Jakarta (Antara Bali) - Indonesia and Malaysia, both biggest palm
oil producing countries in the world, will set up a Council of Palm Oil
Producing Countries to ensure price stability and develop downstream
industry, an Indonesian minister said.
The CPOPC will maintain price stability of the commodity by
coordinating production and stock of palm oil in the global market,
Coordinating Minister for Maritime Affairs and Resources, Rizal Ramli,
said here on Saturday.
"The market understands that Indonesia and Malaysia can ensure
price stability if they join hands," he said, adding that the two
countries control 85 percent of the worlds palm oil market.
Rizal said Indonesia and Malaysia would invite other palm oil producing countries to join the Council.
He said the CPOPC is expected to be inaugurated at the end of this
month after Indonesian President Joko Widodo met with Malaysian Prime
Minister Najib Razak.
He said the Council would also bring harmony in palm oil production standards based on economic sustainability.
Indonesia and Malaysia will first harmonize the standards of the
Indonesian Sustainable Palm Oil (ISPO) and Malaysian Sustainable Palm
Oil (MSPO).
"The harmonization will improve the competitiveness of our product," he said.
Rizal said improving competitiveness is important because advanced
countries markets apply high standards to protect certain industrial
sectors.
"Behind the reason for these high standards is a motive to protect soybean, sunflower and other industries," he said.
Rizal said the initiative to set up the Council was an idea that had come up a long time ago.
When the two governments met to discuss the issue of setting up
such a council in August in Malaysia, the palm oil market had already
given its positive response, he added.
Malaysian minister of plantation industry and commodities Amar
Douglas Uggah Embas said the Council would encourage the implementation
of green and environment-friendly palm oil industries.
In view of that, besides price stabilization and harmonization of
standards, the Council will also have a working committee to study
sustainable palm oil industries.
"We will facilitate international private parties with regard to
the establishment of a Green Economic Zone for value added palm oil
industries," he said.
Technical ministries of Indonesia and Malaysia will later form a
working committee that will ensure that they work in line with the CPOPC
agenda, he said. (WDY)
Indonesia, Malaysia Set Up Council of Palm Oil Producing Countries
Minggu, 4 Oktober 2015 9:10 WIB