Indonesia, Malaysia Taking Strategic Steps on Palm Oil Policies

JAKARTA (TheInsiderStories) - In the 5th Ministerial Meeting Council of Palm Oil Producing Countries (CPOPC) in Malaysia, the country members agreed on taking some strategic steps against discriminative campaign over palm oil products.

The organization said will not participate on Indirect Land Use Change workshop which is part of European Union’s event which is considered oppugning palm oil products in the European region. Besides, CPOPC vowed to adopt Sustainable Development Goals (SDGs) to boost palm oil industry.

“At present, the situation of the palm oil market faces challenges in the form of decreasing the price of CPO in the global market as well as sustainability issues that make it difficult for the palm oil products to get access to the main export destination countries,” Coordinating Minister for Economic Affairs (CMEA) Darmin Nasution said during a speech on Thursday (8/11), in Putrajaya, Malaysia.

He believed, is important for CPOPC to play a role as a forum for oil palm producing countries to coordinate steps to overcome these challenges. In this meeting, the CPOPC established Malaysia officially as Chairman of CPOPC starting Jan. 1, 2019 replacing Indonesia which was handed over directly from the CMEA Nasution to the Minister of Main Industry YB Teresa Kok.

In addition, CPOPC also decided on a number of strategic steps in maintaining bargaining power amid the challenges of the global market, including programs for farmers, establishing Colombia as a CPOPC member, mandatory reinforcement of biodiesel, and strategies to overcome black campaigns in the global market.

First, CPOPC is committed to encouraging alignments with oil palm farmers who contribute greatly to the achievement of global production. Both countries prioritize poverty alleviation and farmers’ welfare through increasing implementation of Good Agricultural Practices (GAP) and palm oil rejuvenation programs. Not only that, both of them are also committed to holding the Business and Smallholders Forum in 2019.

Furthermore, to strengthen cooperation with other palm oil producing countries, CPOPC has established Colombia as a member of CPOPC. The determination of Colombia as a member of the CPOPC considers the position of Colombia as one of the largest palm oil producing countries in the Americas. This is expected to produce strategic cooperation to promote the interests of the oil palm industry in the global economy.

“It is very important for CPOPC to expand its membership to strengthen its bargaining power position as well as cooperation with other palm oil producing countries,” Darmin added.

The two countries also agreed on the importance of consolidating mandatory biodiesel programs in all member countries while at the same time encouraging the use of biodiesel to countries using oil palm.

Meanwhile, 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.