Palm oil news. March 2026
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March 31, 2026
IPB University Creates EC+ To Solve POME-Related Problems
BOGOR – Bogor University of Agriculture (IPB University) has once again presented an innovation to support the sustainability of Indonesian palm oil industries. This time, the innovation comes from Professor Suprihatin, a lecturer of the faculty of agricultural industrial engineering of the IPB University.
The innovation was made in response to the rapid development of palm oil mills (PKS) in Indonesia, which have given significant economic contributions but also caused serious environmental problems, particularly from palm oil mill effluent (POME).
According to Prof. Suprihatin, each ton of fresh fruit bunches (FFB) can produce approximately 0.75–0.90 m³ of liquid waste, equivalent to 3.33 m³ per ton of crude palm oil (CPO). This waste contains various pollutants such as suspended solids (TSS), organic matter, oils and fats, and nutrients that have the potential to pollute the environment.
“Currently, palm oil mill effluent has been generally treated by using conventional anaerobic-aerobic pond systems. However, this approach still has limitations in terms of effectiveness and efficiency,” said Prof. Suprihatin.
As a solution, he developed the EC+ process, an advanced processing technology based on electrochemistry (electrocoagulation). The innovation has been selected as one of the 117 Indonesian Innovations in 2025 by the Business Innovation Center.
Simply put, the process is based on direct current to release positive ions (Al³⁺) from the anode electrode. These ions destabilize colloidal particles and form Al (OH) flocs that bind contaminants in liquid waste.
“The process effectively removes TSS, COD, BOD, color, oil/grease, and even nutrients such as phosphate. The wastewater can be clean and suitable for reuse. The advantages of EC+ are not only in its technical performance, but also in environmental and economic aspects,” he said.
According to him, the process does not require additional chemicals such as alum, making it more environmentally friendly and costing approximately 50 percent less than chemical coagulation methods. Its electricity consumption is also relatively calculated at around 9.80 kWh per cubic meter of waste.
“The process is fast, can be designed modularly, operated continuously or in batches, and is easy to scale up. The resulting sludge can even be used as organic fertilizer or soil improver,” said Prof. Suprihatin.
Furthermore, Prof. Suprihatin emphasized that EC+ plays a crucial role in supporting the concept of circular economy in the palm oil industries. The treated water can be reused for washing equipment and factory floors, as well as for watering plants. The resulting sludge can be combined with biochar from empty fruit bunch pyrolysis to enrich soil nutrients.
“The EC+ process can be a key component in establishing a closed water and nutrient cycle, reducing the use of synthetic fertilizer inputs, and supporting the realization of the zero-waste concept in the palm oil industry,” he added.
He expressed the hope that the innovation can provide a technological solution, which does not only solve the waste problem but also create added value and improve the sustainability of the palm oil industry as the national strategic industry in Indonesia. GAPKI
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MPOB launches UCO price portal to boost circular economy
The Malaysian Palm Oil Board (MPOB) has launched a used cooking oil (UCO) price portal to boost the domestic circular economy.
Offered as a free service for all stakeholders, the UCO price portal would ensure transparency and facilitate the buying and selling of UCO, MPOB on 20 March.
The organisation said the launch of the portal was part of the government’s drive to enhance market transparency, strengthen the price discovery mechanism and reduce uncertainty within the oil palm industry value chain in Malaysia.
MPOB director general Dr Ahmad Parveez Ghulam Kadir said by providing a clearer and reliable price benchmark, the UCO reference price supported the development of a more transparent and inclusive UCO supply chain.
“This initiative not only strengthens the integrity of the domestic UCO market but also aligns with the government’s aspirations in driving the circular economy, with the benefit of used cooking oil as a high-value raw material,” he said.
Kadir added that the supply of UCO was gaining increased global attention as a key raw material resource in the production of sustainable energy products such as biodiesel and sustainable aviation fuel (SAF), alongside a range of oleochemical products.
“Globally, the demand for SAF is expected to increase significantly, driven by the international aviation industry’s commitment to achieving net-zero carbon emissions by 2050,” he added.
According to industry projections, SAF demand could increase by more than three to five times by 2030, increasing the need for raw materials like UCO as a sustainable low-carbon source.
Malaysia had huge potential in UCO supply due to the high consumption of palm cooking oil in the household and food service sectors, such as catering businesses and fried food vendors, MPOB said. OFI International
IPB University Creates EC+ To Solve POME-Related Problems
BOGOR – Bogor University of Agriculture (IPB University) has once again presented an innovation to support the sustainability of Indonesian palm oil industries. This time, the innovation comes from Professor Suprihatin, a lecturer of the faculty of agricultural industrial engineering of the IPB University.
The innovation was made in response to the rapid development of palm oil mills (PKS) in Indonesia, which have given significant economic contributions but also caused serious environmental problems, particularly from palm oil mill effluent (POME).
According to Prof. Suprihatin, each ton of fresh fruit bunches (FFB) can produce approximately 0.75–0.90 m³ of liquid waste, equivalent to 3.33 m³ per ton of crude palm oil (CPO). This waste contains various pollutants such as suspended solids (TSS), organic matter, oils and fats, and nutrients that have the potential to pollute the environment.
“Currently, palm oil mill effluent has been generally treated by using conventional anaerobic-aerobic pond systems. However, this approach still has limitations in terms of effectiveness and efficiency,” said Prof. Suprihatin.
As a solution, he developed the EC+ process, an advanced processing technology based on electrochemistry (electrocoagulation). The innovation has been selected as one of the 117 Indonesian Innovations in 2025 by the Business Innovation Center.
Simply put, the process is based on direct current to release positive ions (Al³⁺) from the anode electrode. These ions destabilize colloidal particles and form Al (OH) flocs that bind contaminants in liquid waste.
“The process effectively removes TSS, COD, BOD, color, oil/grease, and even nutrients such as phosphate. The wastewater can be clean and suitable for reuse. The advantages of EC+ are not only in its technical performance, but also in environmental and economic aspects,” he said.
According to him, the process does not require additional chemicals such as alum, making it more environmentally friendly and costing approximately 50 percent less than chemical coagulation methods. Its electricity consumption is also relatively calculated at around 9.80 kWh per cubic meter of waste.
“The process is fast, can be designed modularly, operated continuously or in batches, and is easy to scale up. The resulting sludge can even be used as organic fertilizer or soil improver,” said Prof. Suprihatin.
Furthermore, Prof. Suprihatin emphasized that EC+ plays a crucial role in supporting the concept of circular economy in the palm oil industries. The treated water can be reused for washing equipment and factory floors, as well as for watering plants. The resulting sludge can be combined with biochar from empty fruit bunch pyrolysis to enrich soil nutrients.
“The EC+ process can be a key component in establishing a closed water and nutrient cycle, reducing the use of synthetic fertilizer inputs, and supporting the realization of the zero-waste concept in the palm oil industry,” he added.
He expressed the hope that the innovation can provide a technological solution, which does not only solve the waste problem but also create added value and improve the sustainability of the palm oil industry as the national strategic industry in Indonesia. GAPKI
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MPOB launches UCO price portal to boost circular economy
The Malaysian Palm Oil Board (MPOB) has launched a used cooking oil (UCO) price portal to boost the domestic circular economy.
Offered as a free service for all stakeholders, the UCO price portal would ensure transparency and facilitate the buying and selling of UCO, MPOB on 20 March.
The organisation said the launch of the portal was part of the government’s drive to enhance market transparency, strengthen the price discovery mechanism and reduce uncertainty within the oil palm industry value chain in Malaysia.
MPOB director general Dr Ahmad Parveez Ghulam Kadir said by providing a clearer and reliable price benchmark, the UCO reference price supported the development of a more transparent and inclusive UCO supply chain.
“This initiative not only strengthens the integrity of the domestic UCO market but also aligns with the government’s aspirations in driving the circular economy, with the benefit of used cooking oil as a high-value raw material,” he said.
Kadir added that the supply of UCO was gaining increased global attention as a key raw material resource in the production of sustainable energy products such as biodiesel and sustainable aviation fuel (SAF), alongside a range of oleochemical products.
“Globally, the demand for SAF is expected to increase significantly, driven by the international aviation industry’s commitment to achieving net-zero carbon emissions by 2050,” he added.
According to industry projections, SAF demand could increase by more than three to five times by 2030, increasing the need for raw materials like UCO as a sustainable low-carbon source.
Malaysia had huge potential in UCO supply due to the high consumption of palm cooking oil in the household and food service sectors, such as catering businesses and fried food vendors, MPOB said. OFI International
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March 30, 2026
Indonesia to go ahead with B50 biodiesel mix this year, president says
By Reuters
JAKARTA, March 30 (Reuters) - Indonesia's President Prabowo Subianto said on Monday during an official visit to Japan that the Southeast Asian country will go ahead this year with its B50 palm oil-based biodiesel programme.
"We are going in a big way to biofuel," he said at a business forum ahead of his meeting with Japanese Prime Minister Sanae Takaichi.
"We will produce this year diesel oil from palm oil and now we are increasing from 40% to 50%."
In January, authorities scrapped a plan to launch B50 - a blend of 50% palm oil-based biodiesel and 50% conventional diesel - this year due to technical and funding concerns, instead sticking with the B40 blend.
But there have been talks to revive the plan in the light of the energy supply disruptions brought about by the U.S.-Israeli war on Iran.
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Indonesia Tells Japan Its B50 Palm Oil Fuel Rule Starts This Year
Jakarta. President Prabowo Subianto, who is now on a Tokyo trip, wants Indonesia to implement the mandatory B50-grade of its palm oil-based biodiesel, as the month-long Iran war stress-tests the world’s energy resilience.
Prabowo is on his first ever state visit to Tokyo. The retired army general kicked off his trip by meeting Japanese Emperor Naruhito and attending a business forum as Jakarta sought to bring home fresh commercial deals. In a televised speech, Prabowo briefed the Japanese investors on his energy directives, including plans to hike the palm oil content in its biodiesel.
“The geopolitical situation in the Middle East gives strategic uncertainty for the security of our energy," Prabowo said.
“We [Indonesia] are going in a big way to biofuel. We will produce this year diesel from palm oil. We are now increasing from 40% to 50% of our diesel from palm oil.”
The B50 policy means Indonesia will implement a blend of 50% palm-oil biodiesel, with the other half sourced from conventional diesel. A B40 mandate — indicating a 40% palm oil mixture — has been in place over the past year, and even helped Southeast Asia’s biggest economy to save Rp 130.2 trillion (approximately $7.7 billion) in foreign exchange throughout 2025.
Indonesia has been eyeing plans to raise the blend after the Strait of Hormuz blockade takes a toll on global energy shipments. Iran — a country now at war with Israel and the US — has a stranglehold on the waterway that controls a quarter of the world’s seaborne oil trade. The Indonesian government even floated a plan to launch biodiesel with 60% palm oil blending rate when push comes to shove.
The plan has rattled producers as they worry whether they can keep up with the biodiesel mandate without sacrificing exports. The Indonesian Palm Oil Association (Gapki) said the country would have to increase production beyond the current volume as output remains stagnant. Higher production should enable Jakarta to steer clear of sacrificing its foreign clients for local supply. To this day, Indonesia largely banks on palm oil export levies to run the biodiesel program.
“Our production is stagnant. Forcing [a higher biodiesel mix] will only undermine our export. The only solution is to boost output by improving productivity,” Gapki chair Eddy Martono recently told the press.
The tests for the B50 program are slated for completion in the second half of 2026.
Japan is one of Indonesia’s palm oil buyers, although it mainly orders from Malaysia. In January 2026, Japan's palm oil imports from Indonesia totaled 701 million yen or almost $4.4 million. Malaysia’s Japan-bound palm oil exports totaled 9.7 billion yen ($60.7 million) in value that month, according to the Observatory of Economic Complexity.
Prabowo is expected to meet Japanese Prime Minister Sanae Takaichi soon.
His talks with Naruhito also revolved around energy issues, according to the Cabinet Secretariat while offering little details on the meeting. Jakarta Globe
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Diesel prices up? Time to leverage Malaysia’s palm oil as biodiesel savings could hit 20 sen per litre, says former minister
KUALA LUMPUR, March 29 — B20 biodiesel is now cheaper than pure diesel, and the government must fast-track critical depot upgrades to accelerate its rollout and ease surging fuel costs, says Seputeh MP Teresa Kok.
In a press statement, the former primary industries minister said palm-based biodiesel has become a more cost-effective alternative to fossil diesel and urged Putrajaya to urgently help the petroleum industry scale up B10 and B20 blending.
“We must treat palm oil as a strategic national asset,” she said.
“By failing to upgrade our depots, the government is forcing the rakyat to pay more at the pump while leaving our ‘golden crop’ underutilised,” she added
Citing market data as at March 27, 2026, Kok said palm methyl ester (PME) biodiesel is currently trading below international Euro 5 diesel prices.
Based on crude palm oil at RM4,500 per tonne and Euro 5 diesel at US$220 per barrel, she said a comparison of pure diesel and biodiesel blends shows the following indicative pump prices:
“It is deeply regrettable that the government has allowed the B20 programme to stall,” Kok said.
“Since its official launch in February 2020 by myself and then deputy prime minister Datuk Seri Dr Wan Azizah Wan Ismail, infrastructure development has been severely neglected.”
She said that while B20 has been rolled out in parts of Sarawak, Bintulu still lacks sufficient blending capacity, and several depots in Sandakan, Tawau and Kota Kinabalu in Sabah are awaiting upgrades.
In Peninsular Malaysia, she added, the situation is even more limited, with Langkawi among the earliest and few locations to offer B20 to consumers.
With conflict in the Middle East keeping global oil markets volatile, Kok said Malaysia can no longer afford to “brush aside” domestic energy solutions like palm-based biodiesel.
She called on the government to direct the Finance Ministry to immediately approve and expedite upgrades for 35 petroleum depots nationwide, provide incentives for the distribution and use of B10 and B20 blends, and complete stalled B20 infrastructure projects in Sarawak, Sabah and the peninsula Malay Mail
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Thai Government Ramps Up B20 Biodiesel Supply to Tackle Rising Transport Costs
B20, a blend of diesel with 20% palm oil-derived methyl ester, is being positioned as a cost-effective alternative amid global crude price volatility.
The relaunch comes as diesel prices climb sharply amid the Middle East conflict. B20 is cheaper than B5, the more widely used biodiesel containing 5% methyl ester, by 5 baht per litre.
The two companies would not disclose how much subsidy the government is offering for B20.
The administration's renewed push for biodiesel coincided with its announcement of a 6-baht per litre increase in gasoline and diesel prices, citing limited subsidy funds. The Oil Fuel Fund, which subsidises fuel prices, reported a deficit of 28.1 billion baht as of March 22, underscoring the urgency of finding cheaper alternatives.
https://www.bangkokpost.com/business/general/3226793/bangchak-or-resume-b20-sales-to-reduce-fuel-costs. View our policies at http://goo.gl/9HgTd and http://goo.gl/ou6Ip. © Bangkok Post PCL. All rights reserved.
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Wasco Berhad Stock: Engineering Firm Powers Malaysia's Energy Transition with Renewable Focus
Wasco Berhad (ISIN: MYL5142OO004), listed on Bursa Malaysia, leads in engineering procurement and construction for cleaner energy systems, serving palm oil and industrial sectors amid Southeast Asia's green push. North American investors eye its growth in renewables for portfolio diversification.
Wasco Berhad stands as a key player in Malaysia's energy infrastructure sector, specializing in engineering, procurement, construction, and commissioning (EPCC) services for renewable and cleaner energy systems. The company, listed on Bursa Malaysia's Main Board under its subsidiary Wasco Greenergy Berhad (stock code 5343), focuses on sustainable solutions that align with global energy transition trends. Investors tracking emerging markets may find its niche in palm oil industry steam systems and auxiliary facilities particularly relevant. Ad hoc news
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Malaysia Leads South South Partnerships In Palm Oil
Malaysia’s investment and expertise in palm oil and rubber are driving a new era of Global South cooperation, with young voices and sustainable practices shaping the industry’s future.
n March 29, 2026, Prime Minister Datuk Seri Anwar Ibrahim declared that the Global South is reclaiming a voice that can no longer be ignored in the shifting international order. But what does that actually mean in practice? For Malaysia, the answer may lie not in diplomatic speeches or lofty slogans, but in the gritty, hands-on work of building real partnerships—especially in the palm oil and rubber sectors, where Malaysia has long been a global powerhouse. Recent developments suggest that the nation is not content to remain a spectator as the world’s economic landscape is remade from the ground up.
According to the New Straits Times, Malaysia’s evolving approach is best understood through the prism of South-South cooperation—an idea that’s gaining traction as traditional global systems falter. Rather than relying on the old model, where the Global North reaped the lion’s share of value from the South’s raw materials, Malaysia is helping to forge new, more equitable ties among developing nations. The story of Guan Chong, a Malaysian cocoa giant, is a case in point. By investing in cocoa grinding capacity in San Pedro, Ivory Coast, Guan Chong has done more than expand its own reach. It has shifted value-added activities closer to the source, creating jobs, building technical expertise, and giving Ivory Coast a larger stake in the global cocoa market. As the New Straits Times put it,“That is not charity. It is not extraction. It is smart industrial partnership.”
This template is being eyed for broader application, especially in the palm oil and rubber sectors. There’s a historical irony here: oil palm is native to West Africa, and back in the 1960s, both Malaysia and Ivory Coast were on roughly equal footing in terms of palm oil production. Fast forward to today, and Malaysia produces a staggering 40 times more output than Ivory Coast. The difference, according to experts, wasn’t geography—it was the institutions, research, and industrial ecosystem Malaysia built over decades.
In 2024, Malaysia’s palm oil sector contributed RM114 billion in export value and made up 2.3% of the country’s GDP. The nation isn’t just a top producer; it leads the world in certified sustainable palm oil, with deep expertise spanning planting materials, estate management, milling, refining, logistics, and downstream processing. But the industry faces headwinds at home: land constraints, an aging estate base, labor shortages, and rising costs are all putting the squeeze on growth.
That’s where West Africa comes in. The region offers something Malaysia increasingly lacks—room to expand, ecological suitability, and access to fast-growing markets. Yet, as the New Straits Times notes, the goal isn’t to replicate the old colonial model of land acquisition and raw export. Instead, Malaysia’s real advantage lies in exporting its institutional know-how: the systems, research, and support networks that transformed palm oil from a basic crop into a pillar of the national economy.
“Our real advantage is not just capital. It is the ability to build systems,” the article argues. Malaysian firms have a chance to help West African countries like Ivory Coast develop the missing pieces of their agricultural sectors—better seedlings, agronomic support, aggregation systems, milling, refining, and downstream industries. The Felda era in Malaysia showed that when smallholders are properly supported, productivity rises and rural communities thrive. That’s the lesson Malaysia hopes to export. Evrimagaci
Indonesia to go ahead with B50 biodiesel mix this year, president says
By Reuters
JAKARTA, March 30 (Reuters) - Indonesia's President Prabowo Subianto said on Monday during an official visit to Japan that the Southeast Asian country will go ahead this year with its B50 palm oil-based biodiesel programme.
"We are going in a big way to biofuel," he said at a business forum ahead of his meeting with Japanese Prime Minister Sanae Takaichi.
"We will produce this year diesel oil from palm oil and now we are increasing from 40% to 50%."
In January, authorities scrapped a plan to launch B50 - a blend of 50% palm oil-based biodiesel and 50% conventional diesel - this year due to technical and funding concerns, instead sticking with the B40 blend.
But there have been talks to revive the plan in the light of the energy supply disruptions brought about by the U.S.-Israeli war on Iran.
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Indonesia Tells Japan Its B50 Palm Oil Fuel Rule Starts This Year
Jakarta. President Prabowo Subianto, who is now on a Tokyo trip, wants Indonesia to implement the mandatory B50-grade of its palm oil-based biodiesel, as the month-long Iran war stress-tests the world’s energy resilience.
Prabowo is on his first ever state visit to Tokyo. The retired army general kicked off his trip by meeting Japanese Emperor Naruhito and attending a business forum as Jakarta sought to bring home fresh commercial deals. In a televised speech, Prabowo briefed the Japanese investors on his energy directives, including plans to hike the palm oil content in its biodiesel.
“The geopolitical situation in the Middle East gives strategic uncertainty for the security of our energy," Prabowo said.
“We [Indonesia] are going in a big way to biofuel. We will produce this year diesel from palm oil. We are now increasing from 40% to 50% of our diesel from palm oil.”
The B50 policy means Indonesia will implement a blend of 50% palm-oil biodiesel, with the other half sourced from conventional diesel. A B40 mandate — indicating a 40% palm oil mixture — has been in place over the past year, and even helped Southeast Asia’s biggest economy to save Rp 130.2 trillion (approximately $7.7 billion) in foreign exchange throughout 2025.
Indonesia has been eyeing plans to raise the blend after the Strait of Hormuz blockade takes a toll on global energy shipments. Iran — a country now at war with Israel and the US — has a stranglehold on the waterway that controls a quarter of the world’s seaborne oil trade. The Indonesian government even floated a plan to launch biodiesel with 60% palm oil blending rate when push comes to shove.
The plan has rattled producers as they worry whether they can keep up with the biodiesel mandate without sacrificing exports. The Indonesian Palm Oil Association (Gapki) said the country would have to increase production beyond the current volume as output remains stagnant. Higher production should enable Jakarta to steer clear of sacrificing its foreign clients for local supply. To this day, Indonesia largely banks on palm oil export levies to run the biodiesel program.
“Our production is stagnant. Forcing [a higher biodiesel mix] will only undermine our export. The only solution is to boost output by improving productivity,” Gapki chair Eddy Martono recently told the press.
The tests for the B50 program are slated for completion in the second half of 2026.
Japan is one of Indonesia’s palm oil buyers, although it mainly orders from Malaysia. In January 2026, Japan's palm oil imports from Indonesia totaled 701 million yen or almost $4.4 million. Malaysia’s Japan-bound palm oil exports totaled 9.7 billion yen ($60.7 million) in value that month, according to the Observatory of Economic Complexity.
Prabowo is expected to meet Japanese Prime Minister Sanae Takaichi soon.
His talks with Naruhito also revolved around energy issues, according to the Cabinet Secretariat while offering little details on the meeting. Jakarta Globe
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Diesel prices up? Time to leverage Malaysia’s palm oil as biodiesel savings could hit 20 sen per litre, says former minister
KUALA LUMPUR, March 29 — B20 biodiesel is now cheaper than pure diesel, and the government must fast-track critical depot upgrades to accelerate its rollout and ease surging fuel costs, says Seputeh MP Teresa Kok.
In a press statement, the former primary industries minister said palm-based biodiesel has become a more cost-effective alternative to fossil diesel and urged Putrajaya to urgently help the petroleum industry scale up B10 and B20 blending.
“We must treat palm oil as a strategic national asset,” she said.
“By failing to upgrade our depots, the government is forcing the rakyat to pay more at the pump while leaving our ‘golden crop’ underutilised,” she added
Citing market data as at March 27, 2026, Kok said palm methyl ester (PME) biodiesel is currently trading below international Euro 5 diesel prices.
Based on crude palm oil at RM4,500 per tonne and Euro 5 diesel at US$220 per barrel, she said a comparison of pure diesel and biodiesel blends shows the following indicative pump prices:
- B0 (pure diesel): RM5.53 per litre
- B7 (7 per cent biodiesel): RM5.46 per litre — saving 7 sen per litre
- B10 (10 per cent biodiesel): RM5.43 per litre — saving 10 sen per litre
- B20 (20 per cent biodiesel): RM5.33 per litre — saving 20 sen per litre
“It is deeply regrettable that the government has allowed the B20 programme to stall,” Kok said.
“Since its official launch in February 2020 by myself and then deputy prime minister Datuk Seri Dr Wan Azizah Wan Ismail, infrastructure development has been severely neglected.”
She said that while B20 has been rolled out in parts of Sarawak, Bintulu still lacks sufficient blending capacity, and several depots in Sandakan, Tawau and Kota Kinabalu in Sabah are awaiting upgrades.
In Peninsular Malaysia, she added, the situation is even more limited, with Langkawi among the earliest and few locations to offer B20 to consumers.
With conflict in the Middle East keeping global oil markets volatile, Kok said Malaysia can no longer afford to “brush aside” domestic energy solutions like palm-based biodiesel.
She called on the government to direct the Finance Ministry to immediately approve and expedite upgrades for 35 petroleum depots nationwide, provide incentives for the distribution and use of B10 and B20 blends, and complete stalled B20 infrastructure projects in Sarawak, Sabah and the peninsula Malay Mail
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Thai Government Ramps Up B20 Biodiesel Supply to Tackle Rising Transport Costs
- The Thai government is subsidizing B20 biodiesel to make it 5 baht ($0.15) per litre cheaper than standard diesel, aiming to lower costs for the transport and industrial sectors.
- Major fuel retailers, including PTT, Bangchak, and Shell, are expanding their distribution networks to increase the nationwide availability of B20 fuel.
- The policy uses domestically produced palm oil to create stable demand for local farmers' crops, support the agricultural sector, and reduce reliance on fuel imports.
B20, a blend of diesel with 20% palm oil-derived methyl ester, is being positioned as a cost-effective alternative amid global crude price volatility.
The relaunch comes as diesel prices climb sharply amid the Middle East conflict. B20 is cheaper than B5, the more widely used biodiesel containing 5% methyl ester, by 5 baht per litre.
The two companies would not disclose how much subsidy the government is offering for B20.
The administration's renewed push for biodiesel coincided with its announcement of a 6-baht per litre increase in gasoline and diesel prices, citing limited subsidy funds. The Oil Fuel Fund, which subsidises fuel prices, reported a deficit of 28.1 billion baht as of March 22, underscoring the urgency of finding cheaper alternatives.
https://www.bangkokpost.com/business/general/3226793/bangchak-or-resume-b20-sales-to-reduce-fuel-costs. View our policies at http://goo.gl/9HgTd and http://goo.gl/ou6Ip. © Bangkok Post PCL. All rights reserved.
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Wasco Berhad Stock: Engineering Firm Powers Malaysia's Energy Transition with Renewable Focus
Wasco Berhad (ISIN: MYL5142OO004), listed on Bursa Malaysia, leads in engineering procurement and construction for cleaner energy systems, serving palm oil and industrial sectors amid Southeast Asia's green push. North American investors eye its growth in renewables for portfolio diversification.
Wasco Berhad stands as a key player in Malaysia's energy infrastructure sector, specializing in engineering, procurement, construction, and commissioning (EPCC) services for renewable and cleaner energy systems. The company, listed on Bursa Malaysia's Main Board under its subsidiary Wasco Greenergy Berhad (stock code 5343), focuses on sustainable solutions that align with global energy transition trends. Investors tracking emerging markets may find its niche in palm oil industry steam systems and auxiliary facilities particularly relevant. Ad hoc news
--------
Malaysia Leads South South Partnerships In Palm Oil
Malaysia’s investment and expertise in palm oil and rubber are driving a new era of Global South cooperation, with young voices and sustainable practices shaping the industry’s future.
- Prime Minister Anwar Ibrahim highlighted the Global South's rising influence, with Malaysia fostering equitable South-South partnerships, especially in palm oil and rubber sectors.
- Malaysia invests institutional expertise and industrial systems to help West African countries develop their palm oil and rubber industries sustainably and productively.
- Malaysia leads global production of certified sustainable palm oil and natural rubber gloves, exporting knowledge to overcome domestic constraints and support West African agricultural growth.
n March 29, 2026, Prime Minister Datuk Seri Anwar Ibrahim declared that the Global South is reclaiming a voice that can no longer be ignored in the shifting international order. But what does that actually mean in practice? For Malaysia, the answer may lie not in diplomatic speeches or lofty slogans, but in the gritty, hands-on work of building real partnerships—especially in the palm oil and rubber sectors, where Malaysia has long been a global powerhouse. Recent developments suggest that the nation is not content to remain a spectator as the world’s economic landscape is remade from the ground up.
According to the New Straits Times, Malaysia’s evolving approach is best understood through the prism of South-South cooperation—an idea that’s gaining traction as traditional global systems falter. Rather than relying on the old model, where the Global North reaped the lion’s share of value from the South’s raw materials, Malaysia is helping to forge new, more equitable ties among developing nations. The story of Guan Chong, a Malaysian cocoa giant, is a case in point. By investing in cocoa grinding capacity in San Pedro, Ivory Coast, Guan Chong has done more than expand its own reach. It has shifted value-added activities closer to the source, creating jobs, building technical expertise, and giving Ivory Coast a larger stake in the global cocoa market. As the New Straits Times put it,“That is not charity. It is not extraction. It is smart industrial partnership.”
This template is being eyed for broader application, especially in the palm oil and rubber sectors. There’s a historical irony here: oil palm is native to West Africa, and back in the 1960s, both Malaysia and Ivory Coast were on roughly equal footing in terms of palm oil production. Fast forward to today, and Malaysia produces a staggering 40 times more output than Ivory Coast. The difference, according to experts, wasn’t geography—it was the institutions, research, and industrial ecosystem Malaysia built over decades.
In 2024, Malaysia’s palm oil sector contributed RM114 billion in export value and made up 2.3% of the country’s GDP. The nation isn’t just a top producer; it leads the world in certified sustainable palm oil, with deep expertise spanning planting materials, estate management, milling, refining, logistics, and downstream processing. But the industry faces headwinds at home: land constraints, an aging estate base, labor shortages, and rising costs are all putting the squeeze on growth.
That’s where West Africa comes in. The region offers something Malaysia increasingly lacks—room to expand, ecological suitability, and access to fast-growing markets. Yet, as the New Straits Times notes, the goal isn’t to replicate the old colonial model of land acquisition and raw export. Instead, Malaysia’s real advantage lies in exporting its institutional know-how: the systems, research, and support networks that transformed palm oil from a basic crop into a pillar of the national economy.
“Our real advantage is not just capital. It is the ability to build systems,” the article argues. Malaysian firms have a chance to help West African countries like Ivory Coast develop the missing pieces of their agricultural sectors—better seedlings, agronomic support, aggregation systems, milling, refining, and downstream industries. The Felda era in Malaysia showed that when smallholders are properly supported, productivity rises and rural communities thrive. That’s the lesson Malaysia hopes to export. Evrimagaci
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March 28, 2026
Human Resources is the Key to the Competitiveness of the Palm Oil Industry, PASPI Soroti Peran BPDP
JAKARTA - Human resource development (HRD) is considered a crucial factor to maintain sustainability and increase the competitiveness of the national palm oil industry in the midst of increasingly tight global competition.
The Executive Director of the Palm Oil Agribusiness Strategic Policy Institute (PASPI) Tungkot Sipayung said that strengthening human resources must be able to answer the increasingly complex challenges of the palm oil industry, including in terms of technology, sustainability, and productivity.
"Human resource development must be able to improve quality, diversity of skills, and the availability of adequate labor to meet the needs of the palm oil industry in the future," said Tungkot in Jakarta, Saturday (28/3/2026).
He assessed that the role of the Plantation Fund Management Agency (BPDP) was very strategic in preparing competent palm oil workers through a scholarship program for children of palm oil farmers. The program is carried out together with the Directorate General of Plantation of the Ministry of Agriculture.
According to Tungkot, since its establishment, BPDP has provided scholarships for undergraduate education for children of oil palm farmers as part of the reinvestment of palm oil export levies.
Based on data for 2025, as many as 13,265 participants have received scholarships for human resource development in the palm oil industry at various universities. In addition, technical training programs have also reached around 32,152 oil palm farmers.
In 2026, BPDP targets a quota of 5,000 new students in the scholarship program with a focus on strengthening technical and technological competencies in plantations.
However, Tungkot assessed that the number still needs to be increased to meet the needs of the growing palm oil industry workforce.
"In the future, the development of human resources in oil palm needs to be expanded so that it can produce a more competitive generation and be able to compete with other producer countries such as Malaysia," he said.
He added that improving the quality of human resources is one of the key factors for the Indonesian palm oil industry to be able to maintain its position as a major player in the global market. VOI
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EUDR delay: A chance for fairer supply chains
The EUDR holds immense potential to benefit global sustainability, but only if it evolves beyond rigid rules and overly simple measurements.
When you reach for a “palm-oil-free” label at the supermarket, you likely feel you’re doing your part to save orangutans and protect biodiversity. However, the reality behind that label is more complex than it appears. Our work with the IUCN Oil Crop Task Force reveals that replacing palm oil with alternatives actually increases the demand for land. Recent studies from both the IUCN and industry leaders like Musim Mas confirm that palm oil is exceptionally efficient, producing four to 10 times more oil per hectare than soy or sunflower. Consequently, a blind boycott of palm oil risks a “displaced” environmental catastrophe, potentially triggering the clearing of millions of hectares elsewhere. As a conservation biologist with years spent on the forest frontier alongside local communities, I’ve learnt first-hand that the line between “good” and “bad” agriculture rarely lies in the crop itself. The European Union Deforestation Regulation (EUDR) attempts to address this complexity, yet it currently lacks the precision needed to avoid significant unintentional harm.
Our 2025 analysis of three major Western supermarket chains, selected for the transparency of their online ingredient lists, suggests that the often repeated “palm oil lurks in 50 percent of consumer items” claim may be an overstatement, at least according to our data.
While palm oil appeared in just 8 percent of the products we analyzed, significant uncertainty remains; as much as 40 percent of items may contain hidden palm oil disguised as derivatives (processed ingredients) or listed under vague labels like “emulsifiers”. This labeling fog prevents consumers from tracing product origins, allowing myths to eclipse the realities of supply chain management. The EUDR offers a critical solution. By requiring that key commodities, including beef, cocoa, coffee, palm oil, rubber, soy and wood, entering the EU are both deforestation-free and legally produced, the regulation sets a high bar for global trade. However, the path to successful implementation faces significant hurdles.
With the European Parliament voting to delay enforcement for a second time, the law’s good intentions appear stuck in a political deadlock. While the core text remains intact, proposed simplifications for early 2026 include streamlining reporting obligations and refining the product list to include items like palm oil-based soaps and instant coffee. The EUDR’s impact deeply affects tropical exporters and their trading partners, including the UK. British companies exporting goods containing these commodities must align with EUDR standards to maintain access to the EU market. However, the UK’s own deforestation rules are notably less strict. This regulatory divergence threatens UK firms with higher compliance costs and risks turning the country into a “dumping ground” for deforestation-linked goods rejected by the EU. This delay offers a vital window of opportunity for the UK to align with the EUDR, mitigate trade risks and reclaim its leadership in ethical supply chains. For exporting countries like Indonesia, the core issue remains fairness. The EUDR relies on satellite-derived “base maps” to verify forest loss, yet these maps are deeply flawed. Research shows that Indonesian agroforestry systems face a 63 percent risk of being misclassified as “deforested”. As a result, a single erroneous pixel in Brussels could effectively bar an honest smallholder in Sumatra from European markets. Recent analysis from Mongabay warns that the extremely high costs of tracing and mapping farm locations threaten to marginalize these smallholders. This financial burden risks driving them toward less regulated markets, a phenomenon known as “leakage” that could dilute the EUDR’s environmental impact.
This article was published in thejakartapost.com with the title "". Click to read: https://www.thejakartapost.com/opinion/2026/03/28/eudr-delay-a-chance-for-fairer-supply-chains.html.
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MP SPEAKS | Accelerate B20 biodiesel rollout to counter fuel price crisis
MP Teresa Kok
MP SPEAKS | I urge the government to immediately accelerate B20 palm biodiesel rollout to mitigate surging fuel prices nationwide, as the recent and drastic spikes in diesel and petrol prices are placing an immense burden on the rakyat and our local industries.
As retail diesel prices in Peninsular Malaysia hit a staggering RM5.52 per litre this week, implementing B20 biodiesel is no longer just an environmental goal; it is a critical economic tool to provide a more stable, locally sourced alternative that can shield our economy from the extreme volatility of global crude oil markets.
The B20 biodiesel programme for the transportation sector was officially launched by then-deputy prime minister Dr Wan Azizah Wan Ismail and me as then-primary industries minister on Feb 20, 2020.
The implementation began earlier in Langkawi on Jan 1, 2020, and in Labuan on Jan 15, 2020, before the official national launch in February.
It was originally scheduled to expand to Sarawak in April 2020, Sabah in August 2020, and Peninsular Malaysia by June 2021.
However, since then, the government has repeatedly brushed the rollout aside.
Today, the whole country is suffering from a cost-of-living crisis driven by fuel costs because the government lacks the political will to reduce our dependency on expensive imported fossil fuels.
I call on the Finance Ministry to immediately re-examine and expedite the funding and construction plans for B20 biodiesel blending depots.
The Finance Ministry must quickly re-examine the stalled depot construction plans across Peninsular Malaysia, in Bintulu, and throughout Sabah. Without these depots, we cannot blend the palm oil into our fuel supply at scale.
The government’s hesitation to invest in this infrastructure years ago is why we are paying the price at the pump today.
While conventional diesel prices fluctuate wildly based on global crude oil volatility, Palm Methyl Ester offers a domestic alternative that supports local farmers. Malaysiakini
Human Resources is the Key to the Competitiveness of the Palm Oil Industry, PASPI Soroti Peran BPDP
JAKARTA - Human resource development (HRD) is considered a crucial factor to maintain sustainability and increase the competitiveness of the national palm oil industry in the midst of increasingly tight global competition.
The Executive Director of the Palm Oil Agribusiness Strategic Policy Institute (PASPI) Tungkot Sipayung said that strengthening human resources must be able to answer the increasingly complex challenges of the palm oil industry, including in terms of technology, sustainability, and productivity.
"Human resource development must be able to improve quality, diversity of skills, and the availability of adequate labor to meet the needs of the palm oil industry in the future," said Tungkot in Jakarta, Saturday (28/3/2026).
He assessed that the role of the Plantation Fund Management Agency (BPDP) was very strategic in preparing competent palm oil workers through a scholarship program for children of palm oil farmers. The program is carried out together with the Directorate General of Plantation of the Ministry of Agriculture.
According to Tungkot, since its establishment, BPDP has provided scholarships for undergraduate education for children of oil palm farmers as part of the reinvestment of palm oil export levies.
Based on data for 2025, as many as 13,265 participants have received scholarships for human resource development in the palm oil industry at various universities. In addition, technical training programs have also reached around 32,152 oil palm farmers.
In 2026, BPDP targets a quota of 5,000 new students in the scholarship program with a focus on strengthening technical and technological competencies in plantations.
However, Tungkot assessed that the number still needs to be increased to meet the needs of the growing palm oil industry workforce.
"In the future, the development of human resources in oil palm needs to be expanded so that it can produce a more competitive generation and be able to compete with other producer countries such as Malaysia," he said.
He added that improving the quality of human resources is one of the key factors for the Indonesian palm oil industry to be able to maintain its position as a major player in the global market. VOI
--------
EUDR delay: A chance for fairer supply chains
The EUDR holds immense potential to benefit global sustainability, but only if it evolves beyond rigid rules and overly simple measurements.
When you reach for a “palm-oil-free” label at the supermarket, you likely feel you’re doing your part to save orangutans and protect biodiversity. However, the reality behind that label is more complex than it appears. Our work with the IUCN Oil Crop Task Force reveals that replacing palm oil with alternatives actually increases the demand for land. Recent studies from both the IUCN and industry leaders like Musim Mas confirm that palm oil is exceptionally efficient, producing four to 10 times more oil per hectare than soy or sunflower. Consequently, a blind boycott of palm oil risks a “displaced” environmental catastrophe, potentially triggering the clearing of millions of hectares elsewhere. As a conservation biologist with years spent on the forest frontier alongside local communities, I’ve learnt first-hand that the line between “good” and “bad” agriculture rarely lies in the crop itself. The European Union Deforestation Regulation (EUDR) attempts to address this complexity, yet it currently lacks the precision needed to avoid significant unintentional harm.
Our 2025 analysis of three major Western supermarket chains, selected for the transparency of their online ingredient lists, suggests that the often repeated “palm oil lurks in 50 percent of consumer items” claim may be an overstatement, at least according to our data.
While palm oil appeared in just 8 percent of the products we analyzed, significant uncertainty remains; as much as 40 percent of items may contain hidden palm oil disguised as derivatives (processed ingredients) or listed under vague labels like “emulsifiers”. This labeling fog prevents consumers from tracing product origins, allowing myths to eclipse the realities of supply chain management. The EUDR offers a critical solution. By requiring that key commodities, including beef, cocoa, coffee, palm oil, rubber, soy and wood, entering the EU are both deforestation-free and legally produced, the regulation sets a high bar for global trade. However, the path to successful implementation faces significant hurdles.
With the European Parliament voting to delay enforcement for a second time, the law’s good intentions appear stuck in a political deadlock. While the core text remains intact, proposed simplifications for early 2026 include streamlining reporting obligations and refining the product list to include items like palm oil-based soaps and instant coffee. The EUDR’s impact deeply affects tropical exporters and their trading partners, including the UK. British companies exporting goods containing these commodities must align with EUDR standards to maintain access to the EU market. However, the UK’s own deforestation rules are notably less strict. This regulatory divergence threatens UK firms with higher compliance costs and risks turning the country into a “dumping ground” for deforestation-linked goods rejected by the EU. This delay offers a vital window of opportunity for the UK to align with the EUDR, mitigate trade risks and reclaim its leadership in ethical supply chains. For exporting countries like Indonesia, the core issue remains fairness. The EUDR relies on satellite-derived “base maps” to verify forest loss, yet these maps are deeply flawed. Research shows that Indonesian agroforestry systems face a 63 percent risk of being misclassified as “deforested”. As a result, a single erroneous pixel in Brussels could effectively bar an honest smallholder in Sumatra from European markets. Recent analysis from Mongabay warns that the extremely high costs of tracing and mapping farm locations threaten to marginalize these smallholders. This financial burden risks driving them toward less regulated markets, a phenomenon known as “leakage” that could dilute the EUDR’s environmental impact.
This article was published in thejakartapost.com with the title "". Click to read: https://www.thejakartapost.com/opinion/2026/03/28/eudr-delay-a-chance-for-fairer-supply-chains.html.
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MP SPEAKS | Accelerate B20 biodiesel rollout to counter fuel price crisis
MP Teresa Kok
MP SPEAKS | I urge the government to immediately accelerate B20 palm biodiesel rollout to mitigate surging fuel prices nationwide, as the recent and drastic spikes in diesel and petrol prices are placing an immense burden on the rakyat and our local industries.
As retail diesel prices in Peninsular Malaysia hit a staggering RM5.52 per litre this week, implementing B20 biodiesel is no longer just an environmental goal; it is a critical economic tool to provide a more stable, locally sourced alternative that can shield our economy from the extreme volatility of global crude oil markets.
The B20 biodiesel programme for the transportation sector was officially launched by then-deputy prime minister Dr Wan Azizah Wan Ismail and me as then-primary industries minister on Feb 20, 2020.
The implementation began earlier in Langkawi on Jan 1, 2020, and in Labuan on Jan 15, 2020, before the official national launch in February.
It was originally scheduled to expand to Sarawak in April 2020, Sabah in August 2020, and Peninsular Malaysia by June 2021.
However, since then, the government has repeatedly brushed the rollout aside.
Today, the whole country is suffering from a cost-of-living crisis driven by fuel costs because the government lacks the political will to reduce our dependency on expensive imported fossil fuels.
I call on the Finance Ministry to immediately re-examine and expedite the funding and construction plans for B20 biodiesel blending depots.
The Finance Ministry must quickly re-examine the stalled depot construction plans across Peninsular Malaysia, in Bintulu, and throughout Sabah. Without these depots, we cannot blend the palm oil into our fuel supply at scale.
The government’s hesitation to invest in this infrastructure years ago is why we are paying the price at the pump today.
While conventional diesel prices fluctuate wildly based on global crude oil volatility, Palm Methyl Ester offers a domestic alternative that supports local farmers. Malaysiakini
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March 27, 2026
Indonesia to Expedite Downstreaming, Strengthen Energy Security, Optimize Natural Resources for Self-Sufficiency
By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
The Government continues to expedite downstreaming measures, strengthen national energy security with alternative energy sources, and optimize natural resources management, Minister of Energy and Mineral Resources Bahlil Lahadalia has said.
Bahlil made the statement following a limited meeting with President Prabowo Subianto and several ministers at the President’s private residence in Hambalang village, Bogor regency, on Wednesday (03/25).
Bahlil pointed out that developing the downstreaming program is one of the Government’s priorities, adding that of the 20 downstreaming projects in the first phase, several have already entered the groundbreaking stage, while the remainder are scheduled to begin next month.
“There are 13 downstreaming items with a total investment amount of approximately 239 trillion [rupiahs], and we will discuss the finalization,” he said.
In addition to downstreaming, Bahlil also addressed the development of alternative energy as an effort to achieve energy security and self-sufficiency, adding that President Prabowo ordered the optimization of all domestic energy potential, including crude palm oil- or CPO-based ethanol and biodiesel, as well as the acceleration of the transition to new and renewable energy.
“The President ordered us to optimize all energy potentials we have, be it ethanol, biodiesel from CPO, and to promote energy transition to new and renewable energy,” he said.
On that occasion, Bahlil also reported the current energy and mineral commodity prices, especially coal and nickel, while underscoring that there has been no policy change regarding the management of the two commodities and that the Government has continued to monitor global market dynamics.
“Even if the prices remain stable and good, we will implement measured relaxation to the production plans. Everything is within the limits of coordination with the market, aligning with supply and demand. We expect the prices to remain stable. We hope that coal prices are good, nickel prices are good, and we will implement measured relaxation,” he said.
Bahlil further stated that during the meeting, President Prabowo underscored the importance of safeguarding natural resources as a strategic national asset and pushed for the optimization of state revenues from the mineral sector.
“The President ordered me to pay attention to the national interest and prioritize it above all, and [ordered] us to maintain our natural resources. Our natural resources are state assets, and for that reason, the President ordered us to look for sources of income in the mineral sector, which has not been fair to the state,” he said.
For the record, the Government aims to ensure that downstreaming is implemented optimally, energy transition continues to proceed, and energy commodity production remains balanced with market demands. The Government also strives to maintain competitive commodity prices without sacrificing the national interest.
With an integrated policy direction, especially regarding industrial downstreaming, strengthening domestic energy, and sovereign natural resource management, the Government seeks to create a more robust, independent, and globally competitive national economic structure. (BPMI of Presidential Secretariat) (DH/AW)
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CARB seeks contractor to help identify UCO mixed with virgin oils
The California Air Resources Board in early March issued a request for proposals (RFP) seeking a vendor that can help the agency identify used cooking oil (UCO) that has been fraudulently mixed with virgin oils, such as palm oil.
According to CARB, the selected vendor will utilize existing laboratory practices and other analytical or process-based methods to analyze biodiesel and renewable diesel feedstocks or finished diesel fuels to identify the existence of virgin oils. Information provided by the vendor will be used by CARB and third-party verification bodies to support administration of the Low Carbon Fuel Standard.
The FRP focuses primarily on UCO. “UCO is a key feedstock for producing biodiesel and renewable diesel,” the agency said in the RFP. “However, increased subsidies for UCO and other low-carbon feedstocks have led to concerns of potential fraudulent activity, for example, blending UCO with virgin oils such as palm oil and marketing the blended fuel as UCO to maximize incentive value. CARB is seeking additional information on ways to identify potential UCO adulteration and fraud as part of LCFS program administration.”
The contractor selected the project is expected to develop a standard testing method following best practices in laboratory operations to identify and measure chemical or physical characteristics of UCO that can be validated in feedstock samples.
CARB has set a maximum budget of $800,000 for the project. Proposals from eligible vendors can be submitted through April 3. The agency is expected to select a vendor in April, with work beginning in May.
The volume of UCO imported by the U.S. has surged rapidly in recent years, growing from less than 200 million pounds in 2020 to more than 3 billion pounds in 2023, with more than 50% of that volume coming from China. This spike in UCO imports has created concerns that UCO suppliers are fraudulently mixing UCO with palm oil and other virgin oil products, negatively impacting programs like California’s LCFS and the federal Renewable Fuel Standard, which aim to increase the use of lower-carbon fuels. Biomass Magazine
Indonesia to Expedite Downstreaming, Strengthen Energy Security, Optimize Natural Resources for Self-Sufficiency
By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
The Government continues to expedite downstreaming measures, strengthen national energy security with alternative energy sources, and optimize natural resources management, Minister of Energy and Mineral Resources Bahlil Lahadalia has said.
Bahlil made the statement following a limited meeting with President Prabowo Subianto and several ministers at the President’s private residence in Hambalang village, Bogor regency, on Wednesday (03/25).
Bahlil pointed out that developing the downstreaming program is one of the Government’s priorities, adding that of the 20 downstreaming projects in the first phase, several have already entered the groundbreaking stage, while the remainder are scheduled to begin next month.
“There are 13 downstreaming items with a total investment amount of approximately 239 trillion [rupiahs], and we will discuss the finalization,” he said.
In addition to downstreaming, Bahlil also addressed the development of alternative energy as an effort to achieve energy security and self-sufficiency, adding that President Prabowo ordered the optimization of all domestic energy potential, including crude palm oil- or CPO-based ethanol and biodiesel, as well as the acceleration of the transition to new and renewable energy.
“The President ordered us to optimize all energy potentials we have, be it ethanol, biodiesel from CPO, and to promote energy transition to new and renewable energy,” he said.
On that occasion, Bahlil also reported the current energy and mineral commodity prices, especially coal and nickel, while underscoring that there has been no policy change regarding the management of the two commodities and that the Government has continued to monitor global market dynamics.
“Even if the prices remain stable and good, we will implement measured relaxation to the production plans. Everything is within the limits of coordination with the market, aligning with supply and demand. We expect the prices to remain stable. We hope that coal prices are good, nickel prices are good, and we will implement measured relaxation,” he said.
Bahlil further stated that during the meeting, President Prabowo underscored the importance of safeguarding natural resources as a strategic national asset and pushed for the optimization of state revenues from the mineral sector.
“The President ordered me to pay attention to the national interest and prioritize it above all, and [ordered] us to maintain our natural resources. Our natural resources are state assets, and for that reason, the President ordered us to look for sources of income in the mineral sector, which has not been fair to the state,” he said.
For the record, the Government aims to ensure that downstreaming is implemented optimally, energy transition continues to proceed, and energy commodity production remains balanced with market demands. The Government also strives to maintain competitive commodity prices without sacrificing the national interest.
With an integrated policy direction, especially regarding industrial downstreaming, strengthening domestic energy, and sovereign natural resource management, the Government seeks to create a more robust, independent, and globally competitive national economic structure. (BPMI of Presidential Secretariat) (DH/AW)
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CARB seeks contractor to help identify UCO mixed with virgin oils
The California Air Resources Board in early March issued a request for proposals (RFP) seeking a vendor that can help the agency identify used cooking oil (UCO) that has been fraudulently mixed with virgin oils, such as palm oil.
According to CARB, the selected vendor will utilize existing laboratory practices and other analytical or process-based methods to analyze biodiesel and renewable diesel feedstocks or finished diesel fuels to identify the existence of virgin oils. Information provided by the vendor will be used by CARB and third-party verification bodies to support administration of the Low Carbon Fuel Standard.
The FRP focuses primarily on UCO. “UCO is a key feedstock for producing biodiesel and renewable diesel,” the agency said in the RFP. “However, increased subsidies for UCO and other low-carbon feedstocks have led to concerns of potential fraudulent activity, for example, blending UCO with virgin oils such as palm oil and marketing the blended fuel as UCO to maximize incentive value. CARB is seeking additional information on ways to identify potential UCO adulteration and fraud as part of LCFS program administration.”
The contractor selected the project is expected to develop a standard testing method following best practices in laboratory operations to identify and measure chemical or physical characteristics of UCO that can be validated in feedstock samples.
CARB has set a maximum budget of $800,000 for the project. Proposals from eligible vendors can be submitted through April 3. The agency is expected to select a vendor in April, with work beginning in May.
The volume of UCO imported by the U.S. has surged rapidly in recent years, growing from less than 200 million pounds in 2020 to more than 3 billion pounds in 2023, with more than 50% of that volume coming from China. This spike in UCO imports has created concerns that UCO suppliers are fraudulently mixing UCO with palm oil and other virgin oil products, negatively impacting programs like California’s LCFS and the federal Renewable Fuel Standard, which aim to increase the use of lower-carbon fuels. Biomass Magazine
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March 26, 2026
Akwa Ibom state governor, Pastor Umo Eno Targets Non-oil Revenues, Okays N2.5bn For Palm Oil Production
The Akwa Ibom state governor, Pastor Umo Eno, has said the state was inkling towards the diversification of the economy to agriculture, tourism and other non-oil sectors, to boost the revenue profile of the state.
Speaking at the March Projects Delivery Meeting (PDM) held at the Banquet Hall, Government House, Uyo, the governor reaffirmed his administration’s commitment to timely project delivery and sustainable development.
Reviewing his administration’s scorecard since 2023, the governor gave himself a pass mark and highlighted 86 priority projects of the administration outside road, hospital, and school projects.
He emphasised the need for stronger collaboration among ministries, departments, and agencies (MDAs) to drive greater output and ensure efficient service delivery, and directed the constitution of an inter-ministerial committee to drive the completion and commissioning of Youth Friendly Centres (YFC).
The governor also addressed the state’s electricity situation, outlining ongoing reforms and clear roadmaps for Akwa Ibom State to take ownership of its power market, noting that “the current power situation is as a result of low power generation across the country,” and assured that government was engaging relevant power stakeholders towards improved power supply in the state.
Following a presentation by the Agriculture and Food Security Committee, the governor approved the sum of N2.5 billion for the procurement of over 620,000 palm seedlings for distribution to registered farmers across the 31 local government areas of the state.
“This initiative is part of efforts to boost agricultural productivity and economic growth,” adding that a formal launch of the programme would be held at a later date.
LEADERSHIP gathered that a total of 55 projects were reviewed during the meeting, with clear timelines and commissioning dates established.
Some of the projects reviewed included; the Governor’s Office Annex, AKWA-GIS House, Ibom International Convention Centre, Ibom International Hotel, Itam Industrial Park, International Market, Ikot Ekpene; Rehabilitation of AKADEP Head Office and Youth Friendly Centres.
Others included Arise Palm Resort, One Project Per LGA (Phase 2), Judiciary Village, Chairman’s Lodge, 350 Bed International Hospital, Tree Crop Revolution, Security and Command Center, AKBC House, Court of Appeal Complex, key airport infrastructure projects, Ibom farms, Arise Shopping City, Agric Equipment Leasing Company, and Ibom Hotel and Golf Resort.
Oron Maritime Infrastructure, Ibom City Bus Service, Multiple General Hospitals, AKICORP House, Agricultural initiatives, security infrastructure, and major housing developments across the State, were also reviewed. LeadershipNG
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Malaysian Palm oil gets a war boost
PETALING JAYA: Crude palm oil (CPO) prices appear to be tethered to oil price movements for the time being.
Oil has seen its importance in the workings of the global economy, underscored once again by the ongoing conflict at the Strait of Hormuz. It is more than just a fuel ingredient, it also plays a key role in various other supply chains like food, manufacturing etc.
As such, whether the recent strong rise in CPO prices is sustainable or not would boil down to how oil prices behave, at least in the short term – since it is also viewed as an alternative to oil.
CPO prices which last traded at RM4,489 per tonne are a shade lower than their six-month high recorded on March 16, whereby the commodity rose to RM4,654 per tonne. CPO prices are still much lower than what was recorded back in 2022 during the Russian-Ukraine war, where it rose in excess of RM7,100 per tonne, its historic high.
As such, prices today are largely seen as sustainable and would continue to move in tandem with oil prices – of which Brent crude oil had last traded at US$97.89 per barrel.
Brent crude oil now trades below the psychological US$100 per barrel at the time of writing as diplomatic efforts by the United States had raised hopes of easing the Middle East conflict, placating concerns over prolonged supply disruptions.
Tradeview Capital’s portfolio manager Neoh Jia Man said it is evident CPO prices have been supported by the recent spike in oil and gas prices following the Middle East conflict.
“Elevated crude prices improve the economics of biodiesel, thereby boosting demand for palm oil as an alternative fuel feedstock. At the same time, this has reinforced expectations of higher biodiesel blending mandates, particularly in Indonesia which further tightens export availability and provides additional support to CPO prices,” Neoh told StarBiz.
Whether CPO prices would continue to rise above RM4,500 per tonne will largely be contingent on the trajectory and duration of the ongoing geopolitical tensions and their impact on global energy prices, he said.
“In our view, underlying demand growth from traditional import markets remains relatively subdued, with early signs of demand destruction already emerging at elevated price levels. As such, the recent strength appears to be primarily energy-driven. Should global hydrocarbon prices moderate, we see a risk of price reversion, given the lack of strong fundamental support from food demand,” Neoh said.
The Malaysian Palm Oil Council (MPOC) said the recent vegetable oil price uptrend is supported by the Iran war coupled with the prolonged consolidation that was seen since mid-2025.
“Among the major vegetable oils, palm oil has been the price leader, rising 10% since the start of the conflict on Feb 27. In comparison, rapeseed oil rose 4%, sunflower oil increased 3%, while soybean oil gained only 1% in the global market,” the MPOC said in a statement late last week.
“The sharp rise in gas-oil prices in the global market has improved the competitiveness of biodiesel usage and blending.
“Brazil’s biodiesel industry has called for an increase in the blending mandate from B15 to B16, while Indonesia is accelerating road tests for B50 blending to reduce import reliance, although the implementation timeline remains unclear,” it added. The StarMY
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Turning palm oil’s methane problem into a climate solution
Dr Ahmad Ibrahim criticizes lethargy in realizing the climate solution
MARCH 26 — Palm oil is big business in Malaysia and Indonesia.
Together they produce more than 80 per cent of global supply.
The truth is palm oil is big business worldwide, considering the fact it leads the global trade in oils and fats.
For decades, the palm oil industry has been synonymous with environmental controversy. It still is.
But what if one of its biggest liabilities could be transformed into a powerful asset?
Beneath the steam and machinery of every palm oil mill lies a hidden energy source, currently bubbling away as a potent pollutant. It’s time to harness it. The culprit and the opportunity is Palm Oil Mill Effluent (POME).
When this wastewater decomposes in open lagoons, it releases vast amounts of methane — a greenhouse gas over 25 times more potent than CO₂.
Combine this with the mountains of leftover solid waste like empty fruit bunches, and you have a massive waste management headache.
Yet, together, these very wastes are the perfect recipe for biomethane — a renewable, clean-burning gas.
The technology is straightforward: instead of letting wastes decompose separately, we mix them in an anaerobic digester — a high-tech stomach — that captures the methane.
This process, called co-digestion, isn’t just science fiction; it’s proven, practical, and profitable.
It balances the waste streams, boosts gas production, and can power the mill, fuel vehicles, or even feed into gas grids.
It turns a cost centre into a revenue stream.
So why isn’t every mill doing this?
The roadblocks aren’t mysteries, but they are significant.
First, investment. The upfront capital for digesters and upgrading systems is high, and many millers, especially smaller operators, understandably balk.
Third, infrastructure and policy. Remote mills may lack connection to gas grids, and often, government policies offer little more than vague encouragement instead of concrete tariffs, tax incentives, or guaranteed off-take agreements.
But these challenges are surmountable, and the imperative to act is non-negotiable.
So why hesitate?
The global push for decarbonization is creating new currencies: carbon credits and green premiums.
A mill that captures its methane can tap into both.
More importantly, it can fundamentally rebrand its operations.
Imagine “carbon-neutral palm oil,” powered by its own waste, locking in premium markets and investor confidence.
The call to action is for two key players: To Industry Leaders: The first movers are already proving this works.
The challenge now is to scale, share knowledge, and drive down costs through innovation.
Treat this not as a compliance cost, but as a strategic investment in long-term viability and brand redemption.
Collaborate to create centralized biomethane hubs for smaller mills.
To Policymakers: Stop with the lukewarm endorsements.
Create a real investment landscape.
Enact strong feed-in tariffs for biomethane power.
Streamline approvals for bio-CNG projects and gas grid injection.
Offer targeted green financing and capital allowances.
Make methane capture a cornerstone of national climate action plans.
The narrative around palm oil has been stuck for too long.
Here is a tangible, powerful chance to rewrite it.
We have the waste, we have the technology, and we have a climate crisis that demands ingenuity.
Let’s stop letting our energy — and our credibility — evaporate into thin air.
It’s time to build an industry where the smokestacks of the past are replaced by the circular economies of the future.
The methane is there, waiting to be captured.
The question is, do we have the will to seize it?
The fact is Malaysia has long launched the National Biomass Action Plan.
But the execution is snail pace. Nothing much has happened.
Even the plan to create major collection centres of EFBs is showing lethargy.
In the meantime, much of the unused EFBs end up bloating the country’s not so well operated landfills.
One wonders why this lethargy.
Everyone is shouting circular economy. But the initiative to take the first step is not there.
Unless there is a bold commitment and move to change, the blueprint of the circular economy will remain just that, a plan! Malay Mail
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Palm oil company PT Equator Sumber Rezeki (ESR) clearing orangutan habitat in Indonesian Borneo despite red flags
JAKARTA — A palm oil company is ramping up its destruction of forests that are home to critically endangered orangutans in a UNESCO Biosphere Reserve on the island of Borneo, according to satellite imagery and government sources.
In October 2025, Mongabay reported that PT Equator Sumber Rezeki (ESR) had clear-cut 1,376 hectares (3,400 acres) of forest between January and August 2025, based on satellite image analysis by Satya Bumi, an Indonesian environmental nonprofit. Prior to that, ESR had cleared no more than 195 hectares (482 acres) of forest. The company is operating within a 15,000-hectare (37,000-acre) oil palm plantation concession in Kapuas Hulu, a district in Indonesia’s West Kalimantan province.
Now, an updated analysis by Satya Bumi shows that ESR further accelerated its rainforest clearing in the final quarter of 2025, razing an additional 1,492 hectares (3,687 acres) of forest from October to December. It has now cleared a total of 3,063 hectares (7,569 acres) of forest within its concession, according to Satya Bumi.
ESR’s concession overlaps with part of the Labian–Leboyan watershed, a wildlife corridor connecting Betung Kerihun and Danau Sentarum national parks — two of the last strongholds for the critically endangered Bornean orangutan (Pongo pygmaeus).
The corridor and parks form part of the UNESCO-designated Betung Kerihun–Danau Sentarum Biosphere Reserve, whose forests sustain hundreds of species of wildlife, including sun bears, hornbills and giant rafflesia flowers. They also provide water, food and livelihoods for Indigenous Dayak communities whose cultures are closely tied to the land.
Indonesia’s Ministry of Forestry told Mongabay in January it had become aware of the deforestation by ESR from a Mongabay social media post in September 2025. A subsequent field inspection by the Betung Kerihun and Danau Sentarum national park authorities confirmed that ESR was indeed logging the forest inside its concession and that there were pockets of orangutan habitat also located inside the concession.
According to Satya Bumi, 1,892 hectares (4,675 acres) of the forest cleared in 2025 was identified as orangutan habitat in a 2016 population and habitat viability analysis. This is a regular assessment involving government authorities and scientists, Satya Bumi told Mongabay. The analysis placed the total area of orangutan habitat within the land now included in ESR’s licensed area at nearly 4,000 hectares (about 10,000 acres).
The forestry ministry told Mongabay in January it had identified 7,335 hectares (18,125 acres) of orangutan habitat within the concession. It did not say whether any of this had been cleared by ESR. Satya Bumi said the ministry’s higher figure might be attributable to its use of more recent data, which the nonprofit doesn’t have access to.
Field surveys by Indonesian NGO LinkAR Borneo recorded at least 10 orangutan nests in the concession, the group said in a statement. All 10 are located in Labian village, LinkAR Borneo researcher Raden Deden Fajarullah told Mongabay.
First Borneo, the Jakarta-based conglomerate that owns ESR, did not respond to questions.
The deforestation has raised alarm among environmental groups, which warn that without immediate intervention, the activity could accelerate habitat fragmentation and increase human-wildlife conflict.
Just 104,700 Bornean orangutans are thought to remain in the wild, down from about 200,000 in 1999, according to WWF.
“Entering early 2026, these findings serve as a stark warning to the government, law enforcement authorities, and plantation companies,” Riezcy Cecilia Dewi, a campaigner with Satya Bumi, said in a statement. “Without firm action to stop deforestation and protect orangutan habitat, Indonesia’s commitment to biodiversity protection and sustainable forest management will continue to be questioned.”
Orangutans under siege
In a written statement to Mongabay, the management authority for the two national parks acknowledged the presence of orangutan habitat and the corridor’s ecological function inside ESR’s concession. But it did not identify any plan to halt or pause ESR’s clearing activities to protect the habitat.
Instead, the national park authority said proposals had been made to designate orangutan habitat pockets outside the concession as preservation areas, while habitat pockets located inside the concession would be proposed as areas of high conservation value (HCV). Cooperation mechanisms for managing the habitat pockets would also be established.
HCV is a land management concept used to identify and protect areas with critical ecological or social importance inside production landscapes such as oil palm and industrial timber concessions.
In Indonesia, HCV is not a formal land-use category under zoning laws. As such, any HCV set-aside inside ESR’s plantation would require the company’s agreement to preserve and would function as a voluntary conservation commitment rather than a statutory prohibition on land clearing — unless it’s reinforced through certification or contractual supply-chain requirements.
The Teraju Foundation, an Indonesian nonprofit, says “up to 80%” of the concession meets HCV standards like those put forth by the HCV Network, a network of NGOs and companies working to advance the methodology.
Any orangutan habitat would be a shoo-in for HCV status under any reasonable criteria, primate researcher Wanda Kuswanda of Indonesia’s National Research and Innovation Agency (BRIN) told Mongabay.
Designating an area as HCV can help orangutans when implemented properly, but does little good when treated as a box-ticking exercise, Wanda said. In landscapes such as the Betung Kerihun–Danau Sentarum corridor, HCV areas truly benefiting orangutans would need to be fairly wide and connected to protected forests rather than to isolated patches established only to meet minimum percentage requirements.
“The key is that the wider the corridor, the greater the potential to strengthen orangutan populations,” Wanda said.
Satya Bumi said the ESR case highlights deeper flaws in Indonesia’s plantation licensing system, notably the failure to properly integrate biodiversity data into zoning plans and permit issuance from the outset.
“The fact that most of the [concession] overlaps with orangutan habitat shows that habitat protection was not a primary consideration from the beginning,” the group said, warning that any future HCV designation in the ESR concession risks becoming a symbolic corrective layered over damage that’s already occurred.
If the government and ESR are genuinely committed to protecting orangutan habitat inside the concession, the company should reallocate, restrict or even relinquish parts of its licensed area, Satya Bumi added. Mongabay
Akwa Ibom state governor, Pastor Umo Eno Targets Non-oil Revenues, Okays N2.5bn For Palm Oil Production
The Akwa Ibom state governor, Pastor Umo Eno, has said the state was inkling towards the diversification of the economy to agriculture, tourism and other non-oil sectors, to boost the revenue profile of the state.
Speaking at the March Projects Delivery Meeting (PDM) held at the Banquet Hall, Government House, Uyo, the governor reaffirmed his administration’s commitment to timely project delivery and sustainable development.
Reviewing his administration’s scorecard since 2023, the governor gave himself a pass mark and highlighted 86 priority projects of the administration outside road, hospital, and school projects.
He emphasised the need for stronger collaboration among ministries, departments, and agencies (MDAs) to drive greater output and ensure efficient service delivery, and directed the constitution of an inter-ministerial committee to drive the completion and commissioning of Youth Friendly Centres (YFC).
The governor also addressed the state’s electricity situation, outlining ongoing reforms and clear roadmaps for Akwa Ibom State to take ownership of its power market, noting that “the current power situation is as a result of low power generation across the country,” and assured that government was engaging relevant power stakeholders towards improved power supply in the state.
Following a presentation by the Agriculture and Food Security Committee, the governor approved the sum of N2.5 billion for the procurement of over 620,000 palm seedlings for distribution to registered farmers across the 31 local government areas of the state.
“This initiative is part of efforts to boost agricultural productivity and economic growth,” adding that a formal launch of the programme would be held at a later date.
LEADERSHIP gathered that a total of 55 projects were reviewed during the meeting, with clear timelines and commissioning dates established.
Some of the projects reviewed included; the Governor’s Office Annex, AKWA-GIS House, Ibom International Convention Centre, Ibom International Hotel, Itam Industrial Park, International Market, Ikot Ekpene; Rehabilitation of AKADEP Head Office and Youth Friendly Centres.
Others included Arise Palm Resort, One Project Per LGA (Phase 2), Judiciary Village, Chairman’s Lodge, 350 Bed International Hospital, Tree Crop Revolution, Security and Command Center, AKBC House, Court of Appeal Complex, key airport infrastructure projects, Ibom farms, Arise Shopping City, Agric Equipment Leasing Company, and Ibom Hotel and Golf Resort.
Oron Maritime Infrastructure, Ibom City Bus Service, Multiple General Hospitals, AKICORP House, Agricultural initiatives, security infrastructure, and major housing developments across the State, were also reviewed. LeadershipNG
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Malaysian Palm oil gets a war boost
PETALING JAYA: Crude palm oil (CPO) prices appear to be tethered to oil price movements for the time being.
Oil has seen its importance in the workings of the global economy, underscored once again by the ongoing conflict at the Strait of Hormuz. It is more than just a fuel ingredient, it also plays a key role in various other supply chains like food, manufacturing etc.
As such, whether the recent strong rise in CPO prices is sustainable or not would boil down to how oil prices behave, at least in the short term – since it is also viewed as an alternative to oil.
CPO prices which last traded at RM4,489 per tonne are a shade lower than their six-month high recorded on March 16, whereby the commodity rose to RM4,654 per tonne. CPO prices are still much lower than what was recorded back in 2022 during the Russian-Ukraine war, where it rose in excess of RM7,100 per tonne, its historic high.
As such, prices today are largely seen as sustainable and would continue to move in tandem with oil prices – of which Brent crude oil had last traded at US$97.89 per barrel.
Brent crude oil now trades below the psychological US$100 per barrel at the time of writing as diplomatic efforts by the United States had raised hopes of easing the Middle East conflict, placating concerns over prolonged supply disruptions.
Tradeview Capital’s portfolio manager Neoh Jia Man said it is evident CPO prices have been supported by the recent spike in oil and gas prices following the Middle East conflict.
“Elevated crude prices improve the economics of biodiesel, thereby boosting demand for palm oil as an alternative fuel feedstock. At the same time, this has reinforced expectations of higher biodiesel blending mandates, particularly in Indonesia which further tightens export availability and provides additional support to CPO prices,” Neoh told StarBiz.
Whether CPO prices would continue to rise above RM4,500 per tonne will largely be contingent on the trajectory and duration of the ongoing geopolitical tensions and their impact on global energy prices, he said.
“In our view, underlying demand growth from traditional import markets remains relatively subdued, with early signs of demand destruction already emerging at elevated price levels. As such, the recent strength appears to be primarily energy-driven. Should global hydrocarbon prices moderate, we see a risk of price reversion, given the lack of strong fundamental support from food demand,” Neoh said.
The Malaysian Palm Oil Council (MPOC) said the recent vegetable oil price uptrend is supported by the Iran war coupled with the prolonged consolidation that was seen since mid-2025.
“Among the major vegetable oils, palm oil has been the price leader, rising 10% since the start of the conflict on Feb 27. In comparison, rapeseed oil rose 4%, sunflower oil increased 3%, while soybean oil gained only 1% in the global market,” the MPOC said in a statement late last week.
“The sharp rise in gas-oil prices in the global market has improved the competitiveness of biodiesel usage and blending.
“Brazil’s biodiesel industry has called for an increase in the blending mandate from B15 to B16, while Indonesia is accelerating road tests for B50 blending to reduce import reliance, although the implementation timeline remains unclear,” it added. The StarMY
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Turning palm oil’s methane problem into a climate solution
Dr Ahmad Ibrahim criticizes lethargy in realizing the climate solution
MARCH 26 — Palm oil is big business in Malaysia and Indonesia.
Together they produce more than 80 per cent of global supply.
The truth is palm oil is big business worldwide, considering the fact it leads the global trade in oils and fats.
For decades, the palm oil industry has been synonymous with environmental controversy. It still is.
But what if one of its biggest liabilities could be transformed into a powerful asset?
Beneath the steam and machinery of every palm oil mill lies a hidden energy source, currently bubbling away as a potent pollutant. It’s time to harness it. The culprit and the opportunity is Palm Oil Mill Effluent (POME).
When this wastewater decomposes in open lagoons, it releases vast amounts of methane — a greenhouse gas over 25 times more potent than CO₂.
Combine this with the mountains of leftover solid waste like empty fruit bunches, and you have a massive waste management headache.
Yet, together, these very wastes are the perfect recipe for biomethane — a renewable, clean-burning gas.
The technology is straightforward: instead of letting wastes decompose separately, we mix them in an anaerobic digester — a high-tech stomach — that captures the methane.
This process, called co-digestion, isn’t just science fiction; it’s proven, practical, and profitable.
It balances the waste streams, boosts gas production, and can power the mill, fuel vehicles, or even feed into gas grids.
It turns a cost centre into a revenue stream.
So why isn’t every mill doing this?
The roadblocks aren’t mysteries, but they are significant.
First, investment. The upfront capital for digesters and upgrading systems is high, and many millers, especially smaller operators, understandably balk.
Third, infrastructure and policy. Remote mills may lack connection to gas grids, and often, government policies offer little more than vague encouragement instead of concrete tariffs, tax incentives, or guaranteed off-take agreements.
But these challenges are surmountable, and the imperative to act is non-negotiable.
So why hesitate?
The global push for decarbonization is creating new currencies: carbon credits and green premiums.
A mill that captures its methane can tap into both.
More importantly, it can fundamentally rebrand its operations.
Imagine “carbon-neutral palm oil,” powered by its own waste, locking in premium markets and investor confidence.
The call to action is for two key players: To Industry Leaders: The first movers are already proving this works.
The challenge now is to scale, share knowledge, and drive down costs through innovation.
Treat this not as a compliance cost, but as a strategic investment in long-term viability and brand redemption.
Collaborate to create centralized biomethane hubs for smaller mills.
To Policymakers: Stop with the lukewarm endorsements.
Create a real investment landscape.
Enact strong feed-in tariffs for biomethane power.
Streamline approvals for bio-CNG projects and gas grid injection.
Offer targeted green financing and capital allowances.
Make methane capture a cornerstone of national climate action plans.
The narrative around palm oil has been stuck for too long.
Here is a tangible, powerful chance to rewrite it.
We have the waste, we have the technology, and we have a climate crisis that demands ingenuity.
Let’s stop letting our energy — and our credibility — evaporate into thin air.
It’s time to build an industry where the smokestacks of the past are replaced by the circular economies of the future.
The methane is there, waiting to be captured.
The question is, do we have the will to seize it?
The fact is Malaysia has long launched the National Biomass Action Plan.
But the execution is snail pace. Nothing much has happened.
Even the plan to create major collection centres of EFBs is showing lethargy.
In the meantime, much of the unused EFBs end up bloating the country’s not so well operated landfills.
One wonders why this lethargy.
Everyone is shouting circular economy. But the initiative to take the first step is not there.
Unless there is a bold commitment and move to change, the blueprint of the circular economy will remain just that, a plan! Malay Mail
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Palm oil company PT Equator Sumber Rezeki (ESR) clearing orangutan habitat in Indonesian Borneo despite red flags
JAKARTA — A palm oil company is ramping up its destruction of forests that are home to critically endangered orangutans in a UNESCO Biosphere Reserve on the island of Borneo, according to satellite imagery and government sources.
In October 2025, Mongabay reported that PT Equator Sumber Rezeki (ESR) had clear-cut 1,376 hectares (3,400 acres) of forest between January and August 2025, based on satellite image analysis by Satya Bumi, an Indonesian environmental nonprofit. Prior to that, ESR had cleared no more than 195 hectares (482 acres) of forest. The company is operating within a 15,000-hectare (37,000-acre) oil palm plantation concession in Kapuas Hulu, a district in Indonesia’s West Kalimantan province.
Now, an updated analysis by Satya Bumi shows that ESR further accelerated its rainforest clearing in the final quarter of 2025, razing an additional 1,492 hectares (3,687 acres) of forest from October to December. It has now cleared a total of 3,063 hectares (7,569 acres) of forest within its concession, according to Satya Bumi.
ESR’s concession overlaps with part of the Labian–Leboyan watershed, a wildlife corridor connecting Betung Kerihun and Danau Sentarum national parks — two of the last strongholds for the critically endangered Bornean orangutan (Pongo pygmaeus).
The corridor and parks form part of the UNESCO-designated Betung Kerihun–Danau Sentarum Biosphere Reserve, whose forests sustain hundreds of species of wildlife, including sun bears, hornbills and giant rafflesia flowers. They also provide water, food and livelihoods for Indigenous Dayak communities whose cultures are closely tied to the land.
Indonesia’s Ministry of Forestry told Mongabay in January it had become aware of the deforestation by ESR from a Mongabay social media post in September 2025. A subsequent field inspection by the Betung Kerihun and Danau Sentarum national park authorities confirmed that ESR was indeed logging the forest inside its concession and that there were pockets of orangutan habitat also located inside the concession.
According to Satya Bumi, 1,892 hectares (4,675 acres) of the forest cleared in 2025 was identified as orangutan habitat in a 2016 population and habitat viability analysis. This is a regular assessment involving government authorities and scientists, Satya Bumi told Mongabay. The analysis placed the total area of orangutan habitat within the land now included in ESR’s licensed area at nearly 4,000 hectares (about 10,000 acres).
The forestry ministry told Mongabay in January it had identified 7,335 hectares (18,125 acres) of orangutan habitat within the concession. It did not say whether any of this had been cleared by ESR. Satya Bumi said the ministry’s higher figure might be attributable to its use of more recent data, which the nonprofit doesn’t have access to.
Field surveys by Indonesian NGO LinkAR Borneo recorded at least 10 orangutan nests in the concession, the group said in a statement. All 10 are located in Labian village, LinkAR Borneo researcher Raden Deden Fajarullah told Mongabay.
First Borneo, the Jakarta-based conglomerate that owns ESR, did not respond to questions.
The deforestation has raised alarm among environmental groups, which warn that without immediate intervention, the activity could accelerate habitat fragmentation and increase human-wildlife conflict.
Just 104,700 Bornean orangutans are thought to remain in the wild, down from about 200,000 in 1999, according to WWF.
“Entering early 2026, these findings serve as a stark warning to the government, law enforcement authorities, and plantation companies,” Riezcy Cecilia Dewi, a campaigner with Satya Bumi, said in a statement. “Without firm action to stop deforestation and protect orangutan habitat, Indonesia’s commitment to biodiversity protection and sustainable forest management will continue to be questioned.”
Orangutans under siege
In a written statement to Mongabay, the management authority for the two national parks acknowledged the presence of orangutan habitat and the corridor’s ecological function inside ESR’s concession. But it did not identify any plan to halt or pause ESR’s clearing activities to protect the habitat.
Instead, the national park authority said proposals had been made to designate orangutan habitat pockets outside the concession as preservation areas, while habitat pockets located inside the concession would be proposed as areas of high conservation value (HCV). Cooperation mechanisms for managing the habitat pockets would also be established.
HCV is a land management concept used to identify and protect areas with critical ecological or social importance inside production landscapes such as oil palm and industrial timber concessions.
In Indonesia, HCV is not a formal land-use category under zoning laws. As such, any HCV set-aside inside ESR’s plantation would require the company’s agreement to preserve and would function as a voluntary conservation commitment rather than a statutory prohibition on land clearing — unless it’s reinforced through certification or contractual supply-chain requirements.
The Teraju Foundation, an Indonesian nonprofit, says “up to 80%” of the concession meets HCV standards like those put forth by the HCV Network, a network of NGOs and companies working to advance the methodology.
Any orangutan habitat would be a shoo-in for HCV status under any reasonable criteria, primate researcher Wanda Kuswanda of Indonesia’s National Research and Innovation Agency (BRIN) told Mongabay.
Designating an area as HCV can help orangutans when implemented properly, but does little good when treated as a box-ticking exercise, Wanda said. In landscapes such as the Betung Kerihun–Danau Sentarum corridor, HCV areas truly benefiting orangutans would need to be fairly wide and connected to protected forests rather than to isolated patches established only to meet minimum percentage requirements.
“The key is that the wider the corridor, the greater the potential to strengthen orangutan populations,” Wanda said.
Satya Bumi said the ESR case highlights deeper flaws in Indonesia’s plantation licensing system, notably the failure to properly integrate biodiversity data into zoning plans and permit issuance from the outset.
“The fact that most of the [concession] overlaps with orangutan habitat shows that habitat protection was not a primary consideration from the beginning,” the group said, warning that any future HCV designation in the ESR concession risks becoming a symbolic corrective layered over damage that’s already occurred.
If the government and ESR are genuinely committed to protecting orangutan habitat inside the concession, the company should reallocate, restrict or even relinquish parts of its licensed area, Satya Bumi added. Mongabay
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March 25, 2026
Indonesia’s Biodiesel Mandate Could Emerge As Catalyst For Palm Oil Sector
Indonesia’s proposed B45/B50 biodiesel mandate is emerging as a key growth catalyst for plantation stocks, according to RHB Investment Bank Bhd (RHB Research).
After consultations with the Indonesia Biodiesel Producer Association, RHB Research highlighted key factors influencing the mandate: Successful automotive and rail engine trials, funding availability, production capacity, Pertamina’s new Balikpapan refinery and potential revisions to biodiesel pricing formulas.
Funding and Capacity Adequate
RHB Research noted that at the current POGO spread of US$11/bbl, sufficient funding exists for B50 implementation even without 2025 carryover funds. Indonesia’s current biodiesel capacity of 22.05 million kL/year is adequate, with utilisation projected to rise to 82% under B45 and 91% under B50.
Pertamina Refinery and Diesel Supply
The US$7.4 billion Balikpapan Refinery, with 43% diesel output, will support local supply as Indonesia phases out diesel imports in 2H26. A higher mandate may reduce refinery utilisation, requiring the government to balance cost savings with refinery profitability.
Pricing and Input Costs Under Scrutiny
Rising methanol prices, up nearly 30% amid Middle East tensions, could pressure biodiesel margins. APROBI flagged potential adjustments to the fixed CPO-based pricing formula and export levies, with market-linked pricing a possible future consideration.
On that note, RHB Research retains a ‘Neutral’ sector call, with crude palm oil prices projected at RM4,250/tonne for 2026, while noting that the timing and structure of the B45/B50 mandate will remain a key driver for Indonesian-exposed plantation companies.
The analysis underscores that while short-term costs and refinery dynamics may constrain margins, the mandate provides a long-term structural boost to demand for palm oil in biodiesel production.
The research house has highlighted Johor Plantations Group Bhd, Sarawak Oil Palms Bhd, IOI Corp Bhd, PP London Sumatra Indonesia, SD Guthrie and First Resources as top sector picks. Business TodayMY
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Nigerian-American Entrepreneurs Forge Company To ‘Releaf’ Palm Waste Into Profits
Releaf not only helps the environment, it puts more profits back into the hands of small farmers in Nigeria.
Two Nigerian-American entrepreneurs returned to the motherland to lead their own impact in the oil palm market.
Ikenna Nzewi and Uzo Ayogu founded “Releaf” in 2017, which turns palm waste into environmentally-friendly profits. The duo brought technological advancements to the agricultural sector, discovering a new way to boost the value of the palm oil process.
According to Business Insider Africa, the business owners developed a palm nut processing system called Kraken to eliminate excessive waste for smaller farmers. Now, these palm nut growers can have higher yields of production, while reducing the release of harmful chemicals into the atmosphere.
Their game-changing invention came from a long line of ideas to help Releaf find its footing in the climate and agritech industry. They settled on the idea for waste reduction after voyaging across different states in Nigeria, connecting with local farmers to see where their impact was most needed.
They discovered why Nigeria regressed from the leading global palm oil producer to relying on imports for the popular vegetable oil. Advancement stalled due to the processing system: small farmers rely on manual processing methods, which require tedious work for little return.
With nearly a quarter of produce cast aside during production, Nzewi and Agoyu realized that their focus needed to be on sharpening these processes. The Kraken is more efficient and less costly than the de-shelling machines originally on the market, making it more viable for small farmers, which make up a bulk of Nigerian’s agricultural demographic.
“It took two years of intensive R&D,” Nzewi told the news outlet. “From the outset, we wanted to build West Africa’s most advanced palm nut processing technology.” Black Enterprise
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Malaysia's First Fire-Resistant Door From Oil Palm Biomass Marks Sustainable Breakthrough
KUALA LUMPUR, March 24 (Bernama) -- Weng Meng Industries Sdn Bhd has been recognised by the Malaysia Book of Records (MBR) for developing the country’s first fire-resistant door made from oil palm trunk (OPT) biomass, in a landmark achievement for both sustainability and industrial innovation.
In a statement today, MBR said the pioneering innovation transformed agricultural waste into a high-performance building material, marking a significant step forward in sustainable manufacturing and green construction solutions.
It noted that Malaysia, as one of the world’s largest palm oil producers, managed approximately 5.6 million hectares of plantations, which accounted for about 17 per cent of the nation’s land use.
According to the statement, the industry’s continuous replanting cycle generated vast amounts of oil palm trunk biomass annually, much of which previously remained underutilised due to technical and economic barriers.
"Weng Meng Industries’ breakthrough addresses this long-standing challenge by converting plantation waste into functional building components, reducing environmental impact while unlocking new industrial value streams," said the statement.
Meanwhile, MBR chief operating officer Jwan Heah, while highlighting the broader significance of the achievement, said the national record was more than just a Malaysian innovation as it represented the immense potential of repurposing widely available waste materials.
"It is a meaningful step toward reducing carbon emissions and protecting our planet.
“As a record that aligns with the nation’s sustainability agenda, we hope this milestone inspires more innovations that contribute to Malaysia’s environmental and industrial progress," he said in the same statement.
Weng Meng Industries managing director George Yap said the achievement reflected the company's commitment to advancing environmentally responsible solutions by transforming agricultural waste into high-value materials.
"By engineering a fire-resistant door core using oil palm trunk biomass, we are proving that plantation residues can be repurposed into durable, safe, and commercially viable products," he said.
-- BERNAMA
Indonesia’s Biodiesel Mandate Could Emerge As Catalyst For Palm Oil Sector
Indonesia’s proposed B45/B50 biodiesel mandate is emerging as a key growth catalyst for plantation stocks, according to RHB Investment Bank Bhd (RHB Research).
After consultations with the Indonesia Biodiesel Producer Association, RHB Research highlighted key factors influencing the mandate: Successful automotive and rail engine trials, funding availability, production capacity, Pertamina’s new Balikpapan refinery and potential revisions to biodiesel pricing formulas.
Funding and Capacity Adequate
RHB Research noted that at the current POGO spread of US$11/bbl, sufficient funding exists for B50 implementation even without 2025 carryover funds. Indonesia’s current biodiesel capacity of 22.05 million kL/year is adequate, with utilisation projected to rise to 82% under B45 and 91% under B50.
Pertamina Refinery and Diesel Supply
The US$7.4 billion Balikpapan Refinery, with 43% diesel output, will support local supply as Indonesia phases out diesel imports in 2H26. A higher mandate may reduce refinery utilisation, requiring the government to balance cost savings with refinery profitability.
Pricing and Input Costs Under Scrutiny
Rising methanol prices, up nearly 30% amid Middle East tensions, could pressure biodiesel margins. APROBI flagged potential adjustments to the fixed CPO-based pricing formula and export levies, with market-linked pricing a possible future consideration.
On that note, RHB Research retains a ‘Neutral’ sector call, with crude palm oil prices projected at RM4,250/tonne for 2026, while noting that the timing and structure of the B45/B50 mandate will remain a key driver for Indonesian-exposed plantation companies.
The analysis underscores that while short-term costs and refinery dynamics may constrain margins, the mandate provides a long-term structural boost to demand for palm oil in biodiesel production.
The research house has highlighted Johor Plantations Group Bhd, Sarawak Oil Palms Bhd, IOI Corp Bhd, PP London Sumatra Indonesia, SD Guthrie and First Resources as top sector picks. Business TodayMY
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Nigerian-American Entrepreneurs Forge Company To ‘Releaf’ Palm Waste Into Profits
Releaf not only helps the environment, it puts more profits back into the hands of small farmers in Nigeria.
Two Nigerian-American entrepreneurs returned to the motherland to lead their own impact in the oil palm market.
Ikenna Nzewi and Uzo Ayogu founded “Releaf” in 2017, which turns palm waste into environmentally-friendly profits. The duo brought technological advancements to the agricultural sector, discovering a new way to boost the value of the palm oil process.
According to Business Insider Africa, the business owners developed a palm nut processing system called Kraken to eliminate excessive waste for smaller farmers. Now, these palm nut growers can have higher yields of production, while reducing the release of harmful chemicals into the atmosphere.
Their game-changing invention came from a long line of ideas to help Releaf find its footing in the climate and agritech industry. They settled on the idea for waste reduction after voyaging across different states in Nigeria, connecting with local farmers to see where their impact was most needed.
They discovered why Nigeria regressed from the leading global palm oil producer to relying on imports for the popular vegetable oil. Advancement stalled due to the processing system: small farmers rely on manual processing methods, which require tedious work for little return.
With nearly a quarter of produce cast aside during production, Nzewi and Agoyu realized that their focus needed to be on sharpening these processes. The Kraken is more efficient and less costly than the de-shelling machines originally on the market, making it more viable for small farmers, which make up a bulk of Nigerian’s agricultural demographic.
“It took two years of intensive R&D,” Nzewi told the news outlet. “From the outset, we wanted to build West Africa’s most advanced palm nut processing technology.” Black Enterprise
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Malaysia's First Fire-Resistant Door From Oil Palm Biomass Marks Sustainable Breakthrough
KUALA LUMPUR, March 24 (Bernama) -- Weng Meng Industries Sdn Bhd has been recognised by the Malaysia Book of Records (MBR) for developing the country’s first fire-resistant door made from oil palm trunk (OPT) biomass, in a landmark achievement for both sustainability and industrial innovation.
In a statement today, MBR said the pioneering innovation transformed agricultural waste into a high-performance building material, marking a significant step forward in sustainable manufacturing and green construction solutions.
It noted that Malaysia, as one of the world’s largest palm oil producers, managed approximately 5.6 million hectares of plantations, which accounted for about 17 per cent of the nation’s land use.
According to the statement, the industry’s continuous replanting cycle generated vast amounts of oil palm trunk biomass annually, much of which previously remained underutilised due to technical and economic barriers.
"Weng Meng Industries’ breakthrough addresses this long-standing challenge by converting plantation waste into functional building components, reducing environmental impact while unlocking new industrial value streams," said the statement.
Meanwhile, MBR chief operating officer Jwan Heah, while highlighting the broader significance of the achievement, said the national record was more than just a Malaysian innovation as it represented the immense potential of repurposing widely available waste materials.
"It is a meaningful step toward reducing carbon emissions and protecting our planet.
“As a record that aligns with the nation’s sustainability agenda, we hope this milestone inspires more innovations that contribute to Malaysia’s environmental and industrial progress," he said in the same statement.
Weng Meng Industries managing director George Yap said the achievement reflected the company's commitment to advancing environmentally responsible solutions by transforming agricultural waste into high-value materials.
"By engineering a fire-resistant door core using oil palm trunk biomass, we are proving that plantation residues can be repurposed into durable, safe, and commercially viable products," he said.
-- BERNAMA
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March 23, 2026
Prabowo emphasizes national interests in RI-US trade agreements
Jakarta (ANTARA) - Indonesian President Prabowo Subianto said on Sunday the government will safeguard national interests in all policymaking, including the Agreement on Reciprocal Trade (ART) with the United States.
“You must believe that I prioritize Indonesia’s national interests,” he said in remarks broadcast in the “Prabowo Answers” program released by the Indonesian Government Communications Agency.
“If I think our national interests are threatened by any agreement, then we can leave it,” he added.
Prabowo said the agreement had undergone thorough evaluation before approval, with one key provision reducing trade tariffs from 32 percent to 19 percent.
He also noted that Indonesia received what he described as special treatment from US President Donald Trump under the deal.
The government retains room to renegotiate should the agreement prove detrimental to domestic interests.
“We agreed that if there are provisions not in line with the agreement or contrary to the interests of both parties, adjustment clauses will apply,” Prabowo said.
He added that the clause offers Indonesia flexibility to safeguard its economic sovereignty, describing it as a distinctive feature compared with other US trade arrangements.
From a trade perspective, Indonesia stands to benefit through broader market access, he said, with 1,819 strategic commodities granted zero-tariff entry to the United States.
Key exports such as coffee and palm oil are included among products eligible for tariff elimination, a move expected to benefit domestic producers and exporters.
The president said Indonesia would take a measured approach in responding to global trade dynamics and would not automatically follow policies adopted by neighboring countries.
He cited, for example, decisions by some countries such as Malaysia to unilaterally withdraw from trade arrangements, stressing that Indonesia would act based on careful consideration.
Prabowo emphasized that all economic diplomacy would be guided by a clear assessment of benefits for the Indonesian people.
He reiterated that maintaining national interests remains the government’s top priority in navigating international agreements and partnerships. Antara News
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Telangana CM inaugurates ₹300 crore palm oil factory
He also released the first tranche (₹3,447 crore) of the Rythu Bharosa funds; the scheme provides financial assistance to farmers to buy farm inputs ahead of the kharif season
Telangana Chief Minister A Revanth Reddy has inaugurated a palm oil processing factory in Narmetta, Siddhipet district. The State government invested ₹300 crore in this facility, which can process 30 tonnes of fresh oil palm fruit bunches per hour.
He also released the first tranche (₹3,447 crore) of the Rythu Bharosa funds. The scheme provides financial assistance to farmers to buy farm inputs.
As many as 70 lakh farmers will be covered under the scheme. The funds are being released in three tranches over 45 days ahead of the upcoming season. The Hindu Businessline
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Oil palm mission rolled out in Chümoukedima
Nagaland launches mega oil palm plantation drive at Chümoukedima to boost farmers’ income and reduce edible oil imports.
DIMAPUR — The Department of Agriculture, Government of Nagaland, launched ‘Mega oil palm plantation drive’ under the National Mission on Edible Oils – Oil Palm (NMEO-OP) 2025-26 at Doyapur Council Hall, Chümoukedima, on March 20.
Addressing the gathering, SDO (Civil) Dhansiripar, Vejoyo Swuro highlighted that the initiative would generate employment opportunities for the public and urged citizens to avail and benefit from such schemes, a DIPR report stated.
The official said that Dhansiripar sub-division has fertile land and encouraged the farmers to adopt sustainable farming practices for long-term benefits.
Swuro acknowledged the significant contribution of farmers to the country’s GDP and assured that the district administration would extend all possible support to the farming community.
He emphasised the importance of maintaining sufficient food stock to meet any crisis, and motivated farmers to actively engage in agriculture as a means of livelihood and economic advancement.
He further stressed the need for dedication and hard work to ensure the success of the programme, stating that the overall objective is to empower farmers while creating sustainable economic and employment opportunities in the region.
Delivering the keynote address, DAO Chumoukedima Moainla Pongen, stated that the programme marks the beginning of an economic transformation for the region, with a focus on reducing India’s dependency on imported palm oil.
She pointed out that the country currently imports nearly 60 percent of its domestic requirement, resulting in significant annual expenditure, and emphasised that the National Mission on Edible Oils–Oil Palm (NMEO-OP) seeks to address this gap by creating a self-sustaining ecosystem for production.
She informed that the initiative in Nagaland will primarily cover eight districts, focusing on foothill areas suitable for oil palm cultivation. Addressing concerns surrounding the crop, she clarified that oil palm is a viable and efficient option due to its better root system and comparatively lower water usage than crops like sugarcane.
Additionally, Pongen assured that cultivation would be carried out in a sustainable manner, making use of wastelands while also promoting intercropping practices.
She said that the Department of Agriculture has entered into MoUs with Godrej Agrovet Ltd. and Patanjali foods to ensure assured market linkages for farmers.
She added that Godrej Agrovet has plans to establish custom hiring centres at Doyapur, a one-stop solution centre, and a nursery at Dhansiripar to support farmers in the cultivation process.
She further assured that the government is fully committed to the success of the initiative by providing free saplings, ensuring remunerative prices for produce, facilitating inter-company coordination, and extending financial and field-level assistance to farmers.
She called for active collaboration between the Department of Agriculture, farmers, and the government to make the mission a success and encouraged all stakeholders to actively participate in the national oil palm movement.
NMEO-OP is a centrally sponsored scheme launched in 2021, designed to achieve self-reliance (Atmanirbharta) in edible oils. Its primary goal is to significantly increase domestic Crude Palm Oil (CPO) production and expand oil palm cultivation areas to reduce India's heavy reliance on expensive imports.
Short speeches were delivered by Senior Officer, GAVL Dr. Benjongtoshi Imchen and Manager (Market Development, GAVL) Muthuselvan. Eastern Mirror Nagaland
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Prabowo emphasizes national interests in RI-US trade agreements
Jakarta (ANTARA) - Indonesian President Prabowo Subianto said on Sunday the government will safeguard national interests in all policymaking, including the Agreement on Reciprocal Trade (ART) with the United States.
“You must believe that I prioritize Indonesia’s national interests,” he said in remarks broadcast in the “Prabowo Answers” program released by the Indonesian Government Communications Agency.
“If I think our national interests are threatened by any agreement, then we can leave it,” he added.
Prabowo said the agreement had undergone thorough evaluation before approval, with one key provision reducing trade tariffs from 32 percent to 19 percent.
He also noted that Indonesia received what he described as special treatment from US President Donald Trump under the deal.
The government retains room to renegotiate should the agreement prove detrimental to domestic interests.
“We agreed that if there are provisions not in line with the agreement or contrary to the interests of both parties, adjustment clauses will apply,” Prabowo said.
He added that the clause offers Indonesia flexibility to safeguard its economic sovereignty, describing it as a distinctive feature compared with other US trade arrangements.
From a trade perspective, Indonesia stands to benefit through broader market access, he said, with 1,819 strategic commodities granted zero-tariff entry to the United States.
Key exports such as coffee and palm oil are included among products eligible for tariff elimination, a move expected to benefit domestic producers and exporters.
The president said Indonesia would take a measured approach in responding to global trade dynamics and would not automatically follow policies adopted by neighboring countries.
He cited, for example, decisions by some countries such as Malaysia to unilaterally withdraw from trade arrangements, stressing that Indonesia would act based on careful consideration.
Prabowo emphasized that all economic diplomacy would be guided by a clear assessment of benefits for the Indonesian people.
He reiterated that maintaining national interests remains the government’s top priority in navigating international agreements and partnerships. Antara News
--------
Telangana CM inaugurates ₹300 crore palm oil factory
He also released the first tranche (₹3,447 crore) of the Rythu Bharosa funds; the scheme provides financial assistance to farmers to buy farm inputs ahead of the kharif season
Telangana Chief Minister A Revanth Reddy has inaugurated a palm oil processing factory in Narmetta, Siddhipet district. The State government invested ₹300 crore in this facility, which can process 30 tonnes of fresh oil palm fruit bunches per hour.
He also released the first tranche (₹3,447 crore) of the Rythu Bharosa funds. The scheme provides financial assistance to farmers to buy farm inputs.
As many as 70 lakh farmers will be covered under the scheme. The funds are being released in three tranches over 45 days ahead of the upcoming season. The Hindu Businessline
--------
Oil palm mission rolled out in Chümoukedima
Nagaland launches mega oil palm plantation drive at Chümoukedima to boost farmers’ income and reduce edible oil imports.
DIMAPUR — The Department of Agriculture, Government of Nagaland, launched ‘Mega oil palm plantation drive’ under the National Mission on Edible Oils – Oil Palm (NMEO-OP) 2025-26 at Doyapur Council Hall, Chümoukedima, on March 20.
Addressing the gathering, SDO (Civil) Dhansiripar, Vejoyo Swuro highlighted that the initiative would generate employment opportunities for the public and urged citizens to avail and benefit from such schemes, a DIPR report stated.
The official said that Dhansiripar sub-division has fertile land and encouraged the farmers to adopt sustainable farming practices for long-term benefits.
Swuro acknowledged the significant contribution of farmers to the country’s GDP and assured that the district administration would extend all possible support to the farming community.
He emphasised the importance of maintaining sufficient food stock to meet any crisis, and motivated farmers to actively engage in agriculture as a means of livelihood and economic advancement.
He further stressed the need for dedication and hard work to ensure the success of the programme, stating that the overall objective is to empower farmers while creating sustainable economic and employment opportunities in the region.
Delivering the keynote address, DAO Chumoukedima Moainla Pongen, stated that the programme marks the beginning of an economic transformation for the region, with a focus on reducing India’s dependency on imported palm oil.
She pointed out that the country currently imports nearly 60 percent of its domestic requirement, resulting in significant annual expenditure, and emphasised that the National Mission on Edible Oils–Oil Palm (NMEO-OP) seeks to address this gap by creating a self-sustaining ecosystem for production.
She informed that the initiative in Nagaland will primarily cover eight districts, focusing on foothill areas suitable for oil palm cultivation. Addressing concerns surrounding the crop, she clarified that oil palm is a viable and efficient option due to its better root system and comparatively lower water usage than crops like sugarcane.
Additionally, Pongen assured that cultivation would be carried out in a sustainable manner, making use of wastelands while also promoting intercropping practices.
She said that the Department of Agriculture has entered into MoUs with Godrej Agrovet Ltd. and Patanjali foods to ensure assured market linkages for farmers.
She added that Godrej Agrovet has plans to establish custom hiring centres at Doyapur, a one-stop solution centre, and a nursery at Dhansiripar to support farmers in the cultivation process.
She further assured that the government is fully committed to the success of the initiative by providing free saplings, ensuring remunerative prices for produce, facilitating inter-company coordination, and extending financial and field-level assistance to farmers.
She called for active collaboration between the Department of Agriculture, farmers, and the government to make the mission a success and encouraged all stakeholders to actively participate in the national oil palm movement.
NMEO-OP is a centrally sponsored scheme launched in 2021, designed to achieve self-reliance (Atmanirbharta) in edible oils. Its primary goal is to significantly increase domestic Crude Palm Oil (CPO) production and expand oil palm cultivation areas to reduce India's heavy reliance on expensive imports.
Short speeches were delivered by Senior Officer, GAVL Dr. Benjongtoshi Imchen and Manager (Market Development, GAVL) Muthuselvan. Eastern Mirror Nagaland
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March 22, 2026
Malaysia’s Exports to Nigeria Grows by 20.7% in 2025
Malaysia’s exports to Nigeria grew by 20.7 per cent in 2025, reaching $664 million, underscoring strengthening bilateral trade ties and deepening economic engagement between the two countries amid an evolving global trade landscape.
The export growth was driven primarily by increased exports of palm oil and palm oil-based agricultural products, which rose by 33.7 per cent.
This was followed by strong growth in transport equipment (1,260 per cent growth), machinery, equipment and parts (44.8 per cent growth), and processed food (28.1per cent growth).
During the same period, Malaysia key imports from Nigeria comprised agricultural products (54.7 per cent), petroleum products (22.9 per cent), metalliferous ores and metal scrap (10.3 per cent), and crude petroleum (4.3 per cent).
Total bilateral trade between Malaysia and Nigeria in 2025 reached $1.23 billion, positioning Nigeria as Malaysia’s fourth-largest trading partner in Africa and 43rd globally.
The High Commissioner of Malaysia to Nigeria, H.E. Aiyub Omar, welcomed the positive trajectory of bilateral trade, noting that the sustained growth provides a strong foundation for enhanced strategic and economic cooperation between both nations.
He highlighted that Malaysian companies are not only exporting goods to Nigeria but are also actively contributing through services and expertise particularly in priority sectors identified by the Nigerian Government such as the development of the palm oil industry.
Malaysian participation spans Build-Operate-Transfer (BOT) arrangements, plantation management, infrastructure development, technical services, and technology transfer, all of which are critical in supporting Nigeria’s ambition to strengthen its position as a major global palm oil producer.
Currently, Malaysian companies are involved in the development of approximately 151,800 hectares of oil palm plantations in Nigeria, reflecting Malaysia’s growing role as a strategic partner in agricultural development.
The High Commissioner further emphasised that the Halal industry represents another key area of collaboration, in line with Nigeria’s ongoing efforts to develop its national Halal ecosystem.
Malaysia’s global Halal exports were valued at $13.43 billion in 2024 and are projected to reach $18.98 billion by 2030. Malaysia continues to champion the global Halal ecosystem through the Malaysia International Halal Showcase (MIHAS), scheduled to take place from 23 to 26 September 2026. The previous edition, MIHAS 2025, attracted participation from 80 countries, facilitated over 4,000 business meetings, and generated USD1.53 billion in sales value.
Meanwhile, Counsellor (Trade), MATRADE Lagos, Mr. Jude Bryan S.Dass noted strong interest from Nigerian buyers to participate in MIHAS 2026. In MIHAS 2025, a total of 8 buyers from Nigeria and 21 buyers from West Africa participated. Stronger attendance is anticipated this year, including increased representation from Nigerian exhibitors and buyers.
He further highlighted healthcare services, particularly medical tourism, as a promising avenue for collaboration. Nigerians are estimated to spend between $1.5 billion and $3 billion annually on medical tourism, with key destinations including India, the United Arab Emirates, and the United Kingdom.
Malaysia offers high-quality and cost-competitive healthcare services, supported by a robust healthcare system comprising 194 private hospitals and 17,832 beds. Key areas of medical expertise include gastroenterology, surgical oncology, orthopaedics, fertility treatment, and bariatric care.
Malaysia’s medical tourism industry, valued at $687.35 million, is projected to grow to $2 billion by 2030, positioning the country as a competitive and attractive destination for Nigerian patients seeking specialised treatment abroad. This Day Live
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Meet the founders who raised over $10 million from palm processing and the waste it leaves behind in Africa
Founded in 2017 by Ikenna Nzewi and Uzo Ayogu, Releaf has grown from a simple agricultural marketplace into a company building its own processing technology and turning palm waste into climate value. The founders, Americans of Nigerian descent, returned to Nigeria to tackle challenges in Africa’s largest oil palm market, raising over $10 million along the way.
Ikenna Nzewi and his friend Uzoma Ayogu started the company in 2017 with a simple belief, that Africa’s food system was broken in ways that could be fixed, and that solving it could lead to something much bigger.
That ambition got Releaf into Y Combinator in 2017, placing the startup among a new wave of globally backed African ventures. But getting into one of Silicon Valley’s most prestigious accelerators didn’t mean they had everything figured out.
In its early days, Releaf experimented. It moved between ideas, from an agricultural marketplace to trade finance, searching for something that could truly work within the realities of African markets.
That search eventually led Nzewi and Ayogu, both Americans of Nigerian descent and then students at Yale and Duke, back to Nigeria, their country of origin and Africa’s largest producer of oil palm. They travelled across 20 of Nigeria’s 36 states, trying to understand where technology could actually make a difference. What they found was not just a gap. It was a collapse. Africa Business Insider
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Large Palm Waste Potential, Academics Encourage Hydrocarbonization and Revision of Regulations
JAKARTA - Palm oil waste is considered to have great economic potential if processed with the right technology. In addition to increasing the added value of the palm oil industry, waste utilization can also support the development of renewable energy and the concept of a circular economy.
Professor of the Faculty of Forestry, IPB University, Yanto Santosa, said that the availability of palm oil waste in Indonesia is so abundant that it has the potential to be processed into various high-value-added products that are environmentally friendly.
"Palm oil waste has great potential to be used to produce products that have economic added value," said Yanto in Jakarta, Sunday, March 22.
According to him, the optimization of the utilization of palm waste can provide various benefits, ranging from increasing the added value of the industry, creating new business opportunities, to supporting the circular economy concept.
He assessed that palm oil is a national strategic commodity that can be categorized as a zero waste commodity because almost all parts of the plant can be processed into value-added products.
However, he reminded that the management of palm waste needs to be supported by government policies, including through research collaboration and technological innovation. In this case, Yanto encouraged the role of the Palm Oil Plantation Fund Management Agency (BPDP) to work with research institutions to develop palm waste processing technology.
"The collaboration between BPDP and research institutions will provide various benefits in the development of palm waste processing innovations," he said.
Meanwhile, the Executive Director of the Palm Oil Agribusiness Strategic Policy Institute (PASPI), Tungkot Sipayung, assessed that the term waste in the palm oil industry was actually not appropriate because most of them were byproducts that still had economic value.
According to him, the main products of the palm oil industry are crude palm oil (CPO) and palm kernel oil (CPKO), while various other products are follow-up products that can be utilized in various industrial sectors.
However, until now, some of these by-products are still categorized as waste in environmental regulations, and some even fall into the category of hazardous and toxic materials (B3) waste.
"In fact, everything comes from organic materials. This classification is actually an obstacle in commercialization because it requires special permits and industrial treatment," he said.
Tungkot assessed that the revision of the regulation would open up opportunities for the wider development of the palm oil by-product utilization industry and contribute to increasing foreign exchange and job creation.
In addition, the utilization of by-products also has the potential to reduce the carbon footprint of the palm oil industry so that it can strengthen Indonesia's position as a low-emission renewable energy commodity. Voice of Indonesia
Malaysia’s Exports to Nigeria Grows by 20.7% in 2025
Malaysia’s exports to Nigeria grew by 20.7 per cent in 2025, reaching $664 million, underscoring strengthening bilateral trade ties and deepening economic engagement between the two countries amid an evolving global trade landscape.
The export growth was driven primarily by increased exports of palm oil and palm oil-based agricultural products, which rose by 33.7 per cent.
This was followed by strong growth in transport equipment (1,260 per cent growth), machinery, equipment and parts (44.8 per cent growth), and processed food (28.1per cent growth).
During the same period, Malaysia key imports from Nigeria comprised agricultural products (54.7 per cent), petroleum products (22.9 per cent), metalliferous ores and metal scrap (10.3 per cent), and crude petroleum (4.3 per cent).
Total bilateral trade between Malaysia and Nigeria in 2025 reached $1.23 billion, positioning Nigeria as Malaysia’s fourth-largest trading partner in Africa and 43rd globally.
The High Commissioner of Malaysia to Nigeria, H.E. Aiyub Omar, welcomed the positive trajectory of bilateral trade, noting that the sustained growth provides a strong foundation for enhanced strategic and economic cooperation between both nations.
He highlighted that Malaysian companies are not only exporting goods to Nigeria but are also actively contributing through services and expertise particularly in priority sectors identified by the Nigerian Government such as the development of the palm oil industry.
Malaysian participation spans Build-Operate-Transfer (BOT) arrangements, plantation management, infrastructure development, technical services, and technology transfer, all of which are critical in supporting Nigeria’s ambition to strengthen its position as a major global palm oil producer.
Currently, Malaysian companies are involved in the development of approximately 151,800 hectares of oil palm plantations in Nigeria, reflecting Malaysia’s growing role as a strategic partner in agricultural development.
The High Commissioner further emphasised that the Halal industry represents another key area of collaboration, in line with Nigeria’s ongoing efforts to develop its national Halal ecosystem.
Malaysia’s global Halal exports were valued at $13.43 billion in 2024 and are projected to reach $18.98 billion by 2030. Malaysia continues to champion the global Halal ecosystem through the Malaysia International Halal Showcase (MIHAS), scheduled to take place from 23 to 26 September 2026. The previous edition, MIHAS 2025, attracted participation from 80 countries, facilitated over 4,000 business meetings, and generated USD1.53 billion in sales value.
Meanwhile, Counsellor (Trade), MATRADE Lagos, Mr. Jude Bryan S.Dass noted strong interest from Nigerian buyers to participate in MIHAS 2026. In MIHAS 2025, a total of 8 buyers from Nigeria and 21 buyers from West Africa participated. Stronger attendance is anticipated this year, including increased representation from Nigerian exhibitors and buyers.
He further highlighted healthcare services, particularly medical tourism, as a promising avenue for collaboration. Nigerians are estimated to spend between $1.5 billion and $3 billion annually on medical tourism, with key destinations including India, the United Arab Emirates, and the United Kingdom.
Malaysia offers high-quality and cost-competitive healthcare services, supported by a robust healthcare system comprising 194 private hospitals and 17,832 beds. Key areas of medical expertise include gastroenterology, surgical oncology, orthopaedics, fertility treatment, and bariatric care.
Malaysia’s medical tourism industry, valued at $687.35 million, is projected to grow to $2 billion by 2030, positioning the country as a competitive and attractive destination for Nigerian patients seeking specialised treatment abroad. This Day Live
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Meet the founders who raised over $10 million from palm processing and the waste it leaves behind in Africa
Founded in 2017 by Ikenna Nzewi and Uzo Ayogu, Releaf has grown from a simple agricultural marketplace into a company building its own processing technology and turning palm waste into climate value. The founders, Americans of Nigerian descent, returned to Nigeria to tackle challenges in Africa’s largest oil palm market, raising over $10 million along the way.
- Releaf, founded in 2017 by Ikenna Nzewi and Uzo Ayogu, has evolved from an agricultural marketplace into a tech-driven processor focused on Nigeria's palm oil industry.
- They developed Kraken, a proprietary palm nut processing system, to address inefficiencies and waste in traditional methods for smallholder farmers.
- Releaf's innovations have improved farmer yields and attracted over $10 million in funding despite a tougher investment climate.
- By 2030, Releaf aims to remove 700,000 metric tons of CO₂, recycle 50,000 tons of waste, produce 20,000 tons of biochar annually, and impact over one million farmers with over 500 new jobs.
Ikenna Nzewi and his friend Uzoma Ayogu started the company in 2017 with a simple belief, that Africa’s food system was broken in ways that could be fixed, and that solving it could lead to something much bigger.
That ambition got Releaf into Y Combinator in 2017, placing the startup among a new wave of globally backed African ventures. But getting into one of Silicon Valley’s most prestigious accelerators didn’t mean they had everything figured out.
In its early days, Releaf experimented. It moved between ideas, from an agricultural marketplace to trade finance, searching for something that could truly work within the realities of African markets.
That search eventually led Nzewi and Ayogu, both Americans of Nigerian descent and then students at Yale and Duke, back to Nigeria, their country of origin and Africa’s largest producer of oil palm. They travelled across 20 of Nigeria’s 36 states, trying to understand where technology could actually make a difference. What they found was not just a gap. It was a collapse. Africa Business Insider
--------
Large Palm Waste Potential, Academics Encourage Hydrocarbonization and Revision of Regulations
JAKARTA - Palm oil waste is considered to have great economic potential if processed with the right technology. In addition to increasing the added value of the palm oil industry, waste utilization can also support the development of renewable energy and the concept of a circular economy.
Professor of the Faculty of Forestry, IPB University, Yanto Santosa, said that the availability of palm oil waste in Indonesia is so abundant that it has the potential to be processed into various high-value-added products that are environmentally friendly.
"Palm oil waste has great potential to be used to produce products that have economic added value," said Yanto in Jakarta, Sunday, March 22.
According to him, the optimization of the utilization of palm waste can provide various benefits, ranging from increasing the added value of the industry, creating new business opportunities, to supporting the circular economy concept.
He assessed that palm oil is a national strategic commodity that can be categorized as a zero waste commodity because almost all parts of the plant can be processed into value-added products.
However, he reminded that the management of palm waste needs to be supported by government policies, including through research collaboration and technological innovation. In this case, Yanto encouraged the role of the Palm Oil Plantation Fund Management Agency (BPDP) to work with research institutions to develop palm waste processing technology.
"The collaboration between BPDP and research institutions will provide various benefits in the development of palm waste processing innovations," he said.
Meanwhile, the Executive Director of the Palm Oil Agribusiness Strategic Policy Institute (PASPI), Tungkot Sipayung, assessed that the term waste in the palm oil industry was actually not appropriate because most of them were byproducts that still had economic value.
According to him, the main products of the palm oil industry are crude palm oil (CPO) and palm kernel oil (CPKO), while various other products are follow-up products that can be utilized in various industrial sectors.
However, until now, some of these by-products are still categorized as waste in environmental regulations, and some even fall into the category of hazardous and toxic materials (B3) waste.
"In fact, everything comes from organic materials. This classification is actually an obstacle in commercialization because it requires special permits and industrial treatment," he said.
Tungkot assessed that the revision of the regulation would open up opportunities for the wider development of the palm oil by-product utilization industry and contribute to increasing foreign exchange and job creation.
In addition, the utilization of by-products also has the potential to reduce the carbon footprint of the palm oil industry so that it can strengthen Indonesia's position as a low-emission renewable energy commodity. Voice of Indonesia
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March 21, 2026
Arbitrator to set level of trade suspension in Indonesia-EU palm oil biofuels dispute
A WTO arbitrator was tasked on 19 March with determining the level of trade suspension Indonesia may impose on the European Union in the palm oil biofuels dispute, following Indonesia's request to suspend concessions worth US$ 2.8-5.6 billion annually. At the same meeting, the Dispute Settlement Body (DSB) also agreed to the EU's second request for a panel to review Chinese measures on global licensing terms for standard essential patents.
DS593: European Union - Certain Measures Concerning Palm Oil and Oil Palm Crop-Based Biofuels
On 9 March, Indonesia submitted a request for authorization to suspend concessions with respect to the European Union as a result of what it said was the EU's failure to bring its measures into compliance with the panel ruling in DS593.
Indonesia told a special DSB meeting on 19 March that the reasonable period of time for the EU to comply with the ruling was 24 February and that, in its view, the EU failed to ensure compliance by that date. As a result, Indonesia said it was requesting DSB authorization to suspend concessions on goods and/or other sectors (services sectors and/or intellectual property rights) at an annual level estimated at between US$ 2.8 billion and US$ 5.6 billion per annum. Indonesia said the proposed level of suspension reflects the adverse effect and the nullification or impairment of benefits suffered by Indonesia's palm oil industry since the implementation of the EU measures.
The European Union said it strongly objects to Indonesia's proposed level of suspension and said the proposal was not in line with requirements under the WTO's Dispute Settlement Understanding (DSU). The EU also said that it had offered Indonesia a so-called sequencing agreement which would remove any procedural uncertainty regarding Indonesia's right to pursue its request.
Indonesia said the absence of a sequencing agreement at this stage is a direct consequence of the untimely nature of the EU's offer, which did not allow sufficient time for meaningful domestic engagement with its domestic industry.
The DSB agreed to refer the matter to arbitration, as required by Article 22.6 of the DSU. WTO
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EU STATEMENTS AS DELIVERED AT THE SPECIAL DSB MEETING, 19 MARCH 2026
Statements made by Mr. Davide GRESPAN, Minister-Counsellor
AGENDA POINT 1: EUROPEAN UNION AND CERTAIN MEMBER STATES – CERTAIN MEASURES CONCERNING PALM OIL AND OIL PALM CROP-BASED BIOFUELS
Arbitrator to set level of trade suspension in Indonesia-EU palm oil biofuels dispute
A WTO arbitrator was tasked on 19 March with determining the level of trade suspension Indonesia may impose on the European Union in the palm oil biofuels dispute, following Indonesia's request to suspend concessions worth US$ 2.8-5.6 billion annually. At the same meeting, the Dispute Settlement Body (DSB) also agreed to the EU's second request for a panel to review Chinese measures on global licensing terms for standard essential patents.
DS593: European Union - Certain Measures Concerning Palm Oil and Oil Palm Crop-Based Biofuels
On 9 March, Indonesia submitted a request for authorization to suspend concessions with respect to the European Union as a result of what it said was the EU's failure to bring its measures into compliance with the panel ruling in DS593.
Indonesia told a special DSB meeting on 19 March that the reasonable period of time for the EU to comply with the ruling was 24 February and that, in its view, the EU failed to ensure compliance by that date. As a result, Indonesia said it was requesting DSB authorization to suspend concessions on goods and/or other sectors (services sectors and/or intellectual property rights) at an annual level estimated at between US$ 2.8 billion and US$ 5.6 billion per annum. Indonesia said the proposed level of suspension reflects the adverse effect and the nullification or impairment of benefits suffered by Indonesia's palm oil industry since the implementation of the EU measures.
The European Union said it strongly objects to Indonesia's proposed level of suspension and said the proposal was not in line with requirements under the WTO's Dispute Settlement Understanding (DSU). The EU also said that it had offered Indonesia a so-called sequencing agreement which would remove any procedural uncertainty regarding Indonesia's right to pursue its request.
Indonesia said the absence of a sequencing agreement at this stage is a direct consequence of the untimely nature of the EU's offer, which did not allow sufficient time for meaningful domestic engagement with its domestic industry.
The DSB agreed to refer the matter to arbitration, as required by Article 22.6 of the DSU. WTO
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EU STATEMENTS AS DELIVERED AT THE SPECIAL DSB MEETING, 19 MARCH 2026
Statements made by Mr. Davide GRESPAN, Minister-Counsellor
AGENDA POINT 1: EUROPEAN UNION AND CERTAIN MEMBER STATES – CERTAIN MEASURES CONCERNING PALM OIL AND OIL PALM CROP-BASED BIOFUELS
- Recourse to Article 22.2 of the DSU by Indonesia (WT/DS593/20)
- The EU refers to its communication pursuant to Article 22.6 of the DSU which was notified to the DSB ahead of this meeting
- The EU notes that Indonesia states that it considers that the EU has failed to comply with the DSB recommendations and rulings in European Union — Certain Measures Concerning Palm Oil and Oil Palm Crop-Based Biofuels (WT/DS593/20), and that it requests authorization from the DSB to suspend the application of concessions or other obligations under the WTO covered agreements to the EU pursuant to Article 22.2 of the DSU.
- The EU hereby formally objects to Indonesia’s proposal. In particular, the EU strongly objects to the level of suspension of concessions or other obligations contained in the Indonesian request and claims that the principles and procedures set forth in Article 22.3 of the DSU have not been followed and that the proposal is not allowed under the covered agreements.
- The European Union further notes that it has acted transparently with respect to its implementation of the recommendations or rulings of the Dispute Settlement Body in this dispute and that it has offered a so-called “sequencing agreement” to Indonesia which would remove any procedural uncertainty regarding Indonesia’s rights pursuant to Article 22 of the DSU. The European Union therefore regrets Indonesia’s recourse to Article 22.2 of the DSU in those circumstances.
- The EU requests the matter to be referred to arbitration pursuant to Article 22.6 of the DSU, recalling that, according to this provision, concessions or other obligations shall not be suspended during the course of the arbitration.
- The EU refers to its status reports and earlier statements in the DSB on this matter. Europa
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Industry and NGOs Urge EU to Avoid New Changes to Deforestation Law - Companies and NGOs warn against reopening the EU deforestation regulation again
- Repeated delays have already pushed implementation to 2026–2027
- The April review is seen as a critical test of the EU’s environmental credibility
- A coalition of agribusiness firms, NGOs, and multi-stakeholder platforms is pushing back against any further revision of the European Union’s deforestation law ahead of a scheduled review in April.
In a letter sent on March 17 to EU Environment Commissioner Jessika Roswall, the group—whose signatories include Nestlé, Barry Callebaut, and Danone—called on the Commission to oppose reopening the regulation on deforestation-free products (EUDR).
Adopted in June 2023, the law is designed to ban imports of commodities such as cocoa, coffee, soy, palm oil, wood, and beef if they are linked to deforestation.
Its rollout has already been delayed twice. Initially set to take effect in late 2024, implementation was first pushed to December 2025, then postponed again to December 30, 2026 for medium and large companies, and June 30, 2027 for small and microenterprises.
For companies that say they have invested heavily to comply, another revision would create damaging uncertainty. “Reopening the text would generate significant uncertainty,” the group said, warning that previous revisions had already shown how unpredictable the process can be. Such a move, they argue, could undermine confidence in EU regulation and strain relations with trade partners and producer countries.
While acknowledging that the law in its current form is not perfect, the coalition said a third revision before implementation would not necessarily resolve existing issues.
Instead, they argue that remaining concerns should be addressed through clearer guidelines, FAQs, and initiatives such as the emerging “community of practice” bringing together operators and regulators to share best practices. They also called for stronger support to producer countries—especially smallholders—to ensure compliance costs are not unfairly pushed upstream.
The upcoming April review is widely seen as a decisive moment for the regulation. Built into the latest version of the law, the review requires the European Commission to propose possible simplifications by April 30, 2026.
Some NGOs fear that this process could weaken the regulation and signal a rollback of the EU’s environmental and climate ambitions.
The EU, whose consumption is estimated to drive about 10% of global deforestation, has positioned the law as a flagship tool to make supply chains more accountable and reduce forest loss.
For African producers, the timeline remains critical. Previous delays have offered additional time to strengthen traceability systems and improve forest governance, but further uncertainty could complicate long-term planning. Ecofin Agency
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DEPARTMENT OF AGRICULTURE LAUNCHES MEGA OIL PALM PLANTATION DRIVE AT CHUMOUKEDIMA
The Department of Agriculture, Government of Nagaland launched “Mega Oil Palm Plantation Drive” under the National Mission on Edible Oils – Oil Palm (NMEO-OP) 2025-26 at Doyapur Council Hall, Chumoukedima on 20th March 2026.
Addressing the gathering, SDO (Civil) Dhansiripar, Vejoyo Swuro, NCS highlighted that the initiative would generate employment opportunities for the public and urged citizens to avail and benefit from such schemes. He said that Dhansiripar sub division has fertile land and encouraged the farmers to adopt sustainable farming practices for long-term benefits.
He acknowledged the significant contribution of farmers to the country’s GDP and assured that the district administration would extend all possible support to the farming community. He emphasized the importance of maintaining sufficient food stock to meet any crisis, and motivated farmers to actively engage in agriculture as a means of livelihood and economic advancement. Swuro further stressed the need for dedication and hard work to ensure the success of the programme, stating that the overall objective is to empower farmers while creating sustainable economic and employment opportunities in the region.
Delivering the keynote address, DAO, Chumoukedima, Moainla Pongen, stated that the programme marks the beginning of an economic transformation for the region, with a focus on reducing India’s dependency on imported palm oil. She pointed out that the country currently imports nearly 60 percent of its domestic requirement, resulting in significant annual expenditure, and emphasized that the National Mission on Edible Oils–Oil Palm (NMEO-OP) seeks to address this gap by creating a self-sustaining ecosystem for production.
She informed that the initiative in Nagaland will primarily cover eight districts, focusing on foothill areas suitable for oil palm cultivation. Addressing concerns surrounding the crop, she clarified that oil palm is a viable and efficient option due to its better root system and comparatively lower water usage than crops like sugarcane. She further assured that cultivation would be carried out in a sustainable manner, making use of wastelands while also promoting intercropping practices. Pongen said that the Department of Agriculture has entered into MoUs with Godrej Agrovet Ltd. and Patanjali foods to ensure assured market linkages for farmers. She added that Godrej Agrovet has plans to establish custom hiring centers at Doyapur, a one-stop solution centre, and a nursery at Dhansiripar to support farmers in the cultivation process.
She further assured that the Government is fully committed to the success of the initiative by providing free saplings, ensuring remunerative prices for produce, facilitating inter-company coordination, and extending financial and field-level assistance to farmers. She called for active collaboration between the Department of Agriculture, farmers, and the Government to make the mission a success and encouraged all stakeholders to actively participate in the national oil palm movement.
NMEO-OP is a centrally sponsored scheme launched in 2021, designed to achieve self-reliance (Atmanirbharta) in edible oils. Its primary goal is to significantly increase domestic Crude Palm Oil (CPO) production and expand oil palm cultivation areas to reduce India's heavy reliance on expensive imports.
Short speeches were delivered by Senior Officer, GAVL Dr. Benjongtoshi Imchen and Manager (Market Development, GAVL) Muthuselvan. The program was chaired by Kevin Solo, SDAO and vote of thanks was proposed by Agriculture Officer Meciesunu Sakhrie. The event saw active participation from local farmers and village council members. NagalandIN
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International Forest Day. Exploring oil palm’s untapped carbon sequestration potential
The future lies not in choosing between agriculture and forests, but in designing systems where both can thrive together
As the world marks International Forest Day, the focus rightly turns to the critical role forests play in absorbing carbon dioxide, preserving biodiversity and sustaining ecological balance. For countries like India, which are balancing developmental priorities with climate commitments, the conversation must also extend to how agricultural systems can complement—rather than compete with—forest conservation.
India’s palm oil push offers a compelling example of this balance. It has the potential to fulfil not one but two key national objectives as it promises to move the country closer to becoming self-sufficient in edible oilproduction while also helping it decarbonise.
India is mainly dependent on imports, largely of palm oil, to meet its edible oil consumption needs. The country, the world’s largest importer of commodities, shipped 8.9 million tonne (mt) of palm oil in 2023, with domestic production meeting less than 5 per cent of its annual requirement. The Hindu Businessline
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Cameroon Moves to Cut Food Imports with Cassava and Palm Oil Investment Deals
Cameroon has signed new investment conventions to scale up cassava processing and reduce a persistent palm oil supply gap, as part of its broader agricultural restructuring strategy.
On March 18 in Yaoundé, Agriculture and Rural Development Minister Gabriel Mbairobé formalised agreements with the Cameroon Growth Value Chain Network Centre (CRFC) and the Cameroon Soap Manufacturing Company (SCS Alid), a major palm oil processor based in Douala. The deals aim to support annual production of 500,000 tonnes of cassava flour and 400,000 tonnes of cassava starch, while helping to close a structural palm oil deficit estimated at 300,000 tonnes.
These agreements fall under the implementation of the Economic Recovery and Structuring Plan targeting maize, cassava, palm oil and soya—sectors where domestic demand continues to outstrip supply, driving imports and widening the trade deficit.
In the cassava segment, the sector currently comprises around 600,000 producers cultivating 310,000 hectares. Despite this base, the market deficit exceeded 31 million tonnes in 2025. The government is targeting output of 10 million tonnes by 2030. Under the convention with CRFC, the programme includes the development of 45,000 hectares in the central plain through the New Agro-Industrial Company of Cameroon (Sonadic S.A), in coordination with the ministry.
CRFC National Coordinator Simon François Yonga Bakala outlined the expected impact of the initiative. By 2030, the project is projected to expand the tax base by more than 1,700 billion CFA francs, create 50,000 direct jobs and over 150,000 indirect jobs, and improve farmgate prices and productivity. It also aims to revitalise rural production zones by encouraging youth participation, addressing the ageing farming population, and strengthening inclusion of women. Additional objectives include boosting “Made in Cameroon” products and increasing export value.
On the palm oil side, the agreement with SCS Alid focuses on a project in the Yoko subdivision. Cameroon faces a structural deficit of around 300,000 tonnes, with an overall gap exceeding 850,000 tonnes to meet the 2030 production target of 600,000 tonnes. The Yoko project is expected to generate 4,080,000 seedlings, produce 1,200,360 tonnes of palm nuts, and yield 216,065 tonnes of crude palm oil, including 155,567 tonnes of refined output.
According to Mbairobé, these conventions reinforce the government’s strategy to restructure key agricultural value chains and reduce reliance on imports in sectors where domestic production capacity exists.
“The signing of these conventions reflects our shared commitment to building a dynamic, inclusive and competitive agricultural ecosystem,” he said, highlighting the role of public-private partnerships in accelerating agricultural modernisation.
Beyond production gains, the initiatives are expected to strengthen the positioning of local products and support export development, contributing to the transformation of agriculture into a central driver of economic growth. Business in Cameroon
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MPOB launches used cooking oil price portal to boost circular economy
KUALA LUMPUR (March 20): The Malaysian Palm Oil Board (MPOB) is encouraging industry players and the public to participate actively in the trading of used cooking oil (UCO) as part of efforts to support the nation’s circular economy.
To ensure transaction transparency and facilitate the buying and selling of UCO, MPOB has provided a used cooking oil price reference portal for the domestic market, which can be accessed for free by all stakeholders, said MPOB in a statement.
The launch of the UCO average price data information is part of the government’s continuous efforts through the Ministry of Plantation and Commodities to enhance market transparency, strengthen the price discovery mechanism, and reduce uncertainty within the oil palm industry value chain in Malaysia.
MPOB director general Datuk Dr Ahmad Parveez Ghulam Kadir said the display of the UCO reference price provides a clearer and reliable price benchmark, thereby supporting the development of a more transparent and inclusive UCO supply chain.
“This initiative not only strengthens the integrity of the domestic UCO market but also aligns with the government’s aspirations in driving the circular economy, with the benefit of used cooking oil as a high-value raw material,” he said.
He added that the supply of UCO is increasingly gaining global attention as a crucial raw material resource in the production of sustainable energy products such as biodiesel and sustainable aviation fuel (SAF), alongside various oleochemical products.
“Globally, the demand for SAF is expected to increase significantly, driven by the international aviation industry’s commitment to achieving net-zero carbon emissions by 2050.”
According to industry projections, SAF demand could increase by more than three to five times by 2030, consequently surging the need for raw materials like UCO as a sustainable low-carbon source.
MPOB said Malaysia has immense potential in UCO supply due to the high consumption of palm cooking oil in the household and food service sectors, such as catering businesses and fried food vendors. The Edge
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March 19, 2026
Palm Oil Shields Indonesia as Middle East War Disrupts Trade
Jakarta. Indonesia’s palm oil sector could cushion the impact of Middle East tensions, as its near-100% domestic content and inelastic demand give exporters room to redirect shipments and sustain volumes despite disruptions.
Professor at Bogor Agricultural University (IPB) Bayu Krisnamurthi said Indonesia is in a strong position during global trade shocks because palm oil relies almost entirely on local inputs, while buyers have limited short-term alternatives even when prices rise or logistics are disrupted.
“In the context of palm oil, in a situation like this [the Middle East war], our strategy should be to increase exports. Indonesia can weather the crisis well if we expand exports,” he said.
Palm oil has long acted as a buffer for Indonesia’s trade balance. In 2025, the commodity contributed $41 billion out of $60 billion in non-oil and gas exports, roughly two-thirds, underscoring its role as a key stabilizer during periods of external stress.
ndustry estimates suggest up to 30% of exports, or around 10 million tons, could face disruptions due to the conflict, particularly to markets in the Middle East, Africa, and Europe. However, the remaining 70% of shipments remain unaffected and could be redirected or expanded to alternative markets such as China and Southeast Asia.
“Even if around 30% is affected, exporters can still ship because it is very difficult for importing countries to switch in the short term. Costs may rise, but demand remains,” Bayu said, adding that higher costs would likely be absorbed by consumers.
Hadi Sugeng confirmed that exports are continuing despite disruptions, though logistics costs have surged.
“If conditions persist, exports can continue, but there will be additional costs, our estimates suggest around a 50% increase. Hopefully, the conflict ends soon so these costs can ease,” he said.
He added that Indonesia cannot simply push buyers to increase purchases, as demand depends on each country’s economic growth and access to alternative vegetable oils. “For now, the focus is on maintaining engagement with existing markets while exploring new ones,” Hadi said. Jakarta Globe
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Malaysia fertiliser producers halt new orders as Iran war drives up prices
KUALA LUMPUR/JAKARTA, March 18 (Reuters) - Fertiliser makers in Malaysia are suspending new orders as supply-chain disruptions and feedstock shortages stemming from the Middle East conflict drive up raw material prices, threatening to raise output costs for palm oil producers.
Fertilisers can account for more than half of production costs for palm oil planters. The near-closure of the Strait of Hormuz due to the Israeli-U.S. war on Iran has choked off a significant share of fertiliser produced in the Middle East, as well as oil and gas used in factories that produce it.
"Currently, raw material prices are increasing sharply, and suppliers are revising prices," Malaysian manufacturer Union Harvest said in a notice seen by Reuters.
"Because of this, we are temporarily holding new orders until the new price is confirmed," it said.
Indonesia and Malaysia are the world's dominant producers of palm oil.
FGV Fertiliser Sdn Bhd, a subsidiary of palm oil major FGV Holdings, said in a similar notice to distributors that it had suspended sales of all single-nutrient fertilisers such as urea, ammonium sulphate and muriate of potash with immediate effect, citing the impact of the global geopolitical situation on fertiliser supply.
Union Harvest and FGV Holdings did not immediately respond to requests for comment.
"Some raw materials have already increased by 100% to 150% within just two weeks," said Choon Chun Hong, general manager of Sabah Softwoods Hybrid Fertiliser, a supplier to estates in Malaysia and Indonesia.
Choon said his company, based in Malaysia's palm-oil-producing state of Sabah, is discouraging pre-orders to prevent price speculation.
"Fertiliser accounts for approximately 60% of total production costs in Malaysia, and if the war is prolonged, the price of raw materials will continue to go up," said Roslin Azmy Hassan, CEO of the Malaysian Palm Oil Association.
Gulat Manurung, chairman of Indonesian smallholder farmers' group APKASINDO, said rising import costs are pushing up prices for chemical fertilisers at the farmer level.
There's currently no other choice but to combine it with organic fertiliser," he said. Reuters
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GAPKI To Release Pollinating Insects To Raise Palm Productivity
JAKARTA – The productivity of Indonesian oil palm plantations is expected to increase significantly by up to 15 percent due to the application of pollinating insects from Tanzania in the palm plantations.
The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono said that with the help of the insect pollination, fruit formation will be more perfect. “We should be able to increase production by around 10 to 15 percent with the pollinating insects,” Eddy said after a meeting at the Ministry of Agriculture Office in Jakarta on Wednesday (11/03/2026).
According to Eddy, with the new genetic resource, Indonesia can double its annual production, currently at 24 tons of fresh fruit bunches (FFB) per hectare per year.
He said that currently, the Tanzanian pollinating insects are ready to be released on the oil palm plantations owned by GAPKI member companies.
Eddy Martono said that he came to the agriculture ministry office to ask Agriculture Minister Andi Amran Sulaiman to formally release the Tanzanian pollinators this coming April in Medan, North Sumatra province.
“Our plan is to ask the Minister to release the Tanzanian insect pollinators. It’s because the insect release is a monumental event. It will increase the productivity of our oil palm plantations.” Eddy said.
“Thank God, it seems he’s happy, and we’ll arrange a time later,” he added.
According to Eddy, it won’t take long to see the impact of using the Tanzanian pollinators. “It only takes about six months after the release of the insects into the plantation areas before the results will be visible,” he said.
“But this release is currently limited, as not all of them yet. It’s still within the GAPKI consortium members. But after that, we will start releasing them to the communities as well,” said Eddy.
Separately, GAPKI Secretary General M. Hadi Sugeng stated that three species of pollinating insects from Tanzania were imported to increase oil palm productivity.
According to him, breeding these pollinating insects takes about two years before they can be released into the plantations.
“We have successfully obtained pollinating insects from Tanzania. There are three pollinating insects: Herodotus cambricus, Herodotus lachitatus, and Herodotus supitatus. We are currently breeding all three at the PPKS (Oil Palm Research Center) in Medan,” said Hadi Sugeng. GAPKI
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Europe’s Duty-Free Access Bankrolls Myanmar’s Military Repression
Five years after the coup, foreign brands and the EU's trade preferences continue to generate hard currency for a military regime waging war on its own people.
Five years after the military coup, Myanmar is no longer a “high-risk sourcing destination.” It is a war economy.
The garment sector remains one of the junta’s largest sources of hard currency. The World Bank reported US$5.5 billion in garment exports in 2022. Exports remained above US$5 billion in 2023 before falling to US$4.46 billion in 2024. In that same year, Europe alone imported approximately €2.8 billion worth of textile and clothing products from Myanmar, much of it entering duty-free under the EU’s Everything But Arms (EBA) scheme.
These are not neutral trade statistics. They represent large-scale foreign-exchange inflows into a financial system tightly controlled by the military authorities.
State media reports document repeated Central Bank of Myanmar (CBM) foreign-exchange allocations to priority imports such as fuel and edible oil. On 2 September 2024, the CBM instructed that up to 75 per cent of foreign currency earned from trade, Cut Make Pack (CMP) garment exports, and natural-resource sales could be directed towards fuel and palm-oil imports. As the economist Sean Turnell has detailed in “The Military, Money, and Myanmar: Breaking the Nexus”, post-coup measures have centralised foreign-exchange control through forced currency conversions, multiple exchange rates, restrictions on outward payments, and tight control over currency dealers. Export earnings, including those from garments, do not flow freely in such a system. They are captured and redirected. They help sustain regime priorities. Social Europe
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Palm Oil Shields Indonesia as Middle East War Disrupts Trade
Jakarta. Indonesia’s palm oil sector could cushion the impact of Middle East tensions, as its near-100% domestic content and inelastic demand give exporters room to redirect shipments and sustain volumes despite disruptions.
Professor at Bogor Agricultural University (IPB) Bayu Krisnamurthi said Indonesia is in a strong position during global trade shocks because palm oil relies almost entirely on local inputs, while buyers have limited short-term alternatives even when prices rise or logistics are disrupted.
“In the context of palm oil, in a situation like this [the Middle East war], our strategy should be to increase exports. Indonesia can weather the crisis well if we expand exports,” he said.
Palm oil has long acted as a buffer for Indonesia’s trade balance. In 2025, the commodity contributed $41 billion out of $60 billion in non-oil and gas exports, roughly two-thirds, underscoring its role as a key stabilizer during periods of external stress.
ndustry estimates suggest up to 30% of exports, or around 10 million tons, could face disruptions due to the conflict, particularly to markets in the Middle East, Africa, and Europe. However, the remaining 70% of shipments remain unaffected and could be redirected or expanded to alternative markets such as China and Southeast Asia.
“Even if around 30% is affected, exporters can still ship because it is very difficult for importing countries to switch in the short term. Costs may rise, but demand remains,” Bayu said, adding that higher costs would likely be absorbed by consumers.
Hadi Sugeng confirmed that exports are continuing despite disruptions, though logistics costs have surged.
“If conditions persist, exports can continue, but there will be additional costs, our estimates suggest around a 50% increase. Hopefully, the conflict ends soon so these costs can ease,” he said.
He added that Indonesia cannot simply push buyers to increase purchases, as demand depends on each country’s economic growth and access to alternative vegetable oils. “For now, the focus is on maintaining engagement with existing markets while exploring new ones,” Hadi said. Jakarta Globe
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Malaysia fertiliser producers halt new orders as Iran war drives up prices
KUALA LUMPUR/JAKARTA, March 18 (Reuters) - Fertiliser makers in Malaysia are suspending new orders as supply-chain disruptions and feedstock shortages stemming from the Middle East conflict drive up raw material prices, threatening to raise output costs for palm oil producers.
Fertilisers can account for more than half of production costs for palm oil planters. The near-closure of the Strait of Hormuz due to the Israeli-U.S. war on Iran has choked off a significant share of fertiliser produced in the Middle East, as well as oil and gas used in factories that produce it.
"Currently, raw material prices are increasing sharply, and suppliers are revising prices," Malaysian manufacturer Union Harvest said in a notice seen by Reuters.
"Because of this, we are temporarily holding new orders until the new price is confirmed," it said.
Indonesia and Malaysia are the world's dominant producers of palm oil.
FGV Fertiliser Sdn Bhd, a subsidiary of palm oil major FGV Holdings, said in a similar notice to distributors that it had suspended sales of all single-nutrient fertilisers such as urea, ammonium sulphate and muriate of potash with immediate effect, citing the impact of the global geopolitical situation on fertiliser supply.
Union Harvest and FGV Holdings did not immediately respond to requests for comment.
"Some raw materials have already increased by 100% to 150% within just two weeks," said Choon Chun Hong, general manager of Sabah Softwoods Hybrid Fertiliser, a supplier to estates in Malaysia and Indonesia.
Choon said his company, based in Malaysia's palm-oil-producing state of Sabah, is discouraging pre-orders to prevent price speculation.
"Fertiliser accounts for approximately 60% of total production costs in Malaysia, and if the war is prolonged, the price of raw materials will continue to go up," said Roslin Azmy Hassan, CEO of the Malaysian Palm Oil Association.
Gulat Manurung, chairman of Indonesian smallholder farmers' group APKASINDO, said rising import costs are pushing up prices for chemical fertilisers at the farmer level.
There's currently no other choice but to combine it with organic fertiliser," he said. Reuters
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GAPKI To Release Pollinating Insects To Raise Palm Productivity
JAKARTA – The productivity of Indonesian oil palm plantations is expected to increase significantly by up to 15 percent due to the application of pollinating insects from Tanzania in the palm plantations.
The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono said that with the help of the insect pollination, fruit formation will be more perfect. “We should be able to increase production by around 10 to 15 percent with the pollinating insects,” Eddy said after a meeting at the Ministry of Agriculture Office in Jakarta on Wednesday (11/03/2026).
According to Eddy, with the new genetic resource, Indonesia can double its annual production, currently at 24 tons of fresh fruit bunches (FFB) per hectare per year.
He said that currently, the Tanzanian pollinating insects are ready to be released on the oil palm plantations owned by GAPKI member companies.
Eddy Martono said that he came to the agriculture ministry office to ask Agriculture Minister Andi Amran Sulaiman to formally release the Tanzanian pollinators this coming April in Medan, North Sumatra province.
“Our plan is to ask the Minister to release the Tanzanian insect pollinators. It’s because the insect release is a monumental event. It will increase the productivity of our oil palm plantations.” Eddy said.
“Thank God, it seems he’s happy, and we’ll arrange a time later,” he added.
According to Eddy, it won’t take long to see the impact of using the Tanzanian pollinators. “It only takes about six months after the release of the insects into the plantation areas before the results will be visible,” he said.
“But this release is currently limited, as not all of them yet. It’s still within the GAPKI consortium members. But after that, we will start releasing them to the communities as well,” said Eddy.
Separately, GAPKI Secretary General M. Hadi Sugeng stated that three species of pollinating insects from Tanzania were imported to increase oil palm productivity.
According to him, breeding these pollinating insects takes about two years before they can be released into the plantations.
“We have successfully obtained pollinating insects from Tanzania. There are three pollinating insects: Herodotus cambricus, Herodotus lachitatus, and Herodotus supitatus. We are currently breeding all three at the PPKS (Oil Palm Research Center) in Medan,” said Hadi Sugeng. GAPKI
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Europe’s Duty-Free Access Bankrolls Myanmar’s Military Repression
Five years after the coup, foreign brands and the EU's trade preferences continue to generate hard currency for a military regime waging war on its own people.
Five years after the military coup, Myanmar is no longer a “high-risk sourcing destination.” It is a war economy.
The garment sector remains one of the junta’s largest sources of hard currency. The World Bank reported US$5.5 billion in garment exports in 2022. Exports remained above US$5 billion in 2023 before falling to US$4.46 billion in 2024. In that same year, Europe alone imported approximately €2.8 billion worth of textile and clothing products from Myanmar, much of it entering duty-free under the EU’s Everything But Arms (EBA) scheme.
These are not neutral trade statistics. They represent large-scale foreign-exchange inflows into a financial system tightly controlled by the military authorities.
State media reports document repeated Central Bank of Myanmar (CBM) foreign-exchange allocations to priority imports such as fuel and edible oil. On 2 September 2024, the CBM instructed that up to 75 per cent of foreign currency earned from trade, Cut Make Pack (CMP) garment exports, and natural-resource sales could be directed towards fuel and palm-oil imports. As the economist Sean Turnell has detailed in “The Military, Money, and Myanmar: Breaking the Nexus”, post-coup measures have centralised foreign-exchange control through forced currency conversions, multiple exchange rates, restrictions on outward payments, and tight control over currency dealers. Export earnings, including those from garments, do not flow freely in such a system. They are captured and redirected. They help sustain regime priorities. Social Europe
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March 18, 2026
Edible oils caught between weak demand and biodiesel bets, says analyst Mistry
MUMBAI, March 17 (Reuters) - Global edible oil markets are behaving unpredictably as energy supply disruptions from the Middle East war lift hopes for biodiesel demand, though subdued buying from major importers has clouded the price outlook, industry veteran Dorab Mistry said.
"Wartime market behaviour is always very different and many developments come unexpectedly," Mistry, the director of Indian consumer goods company Godrej International, told Reuters.
Crude oil prices jumped to a near four-year high last week after Iran responded to joint U.S.-Israeli attacks by threatening to fire on vessels moving through the Strait of Hormuz. This rally has made the use of vegetable oils for biofuel production more attractive.
"Right now, edible demand is subdued as prices have jumped. Market has high hopes for biodiesel. It remains to be seen which factor will eventually prevail," Mistry said.
One of the most closely watched analysts of edible oils, Mistry's forecasts for supply and prices often move markets.
PALM OIL PRICES SURGE
Malaysian palm oil prices have jumped 14% so far this month to trade above 4,600 ringgit per ton, making the tropical oil more expensive than rival soyoil, except in Asia, where lower freight costs keep it competitive for buyers.
Mistry last month forecast palm oil futures to trade in a range of 3,800–4,300 ringgit until July 2026, as demand remains weak amid ample supplies.
India, the world's largest vegetable oil buyer, is reluctant to make new purchases at higher price levels, with refiners waiting for prices to correct, dealers said.
Indian importers have been hit after cutting inventories and washing out a large volume of previously booked imports, Mistry said.
Several soyoil cargoes from South America and the Black Sea, booked for delivery in the coming months, were washed out after global soyoil prices surged, as buyers found it more profitable to return the shipments to suppliers rather than process and sell them in India, dealers said.
Limited import arrivals are expected to support Indian edible oil prices, though strong mustard oil supplies are helping temper the increase, Mistry said. Reuters
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The High Cost of Uncertainty: The Risk to Indonesia's Palm Oil Investment
The government's plan to tighten oversight of cultivation rights (HGU) and to reclaim land deemed “unproductive” has introduced a new layer of uncertainty to a sector that contributes more than US$30 billion annually in export earnings and supports roughly 16 million jobs, directly and indirectly.
At face value, reclaiming or repossessing idle land is justifiable. No serious economist would argue that speculative hoarding or deliberate neglect should be tolerated. Underutilized land represents inefficiency.
The state has both the authority and obligation to ensure productive use of natural resources. The problem lies not in the intent of reform, but in its design, sequencing and ramifications. What is unfolding risks being perceived not as calibrated governance, but as regulatory improvisation.
Palm oil is not a short-cycle industry. A new plantation requires seven to eight years before reaching optimal productivity. Capital outlays for seedlings, land preparation, mills and logistics are front-loaded, while returns stretch across decades. HGU permits, valid for 35 years with extension options, are the institutional backbone of this long-term calculus. When the interpretation of those rights becomes fluid, investment models are recalibrated immediately.
Evidence from development economics consistently shows that weakly protected property rights elevate capital costs and depress long-term investment. Institutions such as the World Bank have repeatedly demonstrated that regulatory ambiguity, not regulatory strictness, is what deters capital. Investors can price high standards.
What they struggle to price is discretionary reinterpretation
The government's current rhetoric, however, blurs an essential distinction, the difference between enforcing clear rules and retroactively redefining them. If genuinely abandoned land is reclaimed through transparent, rule-based processes, governance is strengthened. But if the definition of “unproductive” expands without technical precision, the signal becomes destabilizing. Sawit Indonesia
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US Probe: Indonesia to Tighten Curbs on Imports Made by Child Labor
Jakarta. Indonesia is eyeing tighter curbs on imports of raw materials made by child labor as Jakarta tries to respond to a US investigation over unfair trade practices.
Just a few days ago, the Donald Trump 2.0 administration opened investigations into Indonesia and dozens of economies. One of the probes targeted goods made by forced labor, something that the US claimed had granted foreign manufacturers an "artificial cost advantage".
As the clock ticks on the first hearing, Indonesia’s chief tariff negotiator Airlangga Hartarto summoned several government officials and industry representatives to his office on Tuesday. Airlangga confirmed that there were plans to step up supervision to ward off foreign goods produced by forced labor, particularly kids.
“Indonesia shall not import raw materials made by child labor. Our country has adopted a plethora of rules on this, including the International Labor Organization [ILO] Conventions. So there should be no more issues with this,” Airlangga told the press, hours after the closed-door meeting.
Airlangga signaled that the government would draft a regulation that “would urge Indonesian companies not to make such imports”. However, Indonesia ratified the Worst Forms of Child Labor Convention almost three decades ago. The same goes for the ILO Convention on the minimum age for work.
“The ILO conventions already cover [how we don’t support child labor], but we will just reaffirm this,” he said.
Earlier that day, Airlangga’s aide Edi Prio Pambudi had dropped a hint that the government would come up with rules to prevent imports associated with forced labor. The government still plans to cross-check with the situation on the ground.
Beyond imports, the Indonesian government has repeatedly stated its support for workers’ rights and its anti-child-labor stance at home. Jakarta has spoken with the White House to clear up misunderstandings over parents taking their kids to work, particularly those who have to work outdoors (e.g., plantations). In its defense, Indonesia has said that not all families can afford babysitters. Some children are also on school break, according to Edi. He claimed that the US had “very much accepted” Indonesia’s explanation of the child labor confusion.
Government data showed that Indonesia’s non-oil and gas imports mainly came from China, nearing $7.9 billion in January 2026. Followed by Australia (almost $1.1 billion) and Japan ($950 million). These three countries are also subject to the US unfree-labor investigations. The US Trade Representative will hold the first hearing for the probe on April 28.
The investigation is widely seen as Trump’s attempt to rebuild the tariff wall after a US Supreme Court ruling declared he did not have the right to impose reciprocal import duties. Trump has railed against the ruling by slapping a new 10% global tariff that is bound to expire on July 24, unless extended by the Congress. He had threatened to increase the temporary duty to 15%. Jakarta Globe
--------
Indonesia Open for Tariff Cuts in EU Palm Oil Biodiesel Dispute
Jakarta. Indonesia has stated that it is willing to consider tariff cuts and other forms of compensation provided by the European Union or EU in their biodiesel dispute at the World Trade Organization (WTO).
In 2019, Indonesia sued the EU at the WTO for its discriminatory REDD II climate policies. The regime classifies palm oil-based biofuel as being high-risk of causing indirect land use changes, leading to a gradual phaseout. Last year, a WTO panel backed Indonesia and gave the EU time until Feb. 24, 2026, to implement the rulings. As the request fell on deaf ears, Indonesia — the world’s largest palm oil supplier — plans to notify the WTO’s Dispute Settlement Body of possible retaliation against the EU in a move better known as “suspension of concessions”. Djatmiko Bris Witjaksono, a senior official at the Trade Ministry, signaled Tuesday that Jakarta was open to options other than retaliating with tariff hikes.
“We want to reserve our rights at the WTO as the EU failed to meet its commitment within the deadline. So we are doing everything that we can, including suspending concessions,” Djatmiko said in Jakarta.
“But [concession suspension] does not have to be tariff increases — for instance, if they are willing to give compensation,” Djatmiko said.
The Jakarta Globe asked Djatmiko what sort of compensation would Indonesia find attractive. Djatmiko said that it could be “all kinds of things”, while recalling a past US dispute as an example.
“Washington once failed to comply with the panel recommendation. So they compensated by giving us tariff reductions on goods that we have requested via the Generalized System of Preferences [GSP].”
The Globe then asked what sort of EU-bound goods Indonesia was hoping to get import duty cuts on, if the European bloc decided to take a similar path. Djatmiko replied that the government had not decided on the details.
According to the WTO website, the concession suspension — or sanctions — should be equal in value to the damages caused by the EU’s challenged policies. Jakarta, however, can only proceed with the retaliation if the dispute settlement body agrees. The organization wrote additional tariffs as one of the most common forms of concession suspension practised so far, the organization wrote.
It was unclear which US dispute Djatmiko was referring to that led to Jakarta gaining the GSP.
The WTO database shows that Washington has come face-to-face with Indonesia several times at the trade court. Washington won the legal battles several times, but had lost in a decades-old case related to its decision to transfer collected anti-dumping duties to affected domestic producers. Indonesia had lodged the lawsuit in a joint complaint with other economies, including Australia, Brazil, Japan, and South Korea. Tokyo pursued tariff hikes on the grounds that the US did not implement the rulings within the deadline. In 2005, Jakarta reached a mutual understanding with Washington and would not seek retaliation.
Under the aforementioned GSP, the US had eliminated duties on thousands of products from Indonesia and other eligible developing nations. The duty-free system expired in 2020.
Staying Friends
Trade Minister Budi Santoso has previously stated that Jakarta would tread with the plan carefully to avoid straining its EU ties. Jakarta Globe
--------
Neste rejects claims of palm oil fraud
In Finland, in response to recent media coverage on suspected cases of fraud related to renewable raw materials business and its alleged connections to the biofuels industry, Neste says it is currently not aware of any verified cases of fraud (i.e. mislabeling or fraudulent mixing of raw materials) that would be directly connected to Neste’s raw material sourcing.
Neste has taken the risk of fraud very seriously already for years and has developed robust methods to mitigate fraud risk in its renewable raw material supply chains. As fraud is impossible to tackle by any single company alone, it is involved in multiple initiatives to develop stronger measures to combat fraud. Detecting and verifying fraudulent practices requires a combination of measures. Should it detect any evidence of fraudulent activity in our supply chain, it says it would take immediate action. Biofuels Digest
--------
PANASONIC EXPLORES INVESTMENT IN PALM BIOMASS-BASED MDF IN MALAYSIA
KUALA LUMPUR, March 17 (Bernama) – Manufacturer of housing equipment and construction material, Panasonic Housing Solutions Co Ltd, is exploring investment opportunities for its palm biomass-based panels product, medium-density fibreboard (MDF).
It is produced under its PALM LOOP programme, which converts oil palm trunks and other palm oil waste into MDF suitable for furniture and building material.
The company’s Procurement Malaysia Housing Solutions Centre manager Mohd Erman Syazwan Che Fauzi said the company has commercialised MDF boards containing 10 per cent of palm biomass, with the remaining 90 per cent made from rubberwood.
In response to demands from stakeholders and investors, Panasonic is increasing the percentage of palm biomass.
“Through ongoing research and development, we have produced pilot samples containing 30 per cent to 50 per cent biomass, and experimental boards made with 100 per cent palm biomass,” he told Bernama on the sidelines of the recently concluded Malaysian International Furniture Fair (MIFF) 2026, here.
Mohd Erman said new investments could expand the project and lower production costs through larger-scale manufacturing and further research and development.
For the Panasonic Group, he said scaling up production means reducing costs and gradually increasing the biomass content of its boards.
“In the near future, we would like to see some form of investment in this industry, and ultimately working toward a target of 100 per cent biomass-based MDF.
“We are also working with government agencies to strengthen systems that track biomass sources, allowing manufacturers to verify that the materials used in production are sustainably sourced,” he said.
Panasonic is currently engaging with local furniture manufacturers to supply its biomass-based MDF boards and expand the use of sustainable materials in furniture production.
“By increasing biomass content and attracting new industry partners, we hope this programme could help expand the use of sustainable materials in furniture manufacturing while also creating new value from palm oil industry waste.
“In the longer term, we are considering the possibility of exporting the biomass-based boards themselves, but our focus remains on supporting Malaysia’s furniture sector,” said Mohd Erman.
-- BERNAMA
Edible oils caught between weak demand and biodiesel bets, says analyst Mistry
MUMBAI, March 17 (Reuters) - Global edible oil markets are behaving unpredictably as energy supply disruptions from the Middle East war lift hopes for biodiesel demand, though subdued buying from major importers has clouded the price outlook, industry veteran Dorab Mistry said.
"Wartime market behaviour is always very different and many developments come unexpectedly," Mistry, the director of Indian consumer goods company Godrej International, told Reuters.
Crude oil prices jumped to a near four-year high last week after Iran responded to joint U.S.-Israeli attacks by threatening to fire on vessels moving through the Strait of Hormuz. This rally has made the use of vegetable oils for biofuel production more attractive.
"Right now, edible demand is subdued as prices have jumped. Market has high hopes for biodiesel. It remains to be seen which factor will eventually prevail," Mistry said.
One of the most closely watched analysts of edible oils, Mistry's forecasts for supply and prices often move markets.
PALM OIL PRICES SURGE
Malaysian palm oil prices have jumped 14% so far this month to trade above 4,600 ringgit per ton, making the tropical oil more expensive than rival soyoil, except in Asia, where lower freight costs keep it competitive for buyers.
Mistry last month forecast palm oil futures to trade in a range of 3,800–4,300 ringgit until July 2026, as demand remains weak amid ample supplies.
India, the world's largest vegetable oil buyer, is reluctant to make new purchases at higher price levels, with refiners waiting for prices to correct, dealers said.
Indian importers have been hit after cutting inventories and washing out a large volume of previously booked imports, Mistry said.
Several soyoil cargoes from South America and the Black Sea, booked for delivery in the coming months, were washed out after global soyoil prices surged, as buyers found it more profitable to return the shipments to suppliers rather than process and sell them in India, dealers said.
Limited import arrivals are expected to support Indian edible oil prices, though strong mustard oil supplies are helping temper the increase, Mistry said. Reuters
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The High Cost of Uncertainty: The Risk to Indonesia's Palm Oil Investment
The government's plan to tighten oversight of cultivation rights (HGU) and to reclaim land deemed “unproductive” has introduced a new layer of uncertainty to a sector that contributes more than US$30 billion annually in export earnings and supports roughly 16 million jobs, directly and indirectly.
At face value, reclaiming or repossessing idle land is justifiable. No serious economist would argue that speculative hoarding or deliberate neglect should be tolerated. Underutilized land represents inefficiency.
The state has both the authority and obligation to ensure productive use of natural resources. The problem lies not in the intent of reform, but in its design, sequencing and ramifications. What is unfolding risks being perceived not as calibrated governance, but as regulatory improvisation.
Palm oil is not a short-cycle industry. A new plantation requires seven to eight years before reaching optimal productivity. Capital outlays for seedlings, land preparation, mills and logistics are front-loaded, while returns stretch across decades. HGU permits, valid for 35 years with extension options, are the institutional backbone of this long-term calculus. When the interpretation of those rights becomes fluid, investment models are recalibrated immediately.
Evidence from development economics consistently shows that weakly protected property rights elevate capital costs and depress long-term investment. Institutions such as the World Bank have repeatedly demonstrated that regulatory ambiguity, not regulatory strictness, is what deters capital. Investors can price high standards.
What they struggle to price is discretionary reinterpretation
The government's current rhetoric, however, blurs an essential distinction, the difference between enforcing clear rules and retroactively redefining them. If genuinely abandoned land is reclaimed through transparent, rule-based processes, governance is strengthened. But if the definition of “unproductive” expands without technical precision, the signal becomes destabilizing. Sawit Indonesia
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US Probe: Indonesia to Tighten Curbs on Imports Made by Child Labor
Jakarta. Indonesia is eyeing tighter curbs on imports of raw materials made by child labor as Jakarta tries to respond to a US investigation over unfair trade practices.
Just a few days ago, the Donald Trump 2.0 administration opened investigations into Indonesia and dozens of economies. One of the probes targeted goods made by forced labor, something that the US claimed had granted foreign manufacturers an "artificial cost advantage".
As the clock ticks on the first hearing, Indonesia’s chief tariff negotiator Airlangga Hartarto summoned several government officials and industry representatives to his office on Tuesday. Airlangga confirmed that there were plans to step up supervision to ward off foreign goods produced by forced labor, particularly kids.
“Indonesia shall not import raw materials made by child labor. Our country has adopted a plethora of rules on this, including the International Labor Organization [ILO] Conventions. So there should be no more issues with this,” Airlangga told the press, hours after the closed-door meeting.
Airlangga signaled that the government would draft a regulation that “would urge Indonesian companies not to make such imports”. However, Indonesia ratified the Worst Forms of Child Labor Convention almost three decades ago. The same goes for the ILO Convention on the minimum age for work.
“The ILO conventions already cover [how we don’t support child labor], but we will just reaffirm this,” he said.
Earlier that day, Airlangga’s aide Edi Prio Pambudi had dropped a hint that the government would come up with rules to prevent imports associated with forced labor. The government still plans to cross-check with the situation on the ground.
Beyond imports, the Indonesian government has repeatedly stated its support for workers’ rights and its anti-child-labor stance at home. Jakarta has spoken with the White House to clear up misunderstandings over parents taking their kids to work, particularly those who have to work outdoors (e.g., plantations). In its defense, Indonesia has said that not all families can afford babysitters. Some children are also on school break, according to Edi. He claimed that the US had “very much accepted” Indonesia’s explanation of the child labor confusion.
Government data showed that Indonesia’s non-oil and gas imports mainly came from China, nearing $7.9 billion in January 2026. Followed by Australia (almost $1.1 billion) and Japan ($950 million). These three countries are also subject to the US unfree-labor investigations. The US Trade Representative will hold the first hearing for the probe on April 28.
The investigation is widely seen as Trump’s attempt to rebuild the tariff wall after a US Supreme Court ruling declared he did not have the right to impose reciprocal import duties. Trump has railed against the ruling by slapping a new 10% global tariff that is bound to expire on July 24, unless extended by the Congress. He had threatened to increase the temporary duty to 15%. Jakarta Globe
--------
Indonesia Open for Tariff Cuts in EU Palm Oil Biodiesel Dispute
Jakarta. Indonesia has stated that it is willing to consider tariff cuts and other forms of compensation provided by the European Union or EU in their biodiesel dispute at the World Trade Organization (WTO).
In 2019, Indonesia sued the EU at the WTO for its discriminatory REDD II climate policies. The regime classifies palm oil-based biofuel as being high-risk of causing indirect land use changes, leading to a gradual phaseout. Last year, a WTO panel backed Indonesia and gave the EU time until Feb. 24, 2026, to implement the rulings. As the request fell on deaf ears, Indonesia — the world’s largest palm oil supplier — plans to notify the WTO’s Dispute Settlement Body of possible retaliation against the EU in a move better known as “suspension of concessions”. Djatmiko Bris Witjaksono, a senior official at the Trade Ministry, signaled Tuesday that Jakarta was open to options other than retaliating with tariff hikes.
“We want to reserve our rights at the WTO as the EU failed to meet its commitment within the deadline. So we are doing everything that we can, including suspending concessions,” Djatmiko said in Jakarta.
“But [concession suspension] does not have to be tariff increases — for instance, if they are willing to give compensation,” Djatmiko said.
The Jakarta Globe asked Djatmiko what sort of compensation would Indonesia find attractive. Djatmiko said that it could be “all kinds of things”, while recalling a past US dispute as an example.
“Washington once failed to comply with the panel recommendation. So they compensated by giving us tariff reductions on goods that we have requested via the Generalized System of Preferences [GSP].”
The Globe then asked what sort of EU-bound goods Indonesia was hoping to get import duty cuts on, if the European bloc decided to take a similar path. Djatmiko replied that the government had not decided on the details.
According to the WTO website, the concession suspension — or sanctions — should be equal in value to the damages caused by the EU’s challenged policies. Jakarta, however, can only proceed with the retaliation if the dispute settlement body agrees. The organization wrote additional tariffs as one of the most common forms of concession suspension practised so far, the organization wrote.
It was unclear which US dispute Djatmiko was referring to that led to Jakarta gaining the GSP.
The WTO database shows that Washington has come face-to-face with Indonesia several times at the trade court. Washington won the legal battles several times, but had lost in a decades-old case related to its decision to transfer collected anti-dumping duties to affected domestic producers. Indonesia had lodged the lawsuit in a joint complaint with other economies, including Australia, Brazil, Japan, and South Korea. Tokyo pursued tariff hikes on the grounds that the US did not implement the rulings within the deadline. In 2005, Jakarta reached a mutual understanding with Washington and would not seek retaliation.
Under the aforementioned GSP, the US had eliminated duties on thousands of products from Indonesia and other eligible developing nations. The duty-free system expired in 2020.
Staying Friends
Trade Minister Budi Santoso has previously stated that Jakarta would tread with the plan carefully to avoid straining its EU ties. Jakarta Globe
--------
Neste rejects claims of palm oil fraud
In Finland, in response to recent media coverage on suspected cases of fraud related to renewable raw materials business and its alleged connections to the biofuels industry, Neste says it is currently not aware of any verified cases of fraud (i.e. mislabeling or fraudulent mixing of raw materials) that would be directly connected to Neste’s raw material sourcing.
Neste has taken the risk of fraud very seriously already for years and has developed robust methods to mitigate fraud risk in its renewable raw material supply chains. As fraud is impossible to tackle by any single company alone, it is involved in multiple initiatives to develop stronger measures to combat fraud. Detecting and verifying fraudulent practices requires a combination of measures. Should it detect any evidence of fraudulent activity in our supply chain, it says it would take immediate action. Biofuels Digest
--------
PANASONIC EXPLORES INVESTMENT IN PALM BIOMASS-BASED MDF IN MALAYSIA
KUALA LUMPUR, March 17 (Bernama) – Manufacturer of housing equipment and construction material, Panasonic Housing Solutions Co Ltd, is exploring investment opportunities for its palm biomass-based panels product, medium-density fibreboard (MDF).
It is produced under its PALM LOOP programme, which converts oil palm trunks and other palm oil waste into MDF suitable for furniture and building material.
The company’s Procurement Malaysia Housing Solutions Centre manager Mohd Erman Syazwan Che Fauzi said the company has commercialised MDF boards containing 10 per cent of palm biomass, with the remaining 90 per cent made from rubberwood.
In response to demands from stakeholders and investors, Panasonic is increasing the percentage of palm biomass.
“Through ongoing research and development, we have produced pilot samples containing 30 per cent to 50 per cent biomass, and experimental boards made with 100 per cent palm biomass,” he told Bernama on the sidelines of the recently concluded Malaysian International Furniture Fair (MIFF) 2026, here.
Mohd Erman said new investments could expand the project and lower production costs through larger-scale manufacturing and further research and development.
For the Panasonic Group, he said scaling up production means reducing costs and gradually increasing the biomass content of its boards.
“In the near future, we would like to see some form of investment in this industry, and ultimately working toward a target of 100 per cent biomass-based MDF.
“We are also working with government agencies to strengthen systems that track biomass sources, allowing manufacturers to verify that the materials used in production are sustainably sourced,” he said.
Panasonic is currently engaging with local furniture manufacturers to supply its biomass-based MDF boards and expand the use of sustainable materials in furniture production.
“By increasing biomass content and attracting new industry partners, we hope this programme could help expand the use of sustainable materials in furniture manufacturing while also creating new value from palm oil industry waste.
“In the longer term, we are considering the possibility of exporting the biomass-based boards themselves, but our focus remains on supporting Malaysia’s furniture sector,” said Mohd Erman.
-- BERNAMA
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March 17, 2026
Finnish palm oil fraud; Neste under investigation
Finnish fuel producer Neste has been linked to an Indonesian palm oil fraud probe over shipments labelled as biofuel waste.
Finnish sustainable aviation fuel producer Neste has been named among European companies that received shipments from Indonesian firms under investigation in a palm oil fraud case, according to an AFP and SourceMaterial investigation.
The Indonesian probe alleges that companies and officials falsely labelled palm oil as palm oil mill effluent, known as POME, a waste byproduct used in biofuel production. Authorities say the practice may have helped firms avoid higher taxes and cost the Indonesian state millions in lost revenue.
The report said shipments labelled as POME were sent to both Neste and Italian energy company Eni from Indonesian suppliers now linked to the investigation. There is no suggestion that Neste or the other buyers knew about or were involved in any fraud.
Neste said it had instructed its supplier to exclude the implicated companies after the Indonesian investigation became public. The company also said tests on shipment samples from 2023 to 2025 were consistent with palm-derived waste rather than palm oil.
The case has raised new questions about oversight in the biofuel supply chain. Palm oil has long been linked to deforestation, and the European Union is due to ban its use in biofuel from 2030. Scandasia
--------
Neste supports strong measures to mitigate the risk of fraud in biofuels and renewable raw materials supply chains
As a response to recent media coverage on suspected cases of fraud related to renewable raw materials business and its alleged connections to the biofuels industry, we wish to emphasize that Neste is currently not aware of any verified cases of fraud (i.e. mislabeling or fraudulent mixing of raw materials) that would be directly connected to Neste’s raw material sourcing.
Neste has taken the risk of fraud very seriously already for years and has developed robust methods to mitigate fraud risk in its renewable raw material supply chains. As fraud is impossible to tackle by any single company alone, we are involved in multiple initiatives to develop stronger measures to combat fraud. Detecting and verifying fraudulent practices requires a combination of measures. Should we detect any evidence of fraudulent activity in our supply chain, we would take immediate action.
We remain committed to applying multiple measures to mitigate the risk of fraud in our supply chains, such as:
Neste produces its renewable products from a wide variety of raw materials that it sources from over 60 countries on six continents. We are committed to ensuring that all the renewable raw materials we use and the renewable products we produce always meet the relevant legal requirements in all our markets. With this we continue to support our customers in reducing emissions and mitigating climate change in Europe and around the world.
Further information: Please contact Neste's media service, tel. +358 800 4025 / [email protected] (weekdays from 8.30 a.m. to 4.00 p.m. EET). Please subscribe to Neste’s releases at https://www.neste.com/media/subscribe.
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What do multiple arrests in Indonesia mean for Europe’s biofuels policy?
Arrests linked to palm oil fraud raise concerns over Europe's capacity to verify waste biofuel supplies
Handcuffed, masked and clad in a pink vest, Fadjar Donny Tjahjadi, the Indonesian Technical Director of Customs, is led towards a prison vehicle. Alongside ten other suspects, including two civil servants and eight private industry players, he stands accused of facilitating the export of hundreds of millions of euros worth of crude palm oil, illegally mislabelled as Palm Oil Mill Effluent (POME).
Still in custody, the suspects face charges of tax evasion that could carry sentences of up to life in prison.
As reported today by investigative journalists, Source Material, those arrested have been supplying POME to the EU’s top biofuel producers, including Eni, Repsol and Neste.
For European policymakers, the images should be striking. Waste biofuels have been a big part of Europe's green energy transition. Most recently, they have been utilised in the push back against the CO2 regulation as an offset option for car manufacturers to continue selling internal combustion engines after 2035.
But for years, NGOs, industry insiders and several EU governments have warned that something was wrong with the bloc’s rapidly growing consumption of imported waste-based biofuels.
Now, those concerns have come to a head.
Europe’s favourite biofuel feedstock
Over the past five years, the EU’s biofuels market has undergone a profound transformation.
In 2019, the EU decided to phase out the use of palm oil in biofuels due to its links with deforestation and land-use change. Attention immediately turned to biofuels made from “waste” materials, such as POME and Used Cooking Oil (UCO), which, in theory, should not drive additional land demand.
However, the sudden surge in demand raised an obvious question: how much of this stuff actually exists? Transportenvironment
--------
Indonesia Boosts ISPO Standards to Support 48 Million Ton Palm Oil Production
PALMOILMAGAZINE, JAKARTA – The Indonesian government continues to strengthen governance in the national palm oil industry through the implementation of the mandatory Indonesian Sustainable Palm Oil (ISPO) certification. The policy forms part of a broader strategy to maintain the competitiveness of Indonesia’s palm oil sector amid increasing global market pressures and evolving sustainability standards.
Agriculture Minister Andi Amran Sulaiman believes that strengthening sustainability standards is a fundamental step to ensure that Indonesia’s palm oil remains competitive in international markets while also generating added value domestically.
“Indonesia must not step back. Palm oil is one of the nation’s economic strengths. Therefore, its governance must be strong and sustainable, while also being pushed toward downstream development so that the economic benefits can be expanded further,” Amran said in an official statement received by Palmoilmagazine.com on Friday (March 6, 2026).
According to him, the transformation of Indonesia’s plantation subsector must focus on expanding downstream industries. This approach would allow palm oil to move beyond exporting raw materials and instead serve as a foundation for strengthening national industrialization.
Indonesia’s Palm Oil Productivity Remains Globally Competitive
Meanwhile, Acting Director General of Plantations Abdul Roni Angkat noted that Indonesia’s palm oil industry holds a strong advantage in productivity and land efficiency compared with other vegetable oil crops.
With plantation coverage reaching around 16.83 million hectares and crude palm oil (CPO) production projected to reach 48.12 million tons in 2025, Indonesia continues to maintain its position as the world’s largest palm oil producer.
Beyond being a major contributor to national export revenues, the palm oil sector also provides employment for more than 16 million people, including around 5.2 million smallholder farmers.
Roni added that the government continues to strengthen support for palm oil farmers through various programs, including the smallholder replanting program (PSR), infrastructure support, human resource development, as well as research and innovation initiatives.
“Palm oil supports millions of livelihoods. Therefore, productivity improvements must go hand in hand with sustainability,” he said. Palm Oil Magazine
Finnish palm oil fraud; Neste under investigation
Finnish fuel producer Neste has been linked to an Indonesian palm oil fraud probe over shipments labelled as biofuel waste.
Finnish sustainable aviation fuel producer Neste has been named among European companies that received shipments from Indonesian firms under investigation in a palm oil fraud case, according to an AFP and SourceMaterial investigation.
The Indonesian probe alleges that companies and officials falsely labelled palm oil as palm oil mill effluent, known as POME, a waste byproduct used in biofuel production. Authorities say the practice may have helped firms avoid higher taxes and cost the Indonesian state millions in lost revenue.
The report said shipments labelled as POME were sent to both Neste and Italian energy company Eni from Indonesian suppliers now linked to the investigation. There is no suggestion that Neste or the other buyers knew about or were involved in any fraud.
Neste said it had instructed its supplier to exclude the implicated companies after the Indonesian investigation became public. The company also said tests on shipment samples from 2023 to 2025 were consistent with palm-derived waste rather than palm oil.
The case has raised new questions about oversight in the biofuel supply chain. Palm oil has long been linked to deforestation, and the European Union is due to ban its use in biofuel from 2030. Scandasia
--------
Neste supports strong measures to mitigate the risk of fraud in biofuels and renewable raw materials supply chains
As a response to recent media coverage on suspected cases of fraud related to renewable raw materials business and its alleged connections to the biofuels industry, we wish to emphasize that Neste is currently not aware of any verified cases of fraud (i.e. mislabeling or fraudulent mixing of raw materials) that would be directly connected to Neste’s raw material sourcing.
Neste has taken the risk of fraud very seriously already for years and has developed robust methods to mitigate fraud risk in its renewable raw material supply chains. As fraud is impossible to tackle by any single company alone, we are involved in multiple initiatives to develop stronger measures to combat fraud. Detecting and verifying fraudulent practices requires a combination of measures. Should we detect any evidence of fraudulent activity in our supply chain, we would take immediate action.
We remain committed to applying multiple measures to mitigate the risk of fraud in our supply chains, such as:
- Rigorous supplier selection and auditing: Neste requires all partners to adhere to its strict Supplier Code of Conduct. Compliance is monitored through audits conducted by both Neste and independent third-party experts to verify ethical business practices and regulatory adherence.
- Traceability to point of origin: Neste mandates that all renewable raw materials are traceable back to their point of origin, accepting only materials that fully meet the legal requirements of its key markets.
- Supply chain integration and local presence: To gain better visibility and enable closer engagement Neste has shifted toward a more integrated model. This includes establishing local offices in key sourcing regions (e.g., Shanghai, Melbourne) and acquiring waste collection and trading companies (e.g., Mahoney Environmental, Agri Trading) to secure direct access to renewable raw materials.
- Physical and chemical analytics: Neste uses laboratory testing to manage raw material authenticity. By analyzing parameters and markers (free fatty acids, FFA; volatile organic compounds, VOC; and moisture content; and in our more advanced analyses squalene or carotenoids, among others), Neste aims to detect abnormalities, contamination, or mislabeling before materials enter the refinery process.
- Collaboration and support for digital tracking and active participation in industry workgroups: Recognizing that no company can tackle fraud alone, Neste supports international cooperation and digital initiatives. This includes participating in the EU's Union Database (UDB) for enhanced traceability and supporting local systems like Malaysia's eCOSS to prevent the leakage of subsidized oils into fraudulent channels. Neste actively contributes to the development of new analytical methods and standards through organizations like the ISCC (International Sustainability and Carbon Certification), specifically focusing on identifying the contamination of used cooking oil (UCO) with palm oil.
Neste produces its renewable products from a wide variety of raw materials that it sources from over 60 countries on six continents. We are committed to ensuring that all the renewable raw materials we use and the renewable products we produce always meet the relevant legal requirements in all our markets. With this we continue to support our customers in reducing emissions and mitigating climate change in Europe and around the world.
Further information: Please contact Neste's media service, tel. +358 800 4025 / [email protected] (weekdays from 8.30 a.m. to 4.00 p.m. EET). Please subscribe to Neste’s releases at https://www.neste.com/media/subscribe.
--------
What do multiple arrests in Indonesia mean for Europe’s biofuels policy?
Arrests linked to palm oil fraud raise concerns over Europe's capacity to verify waste biofuel supplies
Handcuffed, masked and clad in a pink vest, Fadjar Donny Tjahjadi, the Indonesian Technical Director of Customs, is led towards a prison vehicle. Alongside ten other suspects, including two civil servants and eight private industry players, he stands accused of facilitating the export of hundreds of millions of euros worth of crude palm oil, illegally mislabelled as Palm Oil Mill Effluent (POME).
Still in custody, the suspects face charges of tax evasion that could carry sentences of up to life in prison.
As reported today by investigative journalists, Source Material, those arrested have been supplying POME to the EU’s top biofuel producers, including Eni, Repsol and Neste.
For European policymakers, the images should be striking. Waste biofuels have been a big part of Europe's green energy transition. Most recently, they have been utilised in the push back against the CO2 regulation as an offset option for car manufacturers to continue selling internal combustion engines after 2035.
But for years, NGOs, industry insiders and several EU governments have warned that something was wrong with the bloc’s rapidly growing consumption of imported waste-based biofuels.
Now, those concerns have come to a head.
Europe’s favourite biofuel feedstock
Over the past five years, the EU’s biofuels market has undergone a profound transformation.
In 2019, the EU decided to phase out the use of palm oil in biofuels due to its links with deforestation and land-use change. Attention immediately turned to biofuels made from “waste” materials, such as POME and Used Cooking Oil (UCO), which, in theory, should not drive additional land demand.
However, the sudden surge in demand raised an obvious question: how much of this stuff actually exists? Transportenvironment
--------
Indonesia Boosts ISPO Standards to Support 48 Million Ton Palm Oil Production
PALMOILMAGAZINE, JAKARTA – The Indonesian government continues to strengthen governance in the national palm oil industry through the implementation of the mandatory Indonesian Sustainable Palm Oil (ISPO) certification. The policy forms part of a broader strategy to maintain the competitiveness of Indonesia’s palm oil sector amid increasing global market pressures and evolving sustainability standards.
Agriculture Minister Andi Amran Sulaiman believes that strengthening sustainability standards is a fundamental step to ensure that Indonesia’s palm oil remains competitive in international markets while also generating added value domestically.
“Indonesia must not step back. Palm oil is one of the nation’s economic strengths. Therefore, its governance must be strong and sustainable, while also being pushed toward downstream development so that the economic benefits can be expanded further,” Amran said in an official statement received by Palmoilmagazine.com on Friday (March 6, 2026).
According to him, the transformation of Indonesia’s plantation subsector must focus on expanding downstream industries. This approach would allow palm oil to move beyond exporting raw materials and instead serve as a foundation for strengthening national industrialization.
Indonesia’s Palm Oil Productivity Remains Globally Competitive
Meanwhile, Acting Director General of Plantations Abdul Roni Angkat noted that Indonesia’s palm oil industry holds a strong advantage in productivity and land efficiency compared with other vegetable oil crops.
With plantation coverage reaching around 16.83 million hectares and crude palm oil (CPO) production projected to reach 48.12 million tons in 2025, Indonesia continues to maintain its position as the world’s largest palm oil producer.
Beyond being a major contributor to national export revenues, the palm oil sector also provides employment for more than 16 million people, including around 5.2 million smallholder farmers.
Roni added that the government continues to strengthen support for palm oil farmers through various programs, including the smallholder replanting program (PSR), infrastructure support, human resource development, as well as research and innovation initiatives.
“Palm oil supports millions of livelihoods. Therefore, productivity improvements must go hand in hand with sustainability,” he said. Palm Oil Magazine
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March 16, 2026
Indonesia open to breaching deficit cap only in crisis
President Prabowo Subianto says Indonesia would approve a short‑term rise in the deficit above 3% of gross domestic product only if high oil prices persist due to the Middle East war.
JAKARTA: Indonesia would only approve a short-term increase in the deficit beyond 3% of gross domestic product if oil prices stay elevated for a sustained period due to the US-Israel war in Iran, president Prabowo Subianto said in an interview with Bloomberg News published today.
Here are some key points from the interview:
Prabowo said he has no plan to revise Indonesia’s legally mandated deficit cap of 3% of GDP “unless there’s a very big emergency like Covid.
The president expressed confidence in his administration’s ability to avoid raising fuel prices, but cautioned that it would be “very difficult” if oil exceeds US$120 per barrel for a protracted period.
Prabowo said his administration seeks to eliminate costly fuel subsidies over the next three years and replace them with 100GW of solar power.
“We cannot survive on subsidies in the long run,” Prabowo said.
Prabowo said he wouldn’t touch his signature free meals programme, which accounts for 11% of the central government’s budget this year, calling it “a stimulus for growth”.
Last week, Indonesia’s senior economic minister said the country may impose additional taxes on certain commodities, such as palm oil, if the government needs to contain the oil spike’s impact on the budget. Reuters/FMT
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Jakarta: Subsidy bill looms over Prabowo’s growth goals amid oil spike
Investing.com -- Indonesia’s fragile fiscal balance is facing a fresh test as the escalating conflict in the Persian Gulf threatens to upend energy supplies just as the country prepares for the massive Eid Al-Fitr travel surge.
According to reports, the administration of President Prabowo Subianto is grappling with the "double whammy" of spiking regional fuel prices and a looming 12% jump in gasoline consumption as more than 100 million citizens begin their annual migration home.
The subsidy strain and the $92 ceiling
The primary concern for Jakarta remains the ballooning cost of maintaining some of the region’s most aggressive fuel price caps. Even before the recent hostilities pushed crude prices toward the $100 mark, Indonesia had earmarked approximately 381 trillion rupiah ($22.5 billion), roughly 10% of its total budget, for energy subsidies.
Finance Minister Purbaya Yudhi Sadewa has already warned that the country risks breaching its legally mandated 3% deficit ceiling if the Indonesian crude benchmark averages above $92 per barrel this year.
"The government is asking the public to remain calm without presenting concrete solutions," noted Bhima Yudhistira Adhinegara of the Center of Economic and Law Studies. The administration has ruled out price hikes before the Eid holiday to protect consumer spending.
But analysts suggest the "holding pattern" may put the government on a collision course with foreign investors, particularly as the rupiah continues to trade near record lows.
Reserve vulnerability and the ‘Hormuz’ bottleneck
Indonesia, a net importer of both crude and refined fuels, operates with some of the lowest fuel stockpiles in Southeast Asia, unlike its neighbors. Leaving its domestic economy uniquely exposed to the ongoing disruption in the Strait of Hormuz.
The Energy Ministry insists that multiple sourcing routes remain open, as local stocks of liquefied petroleum gas (LPG), critical for both industrial processes and the traditional cooking associated with Eid, currently stand at a lean 12 to 15 days.
The crisis has already forced other Southeast Asian nations to mandate work-from-home orders and energy-saving measures, but Jakarta’s insistence on price stability remains a high-stakes gamble.
Investors are concerned whether the windfall from Indonesia’s own commodity exports, such as coal and palm oil, can offset the rising subsidy bill, or if the "energy crisis" will ultimately force a painful recalibration of Prabowo’s ambitious growth agenda. Investing
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Indonesia firms in palm oil fraud probe supplied fuel majors
Indonesian companies targeted in a palm oil fraud probe supplied European firms including Italian energy giant Eni and Finnish sustainable aviation fuel leader Neste, an investigation by AFP and SourceMaterial has found.
The links raise fresh questions about supply chains in the biofuel sector, experts said, and follow persistent allegations of fraud involving palm oil products used as fuel feedstocks.
There is no suggestion that Eni, Neste or other companies supplied by Indonesian firms implicated in the probe had knowledge of or involvement in fraud.
The Indonesian probe alleges local companies and government officials conspired to pass off palm oil as a waste byproduct called palm oil mill effluent (POME), including by offering bribes.
For the Indonesian government, this is a financial issue -- the higher tax on palm oil means labelling the product as POME allegedly defrauded authorities of millions of dollars in revenue.
For customers, the allegations threaten sustainability pledges. Palm oil has long been associated with deforestation, and both Eni and Neste have officially removed it from their supply chains.
The European Union will ban its use in biofuel from 2030.
Both Eni and Neste received multiple shipments described as POME from Indonesian companies accused of mislabelling palm oil as the waste byproduct.
Experts and campaigners said the alleged fraud illustrated the sector's oversight problems.
"The EU rightly decided to phase out palm oil biofuels in 2019 because of its links to deforestation," said Cian Delaney, biofuels campaigner at environmental NGO Transport and Environment (T&E).
"But disguising palm oil as waste products like POME... has been far too easy for suppliers and traders. Verification and certification of these imports is clearly failing," Delaney said.
- Persistent fraud claims -
Eni said it had no direct contracts with accused companies and received shipments through an accredited supplier who "immediately suspended all operations with the companies involved in the investigation".
The supplier, Enviq, did not respond to requests for comment.
Neste also said it had instructed its supplier to exclude implicated companies from its supply chain after the Indonesian investigation was announced.
It said all deliveries linked to suppliers implicated in the Indonesian investigation had previously been sampled by independent surveyors who confirmed they "met the specifications for palm-derived waste feedstock."
Indonesia has long suspected POME fraud and last year temporarily limited exports after trade data recorded volumes far exceeding estimated available supply. Yahoo Finance
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Indonesia open to breaching deficit cap only in crisis
President Prabowo Subianto says Indonesia would approve a short‑term rise in the deficit above 3% of gross domestic product only if high oil prices persist due to the Middle East war.
JAKARTA: Indonesia would only approve a short-term increase in the deficit beyond 3% of gross domestic product if oil prices stay elevated for a sustained period due to the US-Israel war in Iran, president Prabowo Subianto said in an interview with Bloomberg News published today.
Here are some key points from the interview:
Prabowo said he has no plan to revise Indonesia’s legally mandated deficit cap of 3% of GDP “unless there’s a very big emergency like Covid.
The president expressed confidence in his administration’s ability to avoid raising fuel prices, but cautioned that it would be “very difficult” if oil exceeds US$120 per barrel for a protracted period.
Prabowo said his administration seeks to eliminate costly fuel subsidies over the next three years and replace them with 100GW of solar power.
“We cannot survive on subsidies in the long run,” Prabowo said.
Prabowo said he wouldn’t touch his signature free meals programme, which accounts for 11% of the central government’s budget this year, calling it “a stimulus for growth”.
Last week, Indonesia’s senior economic minister said the country may impose additional taxes on certain commodities, such as palm oil, if the government needs to contain the oil spike’s impact on the budget. Reuters/FMT
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Jakarta: Subsidy bill looms over Prabowo’s growth goals amid oil spike
Investing.com -- Indonesia’s fragile fiscal balance is facing a fresh test as the escalating conflict in the Persian Gulf threatens to upend energy supplies just as the country prepares for the massive Eid Al-Fitr travel surge.
According to reports, the administration of President Prabowo Subianto is grappling with the "double whammy" of spiking regional fuel prices and a looming 12% jump in gasoline consumption as more than 100 million citizens begin their annual migration home.
The subsidy strain and the $92 ceiling
The primary concern for Jakarta remains the ballooning cost of maintaining some of the region’s most aggressive fuel price caps. Even before the recent hostilities pushed crude prices toward the $100 mark, Indonesia had earmarked approximately 381 trillion rupiah ($22.5 billion), roughly 10% of its total budget, for energy subsidies.
Finance Minister Purbaya Yudhi Sadewa has already warned that the country risks breaching its legally mandated 3% deficit ceiling if the Indonesian crude benchmark averages above $92 per barrel this year.
"The government is asking the public to remain calm without presenting concrete solutions," noted Bhima Yudhistira Adhinegara of the Center of Economic and Law Studies. The administration has ruled out price hikes before the Eid holiday to protect consumer spending.
But analysts suggest the "holding pattern" may put the government on a collision course with foreign investors, particularly as the rupiah continues to trade near record lows.
Reserve vulnerability and the ‘Hormuz’ bottleneck
Indonesia, a net importer of both crude and refined fuels, operates with some of the lowest fuel stockpiles in Southeast Asia, unlike its neighbors. Leaving its domestic economy uniquely exposed to the ongoing disruption in the Strait of Hormuz.
The Energy Ministry insists that multiple sourcing routes remain open, as local stocks of liquefied petroleum gas (LPG), critical for both industrial processes and the traditional cooking associated with Eid, currently stand at a lean 12 to 15 days.
The crisis has already forced other Southeast Asian nations to mandate work-from-home orders and energy-saving measures, but Jakarta’s insistence on price stability remains a high-stakes gamble.
Investors are concerned whether the windfall from Indonesia’s own commodity exports, such as coal and palm oil, can offset the rising subsidy bill, or if the "energy crisis" will ultimately force a painful recalibration of Prabowo’s ambitious growth agenda. Investing
--------
Indonesia firms in palm oil fraud probe supplied fuel majors
Indonesian companies targeted in a palm oil fraud probe supplied European firms including Italian energy giant Eni and Finnish sustainable aviation fuel leader Neste, an investigation by AFP and SourceMaterial has found.
The links raise fresh questions about supply chains in the biofuel sector, experts said, and follow persistent allegations of fraud involving palm oil products used as fuel feedstocks.
There is no suggestion that Eni, Neste or other companies supplied by Indonesian firms implicated in the probe had knowledge of or involvement in fraud.
The Indonesian probe alleges local companies and government officials conspired to pass off palm oil as a waste byproduct called palm oil mill effluent (POME), including by offering bribes.
For the Indonesian government, this is a financial issue -- the higher tax on palm oil means labelling the product as POME allegedly defrauded authorities of millions of dollars in revenue.
For customers, the allegations threaten sustainability pledges. Palm oil has long been associated with deforestation, and both Eni and Neste have officially removed it from their supply chains.
The European Union will ban its use in biofuel from 2030.
Both Eni and Neste received multiple shipments described as POME from Indonesian companies accused of mislabelling palm oil as the waste byproduct.
Experts and campaigners said the alleged fraud illustrated the sector's oversight problems.
"The EU rightly decided to phase out palm oil biofuels in 2019 because of its links to deforestation," said Cian Delaney, biofuels campaigner at environmental NGO Transport and Environment (T&E).
"But disguising palm oil as waste products like POME... has been far too easy for suppliers and traders. Verification and certification of these imports is clearly failing," Delaney said.
- Persistent fraud claims -
Eni said it had no direct contracts with accused companies and received shipments through an accredited supplier who "immediately suspended all operations with the companies involved in the investigation".
The supplier, Enviq, did not respond to requests for comment.
Neste also said it had instructed its supplier to exclude implicated companies from its supply chain after the Indonesian investigation was announced.
It said all deliveries linked to suppliers implicated in the Indonesian investigation had previously been sampled by independent surveyors who confirmed they "met the specifications for palm-derived waste feedstock."
Indonesia has long suspected POME fraud and last year temporarily limited exports after trade data recorded volumes far exceeding estimated available supply. Yahoo Finance
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March 15, 2026
Abia State To Sign $200m MoU With Presco For Palm Oil Investment
Abia State governor, Alex Otti, has disclosed that the state government will soon sign a $200 million Memorandum of Understanding (MoU) with Presco Plc, a major oil palm producer operating in Nigeria and Ghana, to boost palm oil production in the state.
Otti made this known on Friday while receiving a delegation from the company led by its chairman, Olakanmi Rasheed Sarumi, at his office in Nvosi, Isialangwa South Local Government Area.
The governor said the next stage of the partnership would involve preparing and signing the MoU between the Abia State Government and Presco Plc to formalise the collaboration before the project is officially launched.
He highlighted Abia’s rich agricultural heritage, describing agriculture as a key pathway for economic growth and job creation in Nigeria.
Otti explained that the proposed development of a 14,000-hectare plantation could serve as the starting point for the investment, noting that Abia’s favourable topography and fertile soil could support high agricultural yields.
“In principle, we are in agreement with you. I am happy that you went back to history, to the days of Dr Michael Okpara, who actually set up these farm settlements in the southeast.
“I think it is a good way to start. I believe that 14,000 hectares may just be for starters, because like you rightly observed, we have the topography and we are blessed with the quality of land that would give you one of the highest yields,” Otti said.
The governor assured the investors that his administration was determined to restore Abia to the era of the late Michael Okpara, when oil palm production served as the economic backbone of the former Eastern Region.
He commended Presco Plc for conducting due diligence and presenting a comprehensive proposal to the state government.
Otti also assured the company that the government would assist in facilitating land acquisition and provide adequate security support for the project.
He added that the state maintains a long-standing policy of ensuring that host communities receive appropriate compensation to guarantee peaceful and mutually beneficial development.
Earlier, the chairman of Presco Plc, Olakanmi Rasheed Sarumi, said the visit was aimed at exploring opportunities to expand the company’s operations into Abia State.
Sarumi revealed that Presco Plc plans to invest $200 million in palm oil production and processing in the state.
He explained that the project would position Abia as a major palm oil processing hub in the South-East and attract downstream industries due to the wide industrial applications of crude palm oil. LeadershipNG
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Telangana Eyes Oil Palm Future
Hyderabad: Agriculture minister Tummala Nageswara Rao said the state government was taking steps to position Telangana as the country’s oil palm hub. With Chief Minister A. Revanth Reddy’s encouragement, the government was expanding cultivation statewide to provide farmers with stable income. Oil palm, he noted, offers continuous returns for 25 to 30 years once planted. Rao, accompanied by transport minister Ponnam Prabhakar, Oil Fed chairman Janga Raghavareddy and senior officials, inspected the ultramodern oil palm processing factory built at Narmetta in Nangnoor mandal, Siddipet district, under the Telangana Oil Fed Corporation.
Completed in 18 months at a cost of ₹300 crore, the Narmetta facility will be inaugurated by the Chief Minister. Built with Malaysian technology, it is among the most modern in the country, capable of processing 30 to 120 tonnes of fruit bunches per hour. The factory will produce crude palm oil and palm kernel oil, alongside a 4 MW bio power plant and a water purification centre operating on a zero liquid discharge policy. Waste from the production process will be used to generate electricity.
Rao stressed the importance of crop diversification. With Telangana now the country’s top paddy producer, he warned that central limits on grain procurement make it vital for farmers to adopt commercial crops such as horticulture, vegetables and palm oil. Oil palm, he said, is a reliable alternative for higher income. Farmers can also intercrop cocoa, banana and macadamia in oil palm orchards, creating additional revenue streams. Unlike grain sales, palm oil payments are made quickly, while risks from wild boar, forest pigs and adverse weather are minimal. Subsidies of up to ₹50,921 are available, with free seedlings and government provided drip equipment. Oil palm is currently cultivated across about 2.91 lakh acres in Telangana. ENDS
https://www.deccanchronicle.com/southern-states/telangana/telangana-eyes-oil-palm-future-1943941
Abia State To Sign $200m MoU With Presco For Palm Oil Investment
Abia State governor, Alex Otti, has disclosed that the state government will soon sign a $200 million Memorandum of Understanding (MoU) with Presco Plc, a major oil palm producer operating in Nigeria and Ghana, to boost palm oil production in the state.
Otti made this known on Friday while receiving a delegation from the company led by its chairman, Olakanmi Rasheed Sarumi, at his office in Nvosi, Isialangwa South Local Government Area.
The governor said the next stage of the partnership would involve preparing and signing the MoU between the Abia State Government and Presco Plc to formalise the collaboration before the project is officially launched.
He highlighted Abia’s rich agricultural heritage, describing agriculture as a key pathway for economic growth and job creation in Nigeria.
Otti explained that the proposed development of a 14,000-hectare plantation could serve as the starting point for the investment, noting that Abia’s favourable topography and fertile soil could support high agricultural yields.
“In principle, we are in agreement with you. I am happy that you went back to history, to the days of Dr Michael Okpara, who actually set up these farm settlements in the southeast.
“I think it is a good way to start. I believe that 14,000 hectares may just be for starters, because like you rightly observed, we have the topography and we are blessed with the quality of land that would give you one of the highest yields,” Otti said.
The governor assured the investors that his administration was determined to restore Abia to the era of the late Michael Okpara, when oil palm production served as the economic backbone of the former Eastern Region.
He commended Presco Plc for conducting due diligence and presenting a comprehensive proposal to the state government.
Otti also assured the company that the government would assist in facilitating land acquisition and provide adequate security support for the project.
He added that the state maintains a long-standing policy of ensuring that host communities receive appropriate compensation to guarantee peaceful and mutually beneficial development.
Earlier, the chairman of Presco Plc, Olakanmi Rasheed Sarumi, said the visit was aimed at exploring opportunities to expand the company’s operations into Abia State.
Sarumi revealed that Presco Plc plans to invest $200 million in palm oil production and processing in the state.
He explained that the project would position Abia as a major palm oil processing hub in the South-East and attract downstream industries due to the wide industrial applications of crude palm oil. LeadershipNG
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Telangana Eyes Oil Palm Future
Hyderabad: Agriculture minister Tummala Nageswara Rao said the state government was taking steps to position Telangana as the country’s oil palm hub. With Chief Minister A. Revanth Reddy’s encouragement, the government was expanding cultivation statewide to provide farmers with stable income. Oil palm, he noted, offers continuous returns for 25 to 30 years once planted. Rao, accompanied by transport minister Ponnam Prabhakar, Oil Fed chairman Janga Raghavareddy and senior officials, inspected the ultramodern oil palm processing factory built at Narmetta in Nangnoor mandal, Siddipet district, under the Telangana Oil Fed Corporation.
Completed in 18 months at a cost of ₹300 crore, the Narmetta facility will be inaugurated by the Chief Minister. Built with Malaysian technology, it is among the most modern in the country, capable of processing 30 to 120 tonnes of fruit bunches per hour. The factory will produce crude palm oil and palm kernel oil, alongside a 4 MW bio power plant and a water purification centre operating on a zero liquid discharge policy. Waste from the production process will be used to generate electricity.
Rao stressed the importance of crop diversification. With Telangana now the country’s top paddy producer, he warned that central limits on grain procurement make it vital for farmers to adopt commercial crops such as horticulture, vegetables and palm oil. Oil palm, he said, is a reliable alternative for higher income. Farmers can also intercrop cocoa, banana and macadamia in oil palm orchards, creating additional revenue streams. Unlike grain sales, palm oil payments are made quickly, while risks from wild boar, forest pigs and adverse weather are minimal. Subsidies of up to ₹50,921 are available, with free seedlings and government provided drip equipment. Oil palm is currently cultivated across about 2.91 lakh acres in Telangana. ENDS
https://www.deccanchronicle.com/southern-states/telangana/telangana-eyes-oil-palm-future-1943941
March 14, 2026
Indonesia minister says sustained high oil prices could see budget deficit breach mandated limit
JAKARTA – Indonesia’s senior economic minister said on March 13 that the country may impose additional taxes on certain commodities, such as palm oil, if the government needs to reduce the impact on the budget from rising global oil prices.
Mr Airlangga Hartarto, speaking at a briefing of the national cabinet, said Indonesia, a global commodities powerhouse and the world’s largest producer of palm oil and nickel, could also impose additional taxes on nickel, gold, and copper.
At the briefing, Indonesian President Prabowo Subianto said austerity measures could be taken to reduce the impact of rising global oil prices.
Mr Airlangga said government modelling showed that if the Iran war caused oil prices to stay high, it would be difficult to keep the fiscal deficit under a legal mandate of 3 per cent of GDP without cutting spending or reducing economic growth.
“These are scenarios we may have to discuss,” he said, and spoke about the option to issue an emergency order if the deficit limit needed to be breached.
He said the government had forecast three scenarios to predict how the Middle East war could impact South-east Asia’s largest economy. Straits Times
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Indonesia Tightens Export Of Coal, Palm Oil, Threatens Permit Cancellation If Breached
Indonesian President Prabowo Subianto has called on producers and distributors of coal, crude palm oil, and their derivatives to prioritise domestic needs before exporting, signaling tighter controls on commodity exports.
“I would like to stress the need to prioritize coal production for our national need. This directive also applies to palm oil,” he said while chairing a plenary cabinet meeting at the State Palace in Jakarta on Friday (March 13).
Addressing ministers and state agency leaders, Prabowo reiterated the government’s commitment to ensuring that Indonesia’s natural wealth benefits the broader public.
He assured the public that national interests underpin every policy governing the management of the country’s abundant natural resources.
Adding that while companies may run businesses, all natural resources ultimately belong to the Indonesian nation.
The country plans to withhold export permits from those that fail to meet domestic needs. Business Today
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India’s palm oil imports surge 11% to six-month high on price discounts
Saturday, 14 March, 2026, 12 : 00 PM [IST]
Our Bureau, Mumbai
India’s palm oil imports jumped 11 per cent in February to reach a six-month high, as refiners increased purchases due to attractive price discounts compared with other edible oils.
According to industry data, palm oil imports rose to 847,689 tonnes in February, up from 766,384 tonnes in January, making it the highest monthly import level since August 2025. The surge was largely driven by the lower price of palm oil compared with competing oils such as soybean and sunflower oil.
India, the world’s largest importer of vegetable oils, relies heavily on overseas supplies to meet its domestic demand. Traders said refiners increased palm oil purchases as it was available at a significant discount compared with rival oils in the international market. At one point, palm oil was priced nearly $100 per tonne cheaper than soybean oil, prompting buyers to switch to the tropical oil.
However, the price gap between palm oil and soybean oil has narrowed in recent weeks to around $20 per tonne, which may slow down the pace of imports in the coming months, market participants said.
Meanwhile, imports of other edible oils showed mixed trends during the month. Soybean oil imports rose 7 per cent to about 299,046 tonnes, recovering from the previous month’s multi-month low. In contrast, sunflower oil imports declined sharply by nearly 45 per cent to around 145,308 tonnes, reflecting supply uncertainties and higher prices.
Despite the strong growth in palm oil purchases, India’s total vegetable oil imports fell about 2 per cent in February to 1.32 million tonnes, mainly due to the steep decline in sunflower oil shipments.
Industry experts note that India’s edible oil import patterns are highly sensitive to price movements in global markets. As palm oil continues to remain competitively priced compared with other oils, it is likely to retain a significant share in India’s edible oil imports in the near term.
However, geopolitical developments, supply concerns and freight costs could continue to influence the country’s edible oil procurement strategy in the coming months. FNB News
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EU deforestation law will damage trade with US, Trump official warns
BRUSSELS — The European Union’s anti-deforestation law will put United States producers off exporting to the European market, harming EU competitiveness, a senior official with the U.S. Department of Agriculture told reporters in Brussels Friday.
The law, also called EUDR, is “going to discourage us from looking at the European market” and from “paying attention to any European rules [linked to deforestation],” the official said. The law as it stands would affect $9 billion of U.S. trade to the EU annually, added the official, who spoke to journalists on condition that he was not named.
A delegation of U.S. government representatives is finishing a tour of EU capitals — including Madrid, Rome, Paris, Berlin and Brussels — to lobby governments to simplify the EUDR ahead of an upcoming review of the rules next month. EE News
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Unregulated palm oil imports threatening local investments in Nigeria
Nigeria’s palm oil industry is facing renewed pressure as rising imports, policy uncertainty and structural bottlenecks threaten local production. Industry stakeholders have warned that a surge in cheap imports could undermine decades of investment aimed at rebuilding domestic capacity under the government’s backward integration policy.
In this interview, Graham Hefer, managing director Okomu Oil Palm Company Plc, spoke with TAOFEEK OYEDOKUN on the impact of illegal imports and import waivers on local producers, the sharp drop in palm oil prices, and the broader challenges facing the sector. He also discussed Okomu’s recent financial performance, Nigeria’s persistent palm oil supply gap, and why stronger policy coordination and enforcement are essential to restore investor confidence and revive the country’s competitiveness in the global palm oil market.
Stakeholders in the palm oil industry recently raised concerns about a surge in imports and policy inconsistencies affecting the sector. Nigeria also spent about $154 million importing crude palm oil in 2024, according to data from UN’s comtrade. How is this affecting Okomu and local producers?
The issue really comes down to whether imports are happening legally or illegally and whether the existing policies are being implemented properly.
Under Nigeria’s current policy framework, crude palm oil can be imported, but only under certain conditions. If it is imported from outside the ECOWAS region, it must attract the appropriate duties and levies. If it comes from ECOWAS countries, then the importer must provide a certificate of origin and pay the ECOWAS Trade Liberalisation Scheme (ETLS) levy, which is about 5 percent. However, refined palm oil and related vegetable oils are completely banned from importation.
So the policy is actually quite clear. The challenge is enforcement. What we are seeing in the market today is that some traders bring in products and mislabel them. They claim the product is crude palm oil, but in reality it is processed palm olein or other refined derivatives that should not be entering the country under current regulations.
In addition, many of these imports are not paying the required duties and levies. That means the government is losing revenue, while local producers are forced to compete with products that enter the market at artificially lower prices.
One of the tactics used is to claim the product is “crude palm olein,” which is often labelled with the same acronym, CPO, as crude palm oil. In reality, there is no such thing as crude palm olein; it is already a processed product. That is one way some operators circumvent the regulations.
The bigger problem is that a significant amount of this oil is simply being smuggled through porous land borders. Even if someone wants to pay duties, they often do not. The reality is that Nigeria’s borders are currently very porous, and smuggling affects almost every commodity, not just palm oil. For producers like us, it creates an extremely difficult environment. We are operating within the law, paying taxes and complying with regulatory standards, while illegal products enter the market and distort prices. That is not a sustainable situation for any industry.
When products enter the country illegally or under questionable classifications, they often bypass the regulatory agencies responsible for quality control. Business TodayNG
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Surge in global energy prices support bio-based commodities in Malaysia
KUALA LUMPUR, March 14 (Bernama) — The increase in global energy prices can potentially support demand for bio-based commodities such as palm oil, particularly in the biofuel sector, which can positively impact global prices.
According to the Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad, tensions in West Asia have contributed to rising global energy prices, indirectly influencing commodity prices, including palm oil.
“The Plantation and Commodities Ministry is monitoring closely developments in the geopolitical conflict in West Asia and its potential impact on global trade and commodity markets.
“Current developments have put pressure on global supply chains, particularly involving the energy, shipping, and logistics sectors,” she said in a statement today.
Additionally, Noraini said based on the ministry’s current assessment together with relevant agencies, exports of Malaysia’s main commodities, such as palm oil, rubber, pepper, cocoa, and wood-based products, are proceeding as usual.
“However, if the conflict continues for a prolonged period, the government expects logistics, transportation, and shipping insurance costs to rise, affecting operating costs,” she said.
The government will continue to work closely with industry players, regulatory agencies, and international trading partners to ensure smooth exports and the stability of the country’s commodity supply chain, she said.
“At the same time, the ministry will continue to strengthen the resilience of the plantation and commodities sector through market diversification strategies, increased productivity, and the strengthening of value-added Malaysian commodity products,” she added.
— BERNAMA
Indonesia minister says sustained high oil prices could see budget deficit breach mandated limit
JAKARTA – Indonesia’s senior economic minister said on March 13 that the country may impose additional taxes on certain commodities, such as palm oil, if the government needs to reduce the impact on the budget from rising global oil prices.
Mr Airlangga Hartarto, speaking at a briefing of the national cabinet, said Indonesia, a global commodities powerhouse and the world’s largest producer of palm oil and nickel, could also impose additional taxes on nickel, gold, and copper.
At the briefing, Indonesian President Prabowo Subianto said austerity measures could be taken to reduce the impact of rising global oil prices.
Mr Airlangga said government modelling showed that if the Iran war caused oil prices to stay high, it would be difficult to keep the fiscal deficit under a legal mandate of 3 per cent of GDP without cutting spending or reducing economic growth.
“These are scenarios we may have to discuss,” he said, and spoke about the option to issue an emergency order if the deficit limit needed to be breached.
He said the government had forecast three scenarios to predict how the Middle East war could impact South-east Asia’s largest economy. Straits Times
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Indonesia Tightens Export Of Coal, Palm Oil, Threatens Permit Cancellation If Breached
Indonesian President Prabowo Subianto has called on producers and distributors of coal, crude palm oil, and their derivatives to prioritise domestic needs before exporting, signaling tighter controls on commodity exports.
“I would like to stress the need to prioritize coal production for our national need. This directive also applies to palm oil,” he said while chairing a plenary cabinet meeting at the State Palace in Jakarta on Friday (March 13).
Addressing ministers and state agency leaders, Prabowo reiterated the government’s commitment to ensuring that Indonesia’s natural wealth benefits the broader public.
He assured the public that national interests underpin every policy governing the management of the country’s abundant natural resources.
Adding that while companies may run businesses, all natural resources ultimately belong to the Indonesian nation.
The country plans to withhold export permits from those that fail to meet domestic needs. Business Today
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India’s palm oil imports surge 11% to six-month high on price discounts
Saturday, 14 March, 2026, 12 : 00 PM [IST]
Our Bureau, Mumbai
India’s palm oil imports jumped 11 per cent in February to reach a six-month high, as refiners increased purchases due to attractive price discounts compared with other edible oils.
According to industry data, palm oil imports rose to 847,689 tonnes in February, up from 766,384 tonnes in January, making it the highest monthly import level since August 2025. The surge was largely driven by the lower price of palm oil compared with competing oils such as soybean and sunflower oil.
India, the world’s largest importer of vegetable oils, relies heavily on overseas supplies to meet its domestic demand. Traders said refiners increased palm oil purchases as it was available at a significant discount compared with rival oils in the international market. At one point, palm oil was priced nearly $100 per tonne cheaper than soybean oil, prompting buyers to switch to the tropical oil.
However, the price gap between palm oil and soybean oil has narrowed in recent weeks to around $20 per tonne, which may slow down the pace of imports in the coming months, market participants said.
Meanwhile, imports of other edible oils showed mixed trends during the month. Soybean oil imports rose 7 per cent to about 299,046 tonnes, recovering from the previous month’s multi-month low. In contrast, sunflower oil imports declined sharply by nearly 45 per cent to around 145,308 tonnes, reflecting supply uncertainties and higher prices.
Despite the strong growth in palm oil purchases, India’s total vegetable oil imports fell about 2 per cent in February to 1.32 million tonnes, mainly due to the steep decline in sunflower oil shipments.
Industry experts note that India’s edible oil import patterns are highly sensitive to price movements in global markets. As palm oil continues to remain competitively priced compared with other oils, it is likely to retain a significant share in India’s edible oil imports in the near term.
However, geopolitical developments, supply concerns and freight costs could continue to influence the country’s edible oil procurement strategy in the coming months. FNB News
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EU deforestation law will damage trade with US, Trump official warns
BRUSSELS — The European Union’s anti-deforestation law will put United States producers off exporting to the European market, harming EU competitiveness, a senior official with the U.S. Department of Agriculture told reporters in Brussels Friday.
The law, also called EUDR, is “going to discourage us from looking at the European market” and from “paying attention to any European rules [linked to deforestation],” the official said. The law as it stands would affect $9 billion of U.S. trade to the EU annually, added the official, who spoke to journalists on condition that he was not named.
A delegation of U.S. government representatives is finishing a tour of EU capitals — including Madrid, Rome, Paris, Berlin and Brussels — to lobby governments to simplify the EUDR ahead of an upcoming review of the rules next month. EE News
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Unregulated palm oil imports threatening local investments in Nigeria
Nigeria’s palm oil industry is facing renewed pressure as rising imports, policy uncertainty and structural bottlenecks threaten local production. Industry stakeholders have warned that a surge in cheap imports could undermine decades of investment aimed at rebuilding domestic capacity under the government’s backward integration policy.
In this interview, Graham Hefer, managing director Okomu Oil Palm Company Plc, spoke with TAOFEEK OYEDOKUN on the impact of illegal imports and import waivers on local producers, the sharp drop in palm oil prices, and the broader challenges facing the sector. He also discussed Okomu’s recent financial performance, Nigeria’s persistent palm oil supply gap, and why stronger policy coordination and enforcement are essential to restore investor confidence and revive the country’s competitiveness in the global palm oil market.
Stakeholders in the palm oil industry recently raised concerns about a surge in imports and policy inconsistencies affecting the sector. Nigeria also spent about $154 million importing crude palm oil in 2024, according to data from UN’s comtrade. How is this affecting Okomu and local producers?
The issue really comes down to whether imports are happening legally or illegally and whether the existing policies are being implemented properly.
Under Nigeria’s current policy framework, crude palm oil can be imported, but only under certain conditions. If it is imported from outside the ECOWAS region, it must attract the appropriate duties and levies. If it comes from ECOWAS countries, then the importer must provide a certificate of origin and pay the ECOWAS Trade Liberalisation Scheme (ETLS) levy, which is about 5 percent. However, refined palm oil and related vegetable oils are completely banned from importation.
So the policy is actually quite clear. The challenge is enforcement. What we are seeing in the market today is that some traders bring in products and mislabel them. They claim the product is crude palm oil, but in reality it is processed palm olein or other refined derivatives that should not be entering the country under current regulations.
In addition, many of these imports are not paying the required duties and levies. That means the government is losing revenue, while local producers are forced to compete with products that enter the market at artificially lower prices.
One of the tactics used is to claim the product is “crude palm olein,” which is often labelled with the same acronym, CPO, as crude palm oil. In reality, there is no such thing as crude palm olein; it is already a processed product. That is one way some operators circumvent the regulations.
The bigger problem is that a significant amount of this oil is simply being smuggled through porous land borders. Even if someone wants to pay duties, they often do not. The reality is that Nigeria’s borders are currently very porous, and smuggling affects almost every commodity, not just palm oil. For producers like us, it creates an extremely difficult environment. We are operating within the law, paying taxes and complying with regulatory standards, while illegal products enter the market and distort prices. That is not a sustainable situation for any industry.
When products enter the country illegally or under questionable classifications, they often bypass the regulatory agencies responsible for quality control. Business TodayNG
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Surge in global energy prices support bio-based commodities in Malaysia
KUALA LUMPUR, March 14 (Bernama) — The increase in global energy prices can potentially support demand for bio-based commodities such as palm oil, particularly in the biofuel sector, which can positively impact global prices.
According to the Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad, tensions in West Asia have contributed to rising global energy prices, indirectly influencing commodity prices, including palm oil.
“The Plantation and Commodities Ministry is monitoring closely developments in the geopolitical conflict in West Asia and its potential impact on global trade and commodity markets.
“Current developments have put pressure on global supply chains, particularly involving the energy, shipping, and logistics sectors,” she said in a statement today.
Additionally, Noraini said based on the ministry’s current assessment together with relevant agencies, exports of Malaysia’s main commodities, such as palm oil, rubber, pepper, cocoa, and wood-based products, are proceeding as usual.
“However, if the conflict continues for a prolonged period, the government expects logistics, transportation, and shipping insurance costs to rise, affecting operating costs,” she said.
The government will continue to work closely with industry players, regulatory agencies, and international trading partners to ensure smooth exports and the stability of the country’s commodity supply chain, she said.
“At the same time, the ministry will continue to strengthen the resilience of the plantation and commodities sector through market diversification strategies, increased productivity, and the strengthening of value-added Malaysian commodity products,” she added.
— BERNAMA
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March 13, 2026
War-driven energy rally may deepen rare soybean oil discount to palm oil
South American soybean oil prices are trading below Asian palm oil values in a rare market inversion that traders say could deepen if the war-driven surge in energy prices continues to lift vegetable oil markets.
Platts, part of S&P Global Energy, assessed Argentine soybean oil FOB Up River for April loading at $1,132.30/metric ton on March 11, while Brazilian soybean oil FOB Paranaguá for April loading was assessed at $1,138.91/mt.
These levels place South American soybean oil below Asian palm oil benchmarks after palm oil prices strengthened alongside the broader energy-led rally in vegetable oils.
By comparison, Platts assessed crude palm oil FOB Indonesia for April loading at $1,182.5/mt on March 11, while CPO CFR West Coast India for April shipment was assessed at $1,212.5/mt.
The divergence between palm oil and soybean oil prices is illustrated in the chart below.
Energy markets driving vegetable oil prices
Rising crude oil prices have been a key driver of recent strength across vegetable oil markets, improving biodiesel blending economics and strengthening demand expectations for lipid-based feedstocks.
Palm oil prices have also received additional support from biofuel policy developments in Southeast Asia. Indonesia, the world's largest palm oil producer, is accelerating road testing for a B50 biodiesel blend.
A move from B40 to B50 could increase Indonesian palm oil consumption by roughly 4 million-5 million mt annually, potentially tightening export availability and providing additional support to global palm oil prices.
The broader linkage between energy markets and vegetable oils is illustrated in the chart below, which compares cumulative gains in ICE WTI crude oil futures, CBOT soybean oil futures and Bursa Malaysia third-month crude palm oil futures over the past year.
SP Global
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West Asia, Black Sea tensions create supply concerns for Indian edible oil market: SEA
Disruption in sunflower oil shipments from Russia and higher freight costs for palm oil have pushed up cooking oil prices
Recent conflicts, particularly in West Asia and ongoing tensions affecting the Black Sea, have created significant volatility and supply concerns for India’s edible oil market, according to BV Mehta, Executive Director of the Solvent Extractors’ Association of India (SEA).
He said the risks of disrupted sunflower oil shipments from Russia and East Europe, and higher freight costs for palm oil have caused price hikes in commodities such as sunflower oil, forcing traders and consumers to monitoring the situation to navigate the supply chain risks. The Hindu Businessline
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As Oil Prices Climb, Indonesia Reopens Debate Over B50 Biodiesel Mandate
The proposal to introduce a B50 blend—diesel made with 50% palm oil biodiesel—had been shelved in January because of technical and financing concerns. But the plan is back under discussion, Reuters reported, citing comments made March 9 by Deputy Energy Minister Yuliot Tanjung.
The renewed interest comes as crude oil prices have surged following Israeli-U.S. strikes on Iran on February 28, pushing the price of a barrel toward $100.
For Indonesia, the world’s fourth-most populous country, the spike is significant. Since 2008, the government has rolled out an ambitious biofuel blending program designed to reduce dependence on imported fossil fuels. The current mandate requires a B40 blend, meaning diesel contains 40% palm oil biodiesel.
The country still relies heavily on imported fuel. According to Indonesia’s national statistics agency (BPS), the country imported 37.75 million tons of petroleum products in 2025, worth $23.46 billion—nearly 10% of its total goods imports that year.
“B50 could be implemented in the second half of the year, or possibly sooner,” Tanjung said. “But for now, the steering committee’s decision to keep B40 in place until the end of 2026 remains valid.”
Officials are monitoring oil prices closely before making a final decision.
A policy that moves global markets
Even without a formal decision, Indonesia’s biodiesel policy is closely watched by commodity markets. As the world’s largest producer of palm oil, the country plays a central role in global supply dynamics.
Jakarta’s biofuel mandate has become one of the main sources of volatility in vegetable oil markets. Government measures such as export levies and the Domestic Market Obligation (DMO)—which requires exporters to supply a share of their output locally before shipping abroad—already shape global supply flows.
Each time Indonesia raises the biodiesel blending requirement, a larger portion of the country’s palm oil output is absorbed by domestic fuel production. That reduces the amount available for export and tightens supply on international markets.
The result is often higher prices for vegetable oils worldwide, affecting food manufacturers as well as developing countries that depend on imports.
Prices have already started reacting. With tensions rising in the Middle East and oil prices climbing, palm oil has become more attractive as a biofuel feedstock compared with conventional diesel.
On March 9, benchmark palm oil futures for May delivery on the Bursa Malaysia Derivatives Exchange jumped 9% at the open to 4,774 ringgit ($1,215) per ton—the largest single-day gain in three years. Ecofin Agency
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B50 Challenge: Securing Energy Resilience and Export Need
The Indonesian government has designed the policy of biodiesel 50 percent (B50) as an energy program to increase the use of biofuel for blending with diesel fuel. Under the scheme, the blending will consist of 50 percent diesel fuel and the other 50 percent Fatty Acid Methyl Ester (FAME) which is processed from Crude Palm Oil (CPO). The implementation of the energy program is aimed to strengthen Indonesia’s national energy resilience and reduce it reliance on imported diesel fuel.
Stagnant Production of CPO
Over the past five years, crude palm oil (CPO) production in Indonesia has been relatively stagnant, hovering between 48 to 51 million tons per year. Meanwhile, domestic CPO consumption has continued to increase, particularly since the implementation of the mandatory biodiesel policy.
By 2023, CPO consumption for biodiesel had exceeded consumption for foods. When the B40 program was implemented, CPO demand for biodiesel was recorded at over 12 million tons per year.
If the B50 program is implemented, CPO demand for biodiesel is estimated to increase to around 16 million tons per year. Such condition is potential to reduce Indonesia’s CPO exports, as a larger volume is allocated for domestic energy needs.
Impact to exports and export levy
Mukti Sardjono, Executive Director of the Indonesian Palm Oil Association (GAPKI), has stated that if CPO production remains stagnant, a decline in exports will be an unavoidable consequence.
The decline in exports also has the potential to affect the state revenue from the export levy. The palm oil fund from the export levy is currently used to finance the subsidy of biodiesel program.
According to Mukti, the main challenge in implementing the B50 program is for the government to strike a balance between energy resilience and export performance.
Oil Palm Moratorium Challenges
One of the main obstacles to increasing palm oil production is the moratorium on new oil palm plantations. This policy limits the expansion of oil palm plantations to preserve the environment and reduce the risk of deforestation.
As a solution, the government has been implementing the program of replanting smallholders’ palm plantations since 2015–2016, targeting approximately 180,000 hectares per year. This program aims to increase the productivity of existing oil palm plantations without the need to clear new land.
GAPKI also proposed that the government consider to develop specially dedicated oil palm plantations managed by state-owned plantation enterprises to fulfill the raw material needs for the B50 program. Such approach is expected to be able to fulfill the demand of CPO for foods, energy and exports.
The role of smallholders’ oil palm plantations
The National Energy Council (DEN) said that increasing the productivity of smallholders’ plantations is the key factor in supporting the biodiesel program. Currently, approximately 40% of the total oil palm plantations in Indonesia are owned by smallholders.
However, the productivity of smallholders’ plantations remains relatively low compared to that of large companies’ plantations. Therefore, improving cultivation technology, replanting, and providing financial support are crucial factors in increasing production.
If the productivity of smallholders’ plantations can be significantly increased, their contribution to the national CPO supply will also increase.
Biofuel industry readiness and energy infrastructure
In addition to the availability of CPO as the raw material, the success of the B50 program also depends on the readiness of the biofuel industry and the automotive sector. Coordination between the Indonesian Biofuel Producers Association (Aprobi) and the Association of Indonesian Automotive Industries (Gaikindo) is necessary to ensure the quality of the biodiesel used is compatible with motor vehicles.
The readiness of energy infrastructure is also a crucial factor. One project expected to support B50 implementation is Pertamina’s Refinery Development Master Plan (RDMP) in East Kalimantan, which will strengthen the blending capacity of diesel fuel with biodiesel.
Environment consideration and land governance
The Deputy Speaker of the People’s Consultative Assembly (MPR), Eddy Soeparno said efforts of increasing palm oil production should be cautiously pursued. Pursuing it through land expansion, it will risk causing conflicts of land use, potential deforestation, and a decline in forest area function.
Indonesia currently has approximately 124 million hectares of forest area, with an estimated 86 million hectares remaining as natural forest. Therefore, an intensification and productivity improvement approach is considered more appropriate than new land expansion.
The B50 program is a strategic step for Indonesia to strengthen energy resilience and reduce dependence on fossil fuels. However, the implementation of this policy faces several challenges, ranging from the availability of CPO as raw material, the productivity of smallholders’ oil palm plantations, the readiness of the biofuel industry, and environmental considerations.
Increasing the productivity of existing oil palm plantations, especially those owned by smallholders, is one of the main solutions to meet domestic energy needs without sacrificing exports or environmental sustainability. GAPKI
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Thai Palm Oil Distributor Smothong Reaps Gain as Government Biodiesel Push Raises Demand
On Thursday, the share price of Smothong Group Public Company Limited (SET: SMO) at the morning session closed at THB 4.62, a THB 0.48 or 11.59% increase with a total trading value of THB 113.48 million. Kittipong Puangmala, CEO of SMO, revealed during a recent Opportunity Day event that Middle East Kaohoon
War-driven energy rally may deepen rare soybean oil discount to palm oil
South American soybean oil prices are trading below Asian palm oil values in a rare market inversion that traders say could deepen if the war-driven surge in energy prices continues to lift vegetable oil markets.
Platts, part of S&P Global Energy, assessed Argentine soybean oil FOB Up River for April loading at $1,132.30/metric ton on March 11, while Brazilian soybean oil FOB Paranaguá for April loading was assessed at $1,138.91/mt.
These levels place South American soybean oil below Asian palm oil benchmarks after palm oil prices strengthened alongside the broader energy-led rally in vegetable oils.
By comparison, Platts assessed crude palm oil FOB Indonesia for April loading at $1,182.5/mt on March 11, while CPO CFR West Coast India for April shipment was assessed at $1,212.5/mt.
The divergence between palm oil and soybean oil prices is illustrated in the chart below.
Energy markets driving vegetable oil prices
Rising crude oil prices have been a key driver of recent strength across vegetable oil markets, improving biodiesel blending economics and strengthening demand expectations for lipid-based feedstocks.
Palm oil prices have also received additional support from biofuel policy developments in Southeast Asia. Indonesia, the world's largest palm oil producer, is accelerating road testing for a B50 biodiesel blend.
A move from B40 to B50 could increase Indonesian palm oil consumption by roughly 4 million-5 million mt annually, potentially tightening export availability and providing additional support to global palm oil prices.
The broader linkage between energy markets and vegetable oils is illustrated in the chart below, which compares cumulative gains in ICE WTI crude oil futures, CBOT soybean oil futures and Bursa Malaysia third-month crude palm oil futures over the past year.
SP Global
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West Asia, Black Sea tensions create supply concerns for Indian edible oil market: SEA
Disruption in sunflower oil shipments from Russia and higher freight costs for palm oil have pushed up cooking oil prices
Recent conflicts, particularly in West Asia and ongoing tensions affecting the Black Sea, have created significant volatility and supply concerns for India’s edible oil market, according to BV Mehta, Executive Director of the Solvent Extractors’ Association of India (SEA).
He said the risks of disrupted sunflower oil shipments from Russia and East Europe, and higher freight costs for palm oil have caused price hikes in commodities such as sunflower oil, forcing traders and consumers to monitoring the situation to navigate the supply chain risks. The Hindu Businessline
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As Oil Prices Climb, Indonesia Reopens Debate Over B50 Biodiesel Mandate
- Indonesia is reconsidering a plan to raise its biodiesel blend to B50 as oil prices approach $100 a barrel.
- The move could cut fuel imports but tighten global palm oil supplies.
- Markets are watching closely, as Indonesia’s biodiesel policy often drives volatility in vegetable oil prices.
The proposal to introduce a B50 blend—diesel made with 50% palm oil biodiesel—had been shelved in January because of technical and financing concerns. But the plan is back under discussion, Reuters reported, citing comments made March 9 by Deputy Energy Minister Yuliot Tanjung.
The renewed interest comes as crude oil prices have surged following Israeli-U.S. strikes on Iran on February 28, pushing the price of a barrel toward $100.
For Indonesia, the world’s fourth-most populous country, the spike is significant. Since 2008, the government has rolled out an ambitious biofuel blending program designed to reduce dependence on imported fossil fuels. The current mandate requires a B40 blend, meaning diesel contains 40% palm oil biodiesel.
The country still relies heavily on imported fuel. According to Indonesia’s national statistics agency (BPS), the country imported 37.75 million tons of petroleum products in 2025, worth $23.46 billion—nearly 10% of its total goods imports that year.
“B50 could be implemented in the second half of the year, or possibly sooner,” Tanjung said. “But for now, the steering committee’s decision to keep B40 in place until the end of 2026 remains valid.”
Officials are monitoring oil prices closely before making a final decision.
A policy that moves global markets
Even without a formal decision, Indonesia’s biodiesel policy is closely watched by commodity markets. As the world’s largest producer of palm oil, the country plays a central role in global supply dynamics.
Jakarta’s biofuel mandate has become one of the main sources of volatility in vegetable oil markets. Government measures such as export levies and the Domestic Market Obligation (DMO)—which requires exporters to supply a share of their output locally before shipping abroad—already shape global supply flows.
Each time Indonesia raises the biodiesel blending requirement, a larger portion of the country’s palm oil output is absorbed by domestic fuel production. That reduces the amount available for export and tightens supply on international markets.
The result is often higher prices for vegetable oils worldwide, affecting food manufacturers as well as developing countries that depend on imports.
Prices have already started reacting. With tensions rising in the Middle East and oil prices climbing, palm oil has become more attractive as a biofuel feedstock compared with conventional diesel.
On March 9, benchmark palm oil futures for May delivery on the Bursa Malaysia Derivatives Exchange jumped 9% at the open to 4,774 ringgit ($1,215) per ton—the largest single-day gain in three years. Ecofin Agency
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B50 Challenge: Securing Energy Resilience and Export Need
The Indonesian government has designed the policy of biodiesel 50 percent (B50) as an energy program to increase the use of biofuel for blending with diesel fuel. Under the scheme, the blending will consist of 50 percent diesel fuel and the other 50 percent Fatty Acid Methyl Ester (FAME) which is processed from Crude Palm Oil (CPO). The implementation of the energy program is aimed to strengthen Indonesia’s national energy resilience and reduce it reliance on imported diesel fuel.
Stagnant Production of CPO
Over the past five years, crude palm oil (CPO) production in Indonesia has been relatively stagnant, hovering between 48 to 51 million tons per year. Meanwhile, domestic CPO consumption has continued to increase, particularly since the implementation of the mandatory biodiesel policy.
By 2023, CPO consumption for biodiesel had exceeded consumption for foods. When the B40 program was implemented, CPO demand for biodiesel was recorded at over 12 million tons per year.
If the B50 program is implemented, CPO demand for biodiesel is estimated to increase to around 16 million tons per year. Such condition is potential to reduce Indonesia’s CPO exports, as a larger volume is allocated for domestic energy needs.
Impact to exports and export levy
Mukti Sardjono, Executive Director of the Indonesian Palm Oil Association (GAPKI), has stated that if CPO production remains stagnant, a decline in exports will be an unavoidable consequence.
The decline in exports also has the potential to affect the state revenue from the export levy. The palm oil fund from the export levy is currently used to finance the subsidy of biodiesel program.
According to Mukti, the main challenge in implementing the B50 program is for the government to strike a balance between energy resilience and export performance.
Oil Palm Moratorium Challenges
One of the main obstacles to increasing palm oil production is the moratorium on new oil palm plantations. This policy limits the expansion of oil palm plantations to preserve the environment and reduce the risk of deforestation.
As a solution, the government has been implementing the program of replanting smallholders’ palm plantations since 2015–2016, targeting approximately 180,000 hectares per year. This program aims to increase the productivity of existing oil palm plantations without the need to clear new land.
GAPKI also proposed that the government consider to develop specially dedicated oil palm plantations managed by state-owned plantation enterprises to fulfill the raw material needs for the B50 program. Such approach is expected to be able to fulfill the demand of CPO for foods, energy and exports.
The role of smallholders’ oil palm plantations
The National Energy Council (DEN) said that increasing the productivity of smallholders’ plantations is the key factor in supporting the biodiesel program. Currently, approximately 40% of the total oil palm plantations in Indonesia are owned by smallholders.
However, the productivity of smallholders’ plantations remains relatively low compared to that of large companies’ plantations. Therefore, improving cultivation technology, replanting, and providing financial support are crucial factors in increasing production.
If the productivity of smallholders’ plantations can be significantly increased, their contribution to the national CPO supply will also increase.
Biofuel industry readiness and energy infrastructure
In addition to the availability of CPO as the raw material, the success of the B50 program also depends on the readiness of the biofuel industry and the automotive sector. Coordination between the Indonesian Biofuel Producers Association (Aprobi) and the Association of Indonesian Automotive Industries (Gaikindo) is necessary to ensure the quality of the biodiesel used is compatible with motor vehicles.
The readiness of energy infrastructure is also a crucial factor. One project expected to support B50 implementation is Pertamina’s Refinery Development Master Plan (RDMP) in East Kalimantan, which will strengthen the blending capacity of diesel fuel with biodiesel.
Environment consideration and land governance
The Deputy Speaker of the People’s Consultative Assembly (MPR), Eddy Soeparno said efforts of increasing palm oil production should be cautiously pursued. Pursuing it through land expansion, it will risk causing conflicts of land use, potential deforestation, and a decline in forest area function.
Indonesia currently has approximately 124 million hectares of forest area, with an estimated 86 million hectares remaining as natural forest. Therefore, an intensification and productivity improvement approach is considered more appropriate than new land expansion.
The B50 program is a strategic step for Indonesia to strengthen energy resilience and reduce dependence on fossil fuels. However, the implementation of this policy faces several challenges, ranging from the availability of CPO as raw material, the productivity of smallholders’ oil palm plantations, the readiness of the biofuel industry, and environmental considerations.
Increasing the productivity of existing oil palm plantations, especially those owned by smallholders, is one of the main solutions to meet domestic energy needs without sacrificing exports or environmental sustainability. GAPKI
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Thai Palm Oil Distributor Smothong Reaps Gain as Government Biodiesel Push Raises Demand
On Thursday, the share price of Smothong Group Public Company Limited (SET: SMO) at the morning session closed at THB 4.62, a THB 0.48 or 11.59% increase with a total trading value of THB 113.48 million. Kittipong Puangmala, CEO of SMO, revealed during a recent Opportunity Day event that Middle East Kaohoon
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March 12, 2026
Iran War Causes Indonesian Palm Oil Export Costs to Soar 50%
Jakarta. The Iran war has caused a surge in logistics costs for Indonesian palm oil exports, according to an industry association, although the current shipments mainly come from orders made prior to the conflict.
Almost two weeks have passed since the US-Israeli coordinated attack on Tehran at the end of February. Tensions in the region have choked off the Strait of Hormuz shipping route, hampering trade flows and leaving countless vessels stranded. The Indonesian Palm Oil Association (Gapki) told reporters on Wednesday that the war had not entirely stopped Jakarta from exporting the staple vegetable crop. But as tensions rise, supplying foreign markets has become more expensive.
“We are grateful that we are still exporting our palm oil amid the war. ... But transport and insurance costs have gone up 50%. This can trigger a downtick in demand,” Gapki chairman Eddy Martono said in Jakarta.
Seaborne Indonesian palm oil exports will have to search for alternative routes, hence longer voyages. The seismic shipping risks lead to higher insurance costs. Despite the higher bill, Eddy went on to say that countries “have no choice but to export”, citing that the crude palm oil is “a daily necessity”.
Gapki had previously reported that the Middle East had brought in around 1.8 million tons of Indonesian palm oil last year. The region’s top buyers were Saudi Arabia (651,000 tons), the United Arab Emirates (475,000 tons), and Oman (219,000 tons).
“It’s definitely hard to cross the Strait of Hormuz. [Palm oil] exports to the United Arab Emirates and Iran ground to a halt. We can still ship to Saudi Arabia, as well as key markets such as India and China,” Eddy said.
Local producers are mainly fulfilling existing orders, although some foreign markets are holding back on signing new contracts, according to Gapki.
“But the war has just begun. We still have to wait until the end of the month to find out how much the exports have dropped,” Eddy said.
Indonesia, the world’s largest palm oil producer, has been banking on this agricultural crop to maintain a positive trade balance for 69 months in a row since May 2020. Senior economic minister Airlangga Hartarto admitted that the fighting’s impact on exports would hinge on “how long the fighting would last”. Jakarta Globe
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Indonesia’s palm oil export demand cools as Middle East conflict lifts freight, insurance costs
A slower pace of shipments can result in a stock build-up in the South-east Asian nation: Indonesian Palm Oil Association
[JAKARTA] Export orders for new shipments of palm oil have moderated after the US-Israel war with Iran drove up logistics and insurance costs, the Indonesian Palm Oil Association (Gapki) said on Wednesday (Mar 11).
Indonesia is the world’s largest exporter of palm oil, which is used in food, cosmetics and cleaning products.
The oil accounts for more than half of global vegetable-oil shipments and is widely consumed in emerging markets such as India.
Gapki chairman Eddy Martono said shipping and insurance costs rose by 50 per cent after the war broke out, as the ships were forced to take a longer route – while insurance costs increased due to conflict-related risks.
“There has been a slight decrease in demand... because costs have increased. We are now fulfilling the contracts we have signed.” he told reporters.
Despite the ongoing exports, he said a slower pace of shipments could result in a stock build-up in Indonesia, which could put pressure on the prices of palm oil.
He added that Gapki had no estimates yet on the extent of the export decline, but some indications of a downturn were present. He added an estimate could be available at the end of March.
Indonesia shipped 1.8 million tonnes of palm oil to the Middle East in 2025, translating to about 5 per cent of the country’s palm oil exports, he said.
Meanwhile, the demand from top buyers India and China was also lacking, as the edible oil stocks in both markets appeared stable, he noted. Business Times
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India Palm Oil Imports Surge to Six-Month High
Kedia Advisory - India’s palm oil imports rose sharply in February, reaching a six-month high as competitive pricing encouraged refiners to increase purchases. A wider discount compared with competing edible oils prompted buyers to switch from sunflower oil to palm oil, supporting import volumes. Palm oil shipments climbed 11% month-on-month, while soyoil imports also registered moderate growth. In contrast, sunflower oil imports declined significantly due to weaker demand and supply concerns linked to geopolitical disruptions. Despite higher palm and soyoil purchases, India’s overall vegetable oil imports edged lower because of the sharp drop in sunflower oil inflows. Rising freight costs and geopolitical risks are also influencing buying strategies in the market.
Key Highlights
• India’s palm oil imports jumped 11% in February to a six-month high of 847,689 tonnes.
• Competitive pricing versus rival oils encouraged refiners to increase palm oil purchases.
• Soyoil imports rose 7%, while sunflower oil imports plunged nearly 45%.
• Total vegetable oil imports declined 2% to 1.32 million tonnes in February.
• Geopolitical tensions and higher freight costs are influencing India’s edible oil buying patterns.
India’s palm oil imports climbed to a six-month high in February as attractive pricing encouraged refiners to increase purchases of the tropical oil. Imports rose by 11% month-on-month to 847,689 tonnes, the highest level since August 2025, according to data released by the Solvent Extractors’ Association of India (SEA). The increase came after palm oil traded at a steep discount compared with competing edible oils, making it a preferred choice for domestic refiners. Investing
Iran War Causes Indonesian Palm Oil Export Costs to Soar 50%
Jakarta. The Iran war has caused a surge in logistics costs for Indonesian palm oil exports, according to an industry association, although the current shipments mainly come from orders made prior to the conflict.
Almost two weeks have passed since the US-Israeli coordinated attack on Tehran at the end of February. Tensions in the region have choked off the Strait of Hormuz shipping route, hampering trade flows and leaving countless vessels stranded. The Indonesian Palm Oil Association (Gapki) told reporters on Wednesday that the war had not entirely stopped Jakarta from exporting the staple vegetable crop. But as tensions rise, supplying foreign markets has become more expensive.
“We are grateful that we are still exporting our palm oil amid the war. ... But transport and insurance costs have gone up 50%. This can trigger a downtick in demand,” Gapki chairman Eddy Martono said in Jakarta.
Seaborne Indonesian palm oil exports will have to search for alternative routes, hence longer voyages. The seismic shipping risks lead to higher insurance costs. Despite the higher bill, Eddy went on to say that countries “have no choice but to export”, citing that the crude palm oil is “a daily necessity”.
Gapki had previously reported that the Middle East had brought in around 1.8 million tons of Indonesian palm oil last year. The region’s top buyers were Saudi Arabia (651,000 tons), the United Arab Emirates (475,000 tons), and Oman (219,000 tons).
“It’s definitely hard to cross the Strait of Hormuz. [Palm oil] exports to the United Arab Emirates and Iran ground to a halt. We can still ship to Saudi Arabia, as well as key markets such as India and China,” Eddy said.
Local producers are mainly fulfilling existing orders, although some foreign markets are holding back on signing new contracts, according to Gapki.
“But the war has just begun. We still have to wait until the end of the month to find out how much the exports have dropped,” Eddy said.
Indonesia, the world’s largest palm oil producer, has been banking on this agricultural crop to maintain a positive trade balance for 69 months in a row since May 2020. Senior economic minister Airlangga Hartarto admitted that the fighting’s impact on exports would hinge on “how long the fighting would last”. Jakarta Globe
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Indonesia’s palm oil export demand cools as Middle East conflict lifts freight, insurance costs
A slower pace of shipments can result in a stock build-up in the South-east Asian nation: Indonesian Palm Oil Association
[JAKARTA] Export orders for new shipments of palm oil have moderated after the US-Israel war with Iran drove up logistics and insurance costs, the Indonesian Palm Oil Association (Gapki) said on Wednesday (Mar 11).
Indonesia is the world’s largest exporter of palm oil, which is used in food, cosmetics and cleaning products.
The oil accounts for more than half of global vegetable-oil shipments and is widely consumed in emerging markets such as India.
Gapki chairman Eddy Martono said shipping and insurance costs rose by 50 per cent after the war broke out, as the ships were forced to take a longer route – while insurance costs increased due to conflict-related risks.
“There has been a slight decrease in demand... because costs have increased. We are now fulfilling the contracts we have signed.” he told reporters.
Despite the ongoing exports, he said a slower pace of shipments could result in a stock build-up in Indonesia, which could put pressure on the prices of palm oil.
He added that Gapki had no estimates yet on the extent of the export decline, but some indications of a downturn were present. He added an estimate could be available at the end of March.
Indonesia shipped 1.8 million tonnes of palm oil to the Middle East in 2025, translating to about 5 per cent of the country’s palm oil exports, he said.
Meanwhile, the demand from top buyers India and China was also lacking, as the edible oil stocks in both markets appeared stable, he noted. Business Times
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India Palm Oil Imports Surge to Six-Month High
Kedia Advisory - India’s palm oil imports rose sharply in February, reaching a six-month high as competitive pricing encouraged refiners to increase purchases. A wider discount compared with competing edible oils prompted buyers to switch from sunflower oil to palm oil, supporting import volumes. Palm oil shipments climbed 11% month-on-month, while soyoil imports also registered moderate growth. In contrast, sunflower oil imports declined significantly due to weaker demand and supply concerns linked to geopolitical disruptions. Despite higher palm and soyoil purchases, India’s overall vegetable oil imports edged lower because of the sharp drop in sunflower oil inflows. Rising freight costs and geopolitical risks are also influencing buying strategies in the market.
Key Highlights
• India’s palm oil imports jumped 11% in February to a six-month high of 847,689 tonnes.
• Competitive pricing versus rival oils encouraged refiners to increase palm oil purchases.
• Soyoil imports rose 7%, while sunflower oil imports plunged nearly 45%.
• Total vegetable oil imports declined 2% to 1.32 million tonnes in February.
• Geopolitical tensions and higher freight costs are influencing India’s edible oil buying patterns.
India’s palm oil imports climbed to a six-month high in February as attractive pricing encouraged refiners to increase purchases of the tropical oil. Imports rose by 11% month-on-month to 847,689 tonnes, the highest level since August 2025, according to data released by the Solvent Extractors’ Association of India (SEA). The increase came after palm oil traded at a steep discount compared with competing edible oils, making it a preferred choice for domestic refiners. Investing
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March 11, 2026
Indonesia seeks WTO approval to suspend EU trade concessions in palm oil dispute
Indonesia has requested authorisation from the World Trade Organization (WTO) to suspend trade concessions towards the European Union (EU) after the bloc failed to comply with a WTO ruling related to restrictions on palm oil-based biofuels, the Jakarta Globe wrote.
Trade Minister Budi Santoso said the request had been submitted to the WTO’s Dispute Settlement Body following the EU’s failure to meet the 24 February deadline to adjust its policies in accordance with the ruling in the DS593: EU–Palm Oil dispute, the 7 March report said.
“The suspension of concessions will focus on the goods sector but remains open to other sectors,” Santoso said in a statement in Jakarta on 7 March.
The move by Indonesia – the world’s largest producer and exporter of palm oil – would allow it to seek approval to impose retaliatory measures. If authorised by the WTO, Indonesia could legally take trade action against the EU, increasing pressure on the bloc to revise its palm oil restrictions, the Jakarta Globe wrote.
The dispute stemmed from the EU’s Renewable Energy Directive II (RED II), which classified palm oil as a ‘high-risk’ biofuel feedstock for indirect land use change (ILUC), which must be phased out from counting towards EU renewable energy targets in transport by 2030.
In January 2025, a WTO panel had found that elements of the EU’s policy discriminated against palm oil-based biofuels. The ruling said the EU’s delegated regulation under RED II was inconsistent with international trade rules as it singled out palm oil as high-risk, while allowing competing biofuels to continue benefiting from the bloc’s renewable energy policies.
The panel had also determined that certain national measures, including tax incentives in France that favoured biofuels derived from rapeseed and soyabeans, rather than palm oil, were discriminatory, the report said.
However, the WTO panel also acknowledged that the EU had the right to pursue environmental and climate objectives through renewable energy policies.
The dispute came as both sides moved towards finalising the Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA), the report said.
In September, the two nations announced the “substantive conclusion” of negotiations after nearly a decade of talks, which had faced several setbacks.
The agreement, expected to eliminate tariffs on many products, was now undergoing legal review, and Indonesia aimed to sign the deal by May, the report said.
“We will carefully calculate the amount of losses and ensure the case is handled effectively while continuing to maintain bilateral relations with the European Union,” Santoso said.
According to the minister, the step is consistent with Article 22.2 of the WTO’s Understanding on Rules and Procedures Governing the Settlement of Disputes, which allowed the winning party in a dispute to request permission to suspend trade concessions if the losing party failed to implement the ruling.
Indonesia claimed that the EU had not fully adjusted its palm oil-related policies or offered balanced compensation for the economic impact caused by the restrictions, the Jakarta Globe wrote.
“Indonesia can request authorisation from the WTO’s Dispute Settlement Body to suspend concessions in order to protect its rights in the future if the EU fails to comply with the panel’s ruling,” Santoso added.
According to officials, the financial losses to Indonesian producers were significant due to reduced export opportunities caused by the EU’s policies. OFI Magazine
--------
Iran War's Energy Shock Is Spreading to Crop-Based Fuels
Another corner of the energy market is being threatened by the war in Iran, as prices for methanol — essential to biofuel production — surge in Southeast Asia.
(Bloomberg) — Another corner of the energy market is being threatened by the war in Iran, as prices for methanol — essential to biofuel production — surge in Southeast Asia.
The spike risks crimping output of crop-based fuels and adding to the region’s energy crunch. Indonesia is the world’s biggest producer of palm oil, a large portion of which is converted into biodiesel to meet the country’s steep blending targets. Methanol is key to that process, helping to break down the crop and convert it into fuel.
However, prices for the alcohol have climbed as ship traffic grinds to a near halt amid the US-Israeli attacks in Iran, crimping vital commodity shipments — much of which often head to Asia. QatarEnergy last week said it would halt production of downstream products including methanol after the closure of its massive liquefied natural gas plant.
Methanol prices for delivery to Southeast Asia jumped 24% last week to $402 a ton, the biggest gain since 2007, data from analytics firm Polymer Update shows. If the disruption continues, inventories in Indonesia could run low and biofuel production may fall short of the government’s monthly quotas as soon as April, according to traders familiar with the matter who asked not to be identified.
The energy and mineral resources ministry didn’t immediately respond to a request for comment.
That threatens further tightening energy supplies in the region, which is highly dependent on imports and has been hit by the sharp slowdowns in oil and gas shipments. Biofuels have historically been seen as a way to combat that reliance and produce more energy at home. Vegetable oil prices have climbed since the war’s outbreak, with palm oil briefly surging as much as 10% on Monday. Bloomberg/ Financial Post
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Goldman sees limited palm oil impact from crude spike for consumer stocks
Investing.com - Goldman Sachs said investor concerns linking Brent crude price spikes to palm oil price increases are likely overstated for Indian consumer companies.
Brent crude’s spot price currently stands approximately 40% above its year-to-date fiscal 2026 average, significantly impacting input costs for Indian consumer companies. The United States Brent Oil Fund (BNO), which tracks Brent crude, has surged 51% year-to-date and posted a 49% return over the past year. InvestingPro Tips indicate the commodity is in overbought territory, with strong momentum across multiple timeframes—though investors should note there are 6 additional ProTips available for deeper analysis. Pidilite and Asian Paints (NS:ASPN) face the most exposure, followed by Hindustan Unilever (NS:HUVR), according to the firm.
Goldman Sachs said historical crude surges, such as in 2022, prompted Hindustan Unilever’s home care division, Asian Paints, and Pidilite to implement substantial double-digit price hikes. This accelerated revenue growth, with HUL home care achieving 24-32% growth and Asian Paints and Pidilite posting 13-21% realization growth.
The firm said these price increases are manageable in detergents, paints, and adhesives due to low price elasticity of demand. Large companies gain market share during commodity inflation by utilizing forward covers and robust balance sheets, Goldman Sachs added.
The firm noted a low 23% historical correlation between Brent crude and palm oil prices, a key input for Godrej Consumer Products (NS:GOCP) and Britannia (NS:BRIT). The 2022 spike was an exception, driven by Ukraine’s sunflower oil supply disruptions affecting palm oil and Russia’s crude production impacting oil prices, Goldman Sachs said. Investing
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Rising costs, demand risks loom over Malaysia's palm oil industry
KUALA LUMPUR: The ongoing conflict in the Middle East is casting a shadow over Malaysia's plantation sector, with analysts warning of rising costs and potential demand disruptions despite a temporary boost in crude palm oil (CPO) prices.
RHB Research analyst Hoe Lee Leng said the geopolitical tensions have created a "multi-faceted impact" on the industry.
While higher crude oil prices have pushed CPO prices up 11.6 per cent since the conflict began, narrowing the palm oil-gasoil (POGO) spread and potentially supporting Indonesia's B50 biodiesel mandate, the negative ramifications are more concerning.
-Advertisement-
Hoe said shipping route closures near the conflict zone threaten demand from countries such as Pakistan, Egypt, Saudi Arabia, Turkey, the United Arab Emirates and Iran, potentially affecting up to 15 per cent of global palm oil consumption.
She added that the war is disrupting supply chains, with fertiliser and logistics costs expected to rise sharply.
The Strait of Hormuz, a critical chokepoint for roughly one-third of the world's fertiliser trade, is at risk, potentially impacting global edible oil production.
"As for logistics costs, we understand global freight costs have risen to all-time highs, while insurance companies are preparing for the possible activation of 'notice of cancellation' provisions in war-risk policies and for sharp spikes in war-risk premiums.
"All this could add to higher overall costs for palm oil – fertiliser costs currently comprise about 20-30 per cent of total palm oil production costs, while transport and logistic costs comprise around 5-10 per cent," Hoe said.
RHB Research maintained a "Neutral" stance on the plantation sector, noting that if the conflict stabilises or ends, CPO prices could fall rapidly, similar to the 2022 pattern following the Russia-Ukraine war, when prices initially spiked before dropping 59 per cent from their peak.
CIMB Securities also maintained a "Neutral" sector rating, citing IOI Corp Bhd as a preferred pick with a target price of RM4.51 for its low gearing and potential exposure to mergers and acquisitions activity.
The firm's analyst Ivy Ng Lee Fang said that while CPO prices have risen 9.5 per cent since the onset of the conflict to RM4,428 per tonne, the benefit to planters could be offset by surging fertiliser costs and a potential slowdown in global demand if energy prices remain elevated.
Malaysian palm oil stocks are projected to fall eight per cent month-on-month to 2.48 million tonnes in March 2026, while production is expected to increase 12 per cent to 1.44 million tonnes.
"As the current CPO price is above our 2026 forecast of RM4,000 a tonne, we see upside risk to our projection should the conflict and the closure of the Strait of Hormuz persist.
"However, while higher CPO prices are positive for planters, the benefit may be partly offset by rising fertiliser costs linked to higher energy prices. "Prolonged elevated energy prices could also weaken global economic growth, potentially dampening palm oil demand," she added. NST
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Palm oil is more sustainable and uses least land says GAPKI
The issue of environmental sustainability has often emerged as the central point in public debate about global consumption of vegetable oils. Many people see the palm oil as less environmentally friendly compared to other vegetable oils.
But actually, scientific data shows that palm oil is relatively more sustainable than other vegetable oils due to its high efficiency in land use, low impact to biodiversity loss, and it causes less emissions and pollutions.¹
Palm oil dominance in global consumption
Palm oil is one of main vegetable oils in the world. According to the long-term projection of the FAO report, palm oil has seen a steadily rising share of production due to its production efficiency.²
Currently, palm oil meets approximately 40% of the world’s vegetable oil needs but only utilizes a small fraction of the global total areas for cultivation of vegetable oil crops.
Why oil palm more efficient in land use
One of the main advantages of palm oil is its extremely high productivity per hectare. Based on global crop yield comparisons, to produce 1.0 ton of oil, palm oil requires an average of only 0.3 hectares (ha) of land.³
In comparison, other vegetable oil crops require much larger areas:
With the efficiency, the use of palm oil indirectly helps reduce the global deforestation. If palm oil is annihilated from the global market and all global oil demands are entirely fulfilled with other vegetable oils, the conversion of forest areas would increase many times higher due to the low productivity of non-palm oil crops.¹
Environmental impacts: Biodiversity and carbon emissions
Based on the Species Richness Loss (SRL) indicator, or the rate of species richness loss per liter of oil, palm oil production has the lowest impact compared to rapeseed, soybean, sunflower, and peanut oils.⁴
The energy and input efficiency of oil palm plantation systems results in a competitive carbon footprint. Research shows that carbon emissions per megagram (Mg) of palm oil are lower than the average production of other vegetable oils due to the high output per unit area.⁵
FAO Data: Lower pollution footprint
The production process of palm oil has proven to only result in much lower level of pollutant residues from fertilizers and pesticides per ton of product. Based on calculations from global agrochemical usage data (FAOSTAT), the ratio of pollutants to produce 1.0 ton of oil is as follows:⁶ GAPKI
--------
From Cameroon to Sierra Leone: Abuses That Forced Norway to Divest
Norway’s sovereign wealth fund, the Government Pension Fund Global (GPFG), excluded Bolloré SE and Compagnie de l’Odet SE over serious human rights violations at Socfin plantations from Cameroon to Sierra Leone. Finalized on February 26, 2026, this state policy shift by the world’s largest single investor—managing $1.68 trillion to $2.1 trillion USD—culminated in selling a $91 million stake after failed engagement. It spotlights systematic abuses long documented across Africa and Asia, forcing a reevaluation of ethical investing norms.
Background on the Divestment Decision
The Council on Ethics recommended exclusion on June 25–26, 2024, under section 4(a) of GPFG’s ethical guidelines, citing an “unacceptable risk” of contribution to “serious and systematic human rights abuses” at oil palm and rubber plantations. Norges Bank Investment Management placed both firms on its public list after dialogues proved inadequate, marking a definitive state policy pivot from observation to divestment. This built on 2023 Swiss blacklisting and exclusions by 22 institutions, amplifying pressure on global finance.
Socfin’s 370,000-hectare operations span 10 countries, including Cameroon’s Socapalm, Liberia, Sierra Leone, Indonesia, and Cambodia, where land dispossession and pollution have eroded livelihoods. The decision underscores Norway’s state policy commitment to human rights, rejecting passive investment defenses amid evident corporate influence.
Ownership Chain and Corporate Influence
Compagnie de l’Odet SE holds 69.19% of Bolloré SE, which owns 39.75% of Socfin and 34.4% indirectly in Socfinaf, Socapalm’s controller. Bolloré executives’ board seats since 1990 on Socfin and 1993 on Socfinaf enabled policy oversight, yet “neither Cie de l’Odet nor Bolloré seem[ed] to acknowledge the risk of contributing to serious norm violations”. This chain exposed the fund to complicity in human rights failures, prompting Norway’s state policy enforcement through exclusion.
Founded in 1909, Socfin’s model persists despite scrutiny, with communities reporting unconsulted land grabs restricting farmland and forests while polluting water. The GPFG’s action signals that influence equates to responsibility, aligning state policy with global human rights standards.
Documented Human Rights Abuses
At Cameroon’s Socapalm sites, “poor working conditions, gender-based violence and harassment” prevail, alongside unfair recruitment and livelihood losses in Liberia and Sierra Leone. A Socfin-commissioned 2024 Earthworm Foundation probe into 139 complaints found 59% partially or fully founded, 85% company-attributable, yet Socfin ended the partnership in November 2025 without resolution.
Southeast Asian cases mirror this: Indonesian laborers and Cambodia’s Bunong communities faced land grabs, harassment, and violence, with one advocate noting “Norway’s decision showed that someone was listening to affected workers and communities”. These patterns evoke a “colonial manner” of operation, as investigations revealed restrictions on forests, sexual violence against women, and food insecurity from environmental harm. Norway’s divestment crystallized these human rights breaches as intolerable under its state policy framework.
Financial and Reputational Ramifications
Excluding Bolloré sends ripples, as GPFG benchmarks ESG practices worldwide, pressuring holdouts in palm oil and rubber chains. The $91 million stake sale by late 2025 demonstrates concrete impact, potentially cascading divestments amid Socfin’s vast footprint. Critics view it as a test for whether finance confronts land-grabbing or enables impunity through inaction.
This state policy move validates dismissed voices, from Socapalm workers to Sierra Leone forest dwellers, challenging colonial legacies in supply chains. With parallels to other GPFG exclusions like Adani Green Energy, it broadens ethical scrutiny across sectors.
Broader Implications for Ethical Investing
Years of dialogue delayed action, exposing tensions: vast funds enforce human rights via state policy, but engagement faltered against entrenched power. The saga questions passive investing’s shield, as Bolloré’s long-term roles negated distance claims. Communities demand land restitution pre-reinvestment, framing divestment as...Impact
Indonesia seeks WTO approval to suspend EU trade concessions in palm oil dispute
Indonesia has requested authorisation from the World Trade Organization (WTO) to suspend trade concessions towards the European Union (EU) after the bloc failed to comply with a WTO ruling related to restrictions on palm oil-based biofuels, the Jakarta Globe wrote.
Trade Minister Budi Santoso said the request had been submitted to the WTO’s Dispute Settlement Body following the EU’s failure to meet the 24 February deadline to adjust its policies in accordance with the ruling in the DS593: EU–Palm Oil dispute, the 7 March report said.
“The suspension of concessions will focus on the goods sector but remains open to other sectors,” Santoso said in a statement in Jakarta on 7 March.
The move by Indonesia – the world’s largest producer and exporter of palm oil – would allow it to seek approval to impose retaliatory measures. If authorised by the WTO, Indonesia could legally take trade action against the EU, increasing pressure on the bloc to revise its palm oil restrictions, the Jakarta Globe wrote.
The dispute stemmed from the EU’s Renewable Energy Directive II (RED II), which classified palm oil as a ‘high-risk’ biofuel feedstock for indirect land use change (ILUC), which must be phased out from counting towards EU renewable energy targets in transport by 2030.
In January 2025, a WTO panel had found that elements of the EU’s policy discriminated against palm oil-based biofuels. The ruling said the EU’s delegated regulation under RED II was inconsistent with international trade rules as it singled out palm oil as high-risk, while allowing competing biofuels to continue benefiting from the bloc’s renewable energy policies.
The panel had also determined that certain national measures, including tax incentives in France that favoured biofuels derived from rapeseed and soyabeans, rather than palm oil, were discriminatory, the report said.
However, the WTO panel also acknowledged that the EU had the right to pursue environmental and climate objectives through renewable energy policies.
The dispute came as both sides moved towards finalising the Indonesia-EU Comprehensive Economic Partnership Agreement (CEPA), the report said.
In September, the two nations announced the “substantive conclusion” of negotiations after nearly a decade of talks, which had faced several setbacks.
The agreement, expected to eliminate tariffs on many products, was now undergoing legal review, and Indonesia aimed to sign the deal by May, the report said.
“We will carefully calculate the amount of losses and ensure the case is handled effectively while continuing to maintain bilateral relations with the European Union,” Santoso said.
According to the minister, the step is consistent with Article 22.2 of the WTO’s Understanding on Rules and Procedures Governing the Settlement of Disputes, which allowed the winning party in a dispute to request permission to suspend trade concessions if the losing party failed to implement the ruling.
Indonesia claimed that the EU had not fully adjusted its palm oil-related policies or offered balanced compensation for the economic impact caused by the restrictions, the Jakarta Globe wrote.
“Indonesia can request authorisation from the WTO’s Dispute Settlement Body to suspend concessions in order to protect its rights in the future if the EU fails to comply with the panel’s ruling,” Santoso added.
According to officials, the financial losses to Indonesian producers were significant due to reduced export opportunities caused by the EU’s policies. OFI Magazine
--------
Iran War's Energy Shock Is Spreading to Crop-Based Fuels
Another corner of the energy market is being threatened by the war in Iran, as prices for methanol — essential to biofuel production — surge in Southeast Asia.
(Bloomberg) — Another corner of the energy market is being threatened by the war in Iran, as prices for methanol — essential to biofuel production — surge in Southeast Asia.
The spike risks crimping output of crop-based fuels and adding to the region’s energy crunch. Indonesia is the world’s biggest producer of palm oil, a large portion of which is converted into biodiesel to meet the country’s steep blending targets. Methanol is key to that process, helping to break down the crop and convert it into fuel.
However, prices for the alcohol have climbed as ship traffic grinds to a near halt amid the US-Israeli attacks in Iran, crimping vital commodity shipments — much of which often head to Asia. QatarEnergy last week said it would halt production of downstream products including methanol after the closure of its massive liquefied natural gas plant.
Methanol prices for delivery to Southeast Asia jumped 24% last week to $402 a ton, the biggest gain since 2007, data from analytics firm Polymer Update shows. If the disruption continues, inventories in Indonesia could run low and biofuel production may fall short of the government’s monthly quotas as soon as April, according to traders familiar with the matter who asked not to be identified.
The energy and mineral resources ministry didn’t immediately respond to a request for comment.
That threatens further tightening energy supplies in the region, which is highly dependent on imports and has been hit by the sharp slowdowns in oil and gas shipments. Biofuels have historically been seen as a way to combat that reliance and produce more energy at home. Vegetable oil prices have climbed since the war’s outbreak, with palm oil briefly surging as much as 10% on Monday. Bloomberg/ Financial Post
--------
Goldman sees limited palm oil impact from crude spike for consumer stocks
Investing.com - Goldman Sachs said investor concerns linking Brent crude price spikes to palm oil price increases are likely overstated for Indian consumer companies.
Brent crude’s spot price currently stands approximately 40% above its year-to-date fiscal 2026 average, significantly impacting input costs for Indian consumer companies. The United States Brent Oil Fund (BNO), which tracks Brent crude, has surged 51% year-to-date and posted a 49% return over the past year. InvestingPro Tips indicate the commodity is in overbought territory, with strong momentum across multiple timeframes—though investors should note there are 6 additional ProTips available for deeper analysis. Pidilite and Asian Paints (NS:ASPN) face the most exposure, followed by Hindustan Unilever (NS:HUVR), according to the firm.
Goldman Sachs said historical crude surges, such as in 2022, prompted Hindustan Unilever’s home care division, Asian Paints, and Pidilite to implement substantial double-digit price hikes. This accelerated revenue growth, with HUL home care achieving 24-32% growth and Asian Paints and Pidilite posting 13-21% realization growth.
The firm said these price increases are manageable in detergents, paints, and adhesives due to low price elasticity of demand. Large companies gain market share during commodity inflation by utilizing forward covers and robust balance sheets, Goldman Sachs added.
The firm noted a low 23% historical correlation between Brent crude and palm oil prices, a key input for Godrej Consumer Products (NS:GOCP) and Britannia (NS:BRIT). The 2022 spike was an exception, driven by Ukraine’s sunflower oil supply disruptions affecting palm oil and Russia’s crude production impacting oil prices, Goldman Sachs said. Investing
--------
Rising costs, demand risks loom over Malaysia's palm oil industry
KUALA LUMPUR: The ongoing conflict in the Middle East is casting a shadow over Malaysia's plantation sector, with analysts warning of rising costs and potential demand disruptions despite a temporary boost in crude palm oil (CPO) prices.
RHB Research analyst Hoe Lee Leng said the geopolitical tensions have created a "multi-faceted impact" on the industry.
While higher crude oil prices have pushed CPO prices up 11.6 per cent since the conflict began, narrowing the palm oil-gasoil (POGO) spread and potentially supporting Indonesia's B50 biodiesel mandate, the negative ramifications are more concerning.
-Advertisement-
Hoe said shipping route closures near the conflict zone threaten demand from countries such as Pakistan, Egypt, Saudi Arabia, Turkey, the United Arab Emirates and Iran, potentially affecting up to 15 per cent of global palm oil consumption.
She added that the war is disrupting supply chains, with fertiliser and logistics costs expected to rise sharply.
The Strait of Hormuz, a critical chokepoint for roughly one-third of the world's fertiliser trade, is at risk, potentially impacting global edible oil production.
"As for logistics costs, we understand global freight costs have risen to all-time highs, while insurance companies are preparing for the possible activation of 'notice of cancellation' provisions in war-risk policies and for sharp spikes in war-risk premiums.
"All this could add to higher overall costs for palm oil – fertiliser costs currently comprise about 20-30 per cent of total palm oil production costs, while transport and logistic costs comprise around 5-10 per cent," Hoe said.
RHB Research maintained a "Neutral" stance on the plantation sector, noting that if the conflict stabilises or ends, CPO prices could fall rapidly, similar to the 2022 pattern following the Russia-Ukraine war, when prices initially spiked before dropping 59 per cent from their peak.
CIMB Securities also maintained a "Neutral" sector rating, citing IOI Corp Bhd as a preferred pick with a target price of RM4.51 for its low gearing and potential exposure to mergers and acquisitions activity.
The firm's analyst Ivy Ng Lee Fang said that while CPO prices have risen 9.5 per cent since the onset of the conflict to RM4,428 per tonne, the benefit to planters could be offset by surging fertiliser costs and a potential slowdown in global demand if energy prices remain elevated.
Malaysian palm oil stocks are projected to fall eight per cent month-on-month to 2.48 million tonnes in March 2026, while production is expected to increase 12 per cent to 1.44 million tonnes.
"As the current CPO price is above our 2026 forecast of RM4,000 a tonne, we see upside risk to our projection should the conflict and the closure of the Strait of Hormuz persist.
"However, while higher CPO prices are positive for planters, the benefit may be partly offset by rising fertiliser costs linked to higher energy prices. "Prolonged elevated energy prices could also weaken global economic growth, potentially dampening palm oil demand," she added. NST
--------
Palm oil is more sustainable and uses least land says GAPKI
The issue of environmental sustainability has often emerged as the central point in public debate about global consumption of vegetable oils. Many people see the palm oil as less environmentally friendly compared to other vegetable oils.
But actually, scientific data shows that palm oil is relatively more sustainable than other vegetable oils due to its high efficiency in land use, low impact to biodiversity loss, and it causes less emissions and pollutions.¹
Palm oil dominance in global consumption
Palm oil is one of main vegetable oils in the world. According to the long-term projection of the FAO report, palm oil has seen a steadily rising share of production due to its production efficiency.²
Currently, palm oil meets approximately 40% of the world’s vegetable oil needs but only utilizes a small fraction of the global total areas for cultivation of vegetable oil crops.
Why oil palm more efficient in land use
One of the main advantages of palm oil is its extremely high productivity per hectare. Based on global crop yield comparisons, to produce 1.0 ton of oil, palm oil requires an average of only 0.3 hectares (ha) of land.³
In comparison, other vegetable oil crops require much larger areas:
- Sunflower Oil: 1.3 ha
- Rapeseed Oil: 1.4 ha
- Soybean Oil: 2.1 ha
With the efficiency, the use of palm oil indirectly helps reduce the global deforestation. If palm oil is annihilated from the global market and all global oil demands are entirely fulfilled with other vegetable oils, the conversion of forest areas would increase many times higher due to the low productivity of non-palm oil crops.¹
Environmental impacts: Biodiversity and carbon emissions
Based on the Species Richness Loss (SRL) indicator, or the rate of species richness loss per liter of oil, palm oil production has the lowest impact compared to rapeseed, soybean, sunflower, and peanut oils.⁴
The energy and input efficiency of oil palm plantation systems results in a competitive carbon footprint. Research shows that carbon emissions per megagram (Mg) of palm oil are lower than the average production of other vegetable oils due to the high output per unit area.⁵
FAO Data: Lower pollution footprint
The production process of palm oil has proven to only result in much lower level of pollutant residues from fertilizers and pesticides per ton of product. Based on calculations from global agrochemical usage data (FAOSTAT), the ratio of pollutants to produce 1.0 ton of oil is as follows:⁶ GAPKI
--------
From Cameroon to Sierra Leone: Abuses That Forced Norway to Divest
Norway’s sovereign wealth fund, the Government Pension Fund Global (GPFG), excluded Bolloré SE and Compagnie de l’Odet SE over serious human rights violations at Socfin plantations from Cameroon to Sierra Leone. Finalized on February 26, 2026, this state policy shift by the world’s largest single investor—managing $1.68 trillion to $2.1 trillion USD—culminated in selling a $91 million stake after failed engagement. It spotlights systematic abuses long documented across Africa and Asia, forcing a reevaluation of ethical investing norms.
Background on the Divestment Decision
The Council on Ethics recommended exclusion on June 25–26, 2024, under section 4(a) of GPFG’s ethical guidelines, citing an “unacceptable risk” of contribution to “serious and systematic human rights abuses” at oil palm and rubber plantations. Norges Bank Investment Management placed both firms on its public list after dialogues proved inadequate, marking a definitive state policy pivot from observation to divestment. This built on 2023 Swiss blacklisting and exclusions by 22 institutions, amplifying pressure on global finance.
Socfin’s 370,000-hectare operations span 10 countries, including Cameroon’s Socapalm, Liberia, Sierra Leone, Indonesia, and Cambodia, where land dispossession and pollution have eroded livelihoods. The decision underscores Norway’s state policy commitment to human rights, rejecting passive investment defenses amid evident corporate influence.
Ownership Chain and Corporate Influence
Compagnie de l’Odet SE holds 69.19% of Bolloré SE, which owns 39.75% of Socfin and 34.4% indirectly in Socfinaf, Socapalm’s controller. Bolloré executives’ board seats since 1990 on Socfin and 1993 on Socfinaf enabled policy oversight, yet “neither Cie de l’Odet nor Bolloré seem[ed] to acknowledge the risk of contributing to serious norm violations”. This chain exposed the fund to complicity in human rights failures, prompting Norway’s state policy enforcement through exclusion.
Founded in 1909, Socfin’s model persists despite scrutiny, with communities reporting unconsulted land grabs restricting farmland and forests while polluting water. The GPFG’s action signals that influence equates to responsibility, aligning state policy with global human rights standards.
Documented Human Rights Abuses
At Cameroon’s Socapalm sites, “poor working conditions, gender-based violence and harassment” prevail, alongside unfair recruitment and livelihood losses in Liberia and Sierra Leone. A Socfin-commissioned 2024 Earthworm Foundation probe into 139 complaints found 59% partially or fully founded, 85% company-attributable, yet Socfin ended the partnership in November 2025 without resolution.
Southeast Asian cases mirror this: Indonesian laborers and Cambodia’s Bunong communities faced land grabs, harassment, and violence, with one advocate noting “Norway’s decision showed that someone was listening to affected workers and communities”. These patterns evoke a “colonial manner” of operation, as investigations revealed restrictions on forests, sexual violence against women, and food insecurity from environmental harm. Norway’s divestment crystallized these human rights breaches as intolerable under its state policy framework.
Financial and Reputational Ramifications
Excluding Bolloré sends ripples, as GPFG benchmarks ESG practices worldwide, pressuring holdouts in palm oil and rubber chains. The $91 million stake sale by late 2025 demonstrates concrete impact, potentially cascading divestments amid Socfin’s vast footprint. Critics view it as a test for whether finance confronts land-grabbing or enables impunity through inaction.
This state policy move validates dismissed voices, from Socapalm workers to Sierra Leone forest dwellers, challenging colonial legacies in supply chains. With parallels to other GPFG exclusions like Adani Green Energy, it broadens ethical scrutiny across sectors.
Broader Implications for Ethical Investing
Years of dialogue delayed action, exposing tensions: vast funds enforce human rights via state policy, but engagement faltered against entrenched power. The saga questions passive investing’s shield, as Bolloré’s long-term roles negated distance claims. Communities demand land restitution pre-reinvestment, framing divestment as...Impact
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March 10, 2026
Middle East conflict could spur palm oil demand from biodiesel sector
By Rajendra Jadhav and Ashley Tang
MUMBAI/KUALA LUMPUR, March 9 (Reuters) - Rising crude oil prices and higher freight rates driven by the Middle East conflict could boost demand for palm oil from the biodiesel sector and for food use, as Asian buyers seek prompt shipments, industry officials told Reuters.
Indonesia and Malaysia's output rose to a record high in 2025, swelling stocks and weighing on prices. But the conflict has suddenly made palm oil attractive to the biodiesel industry, pushing prices to their highest level in more than a year.
"Palm oil is now trading at a steep discount to gasoil, with the current spread lucrative enough to boost demand from the biodiesel industry," said Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group.
Oil prices surged more than 25% on Monday to their highest levels since mid-2022 as some major producers cut supplies and fears of prolonged shipping disruptions gripped the market.
Indonesia, the world's largest user of palm oil-based biodiesel, said it may revive plans to roll out a B50 grade of palm oil biodiesel mid-year to counter surging crude oil prices.
In January, Jakarta shelved the plan to produce B50, an equal blend of palm oil biodiesel and conventional diesel, citing technical and funding challenges and continued with the B40 mandate instead.
A long-term policy shift from countries such as Indonesia is likely only if palm oil trades at a consistent discount to gasoil over an extended period, said Bagani.
Used in everything from cakes and frying fats to cosmetics and cleaning products, palm oil makes up more than half of global vegetable oil shipments and is especially popular among consumers in emerging markets, led by India.
Southeast Asia is well positioned to consistently supply palm oil to buyers in Asia, the Middle East, and Europe, said Carl Bek-Nielsen, vice chairman and chief executive director at United Plantations Berhad.
Palm oil supplies remain ample and can be shipped quickly to Asian buyers, but it has now become more expensive than rival soyoil, which could limit gains in demand, said a New Delhi-based dealer with a global trade house. Reuters
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Indonesia may revive B50 biodiesel mix plan as oil prices soar
JAKARTA, March 9 : Indonesia may revive a plan to launch a mandatory B50 grade of palm oil-based biodiesel in the middle of this year because of surging crude oil prices due to the conflict in the Middle East, deputy energy minister Yuliot Tanjung said.
No decision has been made yet by Indonesia, the world's largest palm oil producer, Yuliot added in comments sent to Reuters over the weekend.
In January, authorities scrapped a plan to launch B50 - a blend of 50 per cent palm oil-based biodiesel and 50 per cent conventional diesel - this year due to technical and funding concerns, instead sticking with a B40 blend.
In light of the U.S.-Israeli war on Iran, however, the government is now looking at two scenarios, Yuliot said.
"B50 might be implemented in the second semester or even earlier...But for now the steering committee's decision for B40 until the end of 2026 still stands," he said, adding that authorities were monitoring price movements in real time.
The steering committee consists of several ministries which determine biodiesel policy, led by chief economic minister, Airlangga Hartarto.
Indonesia's biodiesel mandate often affects global palm oil prices as increased domestic use reduces available exports.
Oil prices surged on Monday to above $100 per barrel [O/R]. Palm oil prices also rallied on expectations that rising crude prices will boost demand for biodiesel feedstocks. Channel News Asia
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Norwegian pension fund dumps Bolloré for human rights violations at plantations
The world’s largest pension fund has revealed that it sold its shares in the Bolloré group, a powerful French conglomerate, due to unresolved concerns about “serious human rights violations” at a plantation company partly owned by the group.
The decision was made public on 26 February 2026, in a report from the Norwegian Bank Investment Management (NBIM).1 The report states that after years of dialogue with Bolloré SE and Compagnie de l’Odet SE on “their management of human rights risks, sexual violence, harassment and labor rights abuses” at the plantations of the Luxembourg-based company Socfin, in which the Bolloré group holds a “significant share”, NBIM decided to exclude them from its investment portfolio.
The violations and abuses have long been denounced by affected communities. The Socfin group, which was founded in 1909, controls 370,000 hectares for the production of palm oil and rubber in ten countries of Africa and Asia. In many of these countries, Socfin acquired the lands without community consultation or consent, and the communities feel their lands were robbed from them. The plantations often surround villages and pollute their water sources, such that villagers cannot grow their own food crops. When villagers gather fallen palm nuts or speak out about their conditions, they are regularly harassed. For women villagers and girls, sexual violence and even rape by plantation labourers or security forces is a common occurrence. Oakland Institute
Middle East conflict could spur palm oil demand from biodiesel sector
By Rajendra Jadhav and Ashley Tang
MUMBAI/KUALA LUMPUR, March 9 (Reuters) - Rising crude oil prices and higher freight rates driven by the Middle East conflict could boost demand for palm oil from the biodiesel sector and for food use, as Asian buyers seek prompt shipments, industry officials told Reuters.
Indonesia and Malaysia's output rose to a record high in 2025, swelling stocks and weighing on prices. But the conflict has suddenly made palm oil attractive to the biodiesel industry, pushing prices to their highest level in more than a year.
"Palm oil is now trading at a steep discount to gasoil, with the current spread lucrative enough to boost demand from the biodiesel industry," said Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group.
Oil prices surged more than 25% on Monday to their highest levels since mid-2022 as some major producers cut supplies and fears of prolonged shipping disruptions gripped the market.
Indonesia, the world's largest user of palm oil-based biodiesel, said it may revive plans to roll out a B50 grade of palm oil biodiesel mid-year to counter surging crude oil prices.
In January, Jakarta shelved the plan to produce B50, an equal blend of palm oil biodiesel and conventional diesel, citing technical and funding challenges and continued with the B40 mandate instead.
A long-term policy shift from countries such as Indonesia is likely only if palm oil trades at a consistent discount to gasoil over an extended period, said Bagani.
Used in everything from cakes and frying fats to cosmetics and cleaning products, palm oil makes up more than half of global vegetable oil shipments and is especially popular among consumers in emerging markets, led by India.
Southeast Asia is well positioned to consistently supply palm oil to buyers in Asia, the Middle East, and Europe, said Carl Bek-Nielsen, vice chairman and chief executive director at United Plantations Berhad.
Palm oil supplies remain ample and can be shipped quickly to Asian buyers, but it has now become more expensive than rival soyoil, which could limit gains in demand, said a New Delhi-based dealer with a global trade house. Reuters
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Indonesia may revive B50 biodiesel mix plan as oil prices soar
JAKARTA, March 9 : Indonesia may revive a plan to launch a mandatory B50 grade of palm oil-based biodiesel in the middle of this year because of surging crude oil prices due to the conflict in the Middle East, deputy energy minister Yuliot Tanjung said.
No decision has been made yet by Indonesia, the world's largest palm oil producer, Yuliot added in comments sent to Reuters over the weekend.
In January, authorities scrapped a plan to launch B50 - a blend of 50 per cent palm oil-based biodiesel and 50 per cent conventional diesel - this year due to technical and funding concerns, instead sticking with a B40 blend.
In light of the U.S.-Israeli war on Iran, however, the government is now looking at two scenarios, Yuliot said.
"B50 might be implemented in the second semester or even earlier...But for now the steering committee's decision for B40 until the end of 2026 still stands," he said, adding that authorities were monitoring price movements in real time.
The steering committee consists of several ministries which determine biodiesel policy, led by chief economic minister, Airlangga Hartarto.
Indonesia's biodiesel mandate often affects global palm oil prices as increased domestic use reduces available exports.
Oil prices surged on Monday to above $100 per barrel [O/R]. Palm oil prices also rallied on expectations that rising crude prices will boost demand for biodiesel feedstocks. Channel News Asia
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Norwegian pension fund dumps Bolloré for human rights violations at plantations
The world’s largest pension fund has revealed that it sold its shares in the Bolloré group, a powerful French conglomerate, due to unresolved concerns about “serious human rights violations” at a plantation company partly owned by the group.
The decision was made public on 26 February 2026, in a report from the Norwegian Bank Investment Management (NBIM).1 The report states that after years of dialogue with Bolloré SE and Compagnie de l’Odet SE on “their management of human rights risks, sexual violence, harassment and labor rights abuses” at the plantations of the Luxembourg-based company Socfin, in which the Bolloré group holds a “significant share”, NBIM decided to exclude them from its investment portfolio.
The violations and abuses have long been denounced by affected communities. The Socfin group, which was founded in 1909, controls 370,000 hectares for the production of palm oil and rubber in ten countries of Africa and Asia. In many of these countries, Socfin acquired the lands without community consultation or consent, and the communities feel their lands were robbed from them. The plantations often surround villages and pollute their water sources, such that villagers cannot grow their own food crops. When villagers gather fallen palm nuts or speak out about their conditions, they are regularly harassed. For women villagers and girls, sexual violence and even rape by plantation labourers or security forces is a common occurrence. Oakland Institute
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March 09, 2026
Middle East conflict could spur palm oil demand from biodiesel sector
MUMBAI/KUALA LUMPUR, March 9 : Rising crude oil prices and higher freight rates driven by the Middle East conflict could boost demand for palm oil from the biodiesel sector and for food use, as Asian buyers seek prompt shipments, industry officials told Reuters.
Indonesia and Malaysia's output rose to a record high in 2025, swelling stocks and weighing on prices. But the conflict has suddenly made palm oil attractive to the biodiesel industry, pushing prices to their highest level in more than a year.
"Palm oil is now trading at a steep discount to gasoil, with the current spread lucrative enough to boost demand from the biodiesel industry," said Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group.
Oil prices surged more than 25 per cent on Monday to their highest levels since mid-2022 as some major producers cut supplies and fears of prolonged shipping disruptions gripped the market.
Indonesia, the world's largest user of palm oil-based biodiesel, said it may revive plans to roll out a B50 grade of palm oil biodiesel mid-year to counter surging crude oil prices.
In January, Jakarta shelved the plan to produce B50, an equal blend of palm oil biodiesel and conventional diesel, citing technical and funding challenges and continued with the B40 mandate instead.
A long-term policy shift from countries such as Indonesia is likely only if palm oil trades at a consistent discount to gasoil over an extended period, said Bagani.
Used in everything from cakes and frying fats to cosmetics and cleaning products, palm oil makes up more than half of global vegetable oil shipments and is especially popular among consumers in emerging markets, led by India.
Southeast Asia is well positioned to consistently supply palm oil to buyers in Asia, the Middle East, and Europe, said Carl Bek-Nielsen, vice chairman and chief executive director at United Plantations Berhad.
Palm oil supplies remain ample and can be shipped quickly to Asian buyers, but it has now become more expensive than rival soyoil, which could limit gains in demand, said a New Delhi-based dealer with a global trade house. Reuters
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‘Double-edged sword’: Wilmar, Golden Agri may face margin squeeze from Iran war, but upstream players could gain
With surging crude oil shortage and rising prices, biodiesel demand expected to rise
[SINGAPORE] A prolonged Middle East war could push crude palm oil (CPO) prices higher on stronger biodiesel demand – a dynamic that may benefit upstream plantation companies but pressure integrated operators.
Analysts said that Singapore-listed planters with primarily upstream operations such as First Resources : EB5 -4.01% and Bumitama Agri : P8Z +3.55% could benefit, while groups with more integrated operations such as Wilmar International : F34 +1.15%, Golden Agri-Resources : E5H 0% and Indofood Agri Resources : 5JS 0% may face a margin squeeze from higher raw material costs.
In the medium term, market watchers noted that CPO prices largely hinge on biodiesel’s trajectory, driven by Indonesia’s biodiesel mandate and climbing crude oil prices amid escalating Middle East tensions.
Chan Ker Liang, an analyst at S&P Global Ratings, remarked: “If diesel prices spike and remain elevated due to a shortage of crude oil, demand for biodiesel as a substitute to diesel will rise.”
Other factors shaping CPO prices include replanting efforts in the 2026 financial year and the Indonesian government’s land clawback initiative.
OCBC equity research analysts Ada Lim and Chu Peng noted that robust CPO prices are “generally supportive” of upstream plantation businesses.
“However, they can be a double-edged sword for downstream segments such as consumer products, where higher CPO prices raise raw material costs and may compress margins if cost pass-through to consumers is limited,” the analysts said.
They added that an earlier-than-expected roll-out of Indonesia’s B50 policy – which requires the blending of 50 per cent palm oil-based fuel with diesel – would “tighten exportable supply further and reinforce a firmer price floor”.
OCBC forecasts an average CPO price of RM4,200 (S$1,360) per tonne in 2026, while CGS International projects RM4,500 per tonne, “anchored on modest 2 per cent year-on-year supply growth and expectations of firmer global biodiesel demand”. Business Times
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OSACA hails Nigeria’s entry into Global Oil Palm Producing Council
The Chairman of Agricultural Commodities Association (OSACA), Chief Abiodun Adejo, has described Nigeria’s participation in the Global Oil Palm Producing Council as a major opportunity for oil palm farmers in the country to improve production standards and access international markets.
Speaking on the development in an interview with THE HOPE, Adejo said the council membership would provide critical exposure for Nigerian farmers, particularly small-scale producers who dominate the country’s oil palm sector.
According to him, the collaboration will help farmers understand global best practices and establish production standards that meet international requirements.
“One of the major problems facing small-scale holders in Africa and Nigeria is that production standards are not set by us . We often depend on standards determined elsewhere, without clearly knowing what is acceptable for Nigerian producers,” he stated.
He explained that engagement with other oil palm-producing countries would allow Nigerian farmers to learn how their counterparts organise production, manage smallholder systems and maintain quality control.
“With this exposure, we will understand what is happening in other countries—how they practice; how their smallholders manage themselves—and we can import those systems to improve our own,” he said.
Adejo noted that the collaboration could significantly strengthen support systems for small-scale oil palm farmers in Nigeria, while also promoting sustainable farming practices.
He stressed that long-term sustainability of oil palm production would require stronger youth participation in agriculture. However, he said attracting young people to the sector would depend on making oil palm farming economically viable.
“If a graduate decides to go into palm farming, the crop takes about five to seven years before it reaches full production.
“The question then becomes how that person sustains themselves during the gestation period and what market opportunities will exist when the palms begin to produce,” Adejo explained.
He, therefore called on government at both federal and state levels to create supportive policies and partnerships that would help farmers remain productive and profitable during the early stages of cultivation.
He also emphasised the importance of developing reliable markets for Nigerian palm oil rather than focusing solely on price controls. The Hope Newspaper
Middle East conflict could spur palm oil demand from biodiesel sector
MUMBAI/KUALA LUMPUR, March 9 : Rising crude oil prices and higher freight rates driven by the Middle East conflict could boost demand for palm oil from the biodiesel sector and for food use, as Asian buyers seek prompt shipments, industry officials told Reuters.
Indonesia and Malaysia's output rose to a record high in 2025, swelling stocks and weighing on prices. But the conflict has suddenly made palm oil attractive to the biodiesel industry, pushing prices to their highest level in more than a year.
"Palm oil is now trading at a steep discount to gasoil, with the current spread lucrative enough to boost demand from the biodiesel industry," said Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group.
Oil prices surged more than 25 per cent on Monday to their highest levels since mid-2022 as some major producers cut supplies and fears of prolonged shipping disruptions gripped the market.
Indonesia, the world's largest user of palm oil-based biodiesel, said it may revive plans to roll out a B50 grade of palm oil biodiesel mid-year to counter surging crude oil prices.
In January, Jakarta shelved the plan to produce B50, an equal blend of palm oil biodiesel and conventional diesel, citing technical and funding challenges and continued with the B40 mandate instead.
A long-term policy shift from countries such as Indonesia is likely only if palm oil trades at a consistent discount to gasoil over an extended period, said Bagani.
Used in everything from cakes and frying fats to cosmetics and cleaning products, palm oil makes up more than half of global vegetable oil shipments and is especially popular among consumers in emerging markets, led by India.
Southeast Asia is well positioned to consistently supply palm oil to buyers in Asia, the Middle East, and Europe, said Carl Bek-Nielsen, vice chairman and chief executive director at United Plantations Berhad.
Palm oil supplies remain ample and can be shipped quickly to Asian buyers, but it has now become more expensive than rival soyoil, which could limit gains in demand, said a New Delhi-based dealer with a global trade house. Reuters
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‘Double-edged sword’: Wilmar, Golden Agri may face margin squeeze from Iran war, but upstream players could gain
With surging crude oil shortage and rising prices, biodiesel demand expected to rise
[SINGAPORE] A prolonged Middle East war could push crude palm oil (CPO) prices higher on stronger biodiesel demand – a dynamic that may benefit upstream plantation companies but pressure integrated operators.
Analysts said that Singapore-listed planters with primarily upstream operations such as First Resources : EB5 -4.01% and Bumitama Agri : P8Z +3.55% could benefit, while groups with more integrated operations such as Wilmar International : F34 +1.15%, Golden Agri-Resources : E5H 0% and Indofood Agri Resources : 5JS 0% may face a margin squeeze from higher raw material costs.
In the medium term, market watchers noted that CPO prices largely hinge on biodiesel’s trajectory, driven by Indonesia’s biodiesel mandate and climbing crude oil prices amid escalating Middle East tensions.
Chan Ker Liang, an analyst at S&P Global Ratings, remarked: “If diesel prices spike and remain elevated due to a shortage of crude oil, demand for biodiesel as a substitute to diesel will rise.”
Other factors shaping CPO prices include replanting efforts in the 2026 financial year and the Indonesian government’s land clawback initiative.
OCBC equity research analysts Ada Lim and Chu Peng noted that robust CPO prices are “generally supportive” of upstream plantation businesses.
“However, they can be a double-edged sword for downstream segments such as consumer products, where higher CPO prices raise raw material costs and may compress margins if cost pass-through to consumers is limited,” the analysts said.
They added that an earlier-than-expected roll-out of Indonesia’s B50 policy – which requires the blending of 50 per cent palm oil-based fuel with diesel – would “tighten exportable supply further and reinforce a firmer price floor”.
OCBC forecasts an average CPO price of RM4,200 (S$1,360) per tonne in 2026, while CGS International projects RM4,500 per tonne, “anchored on modest 2 per cent year-on-year supply growth and expectations of firmer global biodiesel demand”. Business Times
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OSACA hails Nigeria’s entry into Global Oil Palm Producing Council
The Chairman of Agricultural Commodities Association (OSACA), Chief Abiodun Adejo, has described Nigeria’s participation in the Global Oil Palm Producing Council as a major opportunity for oil palm farmers in the country to improve production standards and access international markets.
Speaking on the development in an interview with THE HOPE, Adejo said the council membership would provide critical exposure for Nigerian farmers, particularly small-scale producers who dominate the country’s oil palm sector.
According to him, the collaboration will help farmers understand global best practices and establish production standards that meet international requirements.
“One of the major problems facing small-scale holders in Africa and Nigeria is that production standards are not set by us . We often depend on standards determined elsewhere, without clearly knowing what is acceptable for Nigerian producers,” he stated.
He explained that engagement with other oil palm-producing countries would allow Nigerian farmers to learn how their counterparts organise production, manage smallholder systems and maintain quality control.
“With this exposure, we will understand what is happening in other countries—how they practice; how their smallholders manage themselves—and we can import those systems to improve our own,” he said.
Adejo noted that the collaboration could significantly strengthen support systems for small-scale oil palm farmers in Nigeria, while also promoting sustainable farming practices.
He stressed that long-term sustainability of oil palm production would require stronger youth participation in agriculture. However, he said attracting young people to the sector would depend on making oil palm farming economically viable.
“If a graduate decides to go into palm farming, the crop takes about five to seven years before it reaches full production.
“The question then becomes how that person sustains themselves during the gestation period and what market opportunities will exist when the palms begin to produce,” Adejo explained.
He, therefore called on government at both federal and state levels to create supportive policies and partnerships that would help farmers remain productive and profitable during the early stages of cultivation.
He also emphasised the importance of developing reliable markets for Nigerian palm oil rather than focusing solely on price controls. The Hope Newspaper
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March 07, 2026
Indonesia to file suspension of concessions against EU on palm oil dispute in WTO
By Reuters
JAKARTA, March 7 (Reuters) - Indonesia's trade ministry said on Saturday that the government will file a suspension-of-concessions request against the European Union at the World Trade Organization's (WTO's) dispute settlement body, citing the block's failure to meet a WTO ruling in a palm oil case.
Here are the details:
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Indonesia Moves to Suspend Concessions Against EU Over Palm Oil Dispute
RRI.CO.ID, Jakarta - The Indonesian government has formally requested the World Trade Organization (WTO) Dispute Settlement Body (DSB) to authorize the suspension of concessions against the European Union (EU). This retaliatory move follows the EU's failure to meet the deadline to adjust its policies or to achieve "full compliance" with the WTO's previous rulings and recommendations regarding Indonesian palm oil.
Minister of Trade, Budi Santoso, confirmed on Saturday, March 7, 2026, that the decision was triggered by the EU’s inability to align its regulations with the Palm Oil Dispute Panel’s findings (DS593: EU-Palm Oil). Furthermore, the EU has reportedly failed to provide balanced compensation to Indonesia for the ongoing trade barriers, prompting Jakarta to invoke its rights under international trade law.
The request for suspension aligns with Article 22.2 of the WTO’s Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU). This mechanism allows a member country to seek "retaliatory" authority to offset economic damages caused by another member's non-compliance.
While the initial focus of the suspension will target the goods sector, the Indonesian government remains open to applying measures to other sectors as well.
“Indonesia can apply for the authority to suspend concessions to the DSB with the aim of safeguarding Indonesia's rights in the future if the EU cannot comply with the WTO Panel's decision,” said Minister Budi Santoso, as quoted by Antara.
He emphasized that while the government will calculate the exact losses meticulously, they intend to handle the case effectively while maintaining bilateral diplomatic relations with the EU.
The financial impact of the EU’s restrictive policies has been described as significant. Local industry players, represented by the Indonesian Palm Oil Association (GAPKI) and the Indonesian Biofuel Producers Association (APROBI), have voiced their strong support for the government’s move.
The lost potential in annual export value has caused a ripple effect throughout the Indonesian economy, which relies heavily on palm oil as a primary commodity.
“We will ensure the amount of losses is calculated carefully and the case handling is carried out effectively while in parallel still maintaining bilateral relations with the EU,” Budi explained, highlighting the balance between economic defense and diplomacy.
This legal maneuver is the latest step in a multi-year effort to ensure fair market access for Indonesian palm oil products in the European market. RRI
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Indonesia’s US trade deal faces a sovereignty reckoning at home
Nearly 80 civil groups and 65 academics have signed a petition urging parliament to block ratification of the ‘shameful’ deal
Indonesia went to Washington to negotiate a trade deal and came home with more than 200 obligations to America’s nine.
A day after the signing, the US Supreme Court struck down the legal basis for the tariff threat that had driven the whole exercise – for a time, at least.
Detractors have likened this “agreement on reciprocal trade” to a blank cheque and a surrender of Indonesia’s sovereignty. The government, for its part, calls it a win-win.
The deal was signed by President Prabowo Subianto on February 19, when a threatened 32 per cent US tariff on Indonesian exports still seemed like it might come to pass.
It fixed that rate at 19 per cent and secured zero-tariff access for 1,819 goods, including palm oil, coffee, cocoa, rubber and spices, that are central to the Indonesian economy.
In exchange, Jakarta agreed to extend tariff exemptions to more than 99 per cent of American goods and strip away key non-tariff barriers – among them some local content requirements and halal certification – for US companies operating in Indonesia.
It also committed to commercial deals and investment flows worth around US$33 billion in the US, including buying some US$13.5 billion worth of Boeing jets for flag carrier Garuda Indonesia.
Then the US Supreme Court ruling landed and the argument began in earnest.
‘Naked persuasion’
To hear Coordinating Minister for Economic Affairs Airlangga Hartarto tell it, the deal is a “win-win solution” for both sides.
Indonesian exports to the US grew 12 per cent last year, despite the tariff climate.
“This is what makes the US feel that Indonesia is enjoying its market, but the US is not enjoying the Indonesian market,” Airlangga said on Monday. “Therefore, a win-win solution was created.”
Indonesia would not be walking away from the agreement, he said, noting that the US’ zero-tariff rate on textiles and apparel alone helped protect a sector that sustained roughly 20 million Indonesians.
Critics see the deal from a different perspective, however. The 1,819 products granted zero-tariff entry to the US represent, by some estimates, just 2 per cent of Indonesia’s total exports, while the US market accounts for only about 10 per cent of the country’s export trade.
The Centre of Economic and Law Studies think tank has sent a formal letter of objection to the Ministry of State Secretariat urging Prabowo to notify Washington of Indonesia’s immediate withdrawal, raising at least 21 objections to provisions it said violate national interests.
Last Sunday, nearly 80 civil organisations and 65 academics launched a public petition denouncing the agreement as “clearly inconsistent with the spirit of the constitution”, noting it was hammered out with minimal public participation and without proper parliamentary consultation.
“This is a shameful deal,” said economist Yanuar Rizki, one of the petition’s signatories. “We may have tried to persuade the US to lower tariffs, but I didn’t expect us to be this naked in our persuasion.”
Indonesia has yet to ratify the trade agreement, which would become effective 90 days afterwards. The time frame set for ratification was 60 days from the day of signing.
Yet the deal’s opponents will not have an easy time convincing the House of Representatives to block it. Some 81 per cent of legislators belong to Prabowo’s ruling coalition.
Herman Khaeron, a lawmaker on a parliamentary commission that oversees trade, told local media outlet Tempo on Sunday that no ratification date had yet been set because parliament was still in recess.
This left a narrow window for action, according to Rizki.
This left a narrow window for action, according to Rizki.
“We need public pressure to encourage the House not to ratify,” he said. “Domestic resistance could force the government to tell Washington that we can’t ratify this treaty.”
The China factor
Tariff rates are not the only point of contention. Threaded through the trade deal are provisions that economist Rimawan Pradiptyo calls “poison pills” – clauses that constrain Indonesia’s freedom to do business with countries not aligned with Washington’s interests.
Jakarta has agreed to act against foreign-owned companies operating in Indonesia whose practices, such as exporting goods to the US at below-market prices, are deemed harmful to American trade.
It accepted Washington’s demand to curb what the US described as excessive production and exports by foreign‑owned miners of nickel, cobalt, bauxite, tin, copper and manganese – a provision analysts see as a direct attempt to curtail Chinese dominance of Indonesia’s critical mineral sector.
The country also opened its critical mineral exports to American firms and pledged “expedient development” of its rare earth sector with the US.
“Indonesia seems to be a vassal state of the US,” said Rimawan, who is a senior lecturer at Gadjah Mada University in Yogyakarta.
“We have no problem with China, but the US is ordering Indonesia to comply with US policy, which means we must be hostile to China.”
That risked inviting economic retaliation, he said. Possibly from Russia as well.
“This [deal] is a blank cheque for the US,” Rimawan said. “Indonesia is obliged to comply with their policies, even for ones that don’t currently exist.”
Placing restrictions on free trade at the behest of a hegemonic power would violate Indonesia’s non-aligned foreign policy stance, he argued.
Rimawan also warned that complying with the deal would require amending or creating at least 117 domestic regulations in “a storm of institutional revolution” that would take years to complete. SCMP
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MPOC: US-Iran escalation keeps oil prices firm, lifts palm oil outlook
https://www.pressreader.com/malaysia/the-borneo-post/20260306/282226607217693
Indonesia to file suspension of concessions against EU on palm oil dispute in WTO
By Reuters
JAKARTA, March 7 (Reuters) - Indonesia's trade ministry said on Saturday that the government will file a suspension-of-concessions request against the European Union at the World Trade Organization's (WTO's) dispute settlement body, citing the block's failure to meet a WTO ruling in a palm oil case.
Here are the details:
- "This step is taken after the EU could not meet the deadline to adjust its policy or was not fully compliant with the ruling and recommendation of the palm oil dispute settlement body," Trade Minister Budi Santoso said in a statement.
- The suspension of concession will be focused on trade in goods, Budi said, adding that the government has not ruled out concession suspension in other sectors.
- "We will ensure that the losses are thoroughly calculated and the cases are handled effectively, while maintaining bilateral relations with the EU," Budi said.
- In 2025, a WTO panel found largely in favour of the EU in a case brought by Indonesia against the bloc's restrictions on palm oil-based biofuel.
- The panel ruled that palm oil-based diesel would not be considered a biofuel and its use in transport fuel would effectively be phased out between 2023 and 2030. However, the panel did find fault in the way the EU had prepared, published and administered its measures.
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Indonesia Moves to Suspend Concessions Against EU Over Palm Oil Dispute
RRI.CO.ID, Jakarta - The Indonesian government has formally requested the World Trade Organization (WTO) Dispute Settlement Body (DSB) to authorize the suspension of concessions against the European Union (EU). This retaliatory move follows the EU's failure to meet the deadline to adjust its policies or to achieve "full compliance" with the WTO's previous rulings and recommendations regarding Indonesian palm oil.
Minister of Trade, Budi Santoso, confirmed on Saturday, March 7, 2026, that the decision was triggered by the EU’s inability to align its regulations with the Palm Oil Dispute Panel’s findings (DS593: EU-Palm Oil). Furthermore, the EU has reportedly failed to provide balanced compensation to Indonesia for the ongoing trade barriers, prompting Jakarta to invoke its rights under international trade law.
The request for suspension aligns with Article 22.2 of the WTO’s Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU). This mechanism allows a member country to seek "retaliatory" authority to offset economic damages caused by another member's non-compliance.
While the initial focus of the suspension will target the goods sector, the Indonesian government remains open to applying measures to other sectors as well.
“Indonesia can apply for the authority to suspend concessions to the DSB with the aim of safeguarding Indonesia's rights in the future if the EU cannot comply with the WTO Panel's decision,” said Minister Budi Santoso, as quoted by Antara.
He emphasized that while the government will calculate the exact losses meticulously, they intend to handle the case effectively while maintaining bilateral diplomatic relations with the EU.
The financial impact of the EU’s restrictive policies has been described as significant. Local industry players, represented by the Indonesian Palm Oil Association (GAPKI) and the Indonesian Biofuel Producers Association (APROBI), have voiced their strong support for the government’s move.
The lost potential in annual export value has caused a ripple effect throughout the Indonesian economy, which relies heavily on palm oil as a primary commodity.
“We will ensure the amount of losses is calculated carefully and the case handling is carried out effectively while in parallel still maintaining bilateral relations with the EU,” Budi explained, highlighting the balance between economic defense and diplomacy.
This legal maneuver is the latest step in a multi-year effort to ensure fair market access for Indonesian palm oil products in the European market. RRI
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Indonesia’s US trade deal faces a sovereignty reckoning at home
Nearly 80 civil groups and 65 academics have signed a petition urging parliament to block ratification of the ‘shameful’ deal
Indonesia went to Washington to negotiate a trade deal and came home with more than 200 obligations to America’s nine.
A day after the signing, the US Supreme Court struck down the legal basis for the tariff threat that had driven the whole exercise – for a time, at least.
Detractors have likened this “agreement on reciprocal trade” to a blank cheque and a surrender of Indonesia’s sovereignty. The government, for its part, calls it a win-win.
The deal was signed by President Prabowo Subianto on February 19, when a threatened 32 per cent US tariff on Indonesian exports still seemed like it might come to pass.
It fixed that rate at 19 per cent and secured zero-tariff access for 1,819 goods, including palm oil, coffee, cocoa, rubber and spices, that are central to the Indonesian economy.
In exchange, Jakarta agreed to extend tariff exemptions to more than 99 per cent of American goods and strip away key non-tariff barriers – among them some local content requirements and halal certification – for US companies operating in Indonesia.
It also committed to commercial deals and investment flows worth around US$33 billion in the US, including buying some US$13.5 billion worth of Boeing jets for flag carrier Garuda Indonesia.
Then the US Supreme Court ruling landed and the argument began in earnest.
‘Naked persuasion’
To hear Coordinating Minister for Economic Affairs Airlangga Hartarto tell it, the deal is a “win-win solution” for both sides.
Indonesian exports to the US grew 12 per cent last year, despite the tariff climate.
“This is what makes the US feel that Indonesia is enjoying its market, but the US is not enjoying the Indonesian market,” Airlangga said on Monday. “Therefore, a win-win solution was created.”
Indonesia would not be walking away from the agreement, he said, noting that the US’ zero-tariff rate on textiles and apparel alone helped protect a sector that sustained roughly 20 million Indonesians.
Critics see the deal from a different perspective, however. The 1,819 products granted zero-tariff entry to the US represent, by some estimates, just 2 per cent of Indonesia’s total exports, while the US market accounts for only about 10 per cent of the country’s export trade.
The Centre of Economic and Law Studies think tank has sent a formal letter of objection to the Ministry of State Secretariat urging Prabowo to notify Washington of Indonesia’s immediate withdrawal, raising at least 21 objections to provisions it said violate national interests.
Last Sunday, nearly 80 civil organisations and 65 academics launched a public petition denouncing the agreement as “clearly inconsistent with the spirit of the constitution”, noting it was hammered out with minimal public participation and without proper parliamentary consultation.
“This is a shameful deal,” said economist Yanuar Rizki, one of the petition’s signatories. “We may have tried to persuade the US to lower tariffs, but I didn’t expect us to be this naked in our persuasion.”
Indonesia has yet to ratify the trade agreement, which would become effective 90 days afterwards. The time frame set for ratification was 60 days from the day of signing.
Yet the deal’s opponents will not have an easy time convincing the House of Representatives to block it. Some 81 per cent of legislators belong to Prabowo’s ruling coalition.
Herman Khaeron, a lawmaker on a parliamentary commission that oversees trade, told local media outlet Tempo on Sunday that no ratification date had yet been set because parliament was still in recess.
This left a narrow window for action, according to Rizki.
This left a narrow window for action, according to Rizki.
“We need public pressure to encourage the House not to ratify,” he said. “Domestic resistance could force the government to tell Washington that we can’t ratify this treaty.”
The China factor
Tariff rates are not the only point of contention. Threaded through the trade deal are provisions that economist Rimawan Pradiptyo calls “poison pills” – clauses that constrain Indonesia’s freedom to do business with countries not aligned with Washington’s interests.
Jakarta has agreed to act against foreign-owned companies operating in Indonesia whose practices, such as exporting goods to the US at below-market prices, are deemed harmful to American trade.
It accepted Washington’s demand to curb what the US described as excessive production and exports by foreign‑owned miners of nickel, cobalt, bauxite, tin, copper and manganese – a provision analysts see as a direct attempt to curtail Chinese dominance of Indonesia’s critical mineral sector.
The country also opened its critical mineral exports to American firms and pledged “expedient development” of its rare earth sector with the US.
“Indonesia seems to be a vassal state of the US,” said Rimawan, who is a senior lecturer at Gadjah Mada University in Yogyakarta.
“We have no problem with China, but the US is ordering Indonesia to comply with US policy, which means we must be hostile to China.”
That risked inviting economic retaliation, he said. Possibly from Russia as well.
“This [deal] is a blank cheque for the US,” Rimawan said. “Indonesia is obliged to comply with their policies, even for ones that don’t currently exist.”
Placing restrictions on free trade at the behest of a hegemonic power would violate Indonesia’s non-aligned foreign policy stance, he argued.
Rimawan also warned that complying with the deal would require amending or creating at least 117 domestic regulations in “a storm of institutional revolution” that would take years to complete. SCMP
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MPOC: US-Iran escalation keeps oil prices firm, lifts palm oil outlook
https://www.pressreader.com/malaysia/the-borneo-post/20260306/282226607217693
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March 06, 2026
Palm Oil in Europe: Field Notes of an Ambassador Yuri Octavian Thamrin
Yuri Octavian Thamrin, Indonesian Ambassador to Belgium, Luxembourg, and the European Union (2016–2020); Indonesian Ambassador to the United Kingdom, Ireland, and the IMO (2008–2011); Spokesperson of the Indonesian Ministry of Foreign Affairs (2004–2008)
WRITE these notes not out of nostalgia, but to share experience—what might be called cross-fertilization—on how palm oil diplomacy operates in a complex arena such as the European Union. Each Indonesian mission abroad faces different circumstances, but the patterns of challenges are often similar: regulations, industrial lobbying, and public opinion intertwined.
From the beginning, I realized this was never simply about a commodity. It was about fairness. In Brussels, palm oil has never been treated solely as a tradable product. It has evolved into a political symbol, a tool in environmental campaigns, and at the same time a battleground of economic competition wrapped in moral narratives.
During my tenure, the greening of politics was gaining momentum. Environmental and climate issues were no longer confined to specific activist circles; they have become mainstream across the political spectrum. The consequences were clear: the policy space for palm oil was tightening.
At the regulatory level, the European Union adopted the Renewable Energy Directive (RED II), reinforced by regulations on Indirect Land Use Change (ILUC). Palm oil was categorized as a high-risk commodity, with policy direction pointing toward a complete phase-out by 2030.
At the same time, pressure also came from the private sector. Indonesian biodiesel faced anti-subsidy investigations, while public campaigns promoting “palm oil-free” products shaped a widespread negative perception among European consumers.
I came to see this as a perfect storm—where regulation, industrial interests, and public opinion moved in the same direction.
Facing such a situation taught me that diplomacy in Brussels cannot be conducted in a linear way. The European Union is a multi-institutional system. The European Commission operates in a technocratic manner, the European Parliament shapes political narratives, and the European Council reflects the interests of member states.
Therefore, engagement must be conducted in parallel, consistently, and across multiple layers.
One of the most important lessons I learned was simple: never fight alone.
We built alliances with other palm-oil-producing countries. By framing the issue of nations as a matter of fairness for developing, the political resonance changed significantly. The debate was no longer solely about Indonesia, but about a broader global issue affecting the Global South.
We also encouraged collective communication with the leadership of EU institutions. This helped elevate the discussion from technical matters to high-level political attention. In my experience, shifts in position often occur not in technical rooms but in political ones.
At the same time, technical debates—such as the methodology behind ILUC—could not be ignored. That is where many of the real battles took place. Everyone agrees that environmental protection matters. The question, however, is whether the policies adopted are truly evidence-based, non-discriminatory, and fair.
I also learned that in Europe, public perception carries enormous influence. In many cases, perception becomes policy.
For that reason, our work is not limited to formal diplomatic channels. We engage the public sphere as well—through multi-stakeholder forums, communication campaigns, and content explaining sustainable palm oil practices in Indonesia.
We even facilitated visits by members of the European Parliament to Indonesia. I firmly believe that seeing realities on the ground is often more powerful than a thousand arguments in a meeting room. Many stereotypes collapsed when they witnessed the situation first hand.
When confronting allegations such as anti-subsidy claims on biodiesel, I learned that the only language truly respected is data and evidence. Arguments must be presented rigorously, consistently, and within the rules of their system.
At the same time, I never ignored the fact that behind environmental narratives lies an element of economic competition. Palm oil competes directly with European vegetable oils such as rapeseed and sunflower oil. At the consumer level, labels such as “palm oil-free” often function as marketing tools that shape perception without offering full context.
Our approach, therefore, must remain clear-eyed: there are genuine environmental concerns, but there are also domestic economic and political interests that cannot be overlooked.
For me, the most important lesson is this: palm oil diplomacy is a marathon, not a sprint.
It requires consistency, patience, and the ability to read shifting dynamics.
And one more thing—we cannot win only in meeting rooms. We must also win in the public sphere.
Because it is there that policies often gain their moral legitimacy. KBA News
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Palm Oil Industry In Crisis As Prices Crash, Smuggling Surges in Nigeria
LAGOS – Nigeria’s palm oil industry is facing one of its most difficult seasons in recent years, as stakeholders warn that a sharp crash in local prices, rising production costs, and an influx of smuggled products are threatening livelihoods across the value chain.
From smallholder farmers to major processors, operators say the market has become unsustainable, with some selling below production cost.
With falling prices, rising costs and continued market volatility, stakeholders in separate interviews with Daily Independent warn that without decisive intervention, poverty could deepen in palm oil producing communities and processors may be forced to shut down operations.
They pointed out that the future now depends on how quickly and decisively the government responds.
Ambassador Alphonsus Inyang, President, National Palm Produce Association of Nigeria (NPPAN), described the situation as alarming.
According to him, Nigerian palm oil producers and millers are currently selling at prices lower than production costs.
He said the rate at which palm oil prices are dropping in Nigeria calls for concern, stressing that smallholders—who account for a large share of national production—are the worst hit.
He explained that millers depend on profitable sales to continue purchasing fresh fruit bunches from farmers and that, if millers cannot sell at viable prices, they reduce production, cutting off income for farmers who rely on palm oil proceeds to pay school fees, medical bills and support their families.
He further noted that production costs have surged, as millers use diesel, petrol and electricity, and electricity costs alone have risen more than four times in the past two years, stressing that transporting fruits from farms further adds to operational expenses.
Dr. Graham Hefer, Managing Director of Okomu Oil Palm Company Limited, confirmed the downturn, noting that crude palm oil prices have fallen by about 25 percent in the last three months.
He said the decline mirrors what is happening with other commodities, but warned that processors are trapped in a situation where production costs are higher than selling prices.
He said while lower prices may appear to reduce inflation, it is not sustainable if processors are pushed out of business.
According to him, lax customs enforcement has allowed sub-standard products into the country, bypassing regulators, with negative effects across the value chain.
A major concern for producers is the reported influx of smuggled palm oil through sea and land borders in the southern, southwestern, northeastern and northwestern parts of the country.
Inyang described it as an organised syndicate of economic saboteurs, saying truckloads and shiploads of palm oil are entering illegally.
He noted that the association lacks the enforcement powers of customs or the police to stop the trade.
He argued that the imported oil comes from countries where farmers and millers receive significant subsidies and incentives, allowing them to produce at lower cost. When such products enter Nigeria—where producers lack fertiliser support, funding incentives and subsidies—they are sold at lower prices, pushing local farmers out of the market.
He added that the government also loses revenue as a result.
Hefer said the current situation may create the impression of lower inflation but warned that it reflects stagflation, where commodity prices fall while production inputs remain high.
He stressed that processors feel inflation through higher raw material and processing costs, making it impossible to sustain operations under depressed selling prices.
Henry Olatujoye, CEO at Palmfield Development & Processing Limited, however, offered a different perspective.
He said the recent price crash has had no effect on his operations because such fluctuations are expected.
According to him, palm oil prices depend on production levels, international prices and consumption outlook, all determined by demand and supply.
He said he could not confirm smuggling but acknowledged that palm oil enters the country legitimately through borders, noting that Nigeria is a net importer of the product.
He argued that for imports to depress domestic prices, there must be excess supply in the market, maintaining that prices in a free market are primarily a function of demand and supply.
Stakeholders are nevertheless united in calling for stronger government action.
Inyang urged authorities to police borders more effectively and prevent illegal imports.
He also called for patient capital and targeted incentives for the oil palm sector, arguing that the industry is central to food, cosmetics and energy industries.
He referenced the 25 percent crude palm oil levy on imports, which was intended to fund backward integration and industry development.
According to him, the levy should be deployed to support plantation expansion, replanting old and wild palms with hybrid varieties, training, capacity building and improved seedlings.
He further called for proper funding of the Nigerian Institute for Oil Palm Research (NIFOR), saying it has the capacity to produce up to 50 million seedlings annually if adequately supported.
Hefer said government protections already exist but enforcement is lacking.
He called for watertight borders and suggested establishing a palm oil council to strengthen regulatory oversight and ensure compliance with existing laws.
Olatujoye advocated an enabling environment that would encourage investors to convert idle forest land into oil palm plantations.
He said Nigeria needs to develop about two million hectares commercially to achieve sustainable supply and move toward self-sufficiency. IndependentNG
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Basilan advances palm oil industry development with focus on sustainability
Kalikasan ang ating priority. Hindi ko isakripisyo ang kalikasan,” the governor stated, reaffirming the province’s commitment to environmentally sustainable development.
Isabela City, Basilan – The province of Basilan is poised for a major leap in agricultural development as the provincial government partners with Kenram Palmoil Industries, Inc. (KPII) to establish a large-scale oil palm plantation and processing mill.
This initiative marks a significant step toward industrialization, with a strong emphasis on sustainability and community empowerment.
The project took center stage during a strategic meeting held recently at Lumah Raayat, Basilan Government Center where officials from various sectors discussed the project’s progress and outlined a roadmap for responsible industrial growth, balancing economic gains with environmental preservation.
According to KPII reports, the project is currently undergoing critical phases of financial and legal due diligence. These measures aim to ensure transparent investments and sustainable implementation before the planting phase begins.
Basilan Governor Mujiv S. Hataman underscored the importance of environmental integrity, emphasizing that progress must not come at the expense of the island’s rich biodiversity.
Local cooperatives, including Sta. Clara Agrarian Reform Beneficiaries Integrated Development Cooperative (SCARBIDC), Tumahubong Agrarian Reform Beneficiaries Integrated Development Cooperative (TARBIDC), Mangal Agrarian Reform Beneficiaries Development Cooperative (MARBEDCO), and Lamitan Agrarian Reform Beneficiaries Cooperative (LARBECO), have formalized partnerships with the government, contributing technical expertise and funding support to ensure the project’s success.
Hataman emphasized that beyond economic potential, the palm oil initiative is envisioned as a catalyst for job generation, providing stable income for local communities and stimulating small enterprises. It seeks to drive long-term economic growth and establish a lasting development legacy for Basilan.
Stakeholders expressed hope that the initiative will position Basilan’s agricultural sector toward sustainable practices, ensuring that progress benefits both the environment and the people. (JPA/NDR/MVE/PIA Basilan with reports from the Provincial Government of Basilan) PIA PH
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India halts some soybean oil imports as prices outpace palm oil
MUMBAI (Diya TV) — India has canceled several shipments of soybean oil after prices for the product surged above cheaper alternatives. The move highlights the growing pressure on edible oil importers as global prices fluctuate and buyers shift toward lower-cost options.
India is the world’s largest importer of edible oils. The country depends heavily on overseas supplies to meet domestic demand. When price gaps widen between different oils, buyers quickly change purchasing plans to control costs. Recent cancellations show how sharply soybean oil prices have climbed compared with palm oil, which remains a key alternative for Indian refiners and food companies.
Indian importers have canceled about 25,000 tons of soybean oil booked from Russia in recent days. They also scrapped another 6,000 to 8,000 tons from South America.
Industry officials say the cancellations came after soybean oil became significantly more expensive than palm oil. The growing price premium made the purchases less attractive for Indian buyers. Aashish Acharya, vice president at Patanjali Foods Ltd., confirmed the cancellations. Patanjali Foods is one of India’s largest edible oil buyers.
According to Acharya, the Russian cargoes were scheduled to arrive in India between late March and early April. Meanwhile, the South American shipments were expected during the April-to-July period. Importers decided to cancel the orders after soybean oil prices climbed further in the global market.
Palm oil continues to dominate India’s edible oil imports because of its competitive pricing. When soybean oil becomes too expensive, buyers often shift to palm oil or other vegetable oils. The price gap between soybean oil and palm oil has widened in recent weeks. This trend has pushed refiners to reconsider their procurement strategies.
Palm oil is widely used in packaged foods, cooking oils, and processed products across India. Its lower cost makes it attractive to food companies and large refiners. Analysts say that even small price differences can lead to major changes in import decisions. Since India imports millions of tons of edible oil each year, a small premium can translate into high additional costs.
Several global factors have influenced soybean oil prices. Weather conditions, supply concerns, and strong demand in major markets have all played a role. South American countries such as Brazil and Argentina are key exporters of soybean products. Any disruption in supply from the region can affect global prices.
Russia has also emerged as a supplier of edible oils to India in recent years. However, price competitiveness remains the main factor that determines purchasing decisions. Market traders say Indian buyers often monitor price spreads between different oils before finalizing shipments. If soybean oil loses its price advantage, importers quickly switch to other options.
India imports large quantities of palm oil, soybean oil, and sunflower oil each year. Domestic production cannot meet the country’s rising consumption. The shift away from soybean oil could increase demand for palm oil in the coming months. This trend may influence global trade flows as suppliers adjust to changing demand from India.
Refiners and traders expect import patterns to remain flexible. Buyers will continue to track global prices closely and choose the most economical option. Consumers may not notice immediate changes in retail cooking oil prices. However, import costs play a major role in determining long-term price trends in the market. Diya TV USA
Palm Oil in Europe: Field Notes of an Ambassador Yuri Octavian Thamrin
Yuri Octavian Thamrin, Indonesian Ambassador to Belgium, Luxembourg, and the European Union (2016–2020); Indonesian Ambassador to the United Kingdom, Ireland, and the IMO (2008–2011); Spokesperson of the Indonesian Ministry of Foreign Affairs (2004–2008)
WRITE these notes not out of nostalgia, but to share experience—what might be called cross-fertilization—on how palm oil diplomacy operates in a complex arena such as the European Union. Each Indonesian mission abroad faces different circumstances, but the patterns of challenges are often similar: regulations, industrial lobbying, and public opinion intertwined.
From the beginning, I realized this was never simply about a commodity. It was about fairness. In Brussels, palm oil has never been treated solely as a tradable product. It has evolved into a political symbol, a tool in environmental campaigns, and at the same time a battleground of economic competition wrapped in moral narratives.
During my tenure, the greening of politics was gaining momentum. Environmental and climate issues were no longer confined to specific activist circles; they have become mainstream across the political spectrum. The consequences were clear: the policy space for palm oil was tightening.
At the regulatory level, the European Union adopted the Renewable Energy Directive (RED II), reinforced by regulations on Indirect Land Use Change (ILUC). Palm oil was categorized as a high-risk commodity, with policy direction pointing toward a complete phase-out by 2030.
At the same time, pressure also came from the private sector. Indonesian biodiesel faced anti-subsidy investigations, while public campaigns promoting “palm oil-free” products shaped a widespread negative perception among European consumers.
I came to see this as a perfect storm—where regulation, industrial interests, and public opinion moved in the same direction.
Facing such a situation taught me that diplomacy in Brussels cannot be conducted in a linear way. The European Union is a multi-institutional system. The European Commission operates in a technocratic manner, the European Parliament shapes political narratives, and the European Council reflects the interests of member states.
Therefore, engagement must be conducted in parallel, consistently, and across multiple layers.
One of the most important lessons I learned was simple: never fight alone.
We built alliances with other palm-oil-producing countries. By framing the issue of nations as a matter of fairness for developing, the political resonance changed significantly. The debate was no longer solely about Indonesia, but about a broader global issue affecting the Global South.
We also encouraged collective communication with the leadership of EU institutions. This helped elevate the discussion from technical matters to high-level political attention. In my experience, shifts in position often occur not in technical rooms but in political ones.
At the same time, technical debates—such as the methodology behind ILUC—could not be ignored. That is where many of the real battles took place. Everyone agrees that environmental protection matters. The question, however, is whether the policies adopted are truly evidence-based, non-discriminatory, and fair.
I also learned that in Europe, public perception carries enormous influence. In many cases, perception becomes policy.
For that reason, our work is not limited to formal diplomatic channels. We engage the public sphere as well—through multi-stakeholder forums, communication campaigns, and content explaining sustainable palm oil practices in Indonesia.
We even facilitated visits by members of the European Parliament to Indonesia. I firmly believe that seeing realities on the ground is often more powerful than a thousand arguments in a meeting room. Many stereotypes collapsed when they witnessed the situation first hand.
When confronting allegations such as anti-subsidy claims on biodiesel, I learned that the only language truly respected is data and evidence. Arguments must be presented rigorously, consistently, and within the rules of their system.
At the same time, I never ignored the fact that behind environmental narratives lies an element of economic competition. Palm oil competes directly with European vegetable oils such as rapeseed and sunflower oil. At the consumer level, labels such as “palm oil-free” often function as marketing tools that shape perception without offering full context.
Our approach, therefore, must remain clear-eyed: there are genuine environmental concerns, but there are also domestic economic and political interests that cannot be overlooked.
For me, the most important lesson is this: palm oil diplomacy is a marathon, not a sprint.
It requires consistency, patience, and the ability to read shifting dynamics.
And one more thing—we cannot win only in meeting rooms. We must also win in the public sphere.
Because it is there that policies often gain their moral legitimacy. KBA News
--------
Palm Oil Industry In Crisis As Prices Crash, Smuggling Surges in Nigeria
LAGOS – Nigeria’s palm oil industry is facing one of its most difficult seasons in recent years, as stakeholders warn that a sharp crash in local prices, rising production costs, and an influx of smuggled products are threatening livelihoods across the value chain.
From smallholder farmers to major processors, operators say the market has become unsustainable, with some selling below production cost.
With falling prices, rising costs and continued market volatility, stakeholders in separate interviews with Daily Independent warn that without decisive intervention, poverty could deepen in palm oil producing communities and processors may be forced to shut down operations.
They pointed out that the future now depends on how quickly and decisively the government responds.
Ambassador Alphonsus Inyang, President, National Palm Produce Association of Nigeria (NPPAN), described the situation as alarming.
According to him, Nigerian palm oil producers and millers are currently selling at prices lower than production costs.
He said the rate at which palm oil prices are dropping in Nigeria calls for concern, stressing that smallholders—who account for a large share of national production—are the worst hit.
He explained that millers depend on profitable sales to continue purchasing fresh fruit bunches from farmers and that, if millers cannot sell at viable prices, they reduce production, cutting off income for farmers who rely on palm oil proceeds to pay school fees, medical bills and support their families.
He further noted that production costs have surged, as millers use diesel, petrol and electricity, and electricity costs alone have risen more than four times in the past two years, stressing that transporting fruits from farms further adds to operational expenses.
Dr. Graham Hefer, Managing Director of Okomu Oil Palm Company Limited, confirmed the downturn, noting that crude palm oil prices have fallen by about 25 percent in the last three months.
He said the decline mirrors what is happening with other commodities, but warned that processors are trapped in a situation where production costs are higher than selling prices.
He said while lower prices may appear to reduce inflation, it is not sustainable if processors are pushed out of business.
According to him, lax customs enforcement has allowed sub-standard products into the country, bypassing regulators, with negative effects across the value chain.
A major concern for producers is the reported influx of smuggled palm oil through sea and land borders in the southern, southwestern, northeastern and northwestern parts of the country.
Inyang described it as an organised syndicate of economic saboteurs, saying truckloads and shiploads of palm oil are entering illegally.
He noted that the association lacks the enforcement powers of customs or the police to stop the trade.
He argued that the imported oil comes from countries where farmers and millers receive significant subsidies and incentives, allowing them to produce at lower cost. When such products enter Nigeria—where producers lack fertiliser support, funding incentives and subsidies—they are sold at lower prices, pushing local farmers out of the market.
He added that the government also loses revenue as a result.
Hefer said the current situation may create the impression of lower inflation but warned that it reflects stagflation, where commodity prices fall while production inputs remain high.
He stressed that processors feel inflation through higher raw material and processing costs, making it impossible to sustain operations under depressed selling prices.
Henry Olatujoye, CEO at Palmfield Development & Processing Limited, however, offered a different perspective.
He said the recent price crash has had no effect on his operations because such fluctuations are expected.
According to him, palm oil prices depend on production levels, international prices and consumption outlook, all determined by demand and supply.
He said he could not confirm smuggling but acknowledged that palm oil enters the country legitimately through borders, noting that Nigeria is a net importer of the product.
He argued that for imports to depress domestic prices, there must be excess supply in the market, maintaining that prices in a free market are primarily a function of demand and supply.
Stakeholders are nevertheless united in calling for stronger government action.
Inyang urged authorities to police borders more effectively and prevent illegal imports.
He also called for patient capital and targeted incentives for the oil palm sector, arguing that the industry is central to food, cosmetics and energy industries.
He referenced the 25 percent crude palm oil levy on imports, which was intended to fund backward integration and industry development.
According to him, the levy should be deployed to support plantation expansion, replanting old and wild palms with hybrid varieties, training, capacity building and improved seedlings.
He further called for proper funding of the Nigerian Institute for Oil Palm Research (NIFOR), saying it has the capacity to produce up to 50 million seedlings annually if adequately supported.
Hefer said government protections already exist but enforcement is lacking.
He called for watertight borders and suggested establishing a palm oil council to strengthen regulatory oversight and ensure compliance with existing laws.
Olatujoye advocated an enabling environment that would encourage investors to convert idle forest land into oil palm plantations.
He said Nigeria needs to develop about two million hectares commercially to achieve sustainable supply and move toward self-sufficiency. IndependentNG
--------
Basilan advances palm oil industry development with focus on sustainability
Kalikasan ang ating priority. Hindi ko isakripisyo ang kalikasan,” the governor stated, reaffirming the province’s commitment to environmentally sustainable development.
Isabela City, Basilan – The province of Basilan is poised for a major leap in agricultural development as the provincial government partners with Kenram Palmoil Industries, Inc. (KPII) to establish a large-scale oil palm plantation and processing mill.
This initiative marks a significant step toward industrialization, with a strong emphasis on sustainability and community empowerment.
The project took center stage during a strategic meeting held recently at Lumah Raayat, Basilan Government Center where officials from various sectors discussed the project’s progress and outlined a roadmap for responsible industrial growth, balancing economic gains with environmental preservation.
According to KPII reports, the project is currently undergoing critical phases of financial and legal due diligence. These measures aim to ensure transparent investments and sustainable implementation before the planting phase begins.
Basilan Governor Mujiv S. Hataman underscored the importance of environmental integrity, emphasizing that progress must not come at the expense of the island’s rich biodiversity.
Local cooperatives, including Sta. Clara Agrarian Reform Beneficiaries Integrated Development Cooperative (SCARBIDC), Tumahubong Agrarian Reform Beneficiaries Integrated Development Cooperative (TARBIDC), Mangal Agrarian Reform Beneficiaries Development Cooperative (MARBEDCO), and Lamitan Agrarian Reform Beneficiaries Cooperative (LARBECO), have formalized partnerships with the government, contributing technical expertise and funding support to ensure the project’s success.
Hataman emphasized that beyond economic potential, the palm oil initiative is envisioned as a catalyst for job generation, providing stable income for local communities and stimulating small enterprises. It seeks to drive long-term economic growth and establish a lasting development legacy for Basilan.
Stakeholders expressed hope that the initiative will position Basilan’s agricultural sector toward sustainable practices, ensuring that progress benefits both the environment and the people. (JPA/NDR/MVE/PIA Basilan with reports from the Provincial Government of Basilan) PIA PH
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India halts some soybean oil imports as prices outpace palm oil
MUMBAI (Diya TV) — India has canceled several shipments of soybean oil after prices for the product surged above cheaper alternatives. The move highlights the growing pressure on edible oil importers as global prices fluctuate and buyers shift toward lower-cost options.
India is the world’s largest importer of edible oils. The country depends heavily on overseas supplies to meet domestic demand. When price gaps widen between different oils, buyers quickly change purchasing plans to control costs. Recent cancellations show how sharply soybean oil prices have climbed compared with palm oil, which remains a key alternative for Indian refiners and food companies.
Indian importers have canceled about 25,000 tons of soybean oil booked from Russia in recent days. They also scrapped another 6,000 to 8,000 tons from South America.
Industry officials say the cancellations came after soybean oil became significantly more expensive than palm oil. The growing price premium made the purchases less attractive for Indian buyers. Aashish Acharya, vice president at Patanjali Foods Ltd., confirmed the cancellations. Patanjali Foods is one of India’s largest edible oil buyers.
According to Acharya, the Russian cargoes were scheduled to arrive in India between late March and early April. Meanwhile, the South American shipments were expected during the April-to-July period. Importers decided to cancel the orders after soybean oil prices climbed further in the global market.
Palm oil continues to dominate India’s edible oil imports because of its competitive pricing. When soybean oil becomes too expensive, buyers often shift to palm oil or other vegetable oils. The price gap between soybean oil and palm oil has widened in recent weeks. This trend has pushed refiners to reconsider their procurement strategies.
Palm oil is widely used in packaged foods, cooking oils, and processed products across India. Its lower cost makes it attractive to food companies and large refiners. Analysts say that even small price differences can lead to major changes in import decisions. Since India imports millions of tons of edible oil each year, a small premium can translate into high additional costs.
Several global factors have influenced soybean oil prices. Weather conditions, supply concerns, and strong demand in major markets have all played a role. South American countries such as Brazil and Argentina are key exporters of soybean products. Any disruption in supply from the region can affect global prices.
Russia has also emerged as a supplier of edible oils to India in recent years. However, price competitiveness remains the main factor that determines purchasing decisions. Market traders say Indian buyers often monitor price spreads between different oils before finalizing shipments. If soybean oil loses its price advantage, importers quickly switch to other options.
India imports large quantities of palm oil, soybean oil, and sunflower oil each year. Domestic production cannot meet the country’s rising consumption. The shift away from soybean oil could increase demand for palm oil in the coming months. This trend may influence global trade flows as suppliers adjust to changing demand from India.
Refiners and traders expect import patterns to remain flexible. Buyers will continue to track global prices closely and choose the most economical option. Consumers may not notice immediate changes in retail cooking oil prices. However, import costs play a major role in determining long-term price trends in the market. Diya TV USA
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March 04, 2026
EU-India Trade Pact Could Lower Barriers for Greek Olive Oil Exports
A landmark free trade agreement between the EU and India is expected to open a new route for Greek olive oil to the East by eliminating tariffs on exports, potentially boosting the country’s presence in India’s market. The agreement aims to reduce costs for European producers and exporters, with projections showing rapid growth in India’s olive oil market in the coming years, but Greek industry observers warn of competition from established Spanish and Italian exporters.
A new route for Greek olive oil to the East could open after a landmark free trade agreement was struck between the European Union and India in January.
Often termed “the mother of all deals,” the EU-India pact aims to eliminate tariffs on around 99 percent of imports from India to the bloc and remove or reduce tariffs on 96 percent of European products exported to India.
According to the European Commission, the agreement is expected to save EU producers and exporters around €4 billion annually in duties paid on exports to the world’s most populous country.
For European olive oil, the existing import levy of up to 45 percent to India would be phased out over five years after the trade agreement formally enters into force, potentially narrowing the price gap that has limited demand.
Indians traditionally use a range of edible oils, including sunflower, coconut, safflower and palm oil. Olive oil — also known as jaitun oil in India — has emerged as a healthier alternative, particularly among the country’s middle class.
Market analysts have projected that India’s olive oil market will grow rapidly in the coming years, reaching $253 million by 2030 from $89 million in 2023. Olive Oil Times
--------
Global Deforestation Reports: How Much Caused By Palm Oil?
There have been many wrong narratives fabricated by certain groups in their global campaigns against palm oil. Prominent among them is the issue that palm oil is the main cause of global deforestation.
Actually, it is not accurate and against the real facts of palm oil as have been also reflected in the official data reported by global institutions, such as FAO, European Commission and the Global Forest Watch.
As a matter of fact, oil palm is not the main cause of global deforestation.
Global deforestation has occurred long before oil palm cultivation
The FAO Global Forest Resources Assessment (FRA) report shows that the peak of global forest loss occurred long before modern cultivation and expansion of oil palm plantations.¹
During the period of 1990–2000, the world lost approximately 17.6 million hectares of forest per year.¹ In fact, historically, large-scale deforestation has occurred in North America and Europe since the 17th century for agricultural and industrial development.²
It means that global deforestation is a long-term and transcontinental phenomenon, and it is not due to the developments of oil palm plantations in Southeast Asian region.
Overall Agriculture and husbandry as biggest cause
The data from the FAO has confirmed that nearly 90% of global deforestation is caused by agricultural expansion³.
However, it is important to note that the most dominant cause is cattle ranching and large-scale cultivation of food crops like soybeans³ ⁴.
Deforestation data based on a European Commission study (1990–2008)⁴ is as follows:
If palm oil is accused as the main cause of global deforestation, then logically and statistically, the livestock sector has a far greater impact. GAPKI
--------
Indonesian Communities Protect Millions of Hectares of Rainforest
With WRI support, 22 local agencies used data-based monitoring tools to protect 2.2 million hectares of rainforest in Aceh, Riau and North Kalimantan provinces.
The Challenge
Aceh, Riau and North Kalimantan provinces hold some of Indonesia’s most vital rainforests. Yet they remain hotspots for deforestation driven by illegal logging and clearing for palm oil and other agricultural commodities.
Historically, forest monitoring in these regions has been fragmented and ineffective. Government agencies, local communities and civil society organizations operate in silos and rely on infrequent foot patrols that can be slow in preventing illegal clearing. Frontline forest defenders — particularly Indigenous Peoples and park rangers — lack both timely information and the authority to respond to deforestation. This limits their ability to protect the ecosystems that sustain their lives and livelihoods.
WRI’s Role
WRI established district-level forest monitoring teams by bringing together local governments, civil society organizations and communities in Aceh, Riau and North Kalimantan.
We provided intensive training on Global Forest Watch and other digital tools. These technologies, which use satellite monitoring and other data to spot tree loss in near-real time, help everyone from government agents to forest communities detect and halt deforestation. We also supported the issuance of formal government decrees in Bulungan, North Kalimantan and Aceh Tamiang, Aceh that ensured forest monitoring would continue after the project ended.
The Outcome
As of 2024, 22 local agencies and institutions are protecting 2.2 million hectares of forest across six districts in Aceh, Riau and North Kalimantan through strong monitoring systems. These systems include deforestation alerts, processes to verify tree loss, and response protocols co-developed by WRI and local stakeholders. The transition from reactive to proactive forest monitoring has produced measurable benefits. Forthcoming WRI analysis shows that Aceh saw a 16% reduction in the likelihood of deforestation, with a 19.9% reduction specifically within the Aceh Forest Estate.
The initiative also strengthened local governance. In August 2025, the district of Bulungan in North Kalimantan received a national award for integrating ecology into its budgeting and governance process. This improvement was directly supported by WRI’s forest-monitoring work.
Moreover, the Criminal Investigation Agency of the Indonesian National Police (Bareskrim) requested WRI’s support in deforestation analysis related to the flood disasters that affected parts of Aceh, North Sumatra and West Sumatra last year. Findings are supporting the agency’s ongoing investigation. WRI
--------
Aceh Jaya Begins Oil Palm Development for Former GAM Combatants
PALMOILMAGAZINE, ACEH JAYA – The Government of Aceh Jaya Regency has officially launched the first planting of oil palm on 10 hectares of land allocated to former members of the Free Aceh Movement (GAM) under the Sagoe Pasie Raya structure.
The initiative is designed to promote economic self-reliance and generate employment opportunities for former combatants in the region. The inaugural planting ceremony was led directly by Aceh Jaya Regent Safwandi, accompanied by Deputy Regent Muslem D, and attended by representatives of the Aceh Transitional Committee (KPA) Sagoe Pasie Raya along with other stakeholders.
Safwandi stated that the oil palm development program aligns with the SALEM (Safwandi–Muslem) administration’s commitment to improving community welfare through job creation in the plantation sector.
“The regional government continues to encourage economic independence through oil palm plantations. We hope this estate will help KPA support its operational needs for future activities,” Safwandi stated, as quoted by Palmoilmagazine.com from the official release of the Aceh Jaya Regency Government on Friday (27/2/2026).
He emphasized that this marks the first oil palm planting program initiated by the Aceh Jaya administration specifically for KPA members in Sagoe Pasie Raya.
“This is the first time the Aceh Jaya government has facilitated oil palm planting for KPA in Sagoe Pasie Raya. We hope other sagoe areas in Aceh Jaya can soon follow by opening similar land,” he added.
According to Safwandi, the development of the plantation serves as an initial step toward creating sustainable employment opportunities for former combatants in the area.
Meanwhile, Chairman of KPA Sagoe Pasie Raya, Sulaiman Efendi, expressed appreciation for the collaboration and support from various parties that enabled the 10-hectare project to materialize.
“Today we are able to carry out the first planting of oil palm for former combatants of Sagoe Pasie Raya, directly led by the Regent and Deputy Regent,” he said.
The program is expected to become a foundation for strengthening the economic resilience of former combatants while supporting the sustainable growth of the oil palm plantation sector in Aceh Jaya. Palm oil magazine
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Sentencing by the Indonesian Court of an executive of Wilmar’s Indonesian Unit
Further to the announcement dated 14 April 2025 issued by Wilmar International Limited (“Wilmar” or the
“Company”) regarding the arrest by the Indonesian authorities of certain judges who had acquitted three
palm oil companies, including subsidiaries of Wilmar, of charges relating to the obtaining of export permits
wrongfully, the Company wishes to announce that the Central Jakarta District Court has sentenced
Muhammad Syafei, the Head of Social Security Legal of Wilmar’s Indonesian Unit, today to six (6) years
of imprisonment and a fine of IDR 300 million (approximately S$22,570) for the charge of bribery of the
said judges. The Public Prosecutors had earlier asked for a sentence of fifteen (15) years and a fine of
IDR 600 million (approximately S$45,360) for bribery and money laundering charges but the Court
dismissed the money laundering charge against Muhammad Syafei.
Issued by
WILMAR INTERNATIONAL LIMITED
3 March 2026
EU-India Trade Pact Could Lower Barriers for Greek Olive Oil Exports
A landmark free trade agreement between the EU and India is expected to open a new route for Greek olive oil to the East by eliminating tariffs on exports, potentially boosting the country’s presence in India’s market. The agreement aims to reduce costs for European producers and exporters, with projections showing rapid growth in India’s olive oil market in the coming years, but Greek industry observers warn of competition from established Spanish and Italian exporters.
A new route for Greek olive oil to the East could open after a landmark free trade agreement was struck between the European Union and India in January.
Often termed “the mother of all deals,” the EU-India pact aims to eliminate tariffs on around 99 percent of imports from India to the bloc and remove or reduce tariffs on 96 percent of European products exported to India.
According to the European Commission, the agreement is expected to save EU producers and exporters around €4 billion annually in duties paid on exports to the world’s most populous country.
For European olive oil, the existing import levy of up to 45 percent to India would be phased out over five years after the trade agreement formally enters into force, potentially narrowing the price gap that has limited demand.
Indians traditionally use a range of edible oils, including sunflower, coconut, safflower and palm oil. Olive oil — also known as jaitun oil in India — has emerged as a healthier alternative, particularly among the country’s middle class.
Market analysts have projected that India’s olive oil market will grow rapidly in the coming years, reaching $253 million by 2030 from $89 million in 2023. Olive Oil Times
--------
Global Deforestation Reports: How Much Caused By Palm Oil?
There have been many wrong narratives fabricated by certain groups in their global campaigns against palm oil. Prominent among them is the issue that palm oil is the main cause of global deforestation.
Actually, it is not accurate and against the real facts of palm oil as have been also reflected in the official data reported by global institutions, such as FAO, European Commission and the Global Forest Watch.
As a matter of fact, oil palm is not the main cause of global deforestation.
Global deforestation has occurred long before oil palm cultivation
The FAO Global Forest Resources Assessment (FRA) report shows that the peak of global forest loss occurred long before modern cultivation and expansion of oil palm plantations.¹
During the period of 1990–2000, the world lost approximately 17.6 million hectares of forest per year.¹ In fact, historically, large-scale deforestation has occurred in North America and Europe since the 17th century for agricultural and industrial development.²
It means that global deforestation is a long-term and transcontinental phenomenon, and it is not due to the developments of oil palm plantations in Southeast Asian region.
Overall Agriculture and husbandry as biggest cause
The data from the FAO has confirmed that nearly 90% of global deforestation is caused by agricultural expansion³.
However, it is important to note that the most dominant cause is cattle ranching and large-scale cultivation of food crops like soybeans³ ⁴.
Deforestation data based on a European Commission study (1990–2008)⁴ is as follows:
- Cattle farming: ±24%
- Cereals: ±8%
- Soybeans: ±6%
- Palm oil: only ±2–5%
If palm oil is accused as the main cause of global deforestation, then logically and statistically, the livestock sector has a far greater impact. GAPKI
--------
Indonesian Communities Protect Millions of Hectares of Rainforest
With WRI support, 22 local agencies used data-based monitoring tools to protect 2.2 million hectares of rainforest in Aceh, Riau and North Kalimantan provinces.
The Challenge
Aceh, Riau and North Kalimantan provinces hold some of Indonesia’s most vital rainforests. Yet they remain hotspots for deforestation driven by illegal logging and clearing for palm oil and other agricultural commodities.
Historically, forest monitoring in these regions has been fragmented and ineffective. Government agencies, local communities and civil society organizations operate in silos and rely on infrequent foot patrols that can be slow in preventing illegal clearing. Frontline forest defenders — particularly Indigenous Peoples and park rangers — lack both timely information and the authority to respond to deforestation. This limits their ability to protect the ecosystems that sustain their lives and livelihoods.
WRI’s Role
WRI established district-level forest monitoring teams by bringing together local governments, civil society organizations and communities in Aceh, Riau and North Kalimantan.
We provided intensive training on Global Forest Watch and other digital tools. These technologies, which use satellite monitoring and other data to spot tree loss in near-real time, help everyone from government agents to forest communities detect and halt deforestation. We also supported the issuance of formal government decrees in Bulungan, North Kalimantan and Aceh Tamiang, Aceh that ensured forest monitoring would continue after the project ended.
The Outcome
As of 2024, 22 local agencies and institutions are protecting 2.2 million hectares of forest across six districts in Aceh, Riau and North Kalimantan through strong monitoring systems. These systems include deforestation alerts, processes to verify tree loss, and response protocols co-developed by WRI and local stakeholders. The transition from reactive to proactive forest monitoring has produced measurable benefits. Forthcoming WRI analysis shows that Aceh saw a 16% reduction in the likelihood of deforestation, with a 19.9% reduction specifically within the Aceh Forest Estate.
The initiative also strengthened local governance. In August 2025, the district of Bulungan in North Kalimantan received a national award for integrating ecology into its budgeting and governance process. This improvement was directly supported by WRI’s forest-monitoring work.
Moreover, the Criminal Investigation Agency of the Indonesian National Police (Bareskrim) requested WRI’s support in deforestation analysis related to the flood disasters that affected parts of Aceh, North Sumatra and West Sumatra last year. Findings are supporting the agency’s ongoing investigation. WRI
--------
Aceh Jaya Begins Oil Palm Development for Former GAM Combatants
PALMOILMAGAZINE, ACEH JAYA – The Government of Aceh Jaya Regency has officially launched the first planting of oil palm on 10 hectares of land allocated to former members of the Free Aceh Movement (GAM) under the Sagoe Pasie Raya structure.
The initiative is designed to promote economic self-reliance and generate employment opportunities for former combatants in the region. The inaugural planting ceremony was led directly by Aceh Jaya Regent Safwandi, accompanied by Deputy Regent Muslem D, and attended by representatives of the Aceh Transitional Committee (KPA) Sagoe Pasie Raya along with other stakeholders.
Safwandi stated that the oil palm development program aligns with the SALEM (Safwandi–Muslem) administration’s commitment to improving community welfare through job creation in the plantation sector.
“The regional government continues to encourage economic independence through oil palm plantations. We hope this estate will help KPA support its operational needs for future activities,” Safwandi stated, as quoted by Palmoilmagazine.com from the official release of the Aceh Jaya Regency Government on Friday (27/2/2026).
He emphasized that this marks the first oil palm planting program initiated by the Aceh Jaya administration specifically for KPA members in Sagoe Pasie Raya.
“This is the first time the Aceh Jaya government has facilitated oil palm planting for KPA in Sagoe Pasie Raya. We hope other sagoe areas in Aceh Jaya can soon follow by opening similar land,” he added.
According to Safwandi, the development of the plantation serves as an initial step toward creating sustainable employment opportunities for former combatants in the area.
Meanwhile, Chairman of KPA Sagoe Pasie Raya, Sulaiman Efendi, expressed appreciation for the collaboration and support from various parties that enabled the 10-hectare project to materialize.
“Today we are able to carry out the first planting of oil palm for former combatants of Sagoe Pasie Raya, directly led by the Regent and Deputy Regent,” he said.
The program is expected to become a foundation for strengthening the economic resilience of former combatants while supporting the sustainable growth of the oil palm plantation sector in Aceh Jaya. Palm oil magazine
--------
Sentencing by the Indonesian Court of an executive of Wilmar’s Indonesian Unit
Further to the announcement dated 14 April 2025 issued by Wilmar International Limited (“Wilmar” or the
“Company”) regarding the arrest by the Indonesian authorities of certain judges who had acquitted three
palm oil companies, including subsidiaries of Wilmar, of charges relating to the obtaining of export permits
wrongfully, the Company wishes to announce that the Central Jakarta District Court has sentenced
Muhammad Syafei, the Head of Social Security Legal of Wilmar’s Indonesian Unit, today to six (6) years
of imprisonment and a fine of IDR 300 million (approximately S$22,570) for the charge of bribery of the
said judges. The Public Prosecutors had earlier asked for a sentence of fifteen (15) years and a fine of
IDR 600 million (approximately S$45,360) for bribery and money laundering charges but the Court
dismissed the money laundering charge against Muhammad Syafei.
Issued by
WILMAR INTERNATIONAL LIMITED
3 March 2026
March 03, 2026
Attorney General’s Office Raids Dozens of Locations in CPO Export Corruption Probe
Jakarta. The Attorney General’s Office has searched dozens of locations in connection with a corruption investigation into crude palm oil (CPO) and its derivative product exports between 2022 and 2024, officials said Monday.
“We have carried out searches at dozens of sites in Riau and Medan (North Sumatra),” said Syarief Sulaeman Nahdi, investigations director at the agency’s special crimes unit, in Jakarta.
The raids targeted offices, residences, and palm oil processing facilities. Investigators are now moving to seize assets allegedly linked to private-sector suspects.
“There are several plots of land and palm oil processing plants currently in the process of being seized. We are also confiscating heavy equipment, vehicles, and other assets,” Syarief said.
The case centers on alleged manipulation of export classifications to evade government controls imposed on CPO, a strategic national commodity.
The government implemented export restrictions and controls on CPO from 2020 to 2024 to maintain domestic cooking oil supply and price stability. The measures included a domestic market obligation (DMO), export approvals, export duties, and palm oil levies.
According to investigators, exporters allegedly misclassified high-acid CPO as palm oil mill effluent (POME), using a different Harmonized System (HS) code intended for residue or waste products.
“The investigators found deviations in the form of engineered export commodity classifications, where high-acid CPO was deliberately claimed as POME using a different HS code,” Syarief said at a previous press conference in February.
He said the scheme was designed to circumvent export controls so that what was essentially CPO could be shipped abroad as if it were not subject to the same obligations and levies.
Auditors are still calculating the total state losses, but preliminary estimates suggest losses of between Rp 10 trillion ($592 million) and Rp 14 trillion in lost state revenue. The figure does not yet include potential broader economic losses, which are also being assessed.
A total of 11 suspects have been named in the case, including three public officials and eight private-sector executives.
The public officials include LHB, a subdirector for non-food plantation industry products at the Industry Ministry; FJR, a technical director at the Directorate General of Customs and Excise who currently heads the Bali, West Nusa Tenggara and East Nusa Tenggara customs offices; and MZ, a civil servant at the Pekanbaru Customs Office.
The private-sector suspects include executives from several palm oil companies, identified by their initials as ES, ERW, FLX, RND, TNY, VNR, RBN and YSR.
The Attorney General’s Office said the investigation is ongoing and further asset seizures are possible as authorities continue to trace financial flows linked to the alleged export scheme. Jakarta Globe
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Indonesia has Seized 5 Million Hectares of Palm Oil Plantations, Task Force Says
PALM OIL - JAKARTA, March 2 - Indonesia has seized 5 million hectares of palm oil plantations and industrial forest concessions that have been accused of legal violations, with more than 100 companies fined, a spokesperson with the country's forestry task force said on Monday. Last year, the forestry task force, which comprises the military, the police and state prosecutors, took over 4.1 million hectares said to be operating illegally in forest areas, targeting major palm oil companies and smallholder farmers alike.
The task force has so far collected 7.39 trillion rupiah ($438.45 million) from 51 palm oil companies, task force spokesperson Barita Simanjuntak told a press conference. Another 20 companies have already agreed to pay a total 2.78 trillion rupiah in fines, while 34 others have filed objections. The financial penalties imposed on other firms were still being calculated. Some of the firms are contesting the fines because they say authorities have overestimated the amount of land involved, while others simply don't have the means to pay, said Simanjuntak. Others claim that their permits are in order, but they have been found to overlap with other concessions, he said.Indonesian government agencies have often issued different permits for the same plot of land
"Of course we will make checks," Simanjuntak said. Attorney General Sanitiar Burhanuddin said in December the government could collect $6.5 billion in fines from palm oil companies implicated in last year's seizure. The government has handed over 1.7 million hectares of the seized plantations to state firm Agrinas Palma Nusantara, he added, while more than 770,000 hectares have been transferred to the environment and forestry ministries. Kontan
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Ghana targets $200m palm oil import reduction through expanded China Agricultural partnerships
Ghana is intensifying efforts to reduce its palm oil import bill by an estimated $200 million each year as it strengthens partnerships with Chinese investors under a renewed agricultural transformation drive.
Speaking at the Chinese Lunar New Year Gala 2026 in Accra, Minister for Food and Agriculture Eric Opoku said agriculture now occupies a central place in President John Dramani Mahama’s economic reset agenda. He explained that the 2026 Budget identifies the sector as a key engine for industrialisation, export expansion, job creation and foreign exchange stability.
A major pillar of the strategy is the Integrated Oil Palm Development Programme, covering 2026 to 2032, which aims to establish 100,000 hectares of oil palm plantations and create up to 250,000 jobs. The programme is expected to increase domestic output while significantly cutting the country’s dependence on imported palm oil.
The Minister also outlined other interventions planned for the year, including the distribution of 31,000 metric tonnes of rice seed, 4,388 metric tonnes of maize seed, 2,791 metric tonnes of soybean seed and 272,000 metric tonnes of fertiliser to farmers across the country. In addition, government is expanding irrigation facilities and constructing dams in northern Ghana to reduce reliance on rain-fed agriculture.
Mr Opoku disclosed that Ghana is engaging Chinese firms for joint ventures in irrigation development, farm mechanisation, agro processing and machinery assembly. He emphasised that the country is seeking strategic production partnerships rather than donor support.
“We are not seeking aid. We are building joint ventures,” he said, urging investors to transition “from trade to production.”
With organised land banks and access to the more than 400 million strong ECOWAS market, Ghana is positioning itself as a regional centre for agro industrial expansion and sustained investment in West Africa. Modern Ghana
Attorney General’s Office Raids Dozens of Locations in CPO Export Corruption Probe
Jakarta. The Attorney General’s Office has searched dozens of locations in connection with a corruption investigation into crude palm oil (CPO) and its derivative product exports between 2022 and 2024, officials said Monday.
“We have carried out searches at dozens of sites in Riau and Medan (North Sumatra),” said Syarief Sulaeman Nahdi, investigations director at the agency’s special crimes unit, in Jakarta.
The raids targeted offices, residences, and palm oil processing facilities. Investigators are now moving to seize assets allegedly linked to private-sector suspects.
“There are several plots of land and palm oil processing plants currently in the process of being seized. We are also confiscating heavy equipment, vehicles, and other assets,” Syarief said.
The case centers on alleged manipulation of export classifications to evade government controls imposed on CPO, a strategic national commodity.
The government implemented export restrictions and controls on CPO from 2020 to 2024 to maintain domestic cooking oil supply and price stability. The measures included a domestic market obligation (DMO), export approvals, export duties, and palm oil levies.
According to investigators, exporters allegedly misclassified high-acid CPO as palm oil mill effluent (POME), using a different Harmonized System (HS) code intended for residue or waste products.
“The investigators found deviations in the form of engineered export commodity classifications, where high-acid CPO was deliberately claimed as POME using a different HS code,” Syarief said at a previous press conference in February.
He said the scheme was designed to circumvent export controls so that what was essentially CPO could be shipped abroad as if it were not subject to the same obligations and levies.
Auditors are still calculating the total state losses, but preliminary estimates suggest losses of between Rp 10 trillion ($592 million) and Rp 14 trillion in lost state revenue. The figure does not yet include potential broader economic losses, which are also being assessed.
A total of 11 suspects have been named in the case, including three public officials and eight private-sector executives.
The public officials include LHB, a subdirector for non-food plantation industry products at the Industry Ministry; FJR, a technical director at the Directorate General of Customs and Excise who currently heads the Bali, West Nusa Tenggara and East Nusa Tenggara customs offices; and MZ, a civil servant at the Pekanbaru Customs Office.
The private-sector suspects include executives from several palm oil companies, identified by their initials as ES, ERW, FLX, RND, TNY, VNR, RBN and YSR.
The Attorney General’s Office said the investigation is ongoing and further asset seizures are possible as authorities continue to trace financial flows linked to the alleged export scheme. Jakarta Globe
--------
Indonesia has Seized 5 Million Hectares of Palm Oil Plantations, Task Force Says
PALM OIL - JAKARTA, March 2 - Indonesia has seized 5 million hectares of palm oil plantations and industrial forest concessions that have been accused of legal violations, with more than 100 companies fined, a spokesperson with the country's forestry task force said on Monday. Last year, the forestry task force, which comprises the military, the police and state prosecutors, took over 4.1 million hectares said to be operating illegally in forest areas, targeting major palm oil companies and smallholder farmers alike.
The task force has so far collected 7.39 trillion rupiah ($438.45 million) from 51 palm oil companies, task force spokesperson Barita Simanjuntak told a press conference. Another 20 companies have already agreed to pay a total 2.78 trillion rupiah in fines, while 34 others have filed objections. The financial penalties imposed on other firms were still being calculated. Some of the firms are contesting the fines because they say authorities have overestimated the amount of land involved, while others simply don't have the means to pay, said Simanjuntak. Others claim that their permits are in order, but they have been found to overlap with other concessions, he said.Indonesian government agencies have often issued different permits for the same plot of land
"Of course we will make checks," Simanjuntak said. Attorney General Sanitiar Burhanuddin said in December the government could collect $6.5 billion in fines from palm oil companies implicated in last year's seizure. The government has handed over 1.7 million hectares of the seized plantations to state firm Agrinas Palma Nusantara, he added, while more than 770,000 hectares have been transferred to the environment and forestry ministries. Kontan
--------
Ghana targets $200m palm oil import reduction through expanded China Agricultural partnerships
Ghana is intensifying efforts to reduce its palm oil import bill by an estimated $200 million each year as it strengthens partnerships with Chinese investors under a renewed agricultural transformation drive.
Speaking at the Chinese Lunar New Year Gala 2026 in Accra, Minister for Food and Agriculture Eric Opoku said agriculture now occupies a central place in President John Dramani Mahama’s economic reset agenda. He explained that the 2026 Budget identifies the sector as a key engine for industrialisation, export expansion, job creation and foreign exchange stability.
A major pillar of the strategy is the Integrated Oil Palm Development Programme, covering 2026 to 2032, which aims to establish 100,000 hectares of oil palm plantations and create up to 250,000 jobs. The programme is expected to increase domestic output while significantly cutting the country’s dependence on imported palm oil.
The Minister also outlined other interventions planned for the year, including the distribution of 31,000 metric tonnes of rice seed, 4,388 metric tonnes of maize seed, 2,791 metric tonnes of soybean seed and 272,000 metric tonnes of fertiliser to farmers across the country. In addition, government is expanding irrigation facilities and constructing dams in northern Ghana to reduce reliance on rain-fed agriculture.
Mr Opoku disclosed that Ghana is engaging Chinese firms for joint ventures in irrigation development, farm mechanisation, agro processing and machinery assembly. He emphasised that the country is seeking strategic production partnerships rather than donor support.
“We are not seeking aid. We are building joint ventures,” he said, urging investors to transition “from trade to production.”
With organised land banks and access to the more than 400 million strong ECOWAS market, Ghana is positioning itself as a regional centre for agro industrial expansion and sustained investment in West Africa. Modern Ghana
|
|
|
March 02, 2026
Malaysia’s palm oil exports largely unaffected by new US tariffs, minister tells Dewan Negara
KUALA LUMPUR, March 2 — The latest tariffs imposed by the United States (US) only have a minimal impact on Malaysia’s palm oil exports, according to Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad.
She said the US is not a major market for Malaysian palm oil, with exports to the country accounting for only 1.1 per cent unlike key markets such as India, Kenya, and China.
“In terms of impact, the effect is still manageable and does not significantly affect export performance, with palm oil usage in the US depending on industry requirements,” she said in response to a supplementary question from Senator Michael Mujah Lihan during a question-and-answer session in the Dewan Negara.
The senator wanted to know about the direct impact of the latest tariffs announced by the US on Malaysian rubber and palm oil.
Noraini said there is stable demand from industries in the US, particularly in the bakery and cosmetics sectors requiring palm oil, which is difficult to be substituted with other vegetable oils.
As such, she said, the tariff decision has had a relatively minimal effect on the country’s palm oil export performance.
As for rubber, the minister said the actual impact will depend on the final tariff rate implemented as well as the product scope involved.
“As a mitigation measure, the government is working to intensify efforts to diversify export markets to other regions, and we are trying to reduce dependence on a single market,” she said. -- Bernama/ MalayMail
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Thailand Implements Immediate Ban on Oil Exports Amid Hormuz Strait Closure
Thailand has announced an immediate ban on oil exports in response to the closure of the Hormuz Strait, according to Jin10. The government has activated the 'Energy Emergency Monitoring Center' to manage the crisis and ensure a 60-day strategic fuel reserve. In an effort to reduce reliance on imported fuel, Thailand has ordered coal and hydroelectric power plants to operate at maximum capacity and increase domestic natural gas production. Additionally, the government plans to use the national fuel fund to subsidize fuel prices, aiming to shield citizens from rising energy costs. Binance
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Ghana to reduce palm import by $200 million with new China alliance
Ghana is intensifying efforts to cut its palm oil import bill by about $200 million annually, as it courts Chinese investors to support an ambitious agricultural transformation drive
Speaking at the Chinese Lunar New Year Gala 2026 in Accra, Agriculture Minister Eric Opoku said farming has become central to President John Dramani Mahama's economic reset agenda.
He noted that the 2026 budget positions agriculture as a catalyst for industrialisation, export expansion, job creation, and foreign exchange stability.
As part of the push, the government is distributing 31,000 metric tonnes of rice seed, 4,388 metric tonnes of maize seed, 2,791 metric tonnes of soybean seed, and 272,000 metric tonnes of fertiliser this year. Africa Business Insider
Malaysia’s palm oil exports largely unaffected by new US tariffs, minister tells Dewan Negara
KUALA LUMPUR, March 2 — The latest tariffs imposed by the United States (US) only have a minimal impact on Malaysia’s palm oil exports, according to Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad.
She said the US is not a major market for Malaysian palm oil, with exports to the country accounting for only 1.1 per cent unlike key markets such as India, Kenya, and China.
“In terms of impact, the effect is still manageable and does not significantly affect export performance, with palm oil usage in the US depending on industry requirements,” she said in response to a supplementary question from Senator Michael Mujah Lihan during a question-and-answer session in the Dewan Negara.
The senator wanted to know about the direct impact of the latest tariffs announced by the US on Malaysian rubber and palm oil.
Noraini said there is stable demand from industries in the US, particularly in the bakery and cosmetics sectors requiring palm oil, which is difficult to be substituted with other vegetable oils.
As such, she said, the tariff decision has had a relatively minimal effect on the country’s palm oil export performance.
As for rubber, the minister said the actual impact will depend on the final tariff rate implemented as well as the product scope involved.
“As a mitigation measure, the government is working to intensify efforts to diversify export markets to other regions, and we are trying to reduce dependence on a single market,” she said. -- Bernama/ MalayMail
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Thailand Implements Immediate Ban on Oil Exports Amid Hormuz Strait Closure
Thailand has announced an immediate ban on oil exports in response to the closure of the Hormuz Strait, according to Jin10. The government has activated the 'Energy Emergency Monitoring Center' to manage the crisis and ensure a 60-day strategic fuel reserve. In an effort to reduce reliance on imported fuel, Thailand has ordered coal and hydroelectric power plants to operate at maximum capacity and increase domestic natural gas production. Additionally, the government plans to use the national fuel fund to subsidize fuel prices, aiming to shield citizens from rising energy costs. Binance
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Ghana to reduce palm import by $200 million with new China alliance
Ghana is intensifying efforts to cut its palm oil import bill by about $200 million annually, as it courts Chinese investors to support an ambitious agricultural transformation drive
- Ghana is accelerating its agricultural transformation, inviting Chinese investors to support joint ventures across the sector.
- The Integrated Oil Palm Development Programme aims to develop 100,000 hectares and create 250,000 jobs.
- Government initiatives include seed distribution, irrigation expansion, and support for mechanisation.
- With access to the 400 million-strong ECOWAS market, Ghana is positioning itself as a regional hub for agriculture and industry.
Speaking at the Chinese Lunar New Year Gala 2026 in Accra, Agriculture Minister Eric Opoku said farming has become central to President John Dramani Mahama's economic reset agenda.
He noted that the 2026 budget positions agriculture as a catalyst for industrialisation, export expansion, job creation, and foreign exchange stability.
As part of the push, the government is distributing 31,000 metric tonnes of rice seed, 4,388 metric tonnes of maize seed, 2,791 metric tonnes of soybean seed, and 272,000 metric tonnes of fertiliser this year. Africa Business Insider
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March 01, 2026
AI in oil palm - the small percentage shift that can save India billions
Regenerative agriculture and circular processing into a unified strategy can transform oil palm into a model of productivity, sustainability and farmer prosperity
India’s edible oil import bill remains one of the most persistent structural pressures on its agricultural trade balance. Policy initiatives have rightly focused on expanding oil palm acreage under national missions. But the next breakthrough will not come from hectares alone. It will come from precision.
In oil palm economics, a fraction of a percentage point can change everything. That fraction is called Oil Extraction Rate (OER) — the percentage of oil recovered from Fresh Fruit Bunches (FFB). Artificial Intelligence (AI) may be the most powerful lever India has to improve it.
For policymakers, processors, agri-tech developers and state governments, the opportunity is immediate- boost OER through AI-driven precision harvesting and circular processing systems and unlock higher farmer incomes without expanding land.
The Hindu Businessline
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Indonesia Says US Export Tariff Cut to 15% After Court Ruling
Jakarta. Indonesia said on Friday that tariffs imposed by the United States on its exports will stand at 15%, not 19% as previously agreed in bilateral trade talks in Washington.
Coordinating Economic Affairs Minister Airlangga Hartarto said the adjustment follows a decision by the US Supreme Court that invalidated the reciprocal tariff policy introduced by President Donald Trump.
“As a result, the applicable rate is the global tariff of 15%,” Airlangga told reporters in Jakarta.
During President Prabowo Subianto’s visit to Washington last week, Indonesia and the US had agreed on a 19% tariff — down from an earlier proposed 32% — before the Supreme Court ruling altered the legal basis of the policy.
Airlangga stressed that the broader trade agreement remains valid, subject to parliamentary ratification, despite the revised tariff level.
Under the agreement, Indonesia secured 0% tariff access for 1,819 product categories entering the US market. These include palm oil, coffee, cocoa, spices, rubber, electronic components — including semiconductors — and aircraft parts.
Indonesia’s textile and apparel sector will also benefit from 0% tariffs, although the measure will be implemented under a Tariff Rate Quota (TRQ) mechanism, meaning duty-free access applies up to a specified volume.
The clarification provides some certainty for exporters after days of confusion following the US court ruling, which reshaped the tariff framework underpinning the bilateral deal. Jakarta Globe
AI in oil palm - the small percentage shift that can save India billions
Regenerative agriculture and circular processing into a unified strategy can transform oil palm into a model of productivity, sustainability and farmer prosperity
India’s edible oil import bill remains one of the most persistent structural pressures on its agricultural trade balance. Policy initiatives have rightly focused on expanding oil palm acreage under national missions. But the next breakthrough will not come from hectares alone. It will come from precision.
In oil palm economics, a fraction of a percentage point can change everything. That fraction is called Oil Extraction Rate (OER) — the percentage of oil recovered from Fresh Fruit Bunches (FFB). Artificial Intelligence (AI) may be the most powerful lever India has to improve it.
For policymakers, processors, agri-tech developers and state governments, the opportunity is immediate- boost OER through AI-driven precision harvesting and circular processing systems and unlock higher farmer incomes without expanding land.
The Hindu Businessline
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Indonesia Says US Export Tariff Cut to 15% After Court Ruling
Jakarta. Indonesia said on Friday that tariffs imposed by the United States on its exports will stand at 15%, not 19% as previously agreed in bilateral trade talks in Washington.
Coordinating Economic Affairs Minister Airlangga Hartarto said the adjustment follows a decision by the US Supreme Court that invalidated the reciprocal tariff policy introduced by President Donald Trump.
“As a result, the applicable rate is the global tariff of 15%,” Airlangga told reporters in Jakarta.
During President Prabowo Subianto’s visit to Washington last week, Indonesia and the US had agreed on a 19% tariff — down from an earlier proposed 32% — before the Supreme Court ruling altered the legal basis of the policy.
Airlangga stressed that the broader trade agreement remains valid, subject to parliamentary ratification, despite the revised tariff level.
Under the agreement, Indonesia secured 0% tariff access for 1,819 product categories entering the US market. These include palm oil, coffee, cocoa, spices, rubber, electronic components — including semiconductors — and aircraft parts.
Indonesia’s textile and apparel sector will also benefit from 0% tariffs, although the measure will be implemented under a Tariff Rate Quota (TRQ) mechanism, meaning duty-free access applies up to a specified volume.
The clarification provides some certainty for exporters after days of confusion following the US court ruling, which reshaped the tariff framework underpinning the bilateral deal. Jakarta Globe
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Palm oil news. March 2026 CSPO Watch