthy consumers shift in their seats. More than half of all this loss is outsourced, exported through trade to the places that grow the crops while the benefits land elsewhere. The pattern is stark at the national scale. China outsources roughly 77 percent of its oil-crop biodiversity footprint, the EU around 79, North America a remarkable 86. Between them, the EU, China and the United States are on the hook for over 80 percent of these externalised impacts. The EU’s signature is palm oil pulled in from Indonesia; China’s is soybean, most of it crushed into cake and fed to pigs and poultry to satisfy a soaring appetite for meat.
What drove the surge, though, was not the thing most people would guess. Between 1995 and 2020 the impacts climbed by about 80 percent, and population growth turns out to be the junior partner. Using a technique that splits the increase into its causes, the team found that rising consumption per person did most of the lifting, contributing roughly three-quarters of the net rise. China’s per-person demand nearly quadrupled over the period. Tellingly, the average European still leaves a far heavier oil-crop footprint than the average Chinese consumer, so the gap is one of trajectory, not yet of parity.
There is a sting in the tail for green policy, too. As the EU has leaned into bio-based materials, bioplastics, biodiesel and the rest, to shave its carbon emissions, its demand for tropical oil crops has climbed, and its non-food biodiversity impacts have more than doubled. Cutting one planetary problem can feed another. Worth remembering before the next switch to something labelled renewable.
None of this unwinds quickly, which is rather the point. Because the metric counts long-term extinction debt, the damage already done lingers even if the bulldozers stop tomorrow. “Even if there is no new deforestation, the impact of current agriculture remains,” says Pfister. His preferred remedy is less about guilt-tripping shoppers and more about where the money goes: “An important lever is investing in better production and in the protection of ecosystems in countries of origin.” The trouble is that demand is slippery, and squeeze it in one place and it tends to pop up in another. Whether the world can hold that line, on a crop most of us never knowingly buy, is now the open question.
https://scienceblog.com/palm-coconut-and-soybean-drive-most-of-the-biodiversity-loss-hidden-in-everyday-products/#google_vignette
Palm, Coconut and Soybean Drive Most of the Biodiversity Loss Hidden in Everyday Products
By 2020, the world’s oil crop fields had committed roughly 1.5 percent of all land-dwelling plant and vertebrate species to potential long-term extinction, purely through the land they occupy.
That comes from a team led by Stephan Pfister at ETH Zurich, writing in Nature Food. They built spatial maps of where 19 oil crops actually grow, layered on satellite data and agricultural statistics, then ran the whole thing through a model of global trade that follows a soybean from a Brazilian field all the way to a steak on a plate in Shanghai or Stuttgart. The result is the first attempt to tally the biodiversity cost of oil crops across their entire supply chain, from seedling to shopping basket. “From the perspective of environmental protection, biodiversity loss is as big a problem as climate change,” says Pfister, explaining why he wanted the numbers in the first place.
And the numbers are bigger than the field expected. The 1.5 percent estimate is almost three times higher than an earlier reckoning, mostly because the new work pays attention to where crops sit and how intensively the land is farmed, rather than treating a hectare in Borneo the same as a hectare in Kansas.
Three crops, three quarters of the damage
Of those 19 crops, the story collapses onto just three. “Three of which caused a particularly large share of the impacts: oil palm, soybean and coconut,” says Shuntian Wang, a doctoral student on the team. Together they account for around three-quarters of the biodiversity loss the study attributes to oil crops. What makes the split so striking is how little land some of them need to do it. Oil palm covers under a tenth of global oil crop area yet drives about a third of the harm; coconut, on less than 4 percent of the land, manages nearly a quarter. Soybean, by contrast, sprawls across 39 percent of the area and accounts for only 18 percent of the damage.
Geography explains the lopsidedness. Oil palm and coconut are tropical creatures, bound to the wet belt around the equator where Southeast Asian rainforest holds some of the densest, most irreplaceable biodiversity on Earth. Clear a hectare there and you erase species that exist nowhere else; clear a hectare of temperate cropland and the loss, while real, is shallower. So tropical regions, with just 43 percent of the harvested area, soak up 78 percent of the impacts. Even within a single crop the contrast bites: the United States grows about 26 percent of the world’s soybeans but carries 7 percent of soybean’s biodiversity burden, while Brazil, on a similar slice of land, carries 60.
The damage gets posted somewhere else
Here is the part that ought to make wealthy consumers shift in their seats. More than half of all this loss is outsourced, exported through trade to the places that grow the crops while the benefits land elsewhere. The pattern is stark at the national scale. China outsources roughly 77 percent of its oil-crop biodiversity footprint, the EU around 79, North America a remarkable 86. Between them, the EU, China and the United States are on the hook for over 80 percent of these externalised impacts. The EU’s signature is palm oil pulled in from Indonesia; China’s is soybean, most of it crushed into cake and fed to pigs and poultry to satisfy a soaring appetite for meat.
What drove the surge, though, was not the thing most people would guess. Between 1995 and 2020 the impacts climbed by about 80 percent, and population growth turns out to be the junior partner. Using a technique that splits the increase into its causes, the team found that rising consumption per person did most of the lifting, contributing roughly three-quarters of the net rise. China’s per-person demand nearly quadrupled over the period. Tellingly, the average European still leaves a far heavier oil-crop footprint than the average Chinese consumer, so the gap is one of trajectory, not yet of parity.
There is a sting in the tail for green policy, too. As the EU has leaned into bio-based materials, bioplastics, biodiesel and the rest, to shave its carbon emissions, its demand for tropical oil crops has climbed, and its non-food biodiversity impacts have more than doubled. Cutting one planetary problem can feed another. Worth remembering before the next switch to something labelled renewable.
None of this unwinds quickly, which is rather the point. Because the metric counts long-term extinction debt, the damage already done lingers even if the bulldozers stop tomorrow. “Even if there is no new deforestation, the impact of current agriculture remains,” says Pfister. His preferred remedy is less about guilt-tripping shoppers and more about where the money goes: “An important lever is investing in better production and in the protection of ecosystems in countries of origin.” The trouble is that demand is slippery, and squeeze it in one place and it tends to pop up in another. Whether the world can hold that line, on a crop most of us never knowingly buy, is now the open question.
https://scienceblog.com/palm-coconut-and-soybean-drive-most-of-the-biodiversity-loss-hidden-in-everyday-products/#google_vignette
June 19, 2026
Malaysia Should Channel US Trade Representative Section 301 Pressure Into Forced Labour Compliance
Malaysia should take decisive action in response to the US’ tariff threat for failing to prohibit imports made with forced labour. Eliminating such imports is in everyone’s best interest.
The US Trade Representative (USTR) report on Section 301 findings, released on 2 June 2026, included Malaysia among the 60 economies to be sanctioned on grounds of forced labour. Specifically, the USTR asserted that these countries either failed to “impose a legal prohibition for the importation of goods wholly or in part produced with forced labour and to effectively enforce such a prohibition”. Effective enforcement means that the government has taken measures to compel companies to observe the legal prohibition.
Consequently, the report proposes a 10 per cent tariff on all products imported from Malaysia, except for exempted goods such as goods already covered by other tariffs, essential raw materials that are difficult to source domestically, products whose tariffs could harm the US economy, and items that cannot be produced in sufficient quantities in the US. At-risk sectors include electronics, rubber gloves, garments and palm fruit, which have been listed in the Bureau of International Labor Affairs (ILAB) since September 2024. The ILAB maintains a list of goods and their source countries which it has reason to believe are produced by child labour or forced labour in violation of international standards. Some of Malaysia’s companies in these sectors have previously been found to use forced labour in their domestic operations, and there is growing awareness about the problem. However, it is unlikely that companies are scrutinising their imported inputs for forced labour.
The US’ latest action, though, implicates Malaysia as long as she imports inputs from countries that are linked with the use of forced labour, particularly in these four sectors. For example, Malaysia imports parts of electronics goods and textiles from China, which is also identified for the use of forced labour in the same sectors. Similarly, imports of natural rubber from Vietnam and palm oil from Indonesia are at risk for the use of forced labour in these sectors.
Malaysia has progressively strengthened its legislation against the use of forced labour. In 2021, Malaysia launched its first National Action Plan on Forced Labour (NAPFL) 2021–2025, developed by the Ministry of Human Resources (MOHR) with the support of the International Labour Organisation (ILO). The NAPFL focuses on awareness, enforcement, labour migration and access to remedy and support services, with the aim of eliminating forced labour in Malaysia by 2030.
Malaysia also officially ratified the Protocol of 2014 to the Forced Labour Convention on 21 March 2022, becoming the 58th country globally and the second ASEAN member state to do so. The legally-binding protocol requires states to implement concrete measures to prevent forced labour, protect victims, and provide access to remedy.
The Employment Act 1955 (Amendment) 2022, which took effect on 1 January 2023, introduced explicit prohibitions on using forced labour, with penalties for infringement.
Under the Agreement on Reciprocal Trade (ART) signed on 26 October 2025, Malaysia committed to adopt and implement a prohibition on the importation of goods mined, produced, or manufactured wholly or in part by forced or compulsory labour.
Malaysia is continuing to strengthen its response through the development of the next National Action Plan on Forced Labour (NAPFL) for 2026–2030. A workshop organised by the Ministry of Human Resources (KESUMA) on 20–21 November 2025, with ILO technical support, brought together government, employers, workers and civil society representatives to review the draft plan. Aimed at driving Malaysia toward eliminating forced labour by 2030, the plan includes renewed commitments to prevention, stronger governance of labour migration and recruitment, improved enforcement and compliance systems, and expanded protection and remedy for victims, including migrant workers.
Although these changes signal progressive improvements, what the US wants is not just stringent regulations for the use of forced labour in domestic production but equally stringent regulations on imported inputs with forced labour.
What the US requires, and what Malaysia has yet to demonstrate, is a functioning, end-to-end enforcement architecture, and not just regulatory oversight.
The Ministry of Investment, Trade, and Industry (MITI), in response to the findings, has stated that the government is seeking to address the regulatory gap, referring to Malaysia’s lack of a specific import prohibition law to screen goods and raw materials entering the country from third countries with forced labour content.
This clearly understates the extent of the problem, as the Section 301 findings also emphasise effective enforcement. What the US requires, and what Malaysia has yet to demonstrate, is a functioning, end-to-end enforcement architecture, and not just regulatory oversight.
The immediate policy priority for Malaysia is therefore threefold. First, MITI must move urgently to legislate the ART-committed import prohibition on the importation of goods that use forced labour. Indonesia, for example, issued Ministerial Regulation No. 9 of 2026 which regulates the import ban on products produced by forced labour, following the signing of the Reciprocal Trade Agreement (ART). Second, the Royal Malaysian Customs Department must be resourced and trained to administer detention of goods made with forced labour, with digital traceability tools embedded in its clearance processes. Third, beyond screening at customs, firms in Malaysia must embed digitised social compliance in their operations to include forced labour screening of their international vendors. Bursa Malaysia’s environmental, social and governance (ESG) reporting framework, while a useful signal for listed companies, needs improvements on reporting quality and depth. Importantly, it must be complemented by compliance monitoring for small- and medium-sized manufacturers, as 40 per cent have yet to adopt ESG practices.
Effectively closing the regulatory and enforcement gap will allow Malaysia to meet the standards of the US, as well as the EU’s Forced Labour Regulation which also strictly prohibits the import, sale and export of any products made with forced labour.
https://fulcrum.sg/malaysia-should-channel-us-trade-representative-section-301-pressure-into-forced-labour-compliance/
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Indonesia's Prabowo taps Danantara to drive agenda, testing fund's capacity
Summary
JAKARTA, June 19 (Reuters) - A rapid expansion of Indonesia's sovereign wealth fund Danantara's mandate is entrenching its role as a key vehicle for President Prabowo Subianto's nationalist agenda, even as doubts grow over its execution capacity and political independence.
Prabowo rattled global markets last month by announcing Indonesia will centralise exports of strategic commodities, starting with coal, palm oil and ferroalloys. In a fiery speech to parliament, he called it a necessary state intervention to halt decades of exploitation of the resource-rich country.
It was a familiar rallying cry, part of the former general's nationalist narrative that he has stressed since taking power in 2024.
Rather than tasking existing government departments, Prabowo handed execution to a new unit, Danantara Sumberdaya Indonesia (DSI), signalling the fund's expanding role in Southeast Asia's biggest economy. Danantara reports directly to the president.
"It's increasingly clear that all its (Danantara's) functions are decided based on politics, whether for political purposes or to meet (Prabowo's) political promises," Yose Rizal Damuri, executive director and economist with the Center for Strategic and International Studies (CSIS), said.
"Instead of improving state institutions, he created a new body and is giving it new roles," Damuri said.
Within days, another presidential decree created a development investment arm inside Danantara that can draw finance from the state budget.
It is expected to focus on projects deemed nationally strategic, even if they offer low commercial returns, three people familiar with the discussions said, declining to be identified because they were not authorised to speak to media.
The comments shed light on potential areas of focus not previously reported. One of the sources said this could include a role in a revived national car project - another of Prabowo's policy promises.
Danantara and the presidential palace did not respond to requests for comment.
During a speech to the World Economic Forum in January, Prabowo said Danantara was built with strong oversight and institutional responsibility, ensuring its governance and management met the best international standards.
He also warned officials at the fund's first anniversary on March 11 that he had no tolerance for falsified data, sugarcoated updates or manipulated reports.
CHICKEN FARMS TO HOTELS Danantara is overseeing a wide range of projects, from investing in chicken farms and supporting the president's troubled free school meals programme to developing hotels in Mecca for Indonesian pilgrims.
Launched in early 2025, Danantara was mandated to manage about $900 billion of state assets across 1,000 companies and use dividends to maximise investment returns.
It was pitched as Indonesia's version of Singapore's state investment company Temasek, run on commercial principles, independent of political considerations.
Some analysts now see its remit extending well beyond that.
Economists Krisna Gupta, Riandy Laksono and Rizki Siregar, writing in the Bulletin of Indonesian Economic Studies (BIES), said Danantara is "at once a sovereign wealth fund, a development bank and a public service provider."
The fund has already been drawn into government policy priorities, including tariff negotiations with Washington and helping stabilise a stock market selloff.YET TO PUBLISH FINANCIAL REPORTSandra Sahelangi, senior adviser at Flint Global, a corporate consultancy, said a broad-mandate fund could remain credible if it showed results and was insulated from day-to-day politics.
"The breadth (of the mandate) by itself is not unprecedented, but it does sit on the outer edge of what international investors are accustomed to underwriting in a single entity," she said, adding investors would also expect a clear separation of commercial investments and policy tasks.
Danantara has yet to publish a financial report ahead of an end-June deadline. Fund officials say it takes time to consolidate reports at all of its units.
The lack of publicly available data makes it difficult to assess Danantara's operational capacity, said Tabita Diela, a researcher at the Center of Economic and Law Studies (CELIOS).
CELIOS and other think tanks and advocacy groups have created a joint platform, opens new tab to monitor Danantara's projects and funding amid a lack of disclosure, she said.REGULATIONS IN FLUX?Supporters say Indonesia needs a powerful institution to improve returns on state assets, discipline sprawling state companies and squeeze more from natural resources - goals the existing bureaucracy had failed to achieve.
Still, the export mandate illustrates the gulf between the fund's expanding responsibility and capacity.
Regulations issued after Prabowo's speech stipulate that DSI must handle commodity exports from next year, a plan analysts say requires major investments and infrastructure.
At the time of the announcement, DSI only had one employee - Chief Executive Luke Mahony, Danantara's Chief Investment Officer Pandu Sjahrir told a local media roundtable.
Another Danantara official said on May 31 that DSI had started hiring staff with commodities know-how.
DSI has since assured industry associations that its role would not be as involved as initially envisaged, according to meeting minutes seen by Reuters, which cited significant capital needs and business risks.
It is unclear whether this will prompt revised regulations.
A Danantara unit raised $1.5 billion in its debut U.S. dollar bond sale last week. The fund said the oversubscribed sale reflected strong investor confidence and should bolster domestic confidence in its framework.
A banking source with knowledge of the issuance, however, said investors largely bought the bonds because they offered higher returns than Indonesian government debt while carrying similar exposure to the state, rather than as a judgment on Danantara's operational capacity.
Reporting by Gayatri Suroyo, Stefanno Sulaiman and Bernadette Christina in Jakarta, and Yantoultra Ngui in Singapore; Editing by Gibran Peshimam and Ed Davies Reuters
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Prabowo Orders Higher Palm Oil Prices for Farmers Amid Global CPO Rally
Jakarta. Indonesia is moving to raise farm-gate palm oil prices after President Prabowo Subianto instructed authorities to align fresh fruit bunch (FFB) prices with gains in global crude palm oil markets.
“The president has instructed us to side with smallholder palm oil farmers,” Agriculture Minister Andi Amran Sulaiman said after a meeting with Prabowo at the Presidential Palace in Jakarta.
The directive follows government findings of what Amran described as an anomaly in domestic palm oil pricing. While global CPO prices and the US dollar have strengthened, prices received by farmers for FFB have declined in several regions.
The minister said the issue affects around 15 million palm oil farmers nationwide, making it a significant concern for rural incomes.
Benchmark palm oil futures were trading at 4,573 ringgit per ton on June 18, little changed from the previous day and up 11.48% from a year ago, even after a modest 0.26% decline over the past month.
To address the situation, the Agriculture Ministry has convened hundreds of palm oil industry players from across the country and requested assistance from the national police to monitor companies that have yet to adjust FFB prices in line with market developments.
Amran said letters had been sent to National Police Chief Listyo Sigit Prabowo and regional law enforcement authorities seeking support in overseeing compliance.
The minister expressed confidence that FFB prices would recover fully within the next week and said longer-term reforms could improve transparency and farmer welfare.
An important element of the government's strategy is a new one-gate export system managed by Danantara Sumberdaya Indonesia, which is expected to streamline exports and reduce inefficiencies in the palm oil supply chain. Amran said the centralized export mechanism could help ensure fairer pricing for farmers while reducing leakages in commodity trading.
Last month, the Agriculture Ministry identified 139 palm oil mills suspected of purchasing FFB from farmers below government-set benchmark prices and warned that violators could face sanctions, including possible license revocations.
Officials have linked the recent decline in FFB prices to market uncertainty surrounding the implementation of the one-gate export policy. According to the ministry, confusion among businesses over the new rules contributed to a drop in farm-gate prices, which fell by between Rp 50 and Rp 1,200 per kilogram in some regions.
FFB prices currently range from Rp 2,700 to Rp 3,200 per kilogram, depending on location
https://jakartaglobe.id/business/prabowo-orders-higher-palm-oil-prices-for-farmers-amid-global-cpo-rally
Malaysia Should Channel US Trade Representative Section 301 Pressure Into Forced Labour Compliance
Malaysia should take decisive action in response to the US’ tariff threat for failing to prohibit imports made with forced labour. Eliminating such imports is in everyone’s best interest.
The US Trade Representative (USTR) report on Section 301 findings, released on 2 June 2026, included Malaysia among the 60 economies to be sanctioned on grounds of forced labour. Specifically, the USTR asserted that these countries either failed to “impose a legal prohibition for the importation of goods wholly or in part produced with forced labour and to effectively enforce such a prohibition”. Effective enforcement means that the government has taken measures to compel companies to observe the legal prohibition.
Consequently, the report proposes a 10 per cent tariff on all products imported from Malaysia, except for exempted goods such as goods already covered by other tariffs, essential raw materials that are difficult to source domestically, products whose tariffs could harm the US economy, and items that cannot be produced in sufficient quantities in the US. At-risk sectors include electronics, rubber gloves, garments and palm fruit, which have been listed in the Bureau of International Labor Affairs (ILAB) since September 2024. The ILAB maintains a list of goods and their source countries which it has reason to believe are produced by child labour or forced labour in violation of international standards. Some of Malaysia’s companies in these sectors have previously been found to use forced labour in their domestic operations, and there is growing awareness about the problem. However, it is unlikely that companies are scrutinising their imported inputs for forced labour.
The US’ latest action, though, implicates Malaysia as long as she imports inputs from countries that are linked with the use of forced labour, particularly in these four sectors. For example, Malaysia imports parts of electronics goods and textiles from China, which is also identified for the use of forced labour in the same sectors. Similarly, imports of natural rubber from Vietnam and palm oil from Indonesia are at risk for the use of forced labour in these sectors.
Malaysia has progressively strengthened its legislation against the use of forced labour. In 2021, Malaysia launched its first National Action Plan on Forced Labour (NAPFL) 2021–2025, developed by the Ministry of Human Resources (MOHR) with the support of the International Labour Organisation (ILO). The NAPFL focuses on awareness, enforcement, labour migration and access to remedy and support services, with the aim of eliminating forced labour in Malaysia by 2030.
Malaysia also officially ratified the Protocol of 2014 to the Forced Labour Convention on 21 March 2022, becoming the 58th country globally and the second ASEAN member state to do so. The legally-binding protocol requires states to implement concrete measures to prevent forced labour, protect victims, and provide access to remedy.
The Employment Act 1955 (Amendment) 2022, which took effect on 1 January 2023, introduced explicit prohibitions on using forced labour, with penalties for infringement.
Under the Agreement on Reciprocal Trade (ART) signed on 26 October 2025, Malaysia committed to adopt and implement a prohibition on the importation of goods mined, produced, or manufactured wholly or in part by forced or compulsory labour.
Malaysia is continuing to strengthen its response through the development of the next National Action Plan on Forced Labour (NAPFL) for 2026–2030. A workshop organised by the Ministry of Human Resources (KESUMA) on 20–21 November 2025, with ILO technical support, brought together government, employers, workers and civil society representatives to review the draft plan. Aimed at driving Malaysia toward eliminating forced labour by 2030, the plan includes renewed commitments to prevention, stronger governance of labour migration and recruitment, improved enforcement and compliance systems, and expanded protection and remedy for victims, including migrant workers.
Although these changes signal progressive improvements, what the US wants is not just stringent regulations for the use of forced labour in domestic production but equally stringent regulations on imported inputs with forced labour.
What the US requires, and what Malaysia has yet to demonstrate, is a functioning, end-to-end enforcement architecture, and not just regulatory oversight.
The Ministry of Investment, Trade, and Industry (MITI), in response to the findings, has stated that the government is seeking to address the regulatory gap, referring to Malaysia’s lack of a specific import prohibition law to screen goods and raw materials entering the country from third countries with forced labour content.
This clearly understates the extent of the problem, as the Section 301 findings also emphasise effective enforcement. What the US requires, and what Malaysia has yet to demonstrate, is a functioning, end-to-end enforcement architecture, and not just regulatory oversight.
The immediate policy priority for Malaysia is therefore threefold. First, MITI must move urgently to legislate the ART-committed import prohibition on the importation of goods that use forced labour. Indonesia, for example, issued Ministerial Regulation No. 9 of 2026 which regulates the import ban on products produced by forced labour, following the signing of the Reciprocal Trade Agreement (ART). Second, the Royal Malaysian Customs Department must be resourced and trained to administer detention of goods made with forced labour, with digital traceability tools embedded in its clearance processes. Third, beyond screening at customs, firms in Malaysia must embed digitised social compliance in their operations to include forced labour screening of their international vendors. Bursa Malaysia’s environmental, social and governance (ESG) reporting framework, while a useful signal for listed companies, needs improvements on reporting quality and depth. Importantly, it must be complemented by compliance monitoring for small- and medium-sized manufacturers, as 40 per cent have yet to adopt ESG practices.
Effectively closing the regulatory and enforcement gap will allow Malaysia to meet the standards of the US, as well as the EU’s Forced Labour Regulation which also strictly prohibits the import, sale and export of any products made with forced labour.
https://fulcrum.sg/malaysia-should-channel-us-trade-representative-section-301-pressure-into-forced-labour-compliance/
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Indonesia's Prabowo taps Danantara to drive agenda, testing fund's capacity
Summary
- Danantara launched with remit to manage about $900 billion of state assets across 1,000 companies
- Analysts warn fund's broad, politicised role may undermine credibility and operational effectiveness
- Think tanks and advocacy groups launch platform to monitor projects amid lack of public data
- Danantara says strong bond debut shows investor confidence, banking source cites sovereign backing
JAKARTA, June 19 (Reuters) - A rapid expansion of Indonesia's sovereign wealth fund Danantara's mandate is entrenching its role as a key vehicle for President Prabowo Subianto's nationalist agenda, even as doubts grow over its execution capacity and political independence.
Prabowo rattled global markets last month by announcing Indonesia will centralise exports of strategic commodities, starting with coal, palm oil and ferroalloys. In a fiery speech to parliament, he called it a necessary state intervention to halt decades of exploitation of the resource-rich country.
It was a familiar rallying cry, part of the former general's nationalist narrative that he has stressed since taking power in 2024.
Rather than tasking existing government departments, Prabowo handed execution to a new unit, Danantara Sumberdaya Indonesia (DSI), signalling the fund's expanding role in Southeast Asia's biggest economy. Danantara reports directly to the president.
"It's increasingly clear that all its (Danantara's) functions are decided based on politics, whether for political purposes or to meet (Prabowo's) political promises," Yose Rizal Damuri, executive director and economist with the Center for Strategic and International Studies (CSIS), said.
"Instead of improving state institutions, he created a new body and is giving it new roles," Damuri said.
Within days, another presidential decree created a development investment arm inside Danantara that can draw finance from the state budget.
It is expected to focus on projects deemed nationally strategic, even if they offer low commercial returns, three people familiar with the discussions said, declining to be identified because they were not authorised to speak to media.
The comments shed light on potential areas of focus not previously reported. One of the sources said this could include a role in a revived national car project - another of Prabowo's policy promises.
Danantara and the presidential palace did not respond to requests for comment.
During a speech to the World Economic Forum in January, Prabowo said Danantara was built with strong oversight and institutional responsibility, ensuring its governance and management met the best international standards.
He also warned officials at the fund's first anniversary on March 11 that he had no tolerance for falsified data, sugarcoated updates or manipulated reports.
CHICKEN FARMS TO HOTELS Danantara is overseeing a wide range of projects, from investing in chicken farms and supporting the president's troubled free school meals programme to developing hotels in Mecca for Indonesian pilgrims.
Launched in early 2025, Danantara was mandated to manage about $900 billion of state assets across 1,000 companies and use dividends to maximise investment returns.
It was pitched as Indonesia's version of Singapore's state investment company Temasek, run on commercial principles, independent of political considerations.
Some analysts now see its remit extending well beyond that.
Economists Krisna Gupta, Riandy Laksono and Rizki Siregar, writing in the Bulletin of Indonesian Economic Studies (BIES), said Danantara is "at once a sovereign wealth fund, a development bank and a public service provider."
The fund has already been drawn into government policy priorities, including tariff negotiations with Washington and helping stabilise a stock market selloff.YET TO PUBLISH FINANCIAL REPORTSandra Sahelangi, senior adviser at Flint Global, a corporate consultancy, said a broad-mandate fund could remain credible if it showed results and was insulated from day-to-day politics.
"The breadth (of the mandate) by itself is not unprecedented, but it does sit on the outer edge of what international investors are accustomed to underwriting in a single entity," she said, adding investors would also expect a clear separation of commercial investments and policy tasks.
Danantara has yet to publish a financial report ahead of an end-June deadline. Fund officials say it takes time to consolidate reports at all of its units.
The lack of publicly available data makes it difficult to assess Danantara's operational capacity, said Tabita Diela, a researcher at the Center of Economic and Law Studies (CELIOS).
CELIOS and other think tanks and advocacy groups have created a joint platform, opens new tab to monitor Danantara's projects and funding amid a lack of disclosure, she said.REGULATIONS IN FLUX?Supporters say Indonesia needs a powerful institution to improve returns on state assets, discipline sprawling state companies and squeeze more from natural resources - goals the existing bureaucracy had failed to achieve.
Still, the export mandate illustrates the gulf between the fund's expanding responsibility and capacity.
Regulations issued after Prabowo's speech stipulate that DSI must handle commodity exports from next year, a plan analysts say requires major investments and infrastructure.
At the time of the announcement, DSI only had one employee - Chief Executive Luke Mahony, Danantara's Chief Investment Officer Pandu Sjahrir told a local media roundtable.
Another Danantara official said on May 31 that DSI had started hiring staff with commodities know-how.
DSI has since assured industry associations that its role would not be as involved as initially envisaged, according to meeting minutes seen by Reuters, which cited significant capital needs and business risks.
It is unclear whether this will prompt revised regulations.
A Danantara unit raised $1.5 billion in its debut U.S. dollar bond sale last week. The fund said the oversubscribed sale reflected strong investor confidence and should bolster domestic confidence in its framework.
A banking source with knowledge of the issuance, however, said investors largely bought the bonds because they offered higher returns than Indonesian government debt while carrying similar exposure to the state, rather than as a judgment on Danantara's operational capacity.
Reporting by Gayatri Suroyo, Stefanno Sulaiman and Bernadette Christina in Jakarta, and Yantoultra Ngui in Singapore; Editing by Gibran Peshimam and Ed Davies Reuters
---------
Prabowo Orders Higher Palm Oil Prices for Farmers Amid Global CPO Rally
Jakarta. Indonesia is moving to raise farm-gate palm oil prices after President Prabowo Subianto instructed authorities to align fresh fruit bunch (FFB) prices with gains in global crude palm oil markets.
“The president has instructed us to side with smallholder palm oil farmers,” Agriculture Minister Andi Amran Sulaiman said after a meeting with Prabowo at the Presidential Palace in Jakarta.
The directive follows government findings of what Amran described as an anomaly in domestic palm oil pricing. While global CPO prices and the US dollar have strengthened, prices received by farmers for FFB have declined in several regions.
The minister said the issue affects around 15 million palm oil farmers nationwide, making it a significant concern for rural incomes.
Benchmark palm oil futures were trading at 4,573 ringgit per ton on June 18, little changed from the previous day and up 11.48% from a year ago, even after a modest 0.26% decline over the past month.
To address the situation, the Agriculture Ministry has convened hundreds of palm oil industry players from across the country and requested assistance from the national police to monitor companies that have yet to adjust FFB prices in line with market developments.
Amran said letters had been sent to National Police Chief Listyo Sigit Prabowo and regional law enforcement authorities seeking support in overseeing compliance.
The minister expressed confidence that FFB prices would recover fully within the next week and said longer-term reforms could improve transparency and farmer welfare.
An important element of the government's strategy is a new one-gate export system managed by Danantara Sumberdaya Indonesia, which is expected to streamline exports and reduce inefficiencies in the palm oil supply chain. Amran said the centralized export mechanism could help ensure fairer pricing for farmers while reducing leakages in commodity trading.
Last month, the Agriculture Ministry identified 139 palm oil mills suspected of purchasing FFB from farmers below government-set benchmark prices and warned that violators could face sanctions, including possible license revocations.
Officials have linked the recent decline in FFB prices to market uncertainty surrounding the implementation of the one-gate export policy. According to the ministry, confusion among businesses over the new rules contributed to a drop in farm-gate prices, which fell by between Rp 50 and Rp 1,200 per kilogram in some regions.
FFB prices currently range from Rp 2,700 to Rp 3,200 per kilogram, depending on location
https://jakartaglobe.id/business/prabowo-orders-higher-palm-oil-prices-for-farmers-amid-global-cpo-rally
June 18, 2026
Protecting nature, protecting jobs, protecting portfolios: A practical guide for Malaysia’s financial sector
Nepomuk Dunz, Martijn Regelink, Mathilde Salin
June 17, 2026
Malaysia's economy is built on nature. As one of the world's 17 megadiverse countries, it draws on some of the richest ecosystems on earth — for agricultural productivity, water supply, soil stability, and the raw materials that power its remarkable economic development. Yet the financial system that funds these activities has only just begun to grapple with what happens when those ecosystems degrade.
The scale of exposure is significant. Over half of Malaysia's GDP has a high or very high dependency on at least one ecosystem service. For the banking sector, 54 percent of commercial lending flows to sectors highly dependent on ecosystem services — from water provision and soil stability to pollination and rainfall regulation — while 36 percent of loans finance activities that put those same ecosystems under significant pressure (Figure 1). The palm oil and construction sectors sit at the center of this dual exposure: deeply reliant on nature, and among its largest sources of stress.
The human stakes are equally significant. Construction alone supports 1.3 million jobs — 14 percent of total private-sector employment. Agriculture, including the palm oil sector, accounts for another 502,000. That is nearly 1.8 million workers in just these two sectors. When ecosystems degrade — when water sources are depleted, soils erode, or biodiversity declines — firms face rising costs, supply disruptions, and regulatory penalties. As policies like the EU Deforestation Regulation affect global market access, firms that cannot demonstrate sustainable practices risk exclusion from value chains, taking jobs with them. For the banks that finance these sectors, ecosystem degradation translates directly into credit risk.
Practical and proportionate — not bureaucratic
A legitimate concern among firms and financial institutions is that nature-risk assessment means yet another compliance layer. A new report by Bank Negara Malaysia, UNDP BIOFIN, and the World Bank — A LEAP for Nature: Advancing Nature-related Financial Risk and Opportunity Assessment in Malaysia — addresses this directly. Drawing on surveys of 83 financial institutions and 45 publicly listed companies, and five pilot LEAP assessments, its central finding is that most organizations already collect nature-relevant data — through Environmental Impact Assessments, sustainability certifications like MSPO and RSPO, and environmental compliance reporting. The real challenge is not generating new information, but connecting what already exists across sustainability, operations, and finance teams.
The report recommends a proportionate, iterative approach: start with the largest exposures, build on existing climate-risk frameworks, and deepen assessments over time. This matters because, while awareness is growing — nearly 80 percent of surveyed financial institutions are already identifying or intend to identify nature-related risks — about 60 percent still report only a limited understanding of the issues, and only 22 percent of surveyed firms have conducted a formal nature-related risk assessment (Figure 2).
Figure 2, Summary of financial institutions’ and firms’ understanding, assessment, and disclosure practices regarding nature-related Dependencies, Impacts, Risks and Opportunities.
The five pilot LEAP assessments show that this gap can be closed through action rather than deliberation. Starting with imperfect data proved far more productive than waiting for perfect methodologies. CIMB, one of Malaysia’s largest banks, has already published a Nature and Biodiversity Report aligned with the TNFD framework. Gamuda, a leading Malaysian construction and property firm and TNFD adopter, has revised its site-development strategies based on nature assessments. Another pilot financial institution has begun integrating nature-risk screening into its credit risk acceptance criteria. The lesson is clear: learning by doing works.
From risk to opportunity
Nature-risk management is not only about avoiding losses. Sustainable palm oil, green construction, nature-based solutions for flood management, and ecosystem restoration all represent growing markets. These are investment opportunities that can sustain and create quality employment — provided the financial system is equipped to identify and finance them. The report encourages financial institutions to actively seek areas where ecological benefits and financial returns intersect, from the circular economy to sustainable land use and payments for ecosystem services.
The way forward
The report offers targeted recommendations for three groups. Financial institutions can begin integrating nature considerations into existing risk frameworks, starting with their most exposed portfolios and engaging clients in high-risk sectors for better data. Firms can leverage data they already collect, bridge internal silos through cross-departmental collaboration, and build on existing climate disclosures. Public sector authorities can accelerate progress by centralizing nature data on an accessible platform, embedding nature into Malaysia's sustainable finance taxonomy, and establishing a clear pathway toward proportionate mandatory disclosure.
Malaysia's financial sector has already built substantial capacity on climate-related risks. Nature-risk assessment builds directly on that foundation. The tools are available, and the approach is designed to be proportionate. The stakes — for nature, for the financial system, and for the millions of workers whose livelihoods depend on healthy ecosystems — are too high to wait.
https://blogs.worldbank.org/en/allaboutfinance/protecting-nature--protecting-jobs--protecting-portfolios--a-pra
----------
Nigeria Spends N23billion Importing Crude Palm Oil From Other West African Countries In Three Months
Nigeria has spent a sum of N23billion importing crude palm oil from fellow West African countries within three months, a SaharaReporters' review of data provided by the National Bureau of Statistics (NBS) has shown.
Nigeria is widely regarded as the largest producer of palm oil in Africa and one of the leading producers globally.
The United States Department of Agriculture also lists Nigeria as one of the top ten producers of Palm oil in the world.
Despite this status, the country spent a sum of N23 billion importing crude palm oil from fellow West African countries.
In the same period, the country also spent N9.55 billion on the importation of cocoa powder from West African countries.
The development comes amid concerns over Nigeria's continued reliance on imports to meet domestic demand despite its vast agricultural potential and abundance of arable land.
According to the Foreign Trade Statistics report for the first quarter of 2026 released by the NBS, crude palm oil ranked among the agricultural products imported into the country between January and March 2026.
The importation of crude palm oil from neighbouring West African countries highlights the gap between local production and national consumption requirements. Although Nigeria remains a major producer of the commodity, domestic output has struggled to keep pace with growing demand from households, food processors, manufacturers and other industrial users.
In the same period, the country also spent N9.55 billion on the importation of cocoa powder from West African countries.
The development comes amid concerns over Nigeria's continued reliance on imports to meet domestic demand despite its vast agricultural potential and abundance of arable land.
According to the Foreign Trade Statistics report for the first quarter of 2026 released by the NBS, crude palm oil ranked among the agricultural products imported into the country between January and March 2026.
The importation of crude palm oil from neighbouring West African countries highlights the gap between local production and national consumption requirements. Although Nigeria remains a major producer of the commodity, domestic output has struggled to keep pace with growing demand from households, food processors, manufacturers and other industrial users.
The latest figures add to a growing list of import expenditures recorded by the country during the first quarter of 2026.
An earlier review of Nigeria's foreign trade data revealed that Nigerians spent N20.4 billion on the importation of umbrellas, sunshades, headgear, footwear, whips and related products within the same three-month period.
The figure was obtained from the Foreign Trade Statistics report for the first quarter of 2026 released by the NBS and reviewed by SaharaReporters.
According to the report, the expenditure covered imports classified under categories including headgears, sunshades, umbrellas, whips, footwear and other unspecified products.
The NBS data further showed that the country spent significantly more on the importation of plastics, rubber and related products during the same period. Between January and March 2026 alone, Nigeria imported plastics, rubbers and articles thereof valued at approximately N827 billion.
The development follows a similar trend recorded in previous years, with import bills for consumer, agricultural and industrial goods remaining high despite efforts by successive governments to encourage local manufacturing, boost agricultural production and reduce pressure on foreign exchange reserves.
Earlier, SaharaReporters reported that Nigerians spent a total of N3.9trillion on importing plastics, rubbers and articles thereof throughout 2025.
https://saharareporters.com/2026/06/17/nigeria-spends-n23billion-importing-crude-palm-oil-other-west-african-countries-three#goog_rewarded
--------
Okomu doubles down on local market as export revenue falls
Okomu Oil Palm Plc first-quarter 2026 results show that the company is tapping Nigeria’s domestic market for growth as export earnings decline amid naira stability.
The palm oil producer reported revenue of N58.95 billion for the three months ended March 31, 2026, representing a 13.8 percent increase from N51.81 billion recorded in the corresponding period of 2025.
Export sales fell by 37.7 percent to N4.16 billion from N7.36 billion a year earlier, making it the weakest component of the company’s revenue mix. In contrast, local sales rose to N54.79 billion from N50.76 billion, accounting for almost 93 percent of total turnover.
The figures indicate that Okomu is becoming increasingly dependent on domestic demand for growth as export markets contribute a smaller share of revenue. The decline in export earnings comes at a time when the benefits many exporters enjoyed from the naira’s sharp depreciation are beginning to moderate.
Despite the strong revenue growth, profit expansion was comparatively slower. Profit before tax rose by 5.9 percent to N34.1 billion from N32.2 billion, while profit after tax increased by 8.6 percent to N23.6 billion from N21.7 billion.
The slower pace of earnings growth compared with revenue suggests that rising costs are beginning to offset part of the gains from higher sales.
One of the major pressures came from finance costs, which surged by more than 70 percent to N1.38 billion from N806.8 million in the corresponding period of 2025. The increase was largely driven by exchange losses and interest expenses.
Exchange losses rose to N1.24 billion from N675.9 million a year earlier, underscoring the continued impact of foreign currency exposures on corporate earnings. Finance income, meanwhile, was negligible at N1.1 million compared with N66.7 million recorded in the same period last year.
https://businessday.ng/companies/article/okomu-doubles-down-on-local-market-as-export-revenue-falls/#google_vignette
--------
POSCO International Completes Full Palm Value Chain in Indonesia, From Seeds to Refining
POSCO International has completed the integration process for Sampoerna Agro, an Indonesian palm company acquired last year, and has announced a new corporate name. The company has expanded its business scope from farm operation to include seed development capabilities.
On the 17th (local time), POSCO International held a corporate identity (CI) launch ceremony for 'PT.PAR (Prime Agri Resources)' at the Raffles Hotel in Jakarta, Indonesia. The event was attended by key business partners and industry stakeholders, including South Korean Ambassador to Indonesia Yoon Soon-gu and Edi Martono, President of the Indonesian Palm Oil Association.
From last year through early this year, POSCO International completed an investment of approximately 1.3 trillion won to secure management rights of Sampoerna Agro, thereby acquiring an additional 128,000 hectares of palm plantations across Sumatra and Kalimantan. The company has also strengthened its competitiveness in the palm business by securing a seed-specialized subsidiary with the second-largest market share in Indonesia and research and development (R&D) capabilities. PT.PAR will serve as the core production base of the palm business and the central hub for seed business capabilities.
POSCO International has now established a three-entity structure for its Indonesian palm business, centered on PT.BIA, PT.PAR, and PT.ARC. PT.BIA operates palm plantations in Papua (26,000 hectares); PT.PAR runs farm and seed businesses in Sumatra and Kalimantan (128,000 hectares); and PT.ARC, a palm oil refining company jointly established with GS Caltex, boasts an annual refining capacity of 500,000 tons.
The company has vertically integrated its palm business, now spanning from seed development, farm operation, palm oil production, and refined oil production to supplying raw materials for biofuels. POSCO International plans to evolve into a global food and materials platform, expanding beyond simple farm operations to encompass the entire spectrum of food and bio-material raw materials.
https://www.asiae.co.kr/en/article/2026061808550985366
Protecting nature, protecting jobs, protecting portfolios: A practical guide for Malaysia’s financial sector
Nepomuk Dunz, Martijn Regelink, Mathilde Salin
June 17, 2026
Malaysia's economy is built on nature. As one of the world's 17 megadiverse countries, it draws on some of the richest ecosystems on earth — for agricultural productivity, water supply, soil stability, and the raw materials that power its remarkable economic development. Yet the financial system that funds these activities has only just begun to grapple with what happens when those ecosystems degrade.
The scale of exposure is significant. Over half of Malaysia's GDP has a high or very high dependency on at least one ecosystem service. For the banking sector, 54 percent of commercial lending flows to sectors highly dependent on ecosystem services — from water provision and soil stability to pollination and rainfall regulation — while 36 percent of loans finance activities that put those same ecosystems under significant pressure (Figure 1). The palm oil and construction sectors sit at the center of this dual exposure: deeply reliant on nature, and among its largest sources of stress.
The human stakes are equally significant. Construction alone supports 1.3 million jobs — 14 percent of total private-sector employment. Agriculture, including the palm oil sector, accounts for another 502,000. That is nearly 1.8 million workers in just these two sectors. When ecosystems degrade — when water sources are depleted, soils erode, or biodiversity declines — firms face rising costs, supply disruptions, and regulatory penalties. As policies like the EU Deforestation Regulation affect global market access, firms that cannot demonstrate sustainable practices risk exclusion from value chains, taking jobs with them. For the banks that finance these sectors, ecosystem degradation translates directly into credit risk.
Practical and proportionate — not bureaucratic
A legitimate concern among firms and financial institutions is that nature-risk assessment means yet another compliance layer. A new report by Bank Negara Malaysia, UNDP BIOFIN, and the World Bank — A LEAP for Nature: Advancing Nature-related Financial Risk and Opportunity Assessment in Malaysia — addresses this directly. Drawing on surveys of 83 financial institutions and 45 publicly listed companies, and five pilot LEAP assessments, its central finding is that most organizations already collect nature-relevant data — through Environmental Impact Assessments, sustainability certifications like MSPO and RSPO, and environmental compliance reporting. The real challenge is not generating new information, but connecting what already exists across sustainability, operations, and finance teams.
The report recommends a proportionate, iterative approach: start with the largest exposures, build on existing climate-risk frameworks, and deepen assessments over time. This matters because, while awareness is growing — nearly 80 percent of surveyed financial institutions are already identifying or intend to identify nature-related risks — about 60 percent still report only a limited understanding of the issues, and only 22 percent of surveyed firms have conducted a formal nature-related risk assessment (Figure 2).
Figure 2, Summary of financial institutions’ and firms’ understanding, assessment, and disclosure practices regarding nature-related Dependencies, Impacts, Risks and Opportunities.
The five pilot LEAP assessments show that this gap can be closed through action rather than deliberation. Starting with imperfect data proved far more productive than waiting for perfect methodologies. CIMB, one of Malaysia’s largest banks, has already published a Nature and Biodiversity Report aligned with the TNFD framework. Gamuda, a leading Malaysian construction and property firm and TNFD adopter, has revised its site-development strategies based on nature assessments. Another pilot financial institution has begun integrating nature-risk screening into its credit risk acceptance criteria. The lesson is clear: learning by doing works.
From risk to opportunity
Nature-risk management is not only about avoiding losses. Sustainable palm oil, green construction, nature-based solutions for flood management, and ecosystem restoration all represent growing markets. These are investment opportunities that can sustain and create quality employment — provided the financial system is equipped to identify and finance them. The report encourages financial institutions to actively seek areas where ecological benefits and financial returns intersect, from the circular economy to sustainable land use and payments for ecosystem services.
The way forward
The report offers targeted recommendations for three groups. Financial institutions can begin integrating nature considerations into existing risk frameworks, starting with their most exposed portfolios and engaging clients in high-risk sectors for better data. Firms can leverage data they already collect, bridge internal silos through cross-departmental collaboration, and build on existing climate disclosures. Public sector authorities can accelerate progress by centralizing nature data on an accessible platform, embedding nature into Malaysia's sustainable finance taxonomy, and establishing a clear pathway toward proportionate mandatory disclosure.
Malaysia's financial sector has already built substantial capacity on climate-related risks. Nature-risk assessment builds directly on that foundation. The tools are available, and the approach is designed to be proportionate. The stakes — for nature, for the financial system, and for the millions of workers whose livelihoods depend on healthy ecosystems — are too high to wait.
https://blogs.worldbank.org/en/allaboutfinance/protecting-nature--protecting-jobs--protecting-portfolios--a-pra
----------
Nigeria Spends N23billion Importing Crude Palm Oil From Other West African Countries In Three Months
Nigeria has spent a sum of N23billion importing crude palm oil from fellow West African countries within three months, a SaharaReporters' review of data provided by the National Bureau of Statistics (NBS) has shown.
Nigeria is widely regarded as the largest producer of palm oil in Africa and one of the leading producers globally.
The United States Department of Agriculture also lists Nigeria as one of the top ten producers of Palm oil in the world.
Despite this status, the country spent a sum of N23 billion importing crude palm oil from fellow West African countries.
In the same period, the country also spent N9.55 billion on the importation of cocoa powder from West African countries.
The development comes amid concerns over Nigeria's continued reliance on imports to meet domestic demand despite its vast agricultural potential and abundance of arable land.
According to the Foreign Trade Statistics report for the first quarter of 2026 released by the NBS, crude palm oil ranked among the agricultural products imported into the country between January and March 2026.
The importation of crude palm oil from neighbouring West African countries highlights the gap between local production and national consumption requirements. Although Nigeria remains a major producer of the commodity, domestic output has struggled to keep pace with growing demand from households, food processors, manufacturers and other industrial users.
In the same period, the country also spent N9.55 billion on the importation of cocoa powder from West African countries.
The development comes amid concerns over Nigeria's continued reliance on imports to meet domestic demand despite its vast agricultural potential and abundance of arable land.
According to the Foreign Trade Statistics report for the first quarter of 2026 released by the NBS, crude palm oil ranked among the agricultural products imported into the country between January and March 2026.
The importation of crude palm oil from neighbouring West African countries highlights the gap between local production and national consumption requirements. Although Nigeria remains a major producer of the commodity, domestic output has struggled to keep pace with growing demand from households, food processors, manufacturers and other industrial users.
The latest figures add to a growing list of import expenditures recorded by the country during the first quarter of 2026.
An earlier review of Nigeria's foreign trade data revealed that Nigerians spent N20.4 billion on the importation of umbrellas, sunshades, headgear, footwear, whips and related products within the same three-month period.
The figure was obtained from the Foreign Trade Statistics report for the first quarter of 2026 released by the NBS and reviewed by SaharaReporters.
According to the report, the expenditure covered imports classified under categories including headgears, sunshades, umbrellas, whips, footwear and other unspecified products.
The NBS data further showed that the country spent significantly more on the importation of plastics, rubber and related products during the same period. Between January and March 2026 alone, Nigeria imported plastics, rubbers and articles thereof valued at approximately N827 billion.
The development follows a similar trend recorded in previous years, with import bills for consumer, agricultural and industrial goods remaining high despite efforts by successive governments to encourage local manufacturing, boost agricultural production and reduce pressure on foreign exchange reserves.
Earlier, SaharaReporters reported that Nigerians spent a total of N3.9trillion on importing plastics, rubbers and articles thereof throughout 2025.
https://saharareporters.com/2026/06/17/nigeria-spends-n23billion-importing-crude-palm-oil-other-west-african-countries-three#goog_rewarded
--------
Okomu doubles down on local market as export revenue falls
Okomu Oil Palm Plc first-quarter 2026 results show that the company is tapping Nigeria’s domestic market for growth as export earnings decline amid naira stability.
The palm oil producer reported revenue of N58.95 billion for the three months ended March 31, 2026, representing a 13.8 percent increase from N51.81 billion recorded in the corresponding period of 2025.
Export sales fell by 37.7 percent to N4.16 billion from N7.36 billion a year earlier, making it the weakest component of the company’s revenue mix. In contrast, local sales rose to N54.79 billion from N50.76 billion, accounting for almost 93 percent of total turnover.
The figures indicate that Okomu is becoming increasingly dependent on domestic demand for growth as export markets contribute a smaller share of revenue. The decline in export earnings comes at a time when the benefits many exporters enjoyed from the naira’s sharp depreciation are beginning to moderate.
Despite the strong revenue growth, profit expansion was comparatively slower. Profit before tax rose by 5.9 percent to N34.1 billion from N32.2 billion, while profit after tax increased by 8.6 percent to N23.6 billion from N21.7 billion.
The slower pace of earnings growth compared with revenue suggests that rising costs are beginning to offset part of the gains from higher sales.
One of the major pressures came from finance costs, which surged by more than 70 percent to N1.38 billion from N806.8 million in the corresponding period of 2025. The increase was largely driven by exchange losses and interest expenses.
Exchange losses rose to N1.24 billion from N675.9 million a year earlier, underscoring the continued impact of foreign currency exposures on corporate earnings. Finance income, meanwhile, was negligible at N1.1 million compared with N66.7 million recorded in the same period last year.
https://businessday.ng/companies/article/okomu-doubles-down-on-local-market-as-export-revenue-falls/#google_vignette
--------
POSCO International Completes Full Palm Value Chain in Indonesia, From Seeds to Refining
POSCO International has completed the integration process for Sampoerna Agro, an Indonesian palm company acquired last year, and has announced a new corporate name. The company has expanded its business scope from farm operation to include seed development capabilities.
On the 17th (local time), POSCO International held a corporate identity (CI) launch ceremony for 'PT.PAR (Prime Agri Resources)' at the Raffles Hotel in Jakarta, Indonesia. The event was attended by key business partners and industry stakeholders, including South Korean Ambassador to Indonesia Yoon Soon-gu and Edi Martono, President of the Indonesian Palm Oil Association.
From last year through early this year, POSCO International completed an investment of approximately 1.3 trillion won to secure management rights of Sampoerna Agro, thereby acquiring an additional 128,000 hectares of palm plantations across Sumatra and Kalimantan. The company has also strengthened its competitiveness in the palm business by securing a seed-specialized subsidiary with the second-largest market share in Indonesia and research and development (R&D) capabilities. PT.PAR will serve as the core production base of the palm business and the central hub for seed business capabilities.
POSCO International has now established a three-entity structure for its Indonesian palm business, centered on PT.BIA, PT.PAR, and PT.ARC. PT.BIA operates palm plantations in Papua (26,000 hectares); PT.PAR runs farm and seed businesses in Sumatra and Kalimantan (128,000 hectares); and PT.ARC, a palm oil refining company jointly established with GS Caltex, boasts an annual refining capacity of 500,000 tons.
The company has vertically integrated its palm business, now spanning from seed development, farm operation, palm oil production, and refined oil production to supplying raw materials for biofuels. POSCO International plans to evolve into a global food and materials platform, expanding beyond simple farm operations to encompass the entire spectrum of food and bio-material raw materials.
https://www.asiae.co.kr/en/article/2026061808550985366
June 17, 2026
Malaysia expands B15 biodiesel rollout as several regions advance to B20 blend
The Malaysian government has expanded its mandatory biodiesel blending programme with a nationwide rollout of a palm oil-based biodiesel blend of 15% (B15) and several regions advancing to a higher B20 blend, BioEnergyTimes wrote.
Plantation and Commodities minister Noraini Ahmad said Sarawak (excluding Bintulu town) Labuan and Langkawi territories had adopted B20.
However, many parts of the country continued to operate under B10 and B12 biodiesel programmes, according to a Dayak Daily report.
Speaking after inspecting the B15 Biodiesel Distribution Terminal at the Klang Valley Distribution Terminal in Puchong, Ahamd said the B15 implementation started in Peninsular Malaysia on 1 June and would be expanded gradually to fuel stations across the country.
The minister dismissed concerns that increased domestic biodiesel use could affect Malaysia’s palm oil exports, the 3 June report said.
Nationwide B15 implementation was expected to use around 801,000 tonnes/year of crude palm oil (CPO) without disrupting export markets or existing trade conditions, Ahmad added.
Malaysia’s biodiesel blending programme was being supported through 19 licensed biodiesel production plants operating nationwide, BioEnergyTimes wrote.
The government has said it viewed the initiative as a key step in expanding the use of palm oil-based biofuels while supporting the country’s wider energy transition goals.
https://www.ofimagazine.com/news/malaysia-expands-b15-biodiesel-rollout-as-several-regions-advance-to-b20-blend
--------
Nigeria Positions Itself for Full Global Palm Oil Council Membership
Jakarta, SAWIT INDONESIA – Nigeria has officially initiated steps to transition from an observer state to a full member of the Council of Palm Oil Producing Countries (CPOPC). The strategic move follows a high-level diplomatic meeting between Nigeria's Minister of Foreign Affairs, Ambassador Yusuf Maitama Tuggar, and the CPOPC Secretary-General, Izzana Salleh, at the Ministry's headquarters in Abuja on April 2026.
During the policy engagement, Secretary-General Salleh noted that Nigeria's current observer status with the council is set to expire at the end of the year, underscoring the urgency for early consultations to guarantee a seamless transition.
To encourage Nigeria's accession, Salleh announced a significant incentive approved by the Council's leadership:
“The Council's ministerial leadership has approved a two-year waiver of membership fees should Nigeria successfully attain full membership status,” he added.
The CPOPC currently represents major global palm oil producers, including Indonesia, Malaysia, Papua New Guinea, Honduras, and the Democratic Republic of Congo. The body acts as a unified platform to engage multilateral institutions such as the United Nations and the World Bank.
The strategic engagement, held at the Ministry of Foreign Affairs headquarters, Tafawa Balewa House, focused on Nigeria's possible transition from observer status to full membership of the intergovernmental organization, as the country seeks to strengthen its position in global agricultural diplomacy and commodity trade.
In a gesture aimed at encouraging Nigeria's accession, the Secretary-General announced that the Council's ministerial leadership had approved a two-year waiver of membership fees should Nigeria attain full membership status.
https://sawitindonesia.com/nigeria-positions-itself-for-full-global-palm-oil-council-membership/
--------
After China, Ghana Seeks to Attract Thai Capital Into Its Palm Oil Industry
The initiative emerged from a meeting held in Accra on June 15 between John Dumelo, Deputy Minister for Food and Agriculture, and a delegation from Thailand that included officials from the Thai Ministry of Foreign Affairs as well as representatives of Thai companies and financial institutions.
Although the parties have not yet signed any agreements, the discussions underscore Accra’s determination to attract foreign investment and accelerate the development of the domestic palm oil industry. The initiative follows a similar appeal made by Agriculture Minister Eric Opoku in March, when he called on Chinese investors to support local palm oil production.
An Ambitious Development Program
The renewed push for foreign investment comes as the Ghanaian government reaffirms its objective of achieving palm oil self-sufficiency.
To support this goal, Accra has introduced an Integrated Oil Palm Development Policy covering the 2026–2032 period. The government has backed the strategy with a $500 million financing facility designed to support industrial projects and new plantations. According to Ghana’s 2026 Budget Statement and Economic Policy, the facility will provide long-term loans, a five-year repayment grace period and concessional interest rates.
The mechanism will also finance up to 70% of eligible industrial project costs linked to palm oil sector development. Authorities expect these measures to attract private investors, mobilize additional financing and accelerate industry growth. The program also includes plans to establish 100,000 hectares of new plantations to expand the country’s production base.
Leveraging Thai Expertise
Beyond attracting capital, Ghana also aims to benefit from Thailand’s industrial and technological expertise in the palm oil sector. Thailand ranks among the world’s leading palm oil producers and has developed an integrated ecosystem spanning cultivation, processing and distribution. The Asian nation ranks as the world’s third-largest producer after Indonesia and Malaysia. According to the U.S. Department of Agriculture (USDA), Thailand produces approximately 3.8 million metric tons of palm oil annually. Thailand also ranks as the world’s third-largest exporter, shipping more than 1 million metric tons each year. Its position in global markets reflects a highly structured and competitive industrial base.
Against this backdrop, the discussions between Ghanaian authorities and Thai operators could pave the way for partnerships that combine direct investment, technology transfer and the gradual strengthening of Ghana’s palm oil industry.
This article was initially published in French by Stéphanas Assocle
Adapted in English by Ange J.A de Berry Quenum
https://www.ecofinagency.com/news-agriculture/1606-56484-after-china-ghana-seeks-to-attract-thai-capital-into-its-palm-oil-industry
Malaysia expands B15 biodiesel rollout as several regions advance to B20 blend
The Malaysian government has expanded its mandatory biodiesel blending programme with a nationwide rollout of a palm oil-based biodiesel blend of 15% (B15) and several regions advancing to a higher B20 blend, BioEnergyTimes wrote.
Plantation and Commodities minister Noraini Ahmad said Sarawak (excluding Bintulu town) Labuan and Langkawi territories had adopted B20.
However, many parts of the country continued to operate under B10 and B12 biodiesel programmes, according to a Dayak Daily report.
Speaking after inspecting the B15 Biodiesel Distribution Terminal at the Klang Valley Distribution Terminal in Puchong, Ahamd said the B15 implementation started in Peninsular Malaysia on 1 June and would be expanded gradually to fuel stations across the country.
The minister dismissed concerns that increased domestic biodiesel use could affect Malaysia’s palm oil exports, the 3 June report said.
Nationwide B15 implementation was expected to use around 801,000 tonnes/year of crude palm oil (CPO) without disrupting export markets or existing trade conditions, Ahmad added.
Malaysia’s biodiesel blending programme was being supported through 19 licensed biodiesel production plants operating nationwide, BioEnergyTimes wrote.
The government has said it viewed the initiative as a key step in expanding the use of palm oil-based biofuels while supporting the country’s wider energy transition goals.
https://www.ofimagazine.com/news/malaysia-expands-b15-biodiesel-rollout-as-several-regions-advance-to-b20-blend
--------
Nigeria Positions Itself for Full Global Palm Oil Council Membership
Jakarta, SAWIT INDONESIA – Nigeria has officially initiated steps to transition from an observer state to a full member of the Council of Palm Oil Producing Countries (CPOPC). The strategic move follows a high-level diplomatic meeting between Nigeria's Minister of Foreign Affairs, Ambassador Yusuf Maitama Tuggar, and the CPOPC Secretary-General, Izzana Salleh, at the Ministry's headquarters in Abuja on April 2026.
During the policy engagement, Secretary-General Salleh noted that Nigeria's current observer status with the council is set to expire at the end of the year, underscoring the urgency for early consultations to guarantee a seamless transition.
To encourage Nigeria's accession, Salleh announced a significant incentive approved by the Council's leadership:
“The Council's ministerial leadership has approved a two-year waiver of membership fees should Nigeria successfully attain full membership status,” he added.
The CPOPC currently represents major global palm oil producers, including Indonesia, Malaysia, Papua New Guinea, Honduras, and the Democratic Republic of Congo. The body acts as a unified platform to engage multilateral institutions such as the United Nations and the World Bank.
The strategic engagement, held at the Ministry of Foreign Affairs headquarters, Tafawa Balewa House, focused on Nigeria's possible transition from observer status to full membership of the intergovernmental organization, as the country seeks to strengthen its position in global agricultural diplomacy and commodity trade.
In a gesture aimed at encouraging Nigeria's accession, the Secretary-General announced that the Council's ministerial leadership had approved a two-year waiver of membership fees should Nigeria attain full membership status.
https://sawitindonesia.com/nigeria-positions-itself-for-full-global-palm-oil-council-membership/
--------
After China, Ghana Seeks to Attract Thai Capital Into Its Palm Oil Industry
- Ghana has opened discussions with Thai investors interested in developing palm plantations and processing facilities.
- The government has launched a $500 million financing mechanism and plans to establish 100,000 hectares of new plantations between 2026 and 2032.
- Ghana hopes to leverage Thailand’s expertise as the world’s third-largest palm oil producer and exporter to strengthen its domestic industry.
The initiative emerged from a meeting held in Accra on June 15 between John Dumelo, Deputy Minister for Food and Agriculture, and a delegation from Thailand that included officials from the Thai Ministry of Foreign Affairs as well as representatives of Thai companies and financial institutions.
Although the parties have not yet signed any agreements, the discussions underscore Accra’s determination to attract foreign investment and accelerate the development of the domestic palm oil industry. The initiative follows a similar appeal made by Agriculture Minister Eric Opoku in March, when he called on Chinese investors to support local palm oil production.
An Ambitious Development Program
The renewed push for foreign investment comes as the Ghanaian government reaffirms its objective of achieving palm oil self-sufficiency.
To support this goal, Accra has introduced an Integrated Oil Palm Development Policy covering the 2026–2032 period. The government has backed the strategy with a $500 million financing facility designed to support industrial projects and new plantations. According to Ghana’s 2026 Budget Statement and Economic Policy, the facility will provide long-term loans, a five-year repayment grace period and concessional interest rates.
The mechanism will also finance up to 70% of eligible industrial project costs linked to palm oil sector development. Authorities expect these measures to attract private investors, mobilize additional financing and accelerate industry growth. The program also includes plans to establish 100,000 hectares of new plantations to expand the country’s production base.
Leveraging Thai Expertise
Beyond attracting capital, Ghana also aims to benefit from Thailand’s industrial and technological expertise in the palm oil sector. Thailand ranks among the world’s leading palm oil producers and has developed an integrated ecosystem spanning cultivation, processing and distribution. The Asian nation ranks as the world’s third-largest producer after Indonesia and Malaysia. According to the U.S. Department of Agriculture (USDA), Thailand produces approximately 3.8 million metric tons of palm oil annually. Thailand also ranks as the world’s third-largest exporter, shipping more than 1 million metric tons each year. Its position in global markets reflects a highly structured and competitive industrial base.
Against this backdrop, the discussions between Ghanaian authorities and Thai operators could pave the way for partnerships that combine direct investment, technology transfer and the gradual strengthening of Ghana’s palm oil industry.
This article was initially published in French by Stéphanas Assocle
Adapted in English by Ange J.A de Berry Quenum
https://www.ecofinagency.com/news-agriculture/1606-56484-after-china-ghana-seeks-to-attract-thai-capital-into-its-palm-oil-industry
June 16, 2026
Indonesia Backs Down on Government Control of Exports
JAKARTA – Indonesia is scaling back a controversial proposal to centralize the export of its strategic commodities, after buyers and exporters raised concerns, The Straits Times has learnt. Instead, the authorities will impose tighter monitoring on exports of key commodities to prevent exporters from understating shipment values and evading taxes, two government officials told ST.
The shift marks a retreat from an earlier plan that would have channeled overseas sales of commodities such as coal, palm oil and ferroalloys through a state-linked entity, a proposal that sparked concerns over market disruption and tighter export control. But Indonesia is not going ahead with such restructuring, said the officials, who spoke to ST on condition of anonymity.
One official said Indonesia will instead impose tighter monitoring on exports to prevent under-invoicing – an illicit trade practice in which exporters deliberately understate the value of shipments on official trade documents to evade taxes, reduce royalties and shift profits offshore. Some analysts who spoke to ST said this amounts to a U-turn by the government.
“We will establish a transparent pricing methodology. If an export price is deemed too low, we will require exporters to revise it,” the official told ST. The system is intended to ensure export prices align with prevailing market rates, preventing goods from being sold below market value.
On May 20, President Subianto Prabowo had unveiled plans to centralise all strategic commodity exports under a new state-controlled entity. The entity, called Danantara Sumberdaya Indonesia (DSI), would fall under the broader Danantara sovereign wealth fund structure.
As reported earlier in May, under draft regulations seen by ST then, foreign buyers would no longer deal directly with Indonesian exporters, but instead via the new body, which would oversee contracts, shipping and payments. The transition period was to have begun on June 1, before stricter rules kick in from Sept 1.
By pivoting to an oversight role, Jakarta avoids becoming a single export trader, a structure that some investors and market participants had viewed as close to a state monopoly and potentially disruptive to existing market arrangements.
Still, the government says it remains focused on reducing economic leakages. The tighter monitoring framework aims to recover billions in lost revenue while preserving business certainty and a competitive investment climate.
“We will be tightly monitoring (the situation). But DSI is not going to be a single export trader. It is more of a solo, middle-man entity, whose main job is to ensure fair pricing,” the second government official told ST. The official said this objective would be achieved if Indonesia curbs under-invoicing.
He also dismissed concerns, widely reported in local media, about possible rent-seeking – where profits are extracted without adding real economic value – stressing that the proposed DSI framework would ease exporters’ worries: “DSI would likely take only a very small profit margin – between 0.05 per cent and 0.1 per cent – on traded commodities in order to sustain its operations.”
“The commercial relationship between buyers or traders overseas with exporters may continue. They just need to report to us to make sure there is no under-invoicing,” he added.
The overseas sales of coal, palm oil and ferroalloys, according to government data, totalled US$66.13 billion (S$85 billion) in 2025, accounting for about a quarter of Indonesia’s total exports.
The Jakarta Composite Index plunged 3.54 per cent on May 21, following the announcement to centralise commodity exports, before recovering modestly in the next session.
The market’s initial reaction should be read as doubt rather than a rejection of economic nationalism, said Achmad Nur Hidayat, an economist and public policy expert at public university UPN Veteran Jakarta.
“The market does not just read intent. The market reads design,” he told ST. In other words, markets focus less on what governments say they want to do, and more on how the policy would actually work.
Achmad likened the policy shift to repairing a leaking roof: investors are not objecting to the repair itself, but are concerned about the process.
They are asking “whether the contractor chosen is genuinely an expert, whether the materials are available, and whether the renovation process won’t force the occupants to move out temporarily without knowing when it will be finished”.
If DSI slows down exports or reduces contract certainty for global buyers, investors will price in higher risk and potentially reduce investment or trading activity, he warned.
A foreign banker told ST in a written message on June 6 that some palm oil exporters had cancelled planned cargo shipments for fear of breaching rules and incurring penalties.
When Prabowo announced that a new state entity would become the sole exporter of key commodities, the government’s argument was that too much value from Indonesia’s resource wealth has moved offshore. The officials who spoke to ST say much of this value flows through Singapore.
By the Indonesian government’s own calculations, decades of under-invoicing and rerouted documentation have resulted in significant losses. Large volumes of Indonesian palm oil have historically been traded through Singapore before being resold at higher prices to buyers in the US and Europe, according to an April 2026 research report by Jakarta-based think-tank NEXT Indonesia Centre.
Merchanting trade, in which goods are bought and sold through a trading hub without physically entering the country, is a standard and legal practice in international commerce. Indonesia’s concern relates to alleged under-invoicing rather than the merchanting activity itself.
The NEXT report added that some palm oil exports were sold to affiliated trading entities at prices below prevailing market rates before being resold overseas, contributing to lost export and tax revenues for Indonesia.
Prabowo’s May 20 speech put the cumulative loss from poor natural resource management at around US$908 billion over 34 years. Following the announcement, state investigators launched a probe into alleged under-invoicing in palm oil exports involving Indonesian exporters and affiliated trading companies in Singapore.
Jakarta-based news portal Kontan reported that the national police detective unit visited the Jakarta office of a major palm oil exporter on May 29, confiscating trade documents. The Indonesian government has argued that pulling the export chain onshore could help repatriate earnings, trading desks and financial services long rooted in Singapore.
Indonesian public policy expert Lin Che Wei noted that cargoes may never physically enter Singapore – sailing directly from Indonesian ports to the destination country – even though the trade is booked in Singapore. This practice is known as merchanting trade.
“Singapore’s role is often about contracts, credit, freight, insurance, arbitration and optionality, not just physical transshipment,” Lin said.
A Jakarta-based industry analyst pointed out that Singapore’s true added value lies in its infrastructure, with links to more than 600 ports, around 200 shipping lines, and more than 400 international trading companies.
“Singapore becomes attractive when a deal needs financing, aggregation, flexible routing, insurance, chartering, or the ability to switch destinations after the cargo has lawfully left port,” said the analyst, who declined to be named because he is not authorised to speak to the media.
He added that Singapore’s status as a leading arbitration seat provides a “compelling reason” for buyers to choose the jurisdiction. “Singapore’s laws are written entirely in English, giving greater confidence to buyers compared with navigating legislation drafted in Bahasa Indonesia.”
Some analysts who spoke to ST say that scaling back on the earlier plan amounts to a U-turn by the government. But public policy expert Trubus Rahardiansyah believes otherwise. Here, he said, an idea was initiated and “its implementation on the ground is then adapted to the highest standards and global best practices”. “This is about fine-tuning and listening to all parties,” added Trubus, who also lectures at Jakarta’s Trisakti University. GAPKI
--------
Thailand eyes investment in Ghana’s palm oil sector
Thailand has expressed interest in investing in Ghana’s palm oil industry following discussions with the Ministry of Food and Agriculture aimed at deepening agricultural cooperation between the two countries.
The Deputy Minister for Food and Agriculture, John Dumelo, hosted a high-level Thai delegation led by H.E. Mrs Urasa Mongkolnavin, Director-General of the Department of South Asian, Middle East and African Affairs at Thailand’s Ministry of Foreign Affairs, during a courtesy call in Accra on Monday.
The meeting focused on areas of collaboration including food security, sustainable agriculture, agribusiness development and public-private partnerships.
A major outcome of the discussions was the interest shown by Thai investors in establishing palm plantations and processing facilities in Ghana to support the growing palm oil market.
Mr Dumelo assured the delegation of the government’s commitment to creating a favourable environment for agricultural investment.
He indicated that Ghana possesses vast agricultural potential and identified the Oti, Ashanti and Ahafo regions as suitable locations for palm cultivation. He also pledged the Ministry’s support in facilitating access to land for viable agricultural projects.
The Deputy Minister further encouraged partnerships with local farmers and investments that would promote value addition, increase productivity and create jobs along the palm oil value chain.
Both Ghana and Thailand expressed optimism about expanding bilateral cooperation in agriculture and agreed to continue engagements aimed at promoting trade, investment and agricultural development for the benefit of both countries.
https://www.myjoyonline.com/thailand-eyes-investment-in-ghanas-palm-oil-sector/
--------
El Nino threatens livelihoods in Southeast Asia
David Hutt
Hotter, drier weather is impeding rice and palm-oil production as households across Southeast Asia struggle with higher fuel, food and transport costs.
Southeast Asia is bracing for an extreme El Nino weather pattern as households and governments in the region are struggling to respond to higher energy, transport and food bills linked to the Iran war.
The UN weather agency, the World Meteorological Organization, expects the El Nino conditions to emerge before August and continue until at least November. This means surface waters in large parts of the Pacific Ocean will warm up more than usual, and a disruption in the usual east-to-west wind pattern is likely to bring more heat to central and eastern Pacific.
Southeast Asia is entering the months when monsoon rains usually replenish water reservoirs, cool overheated cities and inundate the fields ahead of the next planting season. However, if the rains arrive late or are weaker than normal, farmers may delay planting, reduce acreage or switch away from water-intensive crops.
"Southeast Asia's agricultural sector is exceptionally vulnerable to a new El Nino shock, given that its two primary commodities, rice and palm oil, are highly concentrated and uniquely sensitive to climate anomalies," Jason Lee, chair of the Global Heat Health Information Network's Southeast Asia Hub, told DW.
"This extreme exposure means that what begins as a localized, farm-level shock can rapidly spill over into a broader, systemic food-price and inflation crisis across the region."
Rice, palm oil and the inflation risk
For Southeast Asian nations, rice crops are the biggest political risk. It is the region's staple food, closely tied to rural livelihoods and likely to trigger public anger if its prices rise.
Rice is likely to be the most affected staple crop due to reduced rainfall and increased heat stress, Paul Teng, a visiting senior fellow in the ISEAS–Yusof Ishak Institute's Climate Change in Southeast Asia Program, told DW.
"In the rain-fed rice areas, there will likely be higher incidence of localized droughts and in the irrigated rice areas there will likely be water stress due to lower reservoir and irrigation levels," Teng said, noting that the most vulnerable countries are Thailand, the Philippines, Indonesia and Cambodia.
The region could see a 2%–8% reduction in rice output compared with a normal year, with larger local losses in drought-prone areas, he added.
https://www.dw.com/en/el-nino-threatens-livelihoods-in-southeast-asia/a-77559356
Indonesia Backs Down on Government Control of Exports
JAKARTA – Indonesia is scaling back a controversial proposal to centralize the export of its strategic commodities, after buyers and exporters raised concerns, The Straits Times has learnt. Instead, the authorities will impose tighter monitoring on exports of key commodities to prevent exporters from understating shipment values and evading taxes, two government officials told ST.
The shift marks a retreat from an earlier plan that would have channeled overseas sales of commodities such as coal, palm oil and ferroalloys through a state-linked entity, a proposal that sparked concerns over market disruption and tighter export control. But Indonesia is not going ahead with such restructuring, said the officials, who spoke to ST on condition of anonymity.
One official said Indonesia will instead impose tighter monitoring on exports to prevent under-invoicing – an illicit trade practice in which exporters deliberately understate the value of shipments on official trade documents to evade taxes, reduce royalties and shift profits offshore. Some analysts who spoke to ST said this amounts to a U-turn by the government.
“We will establish a transparent pricing methodology. If an export price is deemed too low, we will require exporters to revise it,” the official told ST. The system is intended to ensure export prices align with prevailing market rates, preventing goods from being sold below market value.
On May 20, President Subianto Prabowo had unveiled plans to centralise all strategic commodity exports under a new state-controlled entity. The entity, called Danantara Sumberdaya Indonesia (DSI), would fall under the broader Danantara sovereign wealth fund structure.
As reported earlier in May, under draft regulations seen by ST then, foreign buyers would no longer deal directly with Indonesian exporters, but instead via the new body, which would oversee contracts, shipping and payments. The transition period was to have begun on June 1, before stricter rules kick in from Sept 1.
By pivoting to an oversight role, Jakarta avoids becoming a single export trader, a structure that some investors and market participants had viewed as close to a state monopoly and potentially disruptive to existing market arrangements.
Still, the government says it remains focused on reducing economic leakages. The tighter monitoring framework aims to recover billions in lost revenue while preserving business certainty and a competitive investment climate.
“We will be tightly monitoring (the situation). But DSI is not going to be a single export trader. It is more of a solo, middle-man entity, whose main job is to ensure fair pricing,” the second government official told ST. The official said this objective would be achieved if Indonesia curbs under-invoicing.
He also dismissed concerns, widely reported in local media, about possible rent-seeking – where profits are extracted without adding real economic value – stressing that the proposed DSI framework would ease exporters’ worries: “DSI would likely take only a very small profit margin – between 0.05 per cent and 0.1 per cent – on traded commodities in order to sustain its operations.”
“The commercial relationship between buyers or traders overseas with exporters may continue. They just need to report to us to make sure there is no under-invoicing,” he added.
The overseas sales of coal, palm oil and ferroalloys, according to government data, totalled US$66.13 billion (S$85 billion) in 2025, accounting for about a quarter of Indonesia’s total exports.
The Jakarta Composite Index plunged 3.54 per cent on May 21, following the announcement to centralise commodity exports, before recovering modestly in the next session.
The market’s initial reaction should be read as doubt rather than a rejection of economic nationalism, said Achmad Nur Hidayat, an economist and public policy expert at public university UPN Veteran Jakarta.
“The market does not just read intent. The market reads design,” he told ST. In other words, markets focus less on what governments say they want to do, and more on how the policy would actually work.
Achmad likened the policy shift to repairing a leaking roof: investors are not objecting to the repair itself, but are concerned about the process.
They are asking “whether the contractor chosen is genuinely an expert, whether the materials are available, and whether the renovation process won’t force the occupants to move out temporarily without knowing when it will be finished”.
If DSI slows down exports or reduces contract certainty for global buyers, investors will price in higher risk and potentially reduce investment or trading activity, he warned.
A foreign banker told ST in a written message on June 6 that some palm oil exporters had cancelled planned cargo shipments for fear of breaching rules and incurring penalties.
When Prabowo announced that a new state entity would become the sole exporter of key commodities, the government’s argument was that too much value from Indonesia’s resource wealth has moved offshore. The officials who spoke to ST say much of this value flows through Singapore.
By the Indonesian government’s own calculations, decades of under-invoicing and rerouted documentation have resulted in significant losses. Large volumes of Indonesian palm oil have historically been traded through Singapore before being resold at higher prices to buyers in the US and Europe, according to an April 2026 research report by Jakarta-based think-tank NEXT Indonesia Centre.
Merchanting trade, in which goods are bought and sold through a trading hub without physically entering the country, is a standard and legal practice in international commerce. Indonesia’s concern relates to alleged under-invoicing rather than the merchanting activity itself.
The NEXT report added that some palm oil exports were sold to affiliated trading entities at prices below prevailing market rates before being resold overseas, contributing to lost export and tax revenues for Indonesia.
Prabowo’s May 20 speech put the cumulative loss from poor natural resource management at around US$908 billion over 34 years. Following the announcement, state investigators launched a probe into alleged under-invoicing in palm oil exports involving Indonesian exporters and affiliated trading companies in Singapore.
Jakarta-based news portal Kontan reported that the national police detective unit visited the Jakarta office of a major palm oil exporter on May 29, confiscating trade documents. The Indonesian government has argued that pulling the export chain onshore could help repatriate earnings, trading desks and financial services long rooted in Singapore.
Indonesian public policy expert Lin Che Wei noted that cargoes may never physically enter Singapore – sailing directly from Indonesian ports to the destination country – even though the trade is booked in Singapore. This practice is known as merchanting trade.
“Singapore’s role is often about contracts, credit, freight, insurance, arbitration and optionality, not just physical transshipment,” Lin said.
A Jakarta-based industry analyst pointed out that Singapore’s true added value lies in its infrastructure, with links to more than 600 ports, around 200 shipping lines, and more than 400 international trading companies.
“Singapore becomes attractive when a deal needs financing, aggregation, flexible routing, insurance, chartering, or the ability to switch destinations after the cargo has lawfully left port,” said the analyst, who declined to be named because he is not authorised to speak to the media.
He added that Singapore’s status as a leading arbitration seat provides a “compelling reason” for buyers to choose the jurisdiction. “Singapore’s laws are written entirely in English, giving greater confidence to buyers compared with navigating legislation drafted in Bahasa Indonesia.”
Some analysts who spoke to ST say that scaling back on the earlier plan amounts to a U-turn by the government. But public policy expert Trubus Rahardiansyah believes otherwise. Here, he said, an idea was initiated and “its implementation on the ground is then adapted to the highest standards and global best practices”. “This is about fine-tuning and listening to all parties,” added Trubus, who also lectures at Jakarta’s Trisakti University. GAPKI
--------
Thailand eyes investment in Ghana’s palm oil sector
Thailand has expressed interest in investing in Ghana’s palm oil industry following discussions with the Ministry of Food and Agriculture aimed at deepening agricultural cooperation between the two countries.
The Deputy Minister for Food and Agriculture, John Dumelo, hosted a high-level Thai delegation led by H.E. Mrs Urasa Mongkolnavin, Director-General of the Department of South Asian, Middle East and African Affairs at Thailand’s Ministry of Foreign Affairs, during a courtesy call in Accra on Monday.
The meeting focused on areas of collaboration including food security, sustainable agriculture, agribusiness development and public-private partnerships.
A major outcome of the discussions was the interest shown by Thai investors in establishing palm plantations and processing facilities in Ghana to support the growing palm oil market.
Mr Dumelo assured the delegation of the government’s commitment to creating a favourable environment for agricultural investment.
He indicated that Ghana possesses vast agricultural potential and identified the Oti, Ashanti and Ahafo regions as suitable locations for palm cultivation. He also pledged the Ministry’s support in facilitating access to land for viable agricultural projects.
The Deputy Minister further encouraged partnerships with local farmers and investments that would promote value addition, increase productivity and create jobs along the palm oil value chain.
Both Ghana and Thailand expressed optimism about expanding bilateral cooperation in agriculture and agreed to continue engagements aimed at promoting trade, investment and agricultural development for the benefit of both countries.
https://www.myjoyonline.com/thailand-eyes-investment-in-ghanas-palm-oil-sector/
--------
El Nino threatens livelihoods in Southeast Asia
David Hutt
Hotter, drier weather is impeding rice and palm-oil production as households across Southeast Asia struggle with higher fuel, food and transport costs.
Southeast Asia is bracing for an extreme El Nino weather pattern as households and governments in the region are struggling to respond to higher energy, transport and food bills linked to the Iran war.
The UN weather agency, the World Meteorological Organization, expects the El Nino conditions to emerge before August and continue until at least November. This means surface waters in large parts of the Pacific Ocean will warm up more than usual, and a disruption in the usual east-to-west wind pattern is likely to bring more heat to central and eastern Pacific.
Southeast Asia is entering the months when monsoon rains usually replenish water reservoirs, cool overheated cities and inundate the fields ahead of the next planting season. However, if the rains arrive late or are weaker than normal, farmers may delay planting, reduce acreage or switch away from water-intensive crops.
"Southeast Asia's agricultural sector is exceptionally vulnerable to a new El Nino shock, given that its two primary commodities, rice and palm oil, are highly concentrated and uniquely sensitive to climate anomalies," Jason Lee, chair of the Global Heat Health Information Network's Southeast Asia Hub, told DW.
"This extreme exposure means that what begins as a localized, farm-level shock can rapidly spill over into a broader, systemic food-price and inflation crisis across the region."
Rice, palm oil and the inflation risk
For Southeast Asian nations, rice crops are the biggest political risk. It is the region's staple food, closely tied to rural livelihoods and likely to trigger public anger if its prices rise.
Rice is likely to be the most affected staple crop due to reduced rainfall and increased heat stress, Paul Teng, a visiting senior fellow in the ISEAS–Yusof Ishak Institute's Climate Change in Southeast Asia Program, told DW.
"In the rain-fed rice areas, there will likely be higher incidence of localized droughts and in the irrigated rice areas there will likely be water stress due to lower reservoir and irrigation levels," Teng said, noting that the most vulnerable countries are Thailand, the Philippines, Indonesia and Cambodia.
The region could see a 2%–8% reduction in rice output compared with a normal year, with larger local losses in drought-prone areas, he added.
https://www.dw.com/en/el-nino-threatens-livelihoods-in-southeast-asia/a-77559356
June 15, 2026
Prabowo’s new brand of resource nationalism
In Brief
The Indonesian government's proposal to channel major commodity exports through a new state-owned entity, Danantara Sumberdaya Indonesia, reflects President Prabowo Subianto’s new style of resource nationalism. Whereas resource nationalist policies under the Susilo Bambang Yudhoyono and Joko Widodo administrations generally balanced state goals with the interests of domestic businesses, Prabowo’s approach prioritises state control and increasingly challenges the private-sector, including powerful Indonesian oligarchs. Initiatives like Danantara Sumberdaya Indonesia purport to address long-standing problems in the resource industry, but in practice are highly discretionary. Indonesia’s resource sector requires reform, but Prabowo’s statist and coercive brand of resource nationalism is no solution.
Last month, Indonesian President Prabowo Subianto blindsided his own ministers, stunned the business community and confused global markets with the announcement that exports of key commodities — including palm oil, coal and certain minerals — would soon be channelled through Danantara Sumberdaya Indonesia, a new subsidiary of Indonesia’s state investment vehicle, Danantara.
The policy’s ostensible goals are to expand state oversight of exports and combat tax evasion by resource firms while positioning Danantara as a major player in the global commodities trade. The details continue to evolve, and local business associations are in the meantime pleading with the government to roll the new system out slowly.
This proposed solution to Indonesia’s long-standing problems of revenue leakage has been met with widespread scepticism — if the problem is dodgy invoicing, then why not reform customs and other taxation processes? That the government has not opted for more narrow technical solutions speaks to the grander political objectives at the heart of Danantara Sumberdaya Indonesia.
https://eastasiaforum.org/2026/06/14/prabowos-new-brand-of-resource-nationalism/
--------
Indonesia's Export Monopoly May Trigger the Collapse of Palm Oil Industry
There is a classic adage in political economy: the road to economic ruin is often paved with populist good intentions. When President Prabowo Subianto announced plans to establish PT Danantara Sumber Daya Indonesia (DSI) on May 20, 2026, as the sole state-owned exporter of strategic commodities, the narrative of economic sovereignty immediately gained traction.
However, within just a few days, the market responded with brutal honesty: panic. This policy proposal, which was not yet finalized, immediately triggered a massive shock in the upstream sector. Prices for fresh fruit bunches (FFB) of deeply plummeted palm oil. Fearing regulatory uncertainty, several palm oil mills (PKS) chose to play it safe by halting purchases of fruit from external sources and prioritizing supplies from their own core plantations.
At the end of the supply chain, smallholder farmers are the hardest hit; palm fruits rot on the trees and lose their market value. A policy introduced abruptly, with minimal dialogue and a lack of transparency, instantly disrupted the market even before the agency officially began operations.
The government's desire to intervene in and monopolize the commodities business is nothing new. To date, the private sector and people-based enterprises have proven to be the primary drivers of the domestic economy.
https://sawitindonesia.com/export-monopoly-may-trigger-the-collapse-of-palm-oil-industry/
--------
Indonesia's Forestry Task Force Targets Palm Oil Sector; SD Guthrie Seeks Resolution Over 2,800 Hectares Affected
Jakarta, SAWIT INDONESIA — SD Guthrie, one of the world's largest palm oil producers, is actively engaging with the Indonesian government following the enforcement actions of a specialized state task force aimed at cracking down on illegal plantation operations within forest areas.
The task force, established last year, to eliminate regulatory violations across the lucrative palm oil sector. In its initial sweeps, the unit seized approximately 4.1 million hectares of plantations identified as operating illegally within designated forest zones—a sweeping crackdown that has disrupted both corporate giants and smallholder farmers alike.
Speaking at a press conference on Thursday, SD Guthrie Chief Executive Mohd Haris Mohd Arshad confirmed that the company is currently working alongside Indonesian authorities to address the land issues. Around 2% of SD Guthrie's total land bank in Indonesia, amounting to roughly 2,800 hectares, has been caught up in the task force's seizures. Indonesia holds critical strategic value for the Malaysian firm, accounting for about one-third of its total global land holdings.
Despite the ongoing discussions, Mohd Haris clarified that the company's day-to-day operations remain stable. SD Guthrie has not received any official government decree regarding its properties and continues to harvest its palm oil crops as usual.
During the brief, Mohd Haris also weighed in on Jakarta's broader economic strategy, specifically its plans to consolidate top commodity exports under the oversight of a centralized state agency. He described the move as “understandable,” noting that the Indonesian government is rightly focused on plugging revenue leakages. He emphasized that SD Guthrie is not implicated in those financial concerns, reaffirming that the company remains one of Indonesia's largest corporate taxpayers.
https://sawitindonesia.com/indonesias-forestry-task-force-targets-palm-oil-sector-sd-guthrie-seeks-resolution-over-2800-hectares-affected/
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174 Johor smallholders get RM5.92m replanting aid amid MSPO push
BATU PAHAT, June 14: A total of 174 oil palm smallholders in Johor have benefited from the Oil Palm Smallholder Replanting Financing Incentive Scheme (TSPKS 2.0), with RM5.92 million in financing approved for replanting projects covering 422.8 hectares as of March this year.
The initiative is part of broader efforts by the Ministry of Plantation and Commodities (KPK), together with the Malaysian Palm Oil Board (MPOB) and the Malaysian Sustainable Palm Oil (MSPO) Council, to enhance the productivity, competitiveness and sustainability of smallholders in the state.
Johor currently has the highest number of private oil palm smallholders in Malaysia, with 62,897 smallholders managing a total planted area of 150,190 hectares.
Minister of Plantation and Commodities Datuk Seri Dr Noraini Ahmad said strengthening the smallholder sector remains a key government priority to ensure the nation’s oil palm industry remains competitive, sustainable and capable of contributing to economic growth.
“Smallholders are the backbone of the nation’s oil palm industry. Therefore, efforts to increase productivity, expand Malaysian Sustainable Palm Oil (MSPO) certification, and strengthen access to financing and markets must continue to be intensified to ensure they derive greater benefits from the industry’s value chain,” she said while officiating the MSPO Strengthening Programme for Oil Palm Smallholders in the Batu Pahat district at Sri Medan today.
The TSPKS 2.0 initiative aims to assist smallholders in replanting ageing and less productive oil palm trees, enabling them to improve yields and increase income.
Noraini said MPOB, through its network of 49 Palm Oil Extension Services (TUNAS) offices nationwide, continues to play a vital role in helping smallholders adopt good agricultural practices, enhance farm productivity and comply with sustainability standards.
In Johor alone, 43 Sustainable Palm Oil Clusters (SPOCs) have been established to expand participation in MSPO certification and strengthen the position of Malaysian palm oil in global markets, where sustainability requirements are becoming increasingly important.
MPOB and the MSPO Council are also strengthening collaboration to widen smallholder participation in MSPO certification, particularly in Johor, as international markets continue to place greater emphasis on sustainably certified products.
To further support smallholders, MPOB has introduced development programmes such as the “30 Tonnes Club” and the Sustainable Palm Oil Growers’ Cooperative (KPSM), aimed at improving productivity, strengthening economic resilience and expanding market access.
Through KPSM, smallholders are encouraged to market fresh fruit bunches directly to palm oil mills through cooperatives, allowing them to obtain more transparent and competitive pricing while strengthening the overall supply chain of the nation’s palm oil industry. – TVS https://www.tvsarawak.my/2026/06/14/174-johor-smallholders-get-rm5-92m-replanting-aid-amid-mspo-push/
Prabowo’s new brand of resource nationalism
In Brief
The Indonesian government's proposal to channel major commodity exports through a new state-owned entity, Danantara Sumberdaya Indonesia, reflects President Prabowo Subianto’s new style of resource nationalism. Whereas resource nationalist policies under the Susilo Bambang Yudhoyono and Joko Widodo administrations generally balanced state goals with the interests of domestic businesses, Prabowo’s approach prioritises state control and increasingly challenges the private-sector, including powerful Indonesian oligarchs. Initiatives like Danantara Sumberdaya Indonesia purport to address long-standing problems in the resource industry, but in practice are highly discretionary. Indonesia’s resource sector requires reform, but Prabowo’s statist and coercive brand of resource nationalism is no solution.
Last month, Indonesian President Prabowo Subianto blindsided his own ministers, stunned the business community and confused global markets with the announcement that exports of key commodities — including palm oil, coal and certain minerals — would soon be channelled through Danantara Sumberdaya Indonesia, a new subsidiary of Indonesia’s state investment vehicle, Danantara.
The policy’s ostensible goals are to expand state oversight of exports and combat tax evasion by resource firms while positioning Danantara as a major player in the global commodities trade. The details continue to evolve, and local business associations are in the meantime pleading with the government to roll the new system out slowly.
This proposed solution to Indonesia’s long-standing problems of revenue leakage has been met with widespread scepticism — if the problem is dodgy invoicing, then why not reform customs and other taxation processes? That the government has not opted for more narrow technical solutions speaks to the grander political objectives at the heart of Danantara Sumberdaya Indonesia.
https://eastasiaforum.org/2026/06/14/prabowos-new-brand-of-resource-nationalism/
--------
Indonesia's Export Monopoly May Trigger the Collapse of Palm Oil Industry
There is a classic adage in political economy: the road to economic ruin is often paved with populist good intentions. When President Prabowo Subianto announced plans to establish PT Danantara Sumber Daya Indonesia (DSI) on May 20, 2026, as the sole state-owned exporter of strategic commodities, the narrative of economic sovereignty immediately gained traction.
However, within just a few days, the market responded with brutal honesty: panic. This policy proposal, which was not yet finalized, immediately triggered a massive shock in the upstream sector. Prices for fresh fruit bunches (FFB) of deeply plummeted palm oil. Fearing regulatory uncertainty, several palm oil mills (PKS) chose to play it safe by halting purchases of fruit from external sources and prioritizing supplies from their own core plantations.
At the end of the supply chain, smallholder farmers are the hardest hit; palm fruits rot on the trees and lose their market value. A policy introduced abruptly, with minimal dialogue and a lack of transparency, instantly disrupted the market even before the agency officially began operations.
The government's desire to intervene in and monopolize the commodities business is nothing new. To date, the private sector and people-based enterprises have proven to be the primary drivers of the domestic economy.
https://sawitindonesia.com/export-monopoly-may-trigger-the-collapse-of-palm-oil-industry/
--------
Indonesia's Forestry Task Force Targets Palm Oil Sector; SD Guthrie Seeks Resolution Over 2,800 Hectares Affected
Jakarta, SAWIT INDONESIA — SD Guthrie, one of the world's largest palm oil producers, is actively engaging with the Indonesian government following the enforcement actions of a specialized state task force aimed at cracking down on illegal plantation operations within forest areas.
The task force, established last year, to eliminate regulatory violations across the lucrative palm oil sector. In its initial sweeps, the unit seized approximately 4.1 million hectares of plantations identified as operating illegally within designated forest zones—a sweeping crackdown that has disrupted both corporate giants and smallholder farmers alike.
Speaking at a press conference on Thursday, SD Guthrie Chief Executive Mohd Haris Mohd Arshad confirmed that the company is currently working alongside Indonesian authorities to address the land issues. Around 2% of SD Guthrie's total land bank in Indonesia, amounting to roughly 2,800 hectares, has been caught up in the task force's seizures. Indonesia holds critical strategic value for the Malaysian firm, accounting for about one-third of its total global land holdings.
Despite the ongoing discussions, Mohd Haris clarified that the company's day-to-day operations remain stable. SD Guthrie has not received any official government decree regarding its properties and continues to harvest its palm oil crops as usual.
During the brief, Mohd Haris also weighed in on Jakarta's broader economic strategy, specifically its plans to consolidate top commodity exports under the oversight of a centralized state agency. He described the move as “understandable,” noting that the Indonesian government is rightly focused on plugging revenue leakages. He emphasized that SD Guthrie is not implicated in those financial concerns, reaffirming that the company remains one of Indonesia's largest corporate taxpayers.
https://sawitindonesia.com/indonesias-forestry-task-force-targets-palm-oil-sector-sd-guthrie-seeks-resolution-over-2800-hectares-affected/
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174 Johor smallholders get RM5.92m replanting aid amid MSPO push
BATU PAHAT, June 14: A total of 174 oil palm smallholders in Johor have benefited from the Oil Palm Smallholder Replanting Financing Incentive Scheme (TSPKS 2.0), with RM5.92 million in financing approved for replanting projects covering 422.8 hectares as of March this year.
The initiative is part of broader efforts by the Ministry of Plantation and Commodities (KPK), together with the Malaysian Palm Oil Board (MPOB) and the Malaysian Sustainable Palm Oil (MSPO) Council, to enhance the productivity, competitiveness and sustainability of smallholders in the state.
Johor currently has the highest number of private oil palm smallholders in Malaysia, with 62,897 smallholders managing a total planted area of 150,190 hectares.
Minister of Plantation and Commodities Datuk Seri Dr Noraini Ahmad said strengthening the smallholder sector remains a key government priority to ensure the nation’s oil palm industry remains competitive, sustainable and capable of contributing to economic growth.
“Smallholders are the backbone of the nation’s oil palm industry. Therefore, efforts to increase productivity, expand Malaysian Sustainable Palm Oil (MSPO) certification, and strengthen access to financing and markets must continue to be intensified to ensure they derive greater benefits from the industry’s value chain,” she said while officiating the MSPO Strengthening Programme for Oil Palm Smallholders in the Batu Pahat district at Sri Medan today.
The TSPKS 2.0 initiative aims to assist smallholders in replanting ageing and less productive oil palm trees, enabling them to improve yields and increase income.
Noraini said MPOB, through its network of 49 Palm Oil Extension Services (TUNAS) offices nationwide, continues to play a vital role in helping smallholders adopt good agricultural practices, enhance farm productivity and comply with sustainability standards.
In Johor alone, 43 Sustainable Palm Oil Clusters (SPOCs) have been established to expand participation in MSPO certification and strengthen the position of Malaysian palm oil in global markets, where sustainability requirements are becoming increasingly important.
MPOB and the MSPO Council are also strengthening collaboration to widen smallholder participation in MSPO certification, particularly in Johor, as international markets continue to place greater emphasis on sustainably certified products.
To further support smallholders, MPOB has introduced development programmes such as the “30 Tonnes Club” and the Sustainable Palm Oil Growers’ Cooperative (KPSM), aimed at improving productivity, strengthening economic resilience and expanding market access.
Through KPSM, smallholders are encouraged to market fresh fruit bunches directly to palm oil mills through cooperatives, allowing them to obtain more transparent and competitive pricing while strengthening the overall supply chain of the nation’s palm oil industry. – TVS https://www.tvsarawak.my/2026/06/14/174-johor-smallholders-get-rm5-92m-replanting-aid-amid-mspo-push/
June 14, 2026
Germany Says Trade Still Unharmed by Indonesia’s One-Gate Export
Jakarta. Indonesia’s export system shake-up has no immediate impact on its trade with palm oil importer Germany, according to an envoy, as Berlin keeps an eye on possible changes.
Indonesia’s trading partners are starting to speak up on Jakarta’s new trade regime one by one. President Prabowo Subianto has made a surprise move to bring exports of all of Indonesia’s strategic commodities under the control of a unit under the sovereign wealth fund Danantara in a move to tackle losses from under-invoicing. The one-gate export system currently covers palm oil, ferroalloys, and coal.
German Ambassador to Indonesia Ralf Beste stays positive that the policy will not undermine Berlin’s intention to grow trade, more so as the tariff-slashing accord by the European Union (EU) nears.
“That doesn’t say anything about the way that any country is organizing its trade. We see the reorganization is happening. I think there are still changes in that. We will try to take note and analyze that,” Beste told the press in Jakarta on Friday.
“As of now, I don’t see any immediate effect on the level of trade and the intensity that we have. There is room for enlargement anyway, and we won’t be impeded by that [policy]. I’m pretty optimistic.”
The new system is now in a transition period until Dec. 31. Exporters of the aforementioned commodities have to report their sales contracts to Danantara Sumberdaya Indonesia (DSI). The agency will have full control of the export process starting in January 2027, including the payment collection and shipments.
Indonesia reported that its trade with Germany had totaled roughly $6.1 billion in 2025. Throughout last year, German-bound exports under the sub-category “vegetable oils/animal fats” hit $78.6 million in 2025. Shipments dropped almost 70% year-on-year to just $8.2 million from January to April 2026. Palm oil falls under this sub-category.
Palm oil issues have complicated Indonesia-EU relations. The European grouping has rolled out the EUDR, an upcoming law that will require sellers of palm oil entering the EU market to provide a due diligence statement proving their products do not cause deforestation. The policy has rattled Indonesia over its impact on the smallholders.
Beste did not deny the likelihood that either Prabowo or his German counterpart Frank-Walter Steinmeier would bring up the EUDR when they meet in Jakarta next week. However, the diplomat said that EUDR matters were usually discussed with EU authorities, although "a bilateral take is possible".
Asked if Germany is open to importing more Indonesian palm oil, Beste replied that such decisions would “ultimately hinge on the German consumers”, while pointing out “their critical take” on the suppliers’ sustainability.
“We align ourselves with the EU when it comes to the legislation and regulation. If there are complaints or qualifications from the Indonesian side, that would be a moment where these would be brought forth,” Beste said.
Jakarta is counting down to its free trade agreement with the EU, which is set to kick in early next year. This pact, dubbed CEPA for Comprehensive Economic Partnership Agreement, will eliminate virtually all tariffs.
An EU factsheet wrote that the deal would include an “export duty-free quota for crude palm and palm kernel oil”.
Indonesia is the world’s largest supplier of palm oil -- an agricultural commodity found in many everyday items such as cosmetics and snacks. Jakarta Globe
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Clear law needed to block forced labour goods, say activists
PETALING JAYA: Malaysia needs a clear law to block goods made with forced labour from entering the country, activists say, following a US probe that found Putrajaya had failed to impose or enforce such a ban.
The Office of the US Trade Representative is proposing an additional 10% duty on Malaysian products after finding the country lacks an effective ban on imports made wholly or partly with forced labour.
Malaysia has faced years of scrutiny over forced labour risks, particularly involving migrant workers.
The 2023 Global Slavery Index estimated that 6.3 in every 1,000 people were living in modern slavery in 2021, while the US state department placed Malaysia on Tier 2 in its 2025 Trafficking in Persons report.
Tenaganita executive director Glorene Das said Putrajaya had taken steps to address forced labour in domestic industries, particularly in the glove, palm oil, electronics and manufacturing sectors.
However, she said this was not enough as Malaysia was also a trading nation where goods, raw materials and components moved across borders.
“If we only look at forced labour within our own factories but ignore what enters our markets through imports, subcontracting and regional supply chains, we are only addressing part of the problem,” she said.
She said the use of forced labour often begins long before workers reach factories — through unethical recruitment, excessive fees, debt bondage, deception, passport confiscation, wage theft and poor living conditions.
Glorene said any forced labour import ban must include strong enforcement, supply chain checks, and safe reporting channels for workers.
She also said forced labour must be addressed not just due to trade pressure, but because no worker should face exploitation, abuse or trafficking.
North-South Initiative executive director Adrian Pereira said the gap in Malaysia’s response to forced labour lay not only in labour laws, but also in Malaysia’s inability to deal with goods linked to forced labour once they have entered the country’s trading system.
He said the issue stemmed partly from earlier US concerns over the use of forced labour in the making of products and components, especially by the Uyghurs in China.
Pereira said Malaysia’s competition laws have not been tested in cases involving forced labour or unfair labour-linked advantages, and does not directly address import-export controls.
He said a proper mechanism is needed to deal with suspect goods entering or leaving the country.
Former Klang MP Charles Santiago said while the US was “no saint on labour rights”, Malaysia had opened itself to the forced labour allegations through weak enforcement, unethical recruitment, debt bondage risks and impunity.
“The question is not whether the US is hypocritical. Of course it is. (The question is) why has Malaysia left its workers so exposed that hypocrites can weaponise their suffering?” he asked on X. FMT
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Governance Is Not Optional: Why Africa’s Investment Future Depends on Protecting Companies That Play by the Rules
DRC—In May 2026, as health authorities in the Democratic Republic of Congo, Uganda, and South Sudan raised the alarm over a new Ebola “Bundibugyo” outbreak, one company in the DRC’s remote interior did not wait to be told what to do, writes Temba Otichil’lo.
Plantations et Huileries du Congo SA — PHC SA — immediately mobilised its medical teams across its operational sites in Mongala, Tshopo, and Équateur provinces, launched community awareness campaigns in camps, villages, and workplaces, and began preparing dedicated isolation units within its hospital network.
No suspected Ebola case had been identified within PHC facilities. The company acted anyway.
That instinct — to anticipate risk, to act before crisis, to take responsibility for communities that the state cannot always reach — is what governance adherence looks like in practice. It is not a compliance form. It is a culture.
PHC SA is one of sub-Saharan Africa’s largest agro-industrial companies, employing more than 11,000 workers directly and sustaining the livelihoods of an estimated 55,000 dependants across three of the DRC’s most remote provinces. But its footprint extends far beyond palm oil.
The company manages four hospitals — Pembe, Lokutu, Lokumete, and Boteka — supervises 16 dispensaries and four health centres, and has built 15 health centres that have been formally handed over to the Congolese State.
In regions where the nearest government medical facility may be hours away, PHC’s healthcare infrastructure is not a corporate benefit. It is the healthcare system.
This matters beyond the humanitarian. It matters because PHC SA is currently under sustained attack — not in a court of law, where every challenge to the company’s 2023 recapitalization has been dismissed — but in the court of public opinion, through a coordinated campaign of misinformation designed to destabilise a company that has done everything right.
The recapitalization was completed in full compliance with the OHADA legal framework — specifically Articles 562 to 564 of the Uniform Act on Commercial Companies.
It was authorised by an Extraordinary General Meeting, validated by the courts, and executed transparently.
The Congolese State, as a minority shareholder, was formally notified and chose not to exercise its pre-emptive rights. The legal record is unambiguous.
One name that has surfaced prominently in the campaign against PHC SA is Kalaa Mpinga — a businessman with reported commercial interests in the DRC’s agricultural sector.
His name has been associated with the pressure campaign against PHC SA, and he has been widely speculated, in Congolese and regional business circles, as a potential candidate for a senior government role — possibly Minister of Agriculture — in the very sector where his commercial interests and disputes with PHC SA are concentrated.
It is important to be precise. No court has found Kalaa Mpinga guilty of any offence in relation to PHC SA. What is being raised is a governance question, not a legal verdict.
The question is this: can a country credibly claim to uphold the rule of law if it appoints, to a position of regulatory authority over an industry, an individual who has an active and documented commercial dispute with one of that industry’s largest operators? That is not a question of guilt.
It is a question of institutional integrity — and it is one that any serious government, investor, or governance institution is entitled to ask.
The stakes are not abstract. At the moment this campaign of destabilisation is being waged, PHC SA’s medical teams are treating MPOX patients at Pembe Hospital in Mongala Province.
They are equipping maternity wards with incubators for premature newborns. They are running family planning campaigns in communities where closely spaced pregnancies remain a leading cause of maternal mortality.
They are, in the most literal sense, keeping people alive in places where no one else is doing so.
To threaten PHC SA’s operational stability is not a commercial dispute. It is a public health risk. It is a threat to the 55,000 dependants whose livelihoods rest on the company’s continued operation.
It is a threat to the patients in four hospitals who have nowhere else to go.
Africa is at a critical inflection point. Development finance institutions, sovereign wealth funds, and private equity are evaluating African markets with greater seriousness than at any point in the past two decades.
What they are evaluating, above all else, is governance. They are asking whether contracts will be honoured, whether courts will be independent, and whether political office will be used to protect investment or to prey upon it.
The answer must be unequivocal. Governments across the continent — and the DRC specifically — must demonstrate that companies which adhere to the law, invest in communities, and protect citizens will themselves be protected.
Conflict-of-interest standards must be enforced in practice, not in aspiration. Individuals who weaponise political access against legitimate business must face accountability, not appointment.
PHC SA chose to build on the right foundation. It chose governance. It chose transparency. It chose to show up for Congolese citizens — in the fields, in the hospitals, and in the face of an Ebola outbreak — when it did not have to.
The question now is whether the institutions around it will hold that foundation firm.
Africa is watching. Africa Brief
Germany Says Trade Still Unharmed by Indonesia’s One-Gate Export
Jakarta. Indonesia’s export system shake-up has no immediate impact on its trade with palm oil importer Germany, according to an envoy, as Berlin keeps an eye on possible changes.
Indonesia’s trading partners are starting to speak up on Jakarta’s new trade regime one by one. President Prabowo Subianto has made a surprise move to bring exports of all of Indonesia’s strategic commodities under the control of a unit under the sovereign wealth fund Danantara in a move to tackle losses from under-invoicing. The one-gate export system currently covers palm oil, ferroalloys, and coal.
German Ambassador to Indonesia Ralf Beste stays positive that the policy will not undermine Berlin’s intention to grow trade, more so as the tariff-slashing accord by the European Union (EU) nears.
“That doesn’t say anything about the way that any country is organizing its trade. We see the reorganization is happening. I think there are still changes in that. We will try to take note and analyze that,” Beste told the press in Jakarta on Friday.
“As of now, I don’t see any immediate effect on the level of trade and the intensity that we have. There is room for enlargement anyway, and we won’t be impeded by that [policy]. I’m pretty optimistic.”
The new system is now in a transition period until Dec. 31. Exporters of the aforementioned commodities have to report their sales contracts to Danantara Sumberdaya Indonesia (DSI). The agency will have full control of the export process starting in January 2027, including the payment collection and shipments.
Indonesia reported that its trade with Germany had totaled roughly $6.1 billion in 2025. Throughout last year, German-bound exports under the sub-category “vegetable oils/animal fats” hit $78.6 million in 2025. Shipments dropped almost 70% year-on-year to just $8.2 million from January to April 2026. Palm oil falls under this sub-category.
Palm oil issues have complicated Indonesia-EU relations. The European grouping has rolled out the EUDR, an upcoming law that will require sellers of palm oil entering the EU market to provide a due diligence statement proving their products do not cause deforestation. The policy has rattled Indonesia over its impact on the smallholders.
Beste did not deny the likelihood that either Prabowo or his German counterpart Frank-Walter Steinmeier would bring up the EUDR when they meet in Jakarta next week. However, the diplomat said that EUDR matters were usually discussed with EU authorities, although "a bilateral take is possible".
Asked if Germany is open to importing more Indonesian palm oil, Beste replied that such decisions would “ultimately hinge on the German consumers”, while pointing out “their critical take” on the suppliers’ sustainability.
“We align ourselves with the EU when it comes to the legislation and regulation. If there are complaints or qualifications from the Indonesian side, that would be a moment where these would be brought forth,” Beste said.
Jakarta is counting down to its free trade agreement with the EU, which is set to kick in early next year. This pact, dubbed CEPA for Comprehensive Economic Partnership Agreement, will eliminate virtually all tariffs.
An EU factsheet wrote that the deal would include an “export duty-free quota for crude palm and palm kernel oil”.
Indonesia is the world’s largest supplier of palm oil -- an agricultural commodity found in many everyday items such as cosmetics and snacks. Jakarta Globe
--------
Clear law needed to block forced labour goods, say activists
PETALING JAYA: Malaysia needs a clear law to block goods made with forced labour from entering the country, activists say, following a US probe that found Putrajaya had failed to impose or enforce such a ban.
The Office of the US Trade Representative is proposing an additional 10% duty on Malaysian products after finding the country lacks an effective ban on imports made wholly or partly with forced labour.
Malaysia has faced years of scrutiny over forced labour risks, particularly involving migrant workers.
The 2023 Global Slavery Index estimated that 6.3 in every 1,000 people were living in modern slavery in 2021, while the US state department placed Malaysia on Tier 2 in its 2025 Trafficking in Persons report.
Tenaganita executive director Glorene Das said Putrajaya had taken steps to address forced labour in domestic industries, particularly in the glove, palm oil, electronics and manufacturing sectors.
However, she said this was not enough as Malaysia was also a trading nation where goods, raw materials and components moved across borders.
“If we only look at forced labour within our own factories but ignore what enters our markets through imports, subcontracting and regional supply chains, we are only addressing part of the problem,” she said.
She said the use of forced labour often begins long before workers reach factories — through unethical recruitment, excessive fees, debt bondage, deception, passport confiscation, wage theft and poor living conditions.
Glorene said any forced labour import ban must include strong enforcement, supply chain checks, and safe reporting channels for workers.
She also said forced labour must be addressed not just due to trade pressure, but because no worker should face exploitation, abuse or trafficking.
North-South Initiative executive director Adrian Pereira said the gap in Malaysia’s response to forced labour lay not only in labour laws, but also in Malaysia’s inability to deal with goods linked to forced labour once they have entered the country’s trading system.
He said the issue stemmed partly from earlier US concerns over the use of forced labour in the making of products and components, especially by the Uyghurs in China.
Pereira said Malaysia’s competition laws have not been tested in cases involving forced labour or unfair labour-linked advantages, and does not directly address import-export controls.
He said a proper mechanism is needed to deal with suspect goods entering or leaving the country.
Former Klang MP Charles Santiago said while the US was “no saint on labour rights”, Malaysia had opened itself to the forced labour allegations through weak enforcement, unethical recruitment, debt bondage risks and impunity.
“The question is not whether the US is hypocritical. Of course it is. (The question is) why has Malaysia left its workers so exposed that hypocrites can weaponise their suffering?” he asked on X. FMT
--------
Governance Is Not Optional: Why Africa’s Investment Future Depends on Protecting Companies That Play by the Rules
DRC—In May 2026, as health authorities in the Democratic Republic of Congo, Uganda, and South Sudan raised the alarm over a new Ebola “Bundibugyo” outbreak, one company in the DRC’s remote interior did not wait to be told what to do, writes Temba Otichil’lo.
Plantations et Huileries du Congo SA — PHC SA — immediately mobilised its medical teams across its operational sites in Mongala, Tshopo, and Équateur provinces, launched community awareness campaigns in camps, villages, and workplaces, and began preparing dedicated isolation units within its hospital network.
No suspected Ebola case had been identified within PHC facilities. The company acted anyway.
That instinct — to anticipate risk, to act before crisis, to take responsibility for communities that the state cannot always reach — is what governance adherence looks like in practice. It is not a compliance form. It is a culture.
PHC SA is one of sub-Saharan Africa’s largest agro-industrial companies, employing more than 11,000 workers directly and sustaining the livelihoods of an estimated 55,000 dependants across three of the DRC’s most remote provinces. But its footprint extends far beyond palm oil.
The company manages four hospitals — Pembe, Lokutu, Lokumete, and Boteka — supervises 16 dispensaries and four health centres, and has built 15 health centres that have been formally handed over to the Congolese State.
In regions where the nearest government medical facility may be hours away, PHC’s healthcare infrastructure is not a corporate benefit. It is the healthcare system.
This matters beyond the humanitarian. It matters because PHC SA is currently under sustained attack — not in a court of law, where every challenge to the company’s 2023 recapitalization has been dismissed — but in the court of public opinion, through a coordinated campaign of misinformation designed to destabilise a company that has done everything right.
The recapitalization was completed in full compliance with the OHADA legal framework — specifically Articles 562 to 564 of the Uniform Act on Commercial Companies.
It was authorised by an Extraordinary General Meeting, validated by the courts, and executed transparently.
The Congolese State, as a minority shareholder, was formally notified and chose not to exercise its pre-emptive rights. The legal record is unambiguous.
One name that has surfaced prominently in the campaign against PHC SA is Kalaa Mpinga — a businessman with reported commercial interests in the DRC’s agricultural sector.
His name has been associated with the pressure campaign against PHC SA, and he has been widely speculated, in Congolese and regional business circles, as a potential candidate for a senior government role — possibly Minister of Agriculture — in the very sector where his commercial interests and disputes with PHC SA are concentrated.
It is important to be precise. No court has found Kalaa Mpinga guilty of any offence in relation to PHC SA. What is being raised is a governance question, not a legal verdict.
The question is this: can a country credibly claim to uphold the rule of law if it appoints, to a position of regulatory authority over an industry, an individual who has an active and documented commercial dispute with one of that industry’s largest operators? That is not a question of guilt.
It is a question of institutional integrity — and it is one that any serious government, investor, or governance institution is entitled to ask.
The stakes are not abstract. At the moment this campaign of destabilisation is being waged, PHC SA’s medical teams are treating MPOX patients at Pembe Hospital in Mongala Province.
They are equipping maternity wards with incubators for premature newborns. They are running family planning campaigns in communities where closely spaced pregnancies remain a leading cause of maternal mortality.
They are, in the most literal sense, keeping people alive in places where no one else is doing so.
To threaten PHC SA’s operational stability is not a commercial dispute. It is a public health risk. It is a threat to the 55,000 dependants whose livelihoods rest on the company’s continued operation.
It is a threat to the patients in four hospitals who have nowhere else to go.
Africa is at a critical inflection point. Development finance institutions, sovereign wealth funds, and private equity are evaluating African markets with greater seriousness than at any point in the past two decades.
What they are evaluating, above all else, is governance. They are asking whether contracts will be honoured, whether courts will be independent, and whether political office will be used to protect investment or to prey upon it.
The answer must be unequivocal. Governments across the continent — and the DRC specifically — must demonstrate that companies which adhere to the law, invest in communities, and protect citizens will themselves be protected.
Conflict-of-interest standards must be enforced in practice, not in aspiration. Individuals who weaponise political access against legitimate business must face accountability, not appointment.
PHC SA chose to build on the right foundation. It chose governance. It chose transparency. It chose to show up for Congolese citizens — in the fields, in the hospitals, and in the face of an Ebola outbreak — when it did not have to.
The question now is whether the institutions around it will hold that foundation firm.
Africa is watching. Africa Brief
June 13, 2026
Indonesia government will not take over exports of natural resources – Danantara exec
SINGAPORE (ICIS)–A company set up to execute Indonesia’s new export control policy was made to monitor and prevent possible export fraud, not to take over exports, an executive said on 11 June.
Danantara Sumberdaya Indonesia (DSI), the company that falls under sovereign wealth fund Danantara for the export of commodities such as crude palm oil (CPO), coal, and ferrous alloys, will not be involved in “taking [exporters’] goods and becoming a middleman who then sells them”, Danantara chief operating officer Dony Oskaria said, according to Indonesia’s government communications agency.
Instead, DSI was established to prevent fraudulent export practices such as transfer pricing and under-invoicing, Oskaria said.
“What matters is that the goal is that transfer pricing must not occur, under-invoicing must not occur. So how does the government monitor this? DSI was established,” he added.
A transition period between 1 June and 31 December has been set up for businesses to report their export activities to DSI through an export service system of the Directorate General of Customs and Excise (DJBC) under the Ministry of Finance.
The government will also continue to honor existing contracts and that companies need not worry about the current trade ecosystem being “destroyed”, Oskaria said.
“There is no desire from the government to destroy our revenue system,” said Oskaria.
“On the contrary, we want our revenue to become even larger.”
President Prabowo Subianto unveiled the export control policy on 20 May, which sent stocks and the rupiah tumbling over fears of tighter control on exports.
Oleochemical market players in Indonesia have expressed some uncertainty on how the policy will proceed now, as the original plan unveiled on 20 May was for DSI to eventually take over the international exports of Indonesia’s natural resources.
“We are also still gauging. We will continue to collect feedback. This is definitely a better solution,” one oleochemical producer said.
Another oleochemical producer said they were “confused and skeptical” over how the policy will be implemented, while a trader said they would wait for July for more clarity. ICIS
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Palm oil buyers book Indonesia orders despite export rule mayhem
(June 12): Palm oil buyers are continuing to lock in Indonesian supplies for the coming months, betting that an official transition period will keep trade flows going as they seek clarity over the country’s new one-gate export policy.
Indonesia unexpectedly moved to centralise key commodity shipments in late May, but has allowed some exporters to keep operating as normal during an initial phase that began recently and will be reviewed after three months. Against that backdrop, there has been little disruption in the flows of palm oil so far, according to buyers and traders who requested anonymity in discussing private transactions.
Indian customers are focused on deliveries in the coming months, while Chinese buyers have started booking cargoes for as far out as December, they said.
“Today it’s still business as usual and it’s still flowing,” said Mohd Haris Mohd Arshad, the president and group chief executive officer of plantation firm SD Guthrie Bhd, which exports as much as 700,000 tons of palm oil and processed palm products a year from its unit in Indonesia. “People are taking it one day at a time, and see what’s going to happen,” he told reporters in Kuala Lumpur this week.
The purchases come as uncertainty hangs over Indonesia’s commodity shipments, including palm oil, of which the country is the world’s biggest producer. With the vegetable oil market already anticipating tightness due to poor weather from a potential super El Niño and Jakarta’s push to roll out a higher biofuel mandate from next month, any further supply disruptions would reverberate through food, biofuel and consumer-goods markets from Asia to Europe and Africa.
President Prabowo Subianto shocked markets late last month with the plan to take control of key commodity exports through a state-backed entity as part of a broader effort to plug revenue leaks. Bloomberg/ The Edge
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Tanzania Seeks Greater Self-Sufficiency in Edible Oils, Tightens Import Rules
As part of its 2026/2027 fiscal program, the government has approved reforms designed to encourage local production while shielding domestic processors from foreign competition.
Tax incentives for local production
The centerpiece of the reform package is a value-added tax (VAT) exemption for edible oils produced from locally grown oilseeds. According to local media reports, Finance Minister Khamis Mussa Omar announced the measure before Parliament on June 11. The exemption is expected to lower production costs for manufacturers while increasing demand for locally produced oilseeds, whose output has expanded steadily in recent years.
Data from the Ministry of Agriculture show that Tanzania’s oilseed harvest rose by nearly 34% over five years, climbing from 1.63 million tons in the 2019/2020 season to 2.18 million tons in 2023/2024. Sunflower and peanut crops dominate the sector, accounting for about 56% and 28% of total oilseed production, respectively, during the 2023/2024 season. Other oilseed crops include sesame, coconut, and oil palm.
Trade protection measures
On the trade front, the government has introduced a 10% import duty on all crude edible oils, including crude palm oil, which had previously been exempt. According to Omar, the measure is intended to address cases of misdeclaration and incorrect product classification by traders who take advantage of existing incentives on crude palm oil to import semi-refined palm oil instead. Imported refined edible oils will continue to face steep tariffs of 35% or $300 per ton. The policy reflects the government’s effort to protect local refining facilities and encourage more value-added processing within the country rather than relying on imported finished products.
Through these reforms, Tanzanian authorities hope to build a more self-sufficient and competitive edible oil industry by improving access to raw materials and reducing tax burdens on manufacturers. The measures could also encourage new investment in processing and refining capacity over the coming years.
For Dodoma, another key objective is to reduce the country’s rapidly growing edible oil import bill. Data from Trade Map show that Tanzania imported nearly $659 million worth of vegetable oils in 2025, almost three times the $228.4 million spent on such imports a year earlier. Ecofin Agency
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Over 54,000 Johor oil palm smallholders secure MSPO certification
BATU PAHAT: More than 54,000 Johor oil palm smallholders have obtained the Malaysian Sustainable Palm Oil (MSPO) certification, strengthening the country's position in the global market.
Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said over 16,000 smallholders in Batu Pahat alone had secured the certification, reflecting strong participation in the government's sustainability agenda.
She said MSPO certification is increasingly important amid global economic uncertainty, geopolitical tensions, and supply chain disruptions, as it serves as proof of Malaysia's commitment to responsible production.
"MSPO is not merely a certification. It demonstrates Malaysia's commitment to sustainable and responsible palm oil production while strengthening confidence among international markets.
"It also serves as an important shield against unfounded allegations and negative perceptions directed at the country's palm oil industry," she said after officiating the Batu Pahat Oil Palm Smallholders MSPO Strengthening programme at Dewan Peladang Sri Medan here today.
Noraini said smallholders remain the backbone of the national palm oil industry, contributing significantly to local economies and rural livelihoods.
To enhance productivity and incomes, she said the government will continue providing support through the Oil Palm Smallholders Replanting Financing Incentive Scheme 2.0 (TSPKS 2.0), Tunas advisory services, crop disease management programmes, and the promotion of good agricultural practices.
In Batu Pahat, 222 applications under TSPKS 2.0 have been approved, covering more than 430 hectares of plantation land.
She added that nine estate road projects for smallholders had also been approved with allocations exceeding RM1.8 million to improve the transportation of fresh fruit bunches and operational efficiency.
Noraini, who is also the Parit Sulong member of parliament, said the government remains committed to ensuring no smallholder is left behind in efforts to modernise and strengthen the sector.
"When smallholders progress, local economies will grow, and the country's palm oil industry will become even stronger," she said.
The programme, organised by the Malaysian Palm Oil Board (MPOB) in collaboration with the Malaysian Sustainable Palm Oil Council (MSPO), aimed to raise awareness and encourage wider adoption of the certification. New Straits Times
Indonesia government will not take over exports of natural resources – Danantara exec
SINGAPORE (ICIS)–A company set up to execute Indonesia’s new export control policy was made to monitor and prevent possible export fraud, not to take over exports, an executive said on 11 June.
Danantara Sumberdaya Indonesia (DSI), the company that falls under sovereign wealth fund Danantara for the export of commodities such as crude palm oil (CPO), coal, and ferrous alloys, will not be involved in “taking [exporters’] goods and becoming a middleman who then sells them”, Danantara chief operating officer Dony Oskaria said, according to Indonesia’s government communications agency.
Instead, DSI was established to prevent fraudulent export practices such as transfer pricing and under-invoicing, Oskaria said.
“What matters is that the goal is that transfer pricing must not occur, under-invoicing must not occur. So how does the government monitor this? DSI was established,” he added.
A transition period between 1 June and 31 December has been set up for businesses to report their export activities to DSI through an export service system of the Directorate General of Customs and Excise (DJBC) under the Ministry of Finance.
The government will also continue to honor existing contracts and that companies need not worry about the current trade ecosystem being “destroyed”, Oskaria said.
“There is no desire from the government to destroy our revenue system,” said Oskaria.
“On the contrary, we want our revenue to become even larger.”
President Prabowo Subianto unveiled the export control policy on 20 May, which sent stocks and the rupiah tumbling over fears of tighter control on exports.
Oleochemical market players in Indonesia have expressed some uncertainty on how the policy will proceed now, as the original plan unveiled on 20 May was for DSI to eventually take over the international exports of Indonesia’s natural resources.
“We are also still gauging. We will continue to collect feedback. This is definitely a better solution,” one oleochemical producer said.
Another oleochemical producer said they were “confused and skeptical” over how the policy will be implemented, while a trader said they would wait for July for more clarity. ICIS
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Palm oil buyers book Indonesia orders despite export rule mayhem
(June 12): Palm oil buyers are continuing to lock in Indonesian supplies for the coming months, betting that an official transition period will keep trade flows going as they seek clarity over the country’s new one-gate export policy.
Indonesia unexpectedly moved to centralise key commodity shipments in late May, but has allowed some exporters to keep operating as normal during an initial phase that began recently and will be reviewed after three months. Against that backdrop, there has been little disruption in the flows of palm oil so far, according to buyers and traders who requested anonymity in discussing private transactions.
Indian customers are focused on deliveries in the coming months, while Chinese buyers have started booking cargoes for as far out as December, they said.
“Today it’s still business as usual and it’s still flowing,” said Mohd Haris Mohd Arshad, the president and group chief executive officer of plantation firm SD Guthrie Bhd, which exports as much as 700,000 tons of palm oil and processed palm products a year from its unit in Indonesia. “People are taking it one day at a time, and see what’s going to happen,” he told reporters in Kuala Lumpur this week.
The purchases come as uncertainty hangs over Indonesia’s commodity shipments, including palm oil, of which the country is the world’s biggest producer. With the vegetable oil market already anticipating tightness due to poor weather from a potential super El Niño and Jakarta’s push to roll out a higher biofuel mandate from next month, any further supply disruptions would reverberate through food, biofuel and consumer-goods markets from Asia to Europe and Africa.
President Prabowo Subianto shocked markets late last month with the plan to take control of key commodity exports through a state-backed entity as part of a broader effort to plug revenue leaks. Bloomberg/ The Edge
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Tanzania Seeks Greater Self-Sufficiency in Edible Oils, Tightens Import Rules
- Tanzania will exempt locally produced edible oils from VAT starting in fiscal year 2026/2027.
- The government has introduced a 10% tariff on all imported crude edible oils, including crude palm oil.
- The reforms aim to strengthen domestic processing, support oilseed farmers, and curb rising import costs.
As part of its 2026/2027 fiscal program, the government has approved reforms designed to encourage local production while shielding domestic processors from foreign competition.
Tax incentives for local production
The centerpiece of the reform package is a value-added tax (VAT) exemption for edible oils produced from locally grown oilseeds. According to local media reports, Finance Minister Khamis Mussa Omar announced the measure before Parliament on June 11. The exemption is expected to lower production costs for manufacturers while increasing demand for locally produced oilseeds, whose output has expanded steadily in recent years.
Data from the Ministry of Agriculture show that Tanzania’s oilseed harvest rose by nearly 34% over five years, climbing from 1.63 million tons in the 2019/2020 season to 2.18 million tons in 2023/2024. Sunflower and peanut crops dominate the sector, accounting for about 56% and 28% of total oilseed production, respectively, during the 2023/2024 season. Other oilseed crops include sesame, coconut, and oil palm.
Trade protection measures
On the trade front, the government has introduced a 10% import duty on all crude edible oils, including crude palm oil, which had previously been exempt. According to Omar, the measure is intended to address cases of misdeclaration and incorrect product classification by traders who take advantage of existing incentives on crude palm oil to import semi-refined palm oil instead. Imported refined edible oils will continue to face steep tariffs of 35% or $300 per ton. The policy reflects the government’s effort to protect local refining facilities and encourage more value-added processing within the country rather than relying on imported finished products.
Through these reforms, Tanzanian authorities hope to build a more self-sufficient and competitive edible oil industry by improving access to raw materials and reducing tax burdens on manufacturers. The measures could also encourage new investment in processing and refining capacity over the coming years.
For Dodoma, another key objective is to reduce the country’s rapidly growing edible oil import bill. Data from Trade Map show that Tanzania imported nearly $659 million worth of vegetable oils in 2025, almost three times the $228.4 million spent on such imports a year earlier. Ecofin Agency
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Over 54,000 Johor oil palm smallholders secure MSPO certification
BATU PAHAT: More than 54,000 Johor oil palm smallholders have obtained the Malaysian Sustainable Palm Oil (MSPO) certification, strengthening the country's position in the global market.
Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said over 16,000 smallholders in Batu Pahat alone had secured the certification, reflecting strong participation in the government's sustainability agenda.
She said MSPO certification is increasingly important amid global economic uncertainty, geopolitical tensions, and supply chain disruptions, as it serves as proof of Malaysia's commitment to responsible production.
"MSPO is not merely a certification. It demonstrates Malaysia's commitment to sustainable and responsible palm oil production while strengthening confidence among international markets.
"It also serves as an important shield against unfounded allegations and negative perceptions directed at the country's palm oil industry," she said after officiating the Batu Pahat Oil Palm Smallholders MSPO Strengthening programme at Dewan Peladang Sri Medan here today.
Noraini said smallholders remain the backbone of the national palm oil industry, contributing significantly to local economies and rural livelihoods.
To enhance productivity and incomes, she said the government will continue providing support through the Oil Palm Smallholders Replanting Financing Incentive Scheme 2.0 (TSPKS 2.0), Tunas advisory services, crop disease management programmes, and the promotion of good agricultural practices.
In Batu Pahat, 222 applications under TSPKS 2.0 have been approved, covering more than 430 hectares of plantation land.
She added that nine estate road projects for smallholders had also been approved with allocations exceeding RM1.8 million to improve the transportation of fresh fruit bunches and operational efficiency.
Noraini, who is also the Parit Sulong member of parliament, said the government remains committed to ensuring no smallholder is left behind in efforts to modernise and strengthen the sector.
"When smallholders progress, local economies will grow, and the country's palm oil industry will become even stronger," she said.
The programme, organised by the Malaysian Palm Oil Board (MPOB) in collaboration with the Malaysian Sustainable Palm Oil Council (MSPO), aimed to raise awareness and encourage wider adoption of the certification. New Straits Times
June 12, 2026
Trump’s new tariff offensive puts Indonesia in the firing line
US tariff-stacking mechanism could raise duties on Indonesian exports to effective rate of 18% at the worst possible economic moment
Global trade has once again been shaken by a dramatic shift in US protectionist policy, and Indonesia is once again in the crosshairs.
The change has been driven by a series of targeted investigations conducted under Section 301 of the US Trade Act of 1974, a domestic legal instrument that has become Washington’s new preferred tool for trade enforcement.
It marks a clear departure from the sweeping global tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA), which the US Supreme Court struck down on February 20, 2026, on the grounds that they exceeded President Donald Trump’s executive authority.
Following that ruling, the Trump administration introduced a temporary 10% tariff on February 21, 2026, before launching parallel Section 301 investigations on March 11 and 12. These investigations have since become the foundation of a more structured and legally defensible protectionist strategy.
The key difference between the 2026 Section 301 tariffs and the reciprocal tariffs announced in April 2025 lies in both methodology and legal scope. The earlier reciprocal tariffs relied on a broad macroeconomic formula that linked tariff rates to America’s bilateral trade deficits with individual partners, largely ignoring actual tariff structures.
Under that framework, Indonesia faced the prospect of tariffs as high as 32%. By contrast, the new Section 301 regime employs a tiered enforcement system and allows for tariff stacking, with penalties imposed only after formal investigations and public hearings.
For Indonesia, this new wave of protectionism presents a serious macroeconomic challenge. The US has long been one of Indonesia’s most important export destinations, generating a consistent trade surplus that supports the country’s balance of payments.
Indonesian exports to the US reached US$31.02 billion in 2025. That performance is now under threat from a tariff-stacking mechanism that could ultimately raise duties on Indonesian exports to an effective rate of 18%. The new measures are expected to be phased in after the temporary tariff arrangement expires on July 24, 2026.
Indonesia’s position has become even more vulnerable because several trade privileges that once cushioned exporters have disappeared. The Generalized System of Preferences (GSP), which granted tariff advantages to thousands of Indonesian export products, lapsed after congressional authorization expired.
Without GSP benefits, Indonesian goods now compete on equal footing with products from advanced economies, eroding their price competitiveness in the US market. Consequently, the Agreement on Reciprocal Trade (ART), signed on February 27, 2026, which promised zero tariffs on 1,819 tariff lines, now faces the risk of being overshadowed by a new layer of Section 301 duties. Asia Times
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Danantara COO says new DSI unit will oversee exports
By Reuters
JAKARTA, June 11 (Reuters) - The unit of sovereign wealth fund Danantara Indonesia set up as designated exporter for Indonesia's strategic commodities will oversee deals to prevent fraudulent practices, but will not itself take over exports, a fund executive said on Thursday.
Trump’s new tariff offensive puts Indonesia in the firing line
US tariff-stacking mechanism could raise duties on Indonesian exports to effective rate of 18% at the worst possible economic moment
Global trade has once again been shaken by a dramatic shift in US protectionist policy, and Indonesia is once again in the crosshairs.
The change has been driven by a series of targeted investigations conducted under Section 301 of the US Trade Act of 1974, a domestic legal instrument that has become Washington’s new preferred tool for trade enforcement.
It marks a clear departure from the sweeping global tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA), which the US Supreme Court struck down on February 20, 2026, on the grounds that they exceeded President Donald Trump’s executive authority.
Following that ruling, the Trump administration introduced a temporary 10% tariff on February 21, 2026, before launching parallel Section 301 investigations on March 11 and 12. These investigations have since become the foundation of a more structured and legally defensible protectionist strategy.
The key difference between the 2026 Section 301 tariffs and the reciprocal tariffs announced in April 2025 lies in both methodology and legal scope. The earlier reciprocal tariffs relied on a broad macroeconomic formula that linked tariff rates to America’s bilateral trade deficits with individual partners, largely ignoring actual tariff structures.
Under that framework, Indonesia faced the prospect of tariffs as high as 32%. By contrast, the new Section 301 regime employs a tiered enforcement system and allows for tariff stacking, with penalties imposed only after formal investigations and public hearings.
For Indonesia, this new wave of protectionism presents a serious macroeconomic challenge. The US has long been one of Indonesia’s most important export destinations, generating a consistent trade surplus that supports the country’s balance of payments.
Indonesian exports to the US reached US$31.02 billion in 2025. That performance is now under threat from a tariff-stacking mechanism that could ultimately raise duties on Indonesian exports to an effective rate of 18%. The new measures are expected to be phased in after the temporary tariff arrangement expires on July 24, 2026.
Indonesia’s position has become even more vulnerable because several trade privileges that once cushioned exporters have disappeared. The Generalized System of Preferences (GSP), which granted tariff advantages to thousands of Indonesian export products, lapsed after congressional authorization expired.
Without GSP benefits, Indonesian goods now compete on equal footing with products from advanced economies, eroding their price competitiveness in the US market. Consequently, the Agreement on Reciprocal Trade (ART), signed on February 27, 2026, which promised zero tariffs on 1,819 tariff lines, now faces the risk of being overshadowed by a new layer of Section 301 duties. Asia Times
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Danantara COO says new DSI unit will oversee exports
By Reuters
JAKARTA, June 11 (Reuters) - The unit of sovereign wealth fund Danantara Indonesia set up as designated exporter for Indonesia's strategic commodities will oversee deals to prevent fraudulent practices, but will not itself take over exports, a fund executive said on Thursday.
- Regulations issued earlier this month stated that after December 31 exports of coal, palm oil and ferroalloy can only be carried out by a designated state-owned enterprise. The government later said Danantara Sumberdaya Indonesia had been appointed to the role.
- In a statement on Thursday, Danantara Indonesia COO Dony Oskaria said the goal of the regulations was "not to take (producers') goods and become a broker who then sells them".
- DSI in a separate statement confirmed a June 10 note from securities firm IndoPremier which said that from January 1 next year, DSI will act as a single intermediary for exports, but will not take a trader position.
- Referring to a June 5 note describing DSI's role as an intermediary, "facilitating and overseeing export channelling, while allowing the commercial relationship between producers and their trading partners to continue", it said this would apply from January 1.
- DSI is a part of President Prabowo Subianto's plan to centralise exports of key commodities such as coal, palm oil and ferroalloy to tackle concerns about under-invoicing and transfer pricing.
- Indonesia is the world's biggest exporter of palm oil, thermal coal and nickel.
June 11, 2026
Indonesia to scale back commodity export centralisation, tighten monitoring: Sources
The shift marks a retreat from an earlier plan that would have channelled overseas sales of commodities such as coal, palm oil and ferroalloys through a state-linked entity. PHOTO: AFP
JAKARTA – Indonesia is scaling back a controversial proposal to centralise the export of its strategic commodities, after buyers and exporters raised concerns, The Straits Times has learnt.
Instead, the authorities will impose tighter monitoring on exports of key commodities to prevent exporters from understating shipment values and evading taxes, two government officials told ST.
The shift marks a retreat from an earlier plan that would have channelled overseas sales of commodities such as coal, palm oil and ferroalloys through a state-linked entity, a proposal that sparked concerns over market disruption and tighter export control.
But Indonesia is not going ahead with such restructuring, said the officials, who spoke to ST on condition of anonymity.
One official said Indonesia will instead impose tighter monitoring on exports to prevent under-invoicing – an illicit trade practice in which exporters deliberately understate the value of shipments on official trade documents to evade taxes, reduce royalties and shift profits offshore. Some analysts who spoke to ST said this amounts to a U-turn by the government.
“We will establish a transparent pricing methodology. If an export price is deemed too low, we will require exporters to revise it,” the official told ST. The system is intended to ensure export prices align with prevailing market rates, preventing goods from being sold below market value.
On May 20, President Subianto Prabowo had unveiled plans to centralise all strategic commodity exports under a new state-controlled entity. The entity, called Danantara Sumberdaya Indonesia (DSI), would fall under the broader Danantara sovereign wealth fund structure.
As reported earlier in May, under draft regulations seen by ST then, foreign buyers would no longer deal directly with Indonesian exporters, but instead via the new body, which would oversee contracts, shipping and payments. The transition period was to have begun on June 1, before stricter rules kick in from Sept 1.
By pivoting to an oversight role, Jakarta avoids becoming a single export trader, a structure that some investors and market participants had viewed as close to a state monopoly and potentially disruptive to existing market arrangements.
Still, the government says it remains focused on reducing economic leakages. The tighter monitoring framework aims to recover billions in lost revenue while preserving business certainty and a competitive investment climate.
“We will be tightly monitoring (the situation). But DSI is not going to be a single export trader. It is more of a solo, middle-man entity, whose main job is to ensure fair pricing,” the second government official told ST. The official said this objective would be achieved if Indonesia curbs under-invoicing.
He also dismissed concerns, widely reported in local media, about possible rent-seeking – where profits are extracted without adding real economic value – stressing that the proposed DSI framework would ease exporters’ worries: “DSI would likely take only a very small profit margin – between 0.05 per cent and 0.1 per cent – on traded commodities in order to sustain its operations.”
“The commercial relationship between buyers or traders overseas with exporters may continue. They just need to report to us to make sure there is no under-invoicing,” he added.
The overseas sales of coal, palm oil and ferroalloys, according to government data, totalled US$66.13 billion (S$85 billion) in 2025, accounting for about a quarter of Indonesia’s total exports.
Doubts and stock plunge precede review
The Jakarta Composite Index plunged 3.54 per cent on May 21, following the announcement to centralise commodity exports, before recovering modestly in the next session.
The market’s initial reaction should be read as doubt rather than a rejection of economic nationalism, said Achmad Nur Hidayat, an economist and public policy expert at public university UPN Veteran Jakarta.
“The market does not just read intent. The market reads design,” he told ST. In other words, markets focus less on what governments say they want to do, and more on how the policy would actually work.
Achmad likened the policy shift to repairing a leaking roof: investors are not objecting to the repair itself, but are concerned about the process. Straits Times
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Golden Agri-Resources reports close to 100% traceability-to-plantation for Indonesian palm oil in 2025
Leading palm oil company Golden Agri-Resources (GAR) achieved 99.8% traceability-to-plantation (TTP) for Indonesian palm oil in 2025.
In its 2025 Sustainability Report, the company said it also achieved 100% traceability-to-the-mill (TTM) in all its non-palm products - coconut, soyabean, sugar, and sunflower.
In addition, GAR said it had deepened engagement within its palm oil supply base in 2025 by reaching 11,250 independent smallholders through its Sawit Terampil programme and supporting 1,095 participants to obtain Roundtable on Sustainable Palm Oil (RSPO) certification across more than 2,000ha.
Speaking about the company’s traceability progress, Anita Neville, GAR’s chief sustainability and communications officer, said: “This high level of traceability enables us to engage closely with suppliers … It also means we can retain smallholders in our supply chains and prepare ourselves for the EU Deforestation Regulation and EU Corporate Sustainability Due Diligence Directive.”
However, after more than a decade of progress, Neville said the company recognised it might not reach 100% TTP due to the structural realities of smallholder-based supply chains.
The company pointed out that a significant share of Indonesia’s palm production came from independent smallholders farming on informally held or uncertified land, which made traceability particularly difficult.
“What matters now is how effectively our traceability enables us to identify risk, prioritise intervention and support improvement. Our approach, therefore, prioritises engagement, supporting suppliers to improve practices while maintaining supply and alignment with No Deforestation, No Peat, and No Exploitation (NDPE) commitments,” she added.
GAR uses SmartTrace, a digital, blockchain-based traceability and due diligence platform to track the journey of its products, from plantation to end customer.
In February 2025, the company successfully conducted its first real-world trial of SmartTrace, with a 9,500-tonne shipment of palm oil products to Verborg Group in the Netherlands.
SmartTrace ensured the shipment was 100% traceable to GAR’s plantations in Indonesia and marked the first application in its ongoing test of this landmark compliance system.
Looking ahead Neville said that the company’s sustainability commitments would continue to evolve.
“The next phase of our journey will require greater integration, closer partnerships, and strong execution,” she said.
Listed on the Singapore Exchange since 1999, GAR manages about 531,355ha of oil palm plantations - including smallholder farms - across Indonesia.
In 2025, the company produced 2.2M tonnes of crude palm oil (CPO) and 582,000 tonnes of palm kernel.
The company generated revenue of nearly US$13bn in 2025 from a sales volume of 12.3M tonnes and made a net profit of US$400M.
GAR’s downstream refining and speciality product facilities manufacture a range of products for the global agronomy, food, oleochemical and bioenergy markets.
The company also has complementary businesses such as soyabean-based products in China, sunflower-based products in India, and sugar businesses.
In addition, GAR has shipping management, seaports, jetties, warehouses and bulking facilities in strategic locations. OFI Magazine
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SD Guthrie CEO flags traceability concerns from Indonesia’s export control plan
KUALA LUMPUR (June 11): Indonesia’s move to bring palm oil exports under the control of a state company has raised concerns over the traceability of Roundtable on Sustainable Palm Oil (RSPO)-certified shipments, according to SD Guthrie Bhd (KL:SDG).
“What we understand is that the government intends to monitor exports, and may subsequently channel them through a single body. But can a single entity manage millions of export transactions involving hundreds of thousands of buyers? Is that even feasible? Some buyers want to know where the palm oil is coming from. They want assurance that certified oil is sourced from specific estates, which requires full traceability,” its president and group chief executive officer Mohd Haris Mohd Arshad told reporters after the group’s annual general meeting on Thursday.
He added that buyers in key markets such as the European Union and the US require full traceability, often demanding that palm oil be sourced from specific estates.
Indonesia has introduced new rules to increase government control over palm oil exports. From June 1, 2026, palm oil producers must submit export sales data to the state-owned company Danantara Sumberdaya Indonesia (DSI), which is part of Danantara Indonesia.
The policy is currently in a transition phase. Exporters can still manage their own sales and shipments for now, but DSI is expected to gradually take over export-related functions, potentially from September 2026, with full implementation targeted by Jan 1, 2027.
Under the new system, DSI will act as the sole exporter or mandatory intermediary for palm oil exports and will have authority over export pricing and margins. Existing export contracts can continue during the transition period.
Some companies may be exempted from the full requirements if they have significant investments, refining facilities or downstream processing operations in Indonesia, although the exemption criteria are still being finalised.
In summary, palm oil exporters can continue operating as usual for now, but they should prepare for a future where exports are routed through DSI, with the extent of operational control private exporters will retain after full implementation in January 2027 still unclear.
“Another concern is for companies that sell RSPO-certified oil and earn a premium…what will happen to that flow if they are no longer part of the supply chain? There are still many uncertainties that need to be carefully thought through,” he said, adding that so far, the government has asked companies to declare volumes and pricing.
The world’s largest palm oil producer by acreage exports between 600,000 and 700,000 tonnes of processed and crude palm oil annually from Indonesia, where about a third of its land bank is located. The Edge
Indonesia to scale back commodity export centralisation, tighten monitoring: Sources
The shift marks a retreat from an earlier plan that would have channelled overseas sales of commodities such as coal, palm oil and ferroalloys through a state-linked entity. PHOTO: AFP
JAKARTA – Indonesia is scaling back a controversial proposal to centralise the export of its strategic commodities, after buyers and exporters raised concerns, The Straits Times has learnt.
Instead, the authorities will impose tighter monitoring on exports of key commodities to prevent exporters from understating shipment values and evading taxes, two government officials told ST.
The shift marks a retreat from an earlier plan that would have channelled overseas sales of commodities such as coal, palm oil and ferroalloys through a state-linked entity, a proposal that sparked concerns over market disruption and tighter export control.
But Indonesia is not going ahead with such restructuring, said the officials, who spoke to ST on condition of anonymity.
One official said Indonesia will instead impose tighter monitoring on exports to prevent under-invoicing – an illicit trade practice in which exporters deliberately understate the value of shipments on official trade documents to evade taxes, reduce royalties and shift profits offshore. Some analysts who spoke to ST said this amounts to a U-turn by the government.
“We will establish a transparent pricing methodology. If an export price is deemed too low, we will require exporters to revise it,” the official told ST. The system is intended to ensure export prices align with prevailing market rates, preventing goods from being sold below market value.
On May 20, President Subianto Prabowo had unveiled plans to centralise all strategic commodity exports under a new state-controlled entity. The entity, called Danantara Sumberdaya Indonesia (DSI), would fall under the broader Danantara sovereign wealth fund structure.
As reported earlier in May, under draft regulations seen by ST then, foreign buyers would no longer deal directly with Indonesian exporters, but instead via the new body, which would oversee contracts, shipping and payments. The transition period was to have begun on June 1, before stricter rules kick in from Sept 1.
By pivoting to an oversight role, Jakarta avoids becoming a single export trader, a structure that some investors and market participants had viewed as close to a state monopoly and potentially disruptive to existing market arrangements.
Still, the government says it remains focused on reducing economic leakages. The tighter monitoring framework aims to recover billions in lost revenue while preserving business certainty and a competitive investment climate.
“We will be tightly monitoring (the situation). But DSI is not going to be a single export trader. It is more of a solo, middle-man entity, whose main job is to ensure fair pricing,” the second government official told ST. The official said this objective would be achieved if Indonesia curbs under-invoicing.
He also dismissed concerns, widely reported in local media, about possible rent-seeking – where profits are extracted without adding real economic value – stressing that the proposed DSI framework would ease exporters’ worries: “DSI would likely take only a very small profit margin – between 0.05 per cent and 0.1 per cent – on traded commodities in order to sustain its operations.”
“The commercial relationship between buyers or traders overseas with exporters may continue. They just need to report to us to make sure there is no under-invoicing,” he added.
The overseas sales of coal, palm oil and ferroalloys, according to government data, totalled US$66.13 billion (S$85 billion) in 2025, accounting for about a quarter of Indonesia’s total exports.
Doubts and stock plunge precede review
The Jakarta Composite Index plunged 3.54 per cent on May 21, following the announcement to centralise commodity exports, before recovering modestly in the next session.
The market’s initial reaction should be read as doubt rather than a rejection of economic nationalism, said Achmad Nur Hidayat, an economist and public policy expert at public university UPN Veteran Jakarta.
“The market does not just read intent. The market reads design,” he told ST. In other words, markets focus less on what governments say they want to do, and more on how the policy would actually work.
Achmad likened the policy shift to repairing a leaking roof: investors are not objecting to the repair itself, but are concerned about the process. Straits Times
--------
Golden Agri-Resources reports close to 100% traceability-to-plantation for Indonesian palm oil in 2025
Leading palm oil company Golden Agri-Resources (GAR) achieved 99.8% traceability-to-plantation (TTP) for Indonesian palm oil in 2025.
In its 2025 Sustainability Report, the company said it also achieved 100% traceability-to-the-mill (TTM) in all its non-palm products - coconut, soyabean, sugar, and sunflower.
In addition, GAR said it had deepened engagement within its palm oil supply base in 2025 by reaching 11,250 independent smallholders through its Sawit Terampil programme and supporting 1,095 participants to obtain Roundtable on Sustainable Palm Oil (RSPO) certification across more than 2,000ha.
Speaking about the company’s traceability progress, Anita Neville, GAR’s chief sustainability and communications officer, said: “This high level of traceability enables us to engage closely with suppliers … It also means we can retain smallholders in our supply chains and prepare ourselves for the EU Deforestation Regulation and EU Corporate Sustainability Due Diligence Directive.”
However, after more than a decade of progress, Neville said the company recognised it might not reach 100% TTP due to the structural realities of smallholder-based supply chains.
The company pointed out that a significant share of Indonesia’s palm production came from independent smallholders farming on informally held or uncertified land, which made traceability particularly difficult.
“What matters now is how effectively our traceability enables us to identify risk, prioritise intervention and support improvement. Our approach, therefore, prioritises engagement, supporting suppliers to improve practices while maintaining supply and alignment with No Deforestation, No Peat, and No Exploitation (NDPE) commitments,” she added.
GAR uses SmartTrace, a digital, blockchain-based traceability and due diligence platform to track the journey of its products, from plantation to end customer.
In February 2025, the company successfully conducted its first real-world trial of SmartTrace, with a 9,500-tonne shipment of palm oil products to Verborg Group in the Netherlands.
SmartTrace ensured the shipment was 100% traceable to GAR’s plantations in Indonesia and marked the first application in its ongoing test of this landmark compliance system.
Looking ahead Neville said that the company’s sustainability commitments would continue to evolve.
“The next phase of our journey will require greater integration, closer partnerships, and strong execution,” she said.
Listed on the Singapore Exchange since 1999, GAR manages about 531,355ha of oil palm plantations - including smallholder farms - across Indonesia.
In 2025, the company produced 2.2M tonnes of crude palm oil (CPO) and 582,000 tonnes of palm kernel.
The company generated revenue of nearly US$13bn in 2025 from a sales volume of 12.3M tonnes and made a net profit of US$400M.
GAR’s downstream refining and speciality product facilities manufacture a range of products for the global agronomy, food, oleochemical and bioenergy markets.
The company also has complementary businesses such as soyabean-based products in China, sunflower-based products in India, and sugar businesses.
In addition, GAR has shipping management, seaports, jetties, warehouses and bulking facilities in strategic locations. OFI Magazine
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SD Guthrie CEO flags traceability concerns from Indonesia’s export control plan
KUALA LUMPUR (June 11): Indonesia’s move to bring palm oil exports under the control of a state company has raised concerns over the traceability of Roundtable on Sustainable Palm Oil (RSPO)-certified shipments, according to SD Guthrie Bhd (KL:SDG).
“What we understand is that the government intends to monitor exports, and may subsequently channel them through a single body. But can a single entity manage millions of export transactions involving hundreds of thousands of buyers? Is that even feasible? Some buyers want to know where the palm oil is coming from. They want assurance that certified oil is sourced from specific estates, which requires full traceability,” its president and group chief executive officer Mohd Haris Mohd Arshad told reporters after the group’s annual general meeting on Thursday.
He added that buyers in key markets such as the European Union and the US require full traceability, often demanding that palm oil be sourced from specific estates.
Indonesia has introduced new rules to increase government control over palm oil exports. From June 1, 2026, palm oil producers must submit export sales data to the state-owned company Danantara Sumberdaya Indonesia (DSI), which is part of Danantara Indonesia.
The policy is currently in a transition phase. Exporters can still manage their own sales and shipments for now, but DSI is expected to gradually take over export-related functions, potentially from September 2026, with full implementation targeted by Jan 1, 2027.
Under the new system, DSI will act as the sole exporter or mandatory intermediary for palm oil exports and will have authority over export pricing and margins. Existing export contracts can continue during the transition period.
Some companies may be exempted from the full requirements if they have significant investments, refining facilities or downstream processing operations in Indonesia, although the exemption criteria are still being finalised.
In summary, palm oil exporters can continue operating as usual for now, but they should prepare for a future where exports are routed through DSI, with the extent of operational control private exporters will retain after full implementation in January 2027 still unclear.
“Another concern is for companies that sell RSPO-certified oil and earn a premium…what will happen to that flow if they are no longer part of the supply chain? There are still many uncertainties that need to be carefully thought through,” he said, adding that so far, the government has asked companies to declare volumes and pricing.
The world’s largest palm oil producer by acreage exports between 600,000 and 700,000 tonnes of processed and crude palm oil annually from Indonesia, where about a third of its land bank is located. The Edge
June 10, 2026
Indonesia's trade ministry faces barrage of questions from businesses over new export control plan
By Bernadette Christina/ Reuters
Summary
JAKARTA, June 9 (Reuters) - Indonesian trade ministry officials faced a barrage of questions on Tuesday from exporters of palm oil, coal and ferroalloys worried about the impact of a controversial new export control plan designed to extract more profit from the country's natural resources.
In an online forum held by the government, businesses expressed concern about how the new rules will be implemented, even after the publication of detailed rules earlier this week.
President Prabowo Subianto surprised the business world last month when he revealed a new plan to channel all key commodity exports through a state firm by the start of next year, aiming to boost government revenue by imposing stricter controls over the sale and pricing of Indonesia's abundant natural resources.
The government published 11 pages of regulations earlier this month outlining the implementation schedule for the new controls.
This week, the trade ministry also released more detailed guidelines for three of the strategic commodities subject to the new rules, which took effect on June 1.
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Indonesia introduces new palm oil export rules ahead of 2027 shift
Jakarta (ANTARA) - The Trade Ministry’s new palm oil regulation (Permendag 16/2026) prioritizes strengthening state-owned exporting companies while introducing a transitional framework for businesses to adapt ahead of full implementation.
The regulation, which replaces Ministerial Regulation (Permendag No. 26/2024), introduces a phased transition timeline designed to give private business actors time to adapt before full enforcement takes effect at the start of 2027, according to the ministry’s Acting Director of Agricultural and Forestry Product Exports, Bayu Wicaksono Putro.
Speaking at a virtual briefing in Jakarta on Tuesday, Bayu Wicaksono clarified that while the types of regulated commodities remain unchanged, the distribution channel is being tightly reined in.
"In terms of the structure of the articles, there are not many changes. However, there are adjustments in several articles, particularly those that include definitions, exports of exporting state-owned enterprises, and also regulations for the transition period," he explained.
The strategic natural resource commodities covered by the updated policy still encompass five main palm oil derivative products, including crude palm oil (CPO), refined bleached deodorized palm oil (RBDPO), refined bleached deodorized palm olein (RBDPL), used cooking oil (UCO) and palm residue.
Beginning January 1, 2027, all outbound shipments of palm oil derivatives can only be executed by designated exporting SOEs that hold a valid Export Permit (PE).
Under the new regulation, these state enterprises will secure export rights through either fulfilling the domestic market obligation (DMO) or the formal transfer of export rights from private business actors to the SOE.
To ensure minimal market disruption, the government has instituted a structured transition period spanning from June 1 to December 31, 2026, granting commercial actors ample time to adapt to the centralized mechanism.
During this phase, private exporters holding valid PE permits can continue standard shipping operations, subject to an added obligation to report all outbound data electronically to the designated exporting SOEs.
Bayu noted that all export permits cleared during this adjustment period will remain legally binding until December 31, 2026, at the latest.
Throughout the transition window, active companies will continue to operate as registered exporters and remain fully liable for completing all statutory trade obligations. This includes lodging export notifications (PEB), reporting export proceeds (DHE), satisfying prohibitions and restrictions (LARTAS) and settling all outstanding export duties.
However, their systems must now integrate electronically with both the designated SOEs and the Directorate General of Customs and Excise at the Ministry of Finance.
To ensure the new mechanism does not bottle up Indonesia's massive palm oil trade, the government will launch an official evaluation of the policy within the next three months, led by the Coordinating Ministry for Economic Affairs. Antara News
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Indonesian authorities query Maybank staff over Salim exports
By Harry Suhartono & Megawati Wijaya / Bloomberg
(June 10): Indonesian authorities questioned bankers at the local unit of Malayan Banking Bhd (KL:MAYBANK) as part of their investigation into suspected export flows involving the Salim Group that may have understated the actual amount, according to people familiar with the matter.
The queries focused on transactions related to the export activities of PT Salim Ivomas Pratama, one of Indonesia’s biggest palm oil producers, the people said, asking not to be identified because the probe into the firm is not public. Bankers from Maybank Indonesia carried boxes of documents to the Attorney General's office last week to face questions as witnesses, they said.
Authorities are scrutinising if some goods are invoiced below their market price in an attempt to conceal profits and reduce taxes. They said last month they are investigating 10 major palm oil producers in the country for alleged manipulation of crude palm oil export prices, though it is unclear if Salim Ivomas Pratama is among the firms being probed by the government.
These developments are also happening as market participants express unease over a series of policy initiatives that expand the state’s role in directing investment and managing strategic sectors of the economy.
In the questioning of staff at Malaysia’s biggest bank, it is not clear if any wrongdoing has been established. Neither the company nor the bank has been accused of misconduct.
Maybank Indonesia “remains committed to maintaining the highest standards of governance and compliance, and cooperates with the relevant authorities in accordance with applicable laws and regulations”, a spokesperson said in response to queries from Bloomberg. The spokesperson added the bank is unable to comment on customer relationships, or any matters that may be subject to regulatory and legal, as a matter of policy.
A spokesperson for the Attorney General’s office declined to comment. Salim Ivomas Pratama didn’t respond to requests for comment.
Maybank Indonesia’s exposure to Salim Ivomas Pratama is relatively modest at around 150 billion rupiah (US$8.3 million or RM34 million), according to the firm’s latest financial statement. However, the lender has for years been a key banking partner to the broader Salim Group. It is unclear whether other banks linked to the group have been questioned.
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Malaysian biomass producer targets Japan market with wood pellet supply partnership
Malaysian biomass producer Weng Yat Resources Sdn Bhd and Japan-focused trading company Daya Synergy Borneo Co Ltd (DSB) have signed a memorandum of understanding to develop a biomass supply platform for the Japanese market, with an initial trial shipment of 10,000 metric tonnes of wood pellets planned for 2026.
The MoU was signed at the Malaysian Petroleum Club in Kuala Lumpur and is intended to strengthen biomass fuel supply chains supporting Japan's renewable energy and decarbonisation policies. If the initial shipment proceeds successfully, both parties plan to scale up to a recurring monthly supply arrangement.
Japan's biomass power generation sector is heavily import-dependent, with annual demand estimated at around nine million tonnes of wood pellets and seven million tonnes of palm kernel shells (PKS). Empty fruit bunch (EFB) pellets are identified as a growing segment driven by feedstock availability and cost.
Under the agreement, DSB will coordinate market access for Weng Yat Resources, drawing on existing relationships with Japanese biomass trading companies and power producers developed through its PKS export activities from Sabah.
Weng Yat Resources operates biomass production facilities across Malaysia and holds long-term supply agreements with 24 palm oil mills targeting around one million metric tonnes of EFB annually.
Its Tronoh, Perak plant currently produces approximately 6,000 metric tonnes of wood pellets per month. Expansion plans include a new EFB pellet line with 5,000 metric tonnes monthly capacity and a facility in Kapar, Klang, both expected to be operational by 2027. Bioenergy News
Indonesia's trade ministry faces barrage of questions from businesses over new export control plan
By Bernadette Christina/ Reuters
Summary
- Exporters voice concerns over unclear rules, contract integrity, and payment mechanisms
- Trade ministry defers key questions to state firm DSI, which is still ramping up operations
- Danantara to review export contract prices to prevent underpricing, citing past losses
JAKARTA, June 9 (Reuters) - Indonesian trade ministry officials faced a barrage of questions on Tuesday from exporters of palm oil, coal and ferroalloys worried about the impact of a controversial new export control plan designed to extract more profit from the country's natural resources.
In an online forum held by the government, businesses expressed concern about how the new rules will be implemented, even after the publication of detailed rules earlier this week.
President Prabowo Subianto surprised the business world last month when he revealed a new plan to channel all key commodity exports through a state firm by the start of next year, aiming to boost government revenue by imposing stricter controls over the sale and pricing of Indonesia's abundant natural resources.
The government published 11 pages of regulations earlier this month outlining the implementation schedule for the new controls.
This week, the trade ministry also released more detailed guidelines for three of the strategic commodities subject to the new rules, which took effect on June 1.
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Indonesia introduces new palm oil export rules ahead of 2027 shift
Jakarta (ANTARA) - The Trade Ministry’s new palm oil regulation (Permendag 16/2026) prioritizes strengthening state-owned exporting companies while introducing a transitional framework for businesses to adapt ahead of full implementation.
The regulation, which replaces Ministerial Regulation (Permendag No. 26/2024), introduces a phased transition timeline designed to give private business actors time to adapt before full enforcement takes effect at the start of 2027, according to the ministry’s Acting Director of Agricultural and Forestry Product Exports, Bayu Wicaksono Putro.
Speaking at a virtual briefing in Jakarta on Tuesday, Bayu Wicaksono clarified that while the types of regulated commodities remain unchanged, the distribution channel is being tightly reined in.
"In terms of the structure of the articles, there are not many changes. However, there are adjustments in several articles, particularly those that include definitions, exports of exporting state-owned enterprises, and also regulations for the transition period," he explained.
The strategic natural resource commodities covered by the updated policy still encompass five main palm oil derivative products, including crude palm oil (CPO), refined bleached deodorized palm oil (RBDPO), refined bleached deodorized palm olein (RBDPL), used cooking oil (UCO) and palm residue.
Beginning January 1, 2027, all outbound shipments of palm oil derivatives can only be executed by designated exporting SOEs that hold a valid Export Permit (PE).
Under the new regulation, these state enterprises will secure export rights through either fulfilling the domestic market obligation (DMO) or the formal transfer of export rights from private business actors to the SOE.
To ensure minimal market disruption, the government has instituted a structured transition period spanning from June 1 to December 31, 2026, granting commercial actors ample time to adapt to the centralized mechanism.
During this phase, private exporters holding valid PE permits can continue standard shipping operations, subject to an added obligation to report all outbound data electronically to the designated exporting SOEs.
Bayu noted that all export permits cleared during this adjustment period will remain legally binding until December 31, 2026, at the latest.
Throughout the transition window, active companies will continue to operate as registered exporters and remain fully liable for completing all statutory trade obligations. This includes lodging export notifications (PEB), reporting export proceeds (DHE), satisfying prohibitions and restrictions (LARTAS) and settling all outstanding export duties.
However, their systems must now integrate electronically with both the designated SOEs and the Directorate General of Customs and Excise at the Ministry of Finance.
To ensure the new mechanism does not bottle up Indonesia's massive palm oil trade, the government will launch an official evaluation of the policy within the next three months, led by the Coordinating Ministry for Economic Affairs. Antara News
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Indonesian authorities query Maybank staff over Salim exports
By Harry Suhartono & Megawati Wijaya / Bloomberg
(June 10): Indonesian authorities questioned bankers at the local unit of Malayan Banking Bhd (KL:MAYBANK) as part of their investigation into suspected export flows involving the Salim Group that may have understated the actual amount, according to people familiar with the matter.
The queries focused on transactions related to the export activities of PT Salim Ivomas Pratama, one of Indonesia’s biggest palm oil producers, the people said, asking not to be identified because the probe into the firm is not public. Bankers from Maybank Indonesia carried boxes of documents to the Attorney General's office last week to face questions as witnesses, they said.
Authorities are scrutinising if some goods are invoiced below their market price in an attempt to conceal profits and reduce taxes. They said last month they are investigating 10 major palm oil producers in the country for alleged manipulation of crude palm oil export prices, though it is unclear if Salim Ivomas Pratama is among the firms being probed by the government.
These developments are also happening as market participants express unease over a series of policy initiatives that expand the state’s role in directing investment and managing strategic sectors of the economy.
In the questioning of staff at Malaysia’s biggest bank, it is not clear if any wrongdoing has been established. Neither the company nor the bank has been accused of misconduct.
Maybank Indonesia “remains committed to maintaining the highest standards of governance and compliance, and cooperates with the relevant authorities in accordance with applicable laws and regulations”, a spokesperson said in response to queries from Bloomberg. The spokesperson added the bank is unable to comment on customer relationships, or any matters that may be subject to regulatory and legal, as a matter of policy.
A spokesperson for the Attorney General’s office declined to comment. Salim Ivomas Pratama didn’t respond to requests for comment.
Maybank Indonesia’s exposure to Salim Ivomas Pratama is relatively modest at around 150 billion rupiah (US$8.3 million or RM34 million), according to the firm’s latest financial statement. However, the lender has for years been a key banking partner to the broader Salim Group. It is unclear whether other banks linked to the group have been questioned.
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Malaysian biomass producer targets Japan market with wood pellet supply partnership
Malaysian biomass producer Weng Yat Resources Sdn Bhd and Japan-focused trading company Daya Synergy Borneo Co Ltd (DSB) have signed a memorandum of understanding to develop a biomass supply platform for the Japanese market, with an initial trial shipment of 10,000 metric tonnes of wood pellets planned for 2026.
The MoU was signed at the Malaysian Petroleum Club in Kuala Lumpur and is intended to strengthen biomass fuel supply chains supporting Japan's renewable energy and decarbonisation policies. If the initial shipment proceeds successfully, both parties plan to scale up to a recurring monthly supply arrangement.
Japan's biomass power generation sector is heavily import-dependent, with annual demand estimated at around nine million tonnes of wood pellets and seven million tonnes of palm kernel shells (PKS). Empty fruit bunch (EFB) pellets are identified as a growing segment driven by feedstock availability and cost.
Under the agreement, DSB will coordinate market access for Weng Yat Resources, drawing on existing relationships with Japanese biomass trading companies and power producers developed through its PKS export activities from Sabah.
Weng Yat Resources operates biomass production facilities across Malaysia and holds long-term supply agreements with 24 palm oil mills targeting around one million metric tonnes of EFB annually.
Its Tronoh, Perak plant currently produces approximately 6,000 metric tonnes of wood pellets per month. Expansion plans include a new EFB pellet line with 5,000 metric tonnes monthly capacity and a facility in Kapar, Klang, both expected to be operational by 2027. Bioenergy News
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June 09, 2026
Palm Oil Market Turmoil in Indonesia Creates New Opportunities for Global Suppliers
Indonesia's investigation into hundreds of palm oil companies is reshaping market dynamics and could open new opportunities for competing exporters across Latin America and beyond.
Indonesia, the world's largest palm oil producer and exporter, has launched investigations into hundreds of palm oil companies accused of failing to pass higher prices on to farmers as the market recovered from a recent downturn. The move, announced by Agriculture Minister Amran Sulaiman on June 8, adds new uncertainty to the global vegetable oils market and is drawing attention from traders, food manufacturers, and competing producers worldwide. The development matters because Indonesia accounts for roughly 60% of global palm oil production, meaning policy changes in Jakarta can quickly influence international prices, trade flows, and sourcing decisions.
According to Indonesian authorities, information on approximately 270 to 300 palm oil companies has been submitted to law enforcement agencies for investigation. Officials say the companies may have failed to adequately adjust payments to growers after palm oil prices recovered from a sharp decline triggered by Indonesia's new export policy.
While most of the country's approximately 1,900 palm oil companies have reportedly increased prices paid to farmers, the government is signaling that it intends to closely monitor compliance throughout the supply chain.
While most of the country's approximately 1,900 palm oil companies have reportedly increased prices paid to farmers, the government is signaling that it intends to closely monitor compliance throughout the supply chain. Agro Latam
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Indonesia asks police to probe hundreds of firms on palm oil prices
(June 8): Indonesia’s agriculture minister has asked police to investigate hundreds of palm oil companies that failed to pay farmers more as prices recovered from a slump driven by the country’s new export policy.
The ministry has received reports on 270 to 300 firms that have not adjusted their prices over the past few days and has submitted the information to police, including special crime units, Minister Amran Sulaiman said after meeting with local government officials, the palm oil industry association and farmers groups on Monday.
Sulaiman said he’d asked the police to carry out proper investigations before taking any enforcement action. Most of Indonesia’s around 1,900 palm oil companies have increased the prices paid to farmers, he said.
The move is another instance of the government intervening in the palm oil market after it announced late last month it would take control of some key commodity exports in a sweeping overhaul. Indonesian palm oil prices fell after the policy was announced on fears shipments would slow down and stockpiles would swell, but have since recouped most of the losses.
All parties at the meeting agreed there should be no further decline in Indonesian palm oil prices, Sulaiman said. “There are around 15 million farmers, and we cannot allow them to suffer losses,” he said, adding that the weakening rupiah should be beneficial for exports and farmers.
Prices of fresh fruit bunches were about 3,800 rupiah (US$0.21 or $0.27) a kilogram before the policy was announced on May 20, according to a farmers group. They subsequently fell as low as 1,500 rupiah, before recovering to 3,400 rupiah on Friday. The Edge
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Food task force suspects cartel behind plunge in palm FFB prices
JAKARTA – Indonesia’s National Police Food Task Force suspects cartel activity may be behind the sharp decline in Fresh Fruit Bunch (FFB) prices received by palm oil farmers, despite rising global crude palm oil (CPO) prices.
The head of the task force, Brigadier General Ade Safri Simanjuntak, made the remarks following a meeting with Agriculture Minister Andi Amran Sulaiman, palm oil industry associations, farmer representatives and police officials on Monday (8/6).
According to Ade, the recent decline in FFB prices appears to be an anomaly for the palm oil plantation sector.
“We suspect there are indications of a cartel or unlawful collusion here — a covert agreement aimed at pushing down FFB prices even as global CPO prices have not declined,” Ade said at a press conference.
To follow up on the allegations, Ade said the Food Task Force would work with Indonesia Competition Commission (KPPU), both at the national and regional levels.
The investigation will also involve the Special Criminal Investigation Directorates at regional police departments, which serve as local Food Task Force units.
In addition, the task force is examining trading practices that may have harmed the state, including under-invoicing and under-pricing.
As a result, Ade said law enforcement authorities would not hesitate to take firm action if violations are found.
In an earlier report, Agriculture Minister Amran Sulaiman said the government had identified as many as 300 companies purchasing palm oil FFB at unusually low prices.
Following the findings, Amran said he plans to report all of those companies to law enforcement authorities. (KR/ZH) IDN Financials
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Indonesia cracks down on companies suppressing palm prices
Jakarta (ANTARA) - President Prabowo Subianto has reportedly instructed a 10 percent increase in the price of fresh fruit bunches (FFB) from oil palm, in line with rising global crude palm oil (CPO) prices.
“The president is defending 15 million farmers, saying FFB prices must return to their original levels, and even increase by 10 percent,” Agriculture Minister Andi Amran Sulaiman said here on Monday.
According to him, the directive underscores the importance of protecting the welfare of around 15 million oil palm farmers by restoring FFB prices and encouraging further increases.
He said the adjustment is reasonable, supported by the upward trend in global CPO prices and the strengthening US dollar against the rupiah.
Sulaiman noted that around 70 percent of FFB prices across regions have gradually recovered, and that the government, together with the Food Task Force and police, will ensure full price normalization.
He added that the recent decline in farmgate FFB prices is considered an anomaly, as the commodity should have increased by about 10 percent in line with global market conditions.
The minister said that although global CPO prices have risen by 47 percent and the US dollar has strengthened by more than 10 percent against the rupiah, FFB prices at the farm level have instead fallen by around 17 percent.
“We have the data. Global CPO prices have risen 47 percent, the dollar has strengthened by more than 10 percent, but FFB prices have actually fallen,” he said.
He urged palm oil companies that have not yet adjusted FFB prices to promptly comply. The government, along with the National Police’s Food Task Force, will investigate around 270–300 companies that have failed to align FFB prices with regional regulations despite rising global CPO prices and exchange rate movements.
Sulaiman stressed that the government will not tolerate practices that harm oil palm farmers, noting that around 15 million Indonesians depend on the sector for their livelihoods.
“We must protect our farmers. There are 15 million oil palm farmers in Indonesia. If global prices rise and the exchange rate strengthens, but farmgate prices fall, that does not make sense,” he said. Antara News
Palm Oil Market Turmoil in Indonesia Creates New Opportunities for Global Suppliers
Indonesia's investigation into hundreds of palm oil companies is reshaping market dynamics and could open new opportunities for competing exporters across Latin America and beyond.
Indonesia, the world's largest palm oil producer and exporter, has launched investigations into hundreds of palm oil companies accused of failing to pass higher prices on to farmers as the market recovered from a recent downturn. The move, announced by Agriculture Minister Amran Sulaiman on June 8, adds new uncertainty to the global vegetable oils market and is drawing attention from traders, food manufacturers, and competing producers worldwide. The development matters because Indonesia accounts for roughly 60% of global palm oil production, meaning policy changes in Jakarta can quickly influence international prices, trade flows, and sourcing decisions.
According to Indonesian authorities, information on approximately 270 to 300 palm oil companies has been submitted to law enforcement agencies for investigation. Officials say the companies may have failed to adequately adjust payments to growers after palm oil prices recovered from a sharp decline triggered by Indonesia's new export policy.
While most of the country's approximately 1,900 palm oil companies have reportedly increased prices paid to farmers, the government is signaling that it intends to closely monitor compliance throughout the supply chain.
While most of the country's approximately 1,900 palm oil companies have reportedly increased prices paid to farmers, the government is signaling that it intends to closely monitor compliance throughout the supply chain. Agro Latam
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Indonesia asks police to probe hundreds of firms on palm oil prices
(June 8): Indonesia’s agriculture minister has asked police to investigate hundreds of palm oil companies that failed to pay farmers more as prices recovered from a slump driven by the country’s new export policy.
The ministry has received reports on 270 to 300 firms that have not adjusted their prices over the past few days and has submitted the information to police, including special crime units, Minister Amran Sulaiman said after meeting with local government officials, the palm oil industry association and farmers groups on Monday.
Sulaiman said he’d asked the police to carry out proper investigations before taking any enforcement action. Most of Indonesia’s around 1,900 palm oil companies have increased the prices paid to farmers, he said.
The move is another instance of the government intervening in the palm oil market after it announced late last month it would take control of some key commodity exports in a sweeping overhaul. Indonesian palm oil prices fell after the policy was announced on fears shipments would slow down and stockpiles would swell, but have since recouped most of the losses.
All parties at the meeting agreed there should be no further decline in Indonesian palm oil prices, Sulaiman said. “There are around 15 million farmers, and we cannot allow them to suffer losses,” he said, adding that the weakening rupiah should be beneficial for exports and farmers.
Prices of fresh fruit bunches were about 3,800 rupiah (US$0.21 or $0.27) a kilogram before the policy was announced on May 20, according to a farmers group. They subsequently fell as low as 1,500 rupiah, before recovering to 3,400 rupiah on Friday. The Edge
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Food task force suspects cartel behind plunge in palm FFB prices
JAKARTA – Indonesia’s National Police Food Task Force suspects cartel activity may be behind the sharp decline in Fresh Fruit Bunch (FFB) prices received by palm oil farmers, despite rising global crude palm oil (CPO) prices.
The head of the task force, Brigadier General Ade Safri Simanjuntak, made the remarks following a meeting with Agriculture Minister Andi Amran Sulaiman, palm oil industry associations, farmer representatives and police officials on Monday (8/6).
According to Ade, the recent decline in FFB prices appears to be an anomaly for the palm oil plantation sector.
“We suspect there are indications of a cartel or unlawful collusion here — a covert agreement aimed at pushing down FFB prices even as global CPO prices have not declined,” Ade said at a press conference.
To follow up on the allegations, Ade said the Food Task Force would work with Indonesia Competition Commission (KPPU), both at the national and regional levels.
The investigation will also involve the Special Criminal Investigation Directorates at regional police departments, which serve as local Food Task Force units.
In addition, the task force is examining trading practices that may have harmed the state, including under-invoicing and under-pricing.
As a result, Ade said law enforcement authorities would not hesitate to take firm action if violations are found.
In an earlier report, Agriculture Minister Amran Sulaiman said the government had identified as many as 300 companies purchasing palm oil FFB at unusually low prices.
Following the findings, Amran said he plans to report all of those companies to law enforcement authorities. (KR/ZH) IDN Financials
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Indonesia cracks down on companies suppressing palm prices
Jakarta (ANTARA) - President Prabowo Subianto has reportedly instructed a 10 percent increase in the price of fresh fruit bunches (FFB) from oil palm, in line with rising global crude palm oil (CPO) prices.
“The president is defending 15 million farmers, saying FFB prices must return to their original levels, and even increase by 10 percent,” Agriculture Minister Andi Amran Sulaiman said here on Monday.
According to him, the directive underscores the importance of protecting the welfare of around 15 million oil palm farmers by restoring FFB prices and encouraging further increases.
He said the adjustment is reasonable, supported by the upward trend in global CPO prices and the strengthening US dollar against the rupiah.
Sulaiman noted that around 70 percent of FFB prices across regions have gradually recovered, and that the government, together with the Food Task Force and police, will ensure full price normalization.
He added that the recent decline in farmgate FFB prices is considered an anomaly, as the commodity should have increased by about 10 percent in line with global market conditions.
The minister said that although global CPO prices have risen by 47 percent and the US dollar has strengthened by more than 10 percent against the rupiah, FFB prices at the farm level have instead fallen by around 17 percent.
“We have the data. Global CPO prices have risen 47 percent, the dollar has strengthened by more than 10 percent, but FFB prices have actually fallen,” he said.
He urged palm oil companies that have not yet adjusted FFB prices to promptly comply. The government, along with the National Police’s Food Task Force, will investigate around 270–300 companies that have failed to align FFB prices with regional regulations despite rising global CPO prices and exchange rate movements.
Sulaiman stressed that the government will not tolerate practices that harm oil palm farmers, noting that around 15 million Indonesians depend on the sector for their livelihoods.
“We must protect our farmers. There are 15 million oil palm farmers in Indonesia. If global prices rise and the exchange rate strengthens, but farmgate prices fall, that does not make sense,” he said. Antara News
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June 08, 2026
Indonesia issues technical regulations to centralise coal, palm oil, ferroalloy exports
By Reuters
JAKARTA, June 8 (Reuters) - Indonesia's Trade Ministry published technical regulations on Monday to bring coal, palm oil, and ferroalloy exports under the control of a central government-owned firm.
All three technical regulations have been in effect since June 1, with exporters of those commodities now obliged to report their export activities to a state firm appointed by the government.
The state secretariat ministry last week issued broader regulations to enable all commodity exports to be channeled through a central government agency.
Here are some key details about the regulation as it relates to palm oil:
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Palm Oil Players Highlight Transparency in Natural Resource Export Management
The substance of PP 24/2026 is considered inconsistent with the President's speech, which aims to prevent under-invoicing and increase state foreign exchange earnings.
JAKARTA, KOMPAS — The implementation of governance for the export of strategic natural resource commodities through PT Danantara Sumberdaya Indonesia (DSI) still leaves several questions unanswered. The pricing mechanism and oversight, which have not been fully explained, make palm oil industry players concerned that additional costs in this new system may ultimately erode export competitiveness and suppress the prices received by palm oil farmers.
The Indonesian Palm Oil Farmers Organization (POPSI) criticized Government Regulation (PP) Number 24 of 2026 concerning the Management of Export of Strategic Natural Resource Commodities.
The General Chairman of the Indonesian Palm Oil Farmers Organization Association (POPSI), Mansuetus Darto, said that the substance of Government Regulation Number 24 of 2026, is actually not in accordance with the President's speech on May 20, 2026, to prevent under-invoicing and increase state foreign exchange earnings. Kompas
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Indonesia asks police to probe hundreds of firms on palm oil prices
(June 8): Indonesia’s agriculture minister has asked police to investigate hundreds of palm oil companies that failed to pay farmers more as prices recovered from a slump driven by the country’s new export policy.
The ministry has received reports on 270 to 300 firms that have not adjusted their prices over the past few days and has submitted the information to police, including special crime units, Minister Amran Sulaiman said after meeting with local government officials, the palm oil industry association and farmers groups on Monday.
Sulaiman said he’d asked the police to carry out proper investigations before taking any enforcement action. Most of Indonesia’s around 1,900 palm oil companies have increased the prices paid to farmers, he said.
The move is another instance of the government intervening in the palm oil market after it announced late last month it would take control of some key commodity exports in a sweeping overhaul. Indonesian palm oil prices fell after the policy was announced on fears shipments would slow down and stockpiles would swell, but have since recouped most of the losses.
All parties at the meeting agreed there should be no further decline in Indonesian palm oil prices, Sulaiman said. “There are around 15 million farmers, and we cannot allow them to suffer losses,” he said, adding that the weakening rupiah should be beneficial for exports and farmers.
Prices of fresh fruit bunches were about 3,800 rupiah (US$0.21 or RM0.85) a kilogram before the policy was announced on May 20, according to a farmers group. They subsequently fell as low as 1,500 rupiah, before recovering to 3,400 rupiah on Friday.
Benchmark palm oil futures in Kuala Lumpur also dropped after the export policy was announced on the prospect of Indonesian producers rushing to sell before the new system fully takes effect. They’ve since recovered from those losses, and climbed as much as 1% to RM4,599 a tonne on Monday after a two-day drop.
Methods for deciding how prices paid to farmers and export prices will be set under the new policy have so far not been explained, said Mansuetus Darto, chairman of the Association of Indonesian Oil Palm Farmers’ Organizations, which represents smaller growers. Farmers are also facing rising fuel costs that could erode their income, he said. The Edge
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Indonesia's Agriculture Ministry probes 300 palm oil firms over FFB prices
Minister of Agriculture Andi Amran Sulaiman announced that around 300 palm oil companies will be investigated for failing to increase fresh fruit bunches (FFB) prices despite market conditions that should have supported higher prices.
"There are approximately 300 companies out of a total of 1,900 operating in the palm oil sector. We will investigate these 300 companies and determine why they have not increased their prices as expected," he said in a press statement on Monday.
The ministry has reported the companies to the National Police Food Task Force as part of efforts to monitor palm oil firms that have not adjusted their FFB purchasing prices at the farmer level.
"This will be investigated immediately. There will be no immediate sanctions because the matter must first go through an inspection process. We will send the letter today, and the investigation will begin," the minister said
Sulaiman noted that the inspection process is necessary to identify the reasons behind the companies' failure to adjust prices.
The government emphasized that the measure is intended to ensure that farmers receive fair prices in line with prevailing market conditions.
Authorities also expressed hope that all companies would promptly comply with the collective agreement to restore FFB prices in order to safeguard the welfare of oil palm farmers.
The minister said that FFB prices vary across regions.
"If the price is Rp3,200 (US$0.17) per kilogram, it should remain at that level, depending on the region. It must comply with the Governor's Regulation," he said.
On Monday, Sulaiman chaired a coordination meeting on efforts to develop and stabilize palm oil FFB prices at the Ministry of Agriculture.
The meeting was attended by representatives of palm oil associations, farmer groups, exporters, the National Police Food Task Force, and other relevant stakeholders. Antara News
Indonesia issues technical regulations to centralise coal, palm oil, ferroalloy exports
By Reuters
JAKARTA, June 8 (Reuters) - Indonesia's Trade Ministry published technical regulations on Monday to bring coal, palm oil, and ferroalloy exports under the control of a central government-owned firm.
All three technical regulations have been in effect since June 1, with exporters of those commodities now obliged to report their export activities to a state firm appointed by the government.
The state secretariat ministry last week issued broader regulations to enable all commodity exports to be channeled through a central government agency.
Here are some key details about the regulation as it relates to palm oil:
- The affected products include crude palm oil, refined, bleached, deodorized palm oil (RBDPO), refined, bleached, and deodorized palm olein (RBDPL), and palm oil residues, the regulation said.
- Palm oil export permits are granted based on compliance with the domestic market obligation whereby exporters must provide supplies for the government's cheap cooking oil programme.
- Export rights can be transferred to the state firm appointed by the government or to other companies by filling in all the details required on the website of Indonesia National Single Window.
- Exports are subject to export duties as regulated by relevant ministries.
- When there is a change in export approval, the state firm appointed will be responsible for the accuracy and compliance of required documents submitted by related companies.
- State firms or exporters that already have permits to export must submit realisation reports every month to the trade ministry, and they must include data about the type of product, quantity, export value, destination country, and tariff posts.
- If realisation reports are not submitted, the firms will be given a warning. If the reports are still not submitted within 30 days of the warning, their export permits may be frozen until they comply.
- The transition period is until December 31, 2026, during which companies can still carry out exports. After December 31, only the state firm appointed by the government will be allowed to export.
- Existing export permits issued prior to this regulation are still valid until they expire.
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Palm Oil Players Highlight Transparency in Natural Resource Export Management
The substance of PP 24/2026 is considered inconsistent with the President's speech, which aims to prevent under-invoicing and increase state foreign exchange earnings.
JAKARTA, KOMPAS — The implementation of governance for the export of strategic natural resource commodities through PT Danantara Sumberdaya Indonesia (DSI) still leaves several questions unanswered. The pricing mechanism and oversight, which have not been fully explained, make palm oil industry players concerned that additional costs in this new system may ultimately erode export competitiveness and suppress the prices received by palm oil farmers.
The Indonesian Palm Oil Farmers Organization (POPSI) criticized Government Regulation (PP) Number 24 of 2026 concerning the Management of Export of Strategic Natural Resource Commodities.
The General Chairman of the Indonesian Palm Oil Farmers Organization Association (POPSI), Mansuetus Darto, said that the substance of Government Regulation Number 24 of 2026, is actually not in accordance with the President's speech on May 20, 2026, to prevent under-invoicing and increase state foreign exchange earnings. Kompas
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Indonesia asks police to probe hundreds of firms on palm oil prices
(June 8): Indonesia’s agriculture minister has asked police to investigate hundreds of palm oil companies that failed to pay farmers more as prices recovered from a slump driven by the country’s new export policy.
The ministry has received reports on 270 to 300 firms that have not adjusted their prices over the past few days and has submitted the information to police, including special crime units, Minister Amran Sulaiman said after meeting with local government officials, the palm oil industry association and farmers groups on Monday.
Sulaiman said he’d asked the police to carry out proper investigations before taking any enforcement action. Most of Indonesia’s around 1,900 palm oil companies have increased the prices paid to farmers, he said.
The move is another instance of the government intervening in the palm oil market after it announced late last month it would take control of some key commodity exports in a sweeping overhaul. Indonesian palm oil prices fell after the policy was announced on fears shipments would slow down and stockpiles would swell, but have since recouped most of the losses.
All parties at the meeting agreed there should be no further decline in Indonesian palm oil prices, Sulaiman said. “There are around 15 million farmers, and we cannot allow them to suffer losses,” he said, adding that the weakening rupiah should be beneficial for exports and farmers.
Prices of fresh fruit bunches were about 3,800 rupiah (US$0.21 or RM0.85) a kilogram before the policy was announced on May 20, according to a farmers group. They subsequently fell as low as 1,500 rupiah, before recovering to 3,400 rupiah on Friday.
Benchmark palm oil futures in Kuala Lumpur also dropped after the export policy was announced on the prospect of Indonesian producers rushing to sell before the new system fully takes effect. They’ve since recovered from those losses, and climbed as much as 1% to RM4,599 a tonne on Monday after a two-day drop.
Methods for deciding how prices paid to farmers and export prices will be set under the new policy have so far not been explained, said Mansuetus Darto, chairman of the Association of Indonesian Oil Palm Farmers’ Organizations, which represents smaller growers. Farmers are also facing rising fuel costs that could erode their income, he said. The Edge
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Indonesia's Agriculture Ministry probes 300 palm oil firms over FFB prices
Minister of Agriculture Andi Amran Sulaiman announced that around 300 palm oil companies will be investigated for failing to increase fresh fruit bunches (FFB) prices despite market conditions that should have supported higher prices.
"There are approximately 300 companies out of a total of 1,900 operating in the palm oil sector. We will investigate these 300 companies and determine why they have not increased their prices as expected," he said in a press statement on Monday.
The ministry has reported the companies to the National Police Food Task Force as part of efforts to monitor palm oil firms that have not adjusted their FFB purchasing prices at the farmer level.
"This will be investigated immediately. There will be no immediate sanctions because the matter must first go through an inspection process. We will send the letter today, and the investigation will begin," the minister said
Sulaiman noted that the inspection process is necessary to identify the reasons behind the companies' failure to adjust prices.
The government emphasized that the measure is intended to ensure that farmers receive fair prices in line with prevailing market conditions.
Authorities also expressed hope that all companies would promptly comply with the collective agreement to restore FFB prices in order to safeguard the welfare of oil palm farmers.
The minister said that FFB prices vary across regions.
"If the price is Rp3,200 (US$0.17) per kilogram, it should remain at that level, depending on the region. It must comply with the Governor's Regulation," he said.
On Monday, Sulaiman chaired a coordination meeting on efforts to develop and stabilize palm oil FFB prices at the Ministry of Agriculture.
The meeting was attended by representatives of palm oil associations, farmer groups, exporters, the National Police Food Task Force, and other relevant stakeholders. Antara News
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June 07, 2026
Indonesia’s crisis of confidence as markets decode Prabowo
INDONESIA spent much of the week ended Jun 7 confronting a question that might have seemed unthinkable a few short years ago: what happens when investors stop believing in South-east Asia’s largest economy?
The answer played out across trading screens around the world and at government offices in Jakarta. Stocks sank to their lowest levels since the pandemic, the rupiah breached the psychologically important 18,000-per-dollar level for the first time and rumours swirled that Finance Minister Purbaya Yudhi Sadewa was on the way out.
By the end of the week, Purbaya and senior government officials were on the defensive. “I’m not the type to quit,” Purbaya said at a state budget briefing on Friday (Jun 5). He was at pains to talk up the country’s fiscal position, saying the nation’s assets remain stable and inflows healthy.
“Optimism about the Indonesian economy remains strong,” he said. “Why are people saying the economy is heading toward a recession when economic stimulus is sufficient, liquidity is sufficient, and credit growth is also sufficient? Don’t be swayed by a single news report.”
But the damage was largely done. Investors increasingly see Indonesia as a market where policy uncertainty, political intervention and execution risks are beginning to outweigh one of the developing world’s most compelling long-term growth stories – a sentiment that has been growing since President Prabowo Subianto took office less than two years ago.
Investors are “concerned about the direction of policymaking in Indonesia,” Jason Tuvey, deputy chief emerging markets economist of Capital Economics, said. “Especially so, after widespread protests in the middle of last year led to the sacking of respected finance minister Sri Mulyani Indrawati. Since then, the government has adopted increasingly populist and interventionist policies.”
Speculation over Purbaya’s departure was not the only thing sending markets into a tailspin. There were also mounting concerns over the government’s economic management, confusion regarding new commodity export rules and a widening corruption investigation involving Prabowo’s flagship US$15 billion free meals programme.
Rising oil prices driven by the conflict in the Middle East are also adding to pressure on Indonesia’s economy, forcing the government to spend more on fuel subsidies while facing higher import costs for crude oil and LPG. Like several of its South-east Asian neighbors, Indonesia imports a significant share of its crude from the region, making it particularly vulnerable to supply disruptions and price shocks.
“Indonesia isn’t alone in Asia in feeling considerable financial market pressure but in its case, the global energy shock has seemingly brought pre-existing concerns about the fiscal outlook and institutional dynamics more sharply into investors’ focus,” said Peter Mumford, who heads the South-east Asia practice of Eurasia Group. “While the government has been sending stronger signals about fiscal discipline recently with the aim of reassuring investors, new policies have created more uncertainty.”
Indonesia’s benchmark stock index has now fallen more than 35 per cent in 2026, making it the worst-performing major equity market tracked by Bloomberg. The rupiah has dropped roughly 14 per cent since Prabowo took office and is Asia’s weakest currency in 2026. Foreign investors have cut holdings of Indonesian sovereign bonds by about 86 trillion rupiah (S$6.7 billion) since August 2025.
The plunging currency is also making the repayment of US dollar-denominated debt a daunting prospect.
According to data compiled by Bloomberg, the government and companies in Indonesia have some US$12.6 billion of foreign currency bonds due in 2027 and US$11.3 billion to US$16.3 billion in each of the four years thereafter. The government has issued more than US$11 billion in foreign-currency notes so far in 2026, the data show. Business Times
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India Must Support Its Oilseed Farmers
From rain-fed fields to absent procurement centres, India's oilseed farmers lack the systems needed to meet the country's ambitious production targets and cut imports.
Mount Abu, Rajasthan: India meets only 44% of its domestic demand for edible oil and spends more than $20 billion a year on imports, a bill that is bound to increase with the war in West Asia disrupting global supply chains and India’s foreign currency reserves under strain.
Already, IndiaSpend’s Food Price Watch has recorded significant year-on-year price increases across different edible oils. Based on the prices of packed oil on May 30, 2026, groundnut oil was up 7% from 2025, mustard oil 12%, palm oil 9%, soya oil 9%, sunflower oil 15% and vanaspati 4%.
Two years ago, the government launched a mission to increase oilseeds production by nearly 80% by the end of this decade, but that assumes a jump in productivity that needs urgent support in the form of farmer outreach, seeds resistant to climatic changes and pests, and an overhaul of the procurement and value addition chains, experts say.
Under the National Mission on Edible Oils, the government has rolled out minimum support prices (MSP) for the procurement of oilseeds, and tariffs to discourage imports and encourage domestic production of edible oils. This includes rapeseed-mustard, groundnut, soybean, sunflower, sesamum, safflower, niger, linseed and palm. While the latter two aren’t covered by the MSP programme, fresh fruit bunches of palm are covered by a baseline price.
To cater to the growing demand for oilseeds, this programme now targets increasing the oilseed area coverage from 29 million hectares (ha) in 2022-23 to 33 million hectares by 2030-31, and the primary oilseed production from 39 million tonnes to 69.7 million tonnes in the same period.
Targeting a 79% increase in production from a 14% increase in acreage presumes a huge jump in productivity, which is up against “a combination of agro-climatic, technological and socio-economic factors, asides genetic limitations”, Ravi Mathur, director of the ICAR-Indian Institute of Oilseeds Research, told IndiaSpend.
“With farmers tending to allocate better land, irrigation, and inputs to cereals and cash crops, oilseeds are often cultivated in residual moisture conditions, on relatively poor soils and in less-favoured production regions,” he said.
In the last three decades, oilseeds acreage across India has increased by more than half, but north and south India saw a drop of 54% and 37%, respectively, offset by a tripling of area under oilseeds in central India and roughly doubling in both west and northeast India.
Low household consumption
India’s per capita consumption of edible oil is widely stated as 19.7 kg per year. However, this consumption spans domestic and industrial uses of oilseeds.
The 2022-23 Household Consumption Expenditure Survey shows that in rural India, the per capita consumption of edible oils is 10.58 kg per year, and in urban India, it is 11.78 kg per year. These figures also include non-food uses in homes such as for lighting diyas, Dattatraya Mahabaleshwar Hegde, former director of the ICAR-Indian Institute of Oilseeds Research, pointed out.
In 2025, Prime Minister Narendra Modi thrice asked his fellow citizens to cut down on their consumption of edible oil for health reasons, in January, February and August. He pointed to rising obesity to suggest that a 10% cut in edible oil consumption can “bring a big change in your health”.
Last month, the Prime Minister repeated his appeal, as part of a list of measures including asking citizens to help conserve foreign exchange reserves by cutting down on purchasing gold and spending on foreign travel, and a shift to public transport, in the face of oil shortages. The WireIN
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Japan turns to used cooking oil to boost sustainable aviation fuel production
Tokyo: Japan is intensifying efforts to collect used cooking oil from households and businesses as it seeks to expand domestic production of sustainable aviation fuel (SAF) and reduce reliance on imported energy sources.
The initiative comes as the country works toward its target of sourcing 10 percent of airline fuel from sustainable alternatives by 2030, a goal that has gained added urgency amid rising energy costs and supply concerns linked to geopolitical tensions in West Asia, The Japan Times reported.
A key part of the strategy is the nationwide “Fry to Fly” programme, a public-private partnership that encourages consumers to donate used cooking oil for conversion into aviation fuel. Around 300 collection points, including supermarkets, are currently participating in the initiative.
Japan views used cooking oil as an important feedstock for SAF because it is relatively affordable and can be sourced domestically. However, limited feedstock availability and insufficient production infrastructure continue to constrain output.
According to government estimates, Japan will require approximately 1.7 million kilolitres of sustainable aviation fuel by 2030 to meet its target. Current domestic SAF production stands at only about 30,000 kilolitres, accounting for just 0.3 percent of total jet fuel consumption.
The challenge underscores the broader difficulties facing the global aviation sector as it seeks to reduce greenhouse gas emissions. While SAF is considered one of the most promising pathways for decarbonising air transport, large-scale production remains limited and costs remain significantly higher than those of conventional aviation fuel.
Japan’s two largest airlines, All Nippon Airways and Japan Airlines, recently acknowledged that progress toward scaling up SAF production has been slower and more difficult than initially anticipated.
Industry experts warn that if domestic production falls short of demand, refiners and airlines may be forced to rely on more expensive imports of SAF or feedstocks, potentially increasing operating costs across the aviation sector.
The issue is not unique to Japan. Many countries pursuing SAF adoption continue to face challenges in securing adequate feedstock supplies and developing commercial-scale production facilities. Even in markets where blending mandates have already been introduced, imported feedstocks remain an important source of supply.
The Japanese government has identified the current year as a crucial period for the industry. Refiners are expected to make final investment decisions on SAF projects by March next year to ensure commercial-scale production capacity is available by 2030.
As the race to decarbonise aviation accelerates, Japan’s growing focus on converting used cooking oil into biofuel highlights both the opportunities and challenges associated with building a domestic sustainable aviation fuel industry. Bioenergy Times
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Palm oil myths fabricated to cripple an invaluable industry to Sri Lanka
The oil palm crop consumes huge volumes of water leading to water shortages and desertification negatively impacting the livelihood of mankind. Rich and fertile soils in our country turns into sand when this crop is grown. No other plant species will grow in these plantations and hence soil will get exposed leading to soil erosion and also leading to losses in biodiversity. Simultaneously, the reptile population increases with this crop threatening the lives of people. Further the growers of this crop find land to do so by removing natural forests. So, this crop is basically devastating our environment and livelihood. After causing all these ill effects what does this crop produce? It’s a vegetable oil that will increase bad cholesterol levels, decrease good cholesterol levels whilst increasing blood sugar levels making consumers of this vegetable oil sick. It is also said that consumers of palm oil will end-up as cancer patients. There are much more such negative narratives but I will stop at this. In a nut shell the argument is that oil palm industry is ruining our natural environment and the health. So, the message to the government is not to lift the ban on oil palm cultivation.
However, knowingly or unknowingly everyone in this world consumes and use significant amounts of palm oil, the produce of this crop. It’s essential for our day-to-day life usage is inevitable. In addition to palm oil being used in domestic cooking, it is used as an ingredient in various food items we consume and in a number of non-food items we use on a daily basis. The source for 40 per cent of the vegetable oil consumed in the world is palm oil. The average per-capita consumption in the world is more than 10 kg per annum. Logically those in Sri Lanka who advocate banning of oil palm cultivation in the country should also do so for importing palm oil. But they do not do that. Importing vegetable oil to the country to meet the deficit in the local demand is a million-dollar industry. Any vegetable oil if not milled and refined using good processing practices will lead to chemical by-products bad for human health. Aflatoxins in coconut oil and MCPDs in palm oil are a few examples. Despite of this risk there are reports to say that inferior quality crude vegetable oils and used vegetable oils are being imported to the country, refined and marketed.
Nakiadeniya estate in Galle had been having palm oil cultivations since 1968. Even after 58 years of this crop there are no reports of drying of soil and shortages of water negatively impacting the day-to-day human life of people in this area. In fact, the ground reality is that those living in the vicinity use water sources within oil palm plantations for their daily water requirement. In Nakiadeniya there are second generation, i.e., replanted oil palm cultivations. These palms are growing vigorously proving that soil is yet healthy and has not turned into sand as believed by a few. One could easily see that there are number of other plant species growing in oil palm cultivated lands. Research undertaken reveals that species richness and density are not different when compared with other plantation crops. Data gathered from hospitals have made it clear that there is no correlation between snake bites and the type of cultivation the estate workers are engaged in. The Regional Plantation Companies (RPCs) manage land leased to them by the Government. These lands have been under plantation crops for more than a century. Oil palm is cultivated only in such land as crop rotation/diversification. It is very obvious that natural forests are not felled by these companies to plant oil palm though some think otherwise. There is no necessity for them to do so considering the large extents of cultivable land available for them.
During the initial development period of the global palm oil industry, in countries such as Malaysia and Indonesia land under natural forests have been cleared for oil palm cultivation. Environmentalists worldwide had vehemently opposed this approach and had launched protests internationally. Currently, the governments of these countries have introduced laws to prevent deforestation for oil palm cultivation. Loss of forest cover, loss of biodiversity, soil degradation, drying of natural springs are a result of deforestation. But such narratives are not relevant to Sri Lanka since land for cultivation of oil palm is sought through crop diversification/rotation. The policy makers should analyse rationally the narratives presented by local environmentalists demanding not to lift the ban on oil palm cultivation. Also, the local environmentalists should not spread false information in the society with other hidden intentions to disrupt development activities that could uplift the economy of the country.
Another school of thought is that lifting the ban on oil palm cultivation will adversely affect the natural rubber industry in the country. It is a fact that the natural rubber extents and production in the country are dwindling rather rapidly.
From 2019 to 2024 the total rubber production in the country has dropped by 16 per cent. The extent under Small Holders (SH) have dropped by 46 per cent whilst the extent under the RPCs have dropped by 29 per cent. It is apparent that the decline in the smallholder sector in the country has largely contributed towards the drop in the rubber production in the country during the period 2019 to 2014. Further data shows that the total rubber production has declined only by 16 per cent during this period whilst the land extents have declined at a much higher percentage, i.e. by around 38 per cent. It appears that owners of low productivity land parcels with no significant economic benefits have moved away from rubber cultivation. Also, the decline in the rubber extents in the country since 2019 cannot be attributed to cultivation oil palm since cultivation in the country was not possible by law. Deterioration in the rubber industry in the country is thus mainly because of low financial gains due to low productivity caused by multiple reasons, stagnant prices and escalating costs.
Undoubtedly the rubber industry in the country needs to be developed. It has immense potential to earn foreign exchange, create employment and contribute to the economic growth of the country. In order to drive investors into cultivating rubber they need to be convinced that a package exists to obtain attractive returns to their investments. The current climatic conditions in the traditional rubber growing areas, Pestalotiopsis leaf disease, white root disease and Tapping Panel Dryness are eroding productivity and profitability in driving the investors away from cultivating natural rubber. There exist alternate strategies to overcome these challenges that has to be implemented by the policy makers.
In the traditional growing areas, with the challenges that currently exists the cycle yield of rubber crop is around 700 kg/ha/annum. With the present market price of Rs. 700 per kg the total revenue per hectare annum is Rs. 490,000. Under the same climatic conditions oil palm under similar environmental conditions yield around 16,000 kg. With the present farm gate price of Rs. 100 per kg the revenue per hectare per year is Rs. 1.6 million. However, in the intermediate zone of the country, where climatic conditions are more conducive for natural rubber, the scenario will be the opposite and rubber will be economically more beneficial. Development of appropriate technology and land use plans considering soil and climatic more appropriate for the crop and giving the investment opportunities to the investor will be the way forward to develop the plantation industry of the country. Sunday TimesLK
Indonesia’s crisis of confidence as markets decode Prabowo
INDONESIA spent much of the week ended Jun 7 confronting a question that might have seemed unthinkable a few short years ago: what happens when investors stop believing in South-east Asia’s largest economy?
The answer played out across trading screens around the world and at government offices in Jakarta. Stocks sank to their lowest levels since the pandemic, the rupiah breached the psychologically important 18,000-per-dollar level for the first time and rumours swirled that Finance Minister Purbaya Yudhi Sadewa was on the way out.
By the end of the week, Purbaya and senior government officials were on the defensive. “I’m not the type to quit,” Purbaya said at a state budget briefing on Friday (Jun 5). He was at pains to talk up the country’s fiscal position, saying the nation’s assets remain stable and inflows healthy.
“Optimism about the Indonesian economy remains strong,” he said. “Why are people saying the economy is heading toward a recession when economic stimulus is sufficient, liquidity is sufficient, and credit growth is also sufficient? Don’t be swayed by a single news report.”
But the damage was largely done. Investors increasingly see Indonesia as a market where policy uncertainty, political intervention and execution risks are beginning to outweigh one of the developing world’s most compelling long-term growth stories – a sentiment that has been growing since President Prabowo Subianto took office less than two years ago.
Investors are “concerned about the direction of policymaking in Indonesia,” Jason Tuvey, deputy chief emerging markets economist of Capital Economics, said. “Especially so, after widespread protests in the middle of last year led to the sacking of respected finance minister Sri Mulyani Indrawati. Since then, the government has adopted increasingly populist and interventionist policies.”
Speculation over Purbaya’s departure was not the only thing sending markets into a tailspin. There were also mounting concerns over the government’s economic management, confusion regarding new commodity export rules and a widening corruption investigation involving Prabowo’s flagship US$15 billion free meals programme.
Rising oil prices driven by the conflict in the Middle East are also adding to pressure on Indonesia’s economy, forcing the government to spend more on fuel subsidies while facing higher import costs for crude oil and LPG. Like several of its South-east Asian neighbors, Indonesia imports a significant share of its crude from the region, making it particularly vulnerable to supply disruptions and price shocks.
“Indonesia isn’t alone in Asia in feeling considerable financial market pressure but in its case, the global energy shock has seemingly brought pre-existing concerns about the fiscal outlook and institutional dynamics more sharply into investors’ focus,” said Peter Mumford, who heads the South-east Asia practice of Eurasia Group. “While the government has been sending stronger signals about fiscal discipline recently with the aim of reassuring investors, new policies have created more uncertainty.”
Indonesia’s benchmark stock index has now fallen more than 35 per cent in 2026, making it the worst-performing major equity market tracked by Bloomberg. The rupiah has dropped roughly 14 per cent since Prabowo took office and is Asia’s weakest currency in 2026. Foreign investors have cut holdings of Indonesian sovereign bonds by about 86 trillion rupiah (S$6.7 billion) since August 2025.
The plunging currency is also making the repayment of US dollar-denominated debt a daunting prospect.
According to data compiled by Bloomberg, the government and companies in Indonesia have some US$12.6 billion of foreign currency bonds due in 2027 and US$11.3 billion to US$16.3 billion in each of the four years thereafter. The government has issued more than US$11 billion in foreign-currency notes so far in 2026, the data show. Business Times
---------
India Must Support Its Oilseed Farmers
From rain-fed fields to absent procurement centres, India's oilseed farmers lack the systems needed to meet the country's ambitious production targets and cut imports.
Mount Abu, Rajasthan: India meets only 44% of its domestic demand for edible oil and spends more than $20 billion a year on imports, a bill that is bound to increase with the war in West Asia disrupting global supply chains and India’s foreign currency reserves under strain.
Already, IndiaSpend’s Food Price Watch has recorded significant year-on-year price increases across different edible oils. Based on the prices of packed oil on May 30, 2026, groundnut oil was up 7% from 2025, mustard oil 12%, palm oil 9%, soya oil 9%, sunflower oil 15% and vanaspati 4%.
Two years ago, the government launched a mission to increase oilseeds production by nearly 80% by the end of this decade, but that assumes a jump in productivity that needs urgent support in the form of farmer outreach, seeds resistant to climatic changes and pests, and an overhaul of the procurement and value addition chains, experts say.
Under the National Mission on Edible Oils, the government has rolled out minimum support prices (MSP) for the procurement of oilseeds, and tariffs to discourage imports and encourage domestic production of edible oils. This includes rapeseed-mustard, groundnut, soybean, sunflower, sesamum, safflower, niger, linseed and palm. While the latter two aren’t covered by the MSP programme, fresh fruit bunches of palm are covered by a baseline price.
To cater to the growing demand for oilseeds, this programme now targets increasing the oilseed area coverage from 29 million hectares (ha) in 2022-23 to 33 million hectares by 2030-31, and the primary oilseed production from 39 million tonnes to 69.7 million tonnes in the same period.
Targeting a 79% increase in production from a 14% increase in acreage presumes a huge jump in productivity, which is up against “a combination of agro-climatic, technological and socio-economic factors, asides genetic limitations”, Ravi Mathur, director of the ICAR-Indian Institute of Oilseeds Research, told IndiaSpend.
“With farmers tending to allocate better land, irrigation, and inputs to cereals and cash crops, oilseeds are often cultivated in residual moisture conditions, on relatively poor soils and in less-favoured production regions,” he said.
In the last three decades, oilseeds acreage across India has increased by more than half, but north and south India saw a drop of 54% and 37%, respectively, offset by a tripling of area under oilseeds in central India and roughly doubling in both west and northeast India.
Low household consumption
India’s per capita consumption of edible oil is widely stated as 19.7 kg per year. However, this consumption spans domestic and industrial uses of oilseeds.
The 2022-23 Household Consumption Expenditure Survey shows that in rural India, the per capita consumption of edible oils is 10.58 kg per year, and in urban India, it is 11.78 kg per year. These figures also include non-food uses in homes such as for lighting diyas, Dattatraya Mahabaleshwar Hegde, former director of the ICAR-Indian Institute of Oilseeds Research, pointed out.
In 2025, Prime Minister Narendra Modi thrice asked his fellow citizens to cut down on their consumption of edible oil for health reasons, in January, February and August. He pointed to rising obesity to suggest that a 10% cut in edible oil consumption can “bring a big change in your health”.
Last month, the Prime Minister repeated his appeal, as part of a list of measures including asking citizens to help conserve foreign exchange reserves by cutting down on purchasing gold and spending on foreign travel, and a shift to public transport, in the face of oil shortages. The WireIN
---------
Japan turns to used cooking oil to boost sustainable aviation fuel production
Tokyo: Japan is intensifying efforts to collect used cooking oil from households and businesses as it seeks to expand domestic production of sustainable aviation fuel (SAF) and reduce reliance on imported energy sources.
The initiative comes as the country works toward its target of sourcing 10 percent of airline fuel from sustainable alternatives by 2030, a goal that has gained added urgency amid rising energy costs and supply concerns linked to geopolitical tensions in West Asia, The Japan Times reported.
A key part of the strategy is the nationwide “Fry to Fly” programme, a public-private partnership that encourages consumers to donate used cooking oil for conversion into aviation fuel. Around 300 collection points, including supermarkets, are currently participating in the initiative.
Japan views used cooking oil as an important feedstock for SAF because it is relatively affordable and can be sourced domestically. However, limited feedstock availability and insufficient production infrastructure continue to constrain output.
According to government estimates, Japan will require approximately 1.7 million kilolitres of sustainable aviation fuel by 2030 to meet its target. Current domestic SAF production stands at only about 30,000 kilolitres, accounting for just 0.3 percent of total jet fuel consumption.
The challenge underscores the broader difficulties facing the global aviation sector as it seeks to reduce greenhouse gas emissions. While SAF is considered one of the most promising pathways for decarbonising air transport, large-scale production remains limited and costs remain significantly higher than those of conventional aviation fuel.
Japan’s two largest airlines, All Nippon Airways and Japan Airlines, recently acknowledged that progress toward scaling up SAF production has been slower and more difficult than initially anticipated.
Industry experts warn that if domestic production falls short of demand, refiners and airlines may be forced to rely on more expensive imports of SAF or feedstocks, potentially increasing operating costs across the aviation sector.
The issue is not unique to Japan. Many countries pursuing SAF adoption continue to face challenges in securing adequate feedstock supplies and developing commercial-scale production facilities. Even in markets where blending mandates have already been introduced, imported feedstocks remain an important source of supply.
The Japanese government has identified the current year as a crucial period for the industry. Refiners are expected to make final investment decisions on SAF projects by March next year to ensure commercial-scale production capacity is available by 2030.
As the race to decarbonise aviation accelerates, Japan’s growing focus on converting used cooking oil into biofuel highlights both the opportunities and challenges associated with building a domestic sustainable aviation fuel industry. Bioenergy Times
---------
Palm oil myths fabricated to cripple an invaluable industry to Sri Lanka
The oil palm crop consumes huge volumes of water leading to water shortages and desertification negatively impacting the livelihood of mankind. Rich and fertile soils in our country turns into sand when this crop is grown. No other plant species will grow in these plantations and hence soil will get exposed leading to soil erosion and also leading to losses in biodiversity. Simultaneously, the reptile population increases with this crop threatening the lives of people. Further the growers of this crop find land to do so by removing natural forests. So, this crop is basically devastating our environment and livelihood. After causing all these ill effects what does this crop produce? It’s a vegetable oil that will increase bad cholesterol levels, decrease good cholesterol levels whilst increasing blood sugar levels making consumers of this vegetable oil sick. It is also said that consumers of palm oil will end-up as cancer patients. There are much more such negative narratives but I will stop at this. In a nut shell the argument is that oil palm industry is ruining our natural environment and the health. So, the message to the government is not to lift the ban on oil palm cultivation.
However, knowingly or unknowingly everyone in this world consumes and use significant amounts of palm oil, the produce of this crop. It’s essential for our day-to-day life usage is inevitable. In addition to palm oil being used in domestic cooking, it is used as an ingredient in various food items we consume and in a number of non-food items we use on a daily basis. The source for 40 per cent of the vegetable oil consumed in the world is palm oil. The average per-capita consumption in the world is more than 10 kg per annum. Logically those in Sri Lanka who advocate banning of oil palm cultivation in the country should also do so for importing palm oil. But they do not do that. Importing vegetable oil to the country to meet the deficit in the local demand is a million-dollar industry. Any vegetable oil if not milled and refined using good processing practices will lead to chemical by-products bad for human health. Aflatoxins in coconut oil and MCPDs in palm oil are a few examples. Despite of this risk there are reports to say that inferior quality crude vegetable oils and used vegetable oils are being imported to the country, refined and marketed.
Nakiadeniya estate in Galle had been having palm oil cultivations since 1968. Even after 58 years of this crop there are no reports of drying of soil and shortages of water negatively impacting the day-to-day human life of people in this area. In fact, the ground reality is that those living in the vicinity use water sources within oil palm plantations for their daily water requirement. In Nakiadeniya there are second generation, i.e., replanted oil palm cultivations. These palms are growing vigorously proving that soil is yet healthy and has not turned into sand as believed by a few. One could easily see that there are number of other plant species growing in oil palm cultivated lands. Research undertaken reveals that species richness and density are not different when compared with other plantation crops. Data gathered from hospitals have made it clear that there is no correlation between snake bites and the type of cultivation the estate workers are engaged in. The Regional Plantation Companies (RPCs) manage land leased to them by the Government. These lands have been under plantation crops for more than a century. Oil palm is cultivated only in such land as crop rotation/diversification. It is very obvious that natural forests are not felled by these companies to plant oil palm though some think otherwise. There is no necessity for them to do so considering the large extents of cultivable land available for them.
During the initial development period of the global palm oil industry, in countries such as Malaysia and Indonesia land under natural forests have been cleared for oil palm cultivation. Environmentalists worldwide had vehemently opposed this approach and had launched protests internationally. Currently, the governments of these countries have introduced laws to prevent deforestation for oil palm cultivation. Loss of forest cover, loss of biodiversity, soil degradation, drying of natural springs are a result of deforestation. But such narratives are not relevant to Sri Lanka since land for cultivation of oil palm is sought through crop diversification/rotation. The policy makers should analyse rationally the narratives presented by local environmentalists demanding not to lift the ban on oil palm cultivation. Also, the local environmentalists should not spread false information in the society with other hidden intentions to disrupt development activities that could uplift the economy of the country.
Another school of thought is that lifting the ban on oil palm cultivation will adversely affect the natural rubber industry in the country. It is a fact that the natural rubber extents and production in the country are dwindling rather rapidly.
From 2019 to 2024 the total rubber production in the country has dropped by 16 per cent. The extent under Small Holders (SH) have dropped by 46 per cent whilst the extent under the RPCs have dropped by 29 per cent. It is apparent that the decline in the smallholder sector in the country has largely contributed towards the drop in the rubber production in the country during the period 2019 to 2014. Further data shows that the total rubber production has declined only by 16 per cent during this period whilst the land extents have declined at a much higher percentage, i.e. by around 38 per cent. It appears that owners of low productivity land parcels with no significant economic benefits have moved away from rubber cultivation. Also, the decline in the rubber extents in the country since 2019 cannot be attributed to cultivation oil palm since cultivation in the country was not possible by law. Deterioration in the rubber industry in the country is thus mainly because of low financial gains due to low productivity caused by multiple reasons, stagnant prices and escalating costs.
Undoubtedly the rubber industry in the country needs to be developed. It has immense potential to earn foreign exchange, create employment and contribute to the economic growth of the country. In order to drive investors into cultivating rubber they need to be convinced that a package exists to obtain attractive returns to their investments. The current climatic conditions in the traditional rubber growing areas, Pestalotiopsis leaf disease, white root disease and Tapping Panel Dryness are eroding productivity and profitability in driving the investors away from cultivating natural rubber. There exist alternate strategies to overcome these challenges that has to be implemented by the policy makers.
In the traditional growing areas, with the challenges that currently exists the cycle yield of rubber crop is around 700 kg/ha/annum. With the present market price of Rs. 700 per kg the total revenue per hectare annum is Rs. 490,000. Under the same climatic conditions oil palm under similar environmental conditions yield around 16,000 kg. With the present farm gate price of Rs. 100 per kg the revenue per hectare per year is Rs. 1.6 million. However, in the intermediate zone of the country, where climatic conditions are more conducive for natural rubber, the scenario will be the opposite and rubber will be economically more beneficial. Development of appropriate technology and land use plans considering soil and climatic more appropriate for the crop and giving the investment opportunities to the investor will be the way forward to develop the plantation industry of the country. Sunday TimesLK
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June 06, 2026
Indonesia issues regulation to bring strategic commodity exports under central control
JAKARTA, June 5 (Reuters) - Indonesia issued a much-anticipated regulation on Friday to bring exports of its strategic commodities under central government control, a move aimed at boosting state earnings and stabilising its rupiah currency.
President Prabowo Subianto announced on May 20 that Indonesia would bring exports of all of its strategic commodities under the control of a new state company, a move that has spooked investors.
The 11-page regulation, published on the website of the state secretariat ministry, was signed on May 20 by Prabowo and outlines the implementation schedule for the new controls.
Palm oil, coal, and ferroalloys can only be exported by a state-owned enterprise, either as "the owner or sole mediator", the regulation said.
"In the export of strategic natural resource commodities by the state-owned export enterprise ... the selling price shall be determined by the state-owned export enterprise," it said, adding that the enterprise can also set margins.
The regulation will be extended to more strategic commodities later, to be decided by relevant ministers.
Exemptions to the new centralised export rules could be granted to business entities that have a contract or agreement with the Indonesian government containing "provisions related at least to investment, divestment, and domestic processing and or refining."
The exemptions will be decided at a coordinating meeting involving related ministers, the regulation said.
The regulation did not specify the state-run entity that will act as the country's sole commodity exporter, but the government's communication agency said in a fact sheet on Friday that "the government has appointed Danantara Sumberdaya Indonesia (DSI) as the designated export SOE."
"Maintaining the confidence of international trading partners and investors is a priority, and every step taken by DSI is designed to reinforce that confidence," the DSI's parent company, Danantara Indonesia said in a statement, adding that export contracts that have already been signed may continue to be carried out.
Once the regulation comes into effect on June 1, commodity exporters will begin channeling shipments through DSI.
Danantara said in the statement that DSI would serve as an "intermediary" to oversee exports "while allowing the commercial relationship between producers and their trading partners to continue."
But after December 31 2026, commodity exports "can only be carried out" by the state entity, according to the regulation.
The Ministry of Trade will issue detailed rules to implement the policy in due course. Reuters
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Weak Rupiah Seen Boosting Indonesia’s Palm Oil Export Earnings
Jakarta. Indonesia’s palm oil industry expects export earnings to rise significantly this year, supported by strong shipment volumes, higher global prices, and the sharp depreciation of the rupiah against the US dollar.
The industry generated $35.87 billion in export revenue in 2025 and believes that figure could be surpassed in 2026 as currency movements improve returns for exporters.
According to data from the Indonesian Palm Oil Association (Gapki), palm oil export revenue rose 10.4% year-on-year to $9.66 billion in the first quarter of 2026, compared with $8.75 billion in the same period a year earlier.
The increase was driven by both higher export volumes and stronger prices. Average palm oil prices reached $1,356 per ton during the January-March period, up from $1,230 per ton in the first quarter of 2025.
“The rupiah’s depreciation is also a blessing. In 2025, around $35 billion in exports translated into about Rp 590 trillion at an exchange rate of roughly Rp 16,000 per dollar. Now, with the exchange rate above Rp 17,000, the value will be even higher,” said Aziz Hidayat, head of plantation affairs at the Indonesian Palm Oil Association.
Industry data show that Indonesia produced 15.56 million tons of palm oil in the first quarter of 2026, up 18.44% from 13.13 million tons in the same period last year.
During the quarter, crude palm oil export volumes increased 11.91% to 8.55 million tons from 7.64 million tons a year earlier. Domestic consumption also grew 7.47% to 6.52 million tons, compared with 6.07 million tons in the first quarter of 2025.
The combination of higher production, rising exports, and stronger domestic demand has strengthened industry confidence that 2026 will outperform last year.
Industry executives remain optimistic even as the government prepares to expand its biofuel program through the introduction of B50, which will require diesel fuel to contain a 50% palm oil-based biodiesel blend.
“Performance through March 2026 shows improvement in both production and exports. If this trend continues through December, the industry’s achievements in 2026 will be better than in 2025,” Aziz said. Jakarta Globe
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MPOGCF strengthens biodiversity conservation in oil palm landscapes
PUTRAJAYA: The Malaysian Palm Oil Green Conservation Foundation (MPOGCF) has intensified efforts to integrate biodiversity conservation into oil palm plantation management to strengthen wildlife coexistence within production landscapes.
Its Conservation and Sustainability Department manager Ahmad Shahdan Kasim said oil palm plantations, forests and wildlife could be managed as a connected landscape through structured planning rather than as separate systems.
He said such an approach allowed plantations to remain productive while improving ecological connectivity and reducing human-wildlife conflict.
"When biodiversity is integrated into plantation planning, coexistence becomes more practical, while operational safety and livelihoods are maintained," he said at the foundation's Biodiversity Forum held here recently.
Ahmad Shahdan said rising human-wildlife conflict required coordinated management across estates, smallholders and relevant agencies, as plantation workers and wildlife increasingly shared the same landscape.
Established in 2021, MPOGCF is continuing conservation work initiated under the Malaysian Palm Oil Wildlife Conservation Fund in 2006. Since then, it has implemented 29 projects involving government agencies, academia, non-governmental organisations and industry players.
The projects fall under four main areas — reforestation, wildlife conservation, biodiversity management and community engagement — covering forest restoration, wildlife corridor development, species monitoring, rescue operations and coexistence programmes.
Key initiatives include habitat restoration in the Lower Kawag, Ulu Segama-Malua Forest Reserve in Lahad Datu, Sabah, carried out with the Kampung Tampenau community, where field observations recorded the return of orangutans to restored areas.
In Sarawak, the foundation worked on peatland rehabilitation, restoring previously unproductive oil palm areas into functioning peat ecosystems to enhance biodiversity and carbon storage.
In Kelantan, it supported the Central Forest Spine Master Plan through the restoration of a 10-hectare forest reserve in Machang, which had been illegally converted to oil palm plantations.
In Sabah, research near the Binsulok-Padas Forest Reserve using 30 camera traps recorded endangered species moving through forest corridors and buffer zones within oil palm landscapes.
Ahmad Shahdan said riparian reserves, forest edges and peat zones should be treated as biodiversity infrastructure, supported by shared data between estates and smallholders to improve land management decisions.
He said studies with Universiti Kebangsaan Malaysia helped translate biodiversity findings into practical plantation guidelines, including maintaining understorey vegetation, native tree species and edge habitats while ensuring operational safety.
He said systematic recording of wildlife sightings and conflict incidents could help identify hotspots early, improve mitigation planning and strengthen Malaysian Sustainable Palm Oil and Roundtable on Sustainable Palm Oil reporting requirements.
MPOGCF has also supported a community-based human-elephant conflict programme in Sungai Ara involving smallholders, including early warning systems, electric fencing and response protocols.
Ahmad Shahdan said the initiative showed that coexistence required both conservation planning and practical risk management on the ground.
On species conservation, MPOGCF has supported elephant and orangutan population surveys in Sabah and worked with the upgraded Wildlife Rescue Unit, now the Elephant Management Unit, which has carried out more than 5,000 wildlife conflict operations.
It also collaborates with the Department of Wildlife and National Parks on Malayan tiger conservation programmes, as well as the Borneo Sun Bear Conservation Centre on sun bear response efforts.
Ahmad Shahdan said visible conservation outcomes were important in strengthening confidence in the sustainability of Malaysian palm oil, adding that biodiversity management must be embedded at estate and landscape levels.
Moving forward, MPOGCF plans to expand landscape monitoring, increase smallholder participation and scale up restoration work involving reforestation, peat rehabilitation and wildlife corridor recovery.
He said the goal was to manage landscapes where people, oil palm, forests and wildlife could coexist. NST
Indonesia issues regulation to bring strategic commodity exports under central control
JAKARTA, June 5 (Reuters) - Indonesia issued a much-anticipated regulation on Friday to bring exports of its strategic commodities under central government control, a move aimed at boosting state earnings and stabilising its rupiah currency.
President Prabowo Subianto announced on May 20 that Indonesia would bring exports of all of its strategic commodities under the control of a new state company, a move that has spooked investors.
The 11-page regulation, published on the website of the state secretariat ministry, was signed on May 20 by Prabowo and outlines the implementation schedule for the new controls.
Palm oil, coal, and ferroalloys can only be exported by a state-owned enterprise, either as "the owner or sole mediator", the regulation said.
"In the export of strategic natural resource commodities by the state-owned export enterprise ... the selling price shall be determined by the state-owned export enterprise," it said, adding that the enterprise can also set margins.
The regulation will be extended to more strategic commodities later, to be decided by relevant ministers.
Exemptions to the new centralised export rules could be granted to business entities that have a contract or agreement with the Indonesian government containing "provisions related at least to investment, divestment, and domestic processing and or refining."
The exemptions will be decided at a coordinating meeting involving related ministers, the regulation said.
The regulation did not specify the state-run entity that will act as the country's sole commodity exporter, but the government's communication agency said in a fact sheet on Friday that "the government has appointed Danantara Sumberdaya Indonesia (DSI) as the designated export SOE."
"Maintaining the confidence of international trading partners and investors is a priority, and every step taken by DSI is designed to reinforce that confidence," the DSI's parent company, Danantara Indonesia said in a statement, adding that export contracts that have already been signed may continue to be carried out.
Once the regulation comes into effect on June 1, commodity exporters will begin channeling shipments through DSI.
Danantara said in the statement that DSI would serve as an "intermediary" to oversee exports "while allowing the commercial relationship between producers and their trading partners to continue."
But after December 31 2026, commodity exports "can only be carried out" by the state entity, according to the regulation.
The Ministry of Trade will issue detailed rules to implement the policy in due course. Reuters
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Weak Rupiah Seen Boosting Indonesia’s Palm Oil Export Earnings
Jakarta. Indonesia’s palm oil industry expects export earnings to rise significantly this year, supported by strong shipment volumes, higher global prices, and the sharp depreciation of the rupiah against the US dollar.
The industry generated $35.87 billion in export revenue in 2025 and believes that figure could be surpassed in 2026 as currency movements improve returns for exporters.
According to data from the Indonesian Palm Oil Association (Gapki), palm oil export revenue rose 10.4% year-on-year to $9.66 billion in the first quarter of 2026, compared with $8.75 billion in the same period a year earlier.
The increase was driven by both higher export volumes and stronger prices. Average palm oil prices reached $1,356 per ton during the January-March period, up from $1,230 per ton in the first quarter of 2025.
“The rupiah’s depreciation is also a blessing. In 2025, around $35 billion in exports translated into about Rp 590 trillion at an exchange rate of roughly Rp 16,000 per dollar. Now, with the exchange rate above Rp 17,000, the value will be even higher,” said Aziz Hidayat, head of plantation affairs at the Indonesian Palm Oil Association.
Industry data show that Indonesia produced 15.56 million tons of palm oil in the first quarter of 2026, up 18.44% from 13.13 million tons in the same period last year.
During the quarter, crude palm oil export volumes increased 11.91% to 8.55 million tons from 7.64 million tons a year earlier. Domestic consumption also grew 7.47% to 6.52 million tons, compared with 6.07 million tons in the first quarter of 2025.
The combination of higher production, rising exports, and stronger domestic demand has strengthened industry confidence that 2026 will outperform last year.
Industry executives remain optimistic even as the government prepares to expand its biofuel program through the introduction of B50, which will require diesel fuel to contain a 50% palm oil-based biodiesel blend.
“Performance through March 2026 shows improvement in both production and exports. If this trend continues through December, the industry’s achievements in 2026 will be better than in 2025,” Aziz said. Jakarta Globe
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MPOGCF strengthens biodiversity conservation in oil palm landscapes
PUTRAJAYA: The Malaysian Palm Oil Green Conservation Foundation (MPOGCF) has intensified efforts to integrate biodiversity conservation into oil palm plantation management to strengthen wildlife coexistence within production landscapes.
Its Conservation and Sustainability Department manager Ahmad Shahdan Kasim said oil palm plantations, forests and wildlife could be managed as a connected landscape through structured planning rather than as separate systems.
He said such an approach allowed plantations to remain productive while improving ecological connectivity and reducing human-wildlife conflict.
"When biodiversity is integrated into plantation planning, coexistence becomes more practical, while operational safety and livelihoods are maintained," he said at the foundation's Biodiversity Forum held here recently.
Ahmad Shahdan said rising human-wildlife conflict required coordinated management across estates, smallholders and relevant agencies, as plantation workers and wildlife increasingly shared the same landscape.
Established in 2021, MPOGCF is continuing conservation work initiated under the Malaysian Palm Oil Wildlife Conservation Fund in 2006. Since then, it has implemented 29 projects involving government agencies, academia, non-governmental organisations and industry players.
The projects fall under four main areas — reforestation, wildlife conservation, biodiversity management and community engagement — covering forest restoration, wildlife corridor development, species monitoring, rescue operations and coexistence programmes.
Key initiatives include habitat restoration in the Lower Kawag, Ulu Segama-Malua Forest Reserve in Lahad Datu, Sabah, carried out with the Kampung Tampenau community, where field observations recorded the return of orangutans to restored areas.
In Sarawak, the foundation worked on peatland rehabilitation, restoring previously unproductive oil palm areas into functioning peat ecosystems to enhance biodiversity and carbon storage.
In Kelantan, it supported the Central Forest Spine Master Plan through the restoration of a 10-hectare forest reserve in Machang, which had been illegally converted to oil palm plantations.
In Sabah, research near the Binsulok-Padas Forest Reserve using 30 camera traps recorded endangered species moving through forest corridors and buffer zones within oil palm landscapes.
Ahmad Shahdan said riparian reserves, forest edges and peat zones should be treated as biodiversity infrastructure, supported by shared data between estates and smallholders to improve land management decisions.
He said studies with Universiti Kebangsaan Malaysia helped translate biodiversity findings into practical plantation guidelines, including maintaining understorey vegetation, native tree species and edge habitats while ensuring operational safety.
He said systematic recording of wildlife sightings and conflict incidents could help identify hotspots early, improve mitigation planning and strengthen Malaysian Sustainable Palm Oil and Roundtable on Sustainable Palm Oil reporting requirements.
MPOGCF has also supported a community-based human-elephant conflict programme in Sungai Ara involving smallholders, including early warning systems, electric fencing and response protocols.
Ahmad Shahdan said the initiative showed that coexistence required both conservation planning and practical risk management on the ground.
On species conservation, MPOGCF has supported elephant and orangutan population surveys in Sabah and worked with the upgraded Wildlife Rescue Unit, now the Elephant Management Unit, which has carried out more than 5,000 wildlife conflict operations.
It also collaborates with the Department of Wildlife and National Parks on Malayan tiger conservation programmes, as well as the Borneo Sun Bear Conservation Centre on sun bear response efforts.
Ahmad Shahdan said visible conservation outcomes were important in strengthening confidence in the sustainability of Malaysian palm oil, adding that biodiversity management must be embedded at estate and landscape levels.
Moving forward, MPOGCF plans to expand landscape monitoring, increase smallholder participation and scale up restoration work involving reforestation, peat rehabilitation and wildlife corridor recovery.
He said the goal was to manage landscapes where people, oil palm, forests and wildlife could coexist. NST
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June 05, 2026
Chinese buyers scoop up Indonesian palm oil before export revamp
More purchases are taking place this week as buyers take advantage of attractive price margins
[JAKARTA] China is snapping up discounted cargoes of Indonesian palm-based cooking oil, accelerating purchases as buyers take advantage of lower prices following Jakarta’s overhaul of its commodity export system.
At least 18, and possibly as many as 30 cargoes of palm olein, have been booked by Chinese buyers in the two weeks since Indonesia announced its new policy, according to people familiar with the deals, with most for June and July delivery.
More purchases are taking place this week as buyers take advantage of attractive price margins after olein futures on China’s Dalian Commodity Exchange rallied, said the people, who asked not to be named discussing private transactions.
The volumes are unusually large, and reflect a scramble to secure cheaply-priced cargoes from Indonesian producers who are rushing to sell before the country’s new export framework is fully implemented, two of the people said. China usually imports about 17-18 cargoes of Indonesian palm oil a month, according to customs data.
Olein, the liquid fraction of palm oil commonly used as cooking oil and in food processing, is one of the most actively traded palm products in Asia. Refined, bleached and deodorised palm olein accounted for the largest share of Indonesia’s palm oil exports last year, according to data from cargo surveyor Intertek Testing Services.
Chinese buying from Indonesia, the world’s biggest supplier, has spiked since President Prabowo Subianto unveiled plans to establish government control of commodities exports late last month. Exporters are required to begin reporting sales from June 1, but can continue to ship product overseas by themselves in a transition phase until Jan one next year at the latest.
https://www.businesstimes.com.sg/international/asean/chinese-buyers-scoop-indonesian-palm-oil-export-revamp
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China’s Growing Footprint in Ghana’s Palm Oil Industry
Beijing’s quiet investments are reshaping farms, processing plants, and export markets across Ghana’s oil palm belt.
While public attention often focuses on China’s involvement in Ghana’s roads, ports, and energy infrastructure, a less visible but increasingly significant investment trend is taking shape in the country’s agricultural sector. Over the past three years, Chinese companies and traders have invested millions of dollars in Ghana’s palm oil industry, targeting plantations, processing facilities, and export networks.
The strategy reflects China’s broader effort to secure reliable supplies for its vast edible oil market while positioning Ghana as a key palm oil production and processing hub in West Africa.
Investment Flowing into Farms, Mills and Trade
Unlike many large-scale infrastructure projects financed through government agreements, much of the investment in Ghana’s palm oil sector has come from private Chinese capital.
Chinese firms, particularly from provinces such as Guangdong and Hainan, have reportedly entered lease agreements for thousands of acres of land in Ghana’s Western, Central and Bono regions. Rather than pursuing outright ownership, many companies are adopting contract farming and outgrower models. Under these arrangements, local farmers receive seedlings, fertilizer, technical support and guaranteed markets, while investors secure a steady supply of fresh fruit bunches for processing.
Investment has also expanded into milling and refining operations. Since 2023, several new processing facilities equipped with Chinese technology and backed by Chinese capital have emerged in key oil palm-producing areas, including Ellembelle, Twifo-Praso and Benso. Industry estimates suggest investments ranging between $80 million and $120 million.
These facilities are designed not only to process crude palm oil but also to produce refined, bleached and deodorized (RBD) palm oil, a higher-value product with stronger export potential.
At the same time, Chinese trading companies have strengthened their presence at Tema Port, where they have become important buyers and exporters of both crude and refined palm oil destined for markets in China, India and the Middle East. Investments in storage infrastructure and logistics networks are also improving the efficiency of the supply chain.
Why Ghana Has Become Attractive
Several factors explain the growing interest in Ghana’s palm oil sector.
First is supply diversification. China imports more than seven million tonnes of palm oil annually, with the overwhelming majority sourced from Indonesia and Malaysia. As those countries increasingly prioritize domestic biodiesel production and impose export-related restrictions, Chinese buyers are seeking alternative suppliers. Ghana’s substantial oil palm resources and significant room for expansion make it an attractive option.
Second is Ghana’s strategic position within the African Continental Free Trade Area (AfCFTA). As host of the AfCFTA Secretariat, Ghana offers investors access to a rapidly integrating African market. Palm oil processed in Ghana can potentially serve consumers across West Africa and beyond under more favorable trade arrangements.
Third is competitiveness. Although Ghana’s yields remain below those achieved in Southeast Asia, lower land and labor costs, combined with improved seedlings, mechanization and modern farming practices, offer opportunities for significant productivity gains.
Potential Benefits for Ghana
If managed effectively, the influx of investment could deliver substantial economic benefits.
The sector has strong job creation potential. Modern palm oil mills can generate hundreds of direct jobs while supporting thousands of smallholder farmers through outgrower schemes. Access to finance, inputs and guaranteed markets can improve incomes and reduce uncertainty for rural producers. Modern Ghana
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Rising Demand and Falling Stocks Force Cameroon Back Into Palm Oil Imports
Cameroon is preparing to import additional palm oil during the second half of 2026 to prevent supply shortages in the domestic market.
The decision emerged from consultations held on June 2 at the Ministry of Trade, bringing together government agencies, producers, industrial users, and representatives of the industry.
The meeting, chaired by Trade Minister Luc Magloire Mbarga Atangana, took place against a backdrop of growing pressure on domestic supply. According to figures presented during the discussions, national stocks have fallen below 10,000 tons, even as demand from households, refineries, soap manufacturers, and other industrial users remains high.
In the short term, imports are viewed as a safeguard to stabilize the market. However, the move comes at a difficult time internationally.
Palm oil prices remain under pressure, supported by demand from the biodiesel sector and broader tensions across vegetable oil markets. Dorab Mistry, director of Godrej International, expects prices to continue rising and has projected that Malaysian palm oil futures could reach around 5,200 ringgits per ton by mid-July, according to estimates reported by Reuters.
For Cameroonian authorities, however, imports cannot be considered a long-term solution.
The June 2 discussions once again highlighted the sector’s structural weaknesses, including insufficient local production, an uneven distribution of value across the supply chain, traceability challenges, weak oversight of operators, and the persistence of informal bulk palm oil trade.
The latter remains a particular concern for authorities. Much of the bulk trade operates outside formal channels, making it difficult to track actual supply volumes and depriving the government of tax revenue. It also contributes to distortions in a market already strained by the gap between domestic production and industrial demand.
To address these challenges, stakeholders agreed to establish technical committees tasked with monitoring priority reforms. The objective is to strengthen coordination among producers, processors, and industrial users, improve assessments of operators’ actual production capacity, and streamline supply chains.
The issue extends well beyond the availability of a common consumer product.
Palm oil is a strategic raw material for the food-processing industry, soap manufacturing, cosmetics production, and several other industrial sectors. Any prolonged disruption in supply affects production costs, consumer prices, and industrial activity at a time when many factories are already operating below capacity.
A Structural Deficit Measured in Hundreds of Thousands of Tons
The current shortage reflects a long-standing structural deficit in the sector.
Industry estimates regularly place the country’s annual supply gap between 200,000 and 300,000 tons. The shortfall is particularly damaging for refineries and soap manufacturers, many of which operate at only a fraction of their installed capacity because of limited access to raw materials.
Against this backdrop, palm oil company Opalm signed a CFA45 billion investment agreement with the Cameroonian government in December 2025.
The project includes the construction of five palm oil production facilities across several agricultural regions of the country, with the goal of increasing domestic supply for industrial users.
According to figures released as part of the program, Opalm aims to add about 108,000 tons of palm oil production annually. Based on an estimated deficit of 300,000 tons, that contribution would cover slightly more than one-third of the country’s unmet needs.
While the project could significantly reduce dependence on imports, it would not fully eliminate the supply imbalance.
Until those investments materialize, Cameroon remains exposed to a rising import bill.
Data published by the National Institute of Statistics show that imports of crude and refined oils increased from 69,719 tons in 2024 to 130,564 tons in 2025.
In value terms, imports rose from CFA49.9 billion to CFA92.2 billion, an increase of 84.8%.
The figures illustrate the growing pressure that the domestic supply deficit is placing on the country’s trade balance.
In the short term, imports should help ease tensions in the local market. Over the longer term, however, the key challenge remains rebuilding a domestic supply base that is large enough, competitive enough, and better organized to reduce the country’s exposure to international price swings and supply constraints.
Amina Malloum/ Business in Cameroon
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Chinese buyers scoop up Indonesian palm oil before export revamp
More purchases are taking place this week as buyers take advantage of attractive price margins
[JAKARTA] China is snapping up discounted cargoes of Indonesian palm-based cooking oil, accelerating purchases as buyers take advantage of lower prices following Jakarta’s overhaul of its commodity export system.
At least 18, and possibly as many as 30 cargoes of palm olein, have been booked by Chinese buyers in the two weeks since Indonesia announced its new policy, according to people familiar with the deals, with most for June and July delivery.
More purchases are taking place this week as buyers take advantage of attractive price margins after olein futures on China’s Dalian Commodity Exchange rallied, said the people, who asked not to be named discussing private transactions.
The volumes are unusually large, and reflect a scramble to secure cheaply-priced cargoes from Indonesian producers who are rushing to sell before the country’s new export framework is fully implemented, two of the people said. China usually imports about 17-18 cargoes of Indonesian palm oil a month, according to customs data.
Olein, the liquid fraction of palm oil commonly used as cooking oil and in food processing, is one of the most actively traded palm products in Asia. Refined, bleached and deodorised palm olein accounted for the largest share of Indonesia’s palm oil exports last year, according to data from cargo surveyor Intertek Testing Services.
Chinese buying from Indonesia, the world’s biggest supplier, has spiked since President Prabowo Subianto unveiled plans to establish government control of commodities exports late last month. Exporters are required to begin reporting sales from June 1, but can continue to ship product overseas by themselves in a transition phase until Jan one next year at the latest.
https://www.businesstimes.com.sg/international/asean/chinese-buyers-scoop-indonesian-palm-oil-export-revamp
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China’s Growing Footprint in Ghana’s Palm Oil Industry
Beijing’s quiet investments are reshaping farms, processing plants, and export markets across Ghana’s oil palm belt.
While public attention often focuses on China’s involvement in Ghana’s roads, ports, and energy infrastructure, a less visible but increasingly significant investment trend is taking shape in the country’s agricultural sector. Over the past three years, Chinese companies and traders have invested millions of dollars in Ghana’s palm oil industry, targeting plantations, processing facilities, and export networks.
The strategy reflects China’s broader effort to secure reliable supplies for its vast edible oil market while positioning Ghana as a key palm oil production and processing hub in West Africa.
Investment Flowing into Farms, Mills and Trade
Unlike many large-scale infrastructure projects financed through government agreements, much of the investment in Ghana’s palm oil sector has come from private Chinese capital.
Chinese firms, particularly from provinces such as Guangdong and Hainan, have reportedly entered lease agreements for thousands of acres of land in Ghana’s Western, Central and Bono regions. Rather than pursuing outright ownership, many companies are adopting contract farming and outgrower models. Under these arrangements, local farmers receive seedlings, fertilizer, technical support and guaranteed markets, while investors secure a steady supply of fresh fruit bunches for processing.
Investment has also expanded into milling and refining operations. Since 2023, several new processing facilities equipped with Chinese technology and backed by Chinese capital have emerged in key oil palm-producing areas, including Ellembelle, Twifo-Praso and Benso. Industry estimates suggest investments ranging between $80 million and $120 million.
These facilities are designed not only to process crude palm oil but also to produce refined, bleached and deodorized (RBD) palm oil, a higher-value product with stronger export potential.
At the same time, Chinese trading companies have strengthened their presence at Tema Port, where they have become important buyers and exporters of both crude and refined palm oil destined for markets in China, India and the Middle East. Investments in storage infrastructure and logistics networks are also improving the efficiency of the supply chain.
Why Ghana Has Become Attractive
Several factors explain the growing interest in Ghana’s palm oil sector.
First is supply diversification. China imports more than seven million tonnes of palm oil annually, with the overwhelming majority sourced from Indonesia and Malaysia. As those countries increasingly prioritize domestic biodiesel production and impose export-related restrictions, Chinese buyers are seeking alternative suppliers. Ghana’s substantial oil palm resources and significant room for expansion make it an attractive option.
Second is Ghana’s strategic position within the African Continental Free Trade Area (AfCFTA). As host of the AfCFTA Secretariat, Ghana offers investors access to a rapidly integrating African market. Palm oil processed in Ghana can potentially serve consumers across West Africa and beyond under more favorable trade arrangements.
Third is competitiveness. Although Ghana’s yields remain below those achieved in Southeast Asia, lower land and labor costs, combined with improved seedlings, mechanization and modern farming practices, offer opportunities for significant productivity gains.
Potential Benefits for Ghana
If managed effectively, the influx of investment could deliver substantial economic benefits.
The sector has strong job creation potential. Modern palm oil mills can generate hundreds of direct jobs while supporting thousands of smallholder farmers through outgrower schemes. Access to finance, inputs and guaranteed markets can improve incomes and reduce uncertainty for rural producers. Modern Ghana
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Rising Demand and Falling Stocks Force Cameroon Back Into Palm Oil Imports
Cameroon is preparing to import additional palm oil during the second half of 2026 to prevent supply shortages in the domestic market.
The decision emerged from consultations held on June 2 at the Ministry of Trade, bringing together government agencies, producers, industrial users, and representatives of the industry.
The meeting, chaired by Trade Minister Luc Magloire Mbarga Atangana, took place against a backdrop of growing pressure on domestic supply. According to figures presented during the discussions, national stocks have fallen below 10,000 tons, even as demand from households, refineries, soap manufacturers, and other industrial users remains high.
In the short term, imports are viewed as a safeguard to stabilize the market. However, the move comes at a difficult time internationally.
Palm oil prices remain under pressure, supported by demand from the biodiesel sector and broader tensions across vegetable oil markets. Dorab Mistry, director of Godrej International, expects prices to continue rising and has projected that Malaysian palm oil futures could reach around 5,200 ringgits per ton by mid-July, according to estimates reported by Reuters.
For Cameroonian authorities, however, imports cannot be considered a long-term solution.
The June 2 discussions once again highlighted the sector’s structural weaknesses, including insufficient local production, an uneven distribution of value across the supply chain, traceability challenges, weak oversight of operators, and the persistence of informal bulk palm oil trade.
The latter remains a particular concern for authorities. Much of the bulk trade operates outside formal channels, making it difficult to track actual supply volumes and depriving the government of tax revenue. It also contributes to distortions in a market already strained by the gap between domestic production and industrial demand.
To address these challenges, stakeholders agreed to establish technical committees tasked with monitoring priority reforms. The objective is to strengthen coordination among producers, processors, and industrial users, improve assessments of operators’ actual production capacity, and streamline supply chains.
The issue extends well beyond the availability of a common consumer product.
Palm oil is a strategic raw material for the food-processing industry, soap manufacturing, cosmetics production, and several other industrial sectors. Any prolonged disruption in supply affects production costs, consumer prices, and industrial activity at a time when many factories are already operating below capacity.
A Structural Deficit Measured in Hundreds of Thousands of Tons
The current shortage reflects a long-standing structural deficit in the sector.
Industry estimates regularly place the country’s annual supply gap between 200,000 and 300,000 tons. The shortfall is particularly damaging for refineries and soap manufacturers, many of which operate at only a fraction of their installed capacity because of limited access to raw materials.
Against this backdrop, palm oil company Opalm signed a CFA45 billion investment agreement with the Cameroonian government in December 2025.
The project includes the construction of five palm oil production facilities across several agricultural regions of the country, with the goal of increasing domestic supply for industrial users.
According to figures released as part of the program, Opalm aims to add about 108,000 tons of palm oil production annually. Based on an estimated deficit of 300,000 tons, that contribution would cover slightly more than one-third of the country’s unmet needs.
While the project could significantly reduce dependence on imports, it would not fully eliminate the supply imbalance.
Until those investments materialize, Cameroon remains exposed to a rising import bill.
Data published by the National Institute of Statistics show that imports of crude and refined oils increased from 69,719 tons in 2024 to 130,564 tons in 2025.
In value terms, imports rose from CFA49.9 billion to CFA92.2 billion, an increase of 84.8%.
The figures illustrate the growing pressure that the domestic supply deficit is placing on the country’s trade balance.
In the short term, imports should help ease tensions in the local market. Over the longer term, however, the key challenge remains rebuilding a domestic supply base that is large enough, competitive enough, and better organized to reduce the country’s exposure to international price swings and supply constraints.
Amina Malloum/ Business in Cameroon
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June 04, 2026
Indonesian Wealth Fund Danantara Plans Dollar Bond Offering
Danantara, the Indonesian sovereign wealth fund that has emerged to take an outsized role in Southeast Asia’s largest economy, hired banks for a potential dollar bond sale, in a test of investor confidence.
(Bloomberg) — Danantara, the Indonesian sovereign wealth fund that has emerged to take an outsized role in Southeast Asia’s largest economy, hired banks for a potential dollar bond sale, in a test of investor confidence.
Indonesia’s President Prabowo Subianto established Danantara last year in a bid to improve the efficiency of Indonesia’s powerful state-owned enterprises and to attract foreign capital. The fund, which boasts assets of about $1 trillion, was at the center of Prabowo’s surprise announcement last month to centralize exports of key commodities. A unit of Danantara was designated as the sole export channel for coal, palm oil and ferroalloys.
Danantara hired banks to arrange a series of fixed income investor meetings and calls in Asia, Europe and the US starting Wednesday, according to people familiar with the matter, who asked not to be identified discussing private matters. Danantara didn’t immediately respond to requests for comment.
The potential offering comes amid the growing concern among investors about some of Prabowo growth initiatives after Moody’s and Fitch Ratings both cut their credit outlooks for the nation to negative. Prabowo said earlier this year that he would like Danantara to achieve at least a 5% return on assets, or $50 billion a year based on its self-estimated total assets.
In the bond offering memorandum, Danantara said the “government is not guaranteeing” any of its obligations in respect of the notes. Proceeds from the offering will be used for general corporate purposes, including investments and refinancing of outstanding borrowings, according to the document.
Danantara hired Citigroup, DBS Bank, HSBC, Mandiri Securities and Standard Chartered Bank as joint lead managers and joint bookrunners to arrange the fixed income investor meetings and calls, according to people familiar. The notes would be offered via Danantara Investment Management, the investment arm of the wealth fund. The mandate doesn’t mean a deal will be concluded.
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Malaysian palm oil exports to face pressure from Indonesia’s commodity export overhaul
Indonesian palm oil is currently more attractively priced than Malaysian supplies
MALAYSIAN palm oil exports could tumble for a third straight month in June if buyers favour cheaper Indonesian supplies as Jakarta’s overhaul of commodity shipments sparks a push to move cargoes before the new rules fully take hold.
An Indonesian plan to take control of exports began on Jun 1, with producers expected to start submitting sales figures via newly formed state-owned firm PT Danantara Sumberdaya Indonesia. The system is still in a transition phase, and companies are allowed to keep handling transactions until Danantara takes over specific export activities as early as September, or by Jan 1, 2027, at the latest, senior officials said in the week ended May 31.
There were initial expectations the new Indonesian rules would divert demand to Malaysia, but that has not happened so far because key importers, especially those in India, had already made ample purchases in the first quarter, according to Paramalingam Supramaniam, a director at Selangor-based brokerage Pelindung Bestari.
“If Indonesia starts pushing out more exports until the new policy is fully implemented, that would intensify competition with Malaysia and weigh on its shipments,” he said.
A shift to purchases from Indonesian could put pressure on Malaysian palm oil futures, which have been hit by sluggish exports and softer energy prices that have reduced the tropical oil’s appeal for biofuel. Indonesian palm oil is currently more attractively priced than Malaysian supplies, giving the country room to capture market share, according to traders.
Malaysian exports fell 6.2 per cent in May from a month earlier to 1.22 million tonnes, according to the median of 11 estimates in a Bloomberg survey of plantation executives, traders and analysts. That is the weakest level since February, and follows a 14 per cent drop in April.
Inventories rose 2.2 per cent to 2.36 million tonnes, according to the poll, while crude palm oil production fell 4.9 per cent to 1.55 million tonnes. The Malaysian Palm Oil Board is scheduled to publish official figures on Jun 10.
Not everyone is convinced that exports will remain weak.
“For June, exports will recover mainly due to easing prices in May prompting major importers to restock after two previous months of a slowdown in buying,” said Sathia Varqa, a senior analyst with Fastmarkets Palm Oil Analytics in Singapore. “Uncertainty over the Indonesian export policy could also propel increased purchases from Malaysia.” Business Times
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US Slaps 10% Forced Labor Tariff on Indonesia
Jakarta. The US has slapped an additional 10% tariff on Indonesia for letting imported goods linked with forced labor enter the country.
In March, the Donald Trump 2.0 government launched a forced labor probe into Indonesia and dozens of other countries. On Tuesday Washington time, the US declared new tariffs of either 10% or 12.5%. The higher rate is for countries that have failed to not only impose, but also effectively enforce a prohibition on imported goods made with forced labor. Indonesia is subject to a lower rate for having bans in place, but lacks effective enforcement.
US Trade Representative Jamieson Greer slammed the failures as “unacceptable”.
“This creates a dynamic where American workers are forced to compete globally on an unlevel playing field,” Greer said.
Haryo Limanseto, the spokesperson at the Coordinating Ministry for Economic Affairs, told the Jakarta Globe that these were still interim investigations. Indonesia plans to submit written comments and join the upcoming public hearings.
“The Indonesian government remains committed to respecting human rights, labor protection, and implementing labor principles that are consistent with international standards,” Haryo said.
Jakarta also plans to engage in talks with the US side “in a constructive manner” while strengthening the implementation of import regulations.
Indonesia already has a tariff deal with the US government, although the pact remains subject to ratification. In its report, Washington wrote that Jakarta had “taken on commitments” on forced labor import prohibition under the pact. The latest tariff salvo is also just weeks ahead of the July 24 expiration of a 10% temporary tariff. Jakarta Globe
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Malaysia to retain palm oil market position despite EU–Indonesia trade agreement momentum
Malaysia is expected to maintain its competitive position in the global palm oil market despite accelerating progress in the Indonesia–EU trade agreement. While Indonesia, the world’s largest palm oil exporter, has concluded negotiations on a free trade agreement with the EU and is moving toward ratification, analysts say the competitive landscape remains more balanced than a simple first-mover advantage suggests.
Indonesia exported an estimated 23.6 mln tonnes of palm oil worth $24.4 bln in 2025, while Malaysia shipped 17.3 mln tonnes. However, Malaysia continues to hold a strong position in higher-value segments of the market, with total export earnings estimated at around $30 bln, reflecting its focus on refined and certified products.
A key factor shaping competition is compliance with the EU Deforestation Regulation (EUDR), where sustainability certification plays an increasingly important role alongside tariffs. Malaysia has already secured recognition of its Malaysian Sustainable Palm Oil (MSPO) certification in discussions with the EU, strengthening its regulatory standing regardless of the FTA timeline.
At the same time, Indonesia’s earlier progress in finalizing the trade agreement could improve its price competitiveness through potential tariff advantages. Currency dynamics may also play a role, with expectations of a stronger Malaysian ringgit and a relatively weaker Indonesian rupiah in 2026 influencing export pricing.
Despite these pressures, analysts believe Malaysia will retain a degree of competitive resilience, supported by its established sustainability framework and strong positioning in premium palm oil markets.
For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.
It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data. UKR Agroconsult
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FAO issues forest monitoring good practices for tree crop commodities and smallholders
ROME – The Food and Agriculture Organization of the United Nations (FAO) today published new guidance on forest monitoring, including on how to map and monitor tree-based agricultural commodities such as those produced in agroforestry systems. Launched today at the GeoField 2026 Convening, the Forest monitoring good practices: mapping tree crop commodities provides a comprehensive framework for using earth observation and geospatial data to identify the presence of crops like cocoa, coffee, rubber and palm oil.
From satellite images, a shaded cocoa plantation or a coffee agroforestry system can look nearly identical to a natural forest. The new guidance, intended for use by a broad range of actors, including national governments, private sector operators, civil society and researchers, sets out a methodology for gathering accurate data that reliably distinguishes between natural forests and farms cultivating tree crops.
“This technical publication comes at an important moment as international markets increasingly seek assurance that agricultural products are not linked to forest loss,” said Zhimin Wu, FAO Assistant Director-General and Director of the Forestry Division.
Why mapping tree crop commodities matters
While cereal crops such as wheat, maize and rice form the backbone of the global food trade, tree crops like cocoa, coffee and palm oil are among the highest value agricultural products traded globally.
Tree crop commodities are mostly grown in tropical countries and smallholder family farmers produce 80 per cent of the world’s coffee. In countries like Ghana and Côte d’Ivoire, cocoa is a primary source of income for most smallholder families.
Yet smallholders often manage small, irregularly shaped plots hidden under dense forest canopies, and without accurate mapping data, these producers are at risk of being excluded from global markets that are increasingly requesting transparent and responsible sourcing information.
Key recommendations
The good practices outline a sophisticated multi-step process for generating reliable commodity maps. Rather than relying on a single data source, the FAO recommends a "convergence of evidence" approach that integrates satellite imagery with ground-level intelligence.
Key recommendations include moving beyond traditional optical satellite images, which are often blocked by clouds in tropical regions and instead combining optical data with other sensors to "see through" weather patterns and measure the physical structure and height of vegetation.
The framework highlights the use of advanced algorithms and artificial intelligence to identify complex patterns in how crops are planted, helping to differentiate between the random growth of a forest and the managed rows or clusters of a farm.
It recommends verifying mapping produced with satellite imagery and radar by comparing it with reference data such as high-resolution drone imagery, field data and input from local experts.
It advocates for the use of standardised definitions for land cover, land use and forests so that all data is globally compatible and, for transparency, providing metadata with every map to explain how it was made, what the limitations may be and ensuring data sharing complies with privacy laws.
The publication, co-authored by a large span of actors from the public and private sector, makes the case for publicly available open data to support transparent and sustainable supply chains.
Good practices on forest monitoring: inclusive smallholder data governance
A second new FAO publication, Forest monitoring good practices: inclusive smallholder data governance, was also launched today at the GeoField 2026 Convening.
The publication provides an overview of the smallholder data landscape, including what, why and how data is collected, gathered and managed.
The publication explains the main risks and inequalities smallholder farmers face in how their data is collected and used, and recommends fairer data practices, shared standards, farmer-focused digital systems and better support to help farmers understand and manage their data. FAO
Indonesian Wealth Fund Danantara Plans Dollar Bond Offering
Danantara, the Indonesian sovereign wealth fund that has emerged to take an outsized role in Southeast Asia’s largest economy, hired banks for a potential dollar bond sale, in a test of investor confidence.
(Bloomberg) — Danantara, the Indonesian sovereign wealth fund that has emerged to take an outsized role in Southeast Asia’s largest economy, hired banks for a potential dollar bond sale, in a test of investor confidence.
Indonesia’s President Prabowo Subianto established Danantara last year in a bid to improve the efficiency of Indonesia’s powerful state-owned enterprises and to attract foreign capital. The fund, which boasts assets of about $1 trillion, was at the center of Prabowo’s surprise announcement last month to centralize exports of key commodities. A unit of Danantara was designated as the sole export channel for coal, palm oil and ferroalloys.
Danantara hired banks to arrange a series of fixed income investor meetings and calls in Asia, Europe and the US starting Wednesday, according to people familiar with the matter, who asked not to be identified discussing private matters. Danantara didn’t immediately respond to requests for comment.
The potential offering comes amid the growing concern among investors about some of Prabowo growth initiatives after Moody’s and Fitch Ratings both cut their credit outlooks for the nation to negative. Prabowo said earlier this year that he would like Danantara to achieve at least a 5% return on assets, or $50 billion a year based on its self-estimated total assets.
In the bond offering memorandum, Danantara said the “government is not guaranteeing” any of its obligations in respect of the notes. Proceeds from the offering will be used for general corporate purposes, including investments and refinancing of outstanding borrowings, according to the document.
Danantara hired Citigroup, DBS Bank, HSBC, Mandiri Securities and Standard Chartered Bank as joint lead managers and joint bookrunners to arrange the fixed income investor meetings and calls, according to people familiar. The notes would be offered via Danantara Investment Management, the investment arm of the wealth fund. The mandate doesn’t mean a deal will be concluded.
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Malaysian palm oil exports to face pressure from Indonesia’s commodity export overhaul
Indonesian palm oil is currently more attractively priced than Malaysian supplies
MALAYSIAN palm oil exports could tumble for a third straight month in June if buyers favour cheaper Indonesian supplies as Jakarta’s overhaul of commodity shipments sparks a push to move cargoes before the new rules fully take hold.
An Indonesian plan to take control of exports began on Jun 1, with producers expected to start submitting sales figures via newly formed state-owned firm PT Danantara Sumberdaya Indonesia. The system is still in a transition phase, and companies are allowed to keep handling transactions until Danantara takes over specific export activities as early as September, or by Jan 1, 2027, at the latest, senior officials said in the week ended May 31.
There were initial expectations the new Indonesian rules would divert demand to Malaysia, but that has not happened so far because key importers, especially those in India, had already made ample purchases in the first quarter, according to Paramalingam Supramaniam, a director at Selangor-based brokerage Pelindung Bestari.
“If Indonesia starts pushing out more exports until the new policy is fully implemented, that would intensify competition with Malaysia and weigh on its shipments,” he said.
A shift to purchases from Indonesian could put pressure on Malaysian palm oil futures, which have been hit by sluggish exports and softer energy prices that have reduced the tropical oil’s appeal for biofuel. Indonesian palm oil is currently more attractively priced than Malaysian supplies, giving the country room to capture market share, according to traders.
Malaysian exports fell 6.2 per cent in May from a month earlier to 1.22 million tonnes, according to the median of 11 estimates in a Bloomberg survey of plantation executives, traders and analysts. That is the weakest level since February, and follows a 14 per cent drop in April.
Inventories rose 2.2 per cent to 2.36 million tonnes, according to the poll, while crude palm oil production fell 4.9 per cent to 1.55 million tonnes. The Malaysian Palm Oil Board is scheduled to publish official figures on Jun 10.
Not everyone is convinced that exports will remain weak.
“For June, exports will recover mainly due to easing prices in May prompting major importers to restock after two previous months of a slowdown in buying,” said Sathia Varqa, a senior analyst with Fastmarkets Palm Oil Analytics in Singapore. “Uncertainty over the Indonesian export policy could also propel increased purchases from Malaysia.” Business Times
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US Slaps 10% Forced Labor Tariff on Indonesia
Jakarta. The US has slapped an additional 10% tariff on Indonesia for letting imported goods linked with forced labor enter the country.
In March, the Donald Trump 2.0 government launched a forced labor probe into Indonesia and dozens of other countries. On Tuesday Washington time, the US declared new tariffs of either 10% or 12.5%. The higher rate is for countries that have failed to not only impose, but also effectively enforce a prohibition on imported goods made with forced labor. Indonesia is subject to a lower rate for having bans in place, but lacks effective enforcement.
US Trade Representative Jamieson Greer slammed the failures as “unacceptable”.
“This creates a dynamic where American workers are forced to compete globally on an unlevel playing field,” Greer said.
Haryo Limanseto, the spokesperson at the Coordinating Ministry for Economic Affairs, told the Jakarta Globe that these were still interim investigations. Indonesia plans to submit written comments and join the upcoming public hearings.
“The Indonesian government remains committed to respecting human rights, labor protection, and implementing labor principles that are consistent with international standards,” Haryo said.
Jakarta also plans to engage in talks with the US side “in a constructive manner” while strengthening the implementation of import regulations.
Indonesia already has a tariff deal with the US government, although the pact remains subject to ratification. In its report, Washington wrote that Jakarta had “taken on commitments” on forced labor import prohibition under the pact. The latest tariff salvo is also just weeks ahead of the July 24 expiration of a 10% temporary tariff. Jakarta Globe
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Malaysia to retain palm oil market position despite EU–Indonesia trade agreement momentum
Malaysia is expected to maintain its competitive position in the global palm oil market despite accelerating progress in the Indonesia–EU trade agreement. While Indonesia, the world’s largest palm oil exporter, has concluded negotiations on a free trade agreement with the EU and is moving toward ratification, analysts say the competitive landscape remains more balanced than a simple first-mover advantage suggests.
Indonesia exported an estimated 23.6 mln tonnes of palm oil worth $24.4 bln in 2025, while Malaysia shipped 17.3 mln tonnes. However, Malaysia continues to hold a strong position in higher-value segments of the market, with total export earnings estimated at around $30 bln, reflecting its focus on refined and certified products.
A key factor shaping competition is compliance with the EU Deforestation Regulation (EUDR), where sustainability certification plays an increasingly important role alongside tariffs. Malaysia has already secured recognition of its Malaysian Sustainable Palm Oil (MSPO) certification in discussions with the EU, strengthening its regulatory standing regardless of the FTA timeline.
At the same time, Indonesia’s earlier progress in finalizing the trade agreement could improve its price competitiveness through potential tariff advantages. Currency dynamics may also play a role, with expectations of a stronger Malaysian ringgit and a relatively weaker Indonesian rupiah in 2026 influencing export pricing.
Despite these pressures, analysts believe Malaysia will retain a degree of competitive resilience, supported by its established sustainability framework and strong positioning in premium palm oil markets.
For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.
It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data. UKR Agroconsult
--------
FAO issues forest monitoring good practices for tree crop commodities and smallholders
ROME – The Food and Agriculture Organization of the United Nations (FAO) today published new guidance on forest monitoring, including on how to map and monitor tree-based agricultural commodities such as those produced in agroforestry systems. Launched today at the GeoField 2026 Convening, the Forest monitoring good practices: mapping tree crop commodities provides a comprehensive framework for using earth observation and geospatial data to identify the presence of crops like cocoa, coffee, rubber and palm oil.
From satellite images, a shaded cocoa plantation or a coffee agroforestry system can look nearly identical to a natural forest. The new guidance, intended for use by a broad range of actors, including national governments, private sector operators, civil society and researchers, sets out a methodology for gathering accurate data that reliably distinguishes between natural forests and farms cultivating tree crops.
“This technical publication comes at an important moment as international markets increasingly seek assurance that agricultural products are not linked to forest loss,” said Zhimin Wu, FAO Assistant Director-General and Director of the Forestry Division.
Why mapping tree crop commodities matters
While cereal crops such as wheat, maize and rice form the backbone of the global food trade, tree crops like cocoa, coffee and palm oil are among the highest value agricultural products traded globally.
Tree crop commodities are mostly grown in tropical countries and smallholder family farmers produce 80 per cent of the world’s coffee. In countries like Ghana and Côte d’Ivoire, cocoa is a primary source of income for most smallholder families.
Yet smallholders often manage small, irregularly shaped plots hidden under dense forest canopies, and without accurate mapping data, these producers are at risk of being excluded from global markets that are increasingly requesting transparent and responsible sourcing information.
Key recommendations
The good practices outline a sophisticated multi-step process for generating reliable commodity maps. Rather than relying on a single data source, the FAO recommends a "convergence of evidence" approach that integrates satellite imagery with ground-level intelligence.
Key recommendations include moving beyond traditional optical satellite images, which are often blocked by clouds in tropical regions and instead combining optical data with other sensors to "see through" weather patterns and measure the physical structure and height of vegetation.
The framework highlights the use of advanced algorithms and artificial intelligence to identify complex patterns in how crops are planted, helping to differentiate between the random growth of a forest and the managed rows or clusters of a farm.
It recommends verifying mapping produced with satellite imagery and radar by comparing it with reference data such as high-resolution drone imagery, field data and input from local experts.
It advocates for the use of standardised definitions for land cover, land use and forests so that all data is globally compatible and, for transparency, providing metadata with every map to explain how it was made, what the limitations may be and ensuring data sharing complies with privacy laws.
The publication, co-authored by a large span of actors from the public and private sector, makes the case for publicly available open data to support transparent and sustainable supply chains.
Good practices on forest monitoring: inclusive smallholder data governance
A second new FAO publication, Forest monitoring good practices: inclusive smallholder data governance, was also launched today at the GeoField 2026 Convening.
The publication provides an overview of the smallholder data landscape, including what, why and how data is collected, gathered and managed.
The publication explains the main risks and inequalities smallholder farmers face in how their data is collected and used, and recommends fairer data practices, shared standards, farmer-focused digital systems and better support to help farmers understand and manage their data. FAO
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June 03, 2026
Indonesia: State-led commodity reform a high-stakes shift for the rupiah
A structural regime shift is underway.
By Lloyd Chan/ MUFG Research
Key Points
Indonesia: State-led commodity reform a high-stakes shift for the rupiah
A structural regime shift is underway.
By Lloyd Chan/ MUFG Research
Key Points
- A structural regime shift is underway. Indonesia is transitioning toward a state-controlled commodity export system under Danantara Sumberdaya Indonesia (DSI), a new subsidiary of the Danantara sovereign wealth fund. Unlike global precedents typically focused on a single commodity resource, Indonesia is attempting to apply this model across multiple key commodities such as coal, palm oil, and ferroalloys, making the scope both unique and execution intensive.
- The commodity reform aims to strengthen fiscal position, FX reserves, and external stability, including ensuring full repatriation of commodity export proceeds. However, successful implementation hinges on the government’s ability to scale operational, trading, and pricing capabilities across several complex commodity value chains, alongside managing coordination across ministries and existing ecosystems.
- Implementation risks are high in the near term. Uncertainty during the rollout phase could disrupt trade flows, create pricing ambiguity, and weigh on investor sentiment. Markets appear to be pricing this risk, with the rupiah underperforming regional peers amid a softening macro backdrop - including a sharply narrowing trade surplus ($89mn in April vs. $3.3bn in March), declining FX reserves (down ~USD6.3bn YoY in April), and persistent capital outflows.
- Our base case: We expect the government to take direct control of several key commodity exports. Market mechanisms are not eliminated, but increasingly mediated by the state. Prices could still reference global benchmarks, even as state influence rises. Operational challenges are likely to persist across multiple commodity value chains, given the scale and complexity of coordination. At the same time, tail risks of policy overreach gradually fade, allowing market sentiment to stabilise. USDIDR could develop a mild downside bias on an unwinding of crowded long USDIDR positioning and cheap valuations. US–Iran de-escalation could be a key trigger for reversal.
- Policy outcomes are inherently binary over the medium term. Effective execution would strengthen Indonesia’s external position and underpin rupiah stability, while poor execution or policy overreach risks disrupting trade flows, eroding competitiveness, and driving prolonged currency weakness.
- BI’s policy support will help to partially offset rising country risk premia. The central bank has raised policy rate by 50bps in May and enhanced FX support measures via issuing more high-yielding SRBI, helping to improve the rupiah’s front-end carry appeal.
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Indonesian Palm Oil Association GAPKI Warns Against Disruptions From New Single-Gate Export Policy
Jakarta. Indonesia’s palm oil industry has urged the government to implement its new single-gate export system gradually, warning that abrupt changes could disrupt global trade networks and affect millions of farmers tied to the sector.
Eddy Martono, chairman of the Indonesian Palm Oil Association (Gapki), said on Tuesday that Indonesia’s palm oil industry currently exports to around 160 countries, making a careful transition essential to avoid trade disruptions under the new export management system operated by Danantara Sumberdaya Indonesia (DSI).
“We must avoid stagnation and losing our markets. If DSI is implemented while the institution is not yet fully ready, then the process should be gradual, not immediate. We will continue to provide input as the implementation progresses,” Eddy said after a meeting at the Coordinating Ministry for Economic Affairs in Jakarta.
According to Eddy, Gapki has submitted various recommendations to the government regarding the transition toward the centralized export mechanism.
One of the industry’s main concerns is preserving long-established business relationships between Indonesian exporters and overseas buyers.
“Building export markets is not easy. It does not happen within one or two months, but can take many years,” Eddy said.
He stressed that the palm oil industry plays a major role in Indonesia’s economy, particularly in employment creation and farmer welfare.
Around 41% of Indonesia’s oil palm plantations are owned by smallholder farmers, he said, making the sustainability of the sector a critical national issue.
“Smallholders own 41% of the plantations. This is not a trivial industry -- it is an extraordinary industry. It must be managed and protected properly,” Eddy said.
Earlier, Coordinating Minister for Economic Affairs Airlangga Hartarto said the government would gradually implement a centralized export management system for strategic natural resource commodities through DSI, a newly established state-owned export company. Jakarta Globe
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B15 biodiesel use boosts national diesel supply security for Malaysia during crises
PUTRAJAYA (June 3): The use of palm oil-based biodiesel not only supports the nation's sustainability agenda but also serves as an important alternative to strengthen diesel supply security during times of crisis, said Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad.
She said the primary consideration behind the proposal to expand biodiesel blending to B15 is to ensure the country has an alternative fuel source should disruptions occur in petroleum diesel supplies.
“The implementation of B15 biodiesel is a strategic government measure to strengthen national energy security, reduce dependence on fossil fuels and support the country's sustainability agenda through the use of more sustainable alternative energy sources,” she said.
She told reporters this after visiting the Klang Valley Distribution Terminal (KVDT) for the implementation of B15 biodiesel here on Wednesday.
Noraini said the implementation of B15, which began on June 1, was a government decision aimed at extending supply assurance during crises, and that Palm Methyl Ester (PME) is a viable alternative as it helps prolong the country's fuel reserves.
She said the government continues to encourage the use of biodiesel, in line with the country's commitment to environmental, social and governance (ESG) objectives and green development.
She said biodiesel implementation in Malaysia currently varies by location, with several areas having already achieved higher blending levels.
According to her, Sarawak, except Bintulu, as well as Labuan and Langkawi, have implemented B20 biodiesel, while other areas are using B10, B12 and B15 blends. The Edge
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Malaysian oil palm replanting slows due to rising fuel and fertiliser costs
Palm oil producers in Malaysia are scaling back replanting due to rising fertiliser and fuel costs amid elevated vegetable oil prices, The Edge Malaysia wrote.
Planters in the world’s second largest palm oil producer were facing fertiliser price increases of up to 60%, while diesel costs had more than doubled since the start of the US-Iraq Iran war, according to farmers, industry officials and analysts quoted in the 19 May report.
With the near-closure of the Strait of Hormuz holding back global energy supplies, benchmark prices of crude palm oil (CPO) had risen by about a tenth since late February, prompting farmers to produce rather than replant, The Edge Malaysia wrote.
Ageing oil palm plantations in Malaysia and top global producer Indonesia were a key concern for supply, with the industry only beginning to step up long-delayed replanting efforts in 2025, according to the report.
However, Indonesia – unlike Malaysia – had ample domestic supplies of fertiliser, the report said.
Replanting was critical to maintaining yields at a time when supplies were pressured by stagnating output and Indonesia diverted more of its production to biodiesel, The Edge Malaysia wrote.
Smallholder farmers, who comprise 40% of Malaysian output, were also scaling back replanting for lack of financial support, industry officials said.
In the Malaysian state of Sarawak on Borneo island, many smallholders cultivated land under Native Customary Rights, which did not confer formal ownership, said Napoleon Ningkos, president of the Sarawak Dayak Oil Palm Planters Association.
“If they don't replant, we will definitely see yields keep going down and this will affect volumes in coming years.”
Fertiliser comprised about half the costs of palm oil production costs, The Edge Malaysia wrote.
According to companies quoted in the report, the impact to date appears largely confined to smallholders, with major producers operating without significant disruption.
Despite this, maintaining a healthy replanting rate of 3%-4% in Malaysia this year could be challenging, due to current uncertainties, Roslin Azmy Hassan, chief executive of the Malaysian Palm Oil Association (MPOA) said.
Malaysia’s replanting rate rose to 3.4% in 2025, higher than the annual 2% rate over the previous five years, driven by accelerated replanting efforts by larger plantations and government support for smallholders, The Edge Malaysia wrote.
In addition to facing rising fertiliser and fuel costs, Malaysia’s agri-commodity sector was facing a severe cost squeeze on other fronts, with shipping costs to the Middle East surging between 50%-80% and war risk insurance premiums rising to as much as 3%, Economy Minister Akmal Nasrullah Mohd Nasir was quoted as saying in a 25 May New Straits Times (NST) report.
Upstream plantation and machinery costs had risen by 10%-30%, Nasir added.
Manufacturing costs were also under strain, with palm oleochemical production costs rising by up to 30%, NST wrote.
To protect smallholder incomes, Nasir said the government had implemented a series of mitigation measures through the Plantation and Commodities Ministry. Measures included monitoring plantation operating costs to optimise production expenses and channelling targeted cash assistance to smallholders through the Budi Agri-Komoditi scheme to ease the input cost burden. OFI Magazine
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Liberia's Exports to India Surge By 120% Driven By Palm Oil and Rubber
Liberia's exports to India more than doubled during the 2025-2026 financial year, propelled by surging shipments of crude palm kernel oil and natural rubber, according to official trade statistics from India's Ministry of Commerce and Industry.
The figures show Liberian exports to India rising from US$20.39 million in 2024-2025 to US$44.91 million in 2025-2026, representing growth of more than 120 percent and marking the strongest export performance recorded between the two countries in recent years. At the same time, India's exports to Liberia declined from US$376.33 million to US$345.15 million, narrowing Liberia's trade deficit and signaling a gradual strengthening of the country's export position in one of the world's fastest-growing major economies.
The development comes amid steadily deepening diplomatic and commercial relations between Monrovia and New Delhi, reinforcing India's status as one of Liberia's most significant trading partners.
While Liberia's public discourse often centers on mining, rail infrastructure and iron ore exports, the latest trade figures tell a different story. The country's export surge to India is being driven primarily by agriculture.
Official commodity-level data show that crude palm kernel oil emerged as Liberia's fastest-growing export to India, increasing from US$2.17 million to US$10.38 million within a single year--a remarkable 379 percent increase. Natural rubber exports also rose strongly, climbing from US$8.30 million to US$12.94 million.
Together, palm kernel oil and rubber generated more than US$23 million in export earnings, accounting for more than half of Liberia's total exports to India during the reporting period.
The figures suggest that agriculture, rather than extractive industries, is currently leading Liberia's export expansion into the Indian market.
The data also reveal an emerging recycling and industrial materials trade. Copper scrap exports surged from US$1.29 million to US$4.89 million, while aluminum scrap exports remained substantial at US$3.81 million. Exports of spent lead-acid batteries reached US$2.02 million, indicating growing demand for recyclable industrial materials.
Perhaps most strikingly, the statistics show no significant exports of iron ore concentrates from Liberia to India during the period under review, challenging assumptions that mining products are the primary drivers of bilateral trade growth.
The surge in Liberian exports is occurring within the framework of India's Duty-Free Tariff Preference (DFTP) Scheme, introduced in 2012, which grants Liberia zero-duty and preferential access to more than 98 percent of India's tariff lines.
The Indian government has described the DFTP scheme as a practical expression of South-South cooperation designed to improve market access for least-developed countries, including Liberia.
Trade figures released by India's Ministry of Commerce indicate that total bilateral trade between the two countries reached US$390.06 million during the 2025-2026 financial year, maintaining the strong momentum established over the past two years.
Observers note that the growing trade relationship is increasingly visible in everyday Liberian life. Indian-made Bajaj motorcycles and tricycles, TVS vehicles, Hero motorcycles and Sonalika agricultural machinery have become common across Liberia, reflecting the breadth of commercial engagement between the two countries.
Beyond trade in goods, the relationship has expanded significantly at the diplomatic level.
According to information provided by the Indian Embassy in Monrovia, a major turning point came in 2021 with the establishment of India's resident diplomatic mission in Liberia, enabling more frequent engagement between the two governments.
That engagement deepened further in December 2024 when Liberia and India held their first-ever Foreign Office Consultations in Monrovia. The consultations, co-chaired by India's Additional Secretary for the Ministry of External Affairs and Liberia's Foreign Affairs Minister Sara Beysolow Nyanti, covered cooperation in trade, investment, mining, agriculture, health, pharmaceuticals, education and people-to-people exchanges.
The growing partnership has also been reinforced through high-level visits and new areas of cooperation.
Liberia's Vice President Jeremiah Kpan Koung participated in the 19th Confederation of Indian Industry (CII) India-Africa Business Conclave in New Delhi, where discussions focused on investment opportunities and economic collaboration.
The two countries have also strengthened cooperation in public health and pharmaceutical regulation. Liberia recently signed a Memorandum of Understanding on cooperation in pharmacopoeia standards, enabling the country to recognize the Indian Pharmacopoeia as one of its approved standards for medicines. The agreement is expected to enhance pharmaceutical quality assurance and expand access to affordable medicines. All Africa
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June 02, 2026
Indonesia April trade surplus lowest since May 2020, currency weakness persists
SINGAPORE (ICIS)–Indonesia recorded its lowest trade surplus since May 2020 in April at $89.1 million, its narrowest margin since a consecutive 71-month surplus streak began in May 2020, while on Tuesday, the Indonesian rupiah (Rp) also plummeted to a fresh record low of Rp 17,892 against the US dollar.
Total exports surged 21.98% year on year in April to $25.30 billion, driven by elevated global commodity prices following the Middle East conflict’s outbreak, alongside strong performance in manufactured goods, palm oil derivatives and basic chemicals.
Total imports were up by 22.49% year on year to $25.21 billion. driven by an 82.52% explosion in oil and gas imports.
In January-April 2026, Indonesia’s trade balance recorded a surplus of US$5.64 billion, supported by a non-oil and gas surplus of $14.16 billion, while the oil and gas sector had a deficit of $8.52 billion.
Indonesia’s annualized consumer price index (CPI) also quickened to 3.08% in May from 2.42% in April, according to the BPS on 2 June.
A weakening currency and high global crude and oil product prices are driving up import costs, leading to rising inflation.
Caution over a breakdown in ceasefire talks between the US and Iran also contributed to the rupiah’s fall.
Indonesia’s central bank has a target inflation range of 1.5-3.5%, and surprised with a 50 basis-point hike in its recent May meeting.
However, Dutch-based financial services firm ING said on 20 May that Bank Indonesia (BI)’s decision was “unlikely to reverse the broader depreciation trend”, with an uncertain domestic policy weighing on sentiment.
Recent policy moves such as an export control policy for Indonesia’s natural resources, such as crude palm oil (CPO) and coal, have spooked foreign investors and increased uncertainty, market sources previously said.
The policy came into effect on 1 June, and new state-owned company Danantara Sumberdaya Indonesia (DSI), run by sovereign wealth fund Danantara, will take over specific export activities by January 2027, Coordinating Economic Minister Airlangga Hartarto said on 31 May.
An additional policy that came in effect on 1 June mandates that exporters of natural resources are to keep their proceeds within state banks, in a bid to strengthen the rupiah, President Prabowo Subianto said.
The government has set a mandatory repatriation of 100% of natural resource export proceeds into the Indonesian financial system, Hartato said.
In the oil and gas sector, exporters are required to place a minimum of 30% of foreign exchange proceeds from exports (DHE) for three months, while the non-oil and gas sector is required to place 100% of DHE for 12 months.
Focus article by Jonathan Yee
READ MORE
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Indonesia records 51 bln USD surplus in halal product trade in 2025
JAKARTA, June 1 (Xinhua) -- Indonesia recorded a halal product trade surplus of 51.17 billion U.S. dollars in 2025, supported by exports worth 63.42 billion dollars, Deputy Trade Minister Dyah Roro Esti Widya Putri said on Monday.
Palm oil and its derivatives remained the country's largest halal export category, valued at 34.16 billion dollars, followed by Muslim fashion products at 8.67 billion dollars and chemicals used in halal cosmetics worth 5.46 billion dollars.
During the first quarter of 2026, Indonesia's halal product exports reached 15.64 billion dollars, up 2.52 percent year on year, the official said.
The government plans to step up promotion, export facilitation and market expansion efforts, particularly in Latin America, Africa and North America, to increase the global market share of Indonesian halal products.
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Why Indonesia is Rebuilding Commodity Oversight
President Prabowo’s new initiative reflects a broader effort to address fragmented oversight, reduce commodity leakage, and strengthen his country’s role in global supply chains.
On May 20, Indonesian President Prabowo Subianto announced the establishment of PT Danantara Sumberdaya Indonesia (DSI), a new state entity under the Danantara sovereign wealth fund tasked with overseeing selected strategic commodity exports, initially focused on palm oil, coal, and ferro-alloys. The move reflects a broader government effort to strengthen oversight across Indonesia’s commodity sector and address practices estimated to contribute to billions of dollars in annual revenue leakage.
It has also prompted market concerns over potential regulatory bottlenecks, payment delays, and uncertainty surrounding how the new institution would function in practice. Because Indonesia increasingly sits at the center of global supply chains for energy, food, and critical minerals, the implications extend beyond domestic revenue collection to questions of trade reliability, industrial policy, and geopolitical influence.
The core mandate of DSI is to function primarily as a transparency, documentation, and monitoring platform rather than a profit-seeking intermediary, with officials emphasizing that the entity will not take margins or commissions from exporters. However, important uncertainties remain. Public communications surrounding the proposal have at times appeared internally inconsistent. Some elements of the proposed framework suggest a centralized monitoring and audit platform, while others imply a more interventionist role in export execution, a distinction with materially different implications for exporters and markets. A platform designed to improve visibility over contracts, pricing, and export proceeds carries very different implications from a centralized state trading intermediary. The Diplomat
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Ghana: We grow the tree but buy the oil: Fidelity Bank’s research shows why that has to change
Palm oil is in almost everything Ghanaians eat, yet the country imports more than it produces. A new report from Fidelity Bank’s Research and Market Insights Unit breaks down a structural problem that has been building for years.
The oil that runs everything
There is a product in your kitchen, your soap, your biscuits, your margarine, and quite possibly your fuel, that most people never think about. Palm oil is the most consumed vegetable oil in the world, producing 79.6 million metric tonnes annually, more than soybean, rapeseed, and sunflower oil combined. It overtook soybean oil as the global leader in 2006 and has not looked back since.
Ghana knows this crop well. The oil palm tree is native to West Africa. The country has the land, the climate, and the farming history to be a serious producer. Yet today, Ghana imports significantly more palm oil than it exports, spending GHS 1.06 billion more on imports than it earns from exports as of 2025.
That trade deficit has grown by 503percent compared to 2024 alone. This is the central finding of Fidelity Bank Ghana’s latest research report: Ghana’s Oil Palm Trade 2018 to 2025. And the numbers tell a story that goes far beyond trade statistics.
A continent that cannot feed its own demand
The problem is not unique to Ghana. Africa as a whole consumes 9.9 million metric tonnes of palm oil annually but produces only 3.5 million, leaving a production deficit of 6.4 million metric tonnes. That gap is being filled almost entirely by imports from Asia, primarily Malaysia and Indonesia, the two countries that now control roughly 86percent of global palm oil production.
For Ghana specifically, Malaysia supplies 59percent of all palm oil imports. Liberia accounts for 22percent, Indonesia another 7percent. The country’s exports, by contrast, flow mostly to Nigeria and Senegal, regional neighbours who are themselves trying to close their own supply gaps.
The picture that emerges is of a country positioned squarely in the middle of a continental food dependency, buying a product it has every natural condition to produce, from countries thousands of kilometres away.
The gap between potential and reality
What makes this particularly striking is the scale of what Ghana is not using. The country has 4.7 million hectares of arable land suitable for oil palm cultivation. Currently, only 0.4 million hectares are under harvest. That means roughly 91percent of Ghana’s potential oil palm land sits idle or underutilised.
Domestic production stands at around 300,000 metric tonnes annually. Domestic consumption is approximately 350,000 metric tonnes. Ghana is not even producing enough to feed its own market, let alone generate meaningful export volumes.
The report identifies the core bottleneck clearly: raw material scarcity driven by low yields, ageing trees, and a fragmented smallholder supply chain. Many of Ghana’s oil palm farms are run by smallholder farmers working with older tree stock, limited access to quality
seedlings and fertiliser, and roads that make it difficult to get fresh fruit to processing mills before quality degrades. The result is extraction rates that fall well below what the land and the crop are capable of delivering.
A market shaped by prices it cannot control
There is another layer to this problem that affects every Ghanaian who buys cooking oil. Because Ghana sources the majority of its palm oil from Asia, its cost structure is almost entirely determined by global commodity prices and international freight rates. When global palm oil prices surged in 2021, Ghana felt it immediately. Import values hit GHS 2,092 million that year, up sharply from GHS 888.9 million in 2018.
The country has limited ability to buffer itself against these swings because domestic supply cannot be scaled up quickly enough to respond. When external prices rise, Ghanaian consumers pay more. When freight costs increase, the gap widens further. The vulnerability is structural, not incidental.
Where the opportunity sits
The report is not pessimistic. It is honest about the problem, but it also maps the opportunity clearly. Ghana is not going to out-compete Malaysia or Indonesia on price. Those countries have decades of industrial infrastructure, government support, and economies of scale that are not easily replicated. That is not where Ghana’s advantage lies.
The real opportunity is in value addition and regional proximity. Africa’s demand for palm oil is growing. Countries across the continent are net importers. Under the African Continental Free Trade Area agreement, Ghana has a geographical and logistical advantage over Asian suppliers for those markets. The question is whether the country can build the processing and export infrastructure to take that position seriously.
Funding momentum is beginning to align. Development Bank Ghana has committed $500 million to support the agricultural sector, and development finance institutions are increasingly directing resources toward plantation expansion, outgrower schemes, and refinery upgrades. The BFT Online
Indonesia April trade surplus lowest since May 2020, currency weakness persists
SINGAPORE (ICIS)–Indonesia recorded its lowest trade surplus since May 2020 in April at $89.1 million, its narrowest margin since a consecutive 71-month surplus streak began in May 2020, while on Tuesday, the Indonesian rupiah (Rp) also plummeted to a fresh record low of Rp 17,892 against the US dollar.
- High oil prices erode trade surplus in April
- CPI up to 3.08% in May
- Export control policy uncertainty spooks investors, weakens rupiah
Total exports surged 21.98% year on year in April to $25.30 billion, driven by elevated global commodity prices following the Middle East conflict’s outbreak, alongside strong performance in manufactured goods, palm oil derivatives and basic chemicals.
Total imports were up by 22.49% year on year to $25.21 billion. driven by an 82.52% explosion in oil and gas imports.
In January-April 2026, Indonesia’s trade balance recorded a surplus of US$5.64 billion, supported by a non-oil and gas surplus of $14.16 billion, while the oil and gas sector had a deficit of $8.52 billion.
Indonesia’s annualized consumer price index (CPI) also quickened to 3.08% in May from 2.42% in April, according to the BPS on 2 June.
A weakening currency and high global crude and oil product prices are driving up import costs, leading to rising inflation.
Caution over a breakdown in ceasefire talks between the US and Iran also contributed to the rupiah’s fall.
Indonesia’s central bank has a target inflation range of 1.5-3.5%, and surprised with a 50 basis-point hike in its recent May meeting.
However, Dutch-based financial services firm ING said on 20 May that Bank Indonesia (BI)’s decision was “unlikely to reverse the broader depreciation trend”, with an uncertain domestic policy weighing on sentiment.
Recent policy moves such as an export control policy for Indonesia’s natural resources, such as crude palm oil (CPO) and coal, have spooked foreign investors and increased uncertainty, market sources previously said.
The policy came into effect on 1 June, and new state-owned company Danantara Sumberdaya Indonesia (DSI), run by sovereign wealth fund Danantara, will take over specific export activities by January 2027, Coordinating Economic Minister Airlangga Hartarto said on 31 May.
An additional policy that came in effect on 1 June mandates that exporters of natural resources are to keep their proceeds within state banks, in a bid to strengthen the rupiah, President Prabowo Subianto said.
The government has set a mandatory repatriation of 100% of natural resource export proceeds into the Indonesian financial system, Hartato said.
In the oil and gas sector, exporters are required to place a minimum of 30% of foreign exchange proceeds from exports (DHE) for three months, while the non-oil and gas sector is required to place 100% of DHE for 12 months.
Focus article by Jonathan Yee
READ MORE
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Indonesia records 51 bln USD surplus in halal product trade in 2025
JAKARTA, June 1 (Xinhua) -- Indonesia recorded a halal product trade surplus of 51.17 billion U.S. dollars in 2025, supported by exports worth 63.42 billion dollars, Deputy Trade Minister Dyah Roro Esti Widya Putri said on Monday.
Palm oil and its derivatives remained the country's largest halal export category, valued at 34.16 billion dollars, followed by Muslim fashion products at 8.67 billion dollars and chemicals used in halal cosmetics worth 5.46 billion dollars.
During the first quarter of 2026, Indonesia's halal product exports reached 15.64 billion dollars, up 2.52 percent year on year, the official said.
The government plans to step up promotion, export facilitation and market expansion efforts, particularly in Latin America, Africa and North America, to increase the global market share of Indonesian halal products.
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Why Indonesia is Rebuilding Commodity Oversight
President Prabowo’s new initiative reflects a broader effort to address fragmented oversight, reduce commodity leakage, and strengthen his country’s role in global supply chains.
On May 20, Indonesian President Prabowo Subianto announced the establishment of PT Danantara Sumberdaya Indonesia (DSI), a new state entity under the Danantara sovereign wealth fund tasked with overseeing selected strategic commodity exports, initially focused on palm oil, coal, and ferro-alloys. The move reflects a broader government effort to strengthen oversight across Indonesia’s commodity sector and address practices estimated to contribute to billions of dollars in annual revenue leakage.
It has also prompted market concerns over potential regulatory bottlenecks, payment delays, and uncertainty surrounding how the new institution would function in practice. Because Indonesia increasingly sits at the center of global supply chains for energy, food, and critical minerals, the implications extend beyond domestic revenue collection to questions of trade reliability, industrial policy, and geopolitical influence.
The core mandate of DSI is to function primarily as a transparency, documentation, and monitoring platform rather than a profit-seeking intermediary, with officials emphasizing that the entity will not take margins or commissions from exporters. However, important uncertainties remain. Public communications surrounding the proposal have at times appeared internally inconsistent. Some elements of the proposed framework suggest a centralized monitoring and audit platform, while others imply a more interventionist role in export execution, a distinction with materially different implications for exporters and markets. A platform designed to improve visibility over contracts, pricing, and export proceeds carries very different implications from a centralized state trading intermediary. The Diplomat
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Ghana: We grow the tree but buy the oil: Fidelity Bank’s research shows why that has to change
Palm oil is in almost everything Ghanaians eat, yet the country imports more than it produces. A new report from Fidelity Bank’s Research and Market Insights Unit breaks down a structural problem that has been building for years.
The oil that runs everything
There is a product in your kitchen, your soap, your biscuits, your margarine, and quite possibly your fuel, that most people never think about. Palm oil is the most consumed vegetable oil in the world, producing 79.6 million metric tonnes annually, more than soybean, rapeseed, and sunflower oil combined. It overtook soybean oil as the global leader in 2006 and has not looked back since.
Ghana knows this crop well. The oil palm tree is native to West Africa. The country has the land, the climate, and the farming history to be a serious producer. Yet today, Ghana imports significantly more palm oil than it exports, spending GHS 1.06 billion more on imports than it earns from exports as of 2025.
That trade deficit has grown by 503percent compared to 2024 alone. This is the central finding of Fidelity Bank Ghana’s latest research report: Ghana’s Oil Palm Trade 2018 to 2025. And the numbers tell a story that goes far beyond trade statistics.
A continent that cannot feed its own demand
The problem is not unique to Ghana. Africa as a whole consumes 9.9 million metric tonnes of palm oil annually but produces only 3.5 million, leaving a production deficit of 6.4 million metric tonnes. That gap is being filled almost entirely by imports from Asia, primarily Malaysia and Indonesia, the two countries that now control roughly 86percent of global palm oil production.
For Ghana specifically, Malaysia supplies 59percent of all palm oil imports. Liberia accounts for 22percent, Indonesia another 7percent. The country’s exports, by contrast, flow mostly to Nigeria and Senegal, regional neighbours who are themselves trying to close their own supply gaps.
The picture that emerges is of a country positioned squarely in the middle of a continental food dependency, buying a product it has every natural condition to produce, from countries thousands of kilometres away.
The gap between potential and reality
What makes this particularly striking is the scale of what Ghana is not using. The country has 4.7 million hectares of arable land suitable for oil palm cultivation. Currently, only 0.4 million hectares are under harvest. That means roughly 91percent of Ghana’s potential oil palm land sits idle or underutilised.
Domestic production stands at around 300,000 metric tonnes annually. Domestic consumption is approximately 350,000 metric tonnes. Ghana is not even producing enough to feed its own market, let alone generate meaningful export volumes.
The report identifies the core bottleneck clearly: raw material scarcity driven by low yields, ageing trees, and a fragmented smallholder supply chain. Many of Ghana’s oil palm farms are run by smallholder farmers working with older tree stock, limited access to quality
seedlings and fertiliser, and roads that make it difficult to get fresh fruit to processing mills before quality degrades. The result is extraction rates that fall well below what the land and the crop are capable of delivering.
A market shaped by prices it cannot control
There is another layer to this problem that affects every Ghanaian who buys cooking oil. Because Ghana sources the majority of its palm oil from Asia, its cost structure is almost entirely determined by global commodity prices and international freight rates. When global palm oil prices surged in 2021, Ghana felt it immediately. Import values hit GHS 2,092 million that year, up sharply from GHS 888.9 million in 2018.
The country has limited ability to buffer itself against these swings because domestic supply cannot be scaled up quickly enough to respond. When external prices rise, Ghanaian consumers pay more. When freight costs increase, the gap widens further. The vulnerability is structural, not incidental.
Where the opportunity sits
The report is not pessimistic. It is honest about the problem, but it also maps the opportunity clearly. Ghana is not going to out-compete Malaysia or Indonesia on price. Those countries have decades of industrial infrastructure, government support, and economies of scale that are not easily replicated. That is not where Ghana’s advantage lies.
The real opportunity is in value addition and regional proximity. Africa’s demand for palm oil is growing. Countries across the continent are net importers. Under the African Continental Free Trade Area agreement, Ghana has a geographical and logistical advantage over Asian suppliers for those markets. The question is whether the country can build the processing and export infrastructure to take that position seriously.
Funding momentum is beginning to align. Development Bank Ghana has committed $500 million to support the agricultural sector, and development finance institutions are increasingly directing resources toward plantation expansion, outgrower schemes, and refinery upgrades. The BFT Online
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June 01, 2026
Indonesia vows transparency as it starts transition to centralised commodity exports
By Reuters
Summary
JAKARTA, June 1 (Reuters) - Indonesia pledged transparency in the state company that will become its sole exporter of important commodities, as a transition period to a centralised export system started on Monday with coal, palm oil and ferroalloys.
President Prabowo Subianto on May 20 announced resource-rich Indonesia would centralise control of exports of all of its strategic commodities through a new state company, Danantara Sumberdaya Indonesia (DSI) , that will be overseen by sovereign wealth fund Danantara.
The policy is aimed at improving tax revenues by tackling under-invoicing and transfer pricing, while also making sure proceeds are kept onshore to bolster U.S. dollar supplies, particularly after the rupiah hit its historic lows multiple times this year.
Danantara's chief operating officer Dony Oskaria told a press conference on Sunday that DSI would operate transparently and accountably, including on the benchmarking of commodity prices during the transition.
"We will ensure that this company will be run transparently and can be monitored by everyone in Indonesia," Oskaria said.
Indonesia is the world's largest exporter of thermal coal, palm oil and nickel, and its exports of these commodities topped $65 billion last year.
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Indonesia Launches Single-Gate Export System for Palm Oil, Coal, and Ferroalloys
Jakarta. Indonesia will officially begin implementing a centralized export system for selected natural resource commodities on June 1 through Danantara Sumberdaya Indonesia (DSI), a newly established state-owned entity designed to improve trade transparency and prevent revenue leakage from exports.
The policy will initially cover three strategic commodities: palm oil, coal, and ferroalloys.
Coordinating Minister for Economic Affairs Airlangga Hartarto said on Sunday that implementation would be carried out in phases, beginning Monday, with full operation targeted by Jan. 1, 2027.
During the transition period, exporters will continue conducting overseas sales independently. However, companies will be required to report all export activities to DSI. Jakarta Globe
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Indonesia Launches June 1 State-Controlled Export Transition as Jakarta Vows No Disruptions to Global Commodity Chains
Key Takeaways
● Indonesia begins its mandatory single-window export transition on June 1, forcing crude palm oil, coal, and ferroalloy producers to route compliance reporting through a new state vehicle.
● The state-owned enterprise PT Danantara Sumberdaya Indonesia will assume total control of all commercial contracts, transaction invoicing, and trade settlements on January 1, 2027.
● The Ministry of Finance is putting the state entity on notice, initiating mandatory three-month performance audits to ensure the centralization immediately drives up corporate tax receipts.
● The parent state fund is aggressively vetting international professionals and building customized digital infrastructure to guard the new system against corruption.
JAKARTA, Investortrust.id — The Indonesian government has locked in Monday, June 1, 2026, as the official start date for its high-stakes single-window resource export policy, kicking off a seven-month transitional runway designed to secure total state control over strategic global commodities without disrupting near-term trade.
Under the rollout plan, multinational exporters of crude palm oil, coal, and ferroalloys can maintain normal day-to-day trade logistics but face an immediate mandate to log all transactions with PT Danantara Sumberdaya Indonesia (DSI), the newly formed operational export arm of the state. This data-gathering phase will run through December 31, 2026, giving global supply chains a brief window to adapt before Jakarta permanently seizes the reins. On January 1, 2027, the transition ends, and DSI will assume absolute control over the entirety of Indonesia's resource trade, executing every stage of commercial activity from initial contract signatures to final multi-billion-dollar trade settlements.
For global commodity traders, industrial buyers, and international funds, this operational transition marks the critical countdown to a state-monopolized resource architecture in Southeast Asia’s largest economy. By allowing a seven-month buffer, Jakarta is consciously trying to avert standard emerging-market execution bottlenecks and keep international capital from panicking. However, once full centralization takes over in 2027, the private sector's direct commercial autonomy will vanish, effectively turning DSI into the ultimate gatekeeper of global palm oil, coal, and metallurgical supplies. Investor Trust
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Government finds 139 CPO mills cutting FFB prices
JAKARTA – The government has identified 139 palm oil mills (PKS) that unilaterally lowered their purchase prices for farmers' fresh fruit bunches (FFB).
The finding has drawn serious attention as it comes at a time when global palm oil prices and demand remain relatively stable.
Deputy Minister of Agriculture Sudaryono stressed that there is no justification for palm oil mills to suppress FFB prices paid to farmers.
The government has called on refineries and exporters to continue conducting trade transactions in accordance with market mechanisms, using reasonable volumes and prices that reflect international market conditions.
"We urge refineries and exporters to continue carrying out trade transactions as they should, with reasonable volumes and prices based on market benchmarks. Since global prices have not fallen and demand has not weakened, there is no reason for farmers' FFB prices to decline," Sudaryono said during a coordination meeting at the Ministry of Agriculture headquarters in Jakarta on Friday (29 May).
Following a meeting with palm oil industry associations on 26 May 2026, 16 palm oil mills have begun readjusting their FFB purchase prices. However, the government believes the improvement must be expanded to ensure farmers once again receive normal market prices.
Sudaryono also dismissed concerns among industry players regarding the planned implementation of a single-gateway export policy through PT Danantara Sumberdaya Indonesia (DSI).
According to him, PT DSI will not generate profits from export activities but will instead act as a manager and supervisor of trade governance to improve transparency and accountability.
The government emphasised that the national palm oil industry will continue to operate normally during the policy transition period. The transition will run from 1 June to 31 August 2026, ahead of the full implementation of the single-gateway export policy on 1 January 2027.
Under the agreement reached with stakeholders, refineries and exporters will remain the primary participants in Indonesia's palm oil trade. IDN Financials
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GAPKI Reveals Palm Big Challenges That Need Urgent Solutions
JAKARTA – The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono revealed a number of critical challenges, which are currently haunting the national palm oil industries.
“Those challenges include surging domestic consumption, the threat of declining CPO exports, and the urgency of legal certainty for the sustainability of palm oil investment in Indonesia,” Eddy Martono said during an exclusive interview with CNBC Indonesia, recently.
Importers growingly worried, Pakistan affected the most
The implementation of the mandatory program of biodiesel 50 percent (B50) has now begun to raise serious concerns among the major importers of palm oil from Indonesia. It has increased domestic palm oil consumption, while threatening to cause a decline of palm exports.
Among the importers, Pakistan is one of the most concerned countries. Their dependence on Indonesian CPO supply is so significant that two Pakistani ministers planned to make a visit to Indonesia to meet with GAPKI and discuss future supply guarantees.
Eddy Martono warned that Indonesia must not ignore the loyalty of these loyal purchasing countries.
“Once they have switched to other vegetable oils, it won’t be easy for Indonesia to recapture that market,” Eddy Martono emphasized.
RI’s palm exports threatened to be replaced by other vegetable oils
One of the biggest threats to the Indonesian palm oil industry is intense competition with other vegetable oils in the global market. When CPO prices become too high or Indonesian supplies decrease, purchasing countries could potentially turn to soybean, sunflower, or rapeseed oil as substitutes.
Although Indonesia remains the world’s largest producer and exporter of palm oil, Eddy emphasized that this dominant position cannot be considered permanent without a solid production strategy and price stability.
The risks of high CPO prices
The increase in domestic biodiesel demand has the potential to push CPO prices above US$ 1,300 per ton. While this may seem advantageous for palm oil farmers in the short term, Eddy Martono warned of negative long-term impacts.
If CPO prices are too high, importing countries could cut imports and switch to alternative vegetable oils. Conversely, if production continues to increase while exports decline, domestic stocks will swell and depress domestic palm oil prices.
“Not only farmers, but companies could also be affected if domestic prices are ultimately depressed,” he said.
GAPKI proposes flexible implementation of Biodiesel
To maintain a balance between national energy need and export interests, GAPKI proposes that the biodiesel mandatory program be made more adaptable to global market dynamics.
When exports increase, the biodiesel blend can be lowered to B40 or B35. Conversely, when domestic energy demand increases, the mandatory blend can be raised back to B50.
Eddy cited the example of Brazil, which successfully implemented a flexible scheme for sugar and ethanol production based on market conditions—a model deemed relevant for Indonesia to adapt.
Replanting Program hindered by forest issues
The replanting program for oil palm smallholders’ plantations (PSR) is touted as a key solution to boosting national palm oil productivity. However, this strategic program still faces a major obstacle: much of the smallholders’ oil palm land remains administratively within forest areas.
As a result, millions of smallholders have not been able to access the replanting assistance fund of Rp 60 million per hectare from the plantation fund management board (BPDP). Eddy Martono urged the government to immediately resolve the issue of overlapping forest areas so that the implementation of PSR program can be optimized and national palm oil production continues to increase.
RI’s palm down-streaming reaches positive results
Amidst various challenges facing the palm oil industries, Eddy Martono expressed positive news: Indonesia’s palm oil down-streaming is showing encouraging progress.
Of Indonesia’s total palm oil exports, which were expected to reach approximately 32 million tons by 2025, the export of crude palm oil (CPO) was only less than 3.0 million tons. The rest are in the forms of downstream products and other palm oil derivatives with higher added values.
The success is inextricably linked to the role of the mandatory biodiesel policy and the implementation of export levies, which have encouraged massive investment in the downstream palm oil sector.
Legal certainty: Key to future of RI’s palm oil industries
Despite the bright prospects for the palm oil industry, Eddy Martono emphasized that the biggest challenges that must be addressed immediately are legal certainty and a conducive business climate.
Issues of overlapping forest areas, unclear extensions of Land Use Rights (HGU), and frequently changing regulations are considered to hinder long-term investment in the palm oil plantation sector.
Without adequate regulatory certainty, companies will be hesitant to invest in oil palm plantation expansion or rejuvenation.
Therefore, GAPKI continues to coordinate intensively with the government—including the Indonesian Ministry of Agriculture—to ensure that various issues in the palm oil industry are quickly resolved. The ultimate goal is to ensure that Indonesia remains a strong leader in the global palm oil industry.
https://gapki.id/en/news/2026/05/17/gapki-reveals-palm-big-challenges-that-need-urgent-solutions/
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Malaysia begins rollout of B15 biodiesel blend to boost energy security and palm oil demand
Kuala Lumpur: Malaysia has begun the gradual implementation of its B15 biodiesel programme across Peninsular Malaysia, marking a new step in the country’s energy transition strategy while creating additional demand for domestically produced palm oil.
Under the new programme, biodiesel will consist of 15 per cent palm oil-based biodiesel, known as Palm Methyl Ester (PME), blended with 85 per cent petroleum diesel. The move replaces the existing B10 blend, which contains 10 per cent PME, The Star reported.
The government views the initiative as part of a broader effort to strengthen energy security, reduce dependence on imported diesel and provide greater support to the palm oil industry amid uncertainty in global energy markets.
The transition to B15 is expected to take place in stages, with authorities emphasising that the higher biodiesel blend can be used in most diesel vehicles without requiring engine modifications.
Deputy Prime Minister Ahmad Zahid Hamidi previously said the government intends to increase biodiesel production gradually before considering further increases in blend rates based on market conditions and industry readiness.
He also highlighted the potential of palm oil industry by-products, including sludge generated during crude palm oil processing, for use in biodiesel and aviation fuel production. According to him, this could help create new value-added opportunities within Malaysia’s commodity sector.
The government has assured industry stakeholders that the rollout will be carefully managed, taking into account palm oil availability, industrial preparedness and supporting infrastructure.
Plantation and Commodities Minister Noraini Ahmad said the B15 programme is expected to consume around 0.8 million tonnes of palm oil annually. She noted that this remains well below Malaysia’s estimated annual domestic palm oil surplus of approximately four million tonnes. Bioenergy Times
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Explainer: Inside Malaysia's B15 move
KUALA LUMPUR: Effective June 1, Malaysia will advance its energy transition by raising the Peninsular biodiesel blend from B10 to B15, a move aimed at easing dependence on imported diesel while giving a bigger role to palm oil in the country's fuel mix.
At its core, the policy means every litre of diesel will now contain 15 per cent palm-based biodiesel (palm methyl ester), up from 10 per cent previously. The rest remains conventional petroleum diesel. The change may appear technical but the impact is felt more in the backdrop of the economy, especially in plantations, refineries and fuel supply chains.
The B15 biodiesel will be produced by 19 licensed plants in an effort to lower diesel prices nationwide.
For Malaysia's palm oil industry, the shift translates into a meaningful lift in domestic demand. Annual usage for biodiesel is expected to rise to about 801,000 tonnes, compared with 534,000 tonnes under the B10 programme.
That basicially means that the additional uptake will provide a steady local market for crude palm oil (CPO) and support smallholders, even as overall supply remains comfortable at a surplus estimated at around four million tonnes.
Officials say the rollout will be phased to avoid price distortions in crude palm oil and to ensure producers can adjust smoothly. Importantly, the higher domestic usage is not expected to affect Malaysia's export flows, which stand at roughly 16 million tonnes a year. NST
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Malaysia unlikely to lose edge despite Indonesia FTA head start
KUALA LUMPUR: Indonesia's move to finalise a free trade agreement (FTA) with the European Union (EU) could sharpen price competition for Malaysian palm oil exports, but analysts say Malaysia is unlikely to lose its competitive edge in the global market.
Indonesia, the world's largest palm oil exporter, concluded negotiations with the EU on Sept 23 last year. The deal is undergoing legal review and ratification, with entry into force targeted for Jan 1 next year.
In contrast, Malaysia has made slower progress in its FTA talks with the EU, completing only the third round of negotiations in February this year.
The fourth round resumes this month.
Indonesia's palm oil exports were estimated at 23.6 million tonnes in 2025, generating US$24.4 billion.
Malaysia, the second-largest exporter, shipped 17.3 million tonnes of palm oil last year.
While smaller in volume compared with Indonesia, Malaysia maintains a strong position in higher-value segments, particularly certified and refined palm oil products.
Export earnings were estimated at about RM120 billion.
STRATEGIC MEASURES
Consulting firm ESG in Malaysia executive director Dr Harald Sippel told Business Times: "While there is a first-mover advantage, the situation is more nuanced than it appears at first glance."
Malaysia still has room to respond with its own strategic countermeasures, he added.
He said Indonesia's concluded Comprehensive Economic Partnership Agreement gives it an early platform in working with the EU on sustainability and compliance requirements under the EU Deforestation Regulation (EUDR), which now plays a bigger role than tariffs in determining palm oil market access.
"That said, Malaysia has been pursuing what I would describe as a parallel regulatory diplomacy track that the FTA timeline debate almost entirely misses.
"In September 2025, ahead of its own FTA conclusion, Malaysia secured recognition of its Malaysian Sustainable Palm Oil (MSPO) certification in a joint statement with the EU.
"This is significant because EUDR compliance hinges not just on tariffs but on whether a country's domestic certification scheme is recognised as credible.
"Malaysia moved on that front independently of its FTA timeline."
Sippel said Malaysia also concluded an economic partnership agreement with the European Free Trade Association (EFTA) states in June 2025, which includes a joint statement on palm oil.
He added that while the EFTA deal is not equivalent to an EU FTA, it helps establish frameworks and precedents that could support future FTA negotiations with the union. NST
Indonesia vows transparency as it starts transition to centralised commodity exports
By Reuters
Summary
- DSI pledges transparent operations, communications with private sector, Danantara says
- Transition period to centralised exports will last at least three months, full rollout by 2027
- Policy aims to curb tax avoidance and boost onshore U.S. dollar supply after rupiah weakness
JAKARTA, June 1 (Reuters) - Indonesia pledged transparency in the state company that will become its sole exporter of important commodities, as a transition period to a centralised export system started on Monday with coal, palm oil and ferroalloys.
President Prabowo Subianto on May 20 announced resource-rich Indonesia would centralise control of exports of all of its strategic commodities through a new state company, Danantara Sumberdaya Indonesia (DSI) , that will be overseen by sovereign wealth fund Danantara.
The policy is aimed at improving tax revenues by tackling under-invoicing and transfer pricing, while also making sure proceeds are kept onshore to bolster U.S. dollar supplies, particularly after the rupiah hit its historic lows multiple times this year.
Danantara's chief operating officer Dony Oskaria told a press conference on Sunday that DSI would operate transparently and accountably, including on the benchmarking of commodity prices during the transition.
"We will ensure that this company will be run transparently and can be monitored by everyone in Indonesia," Oskaria said.
Indonesia is the world's largest exporter of thermal coal, palm oil and nickel, and its exports of these commodities topped $65 billion last year.
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Indonesia Launches Single-Gate Export System for Palm Oil, Coal, and Ferroalloys
Jakarta. Indonesia will officially begin implementing a centralized export system for selected natural resource commodities on June 1 through Danantara Sumberdaya Indonesia (DSI), a newly established state-owned entity designed to improve trade transparency and prevent revenue leakage from exports.
The policy will initially cover three strategic commodities: palm oil, coal, and ferroalloys.
Coordinating Minister for Economic Affairs Airlangga Hartarto said on Sunday that implementation would be carried out in phases, beginning Monday, with full operation targeted by Jan. 1, 2027.
During the transition period, exporters will continue conducting overseas sales independently. However, companies will be required to report all export activities to DSI. Jakarta Globe
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Indonesia Launches June 1 State-Controlled Export Transition as Jakarta Vows No Disruptions to Global Commodity Chains
Key Takeaways
● Indonesia begins its mandatory single-window export transition on June 1, forcing crude palm oil, coal, and ferroalloy producers to route compliance reporting through a new state vehicle.
● The state-owned enterprise PT Danantara Sumberdaya Indonesia will assume total control of all commercial contracts, transaction invoicing, and trade settlements on January 1, 2027.
● The Ministry of Finance is putting the state entity on notice, initiating mandatory three-month performance audits to ensure the centralization immediately drives up corporate tax receipts.
● The parent state fund is aggressively vetting international professionals and building customized digital infrastructure to guard the new system against corruption.
JAKARTA, Investortrust.id — The Indonesian government has locked in Monday, June 1, 2026, as the official start date for its high-stakes single-window resource export policy, kicking off a seven-month transitional runway designed to secure total state control over strategic global commodities without disrupting near-term trade.
Under the rollout plan, multinational exporters of crude palm oil, coal, and ferroalloys can maintain normal day-to-day trade logistics but face an immediate mandate to log all transactions with PT Danantara Sumberdaya Indonesia (DSI), the newly formed operational export arm of the state. This data-gathering phase will run through December 31, 2026, giving global supply chains a brief window to adapt before Jakarta permanently seizes the reins. On January 1, 2027, the transition ends, and DSI will assume absolute control over the entirety of Indonesia's resource trade, executing every stage of commercial activity from initial contract signatures to final multi-billion-dollar trade settlements.
For global commodity traders, industrial buyers, and international funds, this operational transition marks the critical countdown to a state-monopolized resource architecture in Southeast Asia’s largest economy. By allowing a seven-month buffer, Jakarta is consciously trying to avert standard emerging-market execution bottlenecks and keep international capital from panicking. However, once full centralization takes over in 2027, the private sector's direct commercial autonomy will vanish, effectively turning DSI into the ultimate gatekeeper of global palm oil, coal, and metallurgical supplies. Investor Trust
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Government finds 139 CPO mills cutting FFB prices
JAKARTA – The government has identified 139 palm oil mills (PKS) that unilaterally lowered their purchase prices for farmers' fresh fruit bunches (FFB).
The finding has drawn serious attention as it comes at a time when global palm oil prices and demand remain relatively stable.
Deputy Minister of Agriculture Sudaryono stressed that there is no justification for palm oil mills to suppress FFB prices paid to farmers.
The government has called on refineries and exporters to continue conducting trade transactions in accordance with market mechanisms, using reasonable volumes and prices that reflect international market conditions.
"We urge refineries and exporters to continue carrying out trade transactions as they should, with reasonable volumes and prices based on market benchmarks. Since global prices have not fallen and demand has not weakened, there is no reason for farmers' FFB prices to decline," Sudaryono said during a coordination meeting at the Ministry of Agriculture headquarters in Jakarta on Friday (29 May).
Following a meeting with palm oil industry associations on 26 May 2026, 16 palm oil mills have begun readjusting their FFB purchase prices. However, the government believes the improvement must be expanded to ensure farmers once again receive normal market prices.
Sudaryono also dismissed concerns among industry players regarding the planned implementation of a single-gateway export policy through PT Danantara Sumberdaya Indonesia (DSI).
According to him, PT DSI will not generate profits from export activities but will instead act as a manager and supervisor of trade governance to improve transparency and accountability.
The government emphasised that the national palm oil industry will continue to operate normally during the policy transition period. The transition will run from 1 June to 31 August 2026, ahead of the full implementation of the single-gateway export policy on 1 January 2027.
Under the agreement reached with stakeholders, refineries and exporters will remain the primary participants in Indonesia's palm oil trade. IDN Financials
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GAPKI Reveals Palm Big Challenges That Need Urgent Solutions
JAKARTA – The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono revealed a number of critical challenges, which are currently haunting the national palm oil industries.
“Those challenges include surging domestic consumption, the threat of declining CPO exports, and the urgency of legal certainty for the sustainability of palm oil investment in Indonesia,” Eddy Martono said during an exclusive interview with CNBC Indonesia, recently.
Importers growingly worried, Pakistan affected the most
The implementation of the mandatory program of biodiesel 50 percent (B50) has now begun to raise serious concerns among the major importers of palm oil from Indonesia. It has increased domestic palm oil consumption, while threatening to cause a decline of palm exports.
Among the importers, Pakistan is one of the most concerned countries. Their dependence on Indonesian CPO supply is so significant that two Pakistani ministers planned to make a visit to Indonesia to meet with GAPKI and discuss future supply guarantees.
Eddy Martono warned that Indonesia must not ignore the loyalty of these loyal purchasing countries.
“Once they have switched to other vegetable oils, it won’t be easy for Indonesia to recapture that market,” Eddy Martono emphasized.
RI’s palm exports threatened to be replaced by other vegetable oils
One of the biggest threats to the Indonesian palm oil industry is intense competition with other vegetable oils in the global market. When CPO prices become too high or Indonesian supplies decrease, purchasing countries could potentially turn to soybean, sunflower, or rapeseed oil as substitutes.
Although Indonesia remains the world’s largest producer and exporter of palm oil, Eddy emphasized that this dominant position cannot be considered permanent without a solid production strategy and price stability.
The risks of high CPO prices
The increase in domestic biodiesel demand has the potential to push CPO prices above US$ 1,300 per ton. While this may seem advantageous for palm oil farmers in the short term, Eddy Martono warned of negative long-term impacts.
If CPO prices are too high, importing countries could cut imports and switch to alternative vegetable oils. Conversely, if production continues to increase while exports decline, domestic stocks will swell and depress domestic palm oil prices.
“Not only farmers, but companies could also be affected if domestic prices are ultimately depressed,” he said.
GAPKI proposes flexible implementation of Biodiesel
To maintain a balance between national energy need and export interests, GAPKI proposes that the biodiesel mandatory program be made more adaptable to global market dynamics.
When exports increase, the biodiesel blend can be lowered to B40 or B35. Conversely, when domestic energy demand increases, the mandatory blend can be raised back to B50.
Eddy cited the example of Brazil, which successfully implemented a flexible scheme for sugar and ethanol production based on market conditions—a model deemed relevant for Indonesia to adapt.
Replanting Program hindered by forest issues
The replanting program for oil palm smallholders’ plantations (PSR) is touted as a key solution to boosting national palm oil productivity. However, this strategic program still faces a major obstacle: much of the smallholders’ oil palm land remains administratively within forest areas.
As a result, millions of smallholders have not been able to access the replanting assistance fund of Rp 60 million per hectare from the plantation fund management board (BPDP). Eddy Martono urged the government to immediately resolve the issue of overlapping forest areas so that the implementation of PSR program can be optimized and national palm oil production continues to increase.
RI’s palm down-streaming reaches positive results
Amidst various challenges facing the palm oil industries, Eddy Martono expressed positive news: Indonesia’s palm oil down-streaming is showing encouraging progress.
Of Indonesia’s total palm oil exports, which were expected to reach approximately 32 million tons by 2025, the export of crude palm oil (CPO) was only less than 3.0 million tons. The rest are in the forms of downstream products and other palm oil derivatives with higher added values.
The success is inextricably linked to the role of the mandatory biodiesel policy and the implementation of export levies, which have encouraged massive investment in the downstream palm oil sector.
Legal certainty: Key to future of RI’s palm oil industries
Despite the bright prospects for the palm oil industry, Eddy Martono emphasized that the biggest challenges that must be addressed immediately are legal certainty and a conducive business climate.
Issues of overlapping forest areas, unclear extensions of Land Use Rights (HGU), and frequently changing regulations are considered to hinder long-term investment in the palm oil plantation sector.
Without adequate regulatory certainty, companies will be hesitant to invest in oil palm plantation expansion or rejuvenation.
Therefore, GAPKI continues to coordinate intensively with the government—including the Indonesian Ministry of Agriculture—to ensure that various issues in the palm oil industry are quickly resolved. The ultimate goal is to ensure that Indonesia remains a strong leader in the global palm oil industry.
https://gapki.id/en/news/2026/05/17/gapki-reveals-palm-big-challenges-that-need-urgent-solutions/
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Malaysia begins rollout of B15 biodiesel blend to boost energy security and palm oil demand
Kuala Lumpur: Malaysia has begun the gradual implementation of its B15 biodiesel programme across Peninsular Malaysia, marking a new step in the country’s energy transition strategy while creating additional demand for domestically produced palm oil.
Under the new programme, biodiesel will consist of 15 per cent palm oil-based biodiesel, known as Palm Methyl Ester (PME), blended with 85 per cent petroleum diesel. The move replaces the existing B10 blend, which contains 10 per cent PME, The Star reported.
The government views the initiative as part of a broader effort to strengthen energy security, reduce dependence on imported diesel and provide greater support to the palm oil industry amid uncertainty in global energy markets.
The transition to B15 is expected to take place in stages, with authorities emphasising that the higher biodiesel blend can be used in most diesel vehicles without requiring engine modifications.
Deputy Prime Minister Ahmad Zahid Hamidi previously said the government intends to increase biodiesel production gradually before considering further increases in blend rates based on market conditions and industry readiness.
He also highlighted the potential of palm oil industry by-products, including sludge generated during crude palm oil processing, for use in biodiesel and aviation fuel production. According to him, this could help create new value-added opportunities within Malaysia’s commodity sector.
The government has assured industry stakeholders that the rollout will be carefully managed, taking into account palm oil availability, industrial preparedness and supporting infrastructure.
Plantation and Commodities Minister Noraini Ahmad said the B15 programme is expected to consume around 0.8 million tonnes of palm oil annually. She noted that this remains well below Malaysia’s estimated annual domestic palm oil surplus of approximately four million tonnes. Bioenergy Times
--------
Explainer: Inside Malaysia's B15 move
KUALA LUMPUR: Effective June 1, Malaysia will advance its energy transition by raising the Peninsular biodiesel blend from B10 to B15, a move aimed at easing dependence on imported diesel while giving a bigger role to palm oil in the country's fuel mix.
At its core, the policy means every litre of diesel will now contain 15 per cent palm-based biodiesel (palm methyl ester), up from 10 per cent previously. The rest remains conventional petroleum diesel. The change may appear technical but the impact is felt more in the backdrop of the economy, especially in plantations, refineries and fuel supply chains.
The B15 biodiesel will be produced by 19 licensed plants in an effort to lower diesel prices nationwide.
For Malaysia's palm oil industry, the shift translates into a meaningful lift in domestic demand. Annual usage for biodiesel is expected to rise to about 801,000 tonnes, compared with 534,000 tonnes under the B10 programme.
That basicially means that the additional uptake will provide a steady local market for crude palm oil (CPO) and support smallholders, even as overall supply remains comfortable at a surplus estimated at around four million tonnes.
Officials say the rollout will be phased to avoid price distortions in crude palm oil and to ensure producers can adjust smoothly. Importantly, the higher domestic usage is not expected to affect Malaysia's export flows, which stand at roughly 16 million tonnes a year. NST
--------
Malaysia unlikely to lose edge despite Indonesia FTA head start
KUALA LUMPUR: Indonesia's move to finalise a free trade agreement (FTA) with the European Union (EU) could sharpen price competition for Malaysian palm oil exports, but analysts say Malaysia is unlikely to lose its competitive edge in the global market.
Indonesia, the world's largest palm oil exporter, concluded negotiations with the EU on Sept 23 last year. The deal is undergoing legal review and ratification, with entry into force targeted for Jan 1 next year.
In contrast, Malaysia has made slower progress in its FTA talks with the EU, completing only the third round of negotiations in February this year.
The fourth round resumes this month.
Indonesia's palm oil exports were estimated at 23.6 million tonnes in 2025, generating US$24.4 billion.
Malaysia, the second-largest exporter, shipped 17.3 million tonnes of palm oil last year.
While smaller in volume compared with Indonesia, Malaysia maintains a strong position in higher-value segments, particularly certified and refined palm oil products.
Export earnings were estimated at about RM120 billion.
STRATEGIC MEASURES
Consulting firm ESG in Malaysia executive director Dr Harald Sippel told Business Times: "While there is a first-mover advantage, the situation is more nuanced than it appears at first glance."
Malaysia still has room to respond with its own strategic countermeasures, he added.
He said Indonesia's concluded Comprehensive Economic Partnership Agreement gives it an early platform in working with the EU on sustainability and compliance requirements under the EU Deforestation Regulation (EUDR), which now plays a bigger role than tariffs in determining palm oil market access.
"That said, Malaysia has been pursuing what I would describe as a parallel regulatory diplomacy track that the FTA timeline debate almost entirely misses.
"In September 2025, ahead of its own FTA conclusion, Malaysia secured recognition of its Malaysian Sustainable Palm Oil (MSPO) certification in a joint statement with the EU.
"This is significant because EUDR compliance hinges not just on tariffs but on whether a country's domestic certification scheme is recognised as credible.
"Malaysia moved on that front independently of its FTA timeline."
Sippel said Malaysia also concluded an economic partnership agreement with the European Free Trade Association (EFTA) states in June 2025, which includes a joint statement on palm oil.
He added that while the EFTA deal is not equivalent to an EU FTA, it helps establish frameworks and precedents that could support future FTA negotiations with the union. NST
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