Thursday, December 1, 2016

At RSPO RT14 Bangkok - big news Marrakech Declaration by Africa palm producers. GA resolution results.


News from RSPO



RSPO RT14 CONFERENCE EMPHASISES EQUALITY, HUMAN RIGHTS AND SMALLHOLDER INCLUSIVITY News, 29 November 2016 http://www.rspo.org/news-and-events/news/rspo-rt14-conference-emphasises-equality-human-rights-and-smallholder-inclusivity

13TH GENERAL ASSEMBLY SUMMARY REPORT Announcements, 30 November 2016 http://www.rspo.org/news-and-events/announcements/13th-general-assembly-summary-report

IMPROVED RSPO IT SYSTEM PALMTRACE WILL FEATURE RSPO CREDITS TRADE News, 30 November 2016
http://www.rspo.org/news-and-events/news/improved-rspo-it-system-palmtrace-will-feature-rspo-credits-trade

SUSPENSION AND TERMINATION DUE TO NON-SUBMISSION OF ACOP REPORTS 2015 News, 21 November 2016
http://www.rspo.org/news-and-events/news/suspension-and-termination-due-to-nonsubmission-of-acop-reports-2015

RSPO STATEMENT ON DISCLOSURE OF RSPO MEMBERS’ CONCESSION MAPS News, 08 November 2016

http://www.rspo.org/news-and-events/news/rspo-statement-on-disclosure-of-rspo-members-concession-maps



Day 3 (10 Nov): 9 Africa producer nations to pledge no net deforestation. GA policy resolutions results.


RSPO GA

RSPO GA key policy resolution tracking with results: https://m.facebook.com/story.php?story_fbid=1274341349284675&id=116785031706985

I just had glance at the GA resolutions.They rightly focus on streamlining for cost-efficient smallholder certification:
- On downstream  and NGO commensurate efforts e.g. "no palm oil" by RSPO CGM a bug bear. Indonesia Grower Caucus (IGC)
- Fixed period for key documents. IGC.
- Compensation procedure. To publish cases and action for transparency. Current is voluntary declaration without public disclosure.
- Whistleblowing mechanism.
- NPP for indep smallholders. Solidaridad and SRT Jambi and many plantations.
- Exempt NPP for independent and scheme smallholders. IGC.
- Group certification system suspension. As smallholders face complicated process for GHG and HCV Comp. IGC.


News updates


Day 3 (10 Nov) tracking

Regional Perspective session. Shows major efforts include governments to shift to private-public efforts. Amsterdam Declaration is for RSPO certified or equivalent but palm oil in food use has been dropping. Upcoming 9 Africa producer nations signing of Marrakech Declaration will promote RSPO certification amidst smallholder focus; crucially pledges zero net deforestation. Sees RSPO as insufficient coverage and need to raise the floor. https://m.facebook.com/story.php?story_fbid=1274181565967320&id=116785031706985

Have smallholder seen improvements session. Struggling for metrics from Amanah case and focus more on issues and policy by the speakers. There is floor feedback on capacity shortcomings. Oxfam (EB member) says need more than just the "certification tool" and draft snallholder strategy paper received by EB last week is to stay ambitious but keep it simple.   https://m.facebook.com/story.php?story_fbid=1274226282629515&id=116785031706985

Closing address talks about global inequality and that no one should be left behind. Points to working with local governments e.g.  Sabah where carbon stocks are found to be 40% higher than in the Amazon (per ha?), South Sumatra and Kalimantan projects. Ecuador commitment just came. Marrakesh Declaration for sustainable development is big. Needs to be on an equitable basis. RSPO has a role as a convenor. Simple step of exclusion must be minimised. RSPO to work closely with Singapore to pull this region along.


Day 2 (9 Nov) tracking

What are implications of Brexit-Trump victories for sustainability? Review your political-economic structure and mitigate negative economics for small suppliers.  https://m.facebook.com/story.php?story_fbid=1273430179375792&id=116785031706985   




RSPO Updates session: 

Monitoring impacts session: 
Buzzword/catch phrase abundant e.g. theory of change. Hmmmm.

Assurance session closes Day 2: https://m.facebook.com/story.php?story_fbid=1273543816031095&id=116785031706985 

RSPO is highlighting twitter to follow events, but it seems to have lot of anti-RSPO (e.g. licence to kill) comments too: https://mobile.twitter.com/search/live?q=%23RSPO  


Day 1 (8 Nov) reflections

As I look at news on the US elections rolling out it is interesting to reflect on the so-called elite vs non-elite concerns embedded in this and having more prominence in policy making. These are apparently also high among the concerns of some senior RSPO observers. Recall that IPOP was disbanded by Indonesia on fears of outcomes for smallholders from  "economic cartel" behaviour risks ie. exclusion and added price discounting. RSPO watchers are also concerned about a surprise Brexit-type risk for this certification club (that covers the best or top 20% of production)  well organised by regional/international interests but that has struggled to include smallholders on a large-scale. Could national administrations try to intervene in some way? In KL, there is market talk that high politics also has its eyes peeled.

I have covered palm sustainability since 2009, highlighting the need for economic trickle down. It is heartening to see a rise in RSPO smallholders within the last two years; as the big plantations finished covering their own processing and estates first. Our checks on smallholders is that independent smallholders covered may be former scheme projects, suggesting that an inclusionary approach is hard to come.

A positive will be the jurisdictional RSPO certification move. But commercial players see this as some way off as the lead Sabah programme is said not to have a detailed plan yet. The RSPO consultant presenting on this yesterday said as much. That the Sabah administration is mooting legislative change to make RSPO a legal requirement underlines the limits of voluntary buy in.

Corporates were cheering the HCS Convergence. But I think questions remain on the hard vegetation threshold (what is the equivalent carbon ceiling in each region) and the important issue of suquencing the social aspect. Greenpeace represented the steering committee and mentioned a timeframe of "months if not years" on social and FPIC. We would need to read the details of this appatently work-in-progress policy. On a related issue, RSPO Next's support has to be determined.

At the carbon emissions cluster, it was good to see two years worth of carbon data. From 1 Jan 2017, public disclosure starts. This comes amidst the coming into force of the Paris Climate Agreement. It is voluntary and the reported drop in carbon prices is worrying. Nevertheless, experts are looking out for carbon trading / taxes in the future. Experts say they have yet to consider these in the RSPO context but it likely has to considered. The ultimate question is this: where do premiums go?

I also attended the cluster on Thai palm sustainability. Interesting point discussed afterward is the lack of reported data on land use change to palm. Is it well under 10% forest conversion as Thai observers tell me? Thai palm should say this out loud.

The finance cluster focussed on rising demands by international financiers and laggard regional banks and FMCG. Other clusters were on FFB traceability (legality an issue in Indonesia and Thailand) biodiversity and PKO. The premium and availability issues are top of mind for its buyers. Other issues are the politics of the RSPO complaints system.

The big silent problem is the HCV Complaints Liability. I am told by commercials that this and other costs are pricing out independent smallholders from RSPO. It is also likely impacting potential corporate M&A at a time when sector consilidation is expected. I covered this Compensation at the policy development stage at some detail. I was surprised by the then sanguine views and lack of a legal reading.

At RSPO RT14 in Bangkok, there are likely 800 participants. Key stakeholder representatives are familiar friendly faces.  Very glad to be here in 2016 for palm sustainability that I first started to attend seven years ago.
#RSPO #RT14

Friday, October 21, 2016

OFIC global trade policy and politics panel - initial notes

At MOSTA's OFIC Module 2, we just had a great line-up of speakers and a good panel session.


Photo: Mr Syahril at the rostrum by Khor Yu Leng

Ms Sanya Reid Smith of Third World Network drew our attention to domestic agriculture subsidies remaining in places like the US and EU within the trade agreement contexts, Malaysia's bounded export duty (up to 8.5% on CPO)exemption under TPPA (and RCEP leaked documents showing Japan and South Korea asking for zero), that IP extensions may reduce availability of non-patent agricultural chemicals (that often result in prices being 3x higher), and TPPA's potential impact on procurement by federal government entities and large SOEs, ILO labour standards becoming enforceable, and question whether palm oil milling is a service and therefore subject to liberalisation. The USA certification process for TPPA may add more requirements (beyond the text, with topics as yet unknown), and that many countries wait until the USA proceeds before making changes to domestic laws and regulations. She offered a thorough applied analysis of TPPA on palm oil that has not featured in previous public for a.

Dr Joe Feyertag of LMC International Ltd explained a profound shift in grain and vegetable oil production post 2002 with large production and acreage growth amidst the biofuels boom, rapid meat consumption transitions, oil palm expansion less than a quarter of maize and soy acreage expansion, the 2010s being the end of the biofuels decade and rise of the protein decade, future growth scenarios showing a hypothetical moratorium on palm oil volume resulting in even larger increase in soy acreage likely in the Amazon Basin, a look at US biodiesel market volume, potential volume return from Argentina and Indonesia and EU biofuels policy news of no more public support for food-based feedstocks from 2020. He concluded that environmental aspirations need to take a more nuanced consideration of how demand drives expansion across the vegetable oil complex (palm, soy, rape/canola and sun), and for GMO products.

Mr James Caffyn of Gira Strategy Consultants provided major insights into vegetable oils usage in the dairy sector - specifically analog cheese, fat-filled milk powders, growing-up milk and infant formula - with great data on dairy-veg oils price arbitrage of over 4.5x, market size and growth, vegetable oil inclusion ratios and palm oil tonnage indicators (over 1.5 million tonnes in FFMP and GUM-infant formula). What came strongly across for palm oil was the fast growth potential of this segment (especially in Asia), its technical proficiency, compelling price arbitrage, market perception, regulatory concerns and food safety.

Mr Syahril Syazli Ghazali of Ministry of International Trade and Industry (MITI) of Malaysia offered wonderful insights into TPPA, as Lead Negotiator for the Market Access Chapter. 20% of Malaysia palm products go to TPPA countries and a focus was on Canada and Mexico on duty removals, Malaysia's ability to carve out export duties (bounded basis), and the need to comply to international standards will be a cost to Malaysia industry and government but it is the way forward.

In our panel discussion, we fielded a question on EFSA's 3MCPDE issue - the greater volume concern would arise if it also affects China dairy sector demand. As for biodiesel prospects, these are quite limited to Southeast Asia. Moreover sludge oil has been removed from double-counting and is unlikely to come back soon. From the floor, we heard from MR Chandran on the problem of definitions of by-products versus waste products, and that freedom of association for labour will be an issue especially since 30-35% of production cost is labour (Sanya mentioned PWC's report finding that one week stoppage could impact 2% of revenue). On my question about a pathway for palm to USA biofuels (beyond a handful of grandfathered facilities), Joe said that GHG emissions reductions is an official problem and Syahril clarified that USA biofuels access negotiation was tried but remains on the table without a solution via TPPA. To MR Chandran's added question on USA (California) market potential (this being a growth market versus EU not being seen as having much potential), I highlighted the change in the US Customs Border and Protection (CBP) rule against forced-labour imports in force since March 2016 and that it has already disrupted cargoes of tea and sweeteners; and  it is notable that California leads in lawsuits on child labour allegedly in the cocoa supply-chain of large brand name companies. Sanya notes that the US CBP rule reinforces TPPA requirements and that complaints can be made against products and producers.

In conclusion, we covered the development and prospects for important fast-growing end-uses for vegetable oils and focussed on issues for Malaysia palm oil. Palm oil has a complex processing chain and a big range of applications. It has tremendous technical proficiency and price advantage in food uses, but if needs policy support in biofuel applications. Success in market share penetration is mediated by trade policy and new breed trade agreements (require upgrade to international standards in production and more). This affects relative price-cost and some non-price/non-tariff issues may also affect price-cost.

Saturday, October 1, 2016

Biogas - Indonesia plantations need fiscal incentives to invest in the biogas power

4 October 2016: Indonesia plantations need fiscal incentives to invest in the biogas power 


View Point: Concept of subsidies for renewable energy misunderstood by Vincent Lingga October 1 2016 -- Several pilot projects built by plantations companies show that 10,000 to 15,000 hectares of oil palm estates can produce biogas to generate one MW for 1,000 households. The potential is quite huge as Indonesia is the world’s largest palm oil producer with a total area of 10 million ha. But plantation companies need fiscal incentives to invest in the biogas power station.
http://www.thejakartapost.com/news/2016/10/01/view-point-concept-subsidies-renewable-energy-misunderstood.html

RI'€™s biogas capacity to reach 14.8 megawatts: Ministry by Fedina S. Sundaryani, The Jakarta Post, Jakarta | Thu, March 24 2016 -- the current installed capacity of biogas power plants had reached 3.6 MW, ... €œThe expected capacity will increase significantly because there are currently 25 companies that have applied for permits...Although the ministry has not announced the new feed-in tariff, Indonesian Biogas Association secretary-general Trio Chadys said that he heard the new prices would be listed in dollars. ... '€œThe last we heard, the prices would be set in dollars. The previous price was Rp 1,050, [and it is rumored] the new price will be $11.75 for biogas. If it is true, it will probably be more economically feasible for investors,'€ he said. http://www.thejakartapost.com/news/2016/03/24/ri-s-biogas-capacity-reach-148-megawatts-ministry.html

Editorial: Harnessing palm oil waste by The Jakarta Post, January 27 2016 -- The government launched the first pilot project late last month for large-scale solar power generation to supply rural areas in Kupang, East Nusa Tenggara. Now it is palm oil-based biogas that is poised to become a major source of electricity in rural areas that are far from the national grid of the state electricity firm (PLN).... Only a small amount of this methane is currently being captured, but several palm oil businesses have started to realize the commercial use of the liquid waste if the methane can be captured and burned to generate power. So far these small plants (usually with a one-megawatt capacity) are operated mostly to power households around the mills.  ..... It is encouraging, however, that the government has just issued a regulation that sets the feed-in tariffs for excess power from plants fired by POME-based biogas. This means that PLN is required to buy excess power from POME-based biogas-fired power plants. ... Mulyana said at the opening on Saturday of the fifth such plant in Riau, which is owned by the Asian Agri palm oil group, that biogas from the liquid waste of the 850 palm oil mills across the country could generate 1,100 megawatts. 
.... http://www.thejakartapost.com/news/2016/01/27/editorial-harnessing-palm-oil-waste.html

Capturing methane for electricity generation by Ade Cahyat, The Jakarta Post, September 19 2013 -- Due to the lack of willingness from palm oil companies and the absent of support facilities, the application of POME-to-energy is just about 10 percent of the total mills nationwide. The combination of effective government support and innovative private sector behavior can unleash the potential... http://www.thejakartapost.com/news/2013/09/19/capturing-methane-electricity-generation.html


Malaysia news:


Malaysia’s Green Energy Path, Posted by Saleem Ali of University of Queensland (Australia) on September 16, 2016 -- Malaysia was a leading negotiator for the group of developing nations at the 21st session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP 21) in Paris.  Seven years ago at the COP 15  meeting in Copenhagen Malaysia had agreed to reduce its “carbon intensity” (CO2eq emissions to GDP) by 40% from its 2005 value by 2020. Its commitment was enhanced to 45% carbon intensity reduction by 2030 at the COP 21 in Paris, France in 2015, subject to conditions regarding financing assistance and transfer of technology. http://voices.nationalgeographic.com/2016/09/16/malaysias-green-energy-path/

Green & Smart Kahang plant completed on schedule, 7 September 2016 -- StockMarketWire.com - Green & Smart Holdings - a renewable energy company generating power from biogas captured through the treatment of palm oil mill effluent in Malaysia says the the first plant, the 2.0 megawatt Kahang Biogas plant located in the state of Johor, has been completed on schedule.
... Green & Smart also confirmed that construction of the 2.0 megawatt Malpom Plant in Nibong Tebal, Penang is on track for completion by end of October 2016. The biogas system has been completed with commissioning work under way. http://www.stockmarketwire.com/article/5410489/Green-Smart-Kahang-plant-completed-on-schedule.html

Kim Loong outshines its peers BY HANIM ADNAN  11 June 2016 -- Another potential revenue from the downstream segment is biogas. Kim Loong has commissioned three biogas plants in Johor. Gooi says: “Kim Loong is in the process of installing the machinery and equipment to connect its gas engine system ​in Kota Tinggi mill in Johor ​to ​supply 1.8MW to Tenaga Nasional Bhd’s grid.  “We expect to commission the plant by year-end.” In Sabah, the group has received approval from Seda (Sustainable Energy Development Authority) to supply 1.0MW to the Sabah electricity grid. “We also hope to obtain approval for another 1.0MW in Sabah in the near future,” adds Gooi. http://www.thestar.com.my/business/business-news/2016/06/11/kim-loong-outshines-its-peers/

Sarawak wants delay on biogas plant rule 6 February 2016 -- “We understand the Government has committed to reducing gas emission. (However) It costs not less than RM15mil for each palm oil mill to install biogas trapping facilities,” said Sabat who urged the ministry to provide incentives in terms of cost to install such facilities. There are currently more than 65 palm oil mills in Sarawak. Sabat said SOPPOA disagreed with the imposition of RM1mil a year in bonding for any palm oil mill which delayed installation of a biogas plant. http://www.thestar.com.my/business/business-news/2016/02/06/sarawak-wants-delay-on-biogas-plant-rule/

Addressing palm oil concerns  8 September 2014 -- “At the same time, we have over 200 mills looking into methane gas removal, which will supply electricity to the national grid by 2020. Most greenhouse gas emissions happen at the mills, thus lowering them will improve palm oil’s sustainability,” said Yusof. (As of March this year, biogas facilities at 63 mills have already been completed, facilities at 14 more mills are under construction and there are plans for biogas plants at a further 150 mills.) http://www.thestar.com.my/news/environment/2014/09/08/addressing-palm-oil-concerns/

31 October 2015: Malaysia - 113 palm oil mills with the potential to generate electricity from palm oil biogas


113 palm oil mills identified to generate electricity from biogas October 29, 2015; KUALA KUBU BARU: The government has identified 113 palm oil mills with the potential to generate electricity from palm oil biogas for the national grid Fit-in-Tariff programme.  Minister of Plantation Industries and Commodities Datuk Amar Douglas Uggah Embas said the palm oil mills were situated near electricity power sub-stations and can absorb the electricity generated.  "There is already 12 palm oil mills that are already connected to the power grid network while 79 others are in the process of being connected," he told reporters here after opening the first Bio-Compressed Natural Gas (Bio-CNG) commercial production plant using palm-based biogas. The Bio-CNG plant, located at FELDA Sg Tengi palm-oil mill in Selangor, is the first commercial Bio-CNG plant project based on palm oil mill effluent in the world undertaken by a joint venture between the Malaysian Palm Oil Board, Felda Palm Industries Sdn Bhd and Sime Darby Offshore Engineering Sdn Bhd....Malaysia: "All palm oil mills that planned to increase the supply of their fresh fruit bunch were required to install biogas trapping facilities since January 2014.  http://www.dailyexpress.com.my/news.cfm?NewsID=104175

18 September 2015: Biogas projects at REA and Musim Mas. Indonesia new regulations.

The palm oil plantations powering communities and tackling climate change - Palm oil mills are generating electricity using waste methane to the benefit of local communities and company profits Sponsored by: RSPO  By Oliver Milman Tuesday 15 September 2015 14.15 BST; The rapid expansion of palm oil cultivation has resulted in the creation of vast wastewater lagoons beside plantations in countries such as Indonesia and Malaysia, the world’s two dominant producers. These murky ponds, containing the brown-hued detritus from processed palm oil fruit, release a huge amount of methane into the atmosphere – a gas so potent it traps around 34 times as much heat as carbon dioxide....A typical lagoon emits the equivalent of 22,000 cars’ worth of greenhouse gases every year, according to a University of Colorado study published last year. Methane emitted from these lagoons accounts for more than a third of the greenhouse gas emissions created by the production of palm oil....Given the remote nature of most palm oil mills, it’s hard for businesses to sell this energy to the electricity grid, but REA Holdings has struck an agreement with Indonesia’s state-owned grid to power a nearby community. The joint venture began in April this year and will supply more than 8,500 households with methane-generated electricity.“We’ve experienced conflict with some local villages in the past over land compensation, so this is a good way of creating mutual interest,” says Sophie Persey, head of sustainability at REA Holdings. “[It] helps show the community the benefits of our operations, to improve their standard of living. We want to be there for 25, 50, 75 years, so we want to have good relationships and for everyone to benefit.” There is a financial upside for REA, of course – the company hopes the electricity sold will bring in $230,000 (£149,000) in the first year. What’s more, having slashed its diesel use from 2.8m litres a year to fewer than 500,000 litres, REA is better protected from fluctuations in the global oil price....... Other firms are seeing the potential, too. Indonesian company PT Musim Mas, headquartered in Singapore, is installing methane capture in its eight mills in Kalimantan and Sumatra, with an initial outlay of between $3-4m....The main hurdle – aside from upfront costs – has been a perceived lack of government backing. But Persey believes this is changing in Indonesia, with new regulations stipulating that the government must buy any renewable energy produced by palm oil mills. A further rule on mandatory methane capture may follow..... http://www.theguardian.com/sustainable-business/2015/sep/15/palm-oil-plantations-climate-change-electricity-generation-methane-capture


19 May 2015: Asian Agri completes two biogas plants soon, to build another 15 with total 30MW capacity within 10 years

Economy in brief: Palm oil mill effluent used to generate power The Jakarta Post, Jakarta | Business | Tue, May 19 2015, 8:56 AM; The Asian Agri plantation group will soon inaugurate the operations of two power generation plants fired by biogas from palm oil mill effluent (POME) which has mostly been emitted into the atmosphere, thereby contributing to greenhouse gas (GHG) emissions and global warming.“We have been building five POME-based biogas power generation stations in North Sumatra, Jambi and Riau, each with an installed capacity of two megawatts, and two of them are scheduled to start up operations later this month or early June,” Asian Agri managing director Kelvin Tio told The Jakarta Post.Tio said green activists had attacked the conversion of land into oil palm estates and POME as among the biggest emitters of GHG.“But by processing POME into biogas to generate electricity, we cut GHG emissions and at the same time develop a new source of renewable energy which is suitable for rural electrification.” Asian Agri, Tio said, conducts GHG calculations for all of its mills and estates annually to enable them to identify crucial areas in their production chain and thereby provide guidance on emission reduction. Auditors verify the GHG calculations for international sustainability and carbon certification (ISCC) and Roundtable on Sustainable Palm Oil (RSPO) certifications. Assuming households in rural areas each use 900 watts for 24-hour supply, each of the five biogas power plants can meet the electricity needs of 2,000 houses, he added. According to Tio, a palm oil mill with an hourly capacity of 60 tons that requires fresh-fruit bunches from 15,000 hectares of oil palm trees can supply enough biogas to generate two MW of power. “Asian Agri, which manages 160,000 ha of oil palm plantations, of which 60,000 ha are owned by smallholders, plan to build 15 more biogas power stations each with a 2-MW capacity within the next 10 years,” Tio added. - See more at: http://www.thejakartapost.com/news/2015/05/19/economy-brief-palm-oil-mill-effluent-used-generate-power.html#sthash.ZklUCQkO.dpuf


1 May 2015: Gas Malaysia in biogas tie-up with Sime Darby Offshore

Gas Malaysia partners Sime Darby unit in BioCNG distribution venture Published: 28 April 2015 3:03 PM Gas Malaysia Bhd has teamed up with Sime Darby Offshore Engineering Sdn Bhd (SDOE), a wholly-owned subsidiary of Sime Darby Bhd, to undertake biogas compressed natural gas (BioCNG) distribution business extracted from the palm oil mill effluent. In a filing with Bursa Malaysia, Gas Malaysia (fundamental: 2.1; valuation: 1.1) said it today signed a joint venture (JV) agreement with SDOE for the purpose. Under the deal, the two companies will form a JV company, in which SDOE will hold a 51% stake and Gas Malaysia the remaining 49%.........Gas Malaysia. It added that the JV will serve as a platform for the group to supply natural gas to new customers currently not serve by its existing pipeline. “The parties seek to optimise the combined strengths of each partner in their respective fields....SDOE is primarily involved in systems integration and marketing of products and services in the oil and gas/petrochemical industry. - See more at: http://www.themalaysianinsider.com/business/article/gas-malaysia-partners-sime-darby-unit-in-biocng-distribution-venture#sthash.AuLhMa2T.dpuf

Gas Malaysia in biogas tie-up with Sime Darby Offshore Wednesday, 29 April 2015; PETALING JAYA: Gas Malaysia Bhd has partnered with Sime Darby Offshore Engineering Sdn Bhd (SDOE) to distribute biogas compressed natural gas (BioCNG) extracted from palm oil mill effluent (Pome).
Pome is the voluminous liquid waste that comes from the sterilisation and clarification processes in milling oil palm. In its filing with Bursa Malaysia, Gas Malaysia said the rationale for the joint venture (JV) was to optimise the combined strengths of both parties in their respective fields. “The JV will serve as a platform for Gas Malaysia to supply natural gas to new customers currently not served by the company’s existing pipeline,” it said in a statement yesterday. The parties would form a JV company and have an eventual issued and paid-up capital of RM5mil divided into five million ordinary shares of RM1 each, with SDOE as the major shareholder with a 51% stake and Gas Malaysia, 49%. The JV company would be engaged in the provision of sale, supply and transportation of BioCNG as well as carrying out design, construction, installation and commissioning works, among others....... http://www.thestar.com.my/Business/Business-News/2015/04/29/Gas-Malaysia-in-biogas-tieup-with-Sime-Darby-Offshore/?style=biz

17 November 2014: I hear that the 2020 target is not being implemented. Only (a) new mills and (b) mills requesting licence for higher capacity must have methane capture.

Also note our recent posting: Wednesday, November 5, 2014, Sarawak biogas concerns
http://khorreports-palmoil.blogspot.com/2014/11/sarawak-biogas-concerns.html

5 Nov 2014: Sarawak biogas concerns

Palm oil mills’ biogas capture implementation in Sarawak a major challenge — Soppoa
Posted on November 5, 2014, Wednesday; "KUCHING: One of the progressive initiatives of the palm oil industry is the target to get all palm oil mills installed with biogas capture facilities for utilisation to eliminate methane gas released into the atmosphere.... The industry has been regulated by Malaysian Palm Oil Board (MPOB), which is imposing the mandatory installation of biogas trapping or methane avoidance facilities in palm oil mills as a condition for any new mill construction or existing mills applying for throughput expansion in the country.... “However, Soppoa would like to draw attention that the existing conditions in Sarawak is very different from that of Peninsula Malaysia in terms of infrastructure developments, legal implications as well as tariff considerations.”
Foremost, it said gridlines in Sarawak are still lacking which includes infrastructure for feed-in capability into the power grid for utilisation of power supply generated from palm oil mills in the State,as well as infrastructure for electricity supply to rural areas.... “Also, a significant number of mills are located in remote locations, which are quite a distance away from the main grid. Therefore, this could result in high implementation costs,” Soppoa underscored.... Secondly, the supply of electricity in Sarawak comes under the purview of Sarawak Energy Bhd (SEB) which oversees all power generation for domestic and industrial utilization. The cost of power generation by SEB in Sarawak is low, probably significantly below cost of production from palm oil mills.... Therefore, the industry will have to negotiate for a mutually acceptable feed-in-tariff rate with SEB.
To date, the palm oil industry had invested substantially in 67 palm oil mills in Sarawak..." http://www.theborneopost.com/2014/11/05/palm-oil-mills-biogas-capture-implementation-in-sarawak-a-major-challenge-soppoa/#ixzz3ICoIBqbz

1 April 2014: Malaysia regulations requires palm oil mills to install biogas facilities by 2020 and MPOB had proposed that from 1 Jan 2014, all new palm oil mills and existing ones should install full biogas capture or methane avoidance facilities.

So far, 60 out of 430 Malaysia palm oil mills have installed biogas production and only 4 are selling renewable energy to the grid. The problems at end 2013 included: a) high cost: At RM 9 million per MW, newer biogas plants can be set up for RM18 million– still a relatively high figure. FIT was non-competitive for some time: a 60 MT/hr palm oil mill installing a biogas power plant of about 1.8-2.0 MW capacity will gain about RM 3.34 million in revenue, RM 1.84 million net profit and a payback period of 9-10 years[1]; b) Low CER price: a 60 MT/hr palm oil mill will generate an estimate of 30,000-40,000 tonnes of CO2eq; with the current market price of EUR 0.60/tCo2e, the revenue generated for such a mill would be approximately RM 90,500 per year – not enough to cover the consultant fees! [2] Various less than favourable renewable energy policies should also be reviewed. (source: Green energy from palm-based biogas, BELL Group’s Experience On Biogas Capture by Liana Low, PIPOC, 19–21 Nov 2013 –  also refer to data updates and slides below).

BELL Group also points out that "energy from palm oil mill effluent / POME is a waste management issue and NOT just for ‘Power Generation Plants’. Methane could be upgraded to biomethane as a vehicle fuel. This could significantly reduce NGO criticisms & actually show governments in developed countries what renewable energy can achieve."  (source: ibid).

Data updates: [1] A 2.0 MW plant would have earned revenue of RM5.5mil a year on the old rate of 33.83 sen/kWh (2000 x 365 x 24 x 93% uptime x $0.3383/kWh). The new rate is 39.7 sen/kWh basic, plus potential bonuses of 1.99 sen (engine efficiency above 40%) and 5 sen (local engine). So 2MW plant will earn revenue of RM6.5mil, with potential to rise to RM7.6mil a year. [2] CER price now only EUR 16 cents (June settlement), see https://www.theice.com/emissions.jhtml.


On palm biogas for power generation, we were alerted by Gan Tee Jin to Malaysia’s Sustainable Energy Development Authority / SEDA's (http://seda.gov.my/) just announced (on 21 March 2014) substantial increase in feed-in tariff for biogas power.
  • Bonus tariff of 7.86 sen available for Biogas (Landfill/Sewage) has been opened to all sources of biogas by changing the definition to "use of landfill, sewage gas or agricultural waste including animal waste as fuel source".
  • Bonus tariff for "locally manufactured or assembled gas engine" was raised from 1 sen to 5 sen. Caterpillar is presently the only local assembler.
  • Bonus tariff for engines with at least 40% efficiency remains at 1.99 sen.
  • Degression rate changed from 0.5% to zero, meaning that projects implemented in later years enjoy the same tariff as this year.
A review and calculation prepared by Mr Gan Tee Jin and shared with Khor Reports finds: With the new tariff structure, 50km distance from the grid is likely viable for a 2MW biogas power plant (typical 60 tph mill with 300,000 tpy crop intake can do 2MW, with gas to spare for the boiler, provided good biodigester technology is used). Economies of scale do not favour smaller mills/power plants, but I suspect a 1MW plant will be viable if connection distance is within 10km. However, there are two potential bottlenecks - network capacity and feed-in quota - so the system may not be able to accommodate everyone. My reasoning is as follows: several projects have already been developed based on old FiT rate of around 34 sen/kWh, so I assume the bonus rates of 7.86 sen (landfill biogas) and 5 sen (local engine) go entirely to pay for longer connection distance. Extra revenue is 2000kW x (365 x 24) hrs x 93% uptlime x $0.1286 = $2.095 mil/year. Further assuming 7 year payback, the extra revenue justifies a capex of up to $2.095 x 7 = $14.6 mil or 58km of cabling @ $0.25mil/km. As a rough guide, I understand from Tenaga Nasional that the cost of installing overhead 11kV cables to be $0.25 mil/km.

Khor Report's comment: The Malaysia palm oil industry seeks to boost it sustainability efforts and this policy would help on GHG emission reduction measures[3]. It is notable that in developed countries, large corporations are promising to buy renewable-energy credits, to reduce their carbon footprints by going "100% green energy" [4]. The idea of clean energy is therefore gaining much attention and having a palm-based renewable energy sector is possible for Malaysia. However, two potential bottlenecks remain: network capacity and feed-in quota. How far will Malaysia power generation accommodate everyone in the palm oil sector? Assuming a 2MW biogas plant per mill, might 800MW from palm biogas be reached? Any technology uncertainties also have to be ironed out. Certainly from a business political front, we must take note of the current over capacity in power generation and the clout of the independent power producers or IPPs which also benefit from subsidised gas from PETRONAS, the Malaysia state-owned oil & gas producer. The rise of Malaysia palm biogas may not be straightforward, but the improved feed in tariff is promising . Undoubtedly, the palm oil sector will hope this will be supported by sufficient quota availability. So, watch this sector for constrained development within the context of Tenaga Nasional's monopoly. Other countries might consider an approach to liberalize power generation and permit oil palm mills to generate electricity via new local microgrids to serve new areas or to compete [5].

[3] Controversial new default values created by the European Commission point to why Europe is going cold on crop biofuels, but also highlights the benefits of methane capture; http://news.mongabay.com/2012/0130-biofuels_eu.html  

[4] How much progress have corporations made on their 100% clean power goals? theguardian.com, Tuesday 25 March 2014;  http://www.theguardian.com/sustainable-business/gallery/sap-renewable-clean-energy-goal-intel-microsoft-kohls-walmart; Software giant SAP on Monday said it plans buy enough renewable-energy credits to figuratively power 100% of its worldwide operations with clean energy. The company joins a growing number of businesses gunning for 100% green energy. Which corporations have made the most progress so far?

[5] Khor Reports' Palm Oil e-newsletter Nov/Dec 2013, "Time for New Strategies?": Reconsider the role of palm oil in local energy use. Malaysia’s biogas directive is a good starting point. Set for 2014 launch, it requires every mill to set up a biogas facility for methane capture; presumably to improve the greenhouse gas (GHG) profile for Malaysian palm oil. Aside from implementation and technological risks, there are obvious suggestions to improve Malaysia’s feed-in tariff for biogas power and allow easier grid connection. Khor Reports suggests a feasibility study on microgrids for remote areas. In the semi-urban zone this might challenge an incumbent power utility and it would work less well in countries with subsidized power. However, could this help firmly establish the localized use of palm biogas, biomass and biodiesel in new places? Many developing countries sorely need power in certain rural areas. They could encourage mills siting next to a mining facility or another energy hungry user. Economists might plan for processing clusters that could aid rural development.

Wednesday, September 28, 2016

Research and tech market news: Review of studies attributing "good and bad", Documentary - Appetite for Destruction: The Palm Oil Diaries and University of Uppsala’s high fat muffin study


29 Sep 2016: Review of studies attributing "good and bad" 


Good – palm oil from Mesoamerica and Africa as 2-7% was from forest in 1989. Bad – Southeast Asian oil palm, as 45% comes forest area. 
“Our analysis reveals regional trends in deforestation associated with oil palm agriculture. In Southeast Asia, 45% of sampled oil palm plantations came from areas that were forests in 1989. For South America, the percentage was 31%. By contrast, in Mesoamerica and Africa, we observed only 2% and 7% of oil palm plantations coming from areas that were forest in 1989. The largest areas of vulnerable forest are in Africa and South America.” Refer to "The Impacts of Oil Palm on Recent Deforestation and Biodiversity Loss" by. V Vijay et al. (2016) in  PLoS ONE 11(7).

Bad – rapid forest to plantation conversion; and pre-2005, Sabah and Sarawak worse than Kalimantan. Indonesia post 2005 rapid conversion.  
People have been arguing that plantations should be developed on degraded lands, and a recent study found that is true more in Kalimantan in Indonesia (up to 2005) than Malaysian Borneo where plantation industry was the principle driver of the loss of forest because of the speedy rate of conversion (within 5 years). “Between 1973 and 2015 an estimated 18.7 Mha of Borneo’s old-growth forest were cleared (14.4 Mha and 4.2 Mha in Indonesian and Malaysian Borneo). Industrial plantations expanded by 9.1 Mha (7.8 Mha oil-palm; 1.3 Mha pulpwood). Approximately 7.0 Mha of the total plantation area in 2015 (9.2 Mha) were old-growth forest in 1973, of which 4.5-4.8 Mha (24–26% of Borneo-wide deforestation) were planted within five years of forest clearance (3.7-3.9 Mha oil-palm; 0.8-0.9 Mha pulpwood). This rapid within-five-year conversion has been greater in Malaysia than in Indonesia (57-60% versus 15-16%). In Indonesia, a higher proportion of oil-palm plantations was developed on already cleared degraded lands (a legacy of recurrent forest fires). However, rapid conversion of Indonesian forests to industrial plantations has increased steeply since 2005.” Refer to "Rapid conversions and avoided deforestation: examining four decades of industrial plantation expansion in Borneo" by D. Gaveau et al. (2016) in Scientific Reports 6: 32017.

Bad – conversion of forests to produce palm and soybean oil used in junk foods. 
Researchers estimated the amount of land — and the potential amount of forests — required to produce the palm and soybean oil used in junk foods….. We will need an estimated 17.1 million metric tons of vegetable oil for junk food production by 2050, which would require something like an additional 5 million to 9.3 million hectares (12.3 million to 23 million acres) of soybean land and about 0.5 to 1.3 million hectares (1.2 million to 3.2 million acres) of additional oil palm land,… Using historical trends… much of this oil palm and soybean expansion will occur at the expense of tropical rainforests. Refer to "Junking tropical forests for junk food?" by J.S.H. Lee et al. (2016) in Frontiers in Ecology and the Environment.

 

14 Sep 2016: Documentary - Appetite for Destruction: The Palm Oil Diaries and University of Uppsala’s high fat muffin study


Palm oil: bad news for forests, and your liver  12/09/2016 -- Food companies were left with a dilemma: they couldn’t use trans-fatty acids, but they needed an ingredient that would provide that smoothy, creamy taste their customers loved. As Prof Bruce Griffin from the University of Surrey told me, “palm oil was introduced as a natural substitute for trans-fatty acids”.... Despite replacing an unhealthy ingredient, palm oil-producing countries have suggested palm oil is perfectly healthy. The Malaysian Palm Oil Council even suggests that studies show palm oil, in liquid form, is “comparable to the much touted gold standard olive oil for its effects on blood cholesterol”.... Under the researchers’ guidance, I did my own version of the experiment that mimicked the official study. For six weeks, I ate three muffins a day containing palm oil on top of my normal diet.... In the University of Uppsala’s controlled study they noticed that participants from both the palm and sunflower oil groups gained about 1.6kg in weight. However, the palm oil group gained “more liver fat, total fat, and visceral fat” than the sunflower oil group. This means the fat was gained around vital organs, which can be very dangerous in the long term..... I think we need to reconsider not only how we produce this oil, but also, given the health consequences, whether we should be eating so much of it in the first place....Appetite for Destruction: The Palm Oil Diaries is available on Amazon and iTunes... http://www.climatechangenews.com/2016/09/12/i-ate-palm-oil-muffins-for-six-weeks-and-gained-60-body-fat/

News update for early 2016 - Fungus fermentation and Sime Darby's super seeds

Fungus Fermentation Turns Palm Waste Into Fodder -- Farmers often use agro-industrial waste - such as rice bran - as animal feed, but these crop residues lack protein, vitamins and other nutrients, the study says. The scientists from the University of Malaysia Perlis (UniMAP) used the fungus Aspergillus terreus to produce large amounts of protein through the fermentation of palm pressed fibre and palm oil decanter cakes, two types of palm oil milling residue. http://allafrica.com/stories/201604140511.html

Sime Darby sees higher profit with new genome super palms BY P. ARUNA 5 April 2016 http://www.thestar.com.my/business/business-news/2016/04/25/sime-darby-sees-higher-profit-with-new-genome-super-palms/

Sime Darby eyes 15% better palm oil yield By Ahmad Naqib Idris / The Edge Financial Daily   | April 26, 2016 http://www.theedgemarkets.com/my/article/sime-darby-eyes-15-better-palm-oil-yield
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Major milestone for Sime Darby BY P. ARUNA  9 May 2016 http://www.thestar.com.my/business/business-news/2016/05/09/major-milestone-for-sime-darby/

Super Seed Identified to Produce More Palm Oil Using Less Land  May 09, 2016 Robert Hii Sustainable Business Consultant  http://www.huffingtonpost.com/robert-hii/super-seed-identified-to-_b_9866180.html


30 Nov 2015: Organic is best for wildlife but "conservation grade" non-organic supports 20% more plants and butterfly species

Can farms be good for nature without being organic? - The organic-or-not debate ignores a crucial further option. Setting aside tracts of land for wildlife habitat can benefit bees, butterflies and plants without harming crop yields - Research found that organic farms are the best for wildlife, but conservation grade non-organic farms still support 20% more plant and butterfly species.... by Karl Mathiesen 18 November 2015  http://www.theguardian.com/environment/2015/nov/18/can-farms-be-good-for-nature-without-being-organic

19 October 2015: Global obesity driven by Westernised diets pushed by food companies, MPOB promotions  in China and oil palm gene work


Global obesity rise puts UN goals on diet-related diseases 'beyond reach' - Westernised diets blamed as figures predict failure to meet 2025 target of no increase in obesity or diabetes beyond 2010 levels by Sarah Boseley and Helen Davidson in Darwin Friday 9 October 2015 17.19 BST  http://www.theguardian.com/society/2015/oct/09/obesitys-global-spread-un-goals-diet-related-diseases-fail


Ministry hopes for more R&D allocation in Budget 2016 Bernama | Published on October 06, 2015 14:38 MYT http://english.astroawani.com/business-news/ministry-hopes-more-r-d-allocation-budget-2016-75358
 

MPOB to step up promotions in China 15 September 2015; "We are looking at not just promoting/exporting the oils but also other palm oil-based products. We now moving mainland towards the west to regions like Chongqing besides our tradition markets of Guangzhou, Shanghai and Beijing," he told Bernama on the sidelines of the Palm Oil Health and Nutrition Forum in Beijing on Tuesday. Wan Mohammad said the nutritional values of palm oil, its non-food applications as well as its usage in pharmaceuticals would be the key areas for MPOB in promoting the edible oil. He said MPOB was looking at not just exporting the edible oil but also palm-based products to achieve the gross national income (GNI) contribution target for the industry of RM178 billion by 2020. On whether anti-palm oil campaigns such as the "no palm oil" food labels in Europe would affect exports to China, Wan Mohammad said issues like environmental and deforestation played up in Europe would not surface in China. He pointed out that the ban on the use of palm oil in infant formula preparation in 2013 had been resolved following research results and effective action taken by Malaysian Government to convince the China Food and Drug Administration. Consumers in China have accepted palm oil as one of the important vegetables oil for consumption and imports of palm oil increased nearly 50% from 3.85 million tonnes in 2004 to 5.63 million tonnes in 2014. China's imports of palm oil from Malaysia stood at 3.9 million tonnes last year. http://www.thestar.com.my/Business/Business-News/2015/09/15/MPOB-to-step-up-promotions-in-China/?style=biz

MPOB to focus on non-food applications, health benefits to promote palm oil in China September 16, 2015, Wednesday http://www.theborneopost.com/2015/09/16/mpob-to-focus-on-non-food-applications-health-benefits-to-promote-palm-oil-in-china/#ixzz3ownOtdqI

MPOB, partners identify genetic secrets to help palm oil yield Published on: Friday, September 11, 2015 http://www.dailyexpress.com.my/news.cfm?NewsID=103116

Mutation discovered in oil palm genes: a game changer? Copyright: Ian Teh / Panos. Scientists had noted that some prized oil palm clones grow into barren adults. The cloned palms turned out to have epigenetic mutation in mantled genes. Researchers are working to simplify the diagnostic test that will tag abnormal clones...http://www.scidev.net/asia-pacific/agriculture/news/mutation-discovered-in-oil-palm-genes-a-game-changer.html

Stopping ‘bad karma’ could save palm oil industry millions By Niamh Michail+, 16-Sep-2015 Scientists have identified a genetic defect in oil palms, called bad karma, which reduces yields – a finding that could save industry both time and money, they say. http://www.foodnavigator.com/Science/Stopping-bad-karma-could-save-palm-oil-industry-millions

13 September 2015: MPOB pursues new palm-based products in neutra and pharma, MPOB partners identify genes for yield improvement, palm oil additive marketing questions

R&D to produce new palm oil-based products by Bernama  Sep 7th, 2015 10:57 am; Malaysia will continue to undertake research and development (R&D) to come out with new palm-based products, including nutraceutical and pharmaceutical, for the global community. Plantation Industries and Commodities Minister Douglas Uggah Embas said today the Malaysian Palm Oil Board's (MPOB) offices in the US, Europe, Africa, Pakistan and China would assist the industry by continually working with authorities and industry players to increase the uptake of palm oil for food and non-food sectors.... "These studies have proven that palm oil is indeed a nutritionally superior oil," he said. Success of industry has attracted detractors...http://www.malaysiakini.com/news/311343

MPOB, Partners Identify Genetic Secrets To Improve Palm Oil Yield KUALA LUMPUR, Sept 10 (Bernama) -- The Malaysian Palm Oil Board (MPOB) and its research partners from the United States have identified genetic secrets to improve oil yield via the use of oil palm clones.  "Through the research on the oil palm genome, we have identified a transposable element named 'Karma', which is responsible for the low-yielding mantled fruit.  "The discovery has led to the development of a simple, leaf based test that can identify 'Bad Karma' and predict mantling before palms are planted in the field," MPOB said in a statement today. http://www.bernama.com.my/bernama/v8/bu/newsbusiness.php?id=1170062

Epigenetic Study IDs Locus Linked to Unfavorable Phenotype in Cloned Oil Palms Sep 09, 2015    | a GenomeWeb staff reporter  NEW YORK (GenomeWeb) – Muted methylation of the transposon Karma appears to explain the unpredictable, spontaneous production of oil palm clones with undesirable phenotypes such as abnormal fruit shape and low yield, according to a study appearing online today in Nature. Researchers from Malaysia and the US did an epigenome-wide association study (EWAS) to search for potential culprits in this spontaneous process, known as mantling, in the African oil palm plant Elaeis guineensis...https://www.genomeweb.com/applied-markets/epigenetic-study-ids-locus-linked-unfavorable-phenotype-cloned-oil-palms

Palm Oil Additive May Not Stand Up To Scientific Scrutiny, Marketed as a healthier oil due to its apparent stability and lower oil absorption rates, Afdhal palm oil may not stand up to the scrutiny of critics.        Science and Development Network  | September 15, 2015  |  Editorials Read more from Asian Scientist Magazine at: http://www.asianscientist.com/2015/09/features/malaysia-afdhal-palm-oil/

Tuesday, September 20, 2016

International Criminal Court (ICC) will try land grabs and environmental destruction, human trafficking - test case Cambodia?

The Hague, ICC: COMPANY EXECUTIVES COULD NOW BE TRIED FOR LAND GRABS AND ENVIRONMENTAL DESTRUCTION Press release / 15 Sep 2016 -- A move by the Prosecutor of the International Criminal Court to expand its focus signals a landmark shift in international criminal justice and could reshape how business is done in developing countries, says Global Witness. Company executives, politicians and other individuals could now be held criminally responsible under international law for crimes linked to land grabbing and environmental destruction...... Global Witness: a case filed in 2014 that catalogues mass human rights abuses linked to systematic land seizures in Cambodia, where business leaders have been working hand-in-glove with the country’s kleptocratic government. (3).... (3) This case will be a key test for the ICC’s new policy. If accepted, this would be the first case in international criminal law where the primary allegations relate to the illegal exploitation of land. Corporate actors in Cambodia could be the prime targets for investigation - they have been complicit in a widespread and systematic campaign of illegal land seizures, leading to the forcible displacement of hundreds of thousands of Cambodians with the help of the state police, military and judiciary. The case was filed at the ICC by international human rights lawyer Richard J Rogers, of the law firm Global Diligence LLP, relying on evidence collected by Cambodian and international organisations, including Global Witness.... https://www.globalwitness.org/en-gb/press-releases/company-executives-could-now-be-tried-land-grabbing-and-environmental-destruction-historic-move-international-criminal-court-prosecutor/r/


References to environment and trafficking in "OFFICE OF THE PROSECUTOR - POLICY PAPER ON CASE SELECTION AND PRIORITISATION," 15 September 2016

7. ... In particular, it will seek to cooperate with States who are investigating and prosecuting individuals who have committed or have facilitated the commission The Office will also seek to cooperate and provide assistance to States, upon request, with respect to conduct which constitutes a serious crime under national law, such as the illegal exploitation of natural resources, arms trafficking, human trafficking, terrorism, financial crimes, land grabbing or the destruction of the environment (See article 93(10) of the Statute).

40. The manner of commission of the crimes may be assessed in light of, inter alia, the means employed to execute the crime, the extent to which the crimes were systematic or resulted from a plan or organised policy or otherwise resulted from the abuse of power or official capacity, the existence of elements of particular cruelty, including the vulnerability of the victims, any motives involving discrimination held by the direct perpetrators of the crimes, the use of rape and  other sexual or gender-based violence or crimes committed by means of, or
resulting in, the destruction of the environment or of protected objects (See articles 8(2)(b)(ix) and 8(2)(e)(iv) of the Statute).

41. The impact of the crimes may be assessed in light of, inter alia, the increased vulnerability of victims, the terror subsequently instilled, or the social, economic and environmental damage inflicted on the affected communities. In this context, the Office will give particular consideration to prosecuting Rome Statute crimes that are committed by means of, or that result in, inter alia, the destruction of the environment, the illegal exploitation of natural resources or the illegal dispossession of land. 

https://www.icc-cpi.int/itemsDocuments/20160915_OTP-Policy_Case-Selection_Eng.pdf, and referring page, https://www.icc-cpi.int//Pages/item.aspx?name=pr1238


Monday, September 5, 2016

Eye on Council of Palm Oil Producing Countries (CPOPC): Malaysia appoints first of its three representatives for CPOPC

10 August 2016: Malaysia, Indonesia to counter black campaign


Malaysian, Indonesia to counter black campaign on CPO by Ayomi Amindoni  The Jakarta Post, August 2 2016 -- The Council of Palm Oil Producing Countries (CPOPC) established by Malaysia and Indonesia—the world’s two largest crude palm oil (CPO) producers—will soon conduct research to counter a black campaign against the product. CPO and palm oil products of both Indonesia and Malaysia have recently faced difficulties to enter some developed markets, such as the EU, because of tough requirements related to environmental issues. Indonesia and Malaysia had agreed to respond to the black campaign because CPO was an important export commodity for the two countries, said Malaysia Prime Minister Najib Razak said at the State Palace in Jakarta on Monday....."We need to make a joint study, not only on marketing, but also to respond certain [environmental] issues so that palm oil products can be accepted all over the world," Najib said. Meanwhile, Trade Minister Enggartiasto Lukita gave the example that currently CPO from Malaysia and Indonesia had difficulties entering France, citing a study’s findings that said palm oil products consisted of a substance that caused cancer. "Soon, CPOPC will conduct research to counter this allegation," the minister said.... http://www.thejakartapost.com/news/2016/08/02/malaysian-indonesia-to-counter-black-campaign-on-cpo.html


27 July 2016: Awaiting CPOPC impetus

Editor's note: Specialists reckon that a cool down in expectations for Felda/FGV-Eagle High deal may have affect on leadership at CPOPC - this follows on FGV statement of "no deal" and also uncertainty on Indonesia's mooted policy for moratorium on unplanted concession areas (refer to our 27 July blog posting here, http://khorreports-palmoil.blogspot.my/2015/10/jokowi-and-2015-haze-step-down-on.html). However, it is also possible that other impetus may come to drive CPOPC. We hear its meetings have been delayed in recent weeks because of a hiatus on waiting for Malaysia's new Minister of Primary Industries and Commodities to be appointed (about two months, after the previous Minister stepped down to become one of the three Sarawak deputy Chief Ministers; separately, there was a helicopter tragedy a few days before that state's election polls that took the lives of several key persons in the Malaysia hierarchy). Also, we hear that a scheduled meeting for this week has been put off. Indonesia has been mulling cabinet reshuffle in recent months following political realignments and a super majority for the ruling coalition that saw two new parties joining it - Golkar and PAN. 


5 Sep 2016: Malaysia appoints first of its three representatives for CPOPC

Malaysia appoints representative for CPOPC BY OOI TEE CHING - 30 AUGUST 2016 -- PUTRAJAYA: Palm Oil Refiners Association of Malaysia chief executive officer Mohammad Jaaffar Ahmad has been appointed as Council of Palm Oil Producing Countries (CPOPC) deputy executive director. “Jaaffar will represent Malaysia and he will assume the position of deputy executive director in CPOPC. He will be based in Jakarta,” said Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong. “We will appoint the other two representatives in a couple of weeks. They will be tasked with taking care of smallholders interests and global palm oil stock management,” the minister added. “We hope to accelerate the operations of the secretariat soon. The next CPOPC meeting will be in Jakarta in a few months time,” he told reporters after chairing a CPOPC meeting here today. Read More : http://www.nst.com.my/news/2016/08/169384/malaysia-appoints-representative-cpopc?d=1


25 April 2016: Critique of CPOPC-agribusiness  “right to develop”  stance?

Commentary: Palm Oil Politics Impede Sustainability in Southeast Asia - Indonesia has facilitated the inflow of Malaysian capital and technology. Malaysian companies control 25 percent of oil palm plantations in Indonesia. By Rob Cramb & John McCarthy | on April 20, 2016... Indonesia and Malaysia are at the center of the world’s decades-long palm oil boom. Between them the two countries have planted more than 15 million hectares of oil palm, employ about 4 million workers, and produce 84 percent of the world’s palm oil. It is the biggest and fastest rural transformation the countries have seen. Palm oil, a vegetable oil used in many foods and other products, has come under fire for its role in deforestation, biodiversity loss and massive forest fires, as well as major social and economic conflicts. This has led to a rise in consumer activism and campaigns against unsustainable oil palm production, with many brands committing to purchase palm oil from sustainable sources only. While governments, civil society groups and industry roundtables are trying to address these many problems, the industry continues to create conflict as it moves into frontier zones with apparent impunity. Why is this?....This “oil palm complex” is managed by a powerful cross-country coalition of political and agribusiness interests. Despite the industry rhetoric, this coalition puts “profits” well ahead of “people” or “planet.”.... Three important but contradictory trends have emerged in the past two decades.... Domination of big plantations...Rise of smallholders....Is private regulation working? A third trend arises from the widespread failure of governments to regulate the excesses of the oil palm industry. Civil society groups and some large corporations have sought to bring about change though private regulation. In the past two years, transnational activism has achieved important shifts in the policies of major producers, buyers and end users of palm oil. Leading firms such as Cargill and Unilever have made commitments to cut their links to deforestation, peatland development and exploitation in the palm oil they procure. Thus there are some signs that the balance of power within the oil palm complex may have shifted in favor of more inclusive and sustainable outcomes. However, these commitments will have limited impact without major changes in accountability and enforcement within the two countries. This especially applies at state and district levels where the key land and profit-sharing deals take place... Moreover, the launching by Indonesia and Malaysia in 2015 of the Council of Palm Oil Producing Countries suggests that these governments and their domestic agribusiness allies are pushing back against the pressure from international NGOs and global corporations. They are emphasizing their “right to develop” and capitalizing on the acquiescence of their biggest markets – China and India – which have higher priorities than safeguarding Southeast Asian forests and livelihoods....http://jakartaglobe.beritasatu.com/opinion/commentary-palm-oil-politics-impede-sustainability-southeast-asia/

  Indonesia & Malaysia Set Criteria for the Council of Palm Oil Producer Countries 12 April 2016 by Arief Havas Oegrosono -- Nine or ten crude palm oil (CPO) producers want to join the Council of Palm Oil Producer Countries (CPOPC), the intergovernmental palm oil council set up by the world's two largest CPO producers and exporters: Indonesia and Malaysia. These two initiators signed an agreement in November 2015 for the establishment of the CPOPC - headquartered in Jakarta - that aims to control the global CPO supply, stabilize palm oil prices, promote sustainable practices in the palm oil industry, and enhance the welfare of oil palm smallholders; more or less the role that OPEC has in the crude oil industry. http://www.indonesia-investments.com/news/todays-headlines/indonesia-malaysia-set-criteria-for-the-council-of-palm-oil-producer-countries/item6697

17 April 2016: Indonesia & Malaysia Set Criteria, no development on peat lands

Indonesia & Malaysia Set Criteria for the Council of Palm Oil Producer Countries 12 April 2016; Currently both initiators - Indonesia and Malaysia - are the CPOPC's only members as both nations are still finalizing the criteria that need to be met by other countries in order to be eligible to join the organization. Arief Havas Oegrosono, Indonesia's Deputy Coordinating Minister of Maritime Affairs and Resources, said nine or ten countries have already (informally) expressed their interest to join the CPOPC. Oegrosono declined to name these countries because negotiations are still ongoing. However, he did inform that it involves palm oil producing countries from Asia, the Pacific, Africa and Latin America....  Oegrosono stated the CPOPC will formulate a new system that should harmonize existing ones. For sure, this new system will not allow palm oil plantation development in primary forests and peat lands, he added....
http://www.indonesia-investments.com/news/todays-headlines/indonesia-malaysia-set-criteria-for-the-council-of-palm-oil-producer-countries/item6697

25 Feb 2016: Two new green industrial zones and Batam questions

Editor's note: We're hearing from experts that CPOPC is looking at two green industrial zones. One in Malaysia and one in East Kalimantan; and not at the existing palm oil cluster at Maloy. Also, an interesting item on Batam.


Disbanding Batam’s Free Trade Zone: Ending a Dualist Authority? By Adri Wanto and Santi H. Paramitha 25 February 2016; Mr. Kumolo claimed the decision to disband the BPK FTZ was formulated according to Cabinet deliberations. Over the last 10 years, BPK FTZ had lost around Rp 20 trillion (US$1.45 billion) of Batam’s potential tax revenue. The decision to disband it took into account the fact that many investors have moved their businesses away from Batam. Interestingly, Mr. Kumolo spoke optimistically that all problems related to BPK FTZ will be resolved in 2016....he future of BPK FTZ clearly remains in limbo. Pending an official decision, BPK FTZ will continue to function as usual. Mr Nasution urged investors to keep their businesses in operation irrespective of the Minister of Home Affairs’ comments........According to an Indonesian Regional Representative Council (DPD) member, Haripinto Tanuwidjaya, the overlapping authority over the Batam Free Trade Zone has led to a decline in investment in Batam, compared with investments in other parts of Indonesia. It has resulted in the protraction of business licences and become a source of burden to investors...


12 December 2015: FGV/Felda- Eagle high deal back on


Felda Group to buy 37 pct of Eagle High in new deal-Rajawali exec By Cindy Silviana Dec 11, 2015  * Eagle High shares soar 8 pct after Rajawali comments * Most of purchase likely via different Felda unit -Rajawali * Felda Global may take less than 10 pct -Rajawali * Felda Global says still evaluating possible new deal (Adds comment from Felda Global Ventures, share price) JAKARTA, Dec 11 Malaysia's Felda Group still plans to buy 37 percent of PT Eagle High Plantations Tbk in a restructured deal, a managing director of the Indonesian firm's parent company said, sending shares in Eagle High soaring. The companies are finalising the price, Rajawali's managing director Darjoto Setyawan told Reuters in a text message interview. Read more at Reuters http://www.reuters.com/article/felda-glo-vntrs-eagle-high-plnt-ma-idUSL3N14023820151211#SeA8p6J3iTZRoeAp.99

CPO Productivity Expected to Rise Next Year 27 November, 2015 TEMPO.CO, Nusa Dua - The Indonesian Palm Oil Producers Association (Gapki) predicted that CPO production in 2016 would be somewhere between 33 million and 35 million tons comprising 22 million tons for exports and 13 million tons for domestic consumption.Gapki director executive Fadhil Hasan said that CPO prices next year would be around US$580-US$600 per ton. According to Fadhil, the CPO prices have been affected by the implementation of biodiesel mandatory program, drought, crude oil prices and the establishment of the Council of Palm Oil Producing Countries (CPOPC).   “El Nino and forest fires have reduced CPO productivity by 3-5 percent,” Fadhil said when speaking at the 9thIndonesian Palm Oil Conference (IPOC) in Bali on Friday, November 27, 2015. http://en.tempo.co/read/news/2015/11/27/056722854/CPO-Productivity-Expected-to-Rise-Next-Year

PNG to be member of Palm Oil cabal   25 November 2015  Indonesia's Resources Minister Rizal Ramli says the Jakarta-based council can be a "game changer" for an industry under pressure from falling prices and unsustainable farming practices. Rizal says membership will be extended to other producers such as PNG, Brazil, Colombia, Thailand, Ghana, Liberia, Nigeria, the Philippines and Uganda.
...
http://www.radionz.co.nz/international/pacific-news/290492/png-to-be-member-of-palm-oil-cabal


 Malaysia, Indonesia to harmonise palm oil certification  By OOI TEE CHING - 27 November 2015; .... Last week, at the Asean Summit in Kuala Lumpur, Malaysia prime minister Datuk Seri Najib Razak and Indonesia President Joko Widodo announced each country will contribute an initial US$5 million to kickstart CPOPC’s operations.... Yesterday, Indonesia Vice President Muhammad Jusuf Kalla in addressing an international business gathering of 1,200 at the Indonesian Palm Oil Conference (IPOC) 2015, announced Indonesia will be restoring damaged forest and peatland ecosystem. Jusuf announced the government is setting aside Rp50 trillion, for the next five years, to lay the groundwork for rehabilitation. The first phase of restoration will cover two million hectares of forest and peatland. Fadhil acknowledged Jusuf’s remarks that the allocation is equivalent to the annual tax contributed by plantation companies to the government.  In preparation for climate change talks beginning November 30 in Paris, Indonesia and Mal aysia will highlight CPOPC’s long term plans in tackling the region’s haze problem. This will include better dissemination of facts and figures of oil palm planting on peat soil. CPOPC membership, under government-to- government framework, is open to all oil palm cultivating countries such as Brazil, Colombia, Thailand, Ghana, Liberia, Nigeria, Papua New Guinea, the Philippines and Uganda.... http://www.nst.com.my/news/2015/11/114069/malaysia-indonesia-harmonise-palm-oil-certification

Indonesia, Malaysia to try to manage prices together by CK TAN, Nikkei staff writer November 22, 2015  http://asia.nikkei.com/Markets/Commodities/Indonesia-Malaysia-to-try-to-manage-prices-together

30 November 2015: Felda / FGV puts on hold Eagle High deal. Any impact on CPOPC?


Felda puts US$680 million Eagle High stake deal on hold  30 November 2015 1:58 PM; .....Felda Global Ventures Holdings Bhd, the world's No. 3 palm plantation operator, has put on hold a planned US$680 million (RM2.8 billion) purchase in Indonesia after shareholders criticised the deal as too expensive and market conditions deteriorated, sources directly involved with the matter said. - See more at: http://www.themalaysianinsider.com/malaysia/article/felda-puts-us680-million-eagle-high-stake-deal-on-hold#sthash.R9Us5sXk.dpuf

Editor: Some observers point to Felda/FGV - Eagle High being prominently part of the CPOPC announcement. So, the question is whether the new apparent "on hold" status of the deal will impact on any aspect of CPOPC.

 
 

20 October 2015: CPOPC news review - an Indonesia-Malaysia initiative


Editor's note: CPOPC concept  recently announced (agreed 11 October by Najib and Jokowi), and apparently led by Indonesia. Coordinating Maritime Affairs Minister Rizal Ramli, who led the Indonesian delegation at the meeting with Malaysia’s Plantation Industries and Commodities Minister Douglas Uggah in Jakarta. Interesting that the key bureaucracies (Indonesia Min Ag and MPOB) were not lead on the move and seem to be now catching up to something apparently born in high politics; together with a good mix of big business too. FGV-Eagle High were present at the same event (on a industrial estate deal), and big plantations have also been facing up to Singapore pressure over sustainability-traceability gaps amidst the Southeast Asian haze. The haze has been intense for well over a month now (with some predictions of it lasting through to early next year). Question arise over whether there has been a surprising pick up in smallholder land clearance (judging by rise in some key deforestation measures). CPOPC also comes at the same time as IPOP dilution and a sudden leadership change at ISPO. Palm oil circles noting this unusual contemporaneous flurry of high level business-political shuffles. One key question is this: is CPOPC going to be a price cartel? MITI Minister Mustapa weighs in it is not for price control (while Uggah urges USA to remove Malaysia from forced labour list).

Had a long chat on Friday with a top financial analyst. We were trying to figure out if these moves are to likely to improve the medium or long-term market position palm oil. The analyst has been worried for some time about the deteriorating market perception of palm oil - on it losing markets on poorer perceptions, including middle-income consumers switching away. Price did not come into our discussion. I think we have to watch for good implementation of ISPO whose re-regulation would help alongside upgraded and added efforts on the haze (an annual bad press that clings to palm oil). Because commercial issues are so entangled with sustainability-traceability, some specialists also worry about delays to real action, including strong upgrade of ISPO or implementation of Indonesia regulations. The downplay of regulations for voluntary programmes is puzzling. Surely it should be voluntary programmes with regulations fully complied? Or is it time for a discussion on regulations and business compliance as well as smallholder compliance?


News links:

So, what will it actually do?

1. Promote sustainability? Maybe not? What about ISPO implementation? Regaining policy sovereignty over green trade barriers?

Bold move in palm oil — Jakarta Post Saturday October 17, 2015; OCTOBER 17 — The devil is in the details. This saying is quite relevant for Indonesian and Malaysian officials making preparations for the establishment of a cartel-like organisation called the Council of Palm Oil Producing Countries (CPOPC) that both governments agreed on in Jakarta early this month. It was the first time that both countries, which control about 85 per cent of global palm oil production but which have so far been competing fiercely against each other in the international market, agreed on concrete cooperation in controlling the palm oil market, which has been in a slump since last year. Coordinating Maritime Affairs Minister Rizal Ramli, who led the Indonesian delegation at the meeting with Malaysia’s Plantation Industries and Commodities Minister Douglas Unggah in Jakarta last week, said the CPOPC would jointly promote the marketing of palm oil and its products, conduct palm oil research and development and harmonize the principles and criteria used for their respective certification of sustainable palm oil. - See more at: http://www.themalaymailonline.com/what-you-think/article/bold-move-in-palm-oil-jakarta-post#sthash.49WH24qx.dpuf

New palm oil council would drop "no deforestation" pledge - Indonesia JAKARTA  |  By Augustinus Beo Da Costa; Oct 14 A new palm oil producer grouping being set up by Indonesia and Malaysia would replace "no deforestation" pledges made by major palm companies in favour of a joint set of standards proposed by the two countries, an Indonesian minister said late Tuesday. Indonesia wants big palm oil companies to row back on the historic pledges made at a climate change summit last year, arguing that they are hurting smallholder producers who cannot afford to adopt sustainable forestry practices. Indonesia is the world's biggest producer and exporter of palm oil producer, a key driver of economic growth, and legions of smallholders account for about 40 percent of its palm output. "Indonesia and Malaysia have agreed to harmonize and combine our two standards," Indonesia's chief natural resources minister Rizal Ramli told parliament. "This is an example of how to fight for our sovereignty. We are the biggest palm oil producer. Why (should) the consumers from the developed countries set the standard for us as they want?" http://www.reuters.com/article/2015/10/14/indonesia-palm-ipop-idUSL3N12E22820151014

Sarawak rejects trade barriers  By OOI TEE CHING - 17 October 2015 @ 11:00 AM; .... Wilmar’s refinery in Bintulu, Sarawak, was the main buyer from 41 palm oil mills across the state, absorbing 1.7 million tonnes of CPO, or half of the state’s production. In sourcing CPO to feed its refinery, the Wilmar-Unilever pledge dictated to planters in Sarawak that starting January, it will stop buying oil from estates where there are allegations of land grabbing from natives. The pledge will also lead to a halt in the sourcing of palm oil from farmers who have planted their trees in areas of “high carbon stock” and peat swamp. In an interview at his longhouse in Silas Estate near Bintulu, village head Meikle Ding spoke about his people’s sentiment.  When asked if the native customary rights (NCR) landowners had seen any tangible benefits from the Wilmar-Unilever pledge, Meikle replied: “It looks protective of us natives, but in reality our genuine business partner is Ta Ann Plantation.” ..... Just like the soyabean and rapeseed farmers in Western countries, Meikle said his people were equally deserving of their right to sell their palm oil without trade hindrance. He noted that his people felt Wilmar and Unilever’s pledge was restrictive of Sarawak’s freedom to export to an open market. “The Wilmar-Unilever pledge dictating to planters in Sarawak to comply with it by the end of the year is discriminatory. We prefer a meaningful pledge that states “Yes” to high palm oil prices, “Yes” to our right to prosperity and “Yes” to business growth,” he added. Meikle also questioned whether the Asia-Pacific Economic Cooperation (Apec) and Trans-Pacific Partnership (TPP) agreements would address discriminatory and oppressive business dictates from buyers like Wilmar and Unilever. His query has struck a poignant chord on global edible oils trade politics....  Earlier this week, Indonesia and Malaysia agreed to harmonise and combine palm oil certification standards. Indonesia’s Chief Natural Resources Minister Rizal Ramli told the Parliament that it was time for Indonesia and Malaysia to fight and regain sovereignty on their own turf.... http://www.nst.com.my/news/2015/10/sarawak-rejects-trade-barriers


2. Is it about price? Yes. No?

Mier lauds move to set up palm oil council, on urgency of price stabilising mechanism   By Chester Tay / The Edge Financial Daily   | October 15, 2015 : 10:19 AM MYT; KUALA LUMPUR: The setting up of the intergovernmental Council of Palm Oil Producing Countries (CPOPC) to regulate the edible oil’s production, stocks, and market prices is a step in the right direction, according to the Malaysian Institute of Economic Research (Mier). This is because there is an urgency for both Malaysia and Indonesia to introduce a price stabilising mechanism for crude palm oil (CPO), said the research institution’s deputy director Dr Ahmad Fauzi Puasa in an interview with The Edge Financial Daily last week. “Malaysia and Indonesia need to have a round-table talk to figure out a way to implement this price stabilising mechanism, before it (CPO price) gets even more volatile,” Ahmad Fauzi said. Earlier this month, both countries agreed to spearhead the establishment of the CPOPC. The idea was formally agreed on between Prime Min ster Datuk Seri Najib Razak and Indonesian President Joko Widodo during a meeting at the Presidential Palace in Bogor on Sunday. “The formation of the CPOPC is the biggest achievement in the bilateral relations between Malaysia and Indonesia, and will bring greater benefit to the wider palm oil industry,” Najib said on his Twitter account on Tuesday. The two nations collectively account for 85% of global palm oil production. http://www.theedgemarkets.com/my/article/mier-lauds-move-set-palm-oil-council-urgency-price-stabilising-mechanism

Palm Oil Council not to Control Price, Malaysia Says 14 October, 2015 | 13:32 WIB; "CPOC is not formed to increase [oil palm] prices, because it's not easy to compete against a market. It could work for a day, but not for a long time," Malaysian International Trade and Industry Minister Dato Sri Mustapa Mohamed said in an interview on Tuesday, October 13, 2015 in Jakarta. Mustapa explained that the CPOC will be formed to provide benefits for both countries, particularly in the plantation sector. Despite not being aimed at controlling prices, Mustapa hoped that the palm oil prices must be set at a reasonable level. Mustapa added that the two countries must have an aligned understanding in terms of regulations on palm oil utilization for biodiesel. Indonesia earlier had enforced biodiesel B15, which would be increased to B20. Meanwhile, Malaysia had just enforced biodiesel B5 and would increase it to B7. "Malaysia had not planned to enforce B15 yet. We had just started with B5, and now B7. This must be followed up by the two governments," Mustapa said. http://en.tempo.co/read/news/2015/10/14/056709371/Palm-Oil-Council-not-to-Control-Price-Malaysia-Says


3. Labour standards?

US urged to remove Malaysian palm oil from forced labour list 16 October 2015; LOS ANGELES: Malaysia is appealing to the US Labour Department to remove its palm oil from the “List of Goods Produced by Child or Forced Labour”, Plantation Industries and Commodities Datuk Amar Douglas Uggah said. Among the criteria used by the department to assess child or forced labour was the withholding of passports of foreign workers and payment of low wages, he said. “The Government has undertaken an independent study, covering 68 plantations nationwide, and it showed that incidences of this nature are negligible. “Thus, it is unfair for the department to list the Malaysian palm oil industry alongside others,” he added. Uggah said this in his keynote address at the Global Oils and Fats Forum USA 2015, here on Wednesday.
http://www.thestar.com.my/Business/Business-News/2015/10/16/US-urged-to-remove-Malaysian-palm-oil-from-forced-labour-list/?style=biz


Setting it up - a real start in 2015 since bilateral effort first mooted in 2006?

Indonesia, Malaysia to set up palm oil council Published: 3 October 2015 7:11 PM; ... The organisation, which is going to be called Council of Palm Oil Producer Countries, will coordinate palm oil production, manage stocks and stabilise palm prices, Indonesia's Coordinating Minister for Maritime Affairs Rizal Ramli said in a news conference with Malaysian officials today.... Ramli led an Indonesian delegation to visit Malaysia at the end of August to discuss about the plan, during which an agreement for further cooperation was reached. The two governments plan to establish the council after Indonesian President Joko Widodo meets his counterpart Malaysian Prime Minister Najib Razak, Ramli said. Previous attempts to develop better palm relations between the two countries have had limited success. - See more at: http://www.themalaysianinsider.com/business/article/indonesia-malaysia-to-set-up-palm-oil-council#sthash.LEEhLf9h.dpuf

M’sia, Indonesia hold bilateral meeting on palm oil industry October 6, 2015; KUCHING: The bilateral meeting between the governments of Indonesia and Malaysia on strengthening cooperation in the palm oil industry was held in Jakarta on Saturday, October 3 2015. The Malaysian delegation was led by Datuk Amar Douglas Uggah Embas, Minister of Plantation Industries and Commodities together with Datuk Razali Ibrahim, Deputy Minister in the Prime Minister’s Department. The Indonesian delegation was led by Bapak Rizal Ramli, Coordinating Minister of Maritime Affairs and Resources together with Bapak Sofyan Djalil, Minister of National Development Planning, Ibu Musdalifah, Deputy Coordinating Minister of Economy.  This was a follow-up to the meeting held on August 27, 2015 in Kuala Lumpur as has been directed by the two Heads of Government. This bilateral meeting was also joined by Sarawak Oil Palm Plantation Owners Association (Soppoa), Malaysian Palm Oil Association (MPOA), Malaysian Palm Oil Board (MPOB), Malaysian Palm Oil Council (MPOC), Indonesia Palm Oil Association (GAPKI) and Indonesia Palm Oil Fund (BPDP Sawit).... Read more: http://www.theborneopost.com/2015/10/06/msia-indonesia-hold-bilateral-meeting-on-palm-oil-industry/#ixzz3p63ZT6ur

Najib welcomes historical move to set up palm oil council with Indonesia Sunday October 11, 2015; ....The plan to set up a Council of Palm Oil Producer Countries by Malaysia and Indonesia is an indication of the success of bilateral relations, said Prime Minister Datuk Seri Najib Razak. He said the council, which was proposed by both countries in 2006, has become a reality when a consensus was reached on the structure of the organisation which would operate from here....          
- See more at:
http://www.themalaymailonline.com/malaysia/article/najib-welcomes-historical-move-to-set-up-palm-oil-council-with-indonesia#sthash.dGuCvu2T.dpuf