JAKARTA (rambuenergy.com) – Indonesia and Malaysia have agreed to beef up cooperation in determining the price of crude palm oil (CPO) in the world market by seting up Council of Palm Oil Producing Countries or CPOP. The decision was agreed by Malaysia’s Prime Minister Dato ‘Sri najib Tun Razak and the Indonesian President Joko Widodo on Sunday (Oct. 11) at the Bogor Palace.
President Joko Widodo told reporters after holding a meeting with the Malaysian PM that they have agreed on a number of issues including the establishment of CPOP.
Currently, Malaysia and Indonesia controls world CPO production of around 85 percent.
The two leaders also agreed to set up standard for sustainable palm oil plantation development called ‘the New Global Standard for Sustainable Palm Oil’. The new global standards are a result of harmonization of Malaysia and Indonesia standards in the development of sustainable palm oil development.
The two leaders also agreed to develop Green Economic Zone (GEZ), a special industrial zone for the development of downstream palm oil products in order to add value of CPO as well as producing renewable energy, President Jokowi said.
Malaysia’s PM Najib Tun Razak said the establishment of CPOP has been initiated in 2006 and is just now realized. (*)