Palm oil news October 2025
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October 31, 2025
Indonesia's 40% Palm Oil Smallholders Face Traceability and Certification Gaps as EUDR Compliance Looms
Jakarta, 30 October 2025 - More than 40% of Indonesia's oil palm area is cultivated by independent smallholders, yet most remain outside formal traceability and certification systems. (Mongabay, 2023). This disconnect limits their access to sustainable markets and exposes the entire supply chain to compliance risks. As global importers tighten sustainability standards through measures such as the EU Deforestation Regulation (EUDR) and environmental scrutiny intensifies, Indonesia faces a pivotal task: integrating millions of smallholders into transparent, traceable, and inclusive supply chains that can sustain its global competitiveness. Digital traceability and certification readiness are therefore becoming essential, particularly as discussions about a potential EUDR deadline delay continue, although no official postponement of the December 2025 timeline has been confirmed (Koltiva, 2025).
Globally, smallholder producers managing less than 50 hectares of oil palm, produce up to 30% of crude palm oil and manage nearly one-third of total oil palm area (Chain Action Research, 2021; RSPO, 2022). Yet in Indonesia, only 7% of certified mills currently source from independent smallholders, and fewer than 1% of those farmers hold RSPO or ISPO certification. In Riau Province, one of the top palm oil-producing regions in Indonesia, independent plantations span 1.61 million hectares, but only 0.48% (7,798 ha) are RSPO-certified which is a clear indicator of the inclusion gap.
This data gap represents more than a certification challenge and exposes a systemic issue of visibility and inclusion. Unregistered producers remain excluded from both sustainability programs and potential downstream opportunities, while companies face compliance risks and market barriers.
Digital Traceability: From Compliance to Opportunity
Legality and traceability have become non-negotiable for access to premium export markets. Under the EUDR and similar frameworks, producers must demonstrate plot-level geolocation, verified land legality, and full traceability to plantation (TTP). For Indonesia's dealer-heavy supply chains, this demands verified producer registration, transparent transactions, and an unbroken chain of custody from farm to mill. "We've seen how digital tools and collaborative models can transform compliance from a burden into an opportunity. But lasting impact can only happen when all stakeholders work together, ensuring no smallholder is left behind in this transition to sustainable supply chains," said Jusupta Tarigan, Senior Program Manager at Koltiva.
Koltiva, a Swiss-Indonesian AgriTech company, has developed the KoltiTrace, a digital traceability platform that maps producers, monitors farm-level data, and verifies transactions in real time. In Indonesia, Koltiva's traceability system has empowered more than 2,600 businesses across the palm oil supply chain and registered over 178,000 producers, enabling greater transparency and inclusivity at every stage of production. Building on this impact, Koltiva has also collaborated with the United Nations Development Programme (UNDP), the Swiss State Secretariat for Economic Affairs (SECO), Swisscontact, and local governments to strengthen producer empowerment through data-driven decision-making and inclusive supply chain management, as showcased in the Multi-Stakeholder Forum (MSF) Dashboard in Aceh Singkil (InfoSawit, 2025). OpenPR
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Carson, Bukit Darah units face impact from Indonesia’s new palm oil land laws
Carson Cumberbatch PLC and Bukit Darah PLC have said subsidiaries under their Singapore-based arm, Goodhope Asia Holdings Ltd., have been affected by Indonesia’s new regulations on forest area management, with around 12,000 hectares of plantation land, both planted and unplanted, reclassified and transferred to a State-owned enterprise.
The companies said discussions are underway with authorities to determine future management arrangements, and no penalties have been imposed so far.
Issuing a joint statement, the companies said: “Changes relating to spatial planning and forest area management laws in the recent past have introduced additional requirements for plantation companies in Indonesia.
In compliance, relevant plantation companies of Goodhope Asia Holdings Ltd., a subsidiary of Carson Cumberbatch PLC and Bukit Darah PLC, have submitted necessary applications to the relevant authorities.
However, during the year, the Government of Indonesia introduced further new regulations establishing a Presidential Task Force for the repossession of lands categorised as forest status. As per publicly available data as of 7 October 2025, the new regulations have affected 587 companies in the Palm Oil Plantation Sector, covering approximately 1.5 million hectares in Indonesia.
Based on these new regulations, approximately 5,877 hectares of planted area and 6,275 hectares of unplanted area pertaining to five subsidiaries of Goodhope Asia Holdings Ltd., are impacted.
The Task Force has subsequently transferred the repossessed lands to a newly established State-owned enterprise, PT Agrinas Palma Nusantara (PT ASN). PT ASN is presently engaged in discussions with the Group Companies of Goodhope Asia Holdings Ltd., regarding potential arrangements for the management of the plantations on these lands.
At present, there are no prohibitions on plantation activities within these areas. As of the date of this disclosure, Goodhope Asia Holdings Ltd., has informed Carson Cumberbatch PLC and Bukit Darah PLC that it has not received any notification or demand for payment of any penalties from the relevant authorities under these new regulations.
Accordingly, Goodhope Asia Holdings Ltd., is not in a position, at this stage, to determine or reasonably estimate the potential financial impact due to any possible penalties.
Goodhope Asia Holdings Ltd., has further confirmed its continued commitment to full compliance with prevailing Indonesian regulations and remains engaged constructively with the relevant authorities to ensure operational continuity and safeguard the interests of all stakeholders. Carson Cumberbatch PLC and Bukit Darah PLC will keep the Exchange apprised of any material developments.”FTLK
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‘Malaysia holds edge over US’
PETALING JAYA: Malaysia holds an advantage over the United States in the trade of key commodities such as palm oil and rubber, as these products are unique and supplied by only a few countries, says Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani (pic).
He said the imposition of US tariffs on such commodities would have little impact on Malaysia, as exports of palm oil and rubber to the United States make up only a small portion of the country’s total global shipments.
“The US tariffs do not really affect our commodity exports, as they need our products anyway. Even if a 19% tariff is imposed, the cost will simply be passed on to their customers,” he said when asked yesterday about the impact of tariff exemptions on Malaysian exports.
On Sunday, Malaysia and the United States signed the Agreement on Reciprocal Trade during the Asean Summit, under which Malaysia secured exemptions from the 19% retaliatory tariff for 1,711 tariff lines.
Johari said Malaysia exported RM4.2bil worth of palm oil to the United States out of a total global export value of RM120bil, while rubber product exports to the US stood at RM8.3bil.
“There is no real alternative for the palm oil and rubber products we supply. If the United States doesn’t buy from us, where else can they get them? So, even with a 19% tariff, that cost would be passed back to US consumers,” he said. The StarMY
--------
US tariffs on Malaysia’s commodities have minimal impact
US tariffs on Malaysia’s key commodities, such as palm oil and rubber, are expected to have little effect on the country, as exports to the US make up only a small portion of Malaysia’s total global shipments.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani (picture) said Malaysia holds a strong position in these commodities, as they are unique and produced by only a few countries.
“The US tariffs do not really affect our commodity exports, as they need our products anyway.
“Even if a 19% tariff is imposed, the cost will simply be passed on to their customers,” he said, as quoted by The Star, when asked about the impact of tariff exemptions on Malaysian exports.
During the first day of the ASEAN Summit on Oct 26, Malaysia and the US signed the Agreement on Reciprocal Trade, granting Malaysia exemptions from the 19% retaliatory tariff on 1,711 tariff lines.
Johari stated that Malaysia exported RM4.2 billion worth of palm oil to the US, out of a total global export value of RM120 billion, while exports of rubber products to the US totalled RM8.3 billion.
He added that US buyers have no real alternative for Malaysia’s palm oil and rubber, meaning even with a 19% tariff, the additional cost would be passed on to US consumers.
While all ASEAN nations face the same 19% US tariff, Malaysia maintains a competitive advantage.
“The commodities we export to the US are unique and difficult to replace. The US is primarily a soybean market, not a palm oil market, and what they import from us are palm-oil–based products. As for rubber, our competitors also face the same tariffs,” he said.
Under the agreement, Malaysia will provide preferential access for US exports, while the US will maintain a 19% tariff on most Malaysian goods but grant zero tariffs on selected key exports, including palm oil, rubber, cocoa, aircraft parts, and pharmaceuticals.
These exempted exports are valued at around US$5.2 billion (RM21.8 billion), representing 12% of Malaysia’s total exports.
The Malaysian Reserve
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Brazil’s biofuels boom under scrutiny ahead of COP30
As Brazil prepares to host COP30 in Belém this November, a new investigation by Repórter Brasil exposes how the country’s booming biofuel industry is driving deforestation, labour abuse, and land conflict, all in the name of sustainability.
Approved in October 2024, Brazil’s biofuels bill highlights the true cost of its clean energy drive. The rapid expansion of ethanol, biodiesel, and so-called sustainable aviation fuel (SAF) is reshaping rural Brazil, threatening key ecosystems, and widening inequality.
The report, based on fieldwork, legal records, and supply-chain mapping, paints a more complex picture of an industry Brazil plans to showcase as the cornerstone of its decarbonisation strategy at COP30.
Since launching the Proálcool programme in 1975, Brazil has positioned itself as a global pioneer in renewable fuels. Today, it produces more than 37 billion litres of ethanol and 9 billion litres of biodiesel a year, and it aims to generate 2.8 billion litres of SAF by 2035.
Brazil’s biofuel and feedstock exports hit record levels in 2024, with 1.88 billion litres of ethanol shipped mainly to the United States and the European Union. The country also exported 98.8 million tonnes of soybeans, mostly to China and Europe, along with 408 tonnes of palm oil to the US and European markets.
Public money has poured into it too. The state development bank, BNDES, and Brazil’s innovation agency, Finep, have channelled R$11.7bn (approximately £1.6bn) into the sector since 2022, largely through the government’s Climate Fund.
These numbers will be at the centre of Brazil’s message in Belém, that home-grown biofuels can help deliver on its Paris Agreement pledge to cut emissions by up to 67% by 2035. The Canary
--------
Indonesia's 40% Palm Oil Smallholders Face Traceability and Certification Gaps as EUDR Compliance Looms
Jakarta, 30 October 2025 - More than 40% of Indonesia's oil palm area is cultivated by independent smallholders, yet most remain outside formal traceability and certification systems. (Mongabay, 2023). This disconnect limits their access to sustainable markets and exposes the entire supply chain to compliance risks. As global importers tighten sustainability standards through measures such as the EU Deforestation Regulation (EUDR) and environmental scrutiny intensifies, Indonesia faces a pivotal task: integrating millions of smallholders into transparent, traceable, and inclusive supply chains that can sustain its global competitiveness. Digital traceability and certification readiness are therefore becoming essential, particularly as discussions about a potential EUDR deadline delay continue, although no official postponement of the December 2025 timeline has been confirmed (Koltiva, 2025).
Globally, smallholder producers managing less than 50 hectares of oil palm, produce up to 30% of crude palm oil and manage nearly one-third of total oil palm area (Chain Action Research, 2021; RSPO, 2022). Yet in Indonesia, only 7% of certified mills currently source from independent smallholders, and fewer than 1% of those farmers hold RSPO or ISPO certification. In Riau Province, one of the top palm oil-producing regions in Indonesia, independent plantations span 1.61 million hectares, but only 0.48% (7,798 ha) are RSPO-certified which is a clear indicator of the inclusion gap.
This data gap represents more than a certification challenge and exposes a systemic issue of visibility and inclusion. Unregistered producers remain excluded from both sustainability programs and potential downstream opportunities, while companies face compliance risks and market barriers.
Digital Traceability: From Compliance to Opportunity
Legality and traceability have become non-negotiable for access to premium export markets. Under the EUDR and similar frameworks, producers must demonstrate plot-level geolocation, verified land legality, and full traceability to plantation (TTP). For Indonesia's dealer-heavy supply chains, this demands verified producer registration, transparent transactions, and an unbroken chain of custody from farm to mill. "We've seen how digital tools and collaborative models can transform compliance from a burden into an opportunity. But lasting impact can only happen when all stakeholders work together, ensuring no smallholder is left behind in this transition to sustainable supply chains," said Jusupta Tarigan, Senior Program Manager at Koltiva.
Koltiva, a Swiss-Indonesian AgriTech company, has developed the KoltiTrace, a digital traceability platform that maps producers, monitors farm-level data, and verifies transactions in real time. In Indonesia, Koltiva's traceability system has empowered more than 2,600 businesses across the palm oil supply chain and registered over 178,000 producers, enabling greater transparency and inclusivity at every stage of production. Building on this impact, Koltiva has also collaborated with the United Nations Development Programme (UNDP), the Swiss State Secretariat for Economic Affairs (SECO), Swisscontact, and local governments to strengthen producer empowerment through data-driven decision-making and inclusive supply chain management, as showcased in the Multi-Stakeholder Forum (MSF) Dashboard in Aceh Singkil (InfoSawit, 2025). OpenPR
--------
Carson, Bukit Darah units face impact from Indonesia’s new palm oil land laws
Carson Cumberbatch PLC and Bukit Darah PLC have said subsidiaries under their Singapore-based arm, Goodhope Asia Holdings Ltd., have been affected by Indonesia’s new regulations on forest area management, with around 12,000 hectares of plantation land, both planted and unplanted, reclassified and transferred to a State-owned enterprise.
The companies said discussions are underway with authorities to determine future management arrangements, and no penalties have been imposed so far.
Issuing a joint statement, the companies said: “Changes relating to spatial planning and forest area management laws in the recent past have introduced additional requirements for plantation companies in Indonesia.
In compliance, relevant plantation companies of Goodhope Asia Holdings Ltd., a subsidiary of Carson Cumberbatch PLC and Bukit Darah PLC, have submitted necessary applications to the relevant authorities.
However, during the year, the Government of Indonesia introduced further new regulations establishing a Presidential Task Force for the repossession of lands categorised as forest status. As per publicly available data as of 7 October 2025, the new regulations have affected 587 companies in the Palm Oil Plantation Sector, covering approximately 1.5 million hectares in Indonesia.
Based on these new regulations, approximately 5,877 hectares of planted area and 6,275 hectares of unplanted area pertaining to five subsidiaries of Goodhope Asia Holdings Ltd., are impacted.
The Task Force has subsequently transferred the repossessed lands to a newly established State-owned enterprise, PT Agrinas Palma Nusantara (PT ASN). PT ASN is presently engaged in discussions with the Group Companies of Goodhope Asia Holdings Ltd., regarding potential arrangements for the management of the plantations on these lands.
At present, there are no prohibitions on plantation activities within these areas. As of the date of this disclosure, Goodhope Asia Holdings Ltd., has informed Carson Cumberbatch PLC and Bukit Darah PLC that it has not received any notification or demand for payment of any penalties from the relevant authorities under these new regulations.
Accordingly, Goodhope Asia Holdings Ltd., is not in a position, at this stage, to determine or reasonably estimate the potential financial impact due to any possible penalties.
Goodhope Asia Holdings Ltd., has further confirmed its continued commitment to full compliance with prevailing Indonesian regulations and remains engaged constructively with the relevant authorities to ensure operational continuity and safeguard the interests of all stakeholders. Carson Cumberbatch PLC and Bukit Darah PLC will keep the Exchange apprised of any material developments.”FTLK
--------
‘Malaysia holds edge over US’
PETALING JAYA: Malaysia holds an advantage over the United States in the trade of key commodities such as palm oil and rubber, as these products are unique and supplied by only a few countries, says Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani (pic).
He said the imposition of US tariffs on such commodities would have little impact on Malaysia, as exports of palm oil and rubber to the United States make up only a small portion of the country’s total global shipments.
“The US tariffs do not really affect our commodity exports, as they need our products anyway. Even if a 19% tariff is imposed, the cost will simply be passed on to their customers,” he said when asked yesterday about the impact of tariff exemptions on Malaysian exports.
On Sunday, Malaysia and the United States signed the Agreement on Reciprocal Trade during the Asean Summit, under which Malaysia secured exemptions from the 19% retaliatory tariff for 1,711 tariff lines.
Johari said Malaysia exported RM4.2bil worth of palm oil to the United States out of a total global export value of RM120bil, while rubber product exports to the US stood at RM8.3bil.
“There is no real alternative for the palm oil and rubber products we supply. If the United States doesn’t buy from us, where else can they get them? So, even with a 19% tariff, that cost would be passed back to US consumers,” he said. The StarMY
--------
US tariffs on Malaysia’s commodities have minimal impact
US tariffs on Malaysia’s key commodities, such as palm oil and rubber, are expected to have little effect on the country, as exports to the US make up only a small portion of Malaysia’s total global shipments.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani (picture) said Malaysia holds a strong position in these commodities, as they are unique and produced by only a few countries.
“The US tariffs do not really affect our commodity exports, as they need our products anyway.
“Even if a 19% tariff is imposed, the cost will simply be passed on to their customers,” he said, as quoted by The Star, when asked about the impact of tariff exemptions on Malaysian exports.
During the first day of the ASEAN Summit on Oct 26, Malaysia and the US signed the Agreement on Reciprocal Trade, granting Malaysia exemptions from the 19% retaliatory tariff on 1,711 tariff lines.
Johari stated that Malaysia exported RM4.2 billion worth of palm oil to the US, out of a total global export value of RM120 billion, while exports of rubber products to the US totalled RM8.3 billion.
He added that US buyers have no real alternative for Malaysia’s palm oil and rubber, meaning even with a 19% tariff, the additional cost would be passed on to US consumers.
While all ASEAN nations face the same 19% US tariff, Malaysia maintains a competitive advantage.
“The commodities we export to the US are unique and difficult to replace. The US is primarily a soybean market, not a palm oil market, and what they import from us are palm-oil–based products. As for rubber, our competitors also face the same tariffs,” he said.
Under the agreement, Malaysia will provide preferential access for US exports, while the US will maintain a 19% tariff on most Malaysian goods but grant zero tariffs on selected key exports, including palm oil, rubber, cocoa, aircraft parts, and pharmaceuticals.
These exempted exports are valued at around US$5.2 billion (RM21.8 billion), representing 12% of Malaysia’s total exports.
The Malaysian Reserve
--------
Brazil’s biofuels boom under scrutiny ahead of COP30
As Brazil prepares to host COP30 in Belém this November, a new investigation by Repórter Brasil exposes how the country’s booming biofuel industry is driving deforestation, labour abuse, and land conflict, all in the name of sustainability.
Approved in October 2024, Brazil’s biofuels bill highlights the true cost of its clean energy drive. The rapid expansion of ethanol, biodiesel, and so-called sustainable aviation fuel (SAF) is reshaping rural Brazil, threatening key ecosystems, and widening inequality.
The report, based on fieldwork, legal records, and supply-chain mapping, paints a more complex picture of an industry Brazil plans to showcase as the cornerstone of its decarbonisation strategy at COP30.
Since launching the Proálcool programme in 1975, Brazil has positioned itself as a global pioneer in renewable fuels. Today, it produces more than 37 billion litres of ethanol and 9 billion litres of biodiesel a year, and it aims to generate 2.8 billion litres of SAF by 2035.
Brazil’s biofuel and feedstock exports hit record levels in 2024, with 1.88 billion litres of ethanol shipped mainly to the United States and the European Union. The country also exported 98.8 million tonnes of soybeans, mostly to China and Europe, along with 408 tonnes of palm oil to the US and European markets.
Public money has poured into it too. The state development bank, BNDES, and Brazil’s innovation agency, Finep, have channelled R$11.7bn (approximately £1.6bn) into the sector since 2022, largely through the government’s Climate Fund.
These numbers will be at the centre of Brazil’s message in Belém, that home-grown biofuels can help deliver on its Paris Agreement pledge to cut emissions by up to 67% by 2035. The Canary
--------
October 30, 2025
Indonesia seeks zero percent US tariff on palm oil, mirroring Malaysia
Jakarta (ANTARA) - Indonesia is pushing for negotiations with the United States to reduce palm oil tariffs to 0 percent, as agreed between the United States and Malaysia.
"This (palm oil tariff negotiations) is still ongoing. Hopefully, in the discussions, we can at least reach a consensus similar to Malaysia," the ministry's Acting Director General of Agro-Industry, Putu Juli Ardika, noted on Wednesday.
This statement relates to Malaysia's successful bid to reduce import tariffs to the United States from 25 percent to 19 percent, as stipulated in the recently signed reciprocal tariff agreement with the US.
Malaysian leading products such as palm oil, rubber products, wood products, aviation components, and pharmaceutical products were exempted by the US from the 19 percent tariff, or reduced to a 0 percent tariff-free.
Therefore, Ardika conveyed Indonesia's expectation in securing a comparable outcome in negotiations with the United States.
According to him, a 0 percent tariff on Indonesian palm oil products entering the US can help the country to compete on equal footing with Malaysia in the same market.
"If we can be on par with Malaysia (with a 0 percent tariff), we will be on the same playing field for exports (to the US)," he emphasized. Antara
---------
Did Asean members get short-changed by Trump on trade deals with ‘strings attached’?
The individual deals signed by Trump with Malaysia, Cambodia, Thailand and Vietnam may lead to long-term economic costs, analysts say
The deals that US President Donald Trump sealed with several Asean partners in Kuala Lumpur earlier this week have been called a “mixed blessing” by critics, with the long-term economic costs potentially outweighing the short-term trade benefits.
Trump finalised agreements on trade and critical minerals with four members of the Association of Southeast Asian Nations on Sunday, including pacts with Malaysia, Cambodia, Thailand and Vietnam to address trade barriers.
Washington maintained the 19 to 20 per cent tariffs it had imposed on all four countries, but allowed for certain concessions, such as zero per cent tariffs on specific products and more commercial deals in exchange for wider market access for American goods.
Malaysia managed to secure zero tariffs on products including aerospace equipment, pharmaceuticals and key commodities such as palm oil, cocoa and rubber. Details on lower or zero levies for Thailand and Cambodia have yet to be released.
Trump did not address his previous threat of imposing a 100 per cent tariff on semiconductors, as well as 40 per cent on transshipments, with the latter aimed at curbing US goods from being exported to China via Asean.
Analysts said the concessions that the US made at the Asean summit, including limited tariff relief, were largely incremental. SCMP
---------
Malaysia defends US trade pact dubbed ‘act of surrender’ amid sovereignty concerns
KUALA LUMPUR – Malaysia has defended its reciprocal trade agreement with the US, saying on Oct 29 that the country has not surrendered its sovereignty in safeguarding the economy from harsher sanctions.
The deal, signed by Malaysian Prime Minister Anwar Ibrahim and US President Donald Trump on the sidelines of the Asean summit, maintains the White House’s unilateral 19 per cent tariff on Malaysian exports, but grants exemptions for 1,711 essential products, including electronics, rubber and palm oil derivatives.
However, a clause requiring Malaysia to align itself with the US on matters of economic restrictions or sanctions against a third country has raised alarm bells on both sides of the political divide, with critics warning that it may threaten the country’s independence and longstanding neutrality stance.
Addressing the issue in Parliament on Oct 29, Investment, Trade and Industry Minister Tengku Zafrul Aziz said the government had no choice but to negotiate with the US, and that the agreement represented “the best possible outcome” for Malaysia.
“There are some who said we surrendered our necks in the negotiations,” Datuk Seri Zafrul told lawmakers.
“But this is the geopolitical reality we face as a freely trading nation engaging with the world’s largest economic power, which is also our biggest trading partner.” Straits Times
--------
US tariff relief set to boost Malaysia’s palm oil industry
KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) has welcomed the United States’ tariff exemptions for selected Malaysian products, including palm oil, under the newly concluded Agreement on Reciprocal Trade.
Chief executive officer Belvinder Sron said the zero-tariff for Malaysian palm oil is a positive development.
“Our exports to the United States have recorded strong growth over the past two years, and this measure will further strengthen Malaysia’s competitive position in a high-value and rapidly evolving market.
“The deeper commercial cooperation with the US will benefit both industry players and the Malaysian economy, particularly through downstream expansion and technology integration,” she said in a statement today.
The council said the decision comes at a time of strong bilateral trade performance.
Over the past two years, Malaysia’s palm oil exports to the United States have shown consistent growth, supported by rising demand from advanced manufacturing and consumer goods sectors.
MPOC noted that from January to September 2025, Malaysian palm oil and products exports increased by 8.1% to 346,000 tonnes, compared to 320,000 tonnes during the same period in 2024. The StarMY
--------
EU ambassadors rebel against Commission's deforestation plans
Most EU countries said the rules should not take effect at the end of December
A majority of EU ambassadors is advocating that the European Commission delay the enforcement of new anti-deforestation laws for everyone, not just small companies, three diplomatic sources told Euractiv on Wednesday.
The news comes amid a new push in Brussels to delay and simplify the implementation of the EU’s new deforestation rules, approved in 2023.
The new rules would require companies to upload geolocation data to an online platform to prove their products did not contribute to forest clearing. The regulation covers cocoa, coffee, palm oil, livestock, timber, and rubber sold on the EU market.
Last week, the Commission unveiled plans to simplify reporting requirements by reducing the amount of data companies must upload to the IT system. The changes include a de facto exemption for small farmers and foresters who need only provide the postal code of their land. The Commission will also require only importers to submit a due diligence statement, thereby excluding downstream operators from that obligation.
However, as part of the same proposal, the Commission proposed only to delay enforcement for small companies and suspend non-compliance penalties for all operators for six months.
Member states remain unconvinced. During a meeting on Wednesday, most EU ambassadors said the rules should not take effect on 30 December 2025, as initially planned, and that any delay should cover all affected operators.
Now, opinions diverge on how to proceed. Some countries have pushed for longer delays and further simplification, while others proposed a “stop-the-clock” measure to buy more time for additional tweaks to the rules, one diplomat said.
Earlier this week, the agriculture ministers of Czechia, Latvia, Estonia, and Poland spearheaded the opposition against the Commission’s proposal, calling for a delay in its implementation and for classifying certain countries as posing “no risk” of deforestation. Euractiv
Indonesia seeks zero percent US tariff on palm oil, mirroring Malaysia
Jakarta (ANTARA) - Indonesia is pushing for negotiations with the United States to reduce palm oil tariffs to 0 percent, as agreed between the United States and Malaysia.
"This (palm oil tariff negotiations) is still ongoing. Hopefully, in the discussions, we can at least reach a consensus similar to Malaysia," the ministry's Acting Director General of Agro-Industry, Putu Juli Ardika, noted on Wednesday.
This statement relates to Malaysia's successful bid to reduce import tariffs to the United States from 25 percent to 19 percent, as stipulated in the recently signed reciprocal tariff agreement with the US.
Malaysian leading products such as palm oil, rubber products, wood products, aviation components, and pharmaceutical products were exempted by the US from the 19 percent tariff, or reduced to a 0 percent tariff-free.
Therefore, Ardika conveyed Indonesia's expectation in securing a comparable outcome in negotiations with the United States.
According to him, a 0 percent tariff on Indonesian palm oil products entering the US can help the country to compete on equal footing with Malaysia in the same market.
"If we can be on par with Malaysia (with a 0 percent tariff), we will be on the same playing field for exports (to the US)," he emphasized. Antara
---------
Did Asean members get short-changed by Trump on trade deals with ‘strings attached’?
The individual deals signed by Trump with Malaysia, Cambodia, Thailand and Vietnam may lead to long-term economic costs, analysts say
The deals that US President Donald Trump sealed with several Asean partners in Kuala Lumpur earlier this week have been called a “mixed blessing” by critics, with the long-term economic costs potentially outweighing the short-term trade benefits.
Trump finalised agreements on trade and critical minerals with four members of the Association of Southeast Asian Nations on Sunday, including pacts with Malaysia, Cambodia, Thailand and Vietnam to address trade barriers.
Washington maintained the 19 to 20 per cent tariffs it had imposed on all four countries, but allowed for certain concessions, such as zero per cent tariffs on specific products and more commercial deals in exchange for wider market access for American goods.
Malaysia managed to secure zero tariffs on products including aerospace equipment, pharmaceuticals and key commodities such as palm oil, cocoa and rubber. Details on lower or zero levies for Thailand and Cambodia have yet to be released.
Trump did not address his previous threat of imposing a 100 per cent tariff on semiconductors, as well as 40 per cent on transshipments, with the latter aimed at curbing US goods from being exported to China via Asean.
Analysts said the concessions that the US made at the Asean summit, including limited tariff relief, were largely incremental. SCMP
---------
Malaysia defends US trade pact dubbed ‘act of surrender’ amid sovereignty concerns
KUALA LUMPUR – Malaysia has defended its reciprocal trade agreement with the US, saying on Oct 29 that the country has not surrendered its sovereignty in safeguarding the economy from harsher sanctions.
The deal, signed by Malaysian Prime Minister Anwar Ibrahim and US President Donald Trump on the sidelines of the Asean summit, maintains the White House’s unilateral 19 per cent tariff on Malaysian exports, but grants exemptions for 1,711 essential products, including electronics, rubber and palm oil derivatives.
However, a clause requiring Malaysia to align itself with the US on matters of economic restrictions or sanctions against a third country has raised alarm bells on both sides of the political divide, with critics warning that it may threaten the country’s independence and longstanding neutrality stance.
Addressing the issue in Parliament on Oct 29, Investment, Trade and Industry Minister Tengku Zafrul Aziz said the government had no choice but to negotiate with the US, and that the agreement represented “the best possible outcome” for Malaysia.
“There are some who said we surrendered our necks in the negotiations,” Datuk Seri Zafrul told lawmakers.
“But this is the geopolitical reality we face as a freely trading nation engaging with the world’s largest economic power, which is also our biggest trading partner.” Straits Times
--------
US tariff relief set to boost Malaysia’s palm oil industry
KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) has welcomed the United States’ tariff exemptions for selected Malaysian products, including palm oil, under the newly concluded Agreement on Reciprocal Trade.
Chief executive officer Belvinder Sron said the zero-tariff for Malaysian palm oil is a positive development.
“Our exports to the United States have recorded strong growth over the past two years, and this measure will further strengthen Malaysia’s competitive position in a high-value and rapidly evolving market.
“The deeper commercial cooperation with the US will benefit both industry players and the Malaysian economy, particularly through downstream expansion and technology integration,” she said in a statement today.
The council said the decision comes at a time of strong bilateral trade performance.
Over the past two years, Malaysia’s palm oil exports to the United States have shown consistent growth, supported by rising demand from advanced manufacturing and consumer goods sectors.
MPOC noted that from January to September 2025, Malaysian palm oil and products exports increased by 8.1% to 346,000 tonnes, compared to 320,000 tonnes during the same period in 2024. The StarMY
--------
EU ambassadors rebel against Commission's deforestation plans
Most EU countries said the rules should not take effect at the end of December
A majority of EU ambassadors is advocating that the European Commission delay the enforcement of new anti-deforestation laws for everyone, not just small companies, three diplomatic sources told Euractiv on Wednesday.
The news comes amid a new push in Brussels to delay and simplify the implementation of the EU’s new deforestation rules, approved in 2023.
The new rules would require companies to upload geolocation data to an online platform to prove their products did not contribute to forest clearing. The regulation covers cocoa, coffee, palm oil, livestock, timber, and rubber sold on the EU market.
Last week, the Commission unveiled plans to simplify reporting requirements by reducing the amount of data companies must upload to the IT system. The changes include a de facto exemption for small farmers and foresters who need only provide the postal code of their land. The Commission will also require only importers to submit a due diligence statement, thereby excluding downstream operators from that obligation.
However, as part of the same proposal, the Commission proposed only to delay enforcement for small companies and suspend non-compliance penalties for all operators for six months.
Member states remain unconvinced. During a meeting on Wednesday, most EU ambassadors said the rules should not take effect on 30 December 2025, as initially planned, and that any delay should cover all affected operators.
Now, opinions diverge on how to proceed. Some countries have pushed for longer delays and further simplification, while others proposed a “stop-the-clock” measure to buy more time for additional tweaks to the rules, one diplomat said.
Earlier this week, the agriculture ministers of Czechia, Latvia, Estonia, and Poland spearheaded the opposition against the Commission’s proposal, calling for a delay in its implementation and for classifying certain countries as posing “no risk” of deforestation. Euractiv
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October 29, 2025
Indonesia’s Palm Oil Export Revenue Surges 43% to $24.8 Billion by August
Jakarta. Indonesia’s palm oil export revenue rose sharply by 43 percent year on year to $24.79 billion in the January-August 2025 period, according to data from the Indonesian Palm Oil Association (Gapki). Export volume also increased by 15 percent to 22.69 million tons, up from 19.68 million tons a year earlier.
Gapki said the growth was supported by improved production and stronger global prices for crude palm oil (CPO). The average CPO price between January and August stood at $1,204 per ton, higher than the $1,009 per ton average recorded over the same period last year.
“Last year, CPO prices were already high, prompting some regions to switch to other vegetable oils. This year, our production has improved,” said Gapki Secretary-General Hadi Sugeng on Tuesday.
Higher exports were recorded across several major destination markets, including Malaysia, China, Africa, the European Union, Russia, and the United States. Jakarta Globe
--------
Indonesia Denies B50 Biodiesel Plan Could Trigger Cooking Oil Shortage
TEMPO.CO, Jakarta - Indonesia’s Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has dismissed public concerns that the government’s B50 biodiesel program could trigger a cooking oil shortage due to higher crude palm oil (CPO) consumption.
“There’s no issue of cooking oil scarcity,” Bahlil said, as quoted by Antara on Tuesday, October 28, 2025.
Both cooking oil and biodiesel rely on CPO as their main raw material. Under Minister of Trade Decree No. 1531 of 2022 on Domestic Market Obligation (DMO) and Domestic Price Obligation (DPO) for CPO and cooking oil, national cooking oil production requires around 416,000 tons of CPO per month, or roughly 4.99 million tons per year.
Meanwhile, the B50 mandatory program, which blends 50 percent biodiesel with fossil diesel, will need about 5.3 million tons of CPO annually.
To maintain adequate supply, Bahlil said the government is preparing three strategies: intensifying production on existing plantations, opening new oil palm land, or reducing exports through the DMO mechanism.
“By applying the B50 policy, we could reduce exports slightly to secure domestic needs. That’s one of the alternatives,” he said. Tempo
--------
Indonesia Seeks 0 Percent US Tariff on Palm Oil Exports
KBRN, Jakarta: Indonesia is negotiating with the United States (US) to secure a zero percent import tariff on palm oil, a move aimed at matching Malaysia’s recent trade deal, official said on Wednesday, October 29, 2025, during the opening of the Agro Industry Exhibition at the ministry's headquarter in Jakarta, on Wednesday, October 29, 2025.
“The tariff negotiation process is still ongoing. Hopefully, through further discussions, we can achieve the same treatment as Malaysia,” said Putu Juli Ardika, Acting Director General of Agro Industry at the Industry Ministry, as quoted by antaranews.com.
Malaysia recently reached a reciprocal tariff agreement with the United States, successfully reducing import duties from 25 percent to 19 percent. Under the deal, several of Malaysia’s key exports including palm oil, rubber, wood products, aerospace components, and pharmaceuticals were granted full tariff exemptions, effectively cutting import duties to 0 percent.
Indonesia now hopes to achieve a similar outcome, ensuring its palm oil exports can compete on equal footing with those from Malaysia in the U.S. market. “If we can match Malaysia’s zero percent tariff, we’ll be on a level playing field in exporting to the US,” Putu added.
Earlier, on September 30, Coordinating Minister for Economic Affairs Airlangga Hartarto said the Indonesian government was still negotiating with the administration of US President Donald Trump regarding final import tariff decisions. RRI
Indonesia’s Palm Oil Export Revenue Surges 43% to $24.8 Billion by August
Jakarta. Indonesia’s palm oil export revenue rose sharply by 43 percent year on year to $24.79 billion in the January-August 2025 period, according to data from the Indonesian Palm Oil Association (Gapki). Export volume also increased by 15 percent to 22.69 million tons, up from 19.68 million tons a year earlier.
Gapki said the growth was supported by improved production and stronger global prices for crude palm oil (CPO). The average CPO price between January and August stood at $1,204 per ton, higher than the $1,009 per ton average recorded over the same period last year.
“Last year, CPO prices were already high, prompting some regions to switch to other vegetable oils. This year, our production has improved,” said Gapki Secretary-General Hadi Sugeng on Tuesday.
Higher exports were recorded across several major destination markets, including Malaysia, China, Africa, the European Union, Russia, and the United States. Jakarta Globe
--------
Indonesia Denies B50 Biodiesel Plan Could Trigger Cooking Oil Shortage
TEMPO.CO, Jakarta - Indonesia’s Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has dismissed public concerns that the government’s B50 biodiesel program could trigger a cooking oil shortage due to higher crude palm oil (CPO) consumption.
“There’s no issue of cooking oil scarcity,” Bahlil said, as quoted by Antara on Tuesday, October 28, 2025.
Both cooking oil and biodiesel rely on CPO as their main raw material. Under Minister of Trade Decree No. 1531 of 2022 on Domestic Market Obligation (DMO) and Domestic Price Obligation (DPO) for CPO and cooking oil, national cooking oil production requires around 416,000 tons of CPO per month, or roughly 4.99 million tons per year.
Meanwhile, the B50 mandatory program, which blends 50 percent biodiesel with fossil diesel, will need about 5.3 million tons of CPO annually.
To maintain adequate supply, Bahlil said the government is preparing three strategies: intensifying production on existing plantations, opening new oil palm land, or reducing exports through the DMO mechanism.
“By applying the B50 policy, we could reduce exports slightly to secure domestic needs. That’s one of the alternatives,” he said. Tempo
--------
Indonesia Seeks 0 Percent US Tariff on Palm Oil Exports
KBRN, Jakarta: Indonesia is negotiating with the United States (US) to secure a zero percent import tariff on palm oil, a move aimed at matching Malaysia’s recent trade deal, official said on Wednesday, October 29, 2025, during the opening of the Agro Industry Exhibition at the ministry's headquarter in Jakarta, on Wednesday, October 29, 2025.
“The tariff negotiation process is still ongoing. Hopefully, through further discussions, we can achieve the same treatment as Malaysia,” said Putu Juli Ardika, Acting Director General of Agro Industry at the Industry Ministry, as quoted by antaranews.com.
Malaysia recently reached a reciprocal tariff agreement with the United States, successfully reducing import duties from 25 percent to 19 percent. Under the deal, several of Malaysia’s key exports including palm oil, rubber, wood products, aerospace components, and pharmaceuticals were granted full tariff exemptions, effectively cutting import duties to 0 percent.
Indonesia now hopes to achieve a similar outcome, ensuring its palm oil exports can compete on equal footing with those from Malaysia in the U.S. market. “If we can match Malaysia’s zero percent tariff, we’ll be on a level playing field in exporting to the US,” Putu added.
Earlier, on September 30, Coordinating Minister for Economic Affairs Airlangga Hartarto said the Indonesian government was still negotiating with the administration of US President Donald Trump regarding final import tariff decisions. RRI
October 28, 2025
US tariff relief positive step for Malaysia's palm oil industry: MPOC
KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) has welcomed the United States' (US) tariff exemptions for selected Malaysian products, including palm oil, under the newly concluded Agreement on Reciprocal Trade.
Chief executive officer Belvinder Sron said the zero-tariff for Malaysian palm oil is a positive development.
"Our exports to the United States have recorded strong growth over the past two years, and this measure will further strengthen Malaysia's competitive position in a high-value and rapidly evolving market.
"The deeper commercial cooperation with the US will benefit both industry players and the Malaysian economy, particularly through downstream expansion and technology integration," she said in a statement today.
The council said the decision comes at a time of strong bilateral trade performance.
Over the past two years, Malaysia's palm oil exports to the US have shown consistent growth, supported by rising demand from advanced manufacturing and consumer goods sectors.
MPOC noted that from January to September 2025, Malaysian palm oil and products exports increased by 8.1 per cent to 346,000 tonnes, compared to 320,000 tonnes during the same period in 2024.
"The growth was primarily driven by certified palm oil, with shipments increasing from 75,000 to 98,000 tonnes.
"Certified palm oil and palm stearin currently account for 79 per cent of Malaysia's palm oil product exports to the US and are used in high-value industries, from specialty food ingredients to personal care products, where substitute options are limited," it said.
This reflects the expanding role of Malaysian palm oil in US supply chains.
With improved tariff conditions in the US, continued expansion of downstream capabilities, and an assertive market diversification agenda, MPOC is confident in sustaining palm oil export growth and reinforcing Malaysia's role as a reliable partner in bilateral trade with the US.
It added that while the US trade outcome is highly encouraging, MPOC emphasised that Malaysia will continue broadening its market portfolio to support long-term trade resilience.
Sub-Saharan Africa, the Middle East and North Africa (MENA), and ASEAN remain key focus regions, backed by growing demand for edible oils and downstream palm-based products. NST
---------
Zero Tariff On Palm Oil Will Raise Malaysia’s Competitiveness In US Market
The Malaysian Palm Oil Council (MPOC) has welcomed the United States’ decision to grant tariff exemptions for selected Malaysian products — including palm oil — under the newly concluded Agreement on Reciprocal Trade, describing it as a timely boost for the industry and bilateral trade relations.
The move comes amid strong trade performance between the two nations, with Malaysia’s palm oil exports to the U.S. recording steady growth over the past two years, driven by increasing demand from advanced manufacturing and consumer goods sectors.
MPOC Chief Executive Officer Belvinder Sron said the zero-tariff measure would further enhance Malaysia’s competitiveness in the American market.
“The zero-tariff for Malaysian palm oil is a positive development. Our exports to the United States have recorded strong growth over the past two years, and this measure will further strengthen Malaysia’s competitive position in a high-value and rapidly evolving market,” she said.
Belvinder added that deeper commercial cooperation between Malaysia and the U.S. will benefit both nations, particularly through downstream expansion and technology integration within the palm oil industry.
From January to September 2025, Malaysia’s palm oil and palm-based product exports rose 8.1% to 346,000 metric tonnes, compared to 320,000 metric tonnes in the same period last year. Certified palm oil led the increase, climbing from 75,000 to 98,000 metric tonnes, now accounting for 79% of Malaysia’s exports to the U.S.
These products, including palm stearin, are widely used in high-value industries such as specialty food manufacturing and personal care products, where alternative raw materials remain limited — underscoring Malaysia’s growing role in global supply chains.
Belvinder highlighted that Malaysia’s sustainability frameworks, including the Malaysian Sustainable Palm Oil (MSPO 2.0) certification and the Sawit Intelligent Management System (SIMS), have strengthened transparency and traceability, allowing local producers to meet stringent buyer standards in advanced markets like the United States.
“These initiatives enhance Malaysia’s ability to integrate seamlessly into international supply networks while positioning our exporters for greater participation in value-added and premium segments,” she said.
While the U.S. tariff exemption marks a key milestone, MPOC reaffirmed its commitment to diversifying export markets to maintain long-term growth and resilience. It identified Sub-Saharan Africa (SSA), the Middle East and North Africa (MENA), and ASEAN as continued focus regions due to growing demand for edible oils and palm-based downstream products.
“Our diversification strategy remains a core priority to ensure sustained success for Malaysian palm oil globally,” Belvinder said.
With improved tariff conditions in the U.S., a stronger downstream base, and ongoing market expansion, MPOC expressed confidence that Malaysia will sustain export growth and reinforce its reputation as a reliable trade partner on the international stage. Business Today
---------
Beyond the handshake: why obligations remain thin in US trade deal
The Malaysia-US deal is neither a triumph nor a trap, but a temporary equilibrium which should be treated as a strategic pause, not a permanent pact.
Malaysia signed the Agreement on Reciprocal Trade (ART 2025) with the US on Oct 26 amid much fanfare and flag-waving, becoming the first Asean state to conclude a “reciprocal” pact under Washington’s revived trade agenda.
The optics were impressive: Malaysia standing shoulder-to-shoulder with the world’s largest economy. But the deeper question remains: what exactly was gained, and what was merely promised?
Between reciprocity and reality
The deal is part of US president Donald Trump’s “fair and reciprocal trade” framework established in April. It authorises the president to negotiate tariff adjustments under the International Emergency Economic Powers Act and the Trade Expansion Act of 1962, without congressional ratification.
In legal terms, this means ART 2025 is not a treaty. It is an executive agreement; a political instrument that binds governments diplomatically, not juridically. It can be suspended, revised, or revoked by a sitting or future US president at will.
Yet, despite this fragility, the agreement carries real-world consequences.
Malaysia committed to expand market access for US goods, align selected standards, and facilitate investment cooperation in energy, critical minerals, and telecommunications.
In return, the US agreed to maintain a 19% tariff ceiling on Malaysian exports — down from a potential 25% — and grant tariff exemptions on 1,711 Malaysian products.
That last point matters. It means Malaysia did secure tangible trade concessions, even if limited. The deal is not an empty handshake. It is a qualified one.
A delicate balancing act
Malaysia’s rationale was pragmatic. The Trump administration’s tariff threats had already unsettled exporters and weakened confidence in Asean’s collective bargaining power. Securing an agreement stabilised market access and helped avoid an estimated RM15 billion in potential export losses for Malaysian electronics, rubber, and palm-based goods.
Domestically, the government has framed ART 2025 as a “strategic stabiliser” rather than a giveaway — emphasising the zero-tariff exemptions and digital-cooperation clauses.
Yet, local criticism has been fierce. Commentators warn that the agreement’s language — replete with “Malaysia shall” and “US may” clauses — reveals an imbalance of obligation. Some opposition leaders have even branded it a “surrender disguised as diplomacy”.
In truth, both views capture part of the picture. Yes, Malaysia did obtain concessions and stability, but the core asymmetry remains structural. Washington retains flexibility and Putrajaya assumes commitments.
Law without teeth
Critics are correct to question the durability of these pacts. In Washington, such agreements have the legal weight of a press statement with a policy header. They cannot override US statutes because only Congress can set or remove tariffs. FMT
--------
Why China wants Indonesia’s palm oil
China is seeking long-term palm oil supplies from Indonesia to safeguard its food and energy security. But as trade deepens, Jakarta faces tough questions — from environmental pressures to managing domestic demand and export commitments. Researcher Genevieve Donnellon-May examines the issue.
Is China betting big on palm oil to secure its cooking oil and biofuel future?
Indonesian media reported that China recently sent its Deputy Minister of Agriculture and Rural Affairs, Maierdan Mugaiti, to request that Jakarta guarantee its long-term supplies of crude palm oil and other key commodities.
While full details remain undisclosed, such an arrangement would deepen agricultural trade ties between two pivotal players: China — the world’s second-largest importer and third-largest consumer of palm oil — and Indonesia, the world’s largest producer and exporter.
China’s edible oil demand and market context
China relies heavily on foreign imports of edible oils (such as palm oil, soybean, rapeseed/canola, sunflower) to support its domestic production, making the country highly exposed to global price volatility and supply disruptions. Although soybean oil remains dominant, supplying around 40% of China’s cooking oil consumption, palm oil use has expanded steadily increased partly due to lower costs, versatility, and long shelf life.
Despite efforts to cultivate oil palm domestically, last year China imported approximately 4.36 million tonnes of palm oil and related products, primarily from Indonesia (76%) and Malaysia (24%). Most imports arrive as crude palm oil (CPO), later refined domestically into edible oils, processed foods, and industrial products. Estimates suggest that 80% of its palm oil consumption is for consumption; the remaining 20% is used in industrial applications (like oleochemicals and biodiesel).
Indonesia makes up nearly 60% of global palm oil output. In 2024, its biggest buyers were India (17.6% of the country’s exports), China (nearly 14.8%), and Pakistan (12.3%). Palm oil also plays a crucial role in the country’s economy. It also contributes more than 4% to Indonesia’s gross domestic product, while providing employment for over 16.2 million people.
Bilateral trade ties
Two-way trade between China and Indonesia continues to accelerate, reinforcing their strategic partnership as both countries mark 75 years of diplomatic relations and deepen cooperation under the BRICS framework. As Southeast Asia’s largest economy and a Belt and Road Initiative (BRI) participant since 2017, Indonesia remains closely tied to China through trade, investment, and infrastructure collaboration.
In 2024, China was Indonesia’s largest trading partner for the 12th consecutive year. Bilateral trade reached US$147.8 billion — a 6.1% year-on-year increase. China’s exports to Indonesia totalled US$76.7 billion, up 17.6% from the previous year. Agricultural commodities play an increasingly important role in this trade relationship: Indonesia posted a US$1.77 billion agricultural surplus with China in 2024, led by palm oil exports (worth US$2.72 billion).
A win-win
Strengthened agricultural trade offers tangible benefits for both Beijing and Jakarta. For China, guaranteed palm oil supplies provide essential inputs for food processing, industrial production, and bioenergy, helping to stabilise supply chains and reduce vulnerability amid a complex geopolitical environment.
The need for such stability is clear. In recent years, the global vegetable oil market has faced repeated disruptions — from supply chain breakdowns and conflicts like the Russia–Ukraine war (which impacted sunflower and rapeseed exports) to climate-induced production shocks and transportation upheavals costs. These challenges have exposed structural weaknesses in China’s import-dependent food system, leaving it highly sensitive to trade disputes, tariffs, and price volatility, even as demand for palm oil continues to rise in major markets such as India and the European Union (EU).
For Jakarta, long-term Chinese demand for Indonesian agricultural commodities ensures steady export revenue and supports employment, particularly in rural areas. Such engagement embeds Indonesia further into regional value chains, strengthens its position in global edible oil and biofuel markets and could lead to more Chinese investment in the sector.
In the case of the latter, recent developments suggest that there is interest in doing so. In April, China’s foreign ministry announced plans to increase imports of Indonesian products. Furthermore, in August, reports indicated that Chinese investors are turning to Indonesia to circumvent tariffs from the US.
Implications
The timing is significant. As the world’s largest soybean importer — accounting for over 60% of global trade — Beijing recently suspended US soybean purchases for the 2025–26 marketing year amid renewed US-China tensions. The move echoes the 2018–2020 trade war, when retaliatory tariffs on American soybeans disrupted China’s cooking oil and animal feed supplies, prompting a pivot toward Brazil and Argentina.
In this context, palm oil has re-emerged as a cost-effective, high-yield alternative that can (partially) substitute soybeans in food processing and biofuel production. While this shift could free millions of tonnes of soybeans for other importers, Beijing’s suspension of US crop purchases ahead of the Trump–Xi talks may depress global soybean oil prices, narrowing crude palm oil’s price advantage.
Regionally, China’s bid for guaranteed palm oil supplies from Indonesia could reshape Southeast Asia’s agricultural trade, influencing both intra-ASEAN flows and inter-regional trade between Southeast and East Asia. Deepening ties under frameworks like the China–ASEAN Free Trade Agreement (CAFTA) not only consolidates Beijing’s influence in the region but also encourages greater Chinese investment in refining, transport, and certification infrastructure.
Mutual dependence risks and environmental pressures
Deepening Sino-Indonesian agricultural trade risks asymmetric dependencies. As Indonesia exports greater volumes to China, it becomes increasingly exposed to fluctuations in Chinese demand. Palm oil — already Indonesia’s third-largest export to China after coal and metals, and accounting for around 20% of total exports — illustrates this vulnerability. A slowdown in China’s economy or a shift toward alternative edible oils could sharply reduce Indonesia’s export earnings.
But Beijing remains cautious about over-reliance on a single supplier too. Political, climatic, and regulatory risks can disrupt supply chains even with formal agreements in place. These concerns are compounded by Indonesian President Prabowo Subianto’s ongoing crackdown on illegal plantations, aimed at reclaiming millions of hectares lost to unregulated expansion. While intended to improve governance, the campaign may unsettle Chinese investors wary of asset seizures and opaque regulatory processes. Think China
US tariff relief positive step for Malaysia's palm oil industry: MPOC
KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) has welcomed the United States' (US) tariff exemptions for selected Malaysian products, including palm oil, under the newly concluded Agreement on Reciprocal Trade.
Chief executive officer Belvinder Sron said the zero-tariff for Malaysian palm oil is a positive development.
"Our exports to the United States have recorded strong growth over the past two years, and this measure will further strengthen Malaysia's competitive position in a high-value and rapidly evolving market.
"The deeper commercial cooperation with the US will benefit both industry players and the Malaysian economy, particularly through downstream expansion and technology integration," she said in a statement today.
The council said the decision comes at a time of strong bilateral trade performance.
Over the past two years, Malaysia's palm oil exports to the US have shown consistent growth, supported by rising demand from advanced manufacturing and consumer goods sectors.
MPOC noted that from January to September 2025, Malaysian palm oil and products exports increased by 8.1 per cent to 346,000 tonnes, compared to 320,000 tonnes during the same period in 2024.
"The growth was primarily driven by certified palm oil, with shipments increasing from 75,000 to 98,000 tonnes.
"Certified palm oil and palm stearin currently account for 79 per cent of Malaysia's palm oil product exports to the US and are used in high-value industries, from specialty food ingredients to personal care products, where substitute options are limited," it said.
This reflects the expanding role of Malaysian palm oil in US supply chains.
With improved tariff conditions in the US, continued expansion of downstream capabilities, and an assertive market diversification agenda, MPOC is confident in sustaining palm oil export growth and reinforcing Malaysia's role as a reliable partner in bilateral trade with the US.
It added that while the US trade outcome is highly encouraging, MPOC emphasised that Malaysia will continue broadening its market portfolio to support long-term trade resilience.
Sub-Saharan Africa, the Middle East and North Africa (MENA), and ASEAN remain key focus regions, backed by growing demand for edible oils and downstream palm-based products. NST
---------
Zero Tariff On Palm Oil Will Raise Malaysia’s Competitiveness In US Market
The Malaysian Palm Oil Council (MPOC) has welcomed the United States’ decision to grant tariff exemptions for selected Malaysian products — including palm oil — under the newly concluded Agreement on Reciprocal Trade, describing it as a timely boost for the industry and bilateral trade relations.
The move comes amid strong trade performance between the two nations, with Malaysia’s palm oil exports to the U.S. recording steady growth over the past two years, driven by increasing demand from advanced manufacturing and consumer goods sectors.
MPOC Chief Executive Officer Belvinder Sron said the zero-tariff measure would further enhance Malaysia’s competitiveness in the American market.
“The zero-tariff for Malaysian palm oil is a positive development. Our exports to the United States have recorded strong growth over the past two years, and this measure will further strengthen Malaysia’s competitive position in a high-value and rapidly evolving market,” she said.
Belvinder added that deeper commercial cooperation between Malaysia and the U.S. will benefit both nations, particularly through downstream expansion and technology integration within the palm oil industry.
From January to September 2025, Malaysia’s palm oil and palm-based product exports rose 8.1% to 346,000 metric tonnes, compared to 320,000 metric tonnes in the same period last year. Certified palm oil led the increase, climbing from 75,000 to 98,000 metric tonnes, now accounting for 79% of Malaysia’s exports to the U.S.
These products, including palm stearin, are widely used in high-value industries such as specialty food manufacturing and personal care products, where alternative raw materials remain limited — underscoring Malaysia’s growing role in global supply chains.
Belvinder highlighted that Malaysia’s sustainability frameworks, including the Malaysian Sustainable Palm Oil (MSPO 2.0) certification and the Sawit Intelligent Management System (SIMS), have strengthened transparency and traceability, allowing local producers to meet stringent buyer standards in advanced markets like the United States.
“These initiatives enhance Malaysia’s ability to integrate seamlessly into international supply networks while positioning our exporters for greater participation in value-added and premium segments,” she said.
While the U.S. tariff exemption marks a key milestone, MPOC reaffirmed its commitment to diversifying export markets to maintain long-term growth and resilience. It identified Sub-Saharan Africa (SSA), the Middle East and North Africa (MENA), and ASEAN as continued focus regions due to growing demand for edible oils and palm-based downstream products.
“Our diversification strategy remains a core priority to ensure sustained success for Malaysian palm oil globally,” Belvinder said.
With improved tariff conditions in the U.S., a stronger downstream base, and ongoing market expansion, MPOC expressed confidence that Malaysia will sustain export growth and reinforce its reputation as a reliable trade partner on the international stage. Business Today
---------
Beyond the handshake: why obligations remain thin in US trade deal
The Malaysia-US deal is neither a triumph nor a trap, but a temporary equilibrium which should be treated as a strategic pause, not a permanent pact.
Malaysia signed the Agreement on Reciprocal Trade (ART 2025) with the US on Oct 26 amid much fanfare and flag-waving, becoming the first Asean state to conclude a “reciprocal” pact under Washington’s revived trade agenda.
The optics were impressive: Malaysia standing shoulder-to-shoulder with the world’s largest economy. But the deeper question remains: what exactly was gained, and what was merely promised?
Between reciprocity and reality
The deal is part of US president Donald Trump’s “fair and reciprocal trade” framework established in April. It authorises the president to negotiate tariff adjustments under the International Emergency Economic Powers Act and the Trade Expansion Act of 1962, without congressional ratification.
In legal terms, this means ART 2025 is not a treaty. It is an executive agreement; a political instrument that binds governments diplomatically, not juridically. It can be suspended, revised, or revoked by a sitting or future US president at will.
Yet, despite this fragility, the agreement carries real-world consequences.
Malaysia committed to expand market access for US goods, align selected standards, and facilitate investment cooperation in energy, critical minerals, and telecommunications.
In return, the US agreed to maintain a 19% tariff ceiling on Malaysian exports — down from a potential 25% — and grant tariff exemptions on 1,711 Malaysian products.
That last point matters. It means Malaysia did secure tangible trade concessions, even if limited. The deal is not an empty handshake. It is a qualified one.
A delicate balancing act
Malaysia’s rationale was pragmatic. The Trump administration’s tariff threats had already unsettled exporters and weakened confidence in Asean’s collective bargaining power. Securing an agreement stabilised market access and helped avoid an estimated RM15 billion in potential export losses for Malaysian electronics, rubber, and palm-based goods.
Domestically, the government has framed ART 2025 as a “strategic stabiliser” rather than a giveaway — emphasising the zero-tariff exemptions and digital-cooperation clauses.
Yet, local criticism has been fierce. Commentators warn that the agreement’s language — replete with “Malaysia shall” and “US may” clauses — reveals an imbalance of obligation. Some opposition leaders have even branded it a “surrender disguised as diplomacy”.
In truth, both views capture part of the picture. Yes, Malaysia did obtain concessions and stability, but the core asymmetry remains structural. Washington retains flexibility and Putrajaya assumes commitments.
Law without teeth
Critics are correct to question the durability of these pacts. In Washington, such agreements have the legal weight of a press statement with a policy header. They cannot override US statutes because only Congress can set or remove tariffs. FMT
--------
Why China wants Indonesia’s palm oil
China is seeking long-term palm oil supplies from Indonesia to safeguard its food and energy security. But as trade deepens, Jakarta faces tough questions — from environmental pressures to managing domestic demand and export commitments. Researcher Genevieve Donnellon-May examines the issue.
Is China betting big on palm oil to secure its cooking oil and biofuel future?
Indonesian media reported that China recently sent its Deputy Minister of Agriculture and Rural Affairs, Maierdan Mugaiti, to request that Jakarta guarantee its long-term supplies of crude palm oil and other key commodities.
While full details remain undisclosed, such an arrangement would deepen agricultural trade ties between two pivotal players: China — the world’s second-largest importer and third-largest consumer of palm oil — and Indonesia, the world’s largest producer and exporter.
China’s edible oil demand and market context
China relies heavily on foreign imports of edible oils (such as palm oil, soybean, rapeseed/canola, sunflower) to support its domestic production, making the country highly exposed to global price volatility and supply disruptions. Although soybean oil remains dominant, supplying around 40% of China’s cooking oil consumption, palm oil use has expanded steadily increased partly due to lower costs, versatility, and long shelf life.
Despite efforts to cultivate oil palm domestically, last year China imported approximately 4.36 million tonnes of palm oil and related products, primarily from Indonesia (76%) and Malaysia (24%). Most imports arrive as crude palm oil (CPO), later refined domestically into edible oils, processed foods, and industrial products. Estimates suggest that 80% of its palm oil consumption is for consumption; the remaining 20% is used in industrial applications (like oleochemicals and biodiesel).
Indonesia makes up nearly 60% of global palm oil output. In 2024, its biggest buyers were India (17.6% of the country’s exports), China (nearly 14.8%), and Pakistan (12.3%). Palm oil also plays a crucial role in the country’s economy. It also contributes more than 4% to Indonesia’s gross domestic product, while providing employment for over 16.2 million people.
Bilateral trade ties
Two-way trade between China and Indonesia continues to accelerate, reinforcing their strategic partnership as both countries mark 75 years of diplomatic relations and deepen cooperation under the BRICS framework. As Southeast Asia’s largest economy and a Belt and Road Initiative (BRI) participant since 2017, Indonesia remains closely tied to China through trade, investment, and infrastructure collaboration.
In 2024, China was Indonesia’s largest trading partner for the 12th consecutive year. Bilateral trade reached US$147.8 billion — a 6.1% year-on-year increase. China’s exports to Indonesia totalled US$76.7 billion, up 17.6% from the previous year. Agricultural commodities play an increasingly important role in this trade relationship: Indonesia posted a US$1.77 billion agricultural surplus with China in 2024, led by palm oil exports (worth US$2.72 billion).
A win-win
Strengthened agricultural trade offers tangible benefits for both Beijing and Jakarta. For China, guaranteed palm oil supplies provide essential inputs for food processing, industrial production, and bioenergy, helping to stabilise supply chains and reduce vulnerability amid a complex geopolitical environment.
The need for such stability is clear. In recent years, the global vegetable oil market has faced repeated disruptions — from supply chain breakdowns and conflicts like the Russia–Ukraine war (which impacted sunflower and rapeseed exports) to climate-induced production shocks and transportation upheavals costs. These challenges have exposed structural weaknesses in China’s import-dependent food system, leaving it highly sensitive to trade disputes, tariffs, and price volatility, even as demand for palm oil continues to rise in major markets such as India and the European Union (EU).
For Jakarta, long-term Chinese demand for Indonesian agricultural commodities ensures steady export revenue and supports employment, particularly in rural areas. Such engagement embeds Indonesia further into regional value chains, strengthens its position in global edible oil and biofuel markets and could lead to more Chinese investment in the sector.
In the case of the latter, recent developments suggest that there is interest in doing so. In April, China’s foreign ministry announced plans to increase imports of Indonesian products. Furthermore, in August, reports indicated that Chinese investors are turning to Indonesia to circumvent tariffs from the US.
Implications
The timing is significant. As the world’s largest soybean importer — accounting for over 60% of global trade — Beijing recently suspended US soybean purchases for the 2025–26 marketing year amid renewed US-China tensions. The move echoes the 2018–2020 trade war, when retaliatory tariffs on American soybeans disrupted China’s cooking oil and animal feed supplies, prompting a pivot toward Brazil and Argentina.
In this context, palm oil has re-emerged as a cost-effective, high-yield alternative that can (partially) substitute soybeans in food processing and biofuel production. While this shift could free millions of tonnes of soybeans for other importers, Beijing’s suspension of US crop purchases ahead of the Trump–Xi talks may depress global soybean oil prices, narrowing crude palm oil’s price advantage.
Regionally, China’s bid for guaranteed palm oil supplies from Indonesia could reshape Southeast Asia’s agricultural trade, influencing both intra-ASEAN flows and inter-regional trade between Southeast and East Asia. Deepening ties under frameworks like the China–ASEAN Free Trade Agreement (CAFTA) not only consolidates Beijing’s influence in the region but also encourages greater Chinese investment in refining, transport, and certification infrastructure.
Mutual dependence risks and environmental pressures
Deepening Sino-Indonesian agricultural trade risks asymmetric dependencies. As Indonesia exports greater volumes to China, it becomes increasingly exposed to fluctuations in Chinese demand. Palm oil — already Indonesia’s third-largest export to China after coal and metals, and accounting for around 20% of total exports — illustrates this vulnerability. A slowdown in China’s economy or a shift toward alternative edible oils could sharply reduce Indonesia’s export earnings.
But Beijing remains cautious about over-reliance on a single supplier too. Political, climatic, and regulatory risks can disrupt supply chains even with formal agreements in place. These concerns are compounded by Indonesian President Prabowo Subianto’s ongoing crackdown on illegal plantations, aimed at reclaiming millions of hectares lost to unregulated expansion. While intended to improve governance, the campaign may unsettle Chinese investors wary of asset seizures and opaque regulatory processes. Think China
October 27, 2025
Trump strikes deals on trade, critical minerals in Southeast Asia
By Reuters
Summary
U.S. President Donald Trump, who is in Kuala Lumpur to attend a summit of the Association of Southeast Asian Nations, signed reciprocal trade deals with his Malaysian and Cambodian counterparts, as well as a framework trade pact with Thailand that will see the countries work to address tariff and non-tariff barriers.
The United States would maintain a tariff rate of 19% on exports from all three countries under the deals, with the levy to be reduced to zero for some goods, according to joint statements released by the White House.
Washington also announced a similar framework deal with Vietnam, which has been levied with a tariff rate of 20% on its exports to the United States.
Vietnam, which recorded a trade surplus of $123 billion with the United States last year, has pledged to vastly boost its purchases of U.S. products to reduce the trade gap between the two countries.
MALAYSIA NOT BANNING RARE EARTHS EXPORTS TO U.S.
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1,711 Malaysian export products to US to enjoy tariffs below 19%
KUALA LUMPUR (Oct 26): Up to 1,711 Malaysian export products to the United States will enjoy tariffs lower than 19% under the Agreement on Reciprocal Trade signed between Malaysia and US on Sunday, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
He said the list includes palm oil, rubber, cocoa, as well as some pharmaceutical components and aerospace equipment.
“These exports collectively amount to about US$5.2 billion (RM21.96 billion) of our export to the US, which is about 12% of our total export,” he told a press conference here on Sunday.
Zafrul said the lower tariff will take effect within 60 days after both countries exchange the documents as part of the legal process.
In a joint statement Sunday, Kuala Lumpur and Washington had said that the US has identified products listed under Annex III to Executive Order 14346, dated Sept 5, 2025, on Potential Tariff Adjustments for Aligned Partners, to receive a 0% reciprocal tariff rate.
It also said that the US has committed to maintain at 19%, the reciprocal tariffs first outlined in Executive Order 14257, dated April 2, 2025, as amended, on originating goods of Malaysia.
Asked if Malaysia is disappointed about this, Zafrul replied: “No, we are not disappointed. In fact, we are satisfied because what was offered before stays for Malaysia. But what we are quite glad about is that we didn't have to backtrack on any of what we agreed on before. The Edge
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Cheer From Zero Tariff And Key Sectors To Gain From US Trade Agreement with Malaysia
The 47th ASEAN Summit in Kuala Lumpur placed Southeast Asia firmly in the global spotlight as U.S. President Donald Trump presided over the signing of several key economic and diplomatic accords — including the landmark Kuala Lumpur Peace Accord between Cambodia and Thailand and a long-awaited reciprocal trade agreement between the United States and Malaysia.
Kenanga Research notes that the U.S. also unveiled separate trade frameworks with Thailand, Vietnam, and Cambodia, signalling Washington’s renewed push to deepen market access and economic ties with ASEAN as a counterbalance to China’s growing regional influence.
Malaysia–U.S. Trade Agreement: Key Highlights
The U.S.–Malaysia deal, anticipated since August, aims to reduce tariff and non-tariff barriers, enhance bilateral trade, and diversify critical supply chains. A Memorandum of Understanding (MoU) was also signed on critical minerals cooperation, underscoring Malaysia’s growing strategic role in global rare earth and semiconductor ecosystems.
Among the major concessions, Washington granted Malaysia zero-rated tariffs on 1,711 products, valued at approximately USD5.2 billion — or about 12% of Malaysia’s total exports to the U.S.. Key beneficiaries include the palm oil, rubber, cocoa, pharmaceutical, and aerospace sectors.
The house added that while the exemptions are “sizeable,” Malaysia is not alone — Vietnam and Thailand are also expected to receive similar treatment under their respective frameworks.
Malaysia’s Commitments to the U.S.
In return, Malaysia reaffirmed several commitments first proposed in August like the procurement of 30 aircraft (with an option for 30 more); USD150 billion in purchases by Malaysian MNCs, covering semiconductors (USD103b), data centres (USD43.5b), and aerospace components (USD3.5b); Annual LNG purchases worth USD3.4 billion; and USD70 billion in Malaysian capital investments in the U.S., including manufacturing and technology-linked ventures.
Additionally, Malaysia agreed to waive Universal Service Provision (USP) fund contributions for U.S. cloud service providers and to consult Washington on certain technology security matters, particularly concerning ICT infrastructure suppliers.
Operational Questions and Risks
Kenanga cautioned that some operational details remain unclear, including the timeline for meeting the USD150b procurement commitment and the flexibility in enforcement. The agreement also contains provisions allowing the U.S. to reinstate higher tariffs — up to 25% — should the pact be terminated or its conditions breached.
Sector Implications Business TodayMY
Trump strikes deals on trade, critical minerals in Southeast Asia
By Reuters
Summary
- US President signs deals with Thailand, Malaysia, Cambodia and Vietnam
- US to consider zero tariff rates for some Southeast Asian goods
- Thailand, Malaysia to play bigger role in US critical minerals supply
- US access to three countries' markets enhanced
U.S. President Donald Trump, who is in Kuala Lumpur to attend a summit of the Association of Southeast Asian Nations, signed reciprocal trade deals with his Malaysian and Cambodian counterparts, as well as a framework trade pact with Thailand that will see the countries work to address tariff and non-tariff barriers.
The United States would maintain a tariff rate of 19% on exports from all three countries under the deals, with the levy to be reduced to zero for some goods, according to joint statements released by the White House.
Washington also announced a similar framework deal with Vietnam, which has been levied with a tariff rate of 20% on its exports to the United States.
Vietnam, which recorded a trade surplus of $123 billion with the United States last year, has pledged to vastly boost its purchases of U.S. products to reduce the trade gap between the two countries.
MALAYSIA NOT BANNING RARE EARTHS EXPORTS TO U.S.
--------
1,711 Malaysian export products to US to enjoy tariffs below 19%
KUALA LUMPUR (Oct 26): Up to 1,711 Malaysian export products to the United States will enjoy tariffs lower than 19% under the Agreement on Reciprocal Trade signed between Malaysia and US on Sunday, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
He said the list includes palm oil, rubber, cocoa, as well as some pharmaceutical components and aerospace equipment.
“These exports collectively amount to about US$5.2 billion (RM21.96 billion) of our export to the US, which is about 12% of our total export,” he told a press conference here on Sunday.
Zafrul said the lower tariff will take effect within 60 days after both countries exchange the documents as part of the legal process.
In a joint statement Sunday, Kuala Lumpur and Washington had said that the US has identified products listed under Annex III to Executive Order 14346, dated Sept 5, 2025, on Potential Tariff Adjustments for Aligned Partners, to receive a 0% reciprocal tariff rate.
It also said that the US has committed to maintain at 19%, the reciprocal tariffs first outlined in Executive Order 14257, dated April 2, 2025, as amended, on originating goods of Malaysia.
Asked if Malaysia is disappointed about this, Zafrul replied: “No, we are not disappointed. In fact, we are satisfied because what was offered before stays for Malaysia. But what we are quite glad about is that we didn't have to backtrack on any of what we agreed on before. The Edge
--------
Cheer From Zero Tariff And Key Sectors To Gain From US Trade Agreement with Malaysia
The 47th ASEAN Summit in Kuala Lumpur placed Southeast Asia firmly in the global spotlight as U.S. President Donald Trump presided over the signing of several key economic and diplomatic accords — including the landmark Kuala Lumpur Peace Accord between Cambodia and Thailand and a long-awaited reciprocal trade agreement between the United States and Malaysia.
Kenanga Research notes that the U.S. also unveiled separate trade frameworks with Thailand, Vietnam, and Cambodia, signalling Washington’s renewed push to deepen market access and economic ties with ASEAN as a counterbalance to China’s growing regional influence.
Malaysia–U.S. Trade Agreement: Key Highlights
The U.S.–Malaysia deal, anticipated since August, aims to reduce tariff and non-tariff barriers, enhance bilateral trade, and diversify critical supply chains. A Memorandum of Understanding (MoU) was also signed on critical minerals cooperation, underscoring Malaysia’s growing strategic role in global rare earth and semiconductor ecosystems.
Among the major concessions, Washington granted Malaysia zero-rated tariffs on 1,711 products, valued at approximately USD5.2 billion — or about 12% of Malaysia’s total exports to the U.S.. Key beneficiaries include the palm oil, rubber, cocoa, pharmaceutical, and aerospace sectors.
The house added that while the exemptions are “sizeable,” Malaysia is not alone — Vietnam and Thailand are also expected to receive similar treatment under their respective frameworks.
Malaysia’s Commitments to the U.S.
In return, Malaysia reaffirmed several commitments first proposed in August like the procurement of 30 aircraft (with an option for 30 more); USD150 billion in purchases by Malaysian MNCs, covering semiconductors (USD103b), data centres (USD43.5b), and aerospace components (USD3.5b); Annual LNG purchases worth USD3.4 billion; and USD70 billion in Malaysian capital investments in the U.S., including manufacturing and technology-linked ventures.
Additionally, Malaysia agreed to waive Universal Service Provision (USP) fund contributions for U.S. cloud service providers and to consult Washington on certain technology security matters, particularly concerning ICT infrastructure suppliers.
Operational Questions and Risks
Kenanga cautioned that some operational details remain unclear, including the timeline for meeting the USD150b procurement commitment and the flexibility in enforcement. The agreement also contains provisions allowing the U.S. to reinstate higher tariffs — up to 25% — should the pact be terminated or its conditions breached.
Sector Implications Business TodayMY
October 26, 2025
Indonesia to deploy AI for real-time customs oversight
Indonesia will develop an artificial intelligence (AI) system to strengthen oversight of customs and excise operations, aiming to improve revenue collection and curb illegal trade practices.
Jakarta (VNA) – Indonesia will develop an artificial intelligence (AI) system to strengthen oversight of customs and excise operations, aiming to improve revenue collection and curb illegal trade practices, said Indonesian Finance Minister Purbaya Yudhi Sadewa.
Following an unannounced inspection at the Directorate General of Customs and Excise headquarters on October 22, Sadewa said the current monitoring system remains inadequate in detecting violations such as under-invoicing, according to Antara News.
Within the next three months, Indonesia will build a more advanced AI systems for customs, he said.
The plan follows his recent review of the Finance Ministry’s National Single Window (LNSW) agency. Sadewa said he aims to transform the LNSW into an IT-based intelligence centre for monitoring export-import activities.
He also plans to appoint ten experts from various fields to help the LNSW identify and analyse potential revenue leakages.
Indonesia will strengthen the LNSW, Customs, and the Tax Directorate, he stated, adding the country is reinforcing the entire revenue system end-to-end. Sadewa expressed confidence that integrating AI across the ministry’s databases will enhance efficiency and transparency in state revenue collection.
As of September 30, customs and excise revenue reached 221.3 trillion IDR (13.2 billion USD), or 73.4% of the annual target, driven by higher export duties and excise revenue from palm oil and copper concentrate. Import duties totaled 36.6 trillion IDR, down 4.6% due to lower tariffs on food commodities and free trade agreements, according to ministry data. Vietnam Plus
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New US-M’sia trade deal maintains tariff rate at 19pc, exempts over 1,700 key Malaysian exports
KUALA LUMPUR, Oct 26 — The new reciprocal trade agreement signed by Prime Minister Datuk Seri Anwar Ibrahim and US President Donald Trump today offers Malaysia better access to the US market without altering any previous commitments between the two nations.
Speaking to reporters, Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz said some 1,711 tariff lines — comprising key export commodities such as palm oil, rubber, cocoa, aircraft parts and pharmaceuticals — have been exempted from the 19 per cent tariff.
The exempted items, he said, are worth US$5.2 billion and account for 12 per cent of the country’s total exports.
Zafrul said the Trump administration has also agreed to give due consideration to semiconductor exports from Malaysia under Section 232 of the US Trade Expansion Act. Yahoo news
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Malaysia, Brazil ink MoUs to boost strategic partnerships
PUTRAJAYA: Malaysia and Brazil exchanged a series of memoranda of understanding (MoUs) today, marking a significant step towards strengthening bilateral ties across key sectors including semiconductor technology, science, innovation, and agriculture.
The MoU exchange ceremony was witnessed by Prime Minister Anwar Ibrahim and Brazilian president Luiz Inacio Lula da Silva at Kompleks Seri Perdana here in conjunction with Lula’s visit to Malaysia.
The first MoU, exchanged between investment, trade and industry minister Tengku Zafrul Aziz and Brazil’s vice-minister of development, industry, trade and services, Marcio Fernando Elias Rosa, focuses on enhancing cooperation in the semiconductor industry.
Following this, science, technology and innovation minister Chang Lih Kang and his Brazilian counterpart, Luciana Barbosa de Oliveira Santos, exchanged an MoU aimed at strengthening bilateral ties in the fields of science, technology, and innovation.
They also exchanged an MoU between Mimos Bhd and MDE Instituto Nacional de Pesquisas Espaciais that focuses on the semiconductor sector.
Chang and Santos also exchanged an MoU between Mimos and CTI Renato Archer of Brazil on semiconductor technologies.
Institute of Strategic and International Studies (ISIS) Malaysia chairman Faiz Abdullah and Brazil’s foreign affairs minister, Mauro Vieira, exchanged an MoU between the Malaysian think tank and the Alexandre de Gusmão Foundation (FUNAG). FMT
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Malaysia and South Africa deepen cooperation on palm oil and automotive
Malaysia and South Africa strengthen bilateral ties, focusing on palm oil, automotive and halal sectors during ASEAN Summit meetings.
KUALA LUMPUR: Malaysia and South Africa have reaffirmed their commitment to strengthen bilateral economic cooperation with a key focus on positioning South Africa as a regional hub for Malaysian palm oil.
Other key areas of discussion during the bilateral meeting between Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz and South African Trade Minister Parks Tau included expanding Proton’s market access and strengthening cooperation in the automotive sector and halal industry. The SunMY
--------
Indonesia to deploy AI for real-time customs oversight
Indonesia will develop an artificial intelligence (AI) system to strengthen oversight of customs and excise operations, aiming to improve revenue collection and curb illegal trade practices.
Jakarta (VNA) – Indonesia will develop an artificial intelligence (AI) system to strengthen oversight of customs and excise operations, aiming to improve revenue collection and curb illegal trade practices, said Indonesian Finance Minister Purbaya Yudhi Sadewa.
Following an unannounced inspection at the Directorate General of Customs and Excise headquarters on October 22, Sadewa said the current monitoring system remains inadequate in detecting violations such as under-invoicing, according to Antara News.
Within the next three months, Indonesia will build a more advanced AI systems for customs, he said.
The plan follows his recent review of the Finance Ministry’s National Single Window (LNSW) agency. Sadewa said he aims to transform the LNSW into an IT-based intelligence centre for monitoring export-import activities.
He also plans to appoint ten experts from various fields to help the LNSW identify and analyse potential revenue leakages.
Indonesia will strengthen the LNSW, Customs, and the Tax Directorate, he stated, adding the country is reinforcing the entire revenue system end-to-end. Sadewa expressed confidence that integrating AI across the ministry’s databases will enhance efficiency and transparency in state revenue collection.
As of September 30, customs and excise revenue reached 221.3 trillion IDR (13.2 billion USD), or 73.4% of the annual target, driven by higher export duties and excise revenue from palm oil and copper concentrate. Import duties totaled 36.6 trillion IDR, down 4.6% due to lower tariffs on food commodities and free trade agreements, according to ministry data. Vietnam Plus
--------
New US-M’sia trade deal maintains tariff rate at 19pc, exempts over 1,700 key Malaysian exports
KUALA LUMPUR, Oct 26 — The new reciprocal trade agreement signed by Prime Minister Datuk Seri Anwar Ibrahim and US President Donald Trump today offers Malaysia better access to the US market without altering any previous commitments between the two nations.
Speaking to reporters, Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz said some 1,711 tariff lines — comprising key export commodities such as palm oil, rubber, cocoa, aircraft parts and pharmaceuticals — have been exempted from the 19 per cent tariff.
The exempted items, he said, are worth US$5.2 billion and account for 12 per cent of the country’s total exports.
Zafrul said the Trump administration has also agreed to give due consideration to semiconductor exports from Malaysia under Section 232 of the US Trade Expansion Act. Yahoo news
---------
Malaysia, Brazil ink MoUs to boost strategic partnerships
PUTRAJAYA: Malaysia and Brazil exchanged a series of memoranda of understanding (MoUs) today, marking a significant step towards strengthening bilateral ties across key sectors including semiconductor technology, science, innovation, and agriculture.
The MoU exchange ceremony was witnessed by Prime Minister Anwar Ibrahim and Brazilian president Luiz Inacio Lula da Silva at Kompleks Seri Perdana here in conjunction with Lula’s visit to Malaysia.
The first MoU, exchanged between investment, trade and industry minister Tengku Zafrul Aziz and Brazil’s vice-minister of development, industry, trade and services, Marcio Fernando Elias Rosa, focuses on enhancing cooperation in the semiconductor industry.
Following this, science, technology and innovation minister Chang Lih Kang and his Brazilian counterpart, Luciana Barbosa de Oliveira Santos, exchanged an MoU aimed at strengthening bilateral ties in the fields of science, technology, and innovation.
They also exchanged an MoU between Mimos Bhd and MDE Instituto Nacional de Pesquisas Espaciais that focuses on the semiconductor sector.
Chang and Santos also exchanged an MoU between Mimos and CTI Renato Archer of Brazil on semiconductor technologies.
Institute of Strategic and International Studies (ISIS) Malaysia chairman Faiz Abdullah and Brazil’s foreign affairs minister, Mauro Vieira, exchanged an MoU between the Malaysian think tank and the Alexandre de Gusmão Foundation (FUNAG). FMT
--------
Malaysia and South Africa deepen cooperation on palm oil and automotive
Malaysia and South Africa strengthen bilateral ties, focusing on palm oil, automotive and halal sectors during ASEAN Summit meetings.
KUALA LUMPUR: Malaysia and South Africa have reaffirmed their commitment to strengthen bilateral economic cooperation with a key focus on positioning South Africa as a regional hub for Malaysian palm oil.
Other key areas of discussion during the bilateral meeting between Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz and South African Trade Minister Parks Tau included expanding Proton’s market access and strengthening cooperation in the automotive sector and halal industry. The SunMY
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October 24, 2025
Indonesia to introduce mandatory bioethanol-blended gasoline in 2027, minister says
By Reuters
JAKARTA, Oct 24 (Reuters) - Indonesia plans to impose a mandatory bioethanol content level of 10% for gasoline in 2027, part of efforts to reduce its fuel import dependence, its energy minister said on Friday.
The Southeast Asian country is aiming to expand the use of biofuels made from palm oil and sugar cane to become more energy-self sufficient. However, ethanol supply constraints have delayed its plans to introduce mandatory bioethanol content for gasoline.
Minister Bahlil Lahadalia estimated that Indonesia would need 1.4 million kilolitres of bioethanol to implement the mandatory gasoline blend of 10%.
"We plan to source all the ethanol from domestic markets," he told reporters.
Bahlil said cassava, corn, and sugar cane could also be used for alternative feedstock for ethanol.
Indonesia had enough capacity to produce 303,325 kilolitres of bioethanol per year in 2024, but output stood at just 160,946 kL with imports at 11,829 kL, data from an association of Indonesian methylated spirits and ethanol producers showed.
Domestic demand for stood at 125,937 kL last year while exports reached 46,839 kL. Reuters
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Malaysia reviews holistic strategy as it eyes EUDR reclassification as low risk country
KUALA LUMPUR (Oct 23): The Special Committee on the Implementation of the European Union Deforestation Regulation (EUDR) has studied strategies and measures that need to be implemented holistically across ministries, to ensure that Malaysia can be reclassified as a low-risk country under the EUDR framework.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the review covers the assessment of country benchmarking criteria that fall under the responsibilities of various ministries.
“Among the steps are the coordination of forest data reporting and enforcement of forestry-related laws by the Ministry of Natural Resources and Environmental Sustainability, compliance and enforcement of laws protecting human rights, including the rights of indigenous communities, by the Ministry of Rural and Regional Development.
“(Also) the inclusion of sustainability elements in free trade agreement negotiations by the Ministry of Investment, Trade and Industry (Miti),” he told a question-and-answer session in the Dewan Rakyat on Thursday.
He was responding to a question from Chong Zhemin (PH–Kampar), who wanted to know the ministry’s progress and achievements in efforts to remove Malaysia from the “standard risk” category under the EUDR.
Meanwhile, Johari said the government has established a national traceability system for the palm oil sector, as part of compliance with the Malaysian Sustainable Palm Oil (MSPO) certification, to ensure that palm oil exports are not limited to large companies only.
He stated that the Malaysian Palm Oil Board (MPOB) is currently in the final stages of completing the system. The Edge
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Nestle and the Green Paradox: Global Ethics or Local Exploitation?
Every year, Nestlé touts its progress toward a "deforestation-free" supply chain. But the story on the ground often falls short of that rosy narrative.
Every year, Nestlé touts its progress toward a “deforestation-free” supply chain. But the story on the ground often falls short of that rosy narrative. In palm oil-producing villages, roads remain muddy, palm oil prices fluctuate, and the fate of smallholder farmers remains precarious.
The world is too quick to pat a Company on the back for following global ethics.
However, the actual development is far too slow, giving rise to a new, more subtle form of dependence on economic sovereignty. This is particularly true when it’s packagedunder the label of sustainability, and the word “green” becomes merely a mere expedient.
The State and Shrinking Space for Maneuverability
Foreign investment is often seen as a sign of progress, especially when packaged in a green economy narrative. But beneath the euphoria, a crucial question arises: how much control does a country still have over the direction of its own industry? In many cases, policies are designed to attract investors, not necessarily to benefit local communities. Developing countries like Indonesia find themselves in a difficult position, having to maintain economic growth while adapting to global pressures. As a result, the state appears to be active, when in reality, it is simply reacting to external forces.
Sovereignty in the Shadow of Certification
Previously, Nestlé had refused to purchase palm oil from suppliers who only held ISPO (Indonesian Sustainable Palm Oil) certification, the official sustainability system approved by the Indonesian government. The reason was simple: ISPO was deemed inadequate to meet global sustainability standards like the RSPO (Roundtable on Sustainable Palm Oil), established by a consortium of multinational companies and international organizations.
This statement has implied that in the world market, global standards can easily shift and replace a country’s authority in determining the direction of economic development.
Here, the Indonesian government actually wants to prove that the policies it makes will be able to regulate the cycle without constantly being subject to pressure from global standards.
regarding MNCs. However, market reality shows that countries may appear sovereign on paper, but in practice, they must once again adapt to external rules.
Green Certification and Grey Power
Global certifications like the RSPO do promise higher ethical standards, but they also create new, often invisible layers of power. Companies that control market access and certification essentially control who enters and exits global supply chains.
In this case, Nestlé is not just an economic actor, but also a global political actor capable of shaping norms, determining values, and implementing policies through economic mechanisms. Governments, which should act as regulators and protectors, often adapt to avoid being abandoned by investors. As a result, economic sovereignty becomes a rhetorical concept, present in speeches but evaporating in practice.
Global Ethics or Local Exploitation?
When viewed from a broader perspective, smallholder farmers, particularly those who supply palm oil to large corporations like Nestlé, often face a double burden. On the one hand, palm oil farmers are required to meet complex sustainability standards, while on the other, they also experience the selling price of their products being continually suppressed to meet global efficiency standards.
According to reports from environmental organizations such as Greenpeace and the Rainforest Action Network, serious challenges remain in the global palm oil supply chain, ranging from unequal access to certification to weak protection for smallholder farmers.
Ironically, the global ethics promoted by multinational corporations often place local actors in the most vulnerable position. Sustainability, which should bring justice, has instead become a market mechanism that limits the freedom of local farmers.
Nestle and the New Face of Green Capitalism
MNCs, including Nestlé, are currently competing to demonstrate their concern for the earth. Jargon like “sustainable supply chain” and “zero deforestation” sound convincing, but in practice, they are not as simple as they sound. Here, they symbolize how global ethical values are implemented through business and market mechanisms. This can lead to better industrial practices, but it also risks the burden of adaptation falling on the most vulnerable local actors. Paradoxically, sustainability intended to improve old systems can actually prolong new forms of dependency. Modern Diplomacy
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Smuggled Vegetable Oils Threaten 1.2 Million Jobs in Ghana
Over 1.2 million jobs in Ghana’s palm oil industry are at risk from the persistent smuggling of substandard and untaxed vegetable oils, according to the Oil Palm Development Association of Ghana (OPDAG). The association warned that unchecked illegal imports could push local producers to the brink of collapse.
Paul Kwabena Amaning, President of OPDAG, said at a press conference in Accra on Tuesday that the influx of unregulated and untaxed products undermined the competitiveness of local producers, eroded government revenue, and endangered livelihoods. He cautioned that failure to address the problem could lead to the collapse of many small and medium scale processing companies that employ thousands of Ghanaians across the value chain.
Amaning described the situation as a national crisis that demands urgent action from government, regulators, and law enforcement agencies. “This is not just an industry problem, this is a national threat,” he said.
Data presented by OPDAG at a stakeholder meeting revealed that about 90 percent of cooking oil on the local market was smuggled and uncertified. The association warned that the trend threatened the survival of Ghana’s oil palm industry, which employed more than 850,000 people, including 36,000 women, and contributed over 500 million cedis in annual taxes.
Smuggled oils avoid customs duties and food safety checks, allowing them to sell far below production costs of legitimate local manufacturers. According to OPDAG estimates, the local industry loses tens of millions of cedis annually due to tax evasion and unfair competition from these products, many of which fail to meet Ghana’s food safety standards.
Amaning warned that several small and medium scale processing companies were already struggling to stay afloat as they faced rising costs of raw materials, currency fluctuations, and limited market access worsened by the surge in illegal imports. He also raised concerns about the potential health risks posed by unregulated oils that bypass quality checks by the Food and Drugs Authority and Ghana Standards Authority. News Ghana
Indonesia to introduce mandatory bioethanol-blended gasoline in 2027, minister says
By Reuters
JAKARTA, Oct 24 (Reuters) - Indonesia plans to impose a mandatory bioethanol content level of 10% for gasoline in 2027, part of efforts to reduce its fuel import dependence, its energy minister said on Friday.
The Southeast Asian country is aiming to expand the use of biofuels made from palm oil and sugar cane to become more energy-self sufficient. However, ethanol supply constraints have delayed its plans to introduce mandatory bioethanol content for gasoline.
Minister Bahlil Lahadalia estimated that Indonesia would need 1.4 million kilolitres of bioethanol to implement the mandatory gasoline blend of 10%.
"We plan to source all the ethanol from domestic markets," he told reporters.
Bahlil said cassava, corn, and sugar cane could also be used for alternative feedstock for ethanol.
Indonesia had enough capacity to produce 303,325 kilolitres of bioethanol per year in 2024, but output stood at just 160,946 kL with imports at 11,829 kL, data from an association of Indonesian methylated spirits and ethanol producers showed.
Domestic demand for stood at 125,937 kL last year while exports reached 46,839 kL. Reuters
---------
Malaysia reviews holistic strategy as it eyes EUDR reclassification as low risk country
KUALA LUMPUR (Oct 23): The Special Committee on the Implementation of the European Union Deforestation Regulation (EUDR) has studied strategies and measures that need to be implemented holistically across ministries, to ensure that Malaysia can be reclassified as a low-risk country under the EUDR framework.
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the review covers the assessment of country benchmarking criteria that fall under the responsibilities of various ministries.
“Among the steps are the coordination of forest data reporting and enforcement of forestry-related laws by the Ministry of Natural Resources and Environmental Sustainability, compliance and enforcement of laws protecting human rights, including the rights of indigenous communities, by the Ministry of Rural and Regional Development.
“(Also) the inclusion of sustainability elements in free trade agreement negotiations by the Ministry of Investment, Trade and Industry (Miti),” he told a question-and-answer session in the Dewan Rakyat on Thursday.
He was responding to a question from Chong Zhemin (PH–Kampar), who wanted to know the ministry’s progress and achievements in efforts to remove Malaysia from the “standard risk” category under the EUDR.
Meanwhile, Johari said the government has established a national traceability system for the palm oil sector, as part of compliance with the Malaysian Sustainable Palm Oil (MSPO) certification, to ensure that palm oil exports are not limited to large companies only.
He stated that the Malaysian Palm Oil Board (MPOB) is currently in the final stages of completing the system. The Edge
--------
Nestle and the Green Paradox: Global Ethics or Local Exploitation?
Every year, Nestlé touts its progress toward a "deforestation-free" supply chain. But the story on the ground often falls short of that rosy narrative.
Every year, Nestlé touts its progress toward a “deforestation-free” supply chain. But the story on the ground often falls short of that rosy narrative. In palm oil-producing villages, roads remain muddy, palm oil prices fluctuate, and the fate of smallholder farmers remains precarious.
The world is too quick to pat a Company on the back for following global ethics.
However, the actual development is far too slow, giving rise to a new, more subtle form of dependence on economic sovereignty. This is particularly true when it’s packagedunder the label of sustainability, and the word “green” becomes merely a mere expedient.
The State and Shrinking Space for Maneuverability
Foreign investment is often seen as a sign of progress, especially when packaged in a green economy narrative. But beneath the euphoria, a crucial question arises: how much control does a country still have over the direction of its own industry? In many cases, policies are designed to attract investors, not necessarily to benefit local communities. Developing countries like Indonesia find themselves in a difficult position, having to maintain economic growth while adapting to global pressures. As a result, the state appears to be active, when in reality, it is simply reacting to external forces.
Sovereignty in the Shadow of Certification
Previously, Nestlé had refused to purchase palm oil from suppliers who only held ISPO (Indonesian Sustainable Palm Oil) certification, the official sustainability system approved by the Indonesian government. The reason was simple: ISPO was deemed inadequate to meet global sustainability standards like the RSPO (Roundtable on Sustainable Palm Oil), established by a consortium of multinational companies and international organizations.
This statement has implied that in the world market, global standards can easily shift and replace a country’s authority in determining the direction of economic development.
Here, the Indonesian government actually wants to prove that the policies it makes will be able to regulate the cycle without constantly being subject to pressure from global standards.
regarding MNCs. However, market reality shows that countries may appear sovereign on paper, but in practice, they must once again adapt to external rules.
Green Certification and Grey Power
Global certifications like the RSPO do promise higher ethical standards, but they also create new, often invisible layers of power. Companies that control market access and certification essentially control who enters and exits global supply chains.
In this case, Nestlé is not just an economic actor, but also a global political actor capable of shaping norms, determining values, and implementing policies through economic mechanisms. Governments, which should act as regulators and protectors, often adapt to avoid being abandoned by investors. As a result, economic sovereignty becomes a rhetorical concept, present in speeches but evaporating in practice.
Global Ethics or Local Exploitation?
When viewed from a broader perspective, smallholder farmers, particularly those who supply palm oil to large corporations like Nestlé, often face a double burden. On the one hand, palm oil farmers are required to meet complex sustainability standards, while on the other, they also experience the selling price of their products being continually suppressed to meet global efficiency standards.
According to reports from environmental organizations such as Greenpeace and the Rainforest Action Network, serious challenges remain in the global palm oil supply chain, ranging from unequal access to certification to weak protection for smallholder farmers.
Ironically, the global ethics promoted by multinational corporations often place local actors in the most vulnerable position. Sustainability, which should bring justice, has instead become a market mechanism that limits the freedom of local farmers.
Nestle and the New Face of Green Capitalism
MNCs, including Nestlé, are currently competing to demonstrate their concern for the earth. Jargon like “sustainable supply chain” and “zero deforestation” sound convincing, but in practice, they are not as simple as they sound. Here, they symbolize how global ethical values are implemented through business and market mechanisms. This can lead to better industrial practices, but it also risks the burden of adaptation falling on the most vulnerable local actors. Paradoxically, sustainability intended to improve old systems can actually prolong new forms of dependency. Modern Diplomacy
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Smuggled Vegetable Oils Threaten 1.2 Million Jobs in Ghana
Over 1.2 million jobs in Ghana’s palm oil industry are at risk from the persistent smuggling of substandard and untaxed vegetable oils, according to the Oil Palm Development Association of Ghana (OPDAG). The association warned that unchecked illegal imports could push local producers to the brink of collapse.
Paul Kwabena Amaning, President of OPDAG, said at a press conference in Accra on Tuesday that the influx of unregulated and untaxed products undermined the competitiveness of local producers, eroded government revenue, and endangered livelihoods. He cautioned that failure to address the problem could lead to the collapse of many small and medium scale processing companies that employ thousands of Ghanaians across the value chain.
Amaning described the situation as a national crisis that demands urgent action from government, regulators, and law enforcement agencies. “This is not just an industry problem, this is a national threat,” he said.
Data presented by OPDAG at a stakeholder meeting revealed that about 90 percent of cooking oil on the local market was smuggled and uncertified. The association warned that the trend threatened the survival of Ghana’s oil palm industry, which employed more than 850,000 people, including 36,000 women, and contributed over 500 million cedis in annual taxes.
Smuggled oils avoid customs duties and food safety checks, allowing them to sell far below production costs of legitimate local manufacturers. According to OPDAG estimates, the local industry loses tens of millions of cedis annually due to tax evasion and unfair competition from these products, many of which fail to meet Ghana’s food safety standards.
Amaning warned that several small and medium scale processing companies were already struggling to stay afloat as they faced rising costs of raw materials, currency fluctuations, and limited market access worsened by the surge in illegal imports. He also raised concerns about the potential health risks posed by unregulated oils that bypass quality checks by the Food and Drugs Authority and Ghana Standards Authority. News Ghana
October 23, 2025
Fear grips Indonesian palm oil industry as military seizes plantations
By Gayatri Suroyo and Bernadette Christina
SAMPIT, Indonesia, Oct 23 (Reuters) - Indonesian soldiers in fatigues marched onto a private palm oil plantation on Borneo island in late June and posted a signboard declaring the estate under government control, its managers said.
The scene at the Melati Hanjalipan plantation exemplifies a sweeping military-backed takeover that has sent a chill through the world's biggest palm oil producer and its 16-million-strong workforce.
Around 3.7 million hectares (9.1 million acres) of plantations have been seized, with nearly half transferred to nascent state firm Agrinas Palma Nusantara, catapulting it into the world's largest palm oil company by land size.
The crackdown ordered by President Prabowo Subianto is the biggest structural change in Indonesia's palm industry and has brought a total of 5 million hectares under military scrutiny. That is about 30% of the country's total palm oil acreage and an area bigger than the Netherlands.
The territory could eventually be handed to Agrinas, a company industry experts say is ill-equipped to manage it.
The president's office and Agrinas did not respond to Reuters requests for comment.
"We are determined that there will be no more corruption cases that cannot be investigated, no more untouchables," Prabowo told his cabinet on Monday while listing the seizures as one of his most notable achievements since coming to power in October 2024. Reuters
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New biodiesel mandate of Indonesia to help global palm oil prices
Chennai: India’s purchases of palm oil from Malaysia reached 312,000 tonnes in September, the highest level in 11 months. This surge is contributing to tighter supplies of cooking oils worldwide. The price of palm oil is now staying above 4,400 Malaysian ringgit per tonne, supported by potential new biofuel rules in Indonesia and reduced soybean oil exports from the United States, Brazil, and Argentina, reports The Hindu businessline.
Experts warn that shoppers could face consistently higher prices for cooking oil into the year 2026.
A report from the Malaysian Palm Oil Council (MPOC) stated that the country’s palm oil exports saw a significant jump in September. This was driven mostly by a major recovery in shipments to India, providing an important boost for the world’s biggest buyer of edible oil.
Overall exports grew by 7.7% from the previous month to 1.42 million tonnes, with the South Asia region, led by India, showing the strongest growth.
Despite sending more oil abroad, the amount of palm oil stored in Malaysia climbed to 2.36 million tonnes, the highest in nearly two years. Local use returned to normal levels after a record high in August.
In September, palm oil was more expensive than soybean oil in key markets like India and Europe. Analysts point to a potential new rule in Indonesia that would require more palm oil to be used for biofuel. This could significantly reduce the amount available for export to global food markets.
Looking ahead, the supply of all major vegetable oils is expected to remain tight. Soybean oil exports from the Americas are forecast to fall sharply because more is being used for biofuel at home. Supplies of sunflower oil are also tight, keeping its price high.
As a major importer, India is likely to feel the effects of these constrained supplies. With existing stocks of palm oil already high in major consuming countries, buyers are expected to be careful with new purchases. Overall, global vegetable oil prices are predicted to remain firm through 2025, with Malaysian palm oil prices holding steady. However, the market remains cautious due to high stockpiles in countries like China and India, and increasing trade tensions. Bioenergy Times
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MPOC sees Indonesia’s B50 requiring 3M tons more palm oil than B40
In Malaysia, the Malaysian Palm Oil Council says Indonesia’s B50 program is estimated to require around 17 million tons of palm oil for blending – an increase of 3 million tons from the current B40 mandate, equivalent to roughly 35% of Indonesia’s palm oil production. The country also consumes around 10 million tons for food purposes, leaving only about 22 million tons or less available for export if the B50 is implemented. This would result in a notable decline in exportable supply, as Indonesia has historically exported between 24 and 28 million tons of palm oil annually over the past five years.
Global vegetable oil demand in the coming season will rely heavily on sunflower oil, as exportable supplies of soybean oil from the US and Brazil are expected to decline sharply from 2.7 million tons in 2024/25 to 1.6 million tons in 2025/26 – a 41% drop due to stronger domestic biofuel demand.
In Argentina, the temporary export tax exemption on soybean products announced in late September spurred heavy forward soybean sales, particularly to China. These front-loaded exports are expected to curb crushing activity and limit soybean oil export availability in the coming months.
Although the Black Sea region began its sunflower seed harvest in September, sunflower oil prices have remained firm, continuing to lead the vegetable oil complex. In mid-October, sunflower oil in the European market traded at USD1,360 per tonne, about USD75 higher than palm oil and USD100 above soybean oil, reflecting tight and uncertain supply conditions.
Meanwhile, the ongoing US-China trade conflict has started to cause a buildup in US soybean stocks, as the country began harvesting its crop in September and October. China has suspended soybean imports from the US since May 2025, sourcing almost entirely from South America. Although stronger domestic crushing activity and higher soybean oil consumption in the US are expected under the 45Z biofuel policy in 2026, which prioritizes domestically produced feedstock, these factors are insufficient to offset the sharp decline in exports to China. Biofuels Digest
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Fear grips Indonesian palm oil industry as military seizes plantations
By Gayatri Suroyo and Bernadette Christina
SAMPIT, Indonesia, Oct 23 (Reuters) - Indonesian soldiers in fatigues marched onto a private palm oil plantation on Borneo island in late June and posted a signboard declaring the estate under government control, its managers said.
The scene at the Melati Hanjalipan plantation exemplifies a sweeping military-backed takeover that has sent a chill through the world's biggest palm oil producer and its 16-million-strong workforce.
Around 3.7 million hectares (9.1 million acres) of plantations have been seized, with nearly half transferred to nascent state firm Agrinas Palma Nusantara, catapulting it into the world's largest palm oil company by land size.
The crackdown ordered by President Prabowo Subianto is the biggest structural change in Indonesia's palm industry and has brought a total of 5 million hectares under military scrutiny. That is about 30% of the country's total palm oil acreage and an area bigger than the Netherlands.
The territory could eventually be handed to Agrinas, a company industry experts say is ill-equipped to manage it.
The president's office and Agrinas did not respond to Reuters requests for comment.
"We are determined that there will be no more corruption cases that cannot be investigated, no more untouchables," Prabowo told his cabinet on Monday while listing the seizures as one of his most notable achievements since coming to power in October 2024. Reuters
---------
New biodiesel mandate of Indonesia to help global palm oil prices
Chennai: India’s purchases of palm oil from Malaysia reached 312,000 tonnes in September, the highest level in 11 months. This surge is contributing to tighter supplies of cooking oils worldwide. The price of palm oil is now staying above 4,400 Malaysian ringgit per tonne, supported by potential new biofuel rules in Indonesia and reduced soybean oil exports from the United States, Brazil, and Argentina, reports The Hindu businessline.
Experts warn that shoppers could face consistently higher prices for cooking oil into the year 2026.
A report from the Malaysian Palm Oil Council (MPOC) stated that the country’s palm oil exports saw a significant jump in September. This was driven mostly by a major recovery in shipments to India, providing an important boost for the world’s biggest buyer of edible oil.
Overall exports grew by 7.7% from the previous month to 1.42 million tonnes, with the South Asia region, led by India, showing the strongest growth.
Despite sending more oil abroad, the amount of palm oil stored in Malaysia climbed to 2.36 million tonnes, the highest in nearly two years. Local use returned to normal levels after a record high in August.
In September, palm oil was more expensive than soybean oil in key markets like India and Europe. Analysts point to a potential new rule in Indonesia that would require more palm oil to be used for biofuel. This could significantly reduce the amount available for export to global food markets.
Looking ahead, the supply of all major vegetable oils is expected to remain tight. Soybean oil exports from the Americas are forecast to fall sharply because more is being used for biofuel at home. Supplies of sunflower oil are also tight, keeping its price high.
As a major importer, India is likely to feel the effects of these constrained supplies. With existing stocks of palm oil already high in major consuming countries, buyers are expected to be careful with new purchases. Overall, global vegetable oil prices are predicted to remain firm through 2025, with Malaysian palm oil prices holding steady. However, the market remains cautious due to high stockpiles in countries like China and India, and increasing trade tensions. Bioenergy Times
--------
MPOC sees Indonesia’s B50 requiring 3M tons more palm oil than B40
In Malaysia, the Malaysian Palm Oil Council says Indonesia’s B50 program is estimated to require around 17 million tons of palm oil for blending – an increase of 3 million tons from the current B40 mandate, equivalent to roughly 35% of Indonesia’s palm oil production. The country also consumes around 10 million tons for food purposes, leaving only about 22 million tons or less available for export if the B50 is implemented. This would result in a notable decline in exportable supply, as Indonesia has historically exported between 24 and 28 million tons of palm oil annually over the past five years.
Global vegetable oil demand in the coming season will rely heavily on sunflower oil, as exportable supplies of soybean oil from the US and Brazil are expected to decline sharply from 2.7 million tons in 2024/25 to 1.6 million tons in 2025/26 – a 41% drop due to stronger domestic biofuel demand.
In Argentina, the temporary export tax exemption on soybean products announced in late September spurred heavy forward soybean sales, particularly to China. These front-loaded exports are expected to curb crushing activity and limit soybean oil export availability in the coming months.
Although the Black Sea region began its sunflower seed harvest in September, sunflower oil prices have remained firm, continuing to lead the vegetable oil complex. In mid-October, sunflower oil in the European market traded at USD1,360 per tonne, about USD75 higher than palm oil and USD100 above soybean oil, reflecting tight and uncertain supply conditions.
Meanwhile, the ongoing US-China trade conflict has started to cause a buildup in US soybean stocks, as the country began harvesting its crop in September and October. China has suspended soybean imports from the US since May 2025, sourcing almost entirely from South America. Although stronger domestic crushing activity and higher soybean oil consumption in the US are expected under the 45Z biofuel policy in 2026, which prioritizes domestically produced feedstock, these factors are insufficient to offset the sharp decline in exports to China. Biofuels Digest
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October 22, 2025
EU eases deforestation law for smallholders but keeps 2025 start
By Philip Blenkinsop
Summary
The law to ban the import of commodities such as palm oil and cocoa linked to forest destruction was due to take effect from the end of 2024. But it was delayed by a year last December, with a further 12-month postponement announced in September.
The EU executive, however, said on Tuesday the law should now go into effect on December 30, 2025, though with a reduced reporting burden for small operators and larger businesses being given six months before full checks and enforcement.
INDUSTRY, GOVERNMENT PUSHBACK AGAINST EU'S GREEN AGENDA
The ban on imports of commodities linked to forest destruction was a key part of the EU's green agenda, which is now facing pushback from industries and some governments that say the measures to fight climate change are too burdensome.
Trade partners such as Brazil, Indonesia and the United States have also argued the rules would be costly and hurt their exports to Europe. Reuters
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Brussels U-turns on anti-deforestation law delay
The surprise decision follows a string of unexpected changes to the EU’s main tool to end deforestation.
LUXEMBOURG — The European Commission has dropped a plan to delay its flagship anti-deforestation law, just a month after announcing it wanted to pause it for another year.
However, the EU executive has proposed a number of changes to the law to reduce paperwork, Environment Commissioner Roswall announced on Tuesday during the Environment Council meeting in Luxembourg.
The announcement follows a string of unexpected developments regarding the EU Deforestation-free Regulation(EUDR), which was enacted in 2023 and is designed to ensure products such as coffee, beef, cocoa and palm oil imported to the EU do not come from deforested land. It was already delayed by 12 months last year.
Under the new proposal, micro- and small businesses will still be given an extra year to comply.
The EUDR will come into force on December 30 this year as planned, however companies that can't comply immediately have a six-month grace period until June 30.
Only the company that first places a product onto the market will have to submit a due diligence statement for example, she said, with the aim of reducing paperwork and reducing the load on the IT system.
The European Parliament and Council of the EU must approve the Commission's proposal. Politico
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Indonesia’s palm oil industry becomes investment magnet
Indonesia’s palm oil sector attracted IDR52.7 trillion, or approximately $3.2 billion, in investment during the first nine months of this year, with the money going into enabling the country to capture more value out of its top commodity, the country’s Ministry of Investment reported.
Investment Minister Rosan Roeslani said palm oil was the third largest investment recipient, following nickel processing (IDR136.1 trillion) and copper (IDR61.2 trillion).
Palm oil-related investments have been witnessing quarterly growth. About IDR21 trillion in fresh investments went into Indonesia’s palm oil downstream sector in the third quarter of 2025 alone, up from IDR16.4 trillion seen in the second quarter and nearly IDR15.3 trillion in the first quarter.
According to Rosan, the figures were not mere pledges but actually reflected how much money the businesses had actually spent.
The archipelago nation exported IDR16.66 billion IDR worth of crude palm oil and processed products between January and August this year, soaring 35.23% year-on-year, data by the Central Statistics Agency showed.
The country attracted over IDR1.43 quadrillion in overall investments between January and September, 55.1% of which came from local investors. The Investor
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Malaysia records large improvement in palm oil exports; exports to India highest in 11 months
Presently, palm oil is trading at a premium to soybean oil in the global market.
Malaysia’s palm oil exports have risen by 102,000 tonnes (+7.7% month-on-month) to 1.42mn tonnes in September. The largest improvement came from South Asia, where exports to India reached the highest in 11 months. Shipments to Sub-Saharan Africa, the Middle East and North Africa (MENA), the Americas and Central Asia have also registered increases during September 2025.
This latest economic data comes from Malaysian Palm Oil Council (MPOC), which also noted that despite export growth outpacing production, the stock for palm oil in the nation is, in fact, currently at its highest in 22 months. This, MPOC said, is likely, because domestic consumption has normalising to its usual range of 300,000 to 350,000 tonnes per month, while imports also rose by 20,000 tonnes (+33.9% month-on-month), further contributing to the stock buildup.
Presently, palm oil is trading at a premium to soybean oil in the global market, priced US$42 per tonne higher than soybean oil in Europe and US$26 higher in India as of mid-October.
Speculation over Indonesia’s potential implementation of the B50 biodiesel mandate remains a key factor supporting palm oil prices, MPOC stated.
A little background on this development - The B50 programme is estimated to require around 17mn tonnes of palm oil for blending – an increase of 3mn tonnes from the current B40 mandate, equivalent to roughly 35% of Indonesia’s palm oil production. The country also consumes around 10mn tonnes for food purposes, leaving only about 22n tonnes or less available for export if the B50 is implemented.
This would result in a notable decline in exportable supply, as Indonesia has historically exported between 24 and 28 million tonnes of palm oil annually over the past five years.
MPOC anticipates that palm oil prices are projected to hold steady above RM4,400 per tonne but market sentiment will remain cautious amid weak crude oil prices, high vegetable oil inventories in major consuming markets (such as China and India), US – China trade tensions, and a buildup of global soybean stocks. Human Resources Online
EU eases deforestation law for smallholders but keeps 2025 start
By Philip Blenkinsop
Summary
- Law bans EU sales of commodities that have caused deforestation
- Pushback from industries and governments on EU's green agenda
- Reduced reporting needs for smallholders in low-risk countries
- Still needs approval from EU governments and EU parliament
The law to ban the import of commodities such as palm oil and cocoa linked to forest destruction was due to take effect from the end of 2024. But it was delayed by a year last December, with a further 12-month postponement announced in September.
The EU executive, however, said on Tuesday the law should now go into effect on December 30, 2025, though with a reduced reporting burden for small operators and larger businesses being given six months before full checks and enforcement.
INDUSTRY, GOVERNMENT PUSHBACK AGAINST EU'S GREEN AGENDA
The ban on imports of commodities linked to forest destruction was a key part of the EU's green agenda, which is now facing pushback from industries and some governments that say the measures to fight climate change are too burdensome.
Trade partners such as Brazil, Indonesia and the United States have also argued the rules would be costly and hurt their exports to Europe. Reuters
--------
Brussels U-turns on anti-deforestation law delay
The surprise decision follows a string of unexpected changes to the EU’s main tool to end deforestation.
LUXEMBOURG — The European Commission has dropped a plan to delay its flagship anti-deforestation law, just a month after announcing it wanted to pause it for another year.
However, the EU executive has proposed a number of changes to the law to reduce paperwork, Environment Commissioner Roswall announced on Tuesday during the Environment Council meeting in Luxembourg.
The announcement follows a string of unexpected developments regarding the EU Deforestation-free Regulation(EUDR), which was enacted in 2023 and is designed to ensure products such as coffee, beef, cocoa and palm oil imported to the EU do not come from deforested land. It was already delayed by 12 months last year.
Under the new proposal, micro- and small businesses will still be given an extra year to comply.
The EUDR will come into force on December 30 this year as planned, however companies that can't comply immediately have a six-month grace period until June 30.
Only the company that first places a product onto the market will have to submit a due diligence statement for example, she said, with the aim of reducing paperwork and reducing the load on the IT system.
The European Parliament and Council of the EU must approve the Commission's proposal. Politico
--------
Indonesia’s palm oil industry becomes investment magnet
Indonesia’s palm oil sector attracted IDR52.7 trillion, or approximately $3.2 billion, in investment during the first nine months of this year, with the money going into enabling the country to capture more value out of its top commodity, the country’s Ministry of Investment reported.
Investment Minister Rosan Roeslani said palm oil was the third largest investment recipient, following nickel processing (IDR136.1 trillion) and copper (IDR61.2 trillion).
Palm oil-related investments have been witnessing quarterly growth. About IDR21 trillion in fresh investments went into Indonesia’s palm oil downstream sector in the third quarter of 2025 alone, up from IDR16.4 trillion seen in the second quarter and nearly IDR15.3 trillion in the first quarter.
According to Rosan, the figures were not mere pledges but actually reflected how much money the businesses had actually spent.
The archipelago nation exported IDR16.66 billion IDR worth of crude palm oil and processed products between January and August this year, soaring 35.23% year-on-year, data by the Central Statistics Agency showed.
The country attracted over IDR1.43 quadrillion in overall investments between January and September, 55.1% of which came from local investors. The Investor
--------
Malaysia records large improvement in palm oil exports; exports to India highest in 11 months
Presently, palm oil is trading at a premium to soybean oil in the global market.
Malaysia’s palm oil exports have risen by 102,000 tonnes (+7.7% month-on-month) to 1.42mn tonnes in September. The largest improvement came from South Asia, where exports to India reached the highest in 11 months. Shipments to Sub-Saharan Africa, the Middle East and North Africa (MENA), the Americas and Central Asia have also registered increases during September 2025.
This latest economic data comes from Malaysian Palm Oil Council (MPOC), which also noted that despite export growth outpacing production, the stock for palm oil in the nation is, in fact, currently at its highest in 22 months. This, MPOC said, is likely, because domestic consumption has normalising to its usual range of 300,000 to 350,000 tonnes per month, while imports also rose by 20,000 tonnes (+33.9% month-on-month), further contributing to the stock buildup.
Presently, palm oil is trading at a premium to soybean oil in the global market, priced US$42 per tonne higher than soybean oil in Europe and US$26 higher in India as of mid-October.
Speculation over Indonesia’s potential implementation of the B50 biodiesel mandate remains a key factor supporting palm oil prices, MPOC stated.
A little background on this development - The B50 programme is estimated to require around 17mn tonnes of palm oil for blending – an increase of 3mn tonnes from the current B40 mandate, equivalent to roughly 35% of Indonesia’s palm oil production. The country also consumes around 10mn tonnes for food purposes, leaving only about 22n tonnes or less available for export if the B50 is implemented.
This would result in a notable decline in exportable supply, as Indonesia has historically exported between 24 and 28 million tonnes of palm oil annually over the past five years.
MPOC anticipates that palm oil prices are projected to hold steady above RM4,400 per tonne but market sentiment will remain cautious amid weak crude oil prices, high vegetable oil inventories in major consuming markets (such as China and India), US – China trade tensions, and a buildup of global soybean stocks. Human Resources Online
October 20, 2025
Indonesian President Prabowo hails $800 billion CPO corruption recovery as "positive sign"
Jakarta (ANTARA) - Indonesia's President Prabowo Subianto on Monday welcomed the return of Rp13.2 trillion (US$800 million) from a major crude palm oil export corruption case, calling it a "positive sign" on his administration's first anniversary.
Speaking after witnessing the handover at the Attorney General's Office in Jakarta, he emphasized that the recovery demonstrates the government’s determination to fight corruption.
"This coincides with the first year since I was inaugurated as President. I consider this a positive sign. It shows the government's and the Attorney General's strong and courageous efforts to serve the people and safeguard the nation's wealth," Prabowo said.
He stressed that Indonesia could prosper if its wealth is managed with integrity. "Our nation is rich. If we manage it well, with courage, we will rise quickly," he added.
Prabowo likened the recovered funds to building more than 8,000 schools or improving living conditions for five million coastal residents.
"With Rp13 trillion, we can renovate over 8,000 schools. If we allocate Rp22 billion per fishing village, that's enough to build 600 villages for our fishermen," he said.
The government plans to establish over 1,000 fishing villages by the end of 2026, each equipped with proper infrastructure and facilities.
Prabowo said the returned funds reflect the scale of financial losses from corruption in the natural resources sector, particularly palm oil. He criticized the companies involved for prioritizing exports over domestic needs.
"The products were extracted and shipped abroad while people struggled for weeks to access cooking oil. This is not just pure greed — it is a form of economic subversion," he stated. Antara News
--------
Indonesian President Prabowo says billions lost to illegal tin mining every year
JAKARTA - Indonesia is losing more than US$2 billion (S$2.59 billion) every year to illegal tin mining and smuggling, President Prabowo Subianto said on Oct 20.
The Indonesian leader ordered the authorities to step up enforcement earlier in October in islands rich in the metal used in everything from electronics to making glass.
“There are still many illegal mines,” he told reporters on Oct 20.
“The losses are quite significant, estimated at 40 trillion rupiah (S$3.1 billion) per year, and this has been going on for almost 20 years.”
Mr Prabowo said the military was involved in operations to stop illegal tin smuggling from the Bangka-Belitung Islands, a hub for the illicit activity.
“Over 20 years, that’s 800 trillion. What could we build with that? What kind of country could we build with such resources?” he asked. Straits Times
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The secret ingredient in your daily life: why Malaysian palm oil is used around the world
Found everywhere from food products to biofuel, this vegetable oil is preferred for its versatility, safety and sustainable production
In partnership with:
MPOC
You might not realise it, but there is one ingredient that appears in almost everything you use every day, from instant noodles to ice cream, lipstick and laundry detergent. Its name? Palm oil.
More specifically, Malaysian palm oil. The country is one of the world’s top producers of this widely consumed vegetable oil, supplying various industries across the globe.
“It is the most versatile and safest vegetable oil, and therefore one of the most widely consumed oils on the market,” says Professor Tan Chin Ping, a food scientist who has spent more than two decades studying the quality, safety and processing of palm oil in Malaysia.
Palm oil consumption has soared over the past four decades. In 1980, global demand was about 5 million tonnes annually. By 2020, that figure had grown by more than 15 times to over 79 million tonnes per year. Tan notes that palm oil accounts for about 40 per cent of the world’s vegetable oil consumption, with Malaysia exporting it to nearly 160 countries.
Palm oil is found in a vast array of products ranging from margarine, dairy cream and baked goods to cosmetics, detergents and biofuel.
A safer, more stable oil
One reason palm oil has become so ubiquitous is its stability under heat. Tan’s research focuses on how the oil performs in high-temperature cooking, as is used for instant noodles, potato chips and baked goods.
“At such high temperatures, many vegetable oils will have created harmful by-products or are not stable,” he explains. “You eventually lose some of the essential nutrients. But palm oil is relatively very stable, and that gives it the opportunity to be widely applied in all kinds of high-heat treatment, such as frying or baking.”
This high-heat stability not only preserves the oil’s quality, but it also helps extend the shelf life of fried foods, making palm oil a preferred choice in large-scale food production. SCMP
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Indonesian President Prabowo hails $800 billion CPO corruption recovery as "positive sign"
Jakarta (ANTARA) - Indonesia's President Prabowo Subianto on Monday welcomed the return of Rp13.2 trillion (US$800 million) from a major crude palm oil export corruption case, calling it a "positive sign" on his administration's first anniversary.
Speaking after witnessing the handover at the Attorney General's Office in Jakarta, he emphasized that the recovery demonstrates the government’s determination to fight corruption.
"This coincides with the first year since I was inaugurated as President. I consider this a positive sign. It shows the government's and the Attorney General's strong and courageous efforts to serve the people and safeguard the nation's wealth," Prabowo said.
He stressed that Indonesia could prosper if its wealth is managed with integrity. "Our nation is rich. If we manage it well, with courage, we will rise quickly," he added.
Prabowo likened the recovered funds to building more than 8,000 schools or improving living conditions for five million coastal residents.
"With Rp13 trillion, we can renovate over 8,000 schools. If we allocate Rp22 billion per fishing village, that's enough to build 600 villages for our fishermen," he said.
The government plans to establish over 1,000 fishing villages by the end of 2026, each equipped with proper infrastructure and facilities.
Prabowo said the returned funds reflect the scale of financial losses from corruption in the natural resources sector, particularly palm oil. He criticized the companies involved for prioritizing exports over domestic needs.
"The products were extracted and shipped abroad while people struggled for weeks to access cooking oil. This is not just pure greed — it is a form of economic subversion," he stated. Antara News
--------
Indonesian President Prabowo says billions lost to illegal tin mining every year
JAKARTA - Indonesia is losing more than US$2 billion (S$2.59 billion) every year to illegal tin mining and smuggling, President Prabowo Subianto said on Oct 20.
The Indonesian leader ordered the authorities to step up enforcement earlier in October in islands rich in the metal used in everything from electronics to making glass.
“There are still many illegal mines,” he told reporters on Oct 20.
“The losses are quite significant, estimated at 40 trillion rupiah (S$3.1 billion) per year, and this has been going on for almost 20 years.”
Mr Prabowo said the military was involved in operations to stop illegal tin smuggling from the Bangka-Belitung Islands, a hub for the illicit activity.
“Over 20 years, that’s 800 trillion. What could we build with that? What kind of country could we build with such resources?” he asked. Straits Times
--------
The secret ingredient in your daily life: why Malaysian palm oil is used around the world
Found everywhere from food products to biofuel, this vegetable oil is preferred for its versatility, safety and sustainable production
In partnership with:
MPOC
You might not realise it, but there is one ingredient that appears in almost everything you use every day, from instant noodles to ice cream, lipstick and laundry detergent. Its name? Palm oil.
More specifically, Malaysian palm oil. The country is one of the world’s top producers of this widely consumed vegetable oil, supplying various industries across the globe.
“It is the most versatile and safest vegetable oil, and therefore one of the most widely consumed oils on the market,” says Professor Tan Chin Ping, a food scientist who has spent more than two decades studying the quality, safety and processing of palm oil in Malaysia.
Palm oil consumption has soared over the past four decades. In 1980, global demand was about 5 million tonnes annually. By 2020, that figure had grown by more than 15 times to over 79 million tonnes per year. Tan notes that palm oil accounts for about 40 per cent of the world’s vegetable oil consumption, with Malaysia exporting it to nearly 160 countries.
Palm oil is found in a vast array of products ranging from margarine, dairy cream and baked goods to cosmetics, detergents and biofuel.
A safer, more stable oil
One reason palm oil has become so ubiquitous is its stability under heat. Tan’s research focuses on how the oil performs in high-temperature cooking, as is used for instant noodles, potato chips and baked goods.
“At such high temperatures, many vegetable oils will have created harmful by-products or are not stable,” he explains. “You eventually lose some of the essential nutrients. But palm oil is relatively very stable, and that gives it the opportunity to be widely applied in all kinds of high-heat treatment, such as frying or baking.”
This high-heat stability not only preserves the oil’s quality, but it also helps extend the shelf life of fried foods, making palm oil a preferred choice in large-scale food production. SCMP
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October 18, 2025
Unilever Oleochemical Indonesia, First Indonesian Company Using Biomethane from Palm Waste to Cut Emissions in Indonesia
By the Editorial Team of Sawit Indonesia
Unilever is using biomethane made from palm oil waste to help lower emissions at our facility in Indonesia. Discover how we're working to grow our business more sustainably and inspire positive change in the palm oil industry.
To make our palm oil supply chain more transparent and traceable, and help maintain 'no deforestation' for this key commodity, Unilever is working directly with producers and mills, bypassing traditional intermediaries and bringing much of our palm oil refining in-house.
To help ensure that more of the palm-derived ingredients that create lather in many of our global products are made this way, we've recently expanded Unilever Oleochemical Indonesia (UOI), our palm oil processing facility in Sei Mangkei, North Sumatra.
The challenge has been that following this expansion, UOI is now the largest greenhouse gas (GHG) emitting site in Unilever's global operations. To meet our target of reducing our global Scope 1 and 2 emissions by 100% by 2030 (vs 2015), we need to act decisively to address the impact.
That's why we're shifting towards thermal renewable energy. In a market where fossil-based energy is still abundant, renewable energy opportunities are currently minimal – but corporates can help drive the clean energy transition. In the first commercial offtake of biomethane in Indonesia, Unilever has started replacing the natural gas we have been using at UOI with biomethane, created from palm oil effluent from local mills.
Expanding UOI is a key part of our strategy for growing our business, and we've invested heavily in the facility over the last decade. We're determined to ensure this growth does not come at the cost of our ability to deliver on our Scope 1 and 2 climate targets.
Partnering with KIS Group, a leading biogas provider in Asia, we've worked to secure biomethane supplies for the facility. Together, we're sourcing biomethane from two nearby mills that are included in our sustainable palm oil development program and are compliant with our People and Nature policy, KIS is transporting the compressed biomethane (bioCNG) to UOI using trucks that run on the bioCNG themselves.
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Indonesia considers new restrictions on palm oil exports amid rising demand for biodiesel
Indonesia is considering introducing new restrictions on crude palm oil (CPO) exports as part of its ambitious plan to expand domestic biodiesel production.
Energy Minister Bahlil Lahadalia announced the new export regulations in conjunction with the launch of the B50 biodiesel blending program on October 14, according to Millingmea.
The B50 program, scheduled to launch in the second half of 2026, will require diesel to be blended with 50% palm oil, up from the current 40% mandated by the B40. This shift is estimated to increase domestic palm oil demand by 5.3 million tonnes.
To meet the increased demand, the government is considering a range of measures, including expanding oil palm plantations and introducing Domestic Market Obligations (DMOs), which require exporters to allocate a portion of their output for local consumption.
Lahadalia emphasized that, while a final decision has not yet been made, export regulations remain a viable option to support the biodiesel initiative.
Analysts warn that export restrictions could lead to a reduction in global supply and higher prices for edible oils, particularly in countries heavily dependent on Indonesian palm oil.
The government’s discussions are taking place at a time when global food security and commodity prices are under close scrutiny. Analysts note that any measures to restrict palm oil exports could impact entire supply chains, affecting prices and availability worldwide.
It was previously announced that the country intends to completely cease importing the fuel following the launch of the B50 biodiesel blending program.
For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.
It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data. UKR Agraconsult
---------
Palm Oil Isn’t Inherently Bad, and Olive Oil Isn’t Inherently Good, Scientists Say
Researchers argue that the vegetable oil industry is haunted by narratives and myths about different types of oil crops, but the reality is much more nuanced.
Palm oil isn’t inherently bad, and olive oil isn’t inherently good, conservation scientists say in an opinion paper publishing October 16 in the Cell Press journal Cell Reports Sustainability. They argue that the vegetable oil industry is haunted by narratives and myths about different types of oil crops, but the reality is much more nuanced.
Almost all oils—including soybean, olive, coconut, and sesame oil—are associated with biodiversity and human rights issues in some contexts, depending on crop management and supply chains. The researchers call for greater transparency and regulation to enable consumers to make informed decisions about their oil choices.
“Crops don’t destroy forests and other biodiverse habitats; people do,” says author and conservation scientist Erik Meijaard of Borneo Futures and the University of Kent. “We want to bring more nuance to the discussion around vegetable oils, to make consumers aware that there’s nothing simple about it. I challenge everyone to look a little deeper, if you care about social and environmental issues.”
Palm oil has been vilified in the Global North due to concerns about tropical rainforest deforestation and the destruction of orangutan habitats. The researchers say that this concern is justified but that other oil crops can cause just as much ecological damage. For example, soybean production has driven massive deforestation in South America and is associated with large-scale pesticide use and related human health issues in South America, olive harvesting kills millions of roosting birds every year, and sesame production has been linked to human rights abuses in South Sudan and Ethiopia. Food Manufacturing
--------
Which oil is best? Experts address the question that everyone has an opinion on
New research explores how nutrition, sustainability and transparency intersect in the world of vegetable oils
Vegetable oils are everywhere, and almost everyone has an opinion about them. From clever marketing in supermarket aisles to headlines about deforestation, they have become both the heroes and villains of the modern diet. But vegetable oils are vital to our lives and can help to address food insecurity.
Consumers trying to make ethical and sustainable purchases find themselves at odds with a marketplace where clickbait often masks reality and reliable information about traceability is often missing or hard to find. A pot of “palm-oil-free” peanut butter does not necessarily disclose what the palm oil was replaced with, or how and where the peanuts were produced.
In a market flooded with controversy and conflicting messages, informed consumption is a challenge. Which oils should we really be using and what’s the truth behind their production? The Independent
---------
Unilever Oleochemical Indonesia, First Indonesian Company Using Biomethane from Palm Waste to Cut Emissions in Indonesia
By the Editorial Team of Sawit Indonesia
Unilever is using biomethane made from palm oil waste to help lower emissions at our facility in Indonesia. Discover how we're working to grow our business more sustainably and inspire positive change in the palm oil industry.
To make our palm oil supply chain more transparent and traceable, and help maintain 'no deforestation' for this key commodity, Unilever is working directly with producers and mills, bypassing traditional intermediaries and bringing much of our palm oil refining in-house.
To help ensure that more of the palm-derived ingredients that create lather in many of our global products are made this way, we've recently expanded Unilever Oleochemical Indonesia (UOI), our palm oil processing facility in Sei Mangkei, North Sumatra.
The challenge has been that following this expansion, UOI is now the largest greenhouse gas (GHG) emitting site in Unilever's global operations. To meet our target of reducing our global Scope 1 and 2 emissions by 100% by 2030 (vs 2015), we need to act decisively to address the impact.
That's why we're shifting towards thermal renewable energy. In a market where fossil-based energy is still abundant, renewable energy opportunities are currently minimal – but corporates can help drive the clean energy transition. In the first commercial offtake of biomethane in Indonesia, Unilever has started replacing the natural gas we have been using at UOI with biomethane, created from palm oil effluent from local mills.
Expanding UOI is a key part of our strategy for growing our business, and we've invested heavily in the facility over the last decade. We're determined to ensure this growth does not come at the cost of our ability to deliver on our Scope 1 and 2 climate targets.
Partnering with KIS Group, a leading biogas provider in Asia, we've worked to secure biomethane supplies for the facility. Together, we're sourcing biomethane from two nearby mills that are included in our sustainable palm oil development program and are compliant with our People and Nature policy, KIS is transporting the compressed biomethane (bioCNG) to UOI using trucks that run on the bioCNG themselves.
---------
Indonesia considers new restrictions on palm oil exports amid rising demand for biodiesel
Indonesia is considering introducing new restrictions on crude palm oil (CPO) exports as part of its ambitious plan to expand domestic biodiesel production.
Energy Minister Bahlil Lahadalia announced the new export regulations in conjunction with the launch of the B50 biodiesel blending program on October 14, according to Millingmea.
The B50 program, scheduled to launch in the second half of 2026, will require diesel to be blended with 50% palm oil, up from the current 40% mandated by the B40. This shift is estimated to increase domestic palm oil demand by 5.3 million tonnes.
To meet the increased demand, the government is considering a range of measures, including expanding oil palm plantations and introducing Domestic Market Obligations (DMOs), which require exporters to allocate a portion of their output for local consumption.
Lahadalia emphasized that, while a final decision has not yet been made, export regulations remain a viable option to support the biodiesel initiative.
Analysts warn that export restrictions could lead to a reduction in global supply and higher prices for edible oils, particularly in countries heavily dependent on Indonesian palm oil.
The government’s discussions are taking place at a time when global food security and commodity prices are under close scrutiny. Analysts note that any measures to restrict palm oil exports could impact entire supply chains, affecting prices and availability worldwide.
It was previously announced that the country intends to completely cease importing the fuel following the launch of the B50 biodiesel blending program.
For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.
It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data. UKR Agraconsult
---------
Palm Oil Isn’t Inherently Bad, and Olive Oil Isn’t Inherently Good, Scientists Say
Researchers argue that the vegetable oil industry is haunted by narratives and myths about different types of oil crops, but the reality is much more nuanced.
Palm oil isn’t inherently bad, and olive oil isn’t inherently good, conservation scientists say in an opinion paper publishing October 16 in the Cell Press journal Cell Reports Sustainability. They argue that the vegetable oil industry is haunted by narratives and myths about different types of oil crops, but the reality is much more nuanced.
Almost all oils—including soybean, olive, coconut, and sesame oil—are associated with biodiversity and human rights issues in some contexts, depending on crop management and supply chains. The researchers call for greater transparency and regulation to enable consumers to make informed decisions about their oil choices.
“Crops don’t destroy forests and other biodiverse habitats; people do,” says author and conservation scientist Erik Meijaard of Borneo Futures and the University of Kent. “We want to bring more nuance to the discussion around vegetable oils, to make consumers aware that there’s nothing simple about it. I challenge everyone to look a little deeper, if you care about social and environmental issues.”
Palm oil has been vilified in the Global North due to concerns about tropical rainforest deforestation and the destruction of orangutan habitats. The researchers say that this concern is justified but that other oil crops can cause just as much ecological damage. For example, soybean production has driven massive deforestation in South America and is associated with large-scale pesticide use and related human health issues in South America, olive harvesting kills millions of roosting birds every year, and sesame production has been linked to human rights abuses in South Sudan and Ethiopia. Food Manufacturing
--------
Which oil is best? Experts address the question that everyone has an opinion on
New research explores how nutrition, sustainability and transparency intersect in the world of vegetable oils
Vegetable oils are everywhere, and almost everyone has an opinion about them. From clever marketing in supermarket aisles to headlines about deforestation, they have become both the heroes and villains of the modern diet. But vegetable oils are vital to our lives and can help to address food insecurity.
Consumers trying to make ethical and sustainable purchases find themselves at odds with a marketplace where clickbait often masks reality and reliable information about traceability is often missing or hard to find. A pot of “palm-oil-free” peanut butter does not necessarily disclose what the palm oil was replaced with, or how and where the peanuts were produced.
In a market flooded with controversy and conflicting messages, informed consumption is a challenge. Which oils should we really be using and what’s the truth behind their production? The Independent
---------
October 17, 2025
Why Indonesia matters for U.S. soy
Written by Jim Sutter, CEO of the U.S. Soybean Export Council
Since the early 1980s, the Indonesia-U.S. Soy partnership has grown into one of the most important in Southeast Asia. For U.S. soybean farmers, processors, and exporters, USSEC’s work with Indonesian buyers of U.S. Soy continues to create opportunities in one of the region’s most dynamic and promising markets. It’s projected to become the world’s fourth-largest economy by 2050.
With a population of over 280 million people spread across more than 17,500 islands, Indonesia is the world’s fourth most populous country. Its location along a key global trade route, combined with vast natural resources and fast-growing urban centers, makes it a hub of commerce in the region. Today, more than half of Indonesians live in cities, fueling steady demand for food, consumer goods, and services.
Even though the middle class has recently contracted, mid-to long-term potential is still there. With the right reforms and policies, demand for high-quality foods and strong supply chains will continue to expand. That’s where U.S. Soy is well-positioned to deliver.
Balancing the Trade Relationship
The U.S. is already one of Indonesia’s largest trading partners. In 2024, trade between the two countries topped $38 billion, but the balance has long leaned in Indonesia’s favor. Last year the U.S. posted a $17.9 billion deficit, with much of it due to palm oil, coffee, cocoa, and other agricultural imports. For U.S. exporters, Indonesia ranked as the 19th-largest market, taking in $10 billion in goods and services, while the U.S. imported $28 billion in return. Iowa Soybeans
---------
China’s Pivotal Role in the Silent Conflict in ASEAN’s Energy Future
Southeast Asia faces a critical challenge in balancing rapid economic growth with climate commitments, as most of its energy demand remains dependent on fossil fuels despite vast renewable potential. China plays a pivotal dual role in this transition, financing both coal and clean energy projects, and its future choices will determine whether ASEAN’s development and decarbonization goals can align.
Southeast Asia sits at the heart of the world’s energy transition dilemma. The region is growing faster than much of the world, with its collective GDP projected to rise by 4.1% in 2025 versus 3.0% globally. Governments in the region are racing to modernize and to create jobs for youthful populations. With a burgeoning middle class, rapid urbanization, and considerable infrastructural developments in the pipeline, its electricity use is climbing at one of the fastest rates anywhere. Indeed, ASEAN is set to account for more than a quarter of global energy demand growth through 2035.
Yet nearly 80% of that demand is still met by fossil fuels, mainly coal. The fault line between growth and climate pledges is widening – even though Southeast Asia’s renewable potential is immense. Indonesia, the region’s largest economy, is the world’s biggest producer of palm oil, which could well be converted into biofuel. Laos and Cambodia are rich in hydropower resources, while the Philippines and Vietnam have vast wind potential. Across the archipelagos of Indonesia, geothermal energy also offers a promising alternative. Coal still generates half of ASEAN’s electricity because it delivers cheap, dispatchable power at scale.
At the same time, eight of ten ASEAN members have adopted net-zero targets. Brunei, Cambodia, Laos, Malaysia, Singapore and Vietnam aim for 2050, Indonesia for 2060, and Thailand for 2065. Aligning with the global climate agenda sits uneasily alongside the developmental reality. The tension is simple and unavoidable: ASEAN must keep the lights on today while cutting emissions for tomorrow.
That contradiction defines ASEAN’s development path. No government can accept factories idling or homes going dark. In practice, security still means firm baseload at the lowest cost. Transition requires unprecedented investment in renewables, grids and storage. Reconciling these aims is no longer an abstract policy exercise. It is a credibility test for ASEAN’s development model.
China’s Role to Play?
No external partner looms larger in this balancing act than China. Beijing has long underwritten regional energy security. Indonesia and Vietnam rank among the top global recipients of Chinese coal finance, and Chinese investors back more than 70% of Indonesia’s captive coal capacity, much of it linked to minerals and industrial parks. At the same time, China has become the indispensable supplier of clean tech, channeling more than US$2.7 billion into renewables in Southeast Asia between 2013 and 2023 and helping anchor localized manufacturing hubs for solar panels, batteries, and electric vehicles. China supports both sides of the equation. It can entrench coal dependency or enable a leap toward cleaner power. The role it plays next will shape whether ASEAN’s growth and climate agendas converge.
There are already glimpses of how to square security with transition. At Indonesia’s Morowali Industrial Park, partners have launched a 200 MW solar project with 80 MWh of storage to serve nickel smelters. This is a proof of concept: clean power configured for heavy industry, with reliability built in. Likewise, the MoU between State Grid Corporation of China and PLN, Indonesia’s state utility, on grid upgrades signals the kind of transmission and distribution investment that improves system stability while creating space for more renewables.
These projects remain the exception. In ASEAN, the Chinese state appears to prefer long-standing, long-established mining projects or steadfast infrastructure construction undertakings, to more experimental, renewable energy-centric initiatives – even despite China’s strengths in innovation and diffusion in the latter. For every Morowali-style project, there are still dozens of conventional coal and gas plants under construction or discussion. Chinese credit and engineering pipelines in coal remain deep, and Southeast Asian governments are still tempted by them. In the absence of large-scale concessional finance delivered at speed by Western partners, the real measure will be whether Chinese firms pivot their capacity and financing toward dual-purpose projects that guarantee reliability and reduce emissions.
Many Southeast Asian governments, scarred by price spikes and blackouts, are cautious about moving too fast. The region could drift into a split landscape: coal to power factories and renewables to showcase at summits, with the gap between rhetoric and reality growing wider. The countercurrent is strong.
Yet these forays into renewable energy show what is possible when the needs and interests of both Chinese state-owned enterprises and capital, and domestic players in ASEAN, are firmly reconciled through careful negotiations. Indeed, China’s role is not fixed.
The Path Ahead
In September 2021, President Xi Jinping pledged to end support for new coal projects abroad – with ASEAN featuring prominently at the top of foreign policy agenda for technocrats in charge of determining projects for and methods of capital deployment and financing.
For ASEAN leaders meeting at this year’s summit, and for negotiators heading into COP30, the test is clear. The measure of progress is not another pledge or another capacity headline. It is whether partners, especially China, are ready to back projects that make security and transition inseparable: solar-plus-storage that runs factories at night, grids that absorb variable generation without outages, and green industrial parks that demonstrate clean power can be reliable power.
There is a second imperative. China US Focus
---------
Indonesia considering 1% sustainable aviation fuel blend by 2026, official says
JAKARTA, Oct 16 (Reuters) - Indonesia, the world's largest palm oil producer, is considering a plan to require international flights from Jakarta and Bali to use a 1% sustainable aviation fuel (SAF) blend starting from 2026, energy ministry official Edi Wibowo said on Thursday.
Indonesia's state energy firm Pertamina this year started producing SAF made partly from used cooking oil (UCO) in one of its refinery units, and is planning to convert two other refineries to process fuel from UCO.
"The regulation for the gradual implementation of SAF is currently being drafted, with a proposal that it will be started in 2026 with an initial implementation of 1%," Edi said.
Under the proposed regulation, Indonesia will seek to gradually increase the SAF blend to 5% by 2035.
Indonesia has the potential to produce 3-4 million kilolitres of UCO annually, according to an estimate from the Indonesia Palm Oil Strategic Studies think tank. Reuters
---------
President Prabowo Reaffirms Commitment to Law Enforcement, Corruption Eradication
President Prabowo Subianto emphasized his strong commitment to fully enforcing the law and eliminating corruption within the Government.
President Prabowo made the statement during a dialogue with Forbes Media Chairman and Editor-in-Chief Steve Forbes at the 2025 Forbes Global CEO Conference held at The St. Regis Hotel, Jakarta, on Wednesday (10/15).
The forum was attended by global business leaders and investors from various countries, where President Prabowo openly shared his insights and personal experiences regarding the challenges of combating corruption in the country.
The President described corruption as a “dangerous disease” that, if left untreated, could destroy a nation. “In my view, corruption is a disease. When it reaches stage four, like cancer, it becomes very difficult to cure. History shows that corruption can destroy countries, societies, and regimes. So yes, I am committed to tackling corruption,” he said.
President Prabowo then shared a personal story from his early days as Minister of Defense. He said he had firmly instructed all his family members to refrain from getting involved in any projects within the ministry.
However, he admitted that business temptations still existed. He recalled how he rejected a project proposal from a family member, even when they tried to offer cooperation proposals. “One day, a nephew of mine came to me with a project. I told him, ‘You’ve never been involved in the defense sector, you don’t understand it. So, no, find another business,” the President said.
During the forum, the President also outlined his administration’s concrete steps to crack down on illegal practices in the natural resources sector. He exemplified the eradication of illegal tin mining in Bangka Belitung Islands province, saving billions of dollars’ worth of state assets.
“I conducted military training programs using warships, aircraft, helicopters, and drones. We blockaded the two islands, preventing ships from entering or leaving without detection. As a result, we managed to stop the smuggling and save around US$2 billion,” he said.
In addition to the mining sector, President Prabowo also highlighted law enforcement against illegal palm oil plantations. He pointed out that five million hectares of plantation land had violated the law, and the Government took decisive action by revoking the companies’ concessions.
“I say, I am sworn to uphold the law. So, I ordered the Attorney General and the Audit Board to investigate. No matter the findings, if there are cases, revoke their concessions. And that is what we did,” the President said. Read more: https://setkab.go.id/en/president-prabowo-reaffirms-commitment-to-law-enforcement-corruption-eradication/
Why Indonesia matters for U.S. soy
Written by Jim Sutter, CEO of the U.S. Soybean Export Council
Since the early 1980s, the Indonesia-U.S. Soy partnership has grown into one of the most important in Southeast Asia. For U.S. soybean farmers, processors, and exporters, USSEC’s work with Indonesian buyers of U.S. Soy continues to create opportunities in one of the region’s most dynamic and promising markets. It’s projected to become the world’s fourth-largest economy by 2050.
With a population of over 280 million people spread across more than 17,500 islands, Indonesia is the world’s fourth most populous country. Its location along a key global trade route, combined with vast natural resources and fast-growing urban centers, makes it a hub of commerce in the region. Today, more than half of Indonesians live in cities, fueling steady demand for food, consumer goods, and services.
Even though the middle class has recently contracted, mid-to long-term potential is still there. With the right reforms and policies, demand for high-quality foods and strong supply chains will continue to expand. That’s where U.S. Soy is well-positioned to deliver.
Balancing the Trade Relationship
The U.S. is already one of Indonesia’s largest trading partners. In 2024, trade between the two countries topped $38 billion, but the balance has long leaned in Indonesia’s favor. Last year the U.S. posted a $17.9 billion deficit, with much of it due to palm oil, coffee, cocoa, and other agricultural imports. For U.S. exporters, Indonesia ranked as the 19th-largest market, taking in $10 billion in goods and services, while the U.S. imported $28 billion in return. Iowa Soybeans
---------
China’s Pivotal Role in the Silent Conflict in ASEAN’s Energy Future
Southeast Asia faces a critical challenge in balancing rapid economic growth with climate commitments, as most of its energy demand remains dependent on fossil fuels despite vast renewable potential. China plays a pivotal dual role in this transition, financing both coal and clean energy projects, and its future choices will determine whether ASEAN’s development and decarbonization goals can align.
Southeast Asia sits at the heart of the world’s energy transition dilemma. The region is growing faster than much of the world, with its collective GDP projected to rise by 4.1% in 2025 versus 3.0% globally. Governments in the region are racing to modernize and to create jobs for youthful populations. With a burgeoning middle class, rapid urbanization, and considerable infrastructural developments in the pipeline, its electricity use is climbing at one of the fastest rates anywhere. Indeed, ASEAN is set to account for more than a quarter of global energy demand growth through 2035.
Yet nearly 80% of that demand is still met by fossil fuels, mainly coal. The fault line between growth and climate pledges is widening – even though Southeast Asia’s renewable potential is immense. Indonesia, the region’s largest economy, is the world’s biggest producer of palm oil, which could well be converted into biofuel. Laos and Cambodia are rich in hydropower resources, while the Philippines and Vietnam have vast wind potential. Across the archipelagos of Indonesia, geothermal energy also offers a promising alternative. Coal still generates half of ASEAN’s electricity because it delivers cheap, dispatchable power at scale.
At the same time, eight of ten ASEAN members have adopted net-zero targets. Brunei, Cambodia, Laos, Malaysia, Singapore and Vietnam aim for 2050, Indonesia for 2060, and Thailand for 2065. Aligning with the global climate agenda sits uneasily alongside the developmental reality. The tension is simple and unavoidable: ASEAN must keep the lights on today while cutting emissions for tomorrow.
That contradiction defines ASEAN’s development path. No government can accept factories idling or homes going dark. In practice, security still means firm baseload at the lowest cost. Transition requires unprecedented investment in renewables, grids and storage. Reconciling these aims is no longer an abstract policy exercise. It is a credibility test for ASEAN’s development model.
China’s Role to Play?
No external partner looms larger in this balancing act than China. Beijing has long underwritten regional energy security. Indonesia and Vietnam rank among the top global recipients of Chinese coal finance, and Chinese investors back more than 70% of Indonesia’s captive coal capacity, much of it linked to minerals and industrial parks. At the same time, China has become the indispensable supplier of clean tech, channeling more than US$2.7 billion into renewables in Southeast Asia between 2013 and 2023 and helping anchor localized manufacturing hubs for solar panels, batteries, and electric vehicles. China supports both sides of the equation. It can entrench coal dependency or enable a leap toward cleaner power. The role it plays next will shape whether ASEAN’s growth and climate agendas converge.
There are already glimpses of how to square security with transition. At Indonesia’s Morowali Industrial Park, partners have launched a 200 MW solar project with 80 MWh of storage to serve nickel smelters. This is a proof of concept: clean power configured for heavy industry, with reliability built in. Likewise, the MoU between State Grid Corporation of China and PLN, Indonesia’s state utility, on grid upgrades signals the kind of transmission and distribution investment that improves system stability while creating space for more renewables.
These projects remain the exception. In ASEAN, the Chinese state appears to prefer long-standing, long-established mining projects or steadfast infrastructure construction undertakings, to more experimental, renewable energy-centric initiatives – even despite China’s strengths in innovation and diffusion in the latter. For every Morowali-style project, there are still dozens of conventional coal and gas plants under construction or discussion. Chinese credit and engineering pipelines in coal remain deep, and Southeast Asian governments are still tempted by them. In the absence of large-scale concessional finance delivered at speed by Western partners, the real measure will be whether Chinese firms pivot their capacity and financing toward dual-purpose projects that guarantee reliability and reduce emissions.
Many Southeast Asian governments, scarred by price spikes and blackouts, are cautious about moving too fast. The region could drift into a split landscape: coal to power factories and renewables to showcase at summits, with the gap between rhetoric and reality growing wider. The countercurrent is strong.
Yet these forays into renewable energy show what is possible when the needs and interests of both Chinese state-owned enterprises and capital, and domestic players in ASEAN, are firmly reconciled through careful negotiations. Indeed, China’s role is not fixed.
The Path Ahead
In September 2021, President Xi Jinping pledged to end support for new coal projects abroad – with ASEAN featuring prominently at the top of foreign policy agenda for technocrats in charge of determining projects for and methods of capital deployment and financing.
For ASEAN leaders meeting at this year’s summit, and for negotiators heading into COP30, the test is clear. The measure of progress is not another pledge or another capacity headline. It is whether partners, especially China, are ready to back projects that make security and transition inseparable: solar-plus-storage that runs factories at night, grids that absorb variable generation without outages, and green industrial parks that demonstrate clean power can be reliable power.
There is a second imperative. China US Focus
---------
Indonesia considering 1% sustainable aviation fuel blend by 2026, official says
JAKARTA, Oct 16 (Reuters) - Indonesia, the world's largest palm oil producer, is considering a plan to require international flights from Jakarta and Bali to use a 1% sustainable aviation fuel (SAF) blend starting from 2026, energy ministry official Edi Wibowo said on Thursday.
Indonesia's state energy firm Pertamina this year started producing SAF made partly from used cooking oil (UCO) in one of its refinery units, and is planning to convert two other refineries to process fuel from UCO.
"The regulation for the gradual implementation of SAF is currently being drafted, with a proposal that it will be started in 2026 with an initial implementation of 1%," Edi said.
Under the proposed regulation, Indonesia will seek to gradually increase the SAF blend to 5% by 2035.
Indonesia has the potential to produce 3-4 million kilolitres of UCO annually, according to an estimate from the Indonesia Palm Oil Strategic Studies think tank. Reuters
---------
President Prabowo Reaffirms Commitment to Law Enforcement, Corruption Eradication
President Prabowo Subianto emphasized his strong commitment to fully enforcing the law and eliminating corruption within the Government.
President Prabowo made the statement during a dialogue with Forbes Media Chairman and Editor-in-Chief Steve Forbes at the 2025 Forbes Global CEO Conference held at The St. Regis Hotel, Jakarta, on Wednesday (10/15).
The forum was attended by global business leaders and investors from various countries, where President Prabowo openly shared his insights and personal experiences regarding the challenges of combating corruption in the country.
The President described corruption as a “dangerous disease” that, if left untreated, could destroy a nation. “In my view, corruption is a disease. When it reaches stage four, like cancer, it becomes very difficult to cure. History shows that corruption can destroy countries, societies, and regimes. So yes, I am committed to tackling corruption,” he said.
President Prabowo then shared a personal story from his early days as Minister of Defense. He said he had firmly instructed all his family members to refrain from getting involved in any projects within the ministry.
However, he admitted that business temptations still existed. He recalled how he rejected a project proposal from a family member, even when they tried to offer cooperation proposals. “One day, a nephew of mine came to me with a project. I told him, ‘You’ve never been involved in the defense sector, you don’t understand it. So, no, find another business,” the President said.
During the forum, the President also outlined his administration’s concrete steps to crack down on illegal practices in the natural resources sector. He exemplified the eradication of illegal tin mining in Bangka Belitung Islands province, saving billions of dollars’ worth of state assets.
“I conducted military training programs using warships, aircraft, helicopters, and drones. We blockaded the two islands, preventing ships from entering or leaving without detection. As a result, we managed to stop the smuggling and save around US$2 billion,” he said.
In addition to the mining sector, President Prabowo also highlighted law enforcement against illegal palm oil plantations. He pointed out that five million hectares of plantation land had violated the law, and the Government took decisive action by revoking the companies’ concessions.
“I say, I am sworn to uphold the law. So, I ordered the Attorney General and the Audit Board to investigate. No matter the findings, if there are cases, revoke their concessions. And that is what we did,” the President said. Read more: https://setkab.go.id/en/president-prabowo-reaffirms-commitment-to-law-enforcement-corruption-eradication/
October 16, 2025
Prabowo Uncovers 1,000 Illegal Mines and 5 Million Hectares of Illegal Palm Oil Plantations: “The Law Must Be Enforced”
Jakarta — President Prabowo Subianto revealed that his administration had uncovered 1,000 illegal mines and 5 million hectares of unlawful palm oil plantations within the first year of his presidency. He stressed that the exploitation of the nation's wealth through illegal practices must stop—and that justice must prevail.
The President made the remarks during a dialogue titled “A Meeting of Minds” with Forbes Media Chairman Steve Forbes at the Forbes Global CEO Conference 2025, held at The St. Regis Jakarta on Wednesday (Oct. 15).
"I visited two islands in Indonesia, Bangka and Belitung, and we received reports of 1,000 illegal tin mines—1,000 across both islands. We're losing around 80 percent of our total tin production due to these illegal operations and smuggling. I say this has to stop," Prabowo stated.
He went on to explain that, following the crackdown on illegal mining, the government also reclaimed millions of hectares of unlawfully operated palm oil plantations through court rulings.
“I was told, 'Sir, out of the millions of hectares of palm oil plantations, about 5,000 hectares are illegal.' I said, 'What?' They replied, 'Not 5,000—five million hectares!'” Prabowo recounted.
“By the end of this month, we expect to have recovered approximately 3.7 million hectares of these illegal plantations,” he added.
Prabowo reaffirmed his commitment to enforcing the law and ensuring that the management of Indonesia's natural resources complies with regulations.
"I took an oath to uphold the law. I instructed my Attorney General and the national audit authority to investigate these violations. If wrongdoing is discovered, the concessions must be revoked—and that's exactly what we are doing," he asserted. Prabowo Subianto
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Indonesian army Told to Escort Seizure of Illegal Palm Oil Lands
KBRN, Jakarta: Indonesian President Prabowo Subianto revealed that he has ordered the Indonesian National Armed Forces (TNI) to escort the Attorney General's Office in seizing two illegal palm oil plantations totaling 100,000 hectares, based on an 18-year-old Supreme Court ruling that had been stalled.
Addressing over 400 global CEOs during a dialogue with Forbes Principal Steve Forbes at the Forbes Global CEO Conference 2025 in Jakarta on Wednesday evening, October 15, President Prabowo recounted the process under his leadership to execute the seizure.
"The first plantation was 50,000 hectares, and the second was 50,000 hectares, (and both) violated the law 18 years ago. There was a Supreme Court decision ordering (the state) to seize the two plantations. That Supreme Court decision was not executed for 18 years," President Prabowo stated, as quoted by antaranews.com.
The President explained that Attorney General ST Burhanuddin reported the reasons for the prolonged delay in executing the court decision.
"I gave the order to the TNI: Escort the Attorney General's Office. Escort the Supreme Audit Agency (BPK). Protect them! Go there and secure the area," President Prabowo asserted.
"As a result, we successfully took control of 100,000 hectares of plantation land without any issues. I believe this is an important point, the government must uphold the law, and I am firmly committed to doing so," he added.
In the same session, the President also disclosed that an estimated 3.7 million hectares of illegal palm oil plantations nationwide have been taken over by the state.
Beyond seizing illegal palm oil land, President Prabowo detailed his decision to establish a "blockade" around Bangka and Belitung Islands to prevent the smuggling of illegally mined tin out of the country.
The President noted he received reports of around 1,000 illegal tin mines on the two islands, estimating that Indonesia was losing 80 percent of the total tin production from Bangka Belitung due to smuggling.
"I emphasized, this must stop! I then ordered a training program in the waters of Bangka and Belitung Islands, involving warships, aircraft, helicopters, and drones. We blockaded the two islands. No vessel is allowed to enter or exit without being checked and its contents known, and with that, we successfully stopped the smuggling," the President said.
President Prabowo then recounted an instance where a small boat attempted to breach the blockade. "But we found tin inside that boat. Can you imagine? We immediately seized it (the illegal tin)," he said.
The President expressed confidence that continuous enforcement will save the state billions of US dollars in potential losses and is optimistic that national tin production will increase next year. Voice of Indonesia
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Trump targets China cooking oil trade - but sales were already tanking
Summary
"I believe that China purposefully not buying our Soybeans, and causing difficulty for our Soybean Farmers, is an Economically Hostile Act. We are considering terminating business with China having to do with Cooking Oil, and other elements of Trade, as retribution," Trump wrote on social media on Tuesday.
"As an example, we can easily produce Cooking Oil ourselves, we don't need to purchase it from China."
The U.S. was China's top market for used cooking oil (UCO), importing a record 1.27 million metric tons worth $1.1 billion in 2024. But after China cut tax rebates late last year and the U.S. imposed tariffs on Chinese goods this year, imports plunged 65% in January-August to 290,690 tons, or $286.7 million.
As such, Trump's comments would have "minimal" impact on the commodity, two UCO traders in China said on condition of anonymity as they were not authorized to speak to media.
"Domestic producers are now mainly taking orders for Europe and are no longer considering the U.S. market," said one of the traders. Reuters
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Trump's Cooking Oil Decision Could Have Huge Domino Effect on US farmers
President Trump’s social media post suggesting a boycott on Chinese cooking oil has major implications for the U.S. soybean industry. However, Minnesota Soybean Growers Association Executive Director Joe Smentek says it’s biofuels policy issue, not a trade issue. “What has been happening is China and some of these other countries either are saying something is used cooking oil when it’s palm oil, Argentinian soybean oil, or whole South American soybeans going over to China, getting crushed, and China is sending us back the oil,” said Smentek. ” In a lot of cases, it is barely used cooking oil and it’s about capturing these credits in California under their low-carbon fuel standards.” The recent change to the 45Z tax credit includes a slight penalty for imported feedstocks. Smentek emphasized that domestic soy oil, which is a byproduct of the soybean crush, should receive the lowest carbon score. “Something like used cooking oil could impact the farm economy in such a myriad of ways, it really shows how complicated this really is for our farmers with one little decision that seemingly wouldn’t affect farm policy can have a huge domino effect.” Red River Farm Network
Prabowo Uncovers 1,000 Illegal Mines and 5 Million Hectares of Illegal Palm Oil Plantations: “The Law Must Be Enforced”
Jakarta — President Prabowo Subianto revealed that his administration had uncovered 1,000 illegal mines and 5 million hectares of unlawful palm oil plantations within the first year of his presidency. He stressed that the exploitation of the nation's wealth through illegal practices must stop—and that justice must prevail.
The President made the remarks during a dialogue titled “A Meeting of Minds” with Forbes Media Chairman Steve Forbes at the Forbes Global CEO Conference 2025, held at The St. Regis Jakarta on Wednesday (Oct. 15).
"I visited two islands in Indonesia, Bangka and Belitung, and we received reports of 1,000 illegal tin mines—1,000 across both islands. We're losing around 80 percent of our total tin production due to these illegal operations and smuggling. I say this has to stop," Prabowo stated.
He went on to explain that, following the crackdown on illegal mining, the government also reclaimed millions of hectares of unlawfully operated palm oil plantations through court rulings.
“I was told, 'Sir, out of the millions of hectares of palm oil plantations, about 5,000 hectares are illegal.' I said, 'What?' They replied, 'Not 5,000—five million hectares!'” Prabowo recounted.
“By the end of this month, we expect to have recovered approximately 3.7 million hectares of these illegal plantations,” he added.
Prabowo reaffirmed his commitment to enforcing the law and ensuring that the management of Indonesia's natural resources complies with regulations.
"I took an oath to uphold the law. I instructed my Attorney General and the national audit authority to investigate these violations. If wrongdoing is discovered, the concessions must be revoked—and that's exactly what we are doing," he asserted. Prabowo Subianto
--------
Indonesian army Told to Escort Seizure of Illegal Palm Oil Lands
KBRN, Jakarta: Indonesian President Prabowo Subianto revealed that he has ordered the Indonesian National Armed Forces (TNI) to escort the Attorney General's Office in seizing two illegal palm oil plantations totaling 100,000 hectares, based on an 18-year-old Supreme Court ruling that had been stalled.
Addressing over 400 global CEOs during a dialogue with Forbes Principal Steve Forbes at the Forbes Global CEO Conference 2025 in Jakarta on Wednesday evening, October 15, President Prabowo recounted the process under his leadership to execute the seizure.
"The first plantation was 50,000 hectares, and the second was 50,000 hectares, (and both) violated the law 18 years ago. There was a Supreme Court decision ordering (the state) to seize the two plantations. That Supreme Court decision was not executed for 18 years," President Prabowo stated, as quoted by antaranews.com.
The President explained that Attorney General ST Burhanuddin reported the reasons for the prolonged delay in executing the court decision.
"I gave the order to the TNI: Escort the Attorney General's Office. Escort the Supreme Audit Agency (BPK). Protect them! Go there and secure the area," President Prabowo asserted.
"As a result, we successfully took control of 100,000 hectares of plantation land without any issues. I believe this is an important point, the government must uphold the law, and I am firmly committed to doing so," he added.
In the same session, the President also disclosed that an estimated 3.7 million hectares of illegal palm oil plantations nationwide have been taken over by the state.
Beyond seizing illegal palm oil land, President Prabowo detailed his decision to establish a "blockade" around Bangka and Belitung Islands to prevent the smuggling of illegally mined tin out of the country.
The President noted he received reports of around 1,000 illegal tin mines on the two islands, estimating that Indonesia was losing 80 percent of the total tin production from Bangka Belitung due to smuggling.
"I emphasized, this must stop! I then ordered a training program in the waters of Bangka and Belitung Islands, involving warships, aircraft, helicopters, and drones. We blockaded the two islands. No vessel is allowed to enter or exit without being checked and its contents known, and with that, we successfully stopped the smuggling," the President said.
President Prabowo then recounted an instance where a small boat attempted to breach the blockade. "But we found tin inside that boat. Can you imagine? We immediately seized it (the illegal tin)," he said.
The President expressed confidence that continuous enforcement will save the state billions of US dollars in potential losses and is optimistic that national tin production will increase next year. Voice of Indonesia
--------
Trump targets China cooking oil trade - but sales were already tanking
Summary
- U.S. cooking oil imports from China dropped 65% this year
- Trump's comments have minimal impact, traders say
- China shifts soybean purchases to Brazil, Argentina
"I believe that China purposefully not buying our Soybeans, and causing difficulty for our Soybean Farmers, is an Economically Hostile Act. We are considering terminating business with China having to do with Cooking Oil, and other elements of Trade, as retribution," Trump wrote on social media on Tuesday.
"As an example, we can easily produce Cooking Oil ourselves, we don't need to purchase it from China."
The U.S. was China's top market for used cooking oil (UCO), importing a record 1.27 million metric tons worth $1.1 billion in 2024. But after China cut tax rebates late last year and the U.S. imposed tariffs on Chinese goods this year, imports plunged 65% in January-August to 290,690 tons, or $286.7 million.
As such, Trump's comments would have "minimal" impact on the commodity, two UCO traders in China said on condition of anonymity as they were not authorized to speak to media.
"Domestic producers are now mainly taking orders for Europe and are no longer considering the U.S. market," said one of the traders. Reuters
--------
Trump's Cooking Oil Decision Could Have Huge Domino Effect on US farmers
President Trump’s social media post suggesting a boycott on Chinese cooking oil has major implications for the U.S. soybean industry. However, Minnesota Soybean Growers Association Executive Director Joe Smentek says it’s biofuels policy issue, not a trade issue. “What has been happening is China and some of these other countries either are saying something is used cooking oil when it’s palm oil, Argentinian soybean oil, or whole South American soybeans going over to China, getting crushed, and China is sending us back the oil,” said Smentek. ” In a lot of cases, it is barely used cooking oil and it’s about capturing these credits in California under their low-carbon fuel standards.” The recent change to the 45Z tax credit includes a slight penalty for imported feedstocks. Smentek emphasized that domestic soy oil, which is a byproduct of the soybean crush, should receive the lowest carbon score. “Something like used cooking oil could impact the farm economy in such a myriad of ways, it really shows how complicated this really is for our farmers with one little decision that seemingly wouldn’t affect farm policy can have a huge domino effect.” Red River Farm Network
October 15, 2025
China's act on US soybean may pressure crude palm oil's competitiveness — RHB Research
KUALA LUMPUR (Oct 15): China's decision to halt purchases of US soybeans for the current season is expected to depress soybean oil prices, thereby eroding the price competitiveness of crude palm oil (CPO), according to RHB Research.
The research house, in a note on Wednesday, cited data from Oil World forecasting a multi-year high in the end-August 2026 stock/usage ratio for soybeans, reaching 12%.
Furthermore, the global soybean stock/usage ratio is expected to remain at an extremely high level of 29.5% in 2026, indicating a sustained period of ample supply that will weigh on vegetable oil markets.
"We have already seen the CPO-SBO (soybean oil) price discount narrow by 55% over the last three weeks, to US$42 (RM177.39) per tonne (from a high of US$263 per tonne in June 2025)," said RHB.
Should soybean oil prices reduce further, this could result in demand for palm oil being destroyed, it said.
"We saw this happening in the early months of 2025, when India switched its buying to SBO instead of CPO, resulting in year-to-date August 2025 imports of palm oil from India falling 18% year-on-year. Assuming the price discount remains narrow, we would likely see palm oil imports remaining relatively muted going forward."
RHB kept its neutral stance on the sector but raised its CPO price assumptions to RM4,350 per tonne for 2025 (from RM4,100 per tonne) and to RM4,250 per tonne (from RM4,000 per tonne) for 2026. The Edge
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India needs predictable palm oil tariff policy to end decade of market chaos: Study
Synopsis
India, a major edible oil importer, faces price volatility due to frequent tariff changes. A new study urges a stable, multi-year tariff policy. This will help control prices, boost investment, and benefit consumers. The recommendations aim to create predictability for suppliers and refiners. Focusing on palm oil tariffs is key to market stability and reducing import reliance.
India, the world's largest cooking oil importer, should adopt a transparent and multi-year tariff framework for edible oils to end a decade of policy volatility that has destabilised prices and deterred investment, according to a new study.
The country, which imports 60-65 per cent of its edible oil needs, has changed tariffs more than 25 times since 2015, creating uncertainty across the supply chain from international suppliers to consumers, the research said.
The research, Tariff Volatility and Stakeholder Dynamics in India's Edible Oil Sector, was jointly conducted by the Centre for Economic Studies and Planning, Jawaharlal Nehru University, VeK Policy Advisory and Research, and Assocham. Economic Times
---------
China's act on US soybean may pressure crude palm oil's competitiveness — RHB Research
KUALA LUMPUR (Oct 15): China's decision to halt purchases of US soybeans for the current season is expected to depress soybean oil prices, thereby eroding the price competitiveness of crude palm oil (CPO), according to RHB Research.
The research house, in a note on Wednesday, cited data from Oil World forecasting a multi-year high in the end-August 2026 stock/usage ratio for soybeans, reaching 12%.
Furthermore, the global soybean stock/usage ratio is expected to remain at an extremely high level of 29.5% in 2026, indicating a sustained period of ample supply that will weigh on vegetable oil markets.
"We have already seen the CPO-SBO (soybean oil) price discount narrow by 55% over the last three weeks, to US$42 (RM177.39) per tonne (from a high of US$263 per tonne in June 2025)," said RHB.
Should soybean oil prices reduce further, this could result in demand for palm oil being destroyed, it said.
"We saw this happening in the early months of 2025, when India switched its buying to SBO instead of CPO, resulting in year-to-date August 2025 imports of palm oil from India falling 18% year-on-year. Assuming the price discount remains narrow, we would likely see palm oil imports remaining relatively muted going forward."
RHB kept its neutral stance on the sector but raised its CPO price assumptions to RM4,350 per tonne for 2025 (from RM4,100 per tonne) and to RM4,250 per tonne (from RM4,000 per tonne) for 2026. The Edge
---------
India needs predictable palm oil tariff policy to end decade of market chaos: Study
Synopsis
India, a major edible oil importer, faces price volatility due to frequent tariff changes. A new study urges a stable, multi-year tariff policy. This will help control prices, boost investment, and benefit consumers. The recommendations aim to create predictability for suppliers and refiners. Focusing on palm oil tariffs is key to market stability and reducing import reliance.
India, the world's largest cooking oil importer, should adopt a transparent and multi-year tariff framework for edible oils to end a decade of policy volatility that has destabilised prices and deterred investment, according to a new study.
The country, which imports 60-65 per cent of its edible oil needs, has changed tariffs more than 25 times since 2015, creating uncertainty across the supply chain from international suppliers to consumers, the research said.
The research, Tariff Volatility and Stakeholder Dynamics in India's Edible Oil Sector, was jointly conducted by the Centre for Economic Studies and Planning, Jawaharlal Nehru University, VeK Policy Advisory and Research, and Assocham. Economic Times
---------
October 14, 2025
Global Banks made $26 billion in a decade of financing agri-companies
New analysis ahead of COP30 in Brazil reveals how efforts to end deforestation are undermined by climate-wrecking profits, as banks in the US, EU and UK make over $10 billion in income since the Paris climate agreement by financing companies involved in deforestation
Key findings
Banks and asset managers have made $26 billion in income from financing deforesting companies since the Paris Agreement, according to a new investigation by Global Witness.
The money was generated through investments, loans and issuance underwriting services provided to 50 deforesting companies between 2016-2024. Cumulatively, the most income was made by US financial institutions – a list which includes Vanguard, JPMorgan Chase and BlackRock.
The new analysis represents the largest ever mapping of income from the harmful financing of companies accused of deforestation, land grabs and human rights abuses, including through some of the world's largest agribusinesses.
The analysis was commissioned by Global Witness and carried out by Dutch research consultancy Profundo using Forests & Finance data.
All financial institutions named were approached for comment by Global Witness. Their responses can be found at the end of this report. Global Witness
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Palm Oil Prices Rise on Firm Biodiesel Demand, Slowing Output
Jakarta. Crude palm oil (CPO) prices climbed to 4,520 ringgit (US$974) per ton on Monday, up 0.53 percent from the previous day, as tighter supply expectations and Indonesia’s expanding biodiesel mandate continued to support the market. The benchmark price has gained 1.69 percent over the past month and is 5.9 percent higher than a year ago, according to data from Trading Economics.
Hong Leong Investment Bank (HLIB) said in a research note that it is maintaining its 2025–2026 CPO price assumptions at 4,300 ringgit and 4,200 ringgit per ton, respectively. “If the latest production figures are any indication, palm oil stock levels may have reached their peak in September and are expected to begin trending lower from October, supporting our view of firm CPO prices in the near to medium term,” HLIB said.
Industry data showed Malaysia’s end-September inventories rose 7.2 percent month-on-month to 2.36 million tonnes, the highest in nearly two years, while output slipped 0.73 percent to 1.84 million tonnes, marking the first decline in three months. Despite the inventory build, analysts said strong export demand is helping offset bearish pressure. Malaysian shipments rose 9.9–19.4 percent in the first 10 days of October, according to cargo surveyors. Jakarta Globe
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A fiscal incentive program to produce sustainable aviation fuel from used cooking oil in Indonesia
Indonesia is exploring pathways to incorporate sustainable aviation fuel (SAF) into its national biofuel program, with used cooking oil (UCO) emerging as a promising feedstock. This research brief examines how the Indonesian government could establish a Used Cooking Oil Fund (UCOF) to support SAF production through export levy revenues, similar to the successful Palm Oil Estate Fund model used for biodiesel.
The analysis surveys UCO collection practices across Asian countries and evaluates three potential service fee structures on UCO exports. Our findings indicate that implementing a service fee above $150 per ton could generate sufficient revenue to subsidize UCO-based hydroprocessed esters and fatty acids (HEFA) fuel production, helping Indonesia meet its 1% SAF blending target by 2027.
Policy considerations:
SD Guthrie Expands Prisoner Reintegration Programme with Over 900 Work Placements
Company’s collaboration with Malaysia Prisons Department has been giving another chance at life to parolees since 2019
Petaling Jaya, 14 October 2025 – SD Guthrie Berhad (Guthrie) has 948 work placements in its oil palm estates nationwide for parolees. This initiative is the largest prisoner reintegration effort by a Malaysian plantation company since the Malaysian Prisons Department introduced the Corporate Smart Internship (CSI) programme in 2016.
The CSI programme helps parolees and early-release inmates to reintegrate into society by providing them with on-the-job training and placements through collaborations with the private sector. Guthrie’s collaboration with the Malaysian Prisons Department, which began in 2019, supports the reintegration of two groups into society: Inmates Categorised as Parolees (‘Orang di Parol’ or ODP) and ‘Persons Released on Licence’ (‘Orang Bebas Berlesen’ or OBB). The company is targeting to recruit more than 450 individuals from each category, to fill the available work vacancies.
In 2025, 131 parolees joined Guthrie’s workforce under the programme, bringing the total number of parolees on the company’s payroll to 152. Since 2019, Guthrie has successfully recruited 761 parolees, of whom 15 have transitioned to become permanent employees within the company’s upstream operations.
Parolees under this initiative are currently working in 10 Guthrie estates in Perak, Kedah, Selangor, Pahang, Terengganu, Johor, Negeri Sembilan, Melaka, Sabah, and Sarawak.
“This programme is about more than providing jobs; it is about rebuilding lives, and restoring hope and dignity, whilst contributing to safer, more inclusive communities,” said Guthrie’s Group Managing Director, Datuk Mohamad Helmy Othman Basha. “We are proud to be a part of this initiative which provides ex-inmates with a second chance in life, which I strongly believe is a basic human right of every human being. These individuals should not be defined by their past, but by the future they are working hard to build. Guthrie is proud to help them be part of that future by becoming productive members of society,” he added.
Going beyond short-term employment, Guthrie’s offers structured on-the-job training, mentoring and supervision. Parolees under the programme gain real employment experience while receiving the same benefits as all other Guthrie workers. This includes the minimum wage as stipulated by the National Minimum Wage Order 2022 and other benefits under the Malayan Agricultural Producers Association (MAPA)/National Union of Plantation Workers (NUPW) Collective Bargaining Agreement 2019. These include free housing, water, subsidised electricity, along with fair working hours under the Employment Act and optional paid overtime.
It is anticipated that real work experience and benefits will help to reduce recidivism.
Guthrie remains one of the few plantation companies in Malaysia to implement the programme at scale, reinforcing its leadership in responsible employment practices and its role in national rehabilitation efforts. Guthrie encourages other companies to join this effort, to help build a more inclusive and rehabilitative society. SD Guthrie
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Uganda invests 1.2 billion UGX to support palm oil smallholders
The Ministry of Agriculture, Animal Industry and Fisheries is spearheading the expansion of Uganda’s oil palm industry through the National Oil Palm Project, a government-led initiative designed to enhance rural livelihoods and boost agro-industrial growth. In partnership with Equity Bank Uganda and with funding support from the International Fund for Agricultural Development (IFAD), the ministry is implementing the project across Mayuge, Bugiri, and Namayingo districts. Catherine Psomgen, Director of Public Sector and Social Investments at Equity Bank Uganda, says over 900 farmers have already accessed Shs 1.2 billion in financing. The funding enables them to purchase quality seedlings, adopt improved farming practices, and invest in productivity-enhancing technologies.
Global Banks made $26 billion in a decade of financing agri-companies
New analysis ahead of COP30 in Brazil reveals how efforts to end deforestation are undermined by climate-wrecking profits, as banks in the US, EU and UK make over $10 billion in income since the Paris climate agreement by financing companies involved in deforestation
Key findings
- US financial institutions made $5.4 billion from deforesting companies between 2016-2024, with Vanguard, JPMorgan Chase and BlackRock the top earners.
- EU banks made an income of $3.5 billion, led by BNP Paribas (France) and Rabobank (Netherlands).
- UK institutions made $1.2 billion, with HSBC, Aberdeen group and Schroders leading.
- Banks in all other countries outside these three major financial centres generated $15.9 billion, with Bank Central Asia (Indonesia), Brazilian Development Bank (Brazil) and Bank Rakyat Indonesia (Indonesia) making the most.
- Of the deforesting businesses across the six sectors analysed, the pulp and paper sector generated the highest income (48%) followed by palm oil (41%), then soya (4%), beef (3%), rubber (3%) and timber (1%).
Banks and asset managers have made $26 billion in income from financing deforesting companies since the Paris Agreement, according to a new investigation by Global Witness.
The money was generated through investments, loans and issuance underwriting services provided to 50 deforesting companies between 2016-2024. Cumulatively, the most income was made by US financial institutions – a list which includes Vanguard, JPMorgan Chase and BlackRock.
The new analysis represents the largest ever mapping of income from the harmful financing of companies accused of deforestation, land grabs and human rights abuses, including through some of the world's largest agribusinesses.
The analysis was commissioned by Global Witness and carried out by Dutch research consultancy Profundo using Forests & Finance data.
All financial institutions named were approached for comment by Global Witness. Their responses can be found at the end of this report. Global Witness
--------
Palm Oil Prices Rise on Firm Biodiesel Demand, Slowing Output
Jakarta. Crude palm oil (CPO) prices climbed to 4,520 ringgit (US$974) per ton on Monday, up 0.53 percent from the previous day, as tighter supply expectations and Indonesia’s expanding biodiesel mandate continued to support the market. The benchmark price has gained 1.69 percent over the past month and is 5.9 percent higher than a year ago, according to data from Trading Economics.
Hong Leong Investment Bank (HLIB) said in a research note that it is maintaining its 2025–2026 CPO price assumptions at 4,300 ringgit and 4,200 ringgit per ton, respectively. “If the latest production figures are any indication, palm oil stock levels may have reached their peak in September and are expected to begin trending lower from October, supporting our view of firm CPO prices in the near to medium term,” HLIB said.
Industry data showed Malaysia’s end-September inventories rose 7.2 percent month-on-month to 2.36 million tonnes, the highest in nearly two years, while output slipped 0.73 percent to 1.84 million tonnes, marking the first decline in three months. Despite the inventory build, analysts said strong export demand is helping offset bearish pressure. Malaysian shipments rose 9.9–19.4 percent in the first 10 days of October, according to cargo surveyors. Jakarta Globe
--------
A fiscal incentive program to produce sustainable aviation fuel from used cooking oil in Indonesia
Indonesia is exploring pathways to incorporate sustainable aviation fuel (SAF) into its national biofuel program, with used cooking oil (UCO) emerging as a promising feedstock. This research brief examines how the Indonesian government could establish a Used Cooking Oil Fund (UCOF) to support SAF production through export levy revenues, similar to the successful Palm Oil Estate Fund model used for biodiesel.
The analysis surveys UCO collection practices across Asian countries and evaluates three potential service fee structures on UCO exports. Our findings indicate that implementing a service fee above $150 per ton could generate sufficient revenue to subsidize UCO-based hydroprocessed esters and fatty acids (HEFA) fuel production, helping Indonesia meet its 1% SAF blending target by 2027.
Policy considerations:
- Centralize UCO collection regulations. Indonesia’s decentralized collection scheme has achieved below 50% collection rates. Central government oversight with clear producer responsibilities could significantly improve UCO supply.
- Establish a Used Cooking Oil Fund. Following the successful model for palm oil biodiesel, a UCOF could provide incentives either for UCO collection or directly to HEFA producers to achieve price parity with conventional jet fuel.
- Increase the UCO export service fee. Raising the current 9.5% service fee to above $150/ton would generate sufficient revenue to support the 1% SAF blending mandate while creating surplus funds for future program expansion. The ICCT
SD Guthrie Expands Prisoner Reintegration Programme with Over 900 Work Placements
Company’s collaboration with Malaysia Prisons Department has been giving another chance at life to parolees since 2019
Petaling Jaya, 14 October 2025 – SD Guthrie Berhad (Guthrie) has 948 work placements in its oil palm estates nationwide for parolees. This initiative is the largest prisoner reintegration effort by a Malaysian plantation company since the Malaysian Prisons Department introduced the Corporate Smart Internship (CSI) programme in 2016.
The CSI programme helps parolees and early-release inmates to reintegrate into society by providing them with on-the-job training and placements through collaborations with the private sector. Guthrie’s collaboration with the Malaysian Prisons Department, which began in 2019, supports the reintegration of two groups into society: Inmates Categorised as Parolees (‘Orang di Parol’ or ODP) and ‘Persons Released on Licence’ (‘Orang Bebas Berlesen’ or OBB). The company is targeting to recruit more than 450 individuals from each category, to fill the available work vacancies.
In 2025, 131 parolees joined Guthrie’s workforce under the programme, bringing the total number of parolees on the company’s payroll to 152. Since 2019, Guthrie has successfully recruited 761 parolees, of whom 15 have transitioned to become permanent employees within the company’s upstream operations.
Parolees under this initiative are currently working in 10 Guthrie estates in Perak, Kedah, Selangor, Pahang, Terengganu, Johor, Negeri Sembilan, Melaka, Sabah, and Sarawak.
“This programme is about more than providing jobs; it is about rebuilding lives, and restoring hope and dignity, whilst contributing to safer, more inclusive communities,” said Guthrie’s Group Managing Director, Datuk Mohamad Helmy Othman Basha. “We are proud to be a part of this initiative which provides ex-inmates with a second chance in life, which I strongly believe is a basic human right of every human being. These individuals should not be defined by their past, but by the future they are working hard to build. Guthrie is proud to help them be part of that future by becoming productive members of society,” he added.
Going beyond short-term employment, Guthrie’s offers structured on-the-job training, mentoring and supervision. Parolees under the programme gain real employment experience while receiving the same benefits as all other Guthrie workers. This includes the minimum wage as stipulated by the National Minimum Wage Order 2022 and other benefits under the Malayan Agricultural Producers Association (MAPA)/National Union of Plantation Workers (NUPW) Collective Bargaining Agreement 2019. These include free housing, water, subsidised electricity, along with fair working hours under the Employment Act and optional paid overtime.
It is anticipated that real work experience and benefits will help to reduce recidivism.
Guthrie remains one of the few plantation companies in Malaysia to implement the programme at scale, reinforcing its leadership in responsible employment practices and its role in national rehabilitation efforts. Guthrie encourages other companies to join this effort, to help build a more inclusive and rehabilitative society. SD Guthrie
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Uganda invests 1.2 billion UGX to support palm oil smallholders
The Ministry of Agriculture, Animal Industry and Fisheries is spearheading the expansion of Uganda’s oil palm industry through the National Oil Palm Project, a government-led initiative designed to enhance rural livelihoods and boost agro-industrial growth. In partnership with Equity Bank Uganda and with funding support from the International Fund for Agricultural Development (IFAD), the ministry is implementing the project across Mayuge, Bugiri, and Namayingo districts. Catherine Psomgen, Director of Public Sector and Social Investments at Equity Bank Uganda, says over 900 farmers have already accessed Shs 1.2 billion in financing. The funding enables them to purchase quality seedlings, adopt improved farming practices, and invest in productivity-enhancing technologies.
October 12, 2025
Indonesia Readies Fund to Join BRICS-Sponsored Bank
akarta. Indonesia has set aside an undisclosed amount of funds to buy some shares in the BRICS-sponsored New Development Bank, according to a senior minister, as the multilateral lender requires members to make paid-in capital payments.
Under President Prabowo Subianto, Indonesia's relations with BRICS -- a China-led bloc of emerging economies -- has witnessed some major progress. Jakarta officially came onboard as a BRICS member in January, and did not take long to announce interest at its lender New Development Bank, also known as NDB. This bank has financed its members’ transport infrastructure and renewable energy projects. Back in late May, Chief Economic Affairs Minister Airlangga Hartarto revealed that Indonesia had to put in “a sum of money” before it could join the NDB, although the bank would accept seven installments. Airlangga recently gave some updates to the NDB bid.
"It has been approved for us [Indonesia] to pay the paid-in capital,” Airlangga said on the sidelines of the 2025 Investor Daily Summit on Thursday.
Brazil, Russia, India, China, and South Africa -- the countries that made up the BRICS acronym -- established the bank in 2015. They made an initial subscription of 500,000 shares totaling $50 billion. Each of the founding members currently holds 18.76 percent of the shares. NDB later expanded with Bangladesh, United Arab Emirates (UAE), Egypt, and most recently, Algeria with the subscribed capital ranging from 1.04 to 2.24 percent.
Bangladesh and the UAE had fully paid their first, second, and third installments of the paid-in capital, the NDB reported. Egypt is only done with the first installment. The bank has greenlit Uruguay’s candidacy, but Montevideo will only officially join after it deposits its instrument of accession. No member holds veto power.
The bank has an initial authorized capital of $100 billion.
The NDB has approved $39 billion in financing that go to 120 projects, some of which are related to sanitation programs and renewable energy. However, the bank had only greenlit financing for the five founding economies so far, while projects from Bangladesh and Egypt are still waiting for approval. The UAE is a non-borrowing member. Jakarta Globe
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EFI, MSPO strengthen collaboration to advance sustainable palm oil trade
KUALA LUMPUR: The European Forest Institute (EFI) and the Malaysian Sustainable Palm Oil (MSPO) certification have signed a strategic cooperation agreement to enhance sustainability, strengthen traceability, and ensure Malaysian palm oil remains a trusted choice in global sustainable trade.
The Memorandum of Cooperation, signed by EFI Director Dr Robert Mavsar and MSPO Chief Executive Officer Hafizin Tajudin, focuses on developing systems that ensure deforestation-free supply chains, with a strong emphasis on integrating smallholder producers and fresh fruit bunch (FFB) dealers.
By combining EFI’s scientific and international expertise with MSPO’s credible national standard, the partnership sets a new benchmark for inclusive and future-ready supply chains that are responsible, transparent, and globally trusted.
The cooperation will focus on three key areas.
“It will advance policy development to support resilient and sustainable commodity strategies.
It will deliver technical systems that reinforce traceability and legality across the supply chain, ensuring integrity from plantation to port.
It will also accelerate knowledge exchange and innovation through pilot projects, comparative studies, and international learning platforms that turn sustainability commitments into measurable results.
The collaboration will also explore initiatives to strengthen smallholder and FFB dealer integration through digital onboarding and group compliance models, ensuring Malaysian smallholders stay connected to premium markets.
EFI and MSPO will further assess how MSPO’s traceability system, which already captures geolocation, legality, and sustainability data from plantation to export, can support EU operators in meeting the European Union Deforestation Regulation (EUDR).
Hafizin said the partnership ensures that MSPO is future-ready for any global requirement.
“By working with EFI, we will draw on international expertise to strengthen MSPO’s traceability system, enhance data integrity, and advance inclusive compliance models.
“These efforts will position Malaysian palm oil to meet evolving global regulations and rising consumer demand for sustainable, deforestation free, and responsibly sourced products,” he said in a statement. The Borneo Post
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Orangutan diplomacy to strengthen conservation in Malaysia
KOTA KINABALU: Sabah’s conservation efforts received a major boost on Oct 2 when a memorandum of understanding (MoU) was exchanged under the Orangutan Diplomacy Programme at the Sungai Pin Conservation Area (SPnCA) in Kinabatangan.
The MoU was previously signed by the Malaysian Palm Oil Green Conservation Foundation (MPOGCF) and Borneo Samudera Sdn Bhd (BSSB), a subsidiary of Sawit Kinabalu Group. It was formally exchanged at a ceremony officiated by Plantation and Commodities Ministry Secretary-General Datuk Yusran Shah Mohd Yusof and Sawit Kinabalu Managing Director Datuk Victor Ationg.
In his speech, Yusran, who is also MPOGCF Board of Trustees chairman, described the programme as crucial to ensure orangutans can move freely in their natural habitat without disturbance from human activities, plantation operations or uncontrolled tourism.
He highlighted that the MoU was especially timely following Unesco’s recognition of Kinabatangan as Malaysia’s newest Biosphere Reserve on Sept 27.
“This effort reflects Malaysia’s seriousness in safeguarding its wildlife while balancing sustainable development,“ he said.
Yusran also commended Sawit Kinabalu for allocating 2,632 hectares in Sungai Pin Estate as a High Conservation Value (HCV) area, home to an estimated 55 orangutans. The SunMY
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Why Good Fats Are Essential for Mental Resilience
Dr. Rachna Khanna Singh
Every year, on October 10, the world observes World Mental Health Day. We talk about self-care and balance, yet rarely consider what’s on our plates. As journalist Palki Sharma noted, “We’ve made stress fashionable and food mechanical. It’s no wonder our minds are tired before our bodies are.”
The fats we eat can either strengthen our minds or quietly weaken them. According to the World Health Organization (2023), over one in four people worldwide experience mental health disorders and nutrition remains one of the most overlooked yet modifiable factors.
The Brain That Runs on Fat
Nearly 60% of the brain is fat, forming neuron membranes that allow messages to travel smoothly. Without healthy fats, thinking slows, focus fades, and emotional balance suffers.
Omega-3 and monounsaturated fats from fish, nuts, seeds, olive oil and palm oil nourish neurons and reduce inflammation, while trans fats and processed oils disrupt neural communication. Olive oil, rich in monounsaturated fats like oleic acid and protective polyphenols, supports blood flow to the brain and helps combat oxidative stress, thereby lowering the risk of neurodegenerative diseases such as dementia. Palm oil, a balanced mix of saturated, monounsaturated and polyunsaturated fats and another good source of oleic acid and Vitamin E tocotrienols, has shown anti-oxidant and neuroprotective effects in several studies. The Journal of the American College of Nutrition highlights the importance of palm oil-derived natural Vitamin E alpha-tocotrienol in supporting brain health and protecting against disease.Animal and human studies suggest that the tocotrienols in palm oil may help protect the delicate polyunsaturated fats in the brain, slow dementia progression, reduce the risk of stroke, and prevent the growth of brain lesions.
A Neuron study found that just four days of junk food can impair the hippocampus, the brain’s memory hub causing fatigue, irritability, and “brain fog.” Humans experience similar effects after a week of fast food. It’s not weakness, it’s chemistry.
Mental decline isn’t caused only by overeating. Under-eating can be equally harmful. A BMJ Nutrition (2021) study of 28,000 adults found that calorie-restricted diets increased depressive symptoms, especially in men and overweight individuals.
The brain needs glucose and healthy fats to produce neurotransmitters like serotonin and dopamine, which regulate mood and motivation. Restrictive diets reduce tryptophan, the amino acid for serotonin, leading to irritability, anxiety, and poor focus. Extreme low-fat diets trigger stress hormones and cognitive dullness-a biological response, not a lack of willpower. The Indian Awaaz
Indonesia Readies Fund to Join BRICS-Sponsored Bank
akarta. Indonesia has set aside an undisclosed amount of funds to buy some shares in the BRICS-sponsored New Development Bank, according to a senior minister, as the multilateral lender requires members to make paid-in capital payments.
Under President Prabowo Subianto, Indonesia's relations with BRICS -- a China-led bloc of emerging economies -- has witnessed some major progress. Jakarta officially came onboard as a BRICS member in January, and did not take long to announce interest at its lender New Development Bank, also known as NDB. This bank has financed its members’ transport infrastructure and renewable energy projects. Back in late May, Chief Economic Affairs Minister Airlangga Hartarto revealed that Indonesia had to put in “a sum of money” before it could join the NDB, although the bank would accept seven installments. Airlangga recently gave some updates to the NDB bid.
"It has been approved for us [Indonesia] to pay the paid-in capital,” Airlangga said on the sidelines of the 2025 Investor Daily Summit on Thursday.
Brazil, Russia, India, China, and South Africa -- the countries that made up the BRICS acronym -- established the bank in 2015. They made an initial subscription of 500,000 shares totaling $50 billion. Each of the founding members currently holds 18.76 percent of the shares. NDB later expanded with Bangladesh, United Arab Emirates (UAE), Egypt, and most recently, Algeria with the subscribed capital ranging from 1.04 to 2.24 percent.
Bangladesh and the UAE had fully paid their first, second, and third installments of the paid-in capital, the NDB reported. Egypt is only done with the first installment. The bank has greenlit Uruguay’s candidacy, but Montevideo will only officially join after it deposits its instrument of accession. No member holds veto power.
The bank has an initial authorized capital of $100 billion.
The NDB has approved $39 billion in financing that go to 120 projects, some of which are related to sanitation programs and renewable energy. However, the bank had only greenlit financing for the five founding economies so far, while projects from Bangladesh and Egypt are still waiting for approval. The UAE is a non-borrowing member. Jakarta Globe
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EFI, MSPO strengthen collaboration to advance sustainable palm oil trade
KUALA LUMPUR: The European Forest Institute (EFI) and the Malaysian Sustainable Palm Oil (MSPO) certification have signed a strategic cooperation agreement to enhance sustainability, strengthen traceability, and ensure Malaysian palm oil remains a trusted choice in global sustainable trade.
The Memorandum of Cooperation, signed by EFI Director Dr Robert Mavsar and MSPO Chief Executive Officer Hafizin Tajudin, focuses on developing systems that ensure deforestation-free supply chains, with a strong emphasis on integrating smallholder producers and fresh fruit bunch (FFB) dealers.
By combining EFI’s scientific and international expertise with MSPO’s credible national standard, the partnership sets a new benchmark for inclusive and future-ready supply chains that are responsible, transparent, and globally trusted.
The cooperation will focus on three key areas.
“It will advance policy development to support resilient and sustainable commodity strategies.
It will deliver technical systems that reinforce traceability and legality across the supply chain, ensuring integrity from plantation to port.
It will also accelerate knowledge exchange and innovation through pilot projects, comparative studies, and international learning platforms that turn sustainability commitments into measurable results.
The collaboration will also explore initiatives to strengthen smallholder and FFB dealer integration through digital onboarding and group compliance models, ensuring Malaysian smallholders stay connected to premium markets.
EFI and MSPO will further assess how MSPO’s traceability system, which already captures geolocation, legality, and sustainability data from plantation to export, can support EU operators in meeting the European Union Deforestation Regulation (EUDR).
Hafizin said the partnership ensures that MSPO is future-ready for any global requirement.
“By working with EFI, we will draw on international expertise to strengthen MSPO’s traceability system, enhance data integrity, and advance inclusive compliance models.
“These efforts will position Malaysian palm oil to meet evolving global regulations and rising consumer demand for sustainable, deforestation free, and responsibly sourced products,” he said in a statement. The Borneo Post
--------
Orangutan diplomacy to strengthen conservation in Malaysia
KOTA KINABALU: Sabah’s conservation efforts received a major boost on Oct 2 when a memorandum of understanding (MoU) was exchanged under the Orangutan Diplomacy Programme at the Sungai Pin Conservation Area (SPnCA) in Kinabatangan.
The MoU was previously signed by the Malaysian Palm Oil Green Conservation Foundation (MPOGCF) and Borneo Samudera Sdn Bhd (BSSB), a subsidiary of Sawit Kinabalu Group. It was formally exchanged at a ceremony officiated by Plantation and Commodities Ministry Secretary-General Datuk Yusran Shah Mohd Yusof and Sawit Kinabalu Managing Director Datuk Victor Ationg.
In his speech, Yusran, who is also MPOGCF Board of Trustees chairman, described the programme as crucial to ensure orangutans can move freely in their natural habitat without disturbance from human activities, plantation operations or uncontrolled tourism.
He highlighted that the MoU was especially timely following Unesco’s recognition of Kinabatangan as Malaysia’s newest Biosphere Reserve on Sept 27.
“This effort reflects Malaysia’s seriousness in safeguarding its wildlife while balancing sustainable development,“ he said.
Yusran also commended Sawit Kinabalu for allocating 2,632 hectares in Sungai Pin Estate as a High Conservation Value (HCV) area, home to an estimated 55 orangutans. The SunMY
--------
Why Good Fats Are Essential for Mental Resilience
Dr. Rachna Khanna Singh
Every year, on October 10, the world observes World Mental Health Day. We talk about self-care and balance, yet rarely consider what’s on our plates. As journalist Palki Sharma noted, “We’ve made stress fashionable and food mechanical. It’s no wonder our minds are tired before our bodies are.”
The fats we eat can either strengthen our minds or quietly weaken them. According to the World Health Organization (2023), over one in four people worldwide experience mental health disorders and nutrition remains one of the most overlooked yet modifiable factors.
The Brain That Runs on Fat
Nearly 60% of the brain is fat, forming neuron membranes that allow messages to travel smoothly. Without healthy fats, thinking slows, focus fades, and emotional balance suffers.
Omega-3 and monounsaturated fats from fish, nuts, seeds, olive oil and palm oil nourish neurons and reduce inflammation, while trans fats and processed oils disrupt neural communication. Olive oil, rich in monounsaturated fats like oleic acid and protective polyphenols, supports blood flow to the brain and helps combat oxidative stress, thereby lowering the risk of neurodegenerative diseases such as dementia. Palm oil, a balanced mix of saturated, monounsaturated and polyunsaturated fats and another good source of oleic acid and Vitamin E tocotrienols, has shown anti-oxidant and neuroprotective effects in several studies. The Journal of the American College of Nutrition highlights the importance of palm oil-derived natural Vitamin E alpha-tocotrienol in supporting brain health and protecting against disease.Animal and human studies suggest that the tocotrienols in palm oil may help protect the delicate polyunsaturated fats in the brain, slow dementia progression, reduce the risk of stroke, and prevent the growth of brain lesions.
A Neuron study found that just four days of junk food can impair the hippocampus, the brain’s memory hub causing fatigue, irritability, and “brain fog.” Humans experience similar effects after a week of fast food. It’s not weakness, it’s chemistry.
Mental decline isn’t caused only by overeating. Under-eating can be equally harmful. A BMJ Nutrition (2021) study of 28,000 adults found that calorie-restricted diets increased depressive symptoms, especially in men and overweight individuals.
The brain needs glucose and healthy fats to produce neurotransmitters like serotonin and dopamine, which regulate mood and motivation. Restrictive diets reduce tryptophan, the amino acid for serotonin, leading to irritability, anxiety, and poor focus. Extreme low-fat diets trigger stress hormones and cognitive dullness-a biological response, not a lack of willpower. The Indian Awaaz
October 11, 2025
APOA, CPOPC and Solidaridad work together to accelerate sustainable palm oil supply chain
The Asian Palm Oil Council (APOA), the Council of Palm Oil Producing Countries (CPOPC) and Solidaridad Network Asia Limited (SNAL) have launched a programme to align sustainability standards, improve traceability and support smallholders in the palm oil supply chain.
Signed in Mumbai, the Memorandum of Understanding (MoU) would focus on India and South Asia, the organisations said on 25 September.
“At a time when food security and price stability are front of mind for families and business across South Asia, this partnership gives producers and consumers a formal table to strengthen collaboration and foster mutual understanding in addressing shared challenges,” APOA chairman Atul Chaturvedi said.
APOA brings together vegetable oil associations from India, Bangladesh, Pakistan, Sri Lanka and Nepal under the umbrella of India’s Solvent Extractors’ Association (SEA).
As part of the MoU, the organisations said they would seek practical alignment and mutual recognition between national sustainability frameworks including Indonesia Sustainable Palm Oil (ISPO), Malaysian Sustainable Palm Oil (MSPO) and Indian Palm Oil Sustainability (IPOS) Framework while respecting each country’s laws and regulatory competencies.
The collaboration would also prioritise regenerative practices, they said. OFI Magazine
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Indonesia plans full rollout of B50 in the new year to cut fossil fuels
Indonesia is taking a major step toward its renewable energy goals with the advancement of its ambitious B50 biodiesel mandate, positioning the country at the forefront of global biofuel innovation.
Following successful laboratory engine testing of a 50 % palm oil–based biodiesel blend, the nation is preparing for road trials ahead of a full rollout in 2026.
Currently operating under a B40 programme, Indonesia aims to cut fossil fuel imports and boost domestic demand for palm-based biofuels.
Government officials have indicated that while early results are promising, further assessments on non-automotive diesel engines and infrastructure readiness are essential before final approval. If fully implemented, the B50 mandate would require around 20.1 million kilolitres of biofuel annually—an increase of nearly 30 % from current levels. Biofuels International
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Malaysia's 2026 Budget underscores government's commitment to palm oil industry
KUALA LUMPUR: Thanks to scientific findings, Malaysia has succeeded in countering Western criticism of palm oil through increased exports, especially to China and India, said Prime Minister Datuk Seri Anwar Ibrahim.
He said RM63 million has been allocated to intensify the campaign against anti-palm oil and encourage sustainable certification, including by private smallholders.
Anwar, who is also Finance Minister, said that to reduce dependence on foreign workers and encourage local innovation, RM20 million has been provided to support start-up companies in producing mechanisation and automation products in partnership with the Malaysian Palm Oil Board (MPOB) and major palm oil companies.
The government is also safeguarding the fate of smallholders who toil and sweat to earn a living on the farms with an allocation of almost RM120 million, he said when tabling the Budget 2026 in the Dewan Rakyat today.
Additionally, RM20 million has been allocated to support local companies in developing mechanised and automated palm oil plantation technologies, with backing from MPOB.
Ahmad Parveez said that initiatives such as replanting, strengthening of the Malaysian Sustainable Palm Oil (MSPO) certification, and the development of plantation automation technologies will continue to be intensified to ensure the resilience of Malaysia's palm oil industry.
This includes supporting part of the cost of oil palm replanting for smallholders to replace ageing trees, encouraging rubber smallholders to produce rubber and redevelop abandoned private rubber plantations, and supplying cocoa smallholders with 1.1 million quality cocoa seedlings, including training assistance from industry players.
This also aims to reduce the burden on pepper smallholders due to the increasing cost of inputs such as fertilisers and pesticides, and support kenaf smallholders in increasing kenaf yields as one of the new sources of growth for agri-commodities.
Anwar also said that the Malaysian Rubber Board (MRB) will develop a centre of excellence for research to ensure the industry’s future sustainability, with an allocation of RM600 million. NST
APOA, CPOPC and Solidaridad work together to accelerate sustainable palm oil supply chain
The Asian Palm Oil Council (APOA), the Council of Palm Oil Producing Countries (CPOPC) and Solidaridad Network Asia Limited (SNAL) have launched a programme to align sustainability standards, improve traceability and support smallholders in the palm oil supply chain.
Signed in Mumbai, the Memorandum of Understanding (MoU) would focus on India and South Asia, the organisations said on 25 September.
“At a time when food security and price stability are front of mind for families and business across South Asia, this partnership gives producers and consumers a formal table to strengthen collaboration and foster mutual understanding in addressing shared challenges,” APOA chairman Atul Chaturvedi said.
APOA brings together vegetable oil associations from India, Bangladesh, Pakistan, Sri Lanka and Nepal under the umbrella of India’s Solvent Extractors’ Association (SEA).
As part of the MoU, the organisations said they would seek practical alignment and mutual recognition between national sustainability frameworks including Indonesia Sustainable Palm Oil (ISPO), Malaysian Sustainable Palm Oil (MSPO) and Indian Palm Oil Sustainability (IPOS) Framework while respecting each country’s laws and regulatory competencies.
The collaboration would also prioritise regenerative practices, they said. OFI Magazine
--------
Indonesia plans full rollout of B50 in the new year to cut fossil fuels
Indonesia is taking a major step toward its renewable energy goals with the advancement of its ambitious B50 biodiesel mandate, positioning the country at the forefront of global biofuel innovation.
Following successful laboratory engine testing of a 50 % palm oil–based biodiesel blend, the nation is preparing for road trials ahead of a full rollout in 2026.
Currently operating under a B40 programme, Indonesia aims to cut fossil fuel imports and boost domestic demand for palm-based biofuels.
Government officials have indicated that while early results are promising, further assessments on non-automotive diesel engines and infrastructure readiness are essential before final approval. If fully implemented, the B50 mandate would require around 20.1 million kilolitres of biofuel annually—an increase of nearly 30 % from current levels. Biofuels International
--------
Malaysia's 2026 Budget underscores government's commitment to palm oil industry
KUALA LUMPUR: Thanks to scientific findings, Malaysia has succeeded in countering Western criticism of palm oil through increased exports, especially to China and India, said Prime Minister Datuk Seri Anwar Ibrahim.
He said RM63 million has been allocated to intensify the campaign against anti-palm oil and encourage sustainable certification, including by private smallholders.
Anwar, who is also Finance Minister, said that to reduce dependence on foreign workers and encourage local innovation, RM20 million has been provided to support start-up companies in producing mechanisation and automation products in partnership with the Malaysian Palm Oil Board (MPOB) and major palm oil companies.
The government is also safeguarding the fate of smallholders who toil and sweat to earn a living on the farms with an allocation of almost RM120 million, he said when tabling the Budget 2026 in the Dewan Rakyat today.
Additionally, RM20 million has been allocated to support local companies in developing mechanised and automated palm oil plantation technologies, with backing from MPOB.
Ahmad Parveez said that initiatives such as replanting, strengthening of the Malaysian Sustainable Palm Oil (MSPO) certification, and the development of plantation automation technologies will continue to be intensified to ensure the resilience of Malaysia's palm oil industry.
This includes supporting part of the cost of oil palm replanting for smallholders to replace ageing trees, encouraging rubber smallholders to produce rubber and redevelop abandoned private rubber plantations, and supplying cocoa smallholders with 1.1 million quality cocoa seedlings, including training assistance from industry players.
This also aims to reduce the burden on pepper smallholders due to the increasing cost of inputs such as fertilisers and pesticides, and support kenaf smallholders in increasing kenaf yields as one of the new sources of growth for agri-commodities.
Anwar also said that the Malaysian Rubber Board (MRB) will develop a centre of excellence for research to ensure the industry’s future sustainability, with an allocation of RM600 million. NST
October 10, 2025
Positive Prospects For Malaysian palm oil From Indonesia’s B50 Plan
CIMB Investment Bank Bhd (CIMB Securities) has maintained its OVERWEIGHT call on the plantation sector, citing Indonesia’s plan to implement a 50% biodiesel blend (B50) mandate by the second half of 2026 as a long-term structural positive for crude palm oil (CPO) demand and prices. The research house said the move could trigger a potential re-rating of plantation counters such as SD Guthrie, IOI Corp, Ta Ann Holdings and Hap Seng Plantations.
According to CIMB Securities analyst Ivy Ng Lee Fang, the policy follows the successful rollout of the B40 programme and completion of its third testing phase. The final B50 trial, which began this year, is expected to conclude within six to eight months and involves testing the blend on ships, trains, heavy machinery and vehicles. Once successful, Indonesia will proceed with a nationwide rollout by 2H26.
The B50 initiative is designed to strengthen energy security, improve the trade balance and support domestic CPO consumption by reducing the country’s reliance on diesel imports. Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia said the increased use of CPO in biodiesel would help boost smallholder income and curb the outflow of foreign exchange, as diesel imports currently account for about 10.5% of total fuel consumption or roughly 4.9 million barrels a year.
However, CIMB Securities noted that achieving the B50 target could pose feedstock challenges. Deputy Energy Minister Yuliot Tanjung revealed that the country would need about 19.73 million kilolitres (kL) of palm-based fatty acid methyl ester (FAME), which may require an additional 2.3 million hectares of oil palm plantations. As a contingency, the government may first roll out a B45 blend, which needs about 17 million kL of FAME, if feedstock availability becomes a constraint.
CIMB Securities estimates that the B50 implementation could generate an additional 4 million tonnes of CPO demand, representing a 5% increase from total 2024 consumption. This would tighten exportable palm oil supply and lend support to higher CPO prices. Nonetheless, the research house cautioned that potential delays could arise from insufficient CPO fund subsidies, limited biodiesel production capacity or concerns over food security.
CIMB’s top picks in the sector include SD Guthrie (Buy, target price RM5.15), IOI Corp (Buy, RM4.11), Ta Ann Holdings (Buy, RM4.27) and Hap Seng Plantations (Buy, RM2.23). Other notable mentions are Kuala Lumpur Kepong (Hold, RM21.50) and Genting Plantations (Hold, RM5.28).
CIMB Securities expects the planned B50 rollout to be a key long-term growth driver for plantation players, supporting Malaysia’s CPO export competitiveness and reinforcing regional demand fundamentals across the sector. Business Today
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Indonesia’s renewed biodiesel push can boost palm oil prices, says CIMB Securities
KUALA LUMPUR (Oct 10): A biodiesel renewed push by Indonesia could support higher palm oil prices and lead to investors re-accessing valuations of plantation stocks, said CIMB Securities.
The B50 biofuel mandate, which requires a 50:50 mix of palm-based methyl ester and petroleum diesel, could consume another four million tonnes of crude palm oil, according to the research house’s estimates. If implemented, palm oil’s supply will tighten, supporting higher prices, the house said.
“The planned B50 rollout represents a structural positive for CPO (crude palm oil) prices, and, if fully implemented, could trigger a re-rating of plantation stocks,” CIMB Securities said.
Indonesia, the world’s largest palm oil producer, is planning to roll out the mandate by the second half of 2026 following the success of the B40 programme, in a bid to enhance energy security, reduce reliance on diesel imports, and boost domestic demand for the edible oil.
The B50 programme is now in its final trial phase involving testing of the fuel in ships, trains, heavy machinery, and vehicles.
CIMB Securities said demand could increase about 5% from the total consumption in 2024, but flagged risk of potential delays in B50 implementation, including due to insufficient funds to subsidise the programme, inadequate biodiesel production and blending capacity, and food security concerns.
Prices of palm oil, used in everything from lipstick to infant formula, have climbed more than 23% from its lows in May, thanks to strong demand from key importers India and China, as well as concerns over unfavourable weather curbing supply.
Bursa Malaysia Plantation Index, which tracks 41 stocks in the sector, have rallied 8% over the same period. The Edge
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Indonesia's plantation program to create 1.6 million jobs
Jakarta (ANTARA) - Agriculture Minister Andi Amran Sulaiman stated that the government's plantation and horticulture development program will create 1.6 million jobs in two years.
In a press conference at the Presidential Palace Complex, here on Thursday, he noted that the program is carried out by optimizing a budget of Rp9.95 trillion (around US$600 million).
The budget will be used mainly for the provision of free seeds and seedlings to farmers under the program, which covers the development of commodities like cocoa, coffee, coconut, cashew, and nutmeg with a total area of 800 thousand hectares.
Speaking after attending a limited meeting chaired by President Prabowo Subianto, he affirmed that the government continues to strengthen the downstreaming agenda in the agriculture sector as a strategic step to increase the added value of products, create jobs, and accelerate equitable welfare.
On that occasion, the minister underlined that the economic potential from coconut downstreaming is enormous, noting that processing coconut into virgin coconut oil can boost the price by up to 100 times.
In addition to coconut, the government is also preparing downstreaming for gambier (Uncaria gambir), given Indonesia's position as a country that supplies 80 percent of the world's gambier needs.
The same approach is also taken for the palm oil commodity, which, according to him, will be processed into products like biofuel, cooking oil, and margarine. Antara News
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UK Government accused of dodging deforestation disaster dossier
UK national security is under severe threat from the climate crisis and the looming collapse of vital natural ecosystems, like the Amazon rainforest, according to UK intelligence chiefs.
However, the official publication of their warnings has reportedly been blocked by number 10. The joint intelligence committee’s “hard-hitting” report was due to be published this week, according to The Guardian, but has been “halted”.
“This is a very stark warning,” a source familiar with the contents told the paper. “It is very clear that the impacts on national security are very worrying.”
The Times has also reported that the report, which warns that the loss of the Amazon ecosystem could drive up food inflation and lead to mass migration, has been “blocked” by Downing Street.
Some commentators suggested the government is not willing to face the issues. Others criticised ministers for focusing solely on carbon emissions, rather than tackling the intertwined crises facing nature and climate.
Food production is the leading driver of deforestation, but appetite for the introduction of anti-deforestation laws appears to have waned under the Labour Government.
The Environment Act 2021 gave ministers the power to make it mandatory for large companies to carry out due diligence checks to ensure there is no illegal deforestation in their supply chains for forest-risk commodities such as soy, beef and palm oil. Yet four years on, successive governments have failed to enact the secondary legislation needed to put the deforestation provisions into effect.
Food retailers this year said they had been left “in limbo” by the UK government. EU deforestation regulation has also been delayed once and looks set to be pushed back again as businesses complain of complex reporting requirements and bureaucrats fear potential IT issues.
Food businesses attending a legal briefing organised by Footprint and DWF in September were told not to switch off and relax despite the delays to deforestation regulations. Food Service Footprint
--------
Industry Leaders Call For Sustainable Palm Oil Framework In India
India, one of the world’s largest palm oil consumers, imports nearly 60 per cent of its edible oil needs. The country’s palm oil market reached 10.2 million tonne in 2024 and is projected to grow to 14.1 million tonne by 2033, a compound annual growth rate (CAGR) of 3.4 per cent, according to the IMARC report.
The palm oil industry faces significant sustainability challenges, including deforestation, biodiversity loss, and social impacts. "Palm oil has a very natural limitation as to how much can be grown towards the substance," said Sanjeev Asthana, CEO of Patanjali Foods. The solution will lie at the other oil fields, Asthana added.
The Indian government has launched initiatives to promote sustainable palm oil production, including the National Mission on Edible Oils - Oil Palm (NMEO-OP). "The government has said that nearly 1.2 million acres can potentially go into oil palm plantations. However, the success is clearly there, but it's still a work in progress,” he noted.
Sustainability Framework And Role Of Private Sector
Bhavna Shah, Deputy CEO of NK Protein and VP of the Indian Vegetable Oil Producers Association (IVPA), highlighted the need for a national sustainability framework for palm oil. "We need something which is India-centric, verified by India, and customised for India. A voluntary framework would be more effective than a punitive one,” Shah stated.
Sougata Niyogi, CEO of Godrej Agrovet, emphasised the importance of sustainability in India's palm oil industry. "As a grower or a growing partner with farmers, for us, it's how we reduce inefficiencies and how we can help them improve their yields," he said. "That's the core of sustainability."
Ashwin Selvaraj, Deputy Director of the Roundtable on Sustainable Palm Oil (RSPO) India, noted that sustainable palm oil is not expensive. "The additional premium that you're paying for sustainable palm oil is less than a dollar," he said. Selvaraj explained that it is a myth that sustainability comes at a significant cost.
Concluding the session, the panel highlighted that as India’s palm oil market continues to expand, balancing domestic demand with sustainable sourcing remains critical. The private sector, with its ability to influence both farmers and consumers, will be central to ensuring a responsible and sustainable palm oil ecosystem in India. The discussion took place at the Sustainable Trade Summit on Thursday in New Delhi. Business World
--------
Malaysia To Intensify Efforts To Counter Anti-Palm Oil Campaign -- PM Anwar
KUALA LUMPUR, Oct 10 (Bernama) -- Thanks to scientific findings, Malaysia has succeeded in countering Western criticism of palm oil through increased exports, especially to China and India, said Prime Minister Datuk Seri Anwar Ibrahim.
He said RM63 million has been allocated to intensify the campaign against anti-palm oil and encourage sustainable certification, including by private smallholders.
Anwar, who is also Finance Minister, said that to reduce dependence on foreign workers and encourage local innovation, RM20 million has been provided to support start-up companies in producing mechanisation and automation products in partnership with the Malaysian Palm Oil Board (MPOB) and major palm oil companies.
The government is also safeguarding the fate of smallholders who toil and sweat to earn a living on the farms with an allocation of almost RM120 million, he said when tabling the Budget 2026 in the Dewan Rakyat today.
This includes supporting part of the cost of oil palm replanting for smallholders to replace ageing trees, encouraging rubber smallholders to produce rubber and redevelop abandoned private rubber plantations, and supplying cocoa smallholders with 1.1 million quality cocoa seedlings, including training assistance from industry players.
This also aims to reduce the burden on pepper smallholders due to the increasing cost of inputs such as fertilisers and pesticides, and support kenaf smallholders in increasing kenaf yields as one of the new sources of growth for agri-commodities.
Anwar also said that the Malaysian Rubber Board (MRB) will develop a centre of excellence for research to ensure the industry’s future sustainability, with an allocation of RM600 million.
The MRB will also implement a latex production incentive programme as well as the activation of abandoned rubber plantations, said the Prime Minister. Bernama
Positive Prospects For Malaysian palm oil From Indonesia’s B50 Plan
CIMB Investment Bank Bhd (CIMB Securities) has maintained its OVERWEIGHT call on the plantation sector, citing Indonesia’s plan to implement a 50% biodiesel blend (B50) mandate by the second half of 2026 as a long-term structural positive for crude palm oil (CPO) demand and prices. The research house said the move could trigger a potential re-rating of plantation counters such as SD Guthrie, IOI Corp, Ta Ann Holdings and Hap Seng Plantations.
According to CIMB Securities analyst Ivy Ng Lee Fang, the policy follows the successful rollout of the B40 programme and completion of its third testing phase. The final B50 trial, which began this year, is expected to conclude within six to eight months and involves testing the blend on ships, trains, heavy machinery and vehicles. Once successful, Indonesia will proceed with a nationwide rollout by 2H26.
The B50 initiative is designed to strengthen energy security, improve the trade balance and support domestic CPO consumption by reducing the country’s reliance on diesel imports. Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia said the increased use of CPO in biodiesel would help boost smallholder income and curb the outflow of foreign exchange, as diesel imports currently account for about 10.5% of total fuel consumption or roughly 4.9 million barrels a year.
However, CIMB Securities noted that achieving the B50 target could pose feedstock challenges. Deputy Energy Minister Yuliot Tanjung revealed that the country would need about 19.73 million kilolitres (kL) of palm-based fatty acid methyl ester (FAME), which may require an additional 2.3 million hectares of oil palm plantations. As a contingency, the government may first roll out a B45 blend, which needs about 17 million kL of FAME, if feedstock availability becomes a constraint.
CIMB Securities estimates that the B50 implementation could generate an additional 4 million tonnes of CPO demand, representing a 5% increase from total 2024 consumption. This would tighten exportable palm oil supply and lend support to higher CPO prices. Nonetheless, the research house cautioned that potential delays could arise from insufficient CPO fund subsidies, limited biodiesel production capacity or concerns over food security.
CIMB’s top picks in the sector include SD Guthrie (Buy, target price RM5.15), IOI Corp (Buy, RM4.11), Ta Ann Holdings (Buy, RM4.27) and Hap Seng Plantations (Buy, RM2.23). Other notable mentions are Kuala Lumpur Kepong (Hold, RM21.50) and Genting Plantations (Hold, RM5.28).
CIMB Securities expects the planned B50 rollout to be a key long-term growth driver for plantation players, supporting Malaysia’s CPO export competitiveness and reinforcing regional demand fundamentals across the sector. Business Today
--------
Indonesia’s renewed biodiesel push can boost palm oil prices, says CIMB Securities
KUALA LUMPUR (Oct 10): A biodiesel renewed push by Indonesia could support higher palm oil prices and lead to investors re-accessing valuations of plantation stocks, said CIMB Securities.
The B50 biofuel mandate, which requires a 50:50 mix of palm-based methyl ester and petroleum diesel, could consume another four million tonnes of crude palm oil, according to the research house’s estimates. If implemented, palm oil’s supply will tighten, supporting higher prices, the house said.
“The planned B50 rollout represents a structural positive for CPO (crude palm oil) prices, and, if fully implemented, could trigger a re-rating of plantation stocks,” CIMB Securities said.
Indonesia, the world’s largest palm oil producer, is planning to roll out the mandate by the second half of 2026 following the success of the B40 programme, in a bid to enhance energy security, reduce reliance on diesel imports, and boost domestic demand for the edible oil.
The B50 programme is now in its final trial phase involving testing of the fuel in ships, trains, heavy machinery, and vehicles.
CIMB Securities said demand could increase about 5% from the total consumption in 2024, but flagged risk of potential delays in B50 implementation, including due to insufficient funds to subsidise the programme, inadequate biodiesel production and blending capacity, and food security concerns.
Prices of palm oil, used in everything from lipstick to infant formula, have climbed more than 23% from its lows in May, thanks to strong demand from key importers India and China, as well as concerns over unfavourable weather curbing supply.
Bursa Malaysia Plantation Index, which tracks 41 stocks in the sector, have rallied 8% over the same period. The Edge
--------
Indonesia's plantation program to create 1.6 million jobs
Jakarta (ANTARA) - Agriculture Minister Andi Amran Sulaiman stated that the government's plantation and horticulture development program will create 1.6 million jobs in two years.
In a press conference at the Presidential Palace Complex, here on Thursday, he noted that the program is carried out by optimizing a budget of Rp9.95 trillion (around US$600 million).
The budget will be used mainly for the provision of free seeds and seedlings to farmers under the program, which covers the development of commodities like cocoa, coffee, coconut, cashew, and nutmeg with a total area of 800 thousand hectares.
Speaking after attending a limited meeting chaired by President Prabowo Subianto, he affirmed that the government continues to strengthen the downstreaming agenda in the agriculture sector as a strategic step to increase the added value of products, create jobs, and accelerate equitable welfare.
On that occasion, the minister underlined that the economic potential from coconut downstreaming is enormous, noting that processing coconut into virgin coconut oil can boost the price by up to 100 times.
In addition to coconut, the government is also preparing downstreaming for gambier (Uncaria gambir), given Indonesia's position as a country that supplies 80 percent of the world's gambier needs.
The same approach is also taken for the palm oil commodity, which, according to him, will be processed into products like biofuel, cooking oil, and margarine. Antara News
--------
UK Government accused of dodging deforestation disaster dossier
UK national security is under severe threat from the climate crisis and the looming collapse of vital natural ecosystems, like the Amazon rainforest, according to UK intelligence chiefs.
However, the official publication of their warnings has reportedly been blocked by number 10. The joint intelligence committee’s “hard-hitting” report was due to be published this week, according to The Guardian, but has been “halted”.
“This is a very stark warning,” a source familiar with the contents told the paper. “It is very clear that the impacts on national security are very worrying.”
The Times has also reported that the report, which warns that the loss of the Amazon ecosystem could drive up food inflation and lead to mass migration, has been “blocked” by Downing Street.
Some commentators suggested the government is not willing to face the issues. Others criticised ministers for focusing solely on carbon emissions, rather than tackling the intertwined crises facing nature and climate.
Food production is the leading driver of deforestation, but appetite for the introduction of anti-deforestation laws appears to have waned under the Labour Government.
The Environment Act 2021 gave ministers the power to make it mandatory for large companies to carry out due diligence checks to ensure there is no illegal deforestation in their supply chains for forest-risk commodities such as soy, beef and palm oil. Yet four years on, successive governments have failed to enact the secondary legislation needed to put the deforestation provisions into effect.
Food retailers this year said they had been left “in limbo” by the UK government. EU deforestation regulation has also been delayed once and looks set to be pushed back again as businesses complain of complex reporting requirements and bureaucrats fear potential IT issues.
Food businesses attending a legal briefing organised by Footprint and DWF in September were told not to switch off and relax despite the delays to deforestation regulations. Food Service Footprint
--------
Industry Leaders Call For Sustainable Palm Oil Framework In India
India, one of the world’s largest palm oil consumers, imports nearly 60 per cent of its edible oil needs. The country’s palm oil market reached 10.2 million tonne in 2024 and is projected to grow to 14.1 million tonne by 2033, a compound annual growth rate (CAGR) of 3.4 per cent, according to the IMARC report.
The palm oil industry faces significant sustainability challenges, including deforestation, biodiversity loss, and social impacts. "Palm oil has a very natural limitation as to how much can be grown towards the substance," said Sanjeev Asthana, CEO of Patanjali Foods. The solution will lie at the other oil fields, Asthana added.
The Indian government has launched initiatives to promote sustainable palm oil production, including the National Mission on Edible Oils - Oil Palm (NMEO-OP). "The government has said that nearly 1.2 million acres can potentially go into oil palm plantations. However, the success is clearly there, but it's still a work in progress,” he noted.
Sustainability Framework And Role Of Private Sector
Bhavna Shah, Deputy CEO of NK Protein and VP of the Indian Vegetable Oil Producers Association (IVPA), highlighted the need for a national sustainability framework for palm oil. "We need something which is India-centric, verified by India, and customised for India. A voluntary framework would be more effective than a punitive one,” Shah stated.
Sougata Niyogi, CEO of Godrej Agrovet, emphasised the importance of sustainability in India's palm oil industry. "As a grower or a growing partner with farmers, for us, it's how we reduce inefficiencies and how we can help them improve their yields," he said. "That's the core of sustainability."
Ashwin Selvaraj, Deputy Director of the Roundtable on Sustainable Palm Oil (RSPO) India, noted that sustainable palm oil is not expensive. "The additional premium that you're paying for sustainable palm oil is less than a dollar," he said. Selvaraj explained that it is a myth that sustainability comes at a significant cost.
Concluding the session, the panel highlighted that as India’s palm oil market continues to expand, balancing domestic demand with sustainable sourcing remains critical. The private sector, with its ability to influence both farmers and consumers, will be central to ensuring a responsible and sustainable palm oil ecosystem in India. The discussion took place at the Sustainable Trade Summit on Thursday in New Delhi. Business World
--------
Malaysia To Intensify Efforts To Counter Anti-Palm Oil Campaign -- PM Anwar
KUALA LUMPUR, Oct 10 (Bernama) -- Thanks to scientific findings, Malaysia has succeeded in countering Western criticism of palm oil through increased exports, especially to China and India, said Prime Minister Datuk Seri Anwar Ibrahim.
He said RM63 million has been allocated to intensify the campaign against anti-palm oil and encourage sustainable certification, including by private smallholders.
Anwar, who is also Finance Minister, said that to reduce dependence on foreign workers and encourage local innovation, RM20 million has been provided to support start-up companies in producing mechanisation and automation products in partnership with the Malaysian Palm Oil Board (MPOB) and major palm oil companies.
The government is also safeguarding the fate of smallholders who toil and sweat to earn a living on the farms with an allocation of almost RM120 million, he said when tabling the Budget 2026 in the Dewan Rakyat today.
This includes supporting part of the cost of oil palm replanting for smallholders to replace ageing trees, encouraging rubber smallholders to produce rubber and redevelop abandoned private rubber plantations, and supplying cocoa smallholders with 1.1 million quality cocoa seedlings, including training assistance from industry players.
This also aims to reduce the burden on pepper smallholders due to the increasing cost of inputs such as fertilisers and pesticides, and support kenaf smallholders in increasing kenaf yields as one of the new sources of growth for agri-commodities.
Anwar also said that the Malaysian Rubber Board (MRB) will develop a centre of excellence for research to ensure the industry’s future sustainability, with an allocation of RM600 million.
The MRB will also implement a latex production incentive programme as well as the activation of abandoned rubber plantations, said the Prime Minister. Bernama
October 09, 2025
Indonesia Banks on B50 Palm Oil Fuel to End Diesel Import Next Year
Jayanty Nada Shofa/ Jakarta Globe
Jakarta. Indonesia is currently running road tests on B50, the biodiesel containing a 50 percent palm oil blend, as the country wishes to stop buying foreign diesel starting next year.
The resource-rich Indonesia has required the use of biodiesel made from palm oil and conventional diesel fuel. The current mandatory palm oil blend stands at 40 percent in a policy better known as the B40. The number corresponds to the palm oil content in the biodiesel. Indonesia is forging ahead with its plan to launch the B50 as it wishes to take advantage of its abundant palm oil supplies to cut down on imports.
According to Energy Minister Bahlil Lahadalia, the road tests, which aim to evaluate the B50’s performance on vehicles, are underway. Indonesia aims to implement the B50 mandate in the second semester of 2026, and seeks to finish the road tests by that time. The last round of road tests can take between 6 and 8 months. If everything goes well, Indonesia can end diesel imports next year.
--------
Berlin fails to agree fate of petrol, diesel cars in overnight talks
Talks between the government, carmakers and unions in Berlin today could have major repercussions for EU policy Euractiv
---------
Global palm oil exports hit historic highs this summer
In June-August 2025, global palm oil exports reached 14.8 million tonnes, a record high for the period on record and 1.7 million tonnes higher than the same period last year, according to Oil World (Germany).
Analysts attribute the increase in exports to improved price competitiveness for palm oil, which boosted demand. This contrasts with the decline in palm oil trade volumes in the first half of last season.
In particular, Indonesia increased its palm oil exports to 8.9 million tonnes, compared to 6.8 million tonnes in June-August last year, while Malaysia’s exports fell to 3.9 million tonnes (4.4 million tonnes).
China was the leading importer of palm oil with 1.66 million tonnes (1.56 million tonnes), followed by India with 2.86 million tonnes (2.48 million tonnes), the EU with 0.95 million tonnes (0.89 million tonnes), Bangladesh with 0.47 million tonnes (0.36 million tonnes), and Pakistan with 1.06 million tonnes (0.94 million tonnes).
Analysts also noted increases in palm oil exports to African countries: Egypt increased purchases to 0.42 million tonnes (0.3 million tonnes), and Kenya to 0.45 million tonnes (0.39 million tonnes).
According to OleoScope’s previous calculations, Indonesia increased its exports by more than one million tonnes to 25.6 million tonnes for the 2024/25 season, while Malaysia reduced shipments from 17.8 million tonnes to 17.0 million tonnes for the season.
For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.
It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data. UKR Agroconsult
--------
Indonesia and Netherlands Forge Partnership to Aid Palm Oil Smallholders
Indonesia has signed an agreement with the Netherlands aimed at supporting palm oil smallholders. The announcement was made by Indonesian Foreign Minister Sugiono during a joint briefing with Dutch counterpart David van Weel. This cooperation seeks to enhance the palm oil sector's sustainability and productivity.
In a significant move to bolster small-scale palm oil producers, Indonesia has entered into a memorandum of understanding with the Netherlands. The agreement, which was announced by Indonesian Foreign Minister Sugiono on Thursday, signals a commitment to support the sector viewed as crucial to the nation's economy.
Speaking at a joint press conference with Dutch Foreign Minister David van Weel, Sugiono emphasized the importance of this partnership. The accord aims to enhance the sustainability and productivity of palm oil smallholders, a critical component of Indonesia's agricultural landscape.
This collaboration highlights the ongoing efforts by both nations to address global concerns surrounding palm oil production, including environmental and socioeconomic issues. By joining forces, Indonesia and the Netherlands hope to lead by example in sustainable agriculture practices. Devdiscourse
---------
Leave no-one behind: smallholder farmers must be put at the centre of tackling deforestation in supply chains
Deforestation poses an existential threat to the climate, accounting for up to one fifth of all greenhouse gas emissions.
Agriculture is responsible for 90% of deforestation globally, with a significant proportion of crops grown in deforested areas bound for export. Consumption of goods like coffee and cocoa in high-income countries make a huge contribution to demand. The UK market is responsible for clearing a forest area the size of Liverpool every year.
It is therefore welcome to see the EU and the UK take steps to address this. However, the voices of smallholder farmers in low- and middle-income countries are missing from the conversation, with potentially devastating consequences.
Understanding new EU and UK deforestation regulations
The EU has introduced its Deforestation Regulation (EUDR), which sets strict due diligence requirements for commodities linked to deforestation (coffee, cocoa, cattle, palm oil, soy, timber and rubber). From the end of 2025, companies will need to verify that any of the listed products entering the EU market are deforestation-free and comply with local production laws in the country of origin.
The UK is introducing its own Forest Risk Commodities (UKFRC) scheme, which covers the same commodities as the EU except timber and coffee. Implementing legislation is anticipated in the coming months, but since so many supply chains come through the EU, UK companies are already getting ready for compliance.
The need to consult smallholder farmers in forested areas
The EUDR and UKFRC are a step in the right direction for climate action (although recent delay to enforcement has weakened the EUDR). However, the regulations will pose significant challenges for smallholder farmers in low- and middle-income countries who are responsible for producing the majority of some deforestation-risk commodities. For example, 90% of the world’s cocoa and 75% of coffee is produced by smallholders in forested areas across Africa, Latin America and Asia.
The EUDR and UKFRC have so far failed to meaningfully engage with the very communities that the regulations will most affect. Governments in low- and middle-income countries have repeatedly raised the issue. They are particularly aggrieved by rich countries’ failure to meet their climate commitments as they simultaneously demand more from low- and middle-income countries through environmental regulation.
If these governments feel shut out, it is no surprise that many smallholders find themselves as no more than ‘rule-takers’; unable to meet the new standards, let alone shape them to their own benefit.
Smallholder challenges to complying with new deforestation regulations
One of the biggest criticisms of the deforestation regulations is the one-size-fits-all approach to implementation. For instance, Ghana’s traceability system for cocoa is already established, while Sri Lanka does not yet have a system for rubber. Both supply chains will need to be compliant by the end of this year, but there is no provision for different levels of preparedness. There are similarly vast differences between supply chains and countries as to whether and how land is registered and what support is available to smallholder farmers.
The cost of complying with new deforestation rules could be devastating for smallholder farmers. Data on compliance costs vary, with one study showing that the EUDR will cost around 0.1% of the importer’s operating costs, and others citing a US$1.5 billion cost to consumers.
Even if these costs only amount to a small proportion of the importer’s total revenue, there is nothing to stop them being pushed up the supply chain to smallholder farmers who are unlikely to be able to afford them. Estimates from an Indonesian palm oil farmers’ organisation suggest that the initial outlay for EUDR compliance could be €70–€200 per farmer alone. Farmers may have to bear relatively huge compliance costs without receiving a higher price for their products. This could drive many out of UK and EU supply chains, or out of business completely.
A significant amount of data will be required to monitor compliance, which brings its own set of issues. Under the EUDR, farmers’ land plots are being mapped in polygons to show precise climate, biodiversity and yield information about each farm. If treated ethically, data can be a tool for empowerment. Farmer-led data cooperatives and transparent national traceability systems are emerging as promising models. These ensure farmers retain control over their digital information and can leverage it for better pricing, technical support or market access. However, data is being extracted in some instances without farmers’ meaningful consent or benefit.
Land tenure remains another major hurdle. Many smallholders work on land without formal titles. Proving legal ownership, as required under the EUDR, is therefore a significant challenge. The need to comply with the new regulation presents an opportunity: gaining more secure land rights can offer farmers long-term stability. However, achieving this is a huge task which will require significant resource, including to ensure that smallholders are part of the process, working with their respective governments.
How the UK government can ensure deforestation regulation includes smallholders BOND
Indonesia Banks on B50 Palm Oil Fuel to End Diesel Import Next Year
Jayanty Nada Shofa/ Jakarta Globe
Jakarta. Indonesia is currently running road tests on B50, the biodiesel containing a 50 percent palm oil blend, as the country wishes to stop buying foreign diesel starting next year.
The resource-rich Indonesia has required the use of biodiesel made from palm oil and conventional diesel fuel. The current mandatory palm oil blend stands at 40 percent in a policy better known as the B40. The number corresponds to the palm oil content in the biodiesel. Indonesia is forging ahead with its plan to launch the B50 as it wishes to take advantage of its abundant palm oil supplies to cut down on imports.
According to Energy Minister Bahlil Lahadalia, the road tests, which aim to evaluate the B50’s performance on vehicles, are underway. Indonesia aims to implement the B50 mandate in the second semester of 2026, and seeks to finish the road tests by that time. The last round of road tests can take between 6 and 8 months. If everything goes well, Indonesia can end diesel imports next year.
--------
Berlin fails to agree fate of petrol, diesel cars in overnight talks
Talks between the government, carmakers and unions in Berlin today could have major repercussions for EU policy Euractiv
---------
Global palm oil exports hit historic highs this summer
In June-August 2025, global palm oil exports reached 14.8 million tonnes, a record high for the period on record and 1.7 million tonnes higher than the same period last year, according to Oil World (Germany).
Analysts attribute the increase in exports to improved price competitiveness for palm oil, which boosted demand. This contrasts with the decline in palm oil trade volumes in the first half of last season.
In particular, Indonesia increased its palm oil exports to 8.9 million tonnes, compared to 6.8 million tonnes in June-August last year, while Malaysia’s exports fell to 3.9 million tonnes (4.4 million tonnes).
China was the leading importer of palm oil with 1.66 million tonnes (1.56 million tonnes), followed by India with 2.86 million tonnes (2.48 million tonnes), the EU with 0.95 million tonnes (0.89 million tonnes), Bangladesh with 0.47 million tonnes (0.36 million tonnes), and Pakistan with 1.06 million tonnes (0.94 million tonnes).
Analysts also noted increases in palm oil exports to African countries: Egypt increased purchases to 0.42 million tonnes (0.3 million tonnes), and Kenya to 0.45 million tonnes (0.39 million tonnes).
According to OleoScope’s previous calculations, Indonesia increased its exports by more than one million tonnes to 25.6 million tonnes for the 2024/25 season, while Malaysia reduced shipments from 17.8 million tonnes to 17.0 million tonnes for the season.
For almost 30 years of expertise in the agri markets, UkrAgroConsult has accumulated an extensive database, which became the basis of the platform AgriSupp.
It is a multi-functional online platform with market intelligence for grains and oilseeds that enables to get access to daily operational information on the Black Sea & Danube markets, analytical reports, historical data. UKR Agroconsult
--------
Indonesia and Netherlands Forge Partnership to Aid Palm Oil Smallholders
Indonesia has signed an agreement with the Netherlands aimed at supporting palm oil smallholders. The announcement was made by Indonesian Foreign Minister Sugiono during a joint briefing with Dutch counterpart David van Weel. This cooperation seeks to enhance the palm oil sector's sustainability and productivity.
In a significant move to bolster small-scale palm oil producers, Indonesia has entered into a memorandum of understanding with the Netherlands. The agreement, which was announced by Indonesian Foreign Minister Sugiono on Thursday, signals a commitment to support the sector viewed as crucial to the nation's economy.
Speaking at a joint press conference with Dutch Foreign Minister David van Weel, Sugiono emphasized the importance of this partnership. The accord aims to enhance the sustainability and productivity of palm oil smallholders, a critical component of Indonesia's agricultural landscape.
This collaboration highlights the ongoing efforts by both nations to address global concerns surrounding palm oil production, including environmental and socioeconomic issues. By joining forces, Indonesia and the Netherlands hope to lead by example in sustainable agriculture practices. Devdiscourse
---------
Leave no-one behind: smallholder farmers must be put at the centre of tackling deforestation in supply chains
Deforestation poses an existential threat to the climate, accounting for up to one fifth of all greenhouse gas emissions.
Agriculture is responsible for 90% of deforestation globally, with a significant proportion of crops grown in deforested areas bound for export. Consumption of goods like coffee and cocoa in high-income countries make a huge contribution to demand. The UK market is responsible for clearing a forest area the size of Liverpool every year.
It is therefore welcome to see the EU and the UK take steps to address this. However, the voices of smallholder farmers in low- and middle-income countries are missing from the conversation, with potentially devastating consequences.
Understanding new EU and UK deforestation regulations
The EU has introduced its Deforestation Regulation (EUDR), which sets strict due diligence requirements for commodities linked to deforestation (coffee, cocoa, cattle, palm oil, soy, timber and rubber). From the end of 2025, companies will need to verify that any of the listed products entering the EU market are deforestation-free and comply with local production laws in the country of origin.
The UK is introducing its own Forest Risk Commodities (UKFRC) scheme, which covers the same commodities as the EU except timber and coffee. Implementing legislation is anticipated in the coming months, but since so many supply chains come through the EU, UK companies are already getting ready for compliance.
The need to consult smallholder farmers in forested areas
The EUDR and UKFRC are a step in the right direction for climate action (although recent delay to enforcement has weakened the EUDR). However, the regulations will pose significant challenges for smallholder farmers in low- and middle-income countries who are responsible for producing the majority of some deforestation-risk commodities. For example, 90% of the world’s cocoa and 75% of coffee is produced by smallholders in forested areas across Africa, Latin America and Asia.
The EUDR and UKFRC have so far failed to meaningfully engage with the very communities that the regulations will most affect. Governments in low- and middle-income countries have repeatedly raised the issue. They are particularly aggrieved by rich countries’ failure to meet their climate commitments as they simultaneously demand more from low- and middle-income countries through environmental regulation.
If these governments feel shut out, it is no surprise that many smallholders find themselves as no more than ‘rule-takers’; unable to meet the new standards, let alone shape them to their own benefit.
Smallholder challenges to complying with new deforestation regulations
One of the biggest criticisms of the deforestation regulations is the one-size-fits-all approach to implementation. For instance, Ghana’s traceability system for cocoa is already established, while Sri Lanka does not yet have a system for rubber. Both supply chains will need to be compliant by the end of this year, but there is no provision for different levels of preparedness. There are similarly vast differences between supply chains and countries as to whether and how land is registered and what support is available to smallholder farmers.
The cost of complying with new deforestation rules could be devastating for smallholder farmers. Data on compliance costs vary, with one study showing that the EUDR will cost around 0.1% of the importer’s operating costs, and others citing a US$1.5 billion cost to consumers.
Even if these costs only amount to a small proportion of the importer’s total revenue, there is nothing to stop them being pushed up the supply chain to smallholder farmers who are unlikely to be able to afford them. Estimates from an Indonesian palm oil farmers’ organisation suggest that the initial outlay for EUDR compliance could be €70–€200 per farmer alone. Farmers may have to bear relatively huge compliance costs without receiving a higher price for their products. This could drive many out of UK and EU supply chains, or out of business completely.
A significant amount of data will be required to monitor compliance, which brings its own set of issues. Under the EUDR, farmers’ land plots are being mapped in polygons to show precise climate, biodiversity and yield information about each farm. If treated ethically, data can be a tool for empowerment. Farmer-led data cooperatives and transparent national traceability systems are emerging as promising models. These ensure farmers retain control over their digital information and can leverage it for better pricing, technical support or market access. However, data is being extracted in some instances without farmers’ meaningful consent or benefit.
Land tenure remains another major hurdle. Many smallholders work on land without formal titles. Proving legal ownership, as required under the EUDR, is therefore a significant challenge. The need to comply with the new regulation presents an opportunity: gaining more secure land rights can offer farmers long-term stability. However, achieving this is a huge task which will require significant resource, including to ensure that smallholders are part of the process, working with their respective governments.
How the UK government can ensure deforestation regulation includes smallholders BOND
October 08, 2025
Europe notches an early win in Indonesian free trade deal
Henry Storey/ Lowy Institute
EU trade with Southeast Asia has been undercooked, but a recent agreement augurs well for others in the pipeline.
European trade negotiators have surely never been busier. Europe, like all major industrial economies, is facing the dual threat of mercurial US tariffs and Chinese overcapacity – which despite rhetoric to the contrary, shows no real signs of abating.
“European” exports to China have for many years been disproportionality dominated by the German auto sector, albeit with strong linkages to central European supply chains. With German car sales in China in secular decline and Chinese peers looking abroad, the auto sector is not the dependable economic foundation for the Old Continent that it once was.
In June, European Commission President Ursula von der Leyen warned of a new “China shock” after reports emerged of sharp increases in EU-bound shipments of Chinese industrial goods. The EU is also increasingly concerned about overreliance on Chinese critical minerals.
The EU desperately needs new markets and supply chains. Less prosaically, Brussels wants to show that global trading rules and multilateralism still work. In early September, the European Commission formally submitted for ratification finalised texts of previously moribund agreements with Mexico and the Mercosur trade bloc, which will eventually eliminate almost all tariffs on EU goods. Ratification of a previously agreed trade deal with Mexico languished for seven years.
Labyrinthine negotiations with Mercosur first started in 1999 and are an instructive case study on aspects of the EU’s approach to trade. In the pre-Trump 2.0 era, French President Emmanuel Macron derided the Mercosur deal’s lack of climate and biodiversity protections. The President’s overriding concerns were actually much more parochial.
After much wrangling, Brussels will submit an “additional text” to the Mercosur agreement in order to placate Macron and his country’s habitually irascible farmers. While bypassing the need to renegotiate the agreement, this safeguard mechanism will make it easier to re-impose restrictions on more competitive South American agricultural exports.
---------
US Shutdown Causes Trade Deal Negotiations to Stall, Indonesia Says
Jakarta. The US government shutdown has caused Washington’s trade deal negotiations with Indonesia to stall, according to Jakarta’s chief negotiator Airlangga Hartarto, as the Southeast Asian nation tries to get its palm oil exempted from tariffs.
Indonesian goods are now subject to 19 percent tariffs when entering American soil under a deal that US President Donald Trump called “historic”. Both countries are now finalizing a document aimed at making the new tariffs more official. As the negotiations get underway, Indonesia also hopes to include a provision that saves its palm oil from duties. However, Jakarta revealed that the US government shutdown, which had stretched into its sixth day, had prevented the American negotiators from continuing the talks.
“The shutdown has put the negotiations to a temporary halt. But I will speak with US Trade Representative [Jamieson Greer] tonight to discuss the next steps. … But then again, we can’t give you a timeframe because of the shutdown, although we will keep an eye on the developments,” senior minister Airlangga told the press in Jakarta on Tuesday.
“We are at the legal scrubbing stage. What I can say is this upcoming document will be much more detailed compared to [the joint statement] announced back [in late July].”
It remains unclear whether the countries would have their leaders sign the document. President Prabowo Subianto not long ago met Trump in person during the UN General Assembly’s annual high-level session. While the two were seen briefly conversing on the margins of the forum, they did not hold official bilateral talks during the New York visit. Both presidents gathered with several Arab leaders to discuss the Gaza crisis.
A joint statement issued by the White House back in July showed that Indonesia had made some major concessions to appease Trump’s tariff wrath over trade imbalances. For instance, Jakarta agreed to get rid 99 percent of its tariff barriers for a “full range of” American industrial and agri-food products. The Southeast Asian country made multi-billion-dollar import pledges. Indonesia promised to procure $3.2 billion worth of aircraft and some $4.5 billion agricultural products. The deal includes $15 billion in purchases of American energy. Jakarta Globe
---------
Malaysia considers export duty for waste oil
Malaysia is considering introducing duties on waste-based oil exports, the Malaysian palm oil board (MPOB) said to Argus today.
The potential export duties would apply to specific waste-based oils such as used cooking oil (UCO) and palm oil mill effluent (Pome) oil. MPOB did not provide specifics on possible duty rates.
This is one of several policy suggestions aimed at encouraging domestic value addition and advancing Malaysia's circular economy and renewable energy objectives, MPOB said, adding that no decision has yet been made on its implementation.
Any official announcement will be issued by Malaysia's finance ministry, it said. Malaysia currently has no export duty for waste-based UCO and Pome oil, but crude palm oil (CPO) exports are levied at 10pc of the CPO reference price set for October.
By Malcolm Goh/ Argus Media
----------
DOPPA Advocates Carbon Trading For Sustainable Income In Rural Communities
KUALA LUMPUR, Oct 8 (Bernama) -- The Sarawak Dayak Oil Palm Planters Association (DOPPA) is calling for a groundbreaking initiative that integrates carbon trading to provide a stable income for rural communities in Sarawak.
Its president, Dr Napolean R Ningkos said that with approximately 1.7 million hectares of Native Customary Rights (NCR) land featuring significant forest cover, there is strong potential for these areas to make a substantial contribution to environmental conservation and community welfare.
"In alignment with the national No Deforestation, No Peat, No Exploitation (NDPE) policy, DOPPA also urges the government to implement a mechanism that compensates landowners for preserving their forested NCR lands.
"This initiative would not only support national environmental goals but also ensure that smallholders receive a sustainable income without resorting to expanding oil palm cultivation," he said in a statement to Bernama.
Napolean said DOPPA strongly believes that the successful implementation of the NDPE policy in Sarawak hinges on improving the livelihoods of indigenous peoples; and by adopting carbon trading, these communities can benefit economically while also playing a crucial role in forest conservation efforts.
As such, the association has called on the government to prioritise the development of a carbon trading framework that compensates landowners for maintaining their forested areas.
This innovative approach promises to balance economic development with environmental conservation, ensuring a sustainable future for Sarawak's rural communities.
"DOPPA looks forward to the government’s consideration of these proposals in the upcoming Budget 2026 and anticipates positive changes that will benefit Sarawak’s independent smallholders and the broader agricultural community," said Napolean.
Meanwhile, DOPPA also emphasised the need for a more effective replanting incentive scheme in Sarawak, highlighting that less than one per cent of the 48,000 independent smallholders in Sarawak have succeeded in their application to participate in the scheme.
The association attributes this to the cumbersome bureaucratic processes, particularly the verification of land applications by the Department of Land and Survey, Sarawak, which often requires an extended time period to complete all necessary checks.
He explained that the current scheme demands land title or status verification, thus delaying the approval process.
"This verification is necessary due to the matching grant requirement from both the federal government and Agrobank, amounting to RM18,000 per hectare for Sarawak.
“However, due to these bureaucratic hurdles, many oil palm smallholders are denied access, undermining the programme’s objectives," he said, adding that the federal government should introduce more flexible procedures.
The association also proposed that the government introduce a grant of RM9,000 per hectare as an incentive for smallholders who have completed their replanting, as this initiative could significantly alleviate development costs for independent smallholders.
DOPPA also recommends that this grant be channelled through the Ministry of Food Industry, Commodity and Regional Development Sarawak (MFicord) or MPOB Sarawak Regional, to ensure proper distribution to eligible smallholders.
In its Budget 2026 wishlist, DOPPA also calls upon the government to collaborate closely with non-governmental organisations (NGOs) and local government agencies to ensure that funding reaches those most in need.
Napolean said DOPPA remains committed to assisting in this effort, adding that it is prepared to provide support to ensure that resources are allocated efficiently and effectively to the targeted groups. BERNAMA
---------
With under 1pct S’wakian smallholders approved for federal replanting scheme, Dayak planters appeal for better access
KUCHING (Oct 8): The Sarawak Dayak Oil Palm Planters Association (Doppa) has called for a more effective and accessible replanting incentive scheme to better benefit independent oil palm smallholders in the state.
Its president Dr Napolean R Ningkos said the current success rate for independent smallholders applying for the federal replanting scheme remains alarmingly low, with less than 1 per cent of the 48,000 independent smallholders in Sarawak successfully approved.
He attributed this to cumbersome bureaucratic processes, particularly the land verification procedures carried out by the Sarawak Land and Survey Department.
“The current scheme demands land title or status verification, which delays the approval process. This verification is necessary due to the matching grant requirement from both the federal government and Agrobank, amounting to RM18,000 per hectare for Sarawak,” Napolean said in a statement.
He stressed that such administrative hurdles have denied many smallholders access to the incentive, thus undermining the scheme’s objectives.
To address this, Doppa proposed the federal government introduce more flexible procedures, including a direct government grant of RM9,000 per ha for smallholders who have completed their replanting, without the need for Agrobank’s matching contribution.
“This initiative could significantly ease development costs for independent smallholders,” he said, adding that the grant could be channelled through the Ministry of Food Industry, Commodity and Regional Development or Malaysian Palm Oil Board (MPOB) Sarawak Regional Office to ensure fair distribution to eligible recipients.
Napolean said the proposal forms part of Doppa’s wish-list for the national Budget 2026, which is set to be tabled in Parliament this Friday.
“Doppa wishes to highlight crucial needs and recommendations to support the thriving agricultural community in Sarawak,” he said, emphasising the association’s commitment to improving smallholders’ livelihoods and promoting sustainable practices.
Doppa also urged the government to prioritise upgrading farm roads to support agricultural diversification and integration efforts among rural farmers.
“Efficient access roads are vital for smooth transportation of agricultural products and play a significant role in advancing agricultural development,” said Napolean.
He added that improved infrastructure is essential to help independent smallholders diversify and integrate their farming activities effectively.
Doppa also called for closer collaboration between the government, non-governmental organisations, and local agencies to ensure that infrastructure funding reaches those most in need. The Borneo Post
---------
Europe notches an early win in Indonesian free trade deal
Henry Storey/ Lowy Institute
EU trade with Southeast Asia has been undercooked, but a recent agreement augurs well for others in the pipeline.
European trade negotiators have surely never been busier. Europe, like all major industrial economies, is facing the dual threat of mercurial US tariffs and Chinese overcapacity – which despite rhetoric to the contrary, shows no real signs of abating.
“European” exports to China have for many years been disproportionality dominated by the German auto sector, albeit with strong linkages to central European supply chains. With German car sales in China in secular decline and Chinese peers looking abroad, the auto sector is not the dependable economic foundation for the Old Continent that it once was.
In June, European Commission President Ursula von der Leyen warned of a new “China shock” after reports emerged of sharp increases in EU-bound shipments of Chinese industrial goods. The EU is also increasingly concerned about overreliance on Chinese critical minerals.
The EU desperately needs new markets and supply chains. Less prosaically, Brussels wants to show that global trading rules and multilateralism still work. In early September, the European Commission formally submitted for ratification finalised texts of previously moribund agreements with Mexico and the Mercosur trade bloc, which will eventually eliminate almost all tariffs on EU goods. Ratification of a previously agreed trade deal with Mexico languished for seven years.
Labyrinthine negotiations with Mercosur first started in 1999 and are an instructive case study on aspects of the EU’s approach to trade. In the pre-Trump 2.0 era, French President Emmanuel Macron derided the Mercosur deal’s lack of climate and biodiversity protections. The President’s overriding concerns were actually much more parochial.
After much wrangling, Brussels will submit an “additional text” to the Mercosur agreement in order to placate Macron and his country’s habitually irascible farmers. While bypassing the need to renegotiate the agreement, this safeguard mechanism will make it easier to re-impose restrictions on more competitive South American agricultural exports.
---------
US Shutdown Causes Trade Deal Negotiations to Stall, Indonesia Says
Jakarta. The US government shutdown has caused Washington’s trade deal negotiations with Indonesia to stall, according to Jakarta’s chief negotiator Airlangga Hartarto, as the Southeast Asian nation tries to get its palm oil exempted from tariffs.
Indonesian goods are now subject to 19 percent tariffs when entering American soil under a deal that US President Donald Trump called “historic”. Both countries are now finalizing a document aimed at making the new tariffs more official. As the negotiations get underway, Indonesia also hopes to include a provision that saves its palm oil from duties. However, Jakarta revealed that the US government shutdown, which had stretched into its sixth day, had prevented the American negotiators from continuing the talks.
“The shutdown has put the negotiations to a temporary halt. But I will speak with US Trade Representative [Jamieson Greer] tonight to discuss the next steps. … But then again, we can’t give you a timeframe because of the shutdown, although we will keep an eye on the developments,” senior minister Airlangga told the press in Jakarta on Tuesday.
“We are at the legal scrubbing stage. What I can say is this upcoming document will be much more detailed compared to [the joint statement] announced back [in late July].”
It remains unclear whether the countries would have their leaders sign the document. President Prabowo Subianto not long ago met Trump in person during the UN General Assembly’s annual high-level session. While the two were seen briefly conversing on the margins of the forum, they did not hold official bilateral talks during the New York visit. Both presidents gathered with several Arab leaders to discuss the Gaza crisis.
A joint statement issued by the White House back in July showed that Indonesia had made some major concessions to appease Trump’s tariff wrath over trade imbalances. For instance, Jakarta agreed to get rid 99 percent of its tariff barriers for a “full range of” American industrial and agri-food products. The Southeast Asian country made multi-billion-dollar import pledges. Indonesia promised to procure $3.2 billion worth of aircraft and some $4.5 billion agricultural products. The deal includes $15 billion in purchases of American energy. Jakarta Globe
---------
Malaysia considers export duty for waste oil
Malaysia is considering introducing duties on waste-based oil exports, the Malaysian palm oil board (MPOB) said to Argus today.
The potential export duties would apply to specific waste-based oils such as used cooking oil (UCO) and palm oil mill effluent (Pome) oil. MPOB did not provide specifics on possible duty rates.
This is one of several policy suggestions aimed at encouraging domestic value addition and advancing Malaysia's circular economy and renewable energy objectives, MPOB said, adding that no decision has yet been made on its implementation.
Any official announcement will be issued by Malaysia's finance ministry, it said. Malaysia currently has no export duty for waste-based UCO and Pome oil, but crude palm oil (CPO) exports are levied at 10pc of the CPO reference price set for October.
By Malcolm Goh/ Argus Media
----------
DOPPA Advocates Carbon Trading For Sustainable Income In Rural Communities
KUALA LUMPUR, Oct 8 (Bernama) -- The Sarawak Dayak Oil Palm Planters Association (DOPPA) is calling for a groundbreaking initiative that integrates carbon trading to provide a stable income for rural communities in Sarawak.
Its president, Dr Napolean R Ningkos said that with approximately 1.7 million hectares of Native Customary Rights (NCR) land featuring significant forest cover, there is strong potential for these areas to make a substantial contribution to environmental conservation and community welfare.
"In alignment with the national No Deforestation, No Peat, No Exploitation (NDPE) policy, DOPPA also urges the government to implement a mechanism that compensates landowners for preserving their forested NCR lands.
"This initiative would not only support national environmental goals but also ensure that smallholders receive a sustainable income without resorting to expanding oil palm cultivation," he said in a statement to Bernama.
Napolean said DOPPA strongly believes that the successful implementation of the NDPE policy in Sarawak hinges on improving the livelihoods of indigenous peoples; and by adopting carbon trading, these communities can benefit economically while also playing a crucial role in forest conservation efforts.
As such, the association has called on the government to prioritise the development of a carbon trading framework that compensates landowners for maintaining their forested areas.
This innovative approach promises to balance economic development with environmental conservation, ensuring a sustainable future for Sarawak's rural communities.
"DOPPA looks forward to the government’s consideration of these proposals in the upcoming Budget 2026 and anticipates positive changes that will benefit Sarawak’s independent smallholders and the broader agricultural community," said Napolean.
Meanwhile, DOPPA also emphasised the need for a more effective replanting incentive scheme in Sarawak, highlighting that less than one per cent of the 48,000 independent smallholders in Sarawak have succeeded in their application to participate in the scheme.
The association attributes this to the cumbersome bureaucratic processes, particularly the verification of land applications by the Department of Land and Survey, Sarawak, which often requires an extended time period to complete all necessary checks.
He explained that the current scheme demands land title or status verification, thus delaying the approval process.
"This verification is necessary due to the matching grant requirement from both the federal government and Agrobank, amounting to RM18,000 per hectare for Sarawak.
“However, due to these bureaucratic hurdles, many oil palm smallholders are denied access, undermining the programme’s objectives," he said, adding that the federal government should introduce more flexible procedures.
The association also proposed that the government introduce a grant of RM9,000 per hectare as an incentive for smallholders who have completed their replanting, as this initiative could significantly alleviate development costs for independent smallholders.
DOPPA also recommends that this grant be channelled through the Ministry of Food Industry, Commodity and Regional Development Sarawak (MFicord) or MPOB Sarawak Regional, to ensure proper distribution to eligible smallholders.
In its Budget 2026 wishlist, DOPPA also calls upon the government to collaborate closely with non-governmental organisations (NGOs) and local government agencies to ensure that funding reaches those most in need.
Napolean said DOPPA remains committed to assisting in this effort, adding that it is prepared to provide support to ensure that resources are allocated efficiently and effectively to the targeted groups. BERNAMA
---------
With under 1pct S’wakian smallholders approved for federal replanting scheme, Dayak planters appeal for better access
KUCHING (Oct 8): The Sarawak Dayak Oil Palm Planters Association (Doppa) has called for a more effective and accessible replanting incentive scheme to better benefit independent oil palm smallholders in the state.
Its president Dr Napolean R Ningkos said the current success rate for independent smallholders applying for the federal replanting scheme remains alarmingly low, with less than 1 per cent of the 48,000 independent smallholders in Sarawak successfully approved.
He attributed this to cumbersome bureaucratic processes, particularly the land verification procedures carried out by the Sarawak Land and Survey Department.
“The current scheme demands land title or status verification, which delays the approval process. This verification is necessary due to the matching grant requirement from both the federal government and Agrobank, amounting to RM18,000 per hectare for Sarawak,” Napolean said in a statement.
He stressed that such administrative hurdles have denied many smallholders access to the incentive, thus undermining the scheme’s objectives.
To address this, Doppa proposed the federal government introduce more flexible procedures, including a direct government grant of RM9,000 per ha for smallholders who have completed their replanting, without the need for Agrobank’s matching contribution.
“This initiative could significantly ease development costs for independent smallholders,” he said, adding that the grant could be channelled through the Ministry of Food Industry, Commodity and Regional Development or Malaysian Palm Oil Board (MPOB) Sarawak Regional Office to ensure fair distribution to eligible recipients.
Napolean said the proposal forms part of Doppa’s wish-list for the national Budget 2026, which is set to be tabled in Parliament this Friday.
“Doppa wishes to highlight crucial needs and recommendations to support the thriving agricultural community in Sarawak,” he said, emphasising the association’s commitment to improving smallholders’ livelihoods and promoting sustainable practices.
Doppa also urged the government to prioritise upgrading farm roads to support agricultural diversification and integration efforts among rural farmers.
“Efficient access roads are vital for smooth transportation of agricultural products and play a significant role in advancing agricultural development,” said Napolean.
He added that improved infrastructure is essential to help independent smallholders diversify and integrate their farming activities effectively.
Doppa also called for closer collaboration between the government, non-governmental organisations, and local agencies to ensure that infrastructure funding reaches those most in need. The Borneo Post
---------
October 07, 2025
Indonesia takes another step towards B50 biodiesel
By Reuters
JAKARTA, Oct 7 (Reuters) - Indonesia took another step towards launching biodiesel containing 50% palm-oil based biofuel (B50) by concluding laboratory tests, an energy ministry official said on Tuesday, as the country aims for implementation next year.
Palm-oil based biodiesel is currently mandated at 40% blend (B40) but Indonesia wants to increase the level to reduce its reliance on imports of fossil fuels.
The laboratory testing involved running an engine using the B50 fuel and was concluded in August. Officials will now carry out road tests, the energy ministry's bioenergy director, Edi Wibowo, told Reuters.
"Based on the test results we will move forward to launch road tests and testing on non-automotive machineries that run on diesel," he said.
The timing of the road test was still to be decided, he said.
Indonesia aims to make B50 mandatory in 2026, but it was unlikely to happen in January, a senior energy ministry official said in August.
Adopting B50 would require 20.1 million kilolitres of palm-oil based biofuel a year for mixing with regular petroleum diesel, compared to 15.6 million KL with B40, energy ministry data shows.
Reporting by Bernadette Christina Munthe; Writing by Fransiska Nangoy; Editing by Neil Fullick
---------
Indonesia Hands Over 1.8 Million Hectares of Seized Palm Oil Land to State Firm
Pangkalpinang. Indonesia’s Attorney General’s Office (AGO) has handed over 1.8 million hectares of seized palm oil plantations to state-owned company Agrinas Palma Nusantara to be managed and contribute to state revenue.
“The handover of the seized plantations is being carried out in stages,” AGO’s Head of Legal Information Center Anang Supriatna said after a separate asset handover ceremony in Pangkalpinang on Monday.
According to Anang, the total area of seized plantations under AGO’s control currently reaches 3.4 million hectares, including both palm oil and illegal mining concessions operating inside forest zones. Of that figure, 1.8 million hectares have been transferred to Agrinas Palma Nusantara, a state firm focusing on palm oil and green energy businesses.
“So far, we’ve handed over 1.5 million hectares to Agrinas, with the process conducted in four stages,” Anang said.
He explained that the Task Force for Forest and Mining Land Regularization (Satgas PKH) continues to identify and reclaim illegally operated plantation and mining areas to return them under state control.
“For now, actions against unlicensed companies in forest zones are still administrative in nature, mainly fines,” he said, adding that criminal prosecution would follow if company owners fail to cooperate.
The task force, formed to recover illegally exploited lands, has so far secured 3.4 million hectares out of the 4 million-hectare target set by the government.
Anang also noted that the fine mechanism for violating companies is still under discussion. “We’re still determining the penalty value. For those involved in criminal activities, law enforcement will proceed accordingly,” he said. Jakarta Globe
--------
Understanding the greenhouse gas emissions of different SAF pathways
We can understand the differing greenhouse gas (GHG) emission benefits of using sustainable aviation fuels (SAFs) by comparing their life-cycle emissions with the emissions of fossil jet fuel. While many sources indicate that SAFs reduce GHG emissions by up to 80%, today this applies only to SAFs produced using waste fat and oil feedstocks that are in limited supply. In contrast, other SAFs that use crops as feedstock may not reduce life-cycle GHG emissions at all. Let’s explore why this is and why transparency will be increasingly important as SAF production scales up.
Emissions accounting
Life-cycle emissions are the full set of GHG emissions associated with producing, processing, and delivering a fuel to the point of consumption and its final combustion. These are measured in terms of carbon dioxide equivalent. In the case of fossil jet fuel, the life cycle includes the emissions from extracting crude oil from the ground, refining it into jet fuel, and transporting the crude oil and finished fuel. When these emissions are divided by a fuel’s energy content, the resulting value is its carbon intensity.
For biofuels, the life-cycle emissions likewise include emissions from feedstock production (in this case, growing the biomass that will eventually become the fuel), conversion, and transport (Figure 1). However, there are three important distinctions when calculating the carbon intensity of biofuels. First, when wastes or byproducts are the feedstock, the emissions from producing the primary feedstock are not counted. For example, in the case of SAF derived from used cooking oil, emissions from producing the virgin (unused) vegetable oil are outside the life-cycle assessment system boundary. Second, CO2 released during biofuel combustion is treated as zero because this carbon was taken up from the atmosphere during photosynthesis (when the plant was growing) rather than extracted from underground. My colleague dives deeper into the complexities around this “netting out” assumption in another blog post, but as it doesn’t change the big picture I’m highlighting, I won’t discuss it further here. Finally, for crop-based fuels, indirect emissions from increased demand for agricultural land are also included.
Figure 1. The boundaries of SAF life-cycle emissions accounting Read more The ICCT
---------
Malaysia, South Korea partner to develop POME-based biogas network
PETALING JAYA: Malaysian Bioeconomy Development Corporation (Bioeconomy Corp), which comes under the purview of the Ministry of Science, Technology and Innovation Malaysia, has entered into a collaboration with South Korea-based renewable energy company Polaris Bio Co Ltd to develop palm oil mill effluent-based biogas upgrading facilities in Malaysia.
An initial RM30 million will be invested in the first facility as part of RM700 million total planned investments. The pilot project will validate the technical and financial feasibility of biogas upgrading and pave the way for the nationwide rollout of more than 20 facilities, which are expected to cut up to 384,000 tonnes of carbon dioxide equivalent each year.
The partnership will accelerate the commercialisation of biotechnology converting palm oil mill effluent (POME) into bio-compressed natural gas (bio-CNG), a sustainable fuel, while also creating internationally tradable carbon credits – known as Internationally Transferred Mitigation Outcomes under Article 6.2 of the Paris Agreement.
According to Bioeconomy Corp CEO Mohd Khairul Fidzal Abdul Razak, biogas development from oil palm biomass and waste in Malaysia has long been recognised as a strategic opportunity.
While early projects faced inconsistent yields, high maintenance costs and limited downstream integration, recent technological advances have improved efficiency and reliability, enabling biogas to be upgraded into bio-CNG, biomethane and green chemicals – making it a viable pathway for decarbonisation and integration into Malaysia’s renewable energy and bio-based industrial ecosystem.
“Over the past two years, Bioeconomy Corporation has witnessed a series of bioenergy partnerships from its BioNexus Status and Bio-based Accelerator companies, signalling a surge of activity in the sector and renewed investor confidence. This is reflected in our partnership with Polaris Bio, which will advance the government’s push to position bioenergy at the heart of Malaysia’s energy transition and power the country’s circular bioeconomy,” The SunMY
--------
Singapore-listed palm oil stocks seen benefiting as prices rise, ESG risks ease
SINGAPORE – Plantation stocks, which have lagged behind rising palm oil prices for much of the past decade, could make a comeback as tighter supply and easing environmental, social and governance (ESG) risks draw investors back.
Some counters could also benefit from further capital inflows in the months ahead, as selected asset managers prepare to deploy funds into promising Singapore stocks as part of a government-led effort to boost the local stock market.
In an Oct 2 report, Aletheia Capital analyst Nirgunan Tiruchelvam noted that tighter crude palm oil (CPO) supplies and strong demand from Asia are expected to drive up prices, with India set to increase palm oil imports and China likely to continue buying as its economy recovers. The Straits Times
Indonesia takes another step towards B50 biodiesel
By Reuters
JAKARTA, Oct 7 (Reuters) - Indonesia took another step towards launching biodiesel containing 50% palm-oil based biofuel (B50) by concluding laboratory tests, an energy ministry official said on Tuesday, as the country aims for implementation next year.
Palm-oil based biodiesel is currently mandated at 40% blend (B40) but Indonesia wants to increase the level to reduce its reliance on imports of fossil fuels.
The laboratory testing involved running an engine using the B50 fuel and was concluded in August. Officials will now carry out road tests, the energy ministry's bioenergy director, Edi Wibowo, told Reuters.
"Based on the test results we will move forward to launch road tests and testing on non-automotive machineries that run on diesel," he said.
The timing of the road test was still to be decided, he said.
Indonesia aims to make B50 mandatory in 2026, but it was unlikely to happen in January, a senior energy ministry official said in August.
Adopting B50 would require 20.1 million kilolitres of palm-oil based biofuel a year for mixing with regular petroleum diesel, compared to 15.6 million KL with B40, energy ministry data shows.
Reporting by Bernadette Christina Munthe; Writing by Fransiska Nangoy; Editing by Neil Fullick
---------
Indonesia Hands Over 1.8 Million Hectares of Seized Palm Oil Land to State Firm
Pangkalpinang. Indonesia’s Attorney General’s Office (AGO) has handed over 1.8 million hectares of seized palm oil plantations to state-owned company Agrinas Palma Nusantara to be managed and contribute to state revenue.
“The handover of the seized plantations is being carried out in stages,” AGO’s Head of Legal Information Center Anang Supriatna said after a separate asset handover ceremony in Pangkalpinang on Monday.
According to Anang, the total area of seized plantations under AGO’s control currently reaches 3.4 million hectares, including both palm oil and illegal mining concessions operating inside forest zones. Of that figure, 1.8 million hectares have been transferred to Agrinas Palma Nusantara, a state firm focusing on palm oil and green energy businesses.
“So far, we’ve handed over 1.5 million hectares to Agrinas, with the process conducted in four stages,” Anang said.
He explained that the Task Force for Forest and Mining Land Regularization (Satgas PKH) continues to identify and reclaim illegally operated plantation and mining areas to return them under state control.
“For now, actions against unlicensed companies in forest zones are still administrative in nature, mainly fines,” he said, adding that criminal prosecution would follow if company owners fail to cooperate.
The task force, formed to recover illegally exploited lands, has so far secured 3.4 million hectares out of the 4 million-hectare target set by the government.
Anang also noted that the fine mechanism for violating companies is still under discussion. “We’re still determining the penalty value. For those involved in criminal activities, law enforcement will proceed accordingly,” he said. Jakarta Globe
--------
Understanding the greenhouse gas emissions of different SAF pathways
We can understand the differing greenhouse gas (GHG) emission benefits of using sustainable aviation fuels (SAFs) by comparing their life-cycle emissions with the emissions of fossil jet fuel. While many sources indicate that SAFs reduce GHG emissions by up to 80%, today this applies only to SAFs produced using waste fat and oil feedstocks that are in limited supply. In contrast, other SAFs that use crops as feedstock may not reduce life-cycle GHG emissions at all. Let’s explore why this is and why transparency will be increasingly important as SAF production scales up.
Emissions accounting
Life-cycle emissions are the full set of GHG emissions associated with producing, processing, and delivering a fuel to the point of consumption and its final combustion. These are measured in terms of carbon dioxide equivalent. In the case of fossil jet fuel, the life cycle includes the emissions from extracting crude oil from the ground, refining it into jet fuel, and transporting the crude oil and finished fuel. When these emissions are divided by a fuel’s energy content, the resulting value is its carbon intensity.
For biofuels, the life-cycle emissions likewise include emissions from feedstock production (in this case, growing the biomass that will eventually become the fuel), conversion, and transport (Figure 1). However, there are three important distinctions when calculating the carbon intensity of biofuels. First, when wastes or byproducts are the feedstock, the emissions from producing the primary feedstock are not counted. For example, in the case of SAF derived from used cooking oil, emissions from producing the virgin (unused) vegetable oil are outside the life-cycle assessment system boundary. Second, CO2 released during biofuel combustion is treated as zero because this carbon was taken up from the atmosphere during photosynthesis (when the plant was growing) rather than extracted from underground. My colleague dives deeper into the complexities around this “netting out” assumption in another blog post, but as it doesn’t change the big picture I’m highlighting, I won’t discuss it further here. Finally, for crop-based fuels, indirect emissions from increased demand for agricultural land are also included.
Figure 1. The boundaries of SAF life-cycle emissions accounting Read more The ICCT
---------
Malaysia, South Korea partner to develop POME-based biogas network
PETALING JAYA: Malaysian Bioeconomy Development Corporation (Bioeconomy Corp), which comes under the purview of the Ministry of Science, Technology and Innovation Malaysia, has entered into a collaboration with South Korea-based renewable energy company Polaris Bio Co Ltd to develop palm oil mill effluent-based biogas upgrading facilities in Malaysia.
An initial RM30 million will be invested in the first facility as part of RM700 million total planned investments. The pilot project will validate the technical and financial feasibility of biogas upgrading and pave the way for the nationwide rollout of more than 20 facilities, which are expected to cut up to 384,000 tonnes of carbon dioxide equivalent each year.
The partnership will accelerate the commercialisation of biotechnology converting palm oil mill effluent (POME) into bio-compressed natural gas (bio-CNG), a sustainable fuel, while also creating internationally tradable carbon credits – known as Internationally Transferred Mitigation Outcomes under Article 6.2 of the Paris Agreement.
According to Bioeconomy Corp CEO Mohd Khairul Fidzal Abdul Razak, biogas development from oil palm biomass and waste in Malaysia has long been recognised as a strategic opportunity.
While early projects faced inconsistent yields, high maintenance costs and limited downstream integration, recent technological advances have improved efficiency and reliability, enabling biogas to be upgraded into bio-CNG, biomethane and green chemicals – making it a viable pathway for decarbonisation and integration into Malaysia’s renewable energy and bio-based industrial ecosystem.
“Over the past two years, Bioeconomy Corporation has witnessed a series of bioenergy partnerships from its BioNexus Status and Bio-based Accelerator companies, signalling a surge of activity in the sector and renewed investor confidence. This is reflected in our partnership with Polaris Bio, which will advance the government’s push to position bioenergy at the heart of Malaysia’s energy transition and power the country’s circular bioeconomy,” The SunMY
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Singapore-listed palm oil stocks seen benefiting as prices rise, ESG risks ease
SINGAPORE – Plantation stocks, which have lagged behind rising palm oil prices for much of the past decade, could make a comeback as tighter supply and easing environmental, social and governance (ESG) risks draw investors back.
Some counters could also benefit from further capital inflows in the months ahead, as selected asset managers prepare to deploy funds into promising Singapore stocks as part of a government-led effort to boost the local stock market.
In an Oct 2 report, Aletheia Capital analyst Nirgunan Tiruchelvam noted that tighter crude palm oil (CPO) supplies and strong demand from Asia are expected to drive up prices, with India set to increase palm oil imports and China likely to continue buying as its economy recovers. The Straits Times
October 06, 2025
Malaysia, South Korea partner to develop POME-based biogas network
The Malaysian Bioeconomy Development Corporation is teaming up with a South Korean company, Polaris Bio, to build a network of facilities across Malaysia. These facilities will use palm oil mill effluent, a byproduct of palm oil production, to create renewable biogas, reports Business Today.
The project will start with an initial investment of 30 million Malaysian Ringgit. The larger plan involves a total of 700 million Ringgit to build more than 20 facilities that will produce Bio-Compressed Natural Gas (Bio-CNG).
When the entire network is up and running, it is projected to reduce harmful carbon emissions by 384,000 tonnes every year. This reduction will also allow for the creation of internationally recognized carbon credits.
Mohd, Khairul Fidzal Abdul Razak, the Chief Executive Officer of the Bioeconomy Corporation stated that this project is a major step forward in transforming palm oil waste into a valuable source of clean power.
“New technologies now allow us to turn this biogas into cleaner fuels and chemicals,” he said. “This opens up fresh possibilities for reducing pollution and building a stronger bio-based industry.”
He also noted that this project shows increasing investor confidence in Malaysia’s bioenergy potential.
Junghwan Kim, CEO of Polaris Bio said the collaboration sets a strong example for international cooperation on climate action. He mentioned that the project builds on their experience with similar initiatives in Malaysia since 2020.
The agreement was formally exchanged at a major economic expo in Kuala Lumpur, with the Deputy Prime Minister and Minister of Energy Transition in attendance. Bio Energy Times
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Malaysian researchers turns palm oil by-product turned into carbon capture tool
News
Researchers have converted oil palm ash (OPA) – a byproduct of the combustion of palm kernel shells and fibres in palm oil mills – into a carbon capture material.
Malaysia is one of the world’s top producers of palm oil, which generates millions of tons of OPA. Now, research from Universiti Sains Malaysia (USM) shows that this byproduct can be transformed into an eco-friendly material capable of capturing carbon dioxide from the air.
Published in Carbon Research, this study was led by Dr. Azam Taufik Mohd Din from USM’s School of Chemical Engineering.
By treating raw oil palm ash with acid, then subjecting it to carbonisation and chemical activation using potassium hydroxide (KOH), they created a new material dubbed OPA-KOH(1:2), an adsorbent with a highly optimised mesoporous structure.
Despite having a surface area of 30.95m²/g - lower than many commercial activated carbons-the material achieved a CO₂ adsorption capacity of 2.9mmol/g (millimoles per gram). That performance is claimed to rival or exceed more expensive materials with much higher surface areas.
“This isn’t just recycling - it’s upcycling at the molecular level,” says Dr. Mohd Din. “We’re taking a waste product that often ends up in landfills and turning it into a high-performance tool for carbon capture.”
How It Works
With an average pore size of 72.71Å, OPA-KOH(1:2) creates an environment for CO₂ molecules to enter quickly and bind efficiently. Analysis revealed that adsorption is exothermic and spontaneous, primarily driven by physisorption - a process where CO₂ adheres to the surface through weak physical forces - supported by a minor contribution from weak chemisorption.
This dual mechanism means the material can capture CO₂ effectively under realistic conditions, making it a promising candidate for carbon capture, utilisation, and storage (CCUS) systems.
Machine Learning and Materials Science The EngineerUK
Malaysia, South Korea partner to develop POME-based biogas network
The Malaysian Bioeconomy Development Corporation is teaming up with a South Korean company, Polaris Bio, to build a network of facilities across Malaysia. These facilities will use palm oil mill effluent, a byproduct of palm oil production, to create renewable biogas, reports Business Today.
The project will start with an initial investment of 30 million Malaysian Ringgit. The larger plan involves a total of 700 million Ringgit to build more than 20 facilities that will produce Bio-Compressed Natural Gas (Bio-CNG).
When the entire network is up and running, it is projected to reduce harmful carbon emissions by 384,000 tonnes every year. This reduction will also allow for the creation of internationally recognized carbon credits.
Mohd, Khairul Fidzal Abdul Razak, the Chief Executive Officer of the Bioeconomy Corporation stated that this project is a major step forward in transforming palm oil waste into a valuable source of clean power.
“New technologies now allow us to turn this biogas into cleaner fuels and chemicals,” he said. “This opens up fresh possibilities for reducing pollution and building a stronger bio-based industry.”
He also noted that this project shows increasing investor confidence in Malaysia’s bioenergy potential.
Junghwan Kim, CEO of Polaris Bio said the collaboration sets a strong example for international cooperation on climate action. He mentioned that the project builds on their experience with similar initiatives in Malaysia since 2020.
The agreement was formally exchanged at a major economic expo in Kuala Lumpur, with the Deputy Prime Minister and Minister of Energy Transition in attendance. Bio Energy Times
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Malaysian researchers turns palm oil by-product turned into carbon capture tool
News
Researchers have converted oil palm ash (OPA) – a byproduct of the combustion of palm kernel shells and fibres in palm oil mills – into a carbon capture material.
Malaysia is one of the world’s top producers of palm oil, which generates millions of tons of OPA. Now, research from Universiti Sains Malaysia (USM) shows that this byproduct can be transformed into an eco-friendly material capable of capturing carbon dioxide from the air.
Published in Carbon Research, this study was led by Dr. Azam Taufik Mohd Din from USM’s School of Chemical Engineering.
By treating raw oil palm ash with acid, then subjecting it to carbonisation and chemical activation using potassium hydroxide (KOH), they created a new material dubbed OPA-KOH(1:2), an adsorbent with a highly optimised mesoporous structure.
Despite having a surface area of 30.95m²/g - lower than many commercial activated carbons-the material achieved a CO₂ adsorption capacity of 2.9mmol/g (millimoles per gram). That performance is claimed to rival or exceed more expensive materials with much higher surface areas.
“This isn’t just recycling - it’s upcycling at the molecular level,” says Dr. Mohd Din. “We’re taking a waste product that often ends up in landfills and turning it into a high-performance tool for carbon capture.”
How It Works
With an average pore size of 72.71Å, OPA-KOH(1:2) creates an environment for CO₂ molecules to enter quickly and bind efficiently. Analysis revealed that adsorption is exothermic and spontaneous, primarily driven by physisorption - a process where CO₂ adheres to the surface through weak physical forces - supported by a minor contribution from weak chemisorption.
This dual mechanism means the material can capture CO₂ effectively under realistic conditions, making it a promising candidate for carbon capture, utilisation, and storage (CCUS) systems.
Machine Learning and Materials Science The EngineerUK
October 05, 2025
Indonesian President Prabowo tells army to guard raw resources from foreign groups
President Prabowo Subianto told the military to guard the country’s vast natural resources from foreign entities, saying such groups have been “stealing” and “smuggling” Indonesia’s assets.
The military must help law enforcement and central and regional governments to protect the resources and ensure they are used to eradicate poverty, Mr Prabowo said in a speech at a ceremony commemorating the military’s 80th anniversary in Jakarta on Oct 5.
“It’s no secret that our natural resources are abundant and we, for hundreds of years, have been disturbed, invaded by foreign powers,” Mr Prabowo said to a crowd of thousands from the army, navy and air force.
“Up until today, until this very second, these irresponsible powers are still stealing, smuggling and taking much of our resources.”
Mr Prabowo, a former general, has aggressively sought tighter control of various parts of the economy – from natural resources to fiscal and monetary policy – since coming to office in 2024 as his administration pushes for 8 per cent economic growth. The expansion pace has not been seen in decades.
The President has expanded the military’s reach into civilian programmes, boosted defence spending, sped up changes to military laws and appointed senior officers to run state-owned enterprises, including those managing more than 1,000,000ha of palm oil plantations seized by the state. Straits Times
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Europe’s cocoa addiction seen driving forest destruction in Liberia
The European Union’s repeated delays in implementing its anti-deforestation regulation are drawing criticism after a new investigation revealed that Liberia’s expanding cocoa sector is driving widespread illegal forest clearance and fuelling labour exploitation, including the use of minors.
The report, released recently by the Initiatives for Community Development and Forest Conservation Association (IDEF), documents what it calls colossal deforestation in Liberia’s southeastern Grand Gedeh region, as thousands of producers from neighbouring Côte d’Ivoire cross the border in search of fertile land. Investigators also found evidence of possible child labour and human trafficking linked to cocoa farming, raising concerns that products destined for European markets are being tainted by rights abuses.
The findings expose the gap between Brussels’ regulatory ambitions and their real-world application. The EU Deforestation Regulation (EUDR), passed in 2023, was meant to bar imports of cocoa, coffee, palm oil and other commodities linked to forest loss after December 2020. But as the Commission considers further postponements to its rollout under pressure from industry and member states, campaigners warn that forest destruction is accelerating in some of the world’s most fragile ecosystems.
“While Europe dithers and keeps putting off the implementation of its law, there will be no forests left in Liberia and it will be too late. If Europe continues down this path, its international credibility will be called into question,” said Bakary Traoré, IDEF’s executive director.
Liberia has become a fresh frontier for cocoa production as land in Côte d’Ivoire, the world’s largest supplier, becomes exhausted after decades of deforestation and heavy pesticide use. The UN’s Food and Agriculture Organization estimates that Liberia still contains about 40 per cent of West Africa’s remaining primary forests, making it a target for cocoa expansion.
According to Global Forest Watch, Liberia has lost nearly a quarter of its tree cover since 2000, with cocoa farming a major contributor. In 2022 alone, forest loss reached 150,000 hectares.
IDEF’s survey in Grand Gedeh found an increase in the size of plots cleared for cultivation, with local families ceding between 50 and 300 hectares each, compared with 8 to 10 hectares documented in earlier years. Authorities have officially registered 38,000 newcomers to cocoa farming in the region, though the real number could be as much as three times higher once unrecorded migrants are included.
“The scale of deforestation is colossal. In ten years at most, Liberia’s vast forest cover could be nothing more than a distant memory,” Traoré said.
The report highlights not only ecological damage but also troubling labour practices. Migrant workers recruited to clear and cultivate cocoa plots are often hired informally through intermediaries, without contracts or wages. Instead, they are promised a share of profits once the land becomes productive, a system that leaves them dependent on landowners and vulnerable to exploitation.
Investigators noted that many of these workers appeared to be underage, despite claiming to be older than 20. “It is highly likely they were advised to do so by those who brought them here,” Traoré said.
Such findings risk reigniting concerns over child labour in West Africa’s cocoa supply chains, an issue that has dogged the industry for decades. Major chocolate manufacturers including Barry Callebaut, Nestlé and Mondelez have faced lawsuits and consumer backlash over their sourcing practices in Côte d’Ivoire and Ghana. There are concerns that Liberia’s emergence as a new supplier may complicate corporate compliance with sustainability pledges and expose companies to reputational risks.
Beyond environmental and labour issues, Liberia’s cocoa boom is also straining land governance. The country’s civil war in the 1990s left a legacy of contested property rights, and community leaders in Grand Gedeh say much of the land now being cleared for cocoa has been leased in violation of national law. Some plantations overlap with existing forestry concessions, increasing the likelihood of disputes.
“Land grabs have led to conflicts and tensions between community leaders, community members and cocoa farmers,” said Andrew Zelemen, secretary of the National Union of Community Forestry Development Committees of Liberia. He pointed to violent clashes earlier this year in the district of Gbarzon as evidence of the risks.
Local leaders have urged the government to strengthen oversight through the Liberia Land Authority, the Forestry Development Authority and the Ministry of Internal Affairs. But weak enforcement capacity and the economic allure of cocoa complicate efforts to halt encroachment.
The EU is by far the world’s largest importer of cocoa, accounting for more than 60 per cent of global demand. Brussels’ ability to police supply chains is therefore considered critical to shifting incentives for producers and governments in Africa. Business AM
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Ghana’s Palm Oil Registration Rules Spark Competitiveness Concerns
A regulatory initiative designed to strengthen Ghana’s palm oil sector is generating frustration among industry operators who warn that bureaucratic delays are handing competitive advantages to traders in neighboring countries.
Philip Nana Kwame Brobey, Chief Executive Officer of Phil Fry Oil, argues that while the Tree Crops Development Authority’s (TCDA) effort to formalize palm oil imports and exports is well-intentioned, cumbersome approval processes are undermining the very competitiveness the regulations aim to enhance.
“The system is simply too bureaucratic,” Brobey explained in an interview. “The time it takes for approvals and registration means our goods are delayed while importers from Côte d’Ivoire, Togo, and even Nigeria are cashing out faster. We support regulation, but it must be efficient. Every delay translates into a loss for Ghanaian businesses.”
Starting July 14, 2025, TCDA required all palm oil importers to register and obtain official permits to operate, with the regulation covering imports of Crude Palm Oil, Crude Palm Olein, and Refined Palm Olein. The directive, announced by CEO Dr. Andy Osei Okrah, enforces compliance with Legislative Instrument requirements as part of broader efforts to formalize the tree crops value chain, enhance revenue mobilization, and promote Ghana’s competitiveness in regional trade.
However, operators like Brobey describe what they call “bureaucratic bottlenecks” that risk undermining those objectives. The registration process reportedly involves multiple layers of documentation, verification, and follow-ups that can extend for weeks, delaying business operations and increasing costs.
“Many of us operate within tight timelines,” Brobey said. “When containers get stuck because paperwork isn’t completed, it’s not just a delay; it’s a chain reaction that affects transporters, retailers, and even consumers. Meanwhile, traders across the border move their products with minimal restrictions and take advantage of regional market gaps that we should be filling.”
The timing is particularly significant given the African Continental Free Trade Area (AfCFTA) context. Industry experts suggest Ghana stands to benefit considerably from structured palm oil trade systems—but only if regulatory processes align with market realities rather than creating friction. News Ghana
Indonesian President Prabowo tells army to guard raw resources from foreign groups
President Prabowo Subianto told the military to guard the country’s vast natural resources from foreign entities, saying such groups have been “stealing” and “smuggling” Indonesia’s assets.
The military must help law enforcement and central and regional governments to protect the resources and ensure they are used to eradicate poverty, Mr Prabowo said in a speech at a ceremony commemorating the military’s 80th anniversary in Jakarta on Oct 5.
“It’s no secret that our natural resources are abundant and we, for hundreds of years, have been disturbed, invaded by foreign powers,” Mr Prabowo said to a crowd of thousands from the army, navy and air force.
“Up until today, until this very second, these irresponsible powers are still stealing, smuggling and taking much of our resources.”
Mr Prabowo, a former general, has aggressively sought tighter control of various parts of the economy – from natural resources to fiscal and monetary policy – since coming to office in 2024 as his administration pushes for 8 per cent economic growth. The expansion pace has not been seen in decades.
The President has expanded the military’s reach into civilian programmes, boosted defence spending, sped up changes to military laws and appointed senior officers to run state-owned enterprises, including those managing more than 1,000,000ha of palm oil plantations seized by the state. Straits Times
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Europe’s cocoa addiction seen driving forest destruction in Liberia
The European Union’s repeated delays in implementing its anti-deforestation regulation are drawing criticism after a new investigation revealed that Liberia’s expanding cocoa sector is driving widespread illegal forest clearance and fuelling labour exploitation, including the use of minors.
The report, released recently by the Initiatives for Community Development and Forest Conservation Association (IDEF), documents what it calls colossal deforestation in Liberia’s southeastern Grand Gedeh region, as thousands of producers from neighbouring Côte d’Ivoire cross the border in search of fertile land. Investigators also found evidence of possible child labour and human trafficking linked to cocoa farming, raising concerns that products destined for European markets are being tainted by rights abuses.
The findings expose the gap between Brussels’ regulatory ambitions and their real-world application. The EU Deforestation Regulation (EUDR), passed in 2023, was meant to bar imports of cocoa, coffee, palm oil and other commodities linked to forest loss after December 2020. But as the Commission considers further postponements to its rollout under pressure from industry and member states, campaigners warn that forest destruction is accelerating in some of the world’s most fragile ecosystems.
“While Europe dithers and keeps putting off the implementation of its law, there will be no forests left in Liberia and it will be too late. If Europe continues down this path, its international credibility will be called into question,” said Bakary Traoré, IDEF’s executive director.
Liberia has become a fresh frontier for cocoa production as land in Côte d’Ivoire, the world’s largest supplier, becomes exhausted after decades of deforestation and heavy pesticide use. The UN’s Food and Agriculture Organization estimates that Liberia still contains about 40 per cent of West Africa’s remaining primary forests, making it a target for cocoa expansion.
According to Global Forest Watch, Liberia has lost nearly a quarter of its tree cover since 2000, with cocoa farming a major contributor. In 2022 alone, forest loss reached 150,000 hectares.
IDEF’s survey in Grand Gedeh found an increase in the size of plots cleared for cultivation, with local families ceding between 50 and 300 hectares each, compared with 8 to 10 hectares documented in earlier years. Authorities have officially registered 38,000 newcomers to cocoa farming in the region, though the real number could be as much as three times higher once unrecorded migrants are included.
“The scale of deforestation is colossal. In ten years at most, Liberia’s vast forest cover could be nothing more than a distant memory,” Traoré said.
The report highlights not only ecological damage but also troubling labour practices. Migrant workers recruited to clear and cultivate cocoa plots are often hired informally through intermediaries, without contracts or wages. Instead, they are promised a share of profits once the land becomes productive, a system that leaves them dependent on landowners and vulnerable to exploitation.
Investigators noted that many of these workers appeared to be underage, despite claiming to be older than 20. “It is highly likely they were advised to do so by those who brought them here,” Traoré said.
Such findings risk reigniting concerns over child labour in West Africa’s cocoa supply chains, an issue that has dogged the industry for decades. Major chocolate manufacturers including Barry Callebaut, Nestlé and Mondelez have faced lawsuits and consumer backlash over their sourcing practices in Côte d’Ivoire and Ghana. There are concerns that Liberia’s emergence as a new supplier may complicate corporate compliance with sustainability pledges and expose companies to reputational risks.
Beyond environmental and labour issues, Liberia’s cocoa boom is also straining land governance. The country’s civil war in the 1990s left a legacy of contested property rights, and community leaders in Grand Gedeh say much of the land now being cleared for cocoa has been leased in violation of national law. Some plantations overlap with existing forestry concessions, increasing the likelihood of disputes.
“Land grabs have led to conflicts and tensions between community leaders, community members and cocoa farmers,” said Andrew Zelemen, secretary of the National Union of Community Forestry Development Committees of Liberia. He pointed to violent clashes earlier this year in the district of Gbarzon as evidence of the risks.
Local leaders have urged the government to strengthen oversight through the Liberia Land Authority, the Forestry Development Authority and the Ministry of Internal Affairs. But weak enforcement capacity and the economic allure of cocoa complicate efforts to halt encroachment.
The EU is by far the world’s largest importer of cocoa, accounting for more than 60 per cent of global demand. Brussels’ ability to police supply chains is therefore considered critical to shifting incentives for producers and governments in Africa. Business AM
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Ghana’s Palm Oil Registration Rules Spark Competitiveness Concerns
A regulatory initiative designed to strengthen Ghana’s palm oil sector is generating frustration among industry operators who warn that bureaucratic delays are handing competitive advantages to traders in neighboring countries.
Philip Nana Kwame Brobey, Chief Executive Officer of Phil Fry Oil, argues that while the Tree Crops Development Authority’s (TCDA) effort to formalize palm oil imports and exports is well-intentioned, cumbersome approval processes are undermining the very competitiveness the regulations aim to enhance.
“The system is simply too bureaucratic,” Brobey explained in an interview. “The time it takes for approvals and registration means our goods are delayed while importers from Côte d’Ivoire, Togo, and even Nigeria are cashing out faster. We support regulation, but it must be efficient. Every delay translates into a loss for Ghanaian businesses.”
Starting July 14, 2025, TCDA required all palm oil importers to register and obtain official permits to operate, with the regulation covering imports of Crude Palm Oil, Crude Palm Olein, and Refined Palm Olein. The directive, announced by CEO Dr. Andy Osei Okrah, enforces compliance with Legislative Instrument requirements as part of broader efforts to formalize the tree crops value chain, enhance revenue mobilization, and promote Ghana’s competitiveness in regional trade.
However, operators like Brobey describe what they call “bureaucratic bottlenecks” that risk undermining those objectives. The registration process reportedly involves multiple layers of documentation, verification, and follow-ups that can extend for weeks, delaying business operations and increasing costs.
“Many of us operate within tight timelines,” Brobey said. “When containers get stuck because paperwork isn’t completed, it’s not just a delay; it’s a chain reaction that affects transporters, retailers, and even consumers. Meanwhile, traders across the border move their products with minimal restrictions and take advantage of regional market gaps that we should be filling.”
The timing is particularly significant given the African Continental Free Trade Area (AfCFTA) context. Industry experts suggest Ghana stands to benefit considerably from structured palm oil trade systems—but only if regulatory processes align with market realities rather than creating friction. News Ghana
October 04, 2025
EUDR delay to allow Cameroon exporters of cocoa, coffee to prepare
(Business in Cameroon) - The European Union’s anti-deforestation regulation (EUDR), which will ban imports of cocoa, coffee, rubber, palm oil, soy, beef, and timber linked to deforested areas, may now take effect on January 1, 2027, instead of 2026.
In a letter dated September 23, 2025, EU Environment Commissioner Jessika Roswall said she was considering a one-year postponement, pending approval by the relevant authorities. She cited the incapacity of the IT platform tasked with handling compliance declarations to manage the expected volume of data.
For Cameroon, the delay would be an opportunity to better prepare for the regulation. While officials say the cocoa and coffee sectors are ready to meet the new EU requirements, little information is available about the readiness of the timber and rubber sectors, which still export significant volumes to Europe despite growing Asian demand.
By contrast, Cameroonian exports of palm oil, soy, and beef to the EU are minimal or virtually non-existent. Business in Cameroon
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INDEF: Indian Palm Oil Market Starts Demanding Sustainability on top of price
JAKARTA – Senior Economist of the Institute for Development of Economics and Finance (INDEF) Fadhil Hasan has reminded that there are at least five major issues that should get the attention of palm industry players in undertaking the trade relations between Indonesia and India.
Speaking during the webinar on “Palm Oil as a Strategic Corridor: Strengthening Indonesia-India Economic and Trade Cooperation”, which was organized by INDEF on Monday (22/9/2025), Fadhil said that the first issue is concerned with the significant decrease of India’s import of palm oil from Indonesia since 2024. “During January to June 2025, India’s import volume declined by around 28 percent if compared to that of the same period at the previous year. This was caused by the increase of palm oil price at global market,” he said.
“India is known as highly price sensitive market. Once the palm oil price gets higher or equal to other vegetable oils, they tend to turn to soybean,” said Fadhil.
The second issue is concerned with the increase of local consumption of palm oil to meet the need for biodiesel production under the government’s mandatory biodiesel program.
“Currently, the Indonesian government has implemented the B40 mandatory program, which is feared by India to continue reducing the availability of palm oil supply for export. “We don’t know yet whether the government will upgrade it in 2026 from B40 to B50 or perhaps vice versa to a lower blending. This is one factor that affects the import of India,” he said.
He also noted that currently India is also pushing for the realization of its self-sufficiency target in vegetable oils in 2040. The country has been pursuing efforts to increase local production of palm oil, which is seen by Fadhil as an opportunity for Indonesia to establish collaboration on palm oil production. “They need quality palm seedlings, and Indonesia can play a very big role in such business. So, I think we shouldn’t just see it as a threat,” he said.
The third issue is the inconsistency of tariff policy imposed by India, which is seen as one factor that makes it hard to predict export. Fadhil underlined the importance of intensive policy dialogue to ensure the certainty and consistency of regulations. “When tariff changes very often, then it will be difficult for exporters to set plan on volume. We’ve started positive campaigns during the last two years in India. As part of the campaigns, we also pursue dialog on policies,” he said.
The fourth issue is about the wrong perception among Indian people that palm oil is inferior to other vegetable oils. “But in fact, from the perspective of health, the palm oil has an advantage. This should be corrected through public education so that they will realize the palm oil is on par with other vegetable oils or even better than the others,” he said.
Fadhil said that the fifth issue is concerned with the practice of sustainability in the palm oil products they import. “This is in line with the global trend. India used to only pay attention to price. But now they have also demanded sustainability. This is in line with Indonesia’s commitment to reducing emissions,” he said.
Fadhil emphasized that palm oil trade relations between Indonesia and India should go beyond trade. “Cooperation should be expanded to also cover research, investments, joint campaigns and efforts to strengthen sustainability standard,” he said. GAPKI
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From palm waste to carbon catcher: Malaysian scientists turn agricultural leftovers into high-performance CO₂ sponge
Dr. Azam Taufik Mohd Din and team at Universiti Sains Malaysia pioneer a sustainable, low-cost adsorbent using oil palm ash—backed by machine learning predictions with near-perfect accuracy
Peer-Reviewed Publication
Biochar Editorial Office, Shenyang Agricultural University
In Malaysia, one of the world’s top producers of palm oil, millions of tons of oil palm ash (OPA) are left behind as agricultural waste every year—a disposal challenge that could soon become a climate solution. Now, groundbreaking research from Universiti Sains Malaysia (USM) shows that this humble byproduct can be transformed into a powerful, eco-friendly material capable of capturing carbon dioxide from the air. Published on August 18, 2025, in Carbon Research as an open-access original article, this innovative study was led by Dr. Azam Taufik Mohd Din from the School of Chemical Engineering at Universiti Sains Malaysia’s Engineering Campus in Nibong Tebal, Penang. The team didn’t just repurpose waste—they engineered it. By treating raw oil palm ash with acid, then subjecting it to carbonization and chemical activation using potassium hydroxide (KOH), they created a new material dubbed OPA-KOH(1:2). The result? A tailor-made adsorbent with a highly optimized mesoporous structure—pores so precisely shaped that they allow CO₂ molecules to flow in easily and stick effectively. Despite having a modest surface area of 30.95 m²/g—far lower than many commercial activated carbons—the material achieved an impressive CO₂ adsorption capacity of 2.9 mmol/g. That performance rivals or even exceeds more expensive materials with much higher surface areas, proving that pore architecture matters more than size alone. “This isn’t just recycling—it’s upcycling at the molecular level,” says Dr. Mohd Din. “We’re taking a waste product that often ends up in landfills and turning it into a high-performance tool for carbon capture.”
How It Works: Small Pores, Big Impact
The secret lies in the structure. With an average pore size of 72.71 Å, OPA-KOH(1:2) creates an ideal environment for CO₂ molecules to enter quickly and bind efficiently. Comprehensive analysis revealed that adsorption is exothermic and spontaneous, primarily driven by physisorption—a process where CO₂ sticks to the surface through weak physical forces—supported by a minor contribution from weak chemisorption, enhancing overall stability. This dual mechanism means the material can capture CO₂ effectively under realistic conditions, making it a promising candidate for real-world carbon capture, utilization, and storage (CCUS) systems.
Machine Learning Meets Materials Science
What sets this study apart is its fusion of experimental science with artificial intelligence. Recognizing that traditional modeling has limits, the team deployed machine learning (ML) algorithms to predict CO₂ adsorption behavior. Among several models tested, a bilayered neural network (NN) emerged as a star performer—achieving an astonishing R² value greater than 0.99, meaning it predicted experimental outcomes with near-perfect accuracy. “This shows ML isn’t just a trend—it’s becoming essential,” explains Dr. Mohd Din. “It allows us to simulate, optimize, and understand adsorption processes faster and more deeply than ever before.” The successful integration of ML opens doors for accelerating the design of next-generation adsorbents, reducing trial-and-error in the lab, and scaling up sustainable technologies more efficiently.
A Win for Sustainability and Industry Eureka Alert
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Kinabatangan orangutan partnership strengthens conservation, palm oil collaboration
SANDAKAN: A landmark partnership to protect Borneo’s endangered orangutans has been sealed in Kinabatangan.
The pact signals new collaboration between Sabah’s palm oil industry and wildlife conservationists.
The Memorandum of Understanding was exchanged on Thursday (Oct 2) under the Orangutan Diplomacy Programme at the Sungai Pin Conservation Area.
It builds on an earlier agreement between the Malaysian Palm Oil Green Conservation Foundation and Sawit Kinabalu subsidiary Borneo Samudera Sdn Bhd.
The collaboration is a significant step in balancing plantation development with biodiversity protection, said Datuk Yusran Shah Mohd Yusof.
“It is crucial to ensure orangutans can move freely in their natural habitat,” he said, adding that they must be free from disturbance by human activities, plantation operations or uncontrolled tourism.
The initiative follows Kinabatangan’s recognition as Malaysia’s newest UNESCO Biosphere Reserve. The StarMY
EUDR delay to allow Cameroon exporters of cocoa, coffee to prepare
(Business in Cameroon) - The European Union’s anti-deforestation regulation (EUDR), which will ban imports of cocoa, coffee, rubber, palm oil, soy, beef, and timber linked to deforested areas, may now take effect on January 1, 2027, instead of 2026.
In a letter dated September 23, 2025, EU Environment Commissioner Jessika Roswall said she was considering a one-year postponement, pending approval by the relevant authorities. She cited the incapacity of the IT platform tasked with handling compliance declarations to manage the expected volume of data.
For Cameroon, the delay would be an opportunity to better prepare for the regulation. While officials say the cocoa and coffee sectors are ready to meet the new EU requirements, little information is available about the readiness of the timber and rubber sectors, which still export significant volumes to Europe despite growing Asian demand.
By contrast, Cameroonian exports of palm oil, soy, and beef to the EU are minimal or virtually non-existent. Business in Cameroon
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INDEF: Indian Palm Oil Market Starts Demanding Sustainability on top of price
JAKARTA – Senior Economist of the Institute for Development of Economics and Finance (INDEF) Fadhil Hasan has reminded that there are at least five major issues that should get the attention of palm industry players in undertaking the trade relations between Indonesia and India.
Speaking during the webinar on “Palm Oil as a Strategic Corridor: Strengthening Indonesia-India Economic and Trade Cooperation”, which was organized by INDEF on Monday (22/9/2025), Fadhil said that the first issue is concerned with the significant decrease of India’s import of palm oil from Indonesia since 2024. “During January to June 2025, India’s import volume declined by around 28 percent if compared to that of the same period at the previous year. This was caused by the increase of palm oil price at global market,” he said.
“India is known as highly price sensitive market. Once the palm oil price gets higher or equal to other vegetable oils, they tend to turn to soybean,” said Fadhil.
The second issue is concerned with the increase of local consumption of palm oil to meet the need for biodiesel production under the government’s mandatory biodiesel program.
“Currently, the Indonesian government has implemented the B40 mandatory program, which is feared by India to continue reducing the availability of palm oil supply for export. “We don’t know yet whether the government will upgrade it in 2026 from B40 to B50 or perhaps vice versa to a lower blending. This is one factor that affects the import of India,” he said.
He also noted that currently India is also pushing for the realization of its self-sufficiency target in vegetable oils in 2040. The country has been pursuing efforts to increase local production of palm oil, which is seen by Fadhil as an opportunity for Indonesia to establish collaboration on palm oil production. “They need quality palm seedlings, and Indonesia can play a very big role in such business. So, I think we shouldn’t just see it as a threat,” he said.
The third issue is the inconsistency of tariff policy imposed by India, which is seen as one factor that makes it hard to predict export. Fadhil underlined the importance of intensive policy dialogue to ensure the certainty and consistency of regulations. “When tariff changes very often, then it will be difficult for exporters to set plan on volume. We’ve started positive campaigns during the last two years in India. As part of the campaigns, we also pursue dialog on policies,” he said.
The fourth issue is about the wrong perception among Indian people that palm oil is inferior to other vegetable oils. “But in fact, from the perspective of health, the palm oil has an advantage. This should be corrected through public education so that they will realize the palm oil is on par with other vegetable oils or even better than the others,” he said.
Fadhil said that the fifth issue is concerned with the practice of sustainability in the palm oil products they import. “This is in line with the global trend. India used to only pay attention to price. But now they have also demanded sustainability. This is in line with Indonesia’s commitment to reducing emissions,” he said.
Fadhil emphasized that palm oil trade relations between Indonesia and India should go beyond trade. “Cooperation should be expanded to also cover research, investments, joint campaigns and efforts to strengthen sustainability standard,” he said. GAPKI
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From palm waste to carbon catcher: Malaysian scientists turn agricultural leftovers into high-performance CO₂ sponge
Dr. Azam Taufik Mohd Din and team at Universiti Sains Malaysia pioneer a sustainable, low-cost adsorbent using oil palm ash—backed by machine learning predictions with near-perfect accuracy
Peer-Reviewed Publication
Biochar Editorial Office, Shenyang Agricultural University
In Malaysia, one of the world’s top producers of palm oil, millions of tons of oil palm ash (OPA) are left behind as agricultural waste every year—a disposal challenge that could soon become a climate solution. Now, groundbreaking research from Universiti Sains Malaysia (USM) shows that this humble byproduct can be transformed into a powerful, eco-friendly material capable of capturing carbon dioxide from the air. Published on August 18, 2025, in Carbon Research as an open-access original article, this innovative study was led by Dr. Azam Taufik Mohd Din from the School of Chemical Engineering at Universiti Sains Malaysia’s Engineering Campus in Nibong Tebal, Penang. The team didn’t just repurpose waste—they engineered it. By treating raw oil palm ash with acid, then subjecting it to carbonization and chemical activation using potassium hydroxide (KOH), they created a new material dubbed OPA-KOH(1:2). The result? A tailor-made adsorbent with a highly optimized mesoporous structure—pores so precisely shaped that they allow CO₂ molecules to flow in easily and stick effectively. Despite having a modest surface area of 30.95 m²/g—far lower than many commercial activated carbons—the material achieved an impressive CO₂ adsorption capacity of 2.9 mmol/g. That performance rivals or even exceeds more expensive materials with much higher surface areas, proving that pore architecture matters more than size alone. “This isn’t just recycling—it’s upcycling at the molecular level,” says Dr. Mohd Din. “We’re taking a waste product that often ends up in landfills and turning it into a high-performance tool for carbon capture.”
How It Works: Small Pores, Big Impact
The secret lies in the structure. With an average pore size of 72.71 Å, OPA-KOH(1:2) creates an ideal environment for CO₂ molecules to enter quickly and bind efficiently. Comprehensive analysis revealed that adsorption is exothermic and spontaneous, primarily driven by physisorption—a process where CO₂ sticks to the surface through weak physical forces—supported by a minor contribution from weak chemisorption, enhancing overall stability. This dual mechanism means the material can capture CO₂ effectively under realistic conditions, making it a promising candidate for real-world carbon capture, utilization, and storage (CCUS) systems.
Machine Learning Meets Materials Science
What sets this study apart is its fusion of experimental science with artificial intelligence. Recognizing that traditional modeling has limits, the team deployed machine learning (ML) algorithms to predict CO₂ adsorption behavior. Among several models tested, a bilayered neural network (NN) emerged as a star performer—achieving an astonishing R² value greater than 0.99, meaning it predicted experimental outcomes with near-perfect accuracy. “This shows ML isn’t just a trend—it’s becoming essential,” explains Dr. Mohd Din. “It allows us to simulate, optimize, and understand adsorption processes faster and more deeply than ever before.” The successful integration of ML opens doors for accelerating the design of next-generation adsorbents, reducing trial-and-error in the lab, and scaling up sustainable technologies more efficiently.
A Win for Sustainability and Industry Eureka Alert
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Kinabatangan orangutan partnership strengthens conservation, palm oil collaboration
SANDAKAN: A landmark partnership to protect Borneo’s endangered orangutans has been sealed in Kinabatangan.
The pact signals new collaboration between Sabah’s palm oil industry and wildlife conservationists.
The Memorandum of Understanding was exchanged on Thursday (Oct 2) under the Orangutan Diplomacy Programme at the Sungai Pin Conservation Area.
It builds on an earlier agreement between the Malaysian Palm Oil Green Conservation Foundation and Sawit Kinabalu subsidiary Borneo Samudera Sdn Bhd.
The collaboration is a significant step in balancing plantation development with biodiversity protection, said Datuk Yusran Shah Mohd Yusof.
“It is crucial to ensure orangutans can move freely in their natural habitat,” he said, adding that they must be free from disturbance by human activities, plantation operations or uncontrolled tourism.
The initiative follows Kinabatangan’s recognition as Malaysia’s newest UNESCO Biosphere Reserve. The StarMY
October 03, 2025
China Pushes Indonesia for Palm Oil, Rubber Supply Guarantees
China asked Indonesia to guarantee long-term supplies of crude palm oil (CPO), natural rubber, and edible bird’s nest during bilateral farm talks in Jakarta on Tuesday, Indonesia’s vice minister of agriculture, Sudaryono, said.
“Indonesia is open to cooperation in this field,” said Sudaryono. He added, “We want to access the market directly without going through other countries so that it can go straight to China.” China Global South
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Irish dairy export volumes to Indonesia could resume with CEPA
The trade deal signed between the EU and Indonesia last week will reduce to zero the tariffs on Irish dairy and meat exports to the Asian nation of more than 280 million people. Currently meat and dairy exports from the EU are subject to between 5% and 20% duties.
The deal, which is called a Comprehensive Economic Partnership Agreement (CEPA) rather than a free trade agreement, has been in negotiation since July 2016. The finalising of the agreement comes as the EU looks to diversify its trading links due to US President Donald Trump’s aggressive trade policies.
Ireland’s food and drink exports to the country have been dominated by dairy which accounted for almost the entirety of the €20m of exports last year. Indonesia previously was a good customer for Irish infant food and fat-filled milk powder, but the exports of both of those was significantly reduced in 2024.
Exports of infant food dropped from €2.3m in 2022 to zero in 2024 and fell from €21.6m for fat-filled milk powder in 2023 to €5m in 2024.
In a statement on the deal, the EU Commission said that agri-food exports from the EU to Indonesia totalled €1bn last year, with total exports of goods to the country amounting to €5.7bn.
Indonesia will have tariff-free access to EU markets for around 80% of its exports, including palm oil, textiles and footwear.
The CEPA is the third trade deal between the EU and Southeast Asian countries after those with Singapore and Vietnam. The deal must be ratified by EU member states, the European Parliament and Indonesia. Farmers Journal
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Turning Malaysia into a sustainable aviation fuel hub
Malaysia is set to begin its first domestic production of sustainable aviation fuel (SAF) by end-2025 at its first biofuel refinery in Johor.
The facility will convert feedstocks such as used cooking oil (UCO) and palm oil mill effluent (POME) into SAF, bio-naphtha and hydrotreated vegetable oils (HVOs) — positioning the country as a regional SAF hub through EcoCeres Inc and its Malaysian subsidiary, EcoCeres Renewable Fuels Sdn Bhd.
EcoCeres CEO Matti Lievonen says: “EcoCeres is the second-biggest SAF producer in the world and Malaysia has a plan to produce SAF. We source feedstocks such as UCO and POME locally and produce SAF that can be supplied to major airports, including the Kuala Lumpur International Airport.”
In 2023, EcoCeres announced a substantial investment in a new biofuel production facility in Pasir Gudang, Johor, to serve as a major production hub for HVO, SAF and bio-naphtha, with an initial capacity target of 350,000 tonnes annually.
According to the company’s 2024 sustainability report, the plant — the first in Malaysia to produce SAF — is now expected to reach 420,000 tonnes per year, effectively doubling its overall output.
Two years after the initial announcement, EcoCeres has revised its target upward, with 85% of production dedicated to SAF, says Lievonen.
The plant features dedicated pipelines connected to port storage tanks, establishing an efficient logistics system and enhancing product yield efficiency. The Edge
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Plasma Conflicts continue between Simangambat Indigenous people and palm oil company PN Padang Sidimpuan
JAKARTA - The plasma land dispute has resurfaced in Padang Lawas Utara, North Sumatra, after the indigenous people of Simangang Bata demanded plasma plantation rights on 20% of the oil palm plantation area owned by the company. The dispute, which unfolded at the Padang Sidimpuan District Court (PN), attracted public attention as it showed high public interest in the mediation process.
Iskandar Sitrus, founding director of the Indonesian Audit and Oversight Agency (IAW), assessed the incident as the beginning of a change in which the state has begun to recognize people's right to plasma as a legal obligation, not just a social bonus from companies.
"The country did not listen. The Forest Area Regulation Task Force (PKH) and PT Agrinas Palma Nusantara have acknowledged that plasma is indeed a legal obligation and have begun to open up. This is a good start," Iskandar said on Friday, October 3.
The Simanggabat Indigenous people's demands began with the promise of the oil palm plantation company, which failed to fulfill its plasma obligations. Residents said that for many years they had only been promised plasma, but that this was never fulfilled.
This ambiguity caused disappointment and finally in mid-2025 they filed a lawsuit with PN Padangsidinpuan, demanding plasma rights as stipulated in the law.
Plasma disputes are not new. Based on IAW findings from Supreme Inspectorate (BPK) reports over the past 20 years, delays in plasma delivery have averaged 7.8 to 10 years, but the regulation limits it to a maximum of three years.
Only 12% of companies consistently distribute plasma, while partnership funds are often misallocated, amounting to up to Rp 2.3 trillion. Furthermore, 45% of plasma land is not certified, and approximately 78% of technology development programs are not continuing, making them prone to agricultural conflict.
Some big names in palm oil companies are named IAW in the Plasma Red Record, including Sinar Mas, Longsum, Thorganda, Wilmar, First Resources, Asia Agri, Astra Agro, Suryadumai and Musim Mas.
Private companies are believed to often ignore plasma obligations, in contrast to PT Agrinas Palma Nusantara, which has begun to open the door to dialogue even though its legal status is not fully finalized.
During the mediation process of the PN Padangsidimpuan, Agrinas requested the support of the DPR RI on regulations to accelerate the release of forest areas so that the plasma obligations can be realized. According to the IAW, the citizens' proposals are very realistic in the form of written commitments, gradual realization, and joint supervision.
Political support for plasma is also beginning to grow. Riau DPRD Chairman Kaderis Manto encouraged the establishment of a special committee (Pansus Plasma 20 percent) after numerous reports from the community. "Pansus is our commitment to protecting the people," he said.
Iskandar said that if Padang Sidimpuan is a legal arena, Riau will be a political arena. Both point to a new direction that Plasma can no longer ignore.
"The question is whether Padang Sidimpuan and Riau will be the start of a new chapter in nationwide plasma enforcement or just a small record in the long history of palm oil betrayal," he said. Voice of Indonesia
China Pushes Indonesia for Palm Oil, Rubber Supply Guarantees
China asked Indonesia to guarantee long-term supplies of crude palm oil (CPO), natural rubber, and edible bird’s nest during bilateral farm talks in Jakarta on Tuesday, Indonesia’s vice minister of agriculture, Sudaryono, said.
“Indonesia is open to cooperation in this field,” said Sudaryono. He added, “We want to access the market directly without going through other countries so that it can go straight to China.” China Global South
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Irish dairy export volumes to Indonesia could resume with CEPA
The trade deal signed between the EU and Indonesia last week will reduce to zero the tariffs on Irish dairy and meat exports to the Asian nation of more than 280 million people. Currently meat and dairy exports from the EU are subject to between 5% and 20% duties.
The deal, which is called a Comprehensive Economic Partnership Agreement (CEPA) rather than a free trade agreement, has been in negotiation since July 2016. The finalising of the agreement comes as the EU looks to diversify its trading links due to US President Donald Trump’s aggressive trade policies.
Ireland’s food and drink exports to the country have been dominated by dairy which accounted for almost the entirety of the €20m of exports last year. Indonesia previously was a good customer for Irish infant food and fat-filled milk powder, but the exports of both of those was significantly reduced in 2024.
Exports of infant food dropped from €2.3m in 2022 to zero in 2024 and fell from €21.6m for fat-filled milk powder in 2023 to €5m in 2024.
In a statement on the deal, the EU Commission said that agri-food exports from the EU to Indonesia totalled €1bn last year, with total exports of goods to the country amounting to €5.7bn.
Indonesia will have tariff-free access to EU markets for around 80% of its exports, including palm oil, textiles and footwear.
The CEPA is the third trade deal between the EU and Southeast Asian countries after those with Singapore and Vietnam. The deal must be ratified by EU member states, the European Parliament and Indonesia. Farmers Journal
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Turning Malaysia into a sustainable aviation fuel hub
Malaysia is set to begin its first domestic production of sustainable aviation fuel (SAF) by end-2025 at its first biofuel refinery in Johor.
The facility will convert feedstocks such as used cooking oil (UCO) and palm oil mill effluent (POME) into SAF, bio-naphtha and hydrotreated vegetable oils (HVOs) — positioning the country as a regional SAF hub through EcoCeres Inc and its Malaysian subsidiary, EcoCeres Renewable Fuels Sdn Bhd.
EcoCeres CEO Matti Lievonen says: “EcoCeres is the second-biggest SAF producer in the world and Malaysia has a plan to produce SAF. We source feedstocks such as UCO and POME locally and produce SAF that can be supplied to major airports, including the Kuala Lumpur International Airport.”
In 2023, EcoCeres announced a substantial investment in a new biofuel production facility in Pasir Gudang, Johor, to serve as a major production hub for HVO, SAF and bio-naphtha, with an initial capacity target of 350,000 tonnes annually.
According to the company’s 2024 sustainability report, the plant — the first in Malaysia to produce SAF — is now expected to reach 420,000 tonnes per year, effectively doubling its overall output.
Two years after the initial announcement, EcoCeres has revised its target upward, with 85% of production dedicated to SAF, says Lievonen.
The plant features dedicated pipelines connected to port storage tanks, establishing an efficient logistics system and enhancing product yield efficiency. The Edge
---------
Plasma Conflicts continue between Simangambat Indigenous people and palm oil company PN Padang Sidimpuan
JAKARTA - The plasma land dispute has resurfaced in Padang Lawas Utara, North Sumatra, after the indigenous people of Simangang Bata demanded plasma plantation rights on 20% of the oil palm plantation area owned by the company. The dispute, which unfolded at the Padang Sidimpuan District Court (PN), attracted public attention as it showed high public interest in the mediation process.
Iskandar Sitrus, founding director of the Indonesian Audit and Oversight Agency (IAW), assessed the incident as the beginning of a change in which the state has begun to recognize people's right to plasma as a legal obligation, not just a social bonus from companies.
"The country did not listen. The Forest Area Regulation Task Force (PKH) and PT Agrinas Palma Nusantara have acknowledged that plasma is indeed a legal obligation and have begun to open up. This is a good start," Iskandar said on Friday, October 3.
The Simanggabat Indigenous people's demands began with the promise of the oil palm plantation company, which failed to fulfill its plasma obligations. Residents said that for many years they had only been promised plasma, but that this was never fulfilled.
This ambiguity caused disappointment and finally in mid-2025 they filed a lawsuit with PN Padangsidinpuan, demanding plasma rights as stipulated in the law.
Plasma disputes are not new. Based on IAW findings from Supreme Inspectorate (BPK) reports over the past 20 years, delays in plasma delivery have averaged 7.8 to 10 years, but the regulation limits it to a maximum of three years.
Only 12% of companies consistently distribute plasma, while partnership funds are often misallocated, amounting to up to Rp 2.3 trillion. Furthermore, 45% of plasma land is not certified, and approximately 78% of technology development programs are not continuing, making them prone to agricultural conflict.
Some big names in palm oil companies are named IAW in the Plasma Red Record, including Sinar Mas, Longsum, Thorganda, Wilmar, First Resources, Asia Agri, Astra Agro, Suryadumai and Musim Mas.
Private companies are believed to often ignore plasma obligations, in contrast to PT Agrinas Palma Nusantara, which has begun to open the door to dialogue even though its legal status is not fully finalized.
During the mediation process of the PN Padangsidimpuan, Agrinas requested the support of the DPR RI on regulations to accelerate the release of forest areas so that the plasma obligations can be realized. According to the IAW, the citizens' proposals are very realistic in the form of written commitments, gradual realization, and joint supervision.
Political support for plasma is also beginning to grow. Riau DPRD Chairman Kaderis Manto encouraged the establishment of a special committee (Pansus Plasma 20 percent) after numerous reports from the community. "Pansus is our commitment to protecting the people," he said.
Iskandar said that if Padang Sidimpuan is a legal arena, Riau will be a political arena. Both point to a new direction that Plasma can no longer ignore.
"The question is whether Padang Sidimpuan and Riau will be the start of a new chapter in nationwide plasma enforcement or just a small record in the long history of palm oil betrayal," he said. Voice of Indonesia
October 01, 2025
Hit by Trump tariffs, rest of world races to forge new trade alliances
BRUSSELS, Oct 1 (Reuters) - U.S. President Donald Trump's import tariffs have breathed life into dormant free trade talks across the globe and driven alliances at an unrivalled pace between partners seeking to offset lost exports to the United States.
Since Trump's re-election last November, the European Union has struck three free trade agreements - with South American bloc Mercosur, Mexico and Indonesia - and has its sights on a fourth, with India, by the end of this year.
The EU is not alone. Mercosur has sealed a free trade deal with the four-nation European Free Trade Area and relaunched negotiations with Canada that were stalled in 2021.
India and New Zealand revived talks after a decade-long hiatus, while the United Arab Emirates signed three trade agreements in a single day in January.
Brussels has been clear it sees new alliances as part of its response to "unjustified" U.S. tariffs of broadly 15% on EU goods and to Chinese oversupply and export restrictions on critical mineral the EU needs for its green transition.
COUNTRIES LOOKING BEYOND THE U.S.
The new trade pacts may not fully compensate for losses in commerce with a more protectionist America - time will tell - but rival economies have been spurred into action nonetheless. Reuters
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China Asks Indonesia to Guarantee Palm Oil Supply as Export Hits $2.72 Billion
Jakarta. China has asked Indonesia to make sure that Beijing gets enough supplies of crude palm oil (CPO) and other commodities amidst rising demand, according to Deputy Agricultural Minister Sudaryono.
China recently sent its deputy minister of agricultural and rural affairs Maierdan Mugaiti to make the request.
“China has asked us to guarantee their supply of CPO. They also made a similar request for natural rubber and edible bird’s nests,” Sudaryono told the press in Jakarta on Tuesday.
The government reported that Indonesia enjoyed a surplus of $1.77 billion in agricultural trade with China throughout 2024. Indonesia’s biggest exports were palm oil, reaching $2.72 billion in value. Followed by edible bird’s nest ($428 million), rubber ($363 million), coconut ($270 million), and cacao ($218 million).
"China is requesting long-term CPO supply certainty. They see their country's growing demand for palm oil, while Indonesia is the world's largest producer,” Sudaryono said.
According to the deputy minister, Indonesia will also ramp up its palm oil productivity to meet the demand for the so-called biodiesel program. Indonesia is currently implementing the B40, which requires the blending of diesel fuel with 40 percent palm oil. The number represents the percentage of the palm oil blend. Indonesia is planning to implement the mandatory B50 blend by next year.
“We ensure that palm oil productivity continues to be strengthened to meet domestic demand, including supporting the B50 energy program, and ensuring a secure export supply," Sudaryono said. Jakarta Globe
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Indonesia to more than triple palm oil for domestic use
Palm oil use in Indonesia is expected to reach unprecedented levels this year. Analysts predict that this figure will triple the average for the past decade, driven by an increase in biodiesel production forecasts to 13.6 million tonnes, 1.5 million tonnes higher than last year. These forecasts were announced by experts at Oil World (Germany).
The current B40 blending mandate in Indonesia (40% palm biodiesel use) has been implemented despite challenges and uncertainties in the industry. The government plans to further increase biodiesel blending to 50% (B50). Final implementation is scheduled for 2026. This will have a significant impact on future exports of Indonesian palm oil, experts note.
Total palm oil use in Indonesia in 2025 is expected to reach a record high of 23.1 million tonnes, more than three times the average for the past 10 years. However, increased domestic consumption is expected to significantly limit the country’s oil exports, despite increased production volumes.
Against this backdrop, analysts expect palm and soybean oil prices to rise by $100–$150. Sunflower oil, on the other hand, is expected to decline, according to industry representatives, due to a reduction in the premium over alternative products. UKR Agroconsult
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Indonesia’s Palm Oil Export Soars 35% to Over $16 Billion
Jakarta. Indonesia saw a double-digit growth in its palm oil exports this year as the price of the country’s top commodity soars, according to the Central Statistics Agency (BPS).
Indonesia exported around $16.66 billion in crude palm oil (CPO) and its processed products between January and August 2025. Southeast Asia’s biggest economy had sold about $12.32 billion of palm oil to its foreign partners over the same period last year.
“So our palm oil exports grew by 35.23 percent year-on-year [yoy] in the first eight months of 2025,” M Habibullah, a deputy for statistics production at BPS, told a press conference on Wednesday.
Indonesia had been selling its palm oil at an average price of $1,041.32 a ton over the same period, up by 19.91 percent yoy. The average price averaged at around $868.42 a ton last year.
Export volume surged 13.56 percent yoy from 14.26 million tons to 16.20 million tons. The agency, however, did not reveal Indonesia’s top palm oil export market destinations. Even so, data showed vegetable oils made up a huge chunk of Indonesia’s exports to fellow BRICS economy India. New Delhi-bound animal or vegetable oils and fats totaled $2.73 billion in January-August. This is equivalent to 21.71 percent of Indonesia’s non-oil and gas exports to India.
US President Donald Trump’s import duties of 19 percent on Indonesian goods already kicked in on August 7. The Indonesian government has been nudging the Trump administration to give tariff exemptions for its palm oil. “We exported around 2.6 million tons of CPO and its derivatives [to the US] in August alone,” Habibullah said, without going into details on the export value.
Habibullah also gave the latest developments in Indonesia’s trade with the European Union (EU), with whom Jakarta will have a free trade agreement by early 2027. The statistics body reported that Indonesia’s palm oil products entering the EU market reached $192.64 million in August. However, the eight-month export to Europe totaled $1.27 billion, BPS reported.
Soaring palm oil exports also helped Indonesia maintain its 64-month trade surplus streak since May 2020. Jakarta Globe
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EU accused of sacrificing forests for Indonesia trade deal: ‘startling coincidence’
Environmentalists suspect the EU caved to pressure over its landmark anti-deforestation law to secure a trade deal with Indonesia
Barely had the ink dried on a long-awaited trade pact between the European Union and Indonesia before Brussels proposed another one-year delay to its long-awaited anti-deforestation law.
The move drew fierce criticism from environmental groups, who see the move as a capitulation to global trade interests.
On September 23, the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), set to take effect in 2027, was concluded after nearly a decade of negotiation.
The agreement, praised as “historic” by both sides, will eliminate tariffs on more than 98 per cent of goods traded between the two economies and nearly 99 per cent of the value of imports, according to Indonesia’s coordinating minister of economic affairs, Airlangga Hartarto.
Indonesian exports – ranging from palm oil and textiles to seafood and critical minerals – are expected to gain unprecedented access to EU markets, potentially boosting Indonesia’s gross domestic product by as much as US$2.8 billion annually.
“This also provides us with a stable and predictable supply of critical raw materials, essential for Europe’s clean tech and steel industry,” European Commission President Ursula von der Leyen said in a statement, emphasising the deal’s broader significance.
Meanwhile, EU exporters are projected to save some €600 million (US$704 million) a year in duties on goods entering Indonesia.
Yet even as officials celebrated the economic breakthrough, controversy erupted over the European Commission’s decision – announced mere hours after the signing – to propose a further year’s delay to the European Union Deforestation Regulation (EUDR).
The law, originally scheduled to take effect in December, and already postponed once, would bar commodities linked to deforestation after the end of 2020 from entering the EU market. The commission has attributed the delay to technical and bureaucratic challenges.
“We still cannot believe that we can really get this without disruption for our businesses,” Jessika Roswall, the EU’s environment commissioner, told reporters on September 23, “We need the time to combat the risk with the load of information in the IT system.”
‘Startling coincidence’
Environmentalists swiftly accused Brussels of yielding to pressure from industry groups and key trade partners, including Indonesia, which has long branded EU sustainability standards as discriminatory against its palm oil sector.
“It’s a startling coincidence that just after the European Commission signs trade deals with the US and Indonesia, it moves to delay the EUDR once again, conveniently blaming IT problems,” said Isabel Fernandez, senior consultant at green group Mighty Earth, in a statement last week.
“Having proposed a world-class piece of legislation to combat deforestation, the EC has now decided it would rather do trade deals with Trump’s US and Indonesia, which is currently driving the world’s biggest deforestation project in Papua.”
The EU’s anti-deforestation stance was a persistent stumbling block throughout the years-long IEU-CEPA negotiations. Indonesia, whose palm oil industry has been blamed for massive rainforest loss, repeatedly said the bloc’s rules unfairly targeted its exports. SCMP
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MPOC push on EUDR crucial for Malaysia's voice
KUALA LUMPUR: The Malaysian Palm Oil Council's (MPOC) push to spotlight the European Union Deforestation Regulation (EUDR) is a crucial step to ensure Malaysia's voice is heard in shaping global sustainability standards, said an economist.
Plantations analyst Dr Zulkufli Zakaria said the regulation, though widely debated in international forums, still lacks a clear roadmap and risks penalising companies despite their heavy investments in compliance.
He noted that cocoa exporters in West Africa and soy producers in Latin America face similar challenges.
"Fronting these issues by MPOC is about positioning Malaysia as a constructive voice in shaping global sustainability standards.
"It enhances the recognition of investments made under the Malaysian Sustainable Palm Oil (MSPO) certification, rather than diminishing them," he told the Business Times.
Zulkufli said the postponement of the EUDR's enforcement until December 2026 will provide Malaysia with a critical window to strengthen its compliance systems and expand digital traceability pilots for smallholders.
He said Malaysia should take this opportunity to build stronger alliances with other producing nations towards establishing a global model for sustainable commodity certifications.
"These initiatives would enhance Malaysia's reputation as a reliable, deforestation-free supplier and broaden market access to Europe, strengthening the case for recognition if MPSO meets the European Unions (EU) standards," he added.
Recently, the MPOC has questioned whether the EU's deforestation-free regulation is workable in its current form, even after Brussels pushed back enforcement by 12 months to December 2026.
MPOC said the EUDR still lacks a clear implementation pathway and contains "significant operational and structural flaws" that undermine companies which have already invested heavily in compliance preparation.
The council also took issue with Malaysia's classification as a "standard risk" country under the EUDR, despite having demonstrated stronger deforestation outcomes than several EU member states labelled as "low risk." NST
Hit by Trump tariffs, rest of world races to forge new trade alliances
- EU, Mercosur, India, UAE and others revive and accelerate free trade talks
- Unclear extent to which trade deals can offset Trump tariffs
- Political value of deals to ensure stability at uncertain time for global order
- EU may need to rely on more internal trade to secure growth
BRUSSELS, Oct 1 (Reuters) - U.S. President Donald Trump's import tariffs have breathed life into dormant free trade talks across the globe and driven alliances at an unrivalled pace between partners seeking to offset lost exports to the United States.
Since Trump's re-election last November, the European Union has struck three free trade agreements - with South American bloc Mercosur, Mexico and Indonesia - and has its sights on a fourth, with India, by the end of this year.
The EU is not alone. Mercosur has sealed a free trade deal with the four-nation European Free Trade Area and relaunched negotiations with Canada that were stalled in 2021.
India and New Zealand revived talks after a decade-long hiatus, while the United Arab Emirates signed three trade agreements in a single day in January.
Brussels has been clear it sees new alliances as part of its response to "unjustified" U.S. tariffs of broadly 15% on EU goods and to Chinese oversupply and export restrictions on critical mineral the EU needs for its green transition.
COUNTRIES LOOKING BEYOND THE U.S.
The new trade pacts may not fully compensate for losses in commerce with a more protectionist America - time will tell - but rival economies have been spurred into action nonetheless. Reuters
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China Asks Indonesia to Guarantee Palm Oil Supply as Export Hits $2.72 Billion
Jakarta. China has asked Indonesia to make sure that Beijing gets enough supplies of crude palm oil (CPO) and other commodities amidst rising demand, according to Deputy Agricultural Minister Sudaryono.
China recently sent its deputy minister of agricultural and rural affairs Maierdan Mugaiti to make the request.
“China has asked us to guarantee their supply of CPO. They also made a similar request for natural rubber and edible bird’s nests,” Sudaryono told the press in Jakarta on Tuesday.
The government reported that Indonesia enjoyed a surplus of $1.77 billion in agricultural trade with China throughout 2024. Indonesia’s biggest exports were palm oil, reaching $2.72 billion in value. Followed by edible bird’s nest ($428 million), rubber ($363 million), coconut ($270 million), and cacao ($218 million).
"China is requesting long-term CPO supply certainty. They see their country's growing demand for palm oil, while Indonesia is the world's largest producer,” Sudaryono said.
According to the deputy minister, Indonesia will also ramp up its palm oil productivity to meet the demand for the so-called biodiesel program. Indonesia is currently implementing the B40, which requires the blending of diesel fuel with 40 percent palm oil. The number represents the percentage of the palm oil blend. Indonesia is planning to implement the mandatory B50 blend by next year.
“We ensure that palm oil productivity continues to be strengthened to meet domestic demand, including supporting the B50 energy program, and ensuring a secure export supply," Sudaryono said. Jakarta Globe
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Indonesia to more than triple palm oil for domestic use
Palm oil use in Indonesia is expected to reach unprecedented levels this year. Analysts predict that this figure will triple the average for the past decade, driven by an increase in biodiesel production forecasts to 13.6 million tonnes, 1.5 million tonnes higher than last year. These forecasts were announced by experts at Oil World (Germany).
The current B40 blending mandate in Indonesia (40% palm biodiesel use) has been implemented despite challenges and uncertainties in the industry. The government plans to further increase biodiesel blending to 50% (B50). Final implementation is scheduled for 2026. This will have a significant impact on future exports of Indonesian palm oil, experts note.
Total palm oil use in Indonesia in 2025 is expected to reach a record high of 23.1 million tonnes, more than three times the average for the past 10 years. However, increased domestic consumption is expected to significantly limit the country’s oil exports, despite increased production volumes.
Against this backdrop, analysts expect palm and soybean oil prices to rise by $100–$150. Sunflower oil, on the other hand, is expected to decline, according to industry representatives, due to a reduction in the premium over alternative products. UKR Agroconsult
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Indonesia’s Palm Oil Export Soars 35% to Over $16 Billion
Jakarta. Indonesia saw a double-digit growth in its palm oil exports this year as the price of the country’s top commodity soars, according to the Central Statistics Agency (BPS).
Indonesia exported around $16.66 billion in crude palm oil (CPO) and its processed products between January and August 2025. Southeast Asia’s biggest economy had sold about $12.32 billion of palm oil to its foreign partners over the same period last year.
“So our palm oil exports grew by 35.23 percent year-on-year [yoy] in the first eight months of 2025,” M Habibullah, a deputy for statistics production at BPS, told a press conference on Wednesday.
Indonesia had been selling its palm oil at an average price of $1,041.32 a ton over the same period, up by 19.91 percent yoy. The average price averaged at around $868.42 a ton last year.
Export volume surged 13.56 percent yoy from 14.26 million tons to 16.20 million tons. The agency, however, did not reveal Indonesia’s top palm oil export market destinations. Even so, data showed vegetable oils made up a huge chunk of Indonesia’s exports to fellow BRICS economy India. New Delhi-bound animal or vegetable oils and fats totaled $2.73 billion in January-August. This is equivalent to 21.71 percent of Indonesia’s non-oil and gas exports to India.
US President Donald Trump’s import duties of 19 percent on Indonesian goods already kicked in on August 7. The Indonesian government has been nudging the Trump administration to give tariff exemptions for its palm oil. “We exported around 2.6 million tons of CPO and its derivatives [to the US] in August alone,” Habibullah said, without going into details on the export value.
Habibullah also gave the latest developments in Indonesia’s trade with the European Union (EU), with whom Jakarta will have a free trade agreement by early 2027. The statistics body reported that Indonesia’s palm oil products entering the EU market reached $192.64 million in August. However, the eight-month export to Europe totaled $1.27 billion, BPS reported.
Soaring palm oil exports also helped Indonesia maintain its 64-month trade surplus streak since May 2020. Jakarta Globe
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EU accused of sacrificing forests for Indonesia trade deal: ‘startling coincidence’
Environmentalists suspect the EU caved to pressure over its landmark anti-deforestation law to secure a trade deal with Indonesia
Barely had the ink dried on a long-awaited trade pact between the European Union and Indonesia before Brussels proposed another one-year delay to its long-awaited anti-deforestation law.
The move drew fierce criticism from environmental groups, who see the move as a capitulation to global trade interests.
On September 23, the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), set to take effect in 2027, was concluded after nearly a decade of negotiation.
The agreement, praised as “historic” by both sides, will eliminate tariffs on more than 98 per cent of goods traded between the two economies and nearly 99 per cent of the value of imports, according to Indonesia’s coordinating minister of economic affairs, Airlangga Hartarto.
Indonesian exports – ranging from palm oil and textiles to seafood and critical minerals – are expected to gain unprecedented access to EU markets, potentially boosting Indonesia’s gross domestic product by as much as US$2.8 billion annually.
“This also provides us with a stable and predictable supply of critical raw materials, essential for Europe’s clean tech and steel industry,” European Commission President Ursula von der Leyen said in a statement, emphasising the deal’s broader significance.
Meanwhile, EU exporters are projected to save some €600 million (US$704 million) a year in duties on goods entering Indonesia.
Yet even as officials celebrated the economic breakthrough, controversy erupted over the European Commission’s decision – announced mere hours after the signing – to propose a further year’s delay to the European Union Deforestation Regulation (EUDR).
The law, originally scheduled to take effect in December, and already postponed once, would bar commodities linked to deforestation after the end of 2020 from entering the EU market. The commission has attributed the delay to technical and bureaucratic challenges.
“We still cannot believe that we can really get this without disruption for our businesses,” Jessika Roswall, the EU’s environment commissioner, told reporters on September 23, “We need the time to combat the risk with the load of information in the IT system.”
‘Startling coincidence’
Environmentalists swiftly accused Brussels of yielding to pressure from industry groups and key trade partners, including Indonesia, which has long branded EU sustainability standards as discriminatory against its palm oil sector.
“It’s a startling coincidence that just after the European Commission signs trade deals with the US and Indonesia, it moves to delay the EUDR once again, conveniently blaming IT problems,” said Isabel Fernandez, senior consultant at green group Mighty Earth, in a statement last week.
“Having proposed a world-class piece of legislation to combat deforestation, the EC has now decided it would rather do trade deals with Trump’s US and Indonesia, which is currently driving the world’s biggest deforestation project in Papua.”
The EU’s anti-deforestation stance was a persistent stumbling block throughout the years-long IEU-CEPA negotiations. Indonesia, whose palm oil industry has been blamed for massive rainforest loss, repeatedly said the bloc’s rules unfairly targeted its exports. SCMP
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MPOC push on EUDR crucial for Malaysia's voice
KUALA LUMPUR: The Malaysian Palm Oil Council's (MPOC) push to spotlight the European Union Deforestation Regulation (EUDR) is a crucial step to ensure Malaysia's voice is heard in shaping global sustainability standards, said an economist.
Plantations analyst Dr Zulkufli Zakaria said the regulation, though widely debated in international forums, still lacks a clear roadmap and risks penalising companies despite their heavy investments in compliance.
He noted that cocoa exporters in West Africa and soy producers in Latin America face similar challenges.
"Fronting these issues by MPOC is about positioning Malaysia as a constructive voice in shaping global sustainability standards.
"It enhances the recognition of investments made under the Malaysian Sustainable Palm Oil (MSPO) certification, rather than diminishing them," he told the Business Times.
Zulkufli said the postponement of the EUDR's enforcement until December 2026 will provide Malaysia with a critical window to strengthen its compliance systems and expand digital traceability pilots for smallholders.
He said Malaysia should take this opportunity to build stronger alliances with other producing nations towards establishing a global model for sustainable commodity certifications.
"These initiatives would enhance Malaysia's reputation as a reliable, deforestation-free supplier and broaden market access to Europe, strengthening the case for recognition if MPSO meets the European Unions (EU) standards," he added.
Recently, the MPOC has questioned whether the EU's deforestation-free regulation is workable in its current form, even after Brussels pushed back enforcement by 12 months to December 2026.
MPOC said the EUDR still lacks a clear implementation pathway and contains "significant operational and structural flaws" that undermine companies which have already invested heavily in compliance preparation.
The council also took issue with Malaysia's classification as a "standard risk" country under the EUDR, despite having demonstrated stronger deforestation outcomes than several EU member states labelled as "low risk." NST
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Palm oil news October 2025 CSPO Watch