Behind Indonesia-Malaysia’s Threat to Ban CPO Export to Europe


Indonesia and Malaysia will halt crude palm oil (CPO) exports to the European Union.  Rizal Affandi Lukman, Executive Director of the Council of Palm Oil Producing Countries (CPOPC), said this is a retaliation measure over Europe’s discriminatory practices against palm oil products. This action is also a response to implementing new European regulations restricting CPO sales.

According to Rizal, Malaysian Deputy Prime Minister/Minister of Agriculture and Commodities Datuk Seri Fadillah Yusof also stated to shut CPO exports. “He will meet with Coordinating Minister for Economic Affairs Airlangga Hartarto to discuss a joint position to face discriminatory practices by the European Union against palm oil,” Rizal said on Friday.

The Chairman of the Indonesian Palm Oil Farmers Association (Apkasindo) supported the Indonesian and Malaysian governments’ plans. “It is time for CPOPC to respond to the rules made by Europe firmly. If they are complicated, just leave it,” he said. However, Chairman of the Union of Oil Palm Farmers (SPKS) Mansuetus Darto said the move was excessive. “The threat does not solve the problem of improving industrial governance.”

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