Jakarta (Indonesia Window) – Indonesia and Malaysia are strengthening bilateral cooperation regarding palm oil policies, said Indonesian Coordinating Minister for Economy Airlangga Hartarto.

The intensity of bilateral relations between the two countries is indicated by the trade volume which reached 15.03 million U.S. dollars in 2020 and 13.43 million U.S. dollars during January to October 2021.

Airlangga stressed the importance of the CPOPC (the Council of Palm Oil Producing Countries) member countries to intensify efforts to ensure sustainable palm oil prices.

"We underline the positive trend of growing demands for palm oil and the general upward trend of palm oil," said the coordinating minister in a statement received here on Monday (Oct. 25).

Airlangga said that for Indonesia, Malaysia is one of the main economic partners in the investment and trade. During the first semester of 2021, foreign investment from Malaysia amounted to 706.8 million dollars in over 1,324 projects.

In addition, at the 8th Ministerial Meeting of the Council of Palm Oil Producing Countries which was held on February 26, 2021 virtually, Indonesia was appointed Chair of the CPOPC for the 2021 period.

The senior minister said producing countries should anticipate the possibility of Crude Palm Oil (CPO) price cycle through increasing domestic consumption as a demand management instrument.

The sustainable palm oil price management could be achieved by implementing B30 mandate programs in Indonesia and B20 in Malaysia. These strategies are important to balance the supply and demand which would maintain global CPO prices.

"In response to the rise of negative campaigns against palm oil products, as palm oil producing countries, Indonesia and Malaysia need to carry out positive campaigns on palm oil effectively, efficiently and on target," he said.

Airlangga added that Indonesia appreciated the progress of the countering anti-palm oil campaign programs carried out by the CPOPC based on state approval.

These programs include advocacy over the European Union’s campaigns against palm oil, social media campaigns by member countries, as well as building communications with palm oil consuming countries.

Indonesia also appreciates the establishment of the CPOPC Scientific Committee which focuses on preparing appropriate research proposals, reviewing research proposals, and boosting research and development activities to provide findings to enrich knowledge about the oil palm sector.

"We hope that this committee would be able to work in the best interests of member countries, including by making efforts to fight negative campaigns against palm oil," Airlangga said.

He stressed that Indonesia and Malaysia needed to enhance ties, and strengthen collaboration and cooperation in the palm oil sector. The two countries should continue to actively cooperate to further strengthen the CPOPC as the only palm oil commodity organization in the world.

Reporting by Indonesia Window