Last week it was announced that Indonesia and Malaysia agreed to set up the new palm oil council (called the Council of Palm Oil Producer Countries). This council aims to control the global palm oil supply, stabilize CPO prices and promote sustainable practices in the palm oil industry, partly by harmonizing existing standards of Indonesian Sustainable Palm Oil (ISPO) and Malaysian Sustainable Palm Oil (MSPO). Indonesia and Malaysia account for about 85 percent of the world's CPO output.

Rizal is confident that demand for Indonesian CPO will not decline due to the moratorium on applying the European Union's palm oil standards. The Indonesian government will lobby the governments of China and India to use the palm oil standards that are to be developed by the Council of Palm Oil Producer Countries (CPOP).

Indonesian Palm Oil Production and Export:

    2008   2009   2010   2011   2012   2013   2014   2015¹
(million metric tons)
  19.2   19.4   21.8   23.5   26.5    27.0    31.0    31.5
(million metric tons)
  15.1   17.1   17.1   17.6   18.2    21.2    20.0    19.5
(in USD billion)
  15.6   10.0   16.4   20.2   21.6    19.0    21.0   

¹ indicates forecast
Sources: Food and Agriculture Organization of the United Nations, Indonesian Palm Oil Producers Association (Gapki) and Indonesian Ministry of Agriculture

Further Reading:

Overview of the Palm Oil Industry of Indonesia