RI, Malaysia promote new approach to CPO exports

Writer: Mustaqim Adamrah
Indonesian Palm Oil Board vice chairman Derom Bangun admitted that a memorandum of cooperation between the two countries’ producers just inked last Friday did not include a dispute settlement mechanism if CPO buyers unilaterally revoked contracts with their suppliers over environmental issues. Agriculture Minister Suwono, who also attended the signing, said Indonesia and Malaysia, controlling 85 percent of the world’s output and could control global prices, as well as fight negative campaigning which claimed producers were clearing rainforests illegally.
Indonesia’s CPO production last year topped 20 million tons and is projected to reach 40 million tons in 2020. Suswono said cooperation was to help prevent repetition of unilateral revocation of supply contracts on the lines of the Netherlands-based consumer goods giant Unilever which had ended deals with Duta Palma and PT SMART. Duta Palma corporate secretary Sasanti dismissed Unilever’s allegation that it had destroyed forests to produce CPO, Bisnis Indonesia daily reported in its Feb. 27 issue. For the time being, Derom, who is also the Indonesian Palm Oil Producers Association’s (Gapki) representative in the Malaysia-headquartered Roundtable on Sustainable Palm Oil (RSPO), said disputing parties could report to the RSPO by also providing clear evidence to help settle any case of unilateral revocation.

References:
Adamrah, M. (2010). RI, Malaysia promote new approach to CPO exports. Retrieved March 10, 2010, from The Jakarta Post: http://www.thejakartapost.com/news/2010/03/09/ri-malaysia-promote-new-approach-cpo-exports.html