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Indonesia and Malaysia agree on strategies to fight CPO discrimination

09 November 2018 06:22 AM  Company: []
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JAKARTA. The industry of crude palm oil (CPIO) in the world has been hit by falling prices and difficult market access. Indonesia and Malaysia as the world's largest CPO producing countries agreed on several strategies to overcome the black campaign of palm oil products on the European market.

This was announced by the Coordinating Minister for Economic Affairs, Darmin Nasution, when opening the 5th Ministerial Meeting of the Council of Palm Oil Producing Countries (CPOPC) in Malaysia on Thursday (8/11).

"At present, the situation of the palm oil market faces challenges in the form of decreasing CPO prices in the global market as well as sustainability issues that make it difficult for CPO products to get access to the main export destination countries," he said in a press release.

"I believe, this moment is important for CPOPC to play a role as a forum for oil palm producing countries to coordinate steps to overcome these challenges," Mr Nasution said.

As for the ministrial meeting, Malaysia was officially appointed as CPOPC chairman starting January 1, 2019, replacing Indonesia. Colombia is also designated as a CPOPC member state.

"It is very important for CPOPC to expand its membership in order to strengthen its bargaining power position as well as cooperation with other palm oil producing countries," Mr Nasution added.

Meanwhile, CPOPC decided on a number of strategic steps in maintaining bargaining power amid the challenges of the global market, namely encouraging alignments with oil palm farmers who contributed greatly to production.

Indonesia and Malaysia also prioritize poverty alleviation and farmer welfare through increasing implementation of good agricultural practices (GAP) and palm oil rejuvenation programs.

To overcome the black campaign against palm oil products which is quite discriminatory for oil palm producing countries, CPOPC takes several strategic steps, including:

• CPOPC member countries will not participate in workshops related to Indirect Land Use Change (ILUC) which is part of the European Union's Renewable Energy Directive II (RED II) because it is considered very discriminatory against palm oil products on the EU market.

• CPOPC continues to adopt the principles of Pakistan Development Goals (SDGs) as one of the drivers of better sustainability commitments in the palm oil industry to balance economic and social benefits with the environment. (AM/MS)