Indonesia-Malaysia must be united in facing discrimination against palm oil

This article has been translated by PwC Indonesia as part of our Plantation News Highlights service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Investor Daily

12 January 2023

Jakarta - Indonesia and Malaysia must work together to strengthen their position as the largest palm oil producing countries in the world, including in facing discrimination against this commodity. Indonesia’s palm oil production volume at 50 million tonnes and Malaysia’s 22 million tonnes are sufficient proof that both countries are the superpowers of the global vegetable oil market. “For this reason, Indonesia and Malaysia must always be united in facing the negative campaign discriminating palm oil in the global vegetable oil trade,” said the Head of Communication of the Indonesian Palm Oil Association (IPOA) Tofan Mahdi in his statement on Wednesday (11/01/2023). 

According to Tofan, through commitment, agreement and cooperation between Indonesia-Malaysia and the palm oil producing countries which are members of the Council of Palm Oil Producing Countries (CPOPC), the palm oil industry could improve in the future. Because it is undeniable that Indonesia and Malaysia as the largest palm oil producers are still facing discrimination and negative campaigns from countries producing non-palm vegetable oil commodities. “Various discrimination and negative campaigns against palm oil occur because of trade competition,” he emphasised. Intense discrimination and negative campaigns against palm oil should be a common concern for Indonesia and Malaysia, considering such actions aim at reducing the competitive power of vegetable oil in the global market.

Meanwhile, the Head of the Indonesian Oil Palm Farmers Association (Apkasindo) Gulat ME Manurung asks that oil palm smallholders always be involved in diplomacy and negotiations against trade discrimination by European Union (EU) countries. “Because 42% of oil palm plantations in Indonesia are owned by smallholders. Smallholders are the future of the Indonesian palm oil industry," said Gulat. During a bilateral meeting at the Bogor Presidential Palace, West Java on Monday (09/01/2023), the President of Indonesia Joko Widodo (Jokowi) and the PM of Malaysia Anwar Ibrahim agreed to strengthen cooperation to improve the market and combat discrimination against palm oil. “[We] agreed to strengthen cooperation through CPOPC to improve the palm oil market and combat discrimination against palm oil,” said Jokowi.