Will Malaysia and Indonesia unite against EU palm oil restrictions?

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Malaysia and Indonesia to Collaborate Against "Discrimination" Towards Palm Oil

Malaysia and Indonesia have agreed to collaborate in combating what they term "discrimination" against palm oil, a move that follows discussions between their respective leaders. This joint effort aims to strengthen cooperation, particularly through the Council of Palm Oil Producing Countries, to address growing concerns surrounding the commodity. The European Union's planned phase-out of palm-oil based fuels by 2030, attributed to perceived links with deforestation, is a significant factor prompting this bilateral initiative.
Joint Action Against Palm Oil Discrimination

Indonesian President Joko Widodo and Malaysian Prime Minister Datuk Seri Anwar Ibrahim met to formalise their agreement to jointly oppose what they described as discriminatory practices against palm oil. This commitment signifies a unified front from the world's two largest palm oil producers in advocating for their commodity on the international stage. The leaders expressed their intention to bolster collaboration within the framework of the Council of Palm Oil Producing Countries to tackle these challenges collectively.
European Union's Palm Oil Fuel Phase-Out

A key driver behind the joint stance is the European Union's policy to discontinue the use of palm-oil based fuels by the year 2030. This policy is based on concerns linking palm oil production to deforestation, a practice that has drawn significant international scrutiny. The impending EU restrictions create an urgent need for major palm oil producing nations like Indonesia and Malaysia to coordinate their responses and defend the commodity's market access.
Broader Bilateral Cooperation

Beyond the specific issue of palm oil, the meeting between President Widodo and Prime Minister Anwar resulted in the signing of eight memorandums of understanding. These agreements span various sectors including shipping, export-import financing, green energy, and the development of the battery industry. The leaders expressed optimism that these pacts would enhance cross-border trade and investment between the two neighbouring nations.
Investment in Indonesia's New Capital

The leaders also discussed the development of Indonesia's proposed new capital city, Nusantara. Prime Minister Anwar conveyed letters of interest from 11 Malaysian companies regarding potential investments in the new city, which is to be located in East Kalimantan, on the island of Borneo. Anwar highlighted the potential for Nusantara's development to foster greater regional economic growth, benefiting Malaysian states such as Sabah and Sarawak, which are also situated on Borneo.

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Will Malaysia and Indonesia unite against EU palm oil restrictions?

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