Tuesday, July 22, 2025
No Result
View All Result
Indonesia Sentinel
  • Home
  • News
  • World
  • Economic
  • Culture
  • Tech & Science
  • Home
  • News
  • World
  • Economic
  • Culture
  • Tech & Science
No Result
View All Result
Indonesia Sentinel
No Result
View All Result
ADVERTISEMENT
Home Economic

Strengthening Bilateral Cooperation, Indonesia and Malaysia Dominate Global Palm Oil Production

by Becky
2025-01-30
in Economic
A A
palm oil

Ilustration. (X/invest.dailypick)

Share on FacebookShare on TwitterShare on Whatsapp
ADVERTISEMENT

Jakarta, Indonesia Sentinel — Indonesia and Malaysia, the world’s two largest palm oil producers, have reaffirmed their commitment to strengthening bilateral cooperation in the palm oil sector. Indonesian Trade Minister Budi Santoso accompanied President Prabowo Subianto on an official visit to Malaysia on January 27, 2025, where both nations underscored the importance of palm oil in global trade.

During the visit, President Prabowo highlighted the growing global demand for palm oil, stating that every country he visited expressed interest in the commodity. “Countries like Egypt, India, and Pakistan have all emphasized their need for palm oil,” Prabowo said in a joint statement with Malaysian Prime Minister Anwar Ibrahim at Kuala Lumpur’s Petronas Towers.

Trade Minister Budi Santoso echoed Prabowo’s remarks, emphasizing that Indonesia and Malaysia together account for 80% of the world’s palm oil production. He expressed appreciation for Malaysia’s continued support in strengthening cooperation within the industry. “Indonesia hopes to sustain this collaboration with Malaysia to counter emerging trade barriers against palm oil in various countries,” Budi stated on January 28, 2025.

RelatedPosts

Bridgestone Shuts Down Factory, Announces Lays Off Hundreds of Workers

Bitcoin Prices Surges, Reaches Rp1.45 Billion per Coin

Push for Palm Oil Expansion

ADVERTISEMENT

Prabowo also advocated for increasing Indonesia’s palm oil plantations, arguing that palm oil is a strategic commodity crucial to global markets. “I believe we need to expand palm oil plantations. There is no need to fear allegations of deforestation,” Prabowo remarked during a speech at the National Development Planning Meeting (Musrenbang) at Bappenas on December 30, 2024.

He further claimed that oil palm trees help absorb carbon dioxide, pushing back against environmental criticism. “How can we be accused of wrongdoing when palm trees have leaves and absorb carbon dioxide?” he questioned.

Additionally, Prabowo urged local authorities, including regional leaders, law enforcement, and the military, to protect existing palm oil plantations. “Governors, district heads, military personnel, and police officers—safeguard our palm oil plantations. They are national assets,” he asserted.

Environmental Concerns and Criticism

Prabowo’s remarks sparked backlash from environmental activists, particularly Greenpeace Indonesia. The organization condemned the plan to expand palm oil plantations, arguing that it contradicts Indonesia’s commitment to reducing greenhouse gas emissions under the Paris Agreement, which the country ratified through Law No. 6 of 2016.

Iqbal Damanik, a forest campaigner at Greenpeace Indonesia, warned that palm oil expansion would accelerate deforestation and exacerbate climate change. “Clearing forests for palm oil plantations releases massive carbon emissions, worsening climate-related disasters such as droughts, floods, and wildfires,” Damanik stated in a press release on January 7, 2025.

Palm Oil Industry Growth

Despite environmental concerns, Indonesia’s palm oil industry continues to grow. According to the Indonesian Palm Oil Association (Gapki), the country’s crude palm oil (CPO) and palm kernel oil (PKO) production reached 4.8 million tons in October 2024, a 9.69% increase from September’s 4.4 million tons.

Read Also:

Mininster Bahlil Lahadalia to Slash Indonesia’s Crude Oil Exports in 2025

Statistics from Indonesia’s Central Bureau of Statistics (BPS) show that in 2022, Indonesia produced 45.5 million tons of palm oil, accounting for 59% of global production. This solidified Indonesia’s position as the world’s largest palm oil exporter.

Malaysia follows as the second-largest producer, generating 19.3 million tons annually—about 25% of the world’s palm oil supply. Key importers of Malaysian palm oil include the European Union, Pakistan, China, and the United States.

As Indonesia and Malaysia deepen their cooperation in the palm oil sector, the debate over environmental sustainability versus economic benefits remains a critical issue on the global stage.

 

(Becky)

Tags: Global TradeIndonesiamalaysiaPalm OilPrabowo Subianto
ADVERTISEMENT

Related Posts

Indonesia Continue Negotiations with U.S., Secure 0% Import Tariffs on Several Essential Commodities

2025-07-22

Jakarta, Indonesia Sentinel -- The Indonesian government is continuing negotiations with the United States in an effort to secure zero...

Trump Tariffs

Indonesia to Buy 50 Boeing in a Deal to Avoid Trump 32% Tariffs

2025-07-22

Jakarta, Indonesia Sentinel -- Indonesia has agreed to purchase 50 Boeing aircraft from the United States as part of a...

Benchmark Interest Rate

Bank Indonesia Cuts Benchmark Interest Rate to 5,25% in July 2025

2025-07-21

Jakarta, Indonesia Sentinel -- Bank Indonesia has decided to lower its benchmark interest rate, known as the BI Rate, by...

Trump Tariff

Trump Announces 19% Tariff on Indonesian Imports, While U.S. Gains Full Access to Indonesian Resource

2025-07-17

Jakarta, Indonesia Sentinel -- U.S. President Donald Trump announced a new 19% import tariff on goods from Indonesia on Tuesday...

E-Commerce Tax

Indonesia Mandates E-Commerce Platforms to Collect Income Tax from Online Sellers

2025-07-16

Jakarta, Indonesia Sentinel -- Indonesia’s Finance Minister Sri Mulyani Indrawati has officially issued a regulation requiring e-commerce platforms to collect...

coal benchmark price

Indonesia Set July Coal Benchmark (HBA) Price at $107.35 per metric ton, Raises Nearly 9%

2025-07-15

Jakarta, Indonesia Sentinel -- Indonesia’s government has raised its coal benchmark price (Harga Batubara Acuan or HBA) for the first...

Tariff Negotiations

Indonesia to Resume Tariff Negotiations with U.S. Following 32% Reciprocal Tariff

2025-07-11

Jakarta, Indonesia Sentinel -- Indonesia is set to resume trade negotiations with the United States over the next three weeks,...

Copper Imports Tariff

Trump Proposes 50% Tariff on Copper Imports, Sending Prices to Record Highs

2025-07-11

Jakarta, Indonesia Sentinel -- President Donald Trump announced plans Tuesday to impose a 50% tariff on all copper imports into...

2026 Macroeconomic Assumptions

Indonesia Sets 2026 Macroeconomic Assumptions for Draft State Budget

2025-07-08

Jakarta, Indonesia Sentinel -- Indonesia’s government and parliament have agreed on the 2026 Macroeconomic Assumptions, which will serve as the...

Indonesia Foreign Reserves

Indonesia Foreign Reserves Rise to $152.6 Billion in June, Central Bank Reports

2025-07-08

Jakarta, Indonesia Sentinel -- Indonesia foreign exchange reserves rose slightly to $152.6 billion at the end of June 2025, according...

Load More
Next Post
BYD subang

BYD Plans $1 Billion Factory in Subang Indonesia, Heats Up Market EV!

Popular

  • Mentawai Tribe

    Mentawai Tribe Tooth Sharpening Tradition as a Symbol of Beauty, Culture, and Sacrifice

    0 shares
    Share 0 Tweet 0
  • Suku Mante, Mysterious Tribe Living in the Vast Forests of Aceh

    0 shares
    Share 0 Tweet 0
  • Indonesia’s Life Expectancy Rises to 74.15 Years in 2024, Statistics Agency Reports 

    0 shares
    Share 0 Tweet 0
  • Indonesia Boasts an Outstanding Number of Islands, How Many?

    0 shares
    Share 0 Tweet 0
  • History of Jakarta Fair

    0 shares
    Share 0 Tweet 0

Recommended

Bio Farma

Bio Farma Secures Major Vaccine Export Contract, Aiming for $190 Million in 2025

9 months ago
Plate Dance

Traditional Plate Dance: Minangkabau Philosophical Performance of Gratitude 

9 months ago
ADVERTISEMENT

Indonesiasentinel.com is an independent online news portal committed to providing accurate, in-depth, and up-to-date news about Indonesia. Since 2021, we have been a trusted source for millions of readers seeking relevant and reliable news.

Part of:

Information Page

  • About
  • Editorial
  • Privacy Policy
  • Disclaimer
  • About
  • Editorial
  • Privacy Policy
  • Disclaimer

Contact

  • contact@indonesiasentinel.com
© 2021 Indonesia Sentinel

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • News
  • World
  • Economic
  • Culture
  • Tech & Science

© 2024 Indonesia Sentinel