KUCHING: The bilateral meeting between the governments of Indonesia and Malaysia on strengthening cooperation in the palm oil industry was held in Jakarta on Saturday, October 3 2015.
The Malaysian delegation was led by Datuk Amar Douglas Uggah Embas, Minister of Plantation Industries and Commodities together with Datuk Razali Ibrahim, Deputy Minister in the Prime Minister’s Department.
The Indonesian delegation was led by Bapak Rizal Ramli, Coordinating Minister of Maritime Affairs and Resources together with Bapak Sofyan Djalil, Minister of National Development Planning, Ibu Musdalifah, Deputy Coordinating Minister of Economy. This was a follow-up to the meeting held on August 27, 2015 in Kuala Lumpur as has been directed by the two Heads of Government.
This bilateral meeting was also joined by Sarawak Oil Palm Plantation Owners Association (Soppoa), Malaysian Palm Oil Association (MPOA), Malaysian Palm Oil Board (MPOB), Malaysian Palm Oil Council (MPOC), Indonesia Palm Oil Association (GAPKI) and Indonesia Palm Oil Fund (BPDP Sawit).
SOPPOA’s attendance at the meeting was represented by chairman Datu Vasco Sabat Singkang, Council Secretary Shannon Yii Chong Hee and chief executive officer Sylvester Fong.
Both countries agree that palm oil is a strategic commodity (Miracle crop) and is important for both countries in terms of employment, foreign exchange earnings and socioeconomic development of the smallholders.
For that reason, both Indonesia and Malaysia intend to promote the growth and sustainability of the palm oil industry.
The Ministerial meeting agreed on the following areas: to pioneer the establishment of a formal working group among palm oil producing countries (Council of Palm Oil Producing Countries / CPOPC) aimed at stabilizing the price of palm oil, promoting the benefit of palm oil industry and its derivatives.
It was agreed that CPOPC be established by end of October 2015.
The meeting also agreed to harmonise the standards of the Malaysian Sustainable Palm Oil (MSPO) and the Indonesian Sustainable Palm Oil (ISPO). On top of the harmonization, we will include the argument for socioeconomic development for smallholders (Eco+ justification).
The meeting will also improve cooperation in promoting environmentally sustainable practices in the palm oil industry, in addition to improving cooperation in research and development in the palm oil industry to unlock potentials across the value chain.
The two governments will facilitate the initiative of the private sectors in both countries to spearhead the Green Economic Zone in Indonesia, promoting the value addition of the palm oil industry.
The Ministers also tasked the Working Committees, comprising senior officials and leaders of the palm oil associations from both countries to undertake follow-up action, including developing roadmap for implementation.