INDONESIA AND MALAYSIA AGREE TO SET UP PALM OIL COUNCIL

President Jokowi shakes hand with Prime Minister Najib

Jakarta, 28 Dzulhijjah 1436/12 October 2015 (MINA) – Indonesia and Malaysia agreed to establish the Council of Palm Oil Producing Countries which will be based in Indonesia.

“In the afternoon several agreements had been decided, one of which is related to producers of palm oil, as we know Indonesia and Malaysia control 80 per cent of the palm oil production,” President Joko Widodo (Jokowi) said after a meeting with Malaysian Prime Minister Najib Razak at the Bogor Palace on Sunday

According to President Jokowi, the council will create a new global standard palm oil sustainability.

It is expected new environmentally friendly standards will prosper four million smallholders in Indonesia and around 300
thousand smallholders Malaysia, Antara reported as quoted by Mi’raj Islamic News Agency (MINA).

The two countries also agreed to establish a task force to formulate this new standard.

Indonesia and Malaysia also agreed to build a green zone economy that will also promote the use of environmentally friendly fuels.

“This is a historic initiative for the palm oil industry in Indonesia and Malaysia in view of the discussion on this has been going on since 2006. Hopefully, it would be useful for oil palm farmers in Indonesia and Malaysia,” said the President.

Najib said Malaysia and Indonesia would invite other producing countries to join the council.

The council would help stabilise the price and boost cooperation in the downstream sector, the prime minister said.

“The council will benefit the industry and it would act against anti-palm oil lobby and the discrimination which would arise. We will act together,” Najib said. (T/R07/R01)

Mi’raj Islamic News Agency (MINA)