Indonesia, Malaysia Agree to Strengthen Cooperation in Palm Oil Industry

Jakarta, The Gulf Observer: Indonesia and Malaysia, which together account for approximately 80 percent of the world’s palm oil production, have agreed to enhance their cooperation within the industry, President Prabowo Subianto announced during a joint press statement with Malaysian Prime Minister Anwar Ibrahim in Kuala Lumpur on Monday.
“We have agreed to increase cooperation in all areas, considering that we are also the largest producers of palm oil globally,” President Prabowo remarked. He highlighted the strategic importance of palm oil as a key commodity, which is in high demand in countries such as Egypt, India, and Pakistan.
The president expressed gratitude for Malaysia’s continued support in addressing global challenges faced by palm oil producers, particularly in countering negative campaigns and discriminatory practices targeting the commodity. “I think we can do a lot of good things, and thank you for the continued support from Malaysia on this issue,” Prabowo concluded.
Joint Efforts to Address Discrimination
Both nations have recently celebrated a significant legal victory against the European Union (EU) regarding palm oil-based biofuel. The World Trade Organization (WTO) ruled that the EU’s policies discriminated against Indonesian palm oil-based biofuel, deeming them inconsistent with WTO regulations.
The dispute began in 2019 when Indonesia challenged the EU’s decision to exclude palm oil from its biofuel classification due to alleged links to deforestation, with plans to phase out its use in transport fuels by 2030. The WTO’s ruling highlighted the unfair treatment of palm oil-based biofuel and affirmed its status as a legitimate alternative to biofuels derived from rapeseed or soybean.
“Now the world has no choice but to accept that biodiesel does not only come from rapeseed or soybean but there is biodiesel that is based on crude palm oil,” stated Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto.
Regional Cooperation Amid Global Challenges
The strengthened partnership between Indonesia and Malaysia underscores their shared commitment to defending the palm oil industry against external challenges, particularly in global markets where the commodity faces criticism and regulatory barriers. Both nations view palm oil as a vital contributor to their economies and a key driver of economic growth in the region.
The meeting between President Prabowo and Prime Minister Anwar Ibrahim marks a renewed effort to solidify their position as global leaders in palm oil production, ensuring sustainable practices while addressing international scrutiny.