Indonesian Palm Oil Producers Set to Cooperate with Rival Malaysia

Indonesian palm oil producers said they are set to carry out a commitment with Malaysian counterparts to work together to strengthen the position of palm oil.

Malaysia and Indonesia are the world’s largest and second largest producers of crude palm oil (CPO) respectively producing 15.2 million tons and 14.7 million tons last year.

The association of palm oil companies (Gapkj) said cooperation between the two countries, seen as rivals in the palm oil market, will be focused on market intelligence, research, market expansion and joint efforts to neutralize the impact of negative campaigns against palm oil.

Agriculture Minister Anton Apriyantono and Malaysian Plantation and Primary Commodity Minister Peter Chin signed a cooperation agreement on vegetable oils in Kualalumpur earlier this week.

Gapki chairman Derom Bangun palm oil exports have often been hampered by negative campaigns linked to environmental issues.

Bangun said the two countries will also cooperate in research to diversify the uses of palm oil.

(Cf. news of May 31, 2006.)

Source

Business Wire June 30, 2006.

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